MF News ET Money targets regular plan investors: To help them switch to direct plans

ET Money targets regular plan investors: To help them switch to direct plans

The company has targeted 17 million investors (1.7 crore investors) who invest through distributors to switch to direct plan.

Team Cafemutual Oct 17, 2018

In a press release, ET Money has announced that the company aims to help 17 million investors who have invested in mutual funds through regular plans to switch to direct plans for free.

The company said that it would allow an estimated 1.7 crore existing mutual fund investors to convert their regular mutual fund investments into zero-commission, direct mutual funds and start saving lakh in commissions.

The company claims that this is one of the biggest initiative by any company in the space to simplify investing. “All investors who convert to direct plans will also be able to do free, unlimited investment & withdrawal transactions in direct funds through ET Money app,” said the company.

“Indians at large have been denied access to simple, low cost & transparent financial solutions for decades. We want to change that and this launch to simplify movement to direct mutual funds is in line with that mission”, said Mukesh Kalra, CEO of ET Money.

The company further said, “By shifting to direct plans, users can save upto 1.5% in commissions every year compared to regular plans. In recent scenario of volatile stock markets, if investors believe in holding back new investments, then converting one’s regular mutual funds to direct mutual funds can be a great option.”

“Keeping in line with trends in developed markets, this launch will ensure that Indians too can choose low cost investment products for their wealth creation purpose” said Ajit Kumar, Wealth Business Head, ET Money.

Last month, the company allowed its existing to switch a whopping Rs.150 crore from regular to direct plans.

The company said, “The process to switch to direct funds is super-simple. Investors just need to upload their mutual fund statement on the app and within 30 seconds they will be shown the option to shift your regular funds to direct plans. It also shows possible savings in commissions, applicable exit loads and taxes, so that you can take an informed decision. The app also assists them in getting the transaction statement by providing a step by step guide. Once converted to direct mutual funds, the investors will also be able to continue investing in them from the app at no additional cost.”

Like what you are reading?

Login to get instant access to this article and many other such articles on business development, success stories and industry updates.

Don't worry ... it's FREE!

Have a query or a doubt?
Need a clarification or more information on an issue?
Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

Latest Articles

‘Once you gain the trust of women clients, they are yours for life! ’

1.31 crore investors will have to redo their KYC to execute capital market transactions

Your bulletin for the day

Invesco MF settles case with SEBI on alleged violation

Prateek Agrawal is the new MD & CEO of Motilal Oswal MF

MF industry welcomes 24,000 new individual MFDs in FY24

Decoding the latest KYC status

‘Mid cap funds will continue to deliver healthy returns’

MFs increase exposure to private banks, capital goods and consumer goods

MF bulletin: The MF industry adds close to 7 lakh new investors in March

Click to clap

Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.

42 Comments

A Kumar · 5 years ago `

Protest not to buy economic times news paper

suryakant kale · 5 years ago `

By-Cot ET

SAMEER BARAI · 5 years ago `

Tell ET money directors if they are always looking good for customers then they will provide all services free of cost , their all news letters are not free and their directors taking salary, bonuses etc tell him also to work for free . As i just looked for the structure of ET money they are selling customers data , personal information to all other companies like insurance, and various marketing companies. This means all clients data who have done investments through ET money are at risk.

nirmal · 5 years ago

Right info

Gaurav h · 5 years ago

Itna hi investors ki fikra hai to daily ka ET paper free me de do...Aa gaye free me seva dene...investors will not come with you...few will go but good people are still there in market..

Sudhir Kumar Mishra · 5 years ago `

ET money has initiated a good practice so that distributors may get prepared for tough time ahead. Logically, we distributors are free to exert pressure to stop those plans taken through app.

Vikas soni · 5 years ago `

If ET money CEO really want to help client then all client need advisor for their financial planning , CEO is talking abt like repair a car without mechanic , it's also like that without degree become a Doctor and prescribed self. What a joke...

SAMEER BARAI · 5 years ago `

ET money and other online Platforms are just collecting Clients data and selling this data to insurance companies, pharma companies, brokerage houses and making money . I think customers will face this in meantime and returnback.and if ET money is really wanted to help investors than their company should be No Profit Making Company they shouldn’t earn profit out of customers.

Bhushan · 5 years ago `

Distributors are the backbone of the MF industry.. ET money is really eating up on our commission ..... Does ET money think that providing 1 year free service customers will be satisfied ? What about portfolio rejig and what If the same fund doesn't perform ?To make 1 customer the distributor pours in sweat and blood and now bcos of these stupid apps .... Our business will be hampered... High time the association takes some action on this...We will have to well other products soon if this continues...

Yogesh Kumar Gaur · 5 years ago `

It is like advising patients to stop consulting doctors and instead buy medicine from chemist . In first market downfall , it shall result in exodus of direct investors from market . This service of ET Money is not a service , and is rather dis service in long run. All Arjunas need Sarathi Krishna in long battle of investments .

Mandar patkar · 5 years ago `

After recent ban on eKyc which was the easy tool for direct platforms to onboard clients ET Money realised the pain of onboarding totally new client.My distributor fellows,get ready to grab totally new investors as we have excellent reach to investors.Also,if you come across any suffered investor with direct plan,don't wait to switch to us.In long run investor with advisor will create wealth as handholding in bad phase is done by advisors only.

Ghanshyam chaudhary · 5 years ago `

I request to all readers please avoid ET newspapers as possible as because they are blind they do their line small not to build big line they are ill

Praveen · 5 years ago

Well said, I endorse your view. The IFA community should unsubscribe ET newspaper then they’ll feel the pinch.

Bhavika · 5 years ago `

ET Money is expecting patients to do self diagnosis which is more dangerous. Its like a person has gone to doctor once and then advised to go to chemist for lifetime to get itself treated. ET Money shifting to Direct Plans from Regular Plans tantamount to sale and re-purchase. ET Money is not highlighting the TAX impact on sale for investors for doing this move. ET Money hope you are aware that its not 1.5% commission that is saved by the investor rather only the difference between the expense ratio of Regular and Direct Plan which is much less than 1.5%. Investors are wise enough to seek service pay for service rather than be penny wise and pound foolish. ET Money, you are spoiling your own brand name because any wise person will see the malafied intention to disrupt a service industry.

Girishprasad · 5 years ago `

Why they are not making new customers.they do not want to spent on kyc n other work .This is misuse of system .cheating with existing distributers

Nirmal · 5 years ago `

Ashish kumar · 5 years ago `

We distributor should also star criticizing each and product and news paper of ET so that his business model can hampper.why not this idiot make new customer instead targetting existing our regular customer

Ashish · 5 years ago `

Now I m going to uninstall ET news paper app... We should hit his business model also.... please every distributor should. Start criticizing ET news paper .....

Xyz · 5 years ago `

Its all fine....the investor knows what is good for him. To all knowledgeable distributors....dont worry..keep doing the right thing. But IFA associations should take ET money to court over 1.5 percent claim as that is false. Specially after SEBI guidelines, the gap will be only 0.5 percent max....falsehood is a problem. Rest, everyone has a right to do business. No?

Prashant · 5 years ago `

This is just a beginning picture abhi baki hai mere doston

rOHIT AGARWAL · 5 years ago `

WHY DON'T WE DISTRUBUTOR RAISE OUR OWN VOICE AGAINST ALL THESE DIRECT FACILITY,SINCE IT IS DIRECTLY INPACT OUR EARNINGS AND ALL ORGANISATION IN THIS WORLD TAKE PREVENTIVE STEPS,FURTHER IF ALL IS FREE FROM ET THEN WE ALSO DO WONDER WHAT IS IN THEIR OWN INTEREST TO DO SO ,AND HOW DO THEY MAKE THEIR OWN BREAD COMING HOME.

Abc · 5 years ago `

Install karo fir phone aayega sir ye active karao wo active karO or charge lo or ifa jaye bhaad me inko to inka ghar chalna chahiye baki sab bhad me jaye

Rajesh · 5 years ago `

As per my understanding only sunlight & rain water in this world are free of cost, for rest of the things one has to pay something in one way or another. Even the super powers USA/Russia/Japan cannot provide an all pin also free. Remember, its all marketing gimmicks.

Rajesh · 5 years ago `

maybe directors of ET money are also getting their hair cuts by their family members ¨DIRECTLY¨ to save the monthly fees of barber & also may be operating their family members ¨DIRECTLY BY THEMSELVES¨ by searching in google/Youtube on How to Do Open Heart Surgery to save the fees of doctor

Brijesh yadav · 5 years ago `

ET uninstalled, now SEBI is on sleepover, its a complete case of luring investors with commisions, Ekyc closed now they cannot onboard new clients, dnt worry ET this strategy wont work as well

Tushar Choksi · 5 years ago `

Well what ET Money and so many others who are doing poaching is not without the blessing of AMFI and the regulator. So be prepared for the tough times.

Tushar Choksi · 5 years ago `

Well what ET Money and so many others who are doing poaching is not without the blessing of AMFI and the regulator. So be prepared for the tough times.

Dinesh Sahgal · 5 years ago `

I think it is not one person who can fight, we as a community have to come together and fight this problem and for this we need the IFA association to please look into the same and take up the matter with the SEBI and other affiliate bodies. This is clear case of killing a whole community for benefit of one.

Ranjan · 5 years ago

SEBI must ban ET MONEY at once. ..before it could damage the whole industry

v b rai · 5 years ago

Entire IFA community should boycott Print , Digital and any other Times Group related products

More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.

POLL

MORE POLLS

AMCs can pay trail commission to the new distributor if investors initiate transfer of their assets. How will this impact you?

Help me get clients of other distributors who are underserved

Lead to poaching of clients

No significant effect on my business

EVENTS FORUMS