MF News MFD Universe raises concern over ‘misleading’ ads of direct plan sellers

MFD Universe raises concern over ‘misleading’ ads of direct plan sellers

The Telegram group has sent an email to SEBI and AMFI raising concern over such advertisements.

Team Cafemutual Apr 19, 2019

One of the largest groups of MF distributors on Telegram with over 4,000 members, MFD Universe has raised concern over misleading advertisement campaigns run by direct plan sellers. Telegram is a messenger app like WhatsApp.

The group has sent an email to SEBI and AMFI requesting them to check claims made by such campaigns.

It recently pointed out an advertisement of a Hyderabad-based online direct platform. In its digital ad campaign, the RIA claims that investors lose 40% in MF commissions. In fact, the RIA advises investors, ‘Don’t get cheated and don’t postpone the good life’.

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48 Comments

K venkata Krishnan · 5 years ago `

Great .. Superb .. just begining....

Smita · 5 years ago

I agree with this....nice beginning...many more points to come up ....

K venkata Krishnan · 5 years ago `

Great .. Superb .. just bigining

Thirumurugan · 5 years ago `

Not sure what this complaint can help IFA community. Its just bringing to a bigger circle. No one is bothered about IFA.
If SEBI, Government thinks capital market and business can grow by killing IFA. Time will prove.

Utpal Mehta · 5 years ago

I agree with you.

Girish · 5 years ago `

Those who are in favour of Direct
Should also
Fight their cases Directly in Court
Build their houses directly without architects
do all other tasks directly,
why only restraining direct only to investments and insurance.
Be jack of all trades truly.
You need to understand that we are not commission greedy distributors, but a mentor and Arthmitra who stands with you always and give right advises.

Neeraj R · 5 years ago

i totally support the above post

A VINODKUMAR · 5 years ago `

Great.... Super ...

Rajesh Hattangady · 5 years ago `

There should be level playing field. While there would be different business

Divyeshkumar J Makani · 5 years ago `

congrats MFD univrrse for raising voice and showing truth to authorities . i think and belive that we are suffeing onlyr bec we never unite and raise voice on all india basis and we remain silent always.i hope together we can we wiil try to stop what is wrong and unfair and misleadinging to general public and investor. Great Keep it up Superb authorities must undrtstand the truth that ifa faterity is most tustwothy in this business as this is bread and butter. authorities will see this from AUM of IFA also large part of IFA is below 2 ctores and they are struggling for there livelihood. so thanks for eyeopening concern by MFD.

Rajesh Hattangady · 5 years ago `

While there would be different business, no one has the right to degrade other business models and spread false information. More so when SEBI has recently brought about cuts in TER.
The Company which has put this advertisent and misled, should be penalized severely for misleading the masses and also be barred from doing business by blocking the ARN and their licences be cancelled.
All the IFA are leading by example by embracing professionalism and adopting newer ways of serving clients, it's your turn SEBI and AMFI to send out strong message to the ones who are out to destroy the basic fabric of trust of the mutual fund industry.

Abhinesh kumar · 5 years ago `

SEBI should cancel this liecence to set a standard

B sai narayana · 5 years ago `

Super????

Vinita garg · 5 years ago `

Great job ..misleading clients is very easy by these direct ads ..but the clients runs away forever with no or wrong advise in falling market ..advisors r pillars

Joginder · 5 years ago `

Misleading advt must be banned n penalized heavily.

Naga · 5 years ago `

Super great job

Kunal · 5 years ago `

Now, SEBI , AMFI n AMC will be like monkeys - eyes, ear and mouth closed

Mohit · 5 years ago `

We distributors have to raise appeal regarding upfront commission because it is the company who should have to cut their own expense by deducting their own office expenses , AMC's expenses n etc . That will be the clear transparency in the system of mutual funds..
We distributors should have to appeal on national level by creating campings , social groups n etc.
It is because of us the company's revenue is increasing rapidly . It is because of us who tells the customer not to redeem money in down market conditions and advise them to stay on the pitch of mutual Funds..

Swaminathan · 5 years ago

Very good initiative. We all give our support

JANARTHANAN v · 5 years ago `

Yes, sebi saying it is regulator body, but what is amfi ...does it ear all amc' s concern or it act on behalf of some amc s or behalf of sebi. pls abolish amfi, why waste of investor money to that people. A organisation should create self employment but it destroying....?

S.VENKATRAMAN · 5 years ago `

Really good job done by Ramesh ji. I don't know why amfi and sebi keeping silent on this issue?

Shailesh · 5 years ago `

Jai ho......

Manish Bipin Bhatia · 5 years ago `

Excellent Work ,Ramesh Sir. Already IFA 's are struggling and now wrong image of a distributor earning 40 % commission.
These people when will they learn.

RAHUL Mehra · 5 years ago `

These routine media ads by multiple online players or even ET NOW is providing false information to it's readers and I truly believe that a very strict action must be taken to stop the flow of such fake ads and misleading a common man, and intact making the advisor a villan in the eyes of consumers, which is definitely not the case. Distributors are the ones who hand hold and guide the investors in turbulent times and help the investors reach their desired goal.

ganeshbabu mahadevan · 5 years ago `

Most of the time regulators close their eyes and now they should punish the media and publish the action taken also ban them from this business

Vishal Rastogi · 5 years ago `

I guarantee that there would be no action because it directly impact IFA's trust & thats what many organisation wants , As I have tried to make notice number of times that Registrar are selling products of different AMC's without any compliance.............it has gone to deaf Ears !

Ashok Kumar koul · 5 years ago `

The companies which are misleading the public for their own benefit in the fields of MF investments should be punished so that in future they will refrain for their misleading
Adds only for their own growth and least bothered for the invester.

Ashok Kumar koul · 5 years ago `

Ripudaman · 5 years ago `

Market Regulator SEBI & AMFI should take action against such companies that mislead Investors to invest directly.
Investors can loose their hard earned money by acting on such misleading Ads.
No such company should be allowed to mis use internet or social media to misguide Investors & at the same time to create a bad image about a whole professional Distributors Community.
Can we expect a quick & strong action against such misleading ADs & companies without any delay ?

Prashant · 5 years ago

Haha....you think they are not aware of this? What happened to PAYTM? What action was taken against their malicious advertisimg campaign? Who is AMFI? Don't they benefit from these campaigns? Are they not making extra profits because of these malicious campaigns and rules by SEBI?

Ratnakar · 5 years ago

They advertising 1% commission but if commission paid 0.5% and wat about any service provided by MFD

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