The new millionaires

The new shining path!

A disclaimer This piece is not about IPL per se. Neither is it about advertisements alone. But it is about responsibility. Why? Because, when no one takes responsibility during a free-fall and everyone makes a buck during the good times, something is brewing and it is not good. The markets buffeted by bad news were already slipping before the IPL. The latest tariff shocker is further causing turmoil in the stock market.

'Groww' ad is no red herring

To be frank, it's a bit unfair to pick on just one ad just because it catches one's attention. This situation exemplifies the complexities of marketing, especially in the financial sector, especially during periods of instability. But the juxtaposition of these ad's during the IPL cricket extravaganza against the backdrop of a tumultuous stock market raises several points of discussion:

Market Context

• The stock market experienced downturns, leading to substantial losses. The recent tariff announcements have made it worse.

• First-time investors were already facing a crisis, with some losing their savings and even resorting to borrowing.

But the IPL craze is a documented boom time for ads in general. The decision to advertise the Groww App during such a volatile period may seem counterintuitive. Or it could be viewed as an attempt to attract new users by promoting investment opportunities despite market conditions.

IPL Landscape

The Indian Premier League (IPL) scene is indeed characterized by a unique blend of ambiguity, creative license and a lot of unaccountability. While it could be hailed as a shining example of free market, entrepreneurship & indeed sporting glory, the reality is that has a kind of deep state patronage, indeed a state sponsored monopoly that no private enterprise can ever hope to get. Advertising potpourri That is a worry. Did you ever notice the advertisements during the IPL ? Of course, you cannot ignore them starting as they do well before the event and extending right up to the very end. They often showcase a variety of products and services, which could be categorized like this: Pan Masala, Fantasy games, Stock broker advertisements , Mutual Funds ads by MFAI , Government sponsored ads like RBI , RuPay & others like soft drinks, mobile phones & other usual staples like cars.

Who's protecting the first-time investor? The advertisements by the stock brokers including investing apps really caught my eye. For a long time, we in India have been given the impression that anything to do with government is dependable and anything that is private is risky. But IPL breeds a strange partnership being a cash cow protected by the government. Ads for investing in stocks in such a scenario appear suicidal but there it is. AMFI : What it is and what its not

The role of the Association of Mutual Funds in India (AMFI), among others is :

• To recommend and promote best business practices and code of conduct to be followed by members and others engaged in the activities of mutual fund and asset management including agencies connected or involved in the field of capital markets and financial services.

• To interact with the Securities and Exchange Board of India (SEBI) and to represent to SEBI on all matters concerning the mutual fund industry.

• To represent to the Government, Reserve Bank of India and other bodies on all matters relating to the Mutual Fund Industry.

• To undertake nation wide investor awareness program so as to promote proper understanding of the concept and working of mutual funds.

Marketing Complexities in the Financial Sector

But given the complexities of marketing within the financial sector, the frenzy which touched stocks in India especially the IPO market did not find reaction from the AMFI. Even now, after the melt down exaggerated due to Trump's Tariff war is likely to become more acute particularly during times of economic instability, there are hardly any ads advising the investors caution (especially the first time neo investors).

No limits to the Ad overspend

Given the scenario above, reactions to the Stock Broking advertisements may vary, with some finding it insensitive given the financial struggles of many. Others might see it as a call to remain engaged with investment platforms even during downturns. The pressure to consume can lead individuals to incur debt, impacting financial stability.

Conclusion

The effects of advertising that promotes reckless investments are similar to those promoting conspicuous consumption. While some advertising can inspire positive consumer behavior, a significant portion also appears to contribute to harmful societal trends. Addressing these issues requires which have a broader implications on culture and individual well-being require a critical examination of advertising practices by AMFI , which claims to protect investors in the first place.