Munish Sood
Mandi
With geopolitical tensions escalating amid the ongoing conflict involving Iran, Israel and the United States, fears of rising global inflation and economic uncertainty are growing. Leading financial consultant Sunil Dogra has said that such global developments are likely to push commodity and energy prices upward in the coming months, which may ultimately impact household budgets and investment decisions.
Sunil Dogra said that the Middle East remains a crucial hub for global energy supply, and any instability in the region can significantly affect crude oil prices. “If tensions in the region continue or escalate, crude oil prices may rise sharply. This will increase transportation costs and the prices of essential goods, leading to inflationary pressure across economies, including India,” he said.
He added that in such uncertain times, investors often look for disciplined and diversified investment avenues. According to him, mutual funds can be a relatively stable option for long-term investors, as they allow diversification across multiple sectors and asset classes, helping reduce risk during volatile market conditions.
Sunil Dogra further pointed out that the mutual fund industry in India is also undergoing a major regulatory transformation aimed at strengthening investor protection and improving transparency. He said that the Securities and Exchange Board of India (SEBI) has announced several significant reforms in the sector, which are expected to come into effect from April 1, 2026.
Explaining the changes, he said that one of the most important reforms is the introduction of real-time risk disclosure for mutual fund schemes. “If there is more than a five percent change in a fund’s portfolio, the concerned asset management company will now be required to immediately update the Risk-o-Meter. Earlier, such information was updated only once a month. This step will ensure that investors always know the exact level of risk associated with their investments,” he said.
Sunil Dogra also highlighted changes related to fund management expenses. He said that revised limits have been introduced on the operational costs charged by fund houses, which will ensure that investors receive a larger share of the actual value generated by their investments.
Discussing structural changes in the sector, he said that retirement and children-focused mutual fund schemes will gradually be phased out and replaced by Life Cycle Funds. “These funds will be designed for specific investment durations such as five, ten, fifteen, twenty and thirty years. This will help investors plan their investments according to long-term financial goals like education, retirement or wealth creation,” he explained.
He further said that the valuation of gold and silver within mutual fund portfolios will now be linked to prices available on Indian exchanges, which will bring greater transparency and accuracy in asset valuation.
Sunil Dogra emphasized that the new regulatory framework also focuses strongly on the accountability of fund managers. “Under the new rules, fund managers will be required to invest around twenty-five percent of their income in the same schemes they manage. If the scheme performs poorly due to weak decisions, the fund manager’s personal investment will also be affected. This will encourage more responsible and careful investment decisions,” he said.
He also noted that small-cap and mid-cap funds will now be required to publish stress test reports every three months. According to him, these tests will assess whether fund houses can meet redemption requests if markets face sudden downturns.
Another major step, he said, is the requirement for every Asset Management Company (AMC) to create an Investor Protection Fund. “If investors suffer losses due to technical failures, fraud or other unusual circumstances, compensation will be provided through this dedicated fund,” he explained.
Sunil Dogra added that while banks, post offices and insurance schemes continue to offer options with guaranteed or tax-efficient returns, investors should always study regulatory guidelines, risks and conditions carefully before investing.
“In a global environment where geopolitical conflicts can influence markets and prices, disciplined and well-regulated investment avenues like mutual funds can help investors manage uncertainty while building long-term financial stability,” he said.
