The markets and investor watchdog, Sebi, is planning to question fund houses on the underperformance of some of their schemes. Many mutual fund schemes have underperformed benchmarks for a period of time and the regulator is unhappy about it and is going to investigate the reasons for their underperformance.
The regulator's intentions are noble but the fact is that it is not the regulator's job to question a fund manager why his investment philosophy failed. That job is the job of the investor and if the investor does not like the returns he is getting from his investments he should withdraw his investments.
Investors in mutual fund schemes go through distributors (or investment advisors) who earn commissions for selling them the scheme. The distributor has to earn his commission by monitoring the performance of the fund and recommending to the investor whether he should continue to stay invested or leave the scheme. More recently, of course, distributors have been moping about