The body will form a sub- committee for reviewing the process.
In the recently held AMFI AGM, it was decided that a sub- committee will be formed to look at implementation of the recent SEBI directive to launch direst plans. Many AMCs and advisors express concern about the possible impact of the introduction of direct plans.
If required, the sub-committee will approach SEBI with its suggestion on implementation of direct investment.
According to the new SEBI rule, AMCs will have to offer a direct plan in their schemes from January 1, 2013. In equity funds, such direct plans could be cheaper than regular funds by 50 -75 basis points. This has left many distributors worried.
“Investment planning and advisory are key components of the investment process. Side stepping the advisory service and investing directly might help investor to save a few basis points but lead to wrong decisions where the final cost may be much higher,” said Ashok Nag, IFA from Pune.
Mukul Deshmukh, IFA from Kolkata feels investing requires expertise. “Most of the Indian investors are not aware about the nitty-gritty of specific funds. So, for them to decide which fund suits their portfolio is difficult. Therefore, investing directly will not help investors to make the correct decisions,” said Mukul.
