It is not very popular among brokers and fund advisors because the rate of brokerage/commission paid to them is lower than in other investment products. Therefore, first-time investors do not get to know about this fund option, a factor that is limiting its growth. Due to the modest rate of return (as compared to other MFs), this type of fund has very few large
investors in the market. This fund does not have the ‘systematic investment plan’ (SIP) tag as it is a liquid fund and does not insist on a minimum period of investment. Hence, any investor can exit at any time and get returns for the period of holding. This holds backs growth as well as possible higher returns. This also discourages those who are investing for ‘saving’ purposes. There is a perceptible hesitancy in the investors’ mind because of the ‘ minimum investment’ rider, which also acts a dampener while taking investment decisions. Some feel that the minimum investment could be further brought down to Rs 1,000 to enable widening of the net to attract small retail investors.