‘There is a scope to rationalize TER further’

An investor who has patience and time to buy, manage, sell and also who can make sure that funds are transferred to his family after his death can definitely invest in direct plans. During last 6 months at least 15 direct MF investors met me seeking help to withdraw their funds or to streamline their investment. When I checked their statement I found that in few statements nominee name is wrong, investors name is wrong, NRI investors NRE bank account wrongly mentioned as NRO, Invested lump-sum funds one time in small cap (chasing returns).

Regulators need to understand that Advisors or distributors role is not just selling. Their role just starts when they sell a fund but it ends when investor and/or his nominee receives the funds to their bank account. I have seen the panic in direct investors when Nifty breached 9500 few months back. Advisors/distributors have big role to play when market encounter severe volatility and crash as happened in 2008-09 and also in 2011, July Aug 2013. Hand-holding helps investors to retain them in MF and also help them to march towards their destination. We never faced such situation since 2014. At present investors can redeem in panic so easily as redemption button at their finger tip. advisor/distributor plays important role in helping investors to manage their emotions guiding them to take advantage of volatility.

Moreover, please also note the contribution by advisors/distributors to tax collections. A distributor who earns 20 lakhs a year pays more than 3 lakh to the government as GST and approx 3.5 lakh as Income tax. (approx 6.5 lakh tax). This is not a small amount. 1000 distributors tax is almost 6500 lakhs. Its huge contribution by MF distributors to the Government. Indirectly investors too contributing here. While hand holding investors, helping them to create wealth, good advisors/distributors are also contributing big in building our great nation.

This means that SEBI will not interfere between us and them but only in our commissions they will interfere and let AMCs or will actually help themgenerate more and more profits.

Shame shame shame

I am agree with Andrew L Dcunha & Prosant . Mr Parrek Sir i respect to you, but HDFC Bank bad practice against SIP . SIP start and after 3 to 12 SIP also close due to target their complete

Hi All

Many of the Politicians in India make it a point to shout at the top of their voice, that the country need solutions for meeting the targets of providing jobs or jobs through SELF EMPLOYMENT.

What is IFAs do? Come to the rescue of the Government, by accepting the Challenges by entering into this business called, Financial Advice.

Is it a CRIMINAL ACTIVITY? We are neither looting nor raping anybody for some interested parties like Bureaucracy or Banking Staff or Media Personnel to start a maligning campaign against us. As IFAs, we are also paying scrupulously pay Taxes(GST & Income Tax) on what we are earning. So, why these Regulators are always behind us?

Why the Government cannot interfere and say in a louder voice defend us, saying that "let these Community also" find bread & butter for themselves!!

The other day, I came across news item that even the Delivery boys/girls are earning around 50K. We do not have any right to earn something, as long as we are not HURTING our patrons, our clients. I have been in this business for more that 25 years and yet to come across a single investor murmuring about the reduction of his earnings, on account of too much money paid to this Financial Advisory community!!!!

Employees get Increments and incentives. We get DEMOTED on a continuous basis!!!!! Parliamentarians get increase in remunerations regularly and various Tax free incomes. None of the Senior Advocates in the Supreme Court are able to file a PIL for us.

WHERE DO WE GO, dear Friends?

Raghavan

To my mind, an important contribution by SEBI towards the capital markets has been a dedicated micro management of the mutual fund business and continuous lowering of distributor revenues. The fact that the mutual fund business is cyclical and depends on the capital markets does not seem to occur to SEBI at all.The almost dead state of the retail debt markets does not bother SEBI, nor the fact that thousands of companies delist deliberately on compliance grounds, leaving millions of investors watching helplessly. The manipulation of penny stocks is left to the Income Tax Deptt to question, SEBI is content to let its multi crore surveillance system gather dust instead. All this happens inspite of SEBI's almost limitless powers. It reflects poorly on SEBI's priorities and work.

Now a days all SEBI chairman are paid salaries just to reduce Mutual Fund TER. They hardly concentrate on other productive activities like buy mutual funds and term plans rather than going for LIC endowments and money back products. I feel that they should allow LIC to sell only term plans as its a Life Insurance Corporation of India. They invest investors money in equity market and generate minimum 11-12% return and give investors IRR of only 6% in guaranteed products. You can seethe asset size of LIC that they have created by giving guarantee of 6% and rest of the 5% per annum goes in increasing their assets and paying fat commission of average 30% to their agents. Even renewal commission is on an average of 2-3%. SEBI should concentrate and fight to stop huge misguidance happening within their government firms like LIC and in other private & PSU banks for eroding investors wealth by supplying high commission agents to reduce investors wealth. LIC should reveal that how they themselves and their agents enjoy investors money in arranging MDRTA in foreign countries.

Hope this will help them understanding TER in their own family circle.