FM asks SEBI to implement recommendations of Sumit Bose Committee

I am aged 63 and into financial advisory since 25 years. I am witnessing both accomplishments and sorry state of capital market and marketing behaviour of AMCs althrough these years. It is time for IFAs like us, AMCs calling themselves as manufacturers (don’t know what they manufacture as the performance of many funds of great fund managers valued far below the bench mark) and the regulators to introspect what is missing amongst ourselves to consider each one is responsible for investors good experience of investing.

AMCs calling us as we are paid more than our worth leading painting us bad in the eyes of investors. We call Fund managers are paid in crores far more they worth, proved by their bad fund performance. And regulator is autocratic babu without understanding the ground reality of what is the role, responsibility and obligation of IFAs at ground level. There is TRUST DEFICIT amongst us. We three don’t trust the other two.

No one is ready to hear us. None above the sales team have any patience to hear our non-sales issues.
We are in a sorry state of affair. Let the market and fund performance go still bad and AMCs getting disconnect with the mass and new investors are already expressing that MUTUAL FUND IS NOT SAHI HAI.

Why is Jaitley Ji only asking SEBI for implementation. Who will tell IRDA for disclosures and transparency. LIC is a cash cow for them and these corrupt politicians will squeeze poor people money via LIC.

Thanks for the regular updates by CafeMutual to us, but
My question to CafeMutual is that are all the comments posted by us here been shared with the regulator or the concerned authority time to time???

It is an undeniable fact that mf popularity is only due to ARN's as they give personal touch as also collect huge investors. However, now mf houses thro competition by selling direct . Actually they are taking creams of the pains of ARN's. I believe it is the right time to restrict mf houses to operate individual investors and allowed only to corporate investors. Otherwise, this mf investment Will be dried out and there will be only few investment in capital market I,e basic objective of mf will be defeated.

Don't focus on news just do your work.. in future is se jyada kharab time hoga sayad Jo mil Raha hai wo bhi stop karde.. hamare liye to kharab time hi hoga because aagar fir se jetli ji FM hoge to wo sirf mf distribution Ko hi dekhenge... Aachhe din aachhe din kaheke bure se bhi kharad din as Gaye hai..

Don't focus on news just do your work.. in future is se jyada kharab time hoga sayad Jo mil Raha hai wo bhi stop karde.. hamare liye to kharab time hi hoga because aagar fir se jetli ji FM hoge to wo sirf mf distribution Ko hi dekhenge... Aachhe din aachhe din kaheke bure se bhi kharad din as Gaye hai..

Yes it is the fact that no one neither sebi nor FM jaitely ji talks about what is being paid to the fund managers from the AMC disclose also that what the Fund Manager n CEO of the mutual AMC are being paid at the time sale. But nobody dares to that why.
Why they are doing with the investor's money. All IFAs come together n knock the regulator.

Modi ji.... Aapke achche din Kahaa gaye.... Distributers ka trail commission ghatayaa, up front commission bandh kiyaa... Gst lagaya, remaining income par income tax lagayaa....really achche din enko bolte hei toh fir.....distributers khatm Ho jahenge. Mutual fund sale me advisor jaruri hei... Modiji samjaaye apni team ko.... Nahi toh mutual fund services me badi problems khadi ho jahegi

Hope this will apply to all financial products esp. Insurance schemes like ULIPs not just Mutual Funds.

GOVT FIRST THINK AND RESEARCH ABOUT ANY IMPLEMENT,
ONE SIDE NO NEW JOB CREATE AND ANOTHER SIDE ONLY FOLLOW SOME CORPORATE RECOMMEND THEY APPROCH FM AND FM APPROCH SEBI BUT SEBI IS Intelligent,
Never follow blindly FM recommend like RBI recently case,

SEBI AND RBI IS KING GOVERMENT CAN REQUEST NOT ORDER SO BEFORE IMPLEMENT I WILL REQUEST TO SEBI IF READ THIS UNEMPLOYMENT IS HIGHER IN INDIA AND INDIA IS DIFFRENT THAN DEVELOPMENT NATION SO NO EACH AND EVERY T COMPARE EACH AND EVERY RULE AND REGULATION LIKE AMERICAN OR EUROPION ALSO CONSIDER GEOGRAPHIC AND EDUCATION AND BEHAVIOUR OF INDIAN AND FIRT INDIAN ACHIEV EQUAL EDUCATION LEVEL AT ALL AND EACH HOME THAN COMPARE ADVISORY AND OTHER RULE,
AT PRESENT SEBI CAN SIMPLE FIX EXPENSES CAP LIKE 2% and in India next 10 year growth of GDP and inflation may be between 5 to 8,% level it mean India stock market may delver average 10 to 16%
Return,

So mutual funds normaly given above bench mark return so return of equity mutual funds is between 10 to 18% depend on scheme nature like asset allocation ,balance advantages equity scheme,balance fund or pure equity, or sector fund, so SEBI can put consider return on Indian equity and compare with us and Europe or other and
DECIDE THAT IN AMERICA AVERAGE RETURN EQUITY GIVEN IN DOLLER AND AVERAGE INDIA STOCK MARKET RETURN,

LOW RETURN LOW EXPENCES AND HIGER RETURN IN INDIAN EQUITY IF SUSTAIN LEVEL CAN SEBI ATLEAST RUN OR CARRY ON EXISTING EXPENSES LEVEL ALSO SEE REVENUE PART AVERAGE GO TO DISTRIBUTOR POCKET AND AMC POCKET ,

IF CORPORATE INVESTOR COMMISSION REMOVE,

THEY CAN HELP REDUCE EXPENCES LEVEL AND INDIRECTLY EXPANSION IN RETAIL GET BOOSTING,
WITHOUT EFFECT OF EARNING SMALL DISTRIBUTOR,
AND IN INDIA MUTUAL FUND INDUSTRY STILL BEGINNING LEVEL NEED TIME TO RICH PEER LEVEL OF DEVELOPMENT NATION TILL NEED PROMOT THIS INDUSTRY TO BOOST INDIAN EQUITY AND DEBT MARKET WHICH CAN HELP NATION DEVELOPMENT,
SO DISTRIBUTOR OR IFA IS KEY PAET IF INDIAN MUTUAL FUND INDUSTRY AND THIS SHOULD BE UNDER STAND ALL STAKE HOLDER BEFOR REACH ANY CONCLUDE,
LAST FIVE YEAR NEW YOUNG GENARATION IFA CHOOSE TO HELP MUTUAL FUND INDUSTRY THEY CAN DIRECTLY EFFECT THESE KIND OD STRUCTURE IMPLEMENT,
FINALLY WE CAN REQUEST FIND OUT SOLUTION RATHER THEN DESTROY,

ESTABLISHED COMUNITY IFA WHICH ALSO PROVIDE SERVICE TO OUR PEOPLE TO HELP LOTS OF SAVING AND INVESTMENT,
IN INDIA IF GOVT ONE BY ONE DESTROYED EMPLOYMENT,
WHAT USE OF LOS EXPENCES MF INDUSTRY IF GRADULLAY RETAIL INVESTOR START REDEMOTION AND PRESSOR ON DEBT FUND AND INDIRECTLY COROORATE AND NBFC WHICH STOP TO KENDING KISSION AND CITY SMALL BUSINESS HOUSE ANH ALL OVER INCREASE UN EMPOYMENT,

GOVT FIRST THINK AND RESEARCH ABOUT ANY IMPLEMENT,
ONE SIDE NO NEW JOB CREATE AND ANOTHER SIDE ONLY FOLLOW SOME CORPORATE RECOMMEND THEY APPROCH FM AND FM APPROCH SEBI BUT SEBI IS Intelligent,
Never follow blindly FM recommend like RBI recently case,

SEBI AND RBI IS KING GOVERMENT CAN REQUEST NOT ORDER SO BEFORE IMPLEMENT I WILL REQUEST TO SEBI IF READ THIS UNEMPLOYMENT IS HIGHER IN INDIA AND INDIA IS DIFFRENT THAN DEVELOPMENT NATION SO NO EACH AND EVERY T COMPARE EACH AND EVERY RULE AND REGULATION LIKE AMERICAN OR EUROPION ALSO CONSIDER GEOGRAPHIC AND EDUCATION AND BEHAVIOUR OF INDIAN AND FIRT INDIAN ACHIEV EQUAL EDUCATION LEVEL AT ALL AND EACH HOME THAN COMPARE ADVISORY AND OTHER RULE,
AT PRESENT SEBI CAN SIMPLE FIX EXPENSES CAP LIKE 2% and in India next 10 year growth of GDP and inflation may be between 5 to 8,% level it mean India stock market may delver average 10 to 16%
Return,

So mutual funds normaly given above bench mark return so return of equity mutual funds is between 10 to 18% depend on scheme nature like asset allocation ,balance advantages equity scheme,balance fund or pure equity, or sector fund, so SEBI can put consider return on Indian equity and compare with us and Europe or other and
DECIDE THAT IN AMERICA AVERAGE RETURN EQUITY GIVEN IN DOLLER AND AVERAGE INDIA STOCK MARKET RETURN,

LOW RETURN LOW EXPENCES AND HIGER RETURN IN INDIAN EQUITY IF SUSTAIN LEVEL CAN SEBI ATLEAST RUN OR CARRY ON EXISTING EXPENSES LEVEL ALSO SEE REVENUE PART AVERAGE GO TO DISTRIBUTOR POCKET AND AMC POCKET ,

IF CORPORATE INVESTOR COMMISSION REMOVE,

THEY CAN HELP REDUCE EXPENCES LEVEL AND INDIRECTLY EXPANSION IN RETAIL GET BOOSTING,
WITHOUT EFFECT OF EARNING SMALL DISTRIBUTOR,
AND IN INDIA MUTUAL FUND INDUSTRY STILL BEGINNING LEVEL NEED TIME TO RICH PEER LEVEL OF DEVELOPMENT NATION TILL NEED PROMOT THIS INDUSTRY TO BOOST INDIAN EQUITY AND DEBT MARKET WHICH CAN HELP NATION DEVELOPMENT,
SO DISTRIBUTOR OR IFA IS KEY PAET IF INDIAN MUTUAL FUND INDUSTRY AND THIS SHOULD BE UNDER STAND ALL STAKE HOLDER BEFOR REACH ANY CONCLUDE,
LAST FIVE YEAR NEW YOUNG GENARATION IFA CHOOSE TO HELP MUTUAL FUND INDUSTRY THEY CAN DIRECTLY EFFECT THESE KIND OD STRUCTURE IMPLEMENT,
FINALLY WE CAN REQUEST FIND OUT SOLUTION RATHER THEN DESTROY,

ESTABLISHED COMUNITY IFA WHICH ALSO PROVIDE SERVICE TO OUR PEOPLE TO HELP LOTS OF SAVING AND INVESTMENT,
IN INDIA IF GOVT ONE BY ONE DESTROYED EMPLOYMENT,
WHAT USE OF LOS EXPENCES MF INDUSTRY IF GRADULLAY RETAIL INVESTOR START REDEMOTION AND PRESSOR ON DEBT FUND AND INDIRECTLY COROORATE AND NBFC WHICH STOP TO KENDING KISSION AND CITY SMALL BUSINESS HOUSE ANH ALL OVER INCREASE UN EMPOYMENT,

MF Industry is changing very fast like the Mobile Phone / telecom industry.
In Mobile from Rs. 25/- per minute for outgoing and Rs. 15/- for incoming the call rates have come down to Zero in 20 years.
So only people who have passion for this work, and who are able to keep their cost to minimum by adopting technology will survive.
Also don't become a compulsive salesman. Have the guts to say NO. You are not paid salesman. You are Self Employed.
When things dont work in your favour sit quietly read books on great and successful Investors like Buffet, Charlie Munger etc or great Business people.

If government can't generate employment, and finance minister only for focused on mutual fund distributor,and always think how to cut the brokerage, not doing well, this is not ache din, very worst din. so think once mutual fund distributors, otherwise IFA ko vi sucide karna padega.
Now i say mutual fund sahi nahi h for distributOrs.

I have my greatest respect for SEBI as they are genuinely trying to safeguard the interests of investing community by rolling back certain fees. They certainly want honest and clean business. I appreciate it. AT THE SAME TIME , I AM JUST LOOKING AT THE OTHER SIDE OF THE TABLE , WHICH IS THE DISTRIBUTION COMMUNITY. Can Cafe Mutual as a professional and industry specific domain, can give their unbiased advise whether it is advisable to continue as a Distributor or Advisor , going forward ? Scaling up is ruled out. We are discussing about continuance. There are lots of positive noises - Churning will be curbed because " up front " is no more there , Distributors would be going high tech, Distributors would now concentrate on exponentially increasing their client base. Distributors would now become Advisors etc. All these sounds good on the drawing board.

The reality is as follows :

- The clients even if they pay advisory charges would discontinue the same, if the market is subdued due to reasons beyond advisors' control - like the Fund Manager not doing a professional job, US imposes trade sanctions against any major economy, the market falls on political situations etc. After having taken the money, the Advisors would be held responsible for not predicting market falls and his further renewals are not going to come. Could be just an excuse for not paying up. The Advisor would be spending full time recovering his annual fees.

- Doubling the client base would require time and money. It is easier said than done. Where is going to be the sustenance money till then ? Who is going to take care of the family of a dedicated professional advisor till then. Are Banks going to finance the Advisors and Distributors till break even is achieved. Is it given an SME status ? Who is going to pay the salaries of staff till then? Professional updating of knowledge and information with the amount of news flows that are coming : this itself has become a
half day's job everyday. Is the effort going to be compensated or motivation available for the same?

- Implementing Tech Savvy measures is good - But with the current situation any scaling up efforts are going to be viable?

- Cost of acquisition of client is not going to be recovered because up front is not there. Not many distributors / Advisors are going to be servicing retail investors who come up with Rs 10000 , Rs 20000 or even Rs 50000 investment. It certainly is going to be not in in the interest of small retail investments.


It has become a fashion with some of the entities in the broking and Advisoy business to go to town with positive noises , whenever earning is hit hard - like ' We are going to be benefitted ' , ' it is best thing that ever happened to the business ' etc ., I am surprised whether they really mean it. Are they trying to impress people with their superior abilities? Nero was playing the flute or something when Rome was burning . Would you call Nero positive ?

I humbly request Cafe Mutual to initiate a debate on advisability of continuance or up - scaling of mutual funds business. Can Cafe Mutual take the lead and initiate an honest discussion in the interest of this segment of society. My worry is that quality advisors should not move for greener pastures and leave the ground open for any one. Thanks

As per recent report MF investment has exceeded Bank Deposits. This himalayan job is possible only because of Distributors. Market penetration is not possible unless IFAs involve in mobilising the sources.
The present scenerio will not support the Distributors to continue their proffession in the MF Field.

K v Raghupati jee say 100%correct. If FM wants to disclose distribution amount of Advisor, 1st he disclose all products manufacturing cost and mrp. FM wants to loot lo maximum amount of consumers . There is no any rules of MRP of any product. As any company wants keeping price no any guidelines. Mrp is minimum 300%to 400times of manufacturing price. I asked where is rule . It is only for harsh us , fm wants all Advisor sell wrong product , lic pmc. Postal product etc.