Mutual funds also appear convinced about the need to market schemes more aggressively to retail investors as they noticed that these investors stayed invested despite a rush for withdrawal during the recent liquidity crisis.

"It is good for fund houses to tap retail investors but we are operating in a low-cost structure and our business requires a pull strategy where investors stay with us if they have a pleasant experience and they will spread the word that can bring more investors," said ICICI Prudential Asset Management Company Deputy Managing Director Nilesh Shah.

Besides, he said, that the present environment offered an opportunity to retail investors to optimise their returns. "In a slowing economy, the government is lowering interest rates and providing liquidity. When interest rates fall, income plans and gilt funds-debt funds will continue to be attractive," Shah added.