News From Press Direct investment in mutual funds is not as cheap as you think

Direct investment in mutual funds is not as cheap as you think

Source: Livemint Nov 13, 2018

Asset management companies (AMCs) raised fees for those who invested in direct mutual fund plans as they sought to offset revenue losses for having had to reduce charges in regular mutual fund plans that were sold through distributors, circumventing the spirit of rules introduced by the markets regulator to reduce the cost of investing.

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2 Comments

Vikas Gupta · 5 years ago `

“Banking channels, corporate distributors’ commissions remained untouched,” said the MFAC in its report.
Its very unfortunate to read the above report that AMCs are compensating Banking Channels & Corporate Distributors & reducing IFAs' structure drastically. I am unable to understand the role of IFA Associations in this context.

Sudhir Kumar Mishra · 5 years ago `

I do agree with Vikash ji.An investor has ter deducted and the difference between regular and direct plans is 100 points for distributor's commission but myself get 70 points.where is the remaining 30 points? AMC should either give back to the distributor or compensate the customers.

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

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Lead to poaching of clients

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