Will Mutual Funds now look beyond SEBI?
Moneylife Digital Team 08 November 2010

Fund companies are now becoming increasingly vocal about the maelstrom unleashed by SEBI’s regulatory moves. But do they need to look at their own actions and flawed business models too?

After putting up a brave face for most part of the year about the market regulator's frequent changes, fund companies are slowly but surely exhibiting frustration. While the steady erosion in the corpus of mutual funds has caused some discomfort among asset management companies (AMCs), the recent sharp decline in profits seem to be the tipping point for fund companies. The Mint, which has been an unstinted champion of regulatory actions, naively arguing that they were pro-investor, has now started to voice concerns of the fund companies about the regulator's actions.

Till only a few months ago, AMCs were strangely silent about the whirlwind regulatory changes introduced by the Securities and Exchange Board of India (SEBI). Despite the turmoil that they experienced, AMCs agreed that they would be able to "adjust" to the changes. Now, fund companies are becoming vocal in their criticism of the regulator's actions. SEBI, meanwhile, thinks that companies are coping well with the regulations.

Faced with a sharp reduction in profits amid continuing haemorrhaging of assets under management (AUM), AMCs are not willing to suffer silently any more. Equity mutual funds have witnessed an outflow of Rs29,000 crore so far in this calendar year. Since the ban on entry load imposed by SEBI last August, the total outflow has touched a whopping Rs38,500 crore.

However, this drain was not reflected in the financial results of fund companies for the year ended March 2010. This was because of the phenomenal surge in stock markets that got transferred on to the balance sheet and income statements of the companies. The resulting inflation in the value of AUMs was responsible for the companies showing healthy profits in their books for the last year, since fund companies make a percentage of AUMs. Now however, the story is quite different. The Mint report points out that several AMCs have reported a sharp decline in profits, with some like ICICI Prudential Asset Management Co and Kotak Mahindra Asset Management Co even posting losses for the quarter ended September 2010.

Naturally, AMCs are a worried lot. But while they are fair in their criticism of SEBI's mostly ill-conceived and ill-timed initiatives over the last year, the fact remains that AMCs had it coming for a long time. Among the chief reasons that prompted SEBI to put an end to the entry-load mechanism in mutual funds was the past excesses of fund companies. The boom period between 2005 and 2007 saw AMCs churn out new fund offers (NFOs) at a frenetic pace in a bid to capture volumes and generate more and more AUMs. This came at the expense of product and service quality.

Fund companies were actively encouraging distributors to advise investors to sell their existing funds and subscribe to NFOs. They shamelessly enticed investors with the logic that NFOs were priced at Rs10-supposedly much cheaper than existing units-when actually the issue price of NFOs is meaningless. In order to incentivise distributors to sell these NFOs, funds plied them with lavish gifts and even took them on foreign trips.

Another self-inflicting factor for AMCs has been their flawed business model. The way it is structured is that fund companies are practically at the mercy of distributors to sell their products for them. With little retail contact base of their own, these AMCs are dependent on selling skills of distributors to generate revenues. With SEBI now having dealt a telling blow to the distributor community by taking out their commissions, AMCs are suddenly left without any muscle.
Obviously, fund companies now have to substantially alter their business models to suit the altered landscape of the industry. Otherwise, a wave of consolidation of sorts could very well be on the cards.
 

Comments
Jayant Dwarkadas
1 decade ago
I think the whole scenario is quite ridiculous. The biggest culprits have been banks which distribute Mutual Funds since they have access only to existing clients of the bank and thus they are forced to churn investors money to acheive targets. Individual distributors have to maintain relationships with their clients and cannot afford to cheat them.
Of course AMC's have played a big role by bringing out redundant NFO's but all of them have been sanctioned by SEBI and have SEBI's blessings. As long as the going was good SEBI was not bothered but when markets corrected SEBI and AMC's shifted blame to IFA's who were an easy target.
As an individual distributor I was always advised that investing in equity through Mutual Fund route was the safest way for the retail investor as a fund was professionally managed and extensive research and experience protected the investors money in a falling market. Yet there were very few funds that outperformed markets during the recession and obviously ignorant of the massive fall in markets. Has SEBI taken any steps to penalise Fund Managers for failing to protect investor money. The only thing SEBI has done is penalise distributors for the loss of capital of investors when they are the least to blame.
I once again reiterate that NFO's were all released with SEBI's blessings yet I do not see any action being taken against Mr. Bhave.
Madhusudan Thakkar
1 decade ago
Today what has happened to mutual fund sector may happen to Life Industry tomorrow.IRDA has already given enough signals.Life Insurance industry has POWERFUL body like LIAFI and ALICA plus they have agency force of more than 30 lakhs.In mutual funds the IFAs strength is less than 1 lac and it does not have powerful bodies like above.For your kind information these bodies have already contacted Rahul Gandhi and other people of govt. think-tank, that is the main reason why so-called no-load regime has been put to cold storage for the time being in the life insurance sector.Mutual fund also should have something like this.Since there is no concept of "tied agency "in this sector it is difficult to form such body.
Moneylife deserves compliments for allowing this discussion where concepts collided,arguments provoked,ideas flourished that engaged our intellect and enriched our perception.It has been a journey that has made us more wiser and optimistic.
[email protected]
Roopsingh
Replied to Madhusudan Thakkar comment 1 decade ago
Dear Madhusudanji,
if we think rahul gandhi or soniya gandhi wont listen bcos no entry group has already met them-I think it was a past matter-now situation has become worse fro industry also-
we are not opposing No entry load-we only want to tell tem that both options should be made available to investor-after all investor is the best judge for what suits him best-
we just want to get this done-same in insurance sector can also be done-
so putting down all major points which we discuss here all the time-we can send him through a mail-
and if they are really so keen to make investments load free-let it be in all sectors,like stock broking,post office savings ,etc
why it has been brutally imposed only on MF industry.
we have all the truths on our side then why fear to face them eye to eye.kindly give yor contact no.
we will coordinate through mails very soon
Kaushik Halai
Replied to Roopsingh comment 1 decade ago
I think AMC are still after Banking Channel distributors and promoting mis selling by contests etc for employees , also bank employees who are not AMFI certified sell MF .
Investors also share the blame they do not think while buying MF Insurance from Banks , while the same persons while do a lot of research before buying even vegetables , Grocery, they are not ready to pay for advice
Yogesh
Replied to Roopsingh comment 1 decade ago
Roopsingh,The main reason for high-handedness of SEBI is because there are handful of distributors who are opposing their action.Moreover they are not organized like above.You will be surprised to know that some distributors will rejoice at the death of mutual funds industry because for them 40% commission is better than 1-2%[For them selling mutual funds is like selling Chaana & Bhel] .Do you know that relatives of powerful politicians[even Sonia Gandhi was LIC agent] and bureaucrats are agents of LIC. These people have discretionary powers and for them selling LIC policies is one form of kickback.We are not naive to think why IRDA has left traditional policies untouched?ULIPs with average first year commissions are banned whereas traditional policies in the name of "cultural heritage" and ethos are allowed to continue.
Media also has double standards towards LIC. Have you seen any adverse comments on LIC endowment plan anywhere?.
SAAB GOLMAAL HAI.
Roopsingh
Replied to Yogesh comment 1 decade ago
100% right yogeshji-situation is not solving due to vested interests of powerful people behind the scene
Yogesh
Replied to Roopsingh comment 1 decade ago
Roopsingh, Show me anybody who is interested in small investors for mutual funds?.Except few people who are discussing here nobody cares for it.Have you heard anything from AMCs or its Fund managers.Have you heard anything from media?To some extent small investors also want to earn"BONUS" from traditional policies.There is a conspiracy by "vested interests" as rightly pointed by you.
I am reminded of famous Hindi proverb"HATHI NIKAL JATE HAI.CHEETI AATAK JATI HAI"
Roopsingh
Replied to Yogesh comment 1 decade ago
You are rightly pointing to the real situation-as no one from AMC s is ready to take a public stance on this issue-IFAs are not united-everyone thinks that why he should waste his time in doing these things-whatever situation they accept it-
Yogeshji-the worst part is there is no voice from AMC-who are and who will be most affected by all these moves-they are certainly going to die -but still salaried people have philosophy that its not their owned business-so why to bother-they just bother for salaries-if job in MF will be gone-they will join some other field-for them working in MF industry is not believing in this field-
its not their philosophy-so none of AMC guy wants to comment on this-IFAs alone cannot fight this huge establishment working against them-
so ultimate looser is retail rural based client who will not be able to particiapte in this equity market and ultimate benificieary will be FII with P notes(politicinas)
Yogesh
Replied to Roopsingh comment 1 decade ago
Roopsingh,In a subtle way IRDA has also started this in Life Insurance sector too especially for private players.It knows that in traditional plans private sector cannot compete with LIC..Have you heard anybody in media writing anything about returns in traditional policies of LIC?,How many traditional policies reach at maturity stage?What is the fund performance of ULIPs compared to traditional policies?.How in spite of average commission previous ULIPs are even better than traditional policies? What are the bad features of traditional policies from the point of view of life cover,flexibility,liquidity etc.. For ULIPs illustration is mandatory but for traditional policies why no such thing is required?
When this sector was opened for private sector,at that time interest rates were falling and IRDA allowed LIC to offer guaranteed returns in Jeevan Sree plans?.Do you remember when LIC market share was going down again IRDA allowed Single premium plan like Jeevan Aastha with guaranteed returns?.While banning 14 life insurance companies why SEBI did not ban LIC?.
My point is like AMCs of mutual funds top management of private life insurance companies are also sleeping like "kumbhakarnas".
Media is also discrediting contribution of private life insurers.Even Moneylife recent two articles first about no progress made by private insurers in last 10 years and second about adverse claim ratio of LIC.You should read between the lines.
Media bhi Bahav ke saath behte hai.
shankar
1 decade ago
We need a Daam War in our country where every corrupt beuracrates and politician must get killed
Roopsingh
Replied to shankar comment 1 decade ago
I request all other friends to give their contact details through this great platform-so that we can in consultation with each of us can work unitedly.
Roopsingh
Replied to shankar comment 1 decade ago
Thanks Shankarji for sending your confirmation to support my idea- you from so far of gauhati assam has replied to me through your SMS.i am putting your Mobile no so that the others who want to join us can remain in contact with everyone-pl write down your mail address here so that we can make faster effective communication-
your mobile no is-09864075816
Roopsingh
1 decade ago
Dear friends,
i feel we are talking to the walls and striking our heads with stones-so these deaf ears wont hear anything-
so i have a suggestion which can be last RAMBAN-
we should write all these issues to the only one Soniya madam,i am sure this foreign origin lady is much more better then our DESI beurocrats-and also we should e-mail all this to Rahul gandhi,if they ahve to be in power they cannot tolerate issues related to common workers like us-we need not to waste our time writing here .bcos SEBI bosses Mr Bhave and Mr Vaidhyanathan are 100% deaf and blind to these issues-they are bent on carrying out their agenda due to some vested interest-
if most of IFAs like Madhusudanji,keshav bhatji,shankarji,Deepak khemaniji and all other concerned agree for this-we can work out strartegy for mailing our voice to these leaders who will surely look into the issue-this is the last SUDARSHAN CHAKRA which we can use to remove the evils doing injustice to our livelihood which was just 2% hard earned-
pl let me know-
My e-mail is [email protected]
mobile-08866381360
Deepak R Khemani
Replied to Roopsingh comment 1 decade ago
My email id is [email protected]. I am from MUMBAI. Will be glad to be of any help if helps the cause of our distributor community at large
Roopsingh
Replied to Deepak R Khemani comment 1 decade ago
Thanks Deepakji,kindly give yor contact no too-which may be useful in to communicate
Keshav B Bhat
Replied to Roopsingh comment 1 decade ago
Dear Sir,
I do support your idea and definitly will be avilable to the people anytime for the righ cause of IFA and retail investor welfare.
My email address is [email protected] and mobile no is +919820990209.
Only I dout wether Soniajee or rahuljee will take any interest in our cause as we are not a VOTEBANK for them, but there is no harm in trying.
Regards,
Keshav B Bhat
Prudent investor
Replied to Roopsingh comment 1 decade ago

2 % of 1 crore is 2 lakh.

I believe it has to fixed price instead of percentage based.
Roopsingh
Replied to Prudent investor comment 1 decade ago
.5% upfront of a 100 Rs sip is 50 paisa?will investor pay 200 Rs service charge?200 Rs for a 5000 Rs application is 4%.and 200 Rs for a 100 Rs SIP 200%,and durther to note-we are not against direct route to remain alonwith this-the invetsor has option to go direct if he wants to save 2lacs-which he will obviously not pay to any broker
and do u think they ever paid such amount?it was all pass backed in case of HNI investemnts-let the pass backs(big ticket discount ) be made legal-it prevailsin every indstry-whole sale discounts are always there-why not for big ticket sizes? and do not think for 1Cr client-
just think about 1000 Rs SIP investor or Rs 500 SIP invetsor-these inflows have dried up-one crore tickets will be coming and going
Prudent investor
Replied to Roopsingh comment 1 decade ago
i believe it should be optional fixed price (mutually decided by the AMC and IFA, which should be common to all) included along with the first installment.

Not 2% for all the amount invested via SIP.
Prudent investor
Replied to Roopsingh comment 1 decade ago
Even no load scenario also SIP are increasing.

http://economictimes.indiatimes.com/mark...
Mohammed Rafi
1 decade ago
Vivek
1 decade ago
dekho bhai log, ham sab imandar hai isi liye mutual funds bech rahe hai, ab jo halt hai vo yehi batate hai ki, hame fees leni chahiye, nahi to ham mar jayenge. mai yahi kar raha hu.
Roopsingh
1 decade ago
Those who favour asking seprate cheque from investor should ask manufacturers of all products they use like TV ,mobile,medicines and grocery etc etc-they should ask them that they will pay the trader by 2 cheques-one for the manufacturers based on landing cost of the product at the traders end-and the other for the profit margin of the trader(which should be decided by the user)how much to pay-and people who are in favour of this system please inform me on this website how many cos will give consent for this system-there are hundraeds of products you people are using-just get me 5 names of thsoe cos who agrre to your proposal and i will agree to your philosophy without a hesitation.and if you can't find such product then it is time for AMC's to find the reason ( the reason is that no co will like to die a infant death by adopting this system-so why AMC's not protesting for these moves?(the secret lies in their inner minds which tells them that their busniness will not be affected and technology will help them to get the investor directly without any distribution channels.
jayesh pattani
1 decade ago
Mr Roopsinh,
I am not in favour of Share Broker or unfavour to IFAs, because I am Also a IFA, I am in favour of not to race of Brokerage Payment to IFAs from where wrong selling is starting, which was started by AMCs it self from year 2000s a have no comment whether it is from Entry Load or From AMCs, because either or any way all payouts comes only from Investors' pocket. I strongly favor about transparent system.
Deepak R khemani
Replied to jayesh pattani comment 1 decade ago
What is important is that the investor should have a choice, If he is ready to allow 2% to be deducted from his investments and that can be paid to the distributor then what is the problem SEBI has got with this model.Both can co-exist, If an investor does not want services of an IFA let him go direct( MIND YOU THIS FACILITY IS NOT AVAILABLE WITH SHARE PURCHASES YOU HAVE TO GO THRU A BROKER ONLY), however if the investor desires the services of an IFA and does is not averse to ONLY 2% being deducted, that model also should be allowed to continue, here what is happening is that the dictatorial diktats of some babus in SEBI are being thrust upon investors and IFAs from those who have absolutely no knowledge or concern about what the distributors are going through or the irreparable loss they have caused to the retail investor community of this country wherein they have not been able to participate in this fantastic stock market rally in the last 12-18 months, it is only the FIIs who have made all the money and they will go laughing all the way to the bank when the retails investor will jump in right at the end and that too directly in the stock market buying dud stocks on tips and recommendations received by sms.
shankar
1 decade ago
Is their any hope of some good news after Bhave leaves his office and the new one joins
Roopsingh
1 decade ago
Dear shankarji and madhusudanji,
i agree to you that we have been suggested by Mr Vivek to change business-to me ideas of both of you is acceptable-bcos mehnat ki kamai se to is desh me na ijjat hai,na pet bahrta hai,na gadi chalti hai,to kyo na maovadi ban jaye-kam se kam is desh ke logo ke kuch bhalai ka kam to kar sakenge-me to hamesh mera beta hamesha mujh se kahta hai ki"papa aap to imandari karne ke karan kabhi aage nahi aaye-kam se kam hame yeh bate mat sikhao.ham to kisi ki parwah nahi karenge-jaha hamara fayda hoga voh bindast karenge-"and friends i cant argue him bcos what he says is 100% true-people like we who were working honestly have been punished for no fault of us-and those who dealt with malpractices are eating sweets''
Keshav B bhat
Replied to Roopsingh comment 1 decade ago
Dear all,
It is true there is always Ram and ravan and both of them have their followers. Ravan had all the education and knew all vedas but he and his followers used to enjoy harrasing innocent. same way today with all education and knowledge got the IFAS and the retail investors to harras pray GOD "may ram will appear in some way and finish this present day ravan and his followers at the earliest"
I think QUANTUM MUTUAL FUND is one created by the very ungrateful people in MF industry, they even do not realise that their fund house could enter the MF bussiness because of the hard work of honest IFAs who created awarness about MF among the common people. They bost themselves having saved the investors money avoiding distributors. May I ask one question if it is so where did the money go as i dont find any of their fund performing better. first off all what is their investor BASE? you will find hardly any retail investors go and invest in their funds. Even then they have the courrage to publish all sorts of lies about their performance and investor benefits.
May GOD save us from these people
Regards
KESHAV B BHAT
shankar
1 decade ago
Mutual Fund Industry is a small star in the Galaxy(India).Out of 1000 people only 1 person invest in MF.The day is comming when this star is going to vanish in the Galaxy.I am from Ghy,assam...and i know many MBA's,many IAS,doctors,big officers...corporate employees etc who feel afriad to invest in MF.They know nothing...They invest in Post office,banks etc..So I think it will take almost 100yrs for this kind of people to invest in MF.Baki chota chota logo ko leave karo.Who invest.we(IFA) ask people to invest.....
Is desh me agar 2m terrorist bano , khuni bano to bahut kuch milega lekin imandari se roti kamau to laat milega
Vitthal Joshi
1 decade ago
SEBI abolished entry loads with effect from August 2009, there have been savings worth Rs 1,260 crore for retail investors in the one-year period since then. Besides, there has been a near 4-fold increase in profit in FY'10 over the previous fiscal and more fund houses made profits during the year.
Deepak R khemani
Replied to Vitthal Joshi comment 1 decade ago
Vitthalji,
You have not read the above article completely before posting your comment, What you are stating is what you have read in the newspapers only.
I reproduce a part of what is stated above for your reference.
"Several AMCs have reported a sharp decline in profits, with some like ICICI Prudential Asset Management Co and Kotak Mahindra Asset Management Co even posting losses for the quarter ended September 2010."
The savings of Rs 1,260 crore is not what the retail has saved but more by HNIs and large corporates.
Retail has been net sellers and not buyers.

Madhusudan Thakkar
Replied to Deepak R khemani comment 1 decade ago
Deepak Ji you are correct.According to me the main reason for" mint" to publish this story is BECAUSE AMCs are posting losses.These Media people are not at all interested in distributors,small investors participation and deployment of these funds in Indian economy.It only when their advertisers are affected they report such stories.In the just concluded Jt press conference between President Obama our PM MMS wanted Trillon Dollars investments from USA for infrastructure but here we are totally not utilizing the utilized capacity from small investors through mutual fund route so that we don't have to be dependent on USA.Incidentally today's "mint" story is exactly the opposite it" Money" editor Monica Halan has interview with one Nick Cann who is CEO of Institute of financial planning UK where he has mentioned "There is no rethink in the UK about commissions"i.e UK financial products will go no-load from 2012. These type of spin is encouragement to SEBI's action.
I am really disappointed by Monica Ji because She resigned from "Outllook Money" precisely because she felt that advertisers had major say in editorial matters and precisely same is repeated in "mint".Her money show programme on NDTV Profit is co-sponsored by NSE in which Bhave was previously associated.
Rakesh
Replied to Madhusudan Thakkar comment 1 decade ago
Monika Halan of Mint is a hypocrite. She wrote recently that when she first saw ULIP charges "I fell off my chair." Somebody should have pointed out that Outllok Money under her was writing cover stories every year on Best Ulips! Now she has fits about ULIPs! Please dont believe what she says about why she quit Outlook. Its a lie. Media is worse than the regulator or the politicians in misleading people.
Roopsingh
Replied to Rakesh comment 1 decade ago
Media has been a "CAPT" to ruling class since ancient civilisations,may be their forms be different from today's.Today it is very different and masked and works more sophisticated .media people often change ideologies,loyalities when they become greedy.most of the media has been same in all times-but few have always been on the truth side who try to warn the ruling class for future consequences-those rulers who have not listened to TRUTH have been wiped by either people or foreign forces-Chanakya warned Ghanand not to work against common people-he did not listen-and he lost empire-Chandragupta Mourya folloed his teachings and he could make a big empire throughout south asia-and ven married to daughter of the foreign invader-so those who wont work for common man will be thrown out and will be rememberd with hatred.
Madhusudan Thakkar
Replied to Roopsingh comment 1 decade ago
The media is so "touchy" about distributors.Today's "mint" also carries a biased story on front page which mentions that "lower inflows can be attributed to reduction in the number of new fund offers RATHER THAN SCRAPPING OF ENTRY LOADS".

This raises serious questions above about its intent.The recent statements of Bhave and Vaidyanathan are conspiracy to discredit distributors.If everybody fails to understand then mutual fund industry will be ruined.It is time everybody including eminent citizens,politicians stood up for those fighting for vibrancy in mutual funds.
Over the past year SEBI has been lying blatantly and willfully about outflows.
Even in metropolitan cities the state of affairs of mutual fund industry is bad imagine about far flung areas?
While earlier SEBI seemed guilty of turning blind eye the latest actions raises question about integrity and intent.
I am reminded about Mahatma Gandhi"First they know you then they discredit you and YOU WIN".
The unabashed discredit attempt and biting have begun in full speed.THIS IS AN INDICATION THAT WE ARE GOING TO WIN.
This is the fight distributor community must win we cannot afford to lose SMALL INVESTORS to few crooks who are out to destroy mutual fund industry.
Here is an open call to take this forward not knowing what how the might of SEBI may be unleashed against distributors.
Mutual fund industry is not just at risk.It is imperiled.
IT IS DUTY OF EVERY DISTRIBUTOR TO RISE ON THE OCCASION TO SAVE IT.

Madhusudan Thakkar
Yogesh
Replied to Madhusudan Thakkar comment 1 decade ago
You are right Madhusudan Ji,Selling mutual funds to small investors is one of the demanding jobs in the world.There are no buffers between us and the daily difficulties,delays,and disappointments.We often ride an emotional roller coaster up and down that never seem to stop .
We are all like front line soldiers we must get up everyday and go out where bullets of rejection fly.We must continually deal with the possibility that all our efforts could turn out to be in vain through NO FAULT OF OUR OWN.
We must keep on going in spite of this because our profession of mutual funds selling requires it.We should develop ourselves as "hardy personality" as the types most suited to the rigors of modern business world.We need to develop is resilient,optimistic,tough,capable of bouncing back from temporary disappointments and defeats.
I am reminded of what late Prithviraj Kapoor once said" YEH DIN BHI CHALA JAYEEGA"
Yogesh
Replied to Rakesh comment 1 decade ago
Rakesh ,Monika Ji is in wrong company.She must know that veteran journalist Mrinal Pande has to leave "Hindustan" [a hindi paper of HT media which also publish mint] for the same reason she had to leave Outlook Money.She "fell off her chair... when she saw brochure of ULIPs.What happened to her when saw saw brochure of LIC traditional plans?.Monika Ji your boss Shobhana Bharitya is in Rajya Sabha courtesy congress party i.e govt. of the day.and how can you write anything against LIC because LIC has substantial stake in your company HT media.
Keshav B bhat
Replied to Vitthal Joshi comment 1 decade ago
Dear Sir,
Instead of counting the spoiled eggs see the reality if u are a retail investor and stop your imagined calculations for a cheap publicity
Regards,
Keshav B bhat
vivek
1 decade ago
i thing u all r waisting ur time in arguing. try to charge fees from clients or go for another business.
Keshav B Bhat
Replied to vivek comment 1 decade ago
Dear Sir,
It is eassy to say go to another bussiness.
But the person who has spent enough time and energy knows the pain of the same.
Just because of these mindless experts it is not just IFAs are suffering, the retail investors themseves are put in to difficulties. To know the suffering of powerty and hunger, you can not experience it by fasting for an hour or two or a day, you have to experience it by the same conditions what common people are going through.
Regards
Keshav B bhat
Madhusudan Thakkar
Replied to vivek comment 1 decade ago
This is not business .THIS IS WAY OF LIFE[i.e to be concerned about people's financial health] for us.We are not arguing for nothing.We are happy that Moneylife is providing us this forum
Madhusudan Thakkar
Replied to Madhusudan Thakkar comment 1 decade ago
POST SCRIPT: Vivek Ji you are indeed correct.Have you heard any mother telling her child to become agent when he or she gets old?.Have you seen any school going child ambition to become agent?.We should seriously think of other business like joining Maoists,ULFA ,Let or SIMI.But the most easiest will be "Kidnapping" business.Here we will be at distinct advantage unlike criminals because thanks to our present profession we have access to "realistic" income and wealth of persons and we are also familiar with their lifestyles.So for us "ransom" amount will commensurate with above reality.BIG THANK YOU FOR YOUR SUGGESTION.

On a more serious note I am reminded of quote of C.Rajgopalachari who told Nehru that "Even though majority is behind you.LOGIC IS BEHIND ME".

WE ARE COMMITTED TO AWAKEN "KUMBHAKARNAS" OF MUTUAL FUNDS INDUSTRY.
Madhusudan Thakkar
1 decade ago
Today print media has a story about "SEBI wants MFs to spend on investors not DISTRIBUTORS. and has ADVISED MFs to bring down number of agents and distributors".This is classic case of "Vinas kale viprit buddhi".When house is on FIRE SEBI wants "living room to be converted in kitchen".This is bankruptcy of ideas on the part of SEBI.India is a vast country it is only through distributors we can have investors education.LIC model is proof of this.It will be interesting to see response of AMCs,AMFI,etc.
Roopsingh
Replied to Madhusudan Thakkar comment 1 decade ago
AMCs ko agar apni kabar(GRAVE PIT) khodna hai to unhe jarur SEBI ki bat par amal karna chahiye-kuch samay ke bad AMC hi dafan ho jayegi to yeh magajmari hi khatam ho jayegi-mujhe lagta hai-AMCs ko is VINASHAK BUDDHI KO EK BAR JARUR AJMANA CHAHIYE-kyo ki AMC me bhi DURBUDDHI LOGO KI KAMI NAHI HAI-till today no one from AMCs ahs come forward to say soemthing on this burning issue-they wont say till theirsalries are coming-the day they are kicked out-they will realise they dug their own kABAR-
Keshav B Bhat
Replied to Madhusudan Thakkar comment 1 decade ago
Dear Sir,
It sounds well to say investors to be educated by the AMCs, but unfortunately none of the so called saviors of investors realised how much ever you spend or programms you conduct it is imposible to reach retail customers or potential retal customers as these programs can be conducted in some venue by accomodating few people and first of all working people do not have time to attend such programmes. No dout it can be an opportunity to some experts or CFAs to earn some extra money without benifting anybody. Today AMFI bosts about conducting thosands of such programmes but never say how many people educated by this programme and how many new investos added because of these programmes. I attended few such programmes but i found the atendace is doctored by the programme conductors and just the same people attend the programme everytime. Still shamelessly they boast about it.
Regards
Keshav B bhat
Roopsingh
Replied to Madhusudan Thakkar comment 1 decade ago
Madhusudanji,at last this all comes at expanse of investors pocket,AMC or SEBI will not do charity by spending on publicity,this man Ravi which posed as champion of investors interest is from quantum MF and they are making expenses by giving net ads(SEE home page ML)-is this reputation they have made -why they have to take help of media?if they are performing so well why dont investors come to lane up in que in their offices?
Madhusudan Thakkar
Replied to Roopsingh comment 1 decade ago
Roopsingh Ji we should not get provoked by their arguments."Sunlight is a sunlight,nobody can say it is darkness,unless one is blind".It is pardoxical that SEBI has imitated Quantum AMC model.They are blind to see LIC successful model which is tried,tested and proven.By the way many of my friends are very much appreciative about this website but are reluctant to contribute because they feel that their writing language is not good. TO SUCH PEOPLE MY SINCERE REQUEST IS "LEKHNE KE LIYE BHASHA KE JAROOORAT NAHIN HOTI...ideas CHAIYE.".... AM I RIGHT SIR ji.
Roopsingh
Replied to Madhusudan Thakkar comment 1 decade ago
Madhusudanji, u r absolutely right,BHASHA koi bhi ho bahvna jarur honi chahiye-agar japan,germany.korea,russia english nahi bolte to kya wo kisi se kam hai?english is for knowledge-it can give extra tool to shrpen the brain but one has to have brain-am i right?ask them to right whatever they feel-and i foten advice my fellow friends to write here or atleast make comments-but lazy minds dont respond so easily.
Yogesh
Replied to Madhusudan Thakkar comment 1 decade ago
THIS IS LIKE ADDING INSULT TO INJURY.The day is not far when it will "BAN" mutual funds citing that "investors should "DIRECTLY" invest in markets" so that their"returns" will not be eaten away by AMCs... Jago AMCs Jago.
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