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  • News From Press What extra precautions are mutual funds taking after recent fiascos?

    What extra precautions are mutual funds taking after recent fiascos?

    Source: Economic Times Jun 15, 2019

    Debt mutual fund space is going through a rough patch. A series of downgrades and defaults have shaken the confidence of the extra conservative investors, who bet on debt schemes for marginally higher after-tax returns. ETMutualFunds.com spoke to some prominent fund managers to find out what are they doing extra to safeguard their as well as investors’ interest in this unprecedented bleak scenario, which started with a default by IL&FS. 

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    1 Comment
    Prashant · 5 years ago `
    Ab pachhtaye hot kya jab chidiya chug gayi khet. They already lost lots of money of investors while SEBI kept sleeping ( SEBI's job is to safeguard investors and they didn't do anything.). Also even after all this turmoil SEBI not doing anything but just quizzing AMCs so they have become quiz masters from regulator. It was clear that by not doing side pocketing AMCs are putting their own interests first over investors interest but SEBI silent on this as well. Now after all this turmoil UTI promoting advisor zaroori hai (but brokerages zaroori Nahi hai aur Woh to hum katenge hi kyon ki humein to zyada se zyada kamai Karni hai). They are the ones who advocated and who brought about direct plans in the industry and now saying advisor zaroori hai clearly means that direct has failed and also direct plans puts in investor's money at huge risk and in direct investors lose money and AMCs make money. It's high time for SEBI staff to come out of their A/C offices and go on the road ( which is their actual job which they have never done) and do an extensive survey about how many people have made or lost money in direct plans and how many people have been benefitted by them. Also transferring income of distributors to AMCs will lead to all this turmoil. AMCs were always profitable and making good money and it is SEBI's duty to not allow profiteering ( but they are in fact helping AMCs to maximise profits at the cost of crores of investors). It is high time this entire system needs to be probed by a neutral body and whoever is responsible for this should be punished and punished hard whether it is CEOs of AMCs or SEBI officials at any and all levels or AMFI officials.
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