Why Small Mutual Fund Agents Are Feeling The GST Squeeze

It is very clear that SEBI wants to remove distribution from mutual fund to help fund houses to save money and increase the expense ratios later. And they want to prove that RIA is a successful model which actually is a failure. In our country investors ask for a passback. How in the world a 360 degree reverse of that that is charging fees succeed here? SEBI officials should come out of their A/C cabins and go on ground asking people every nuke and corner of our country and do an extensive survey and publish it first before deciding these absurd regulations. If SEBI wanted to safeguard investors than why Mutual fund employee without an RIA registration can still recommend a scheme to clients and why mutual fund can offer a direct scheme which is s complete conflict of interest? Distributor normally sells many fund gouses products best suited for the investor whereas fund houses do not. Even RIA are not ethical in many instances their licenses are cancelled. Will SEBI own them and will they pay for their misselling since SEBI is giving them license to recommend? If AMCs missell meaning they bring closed ended funds they are ethical and SEBI approving a product is not misselling but distributors selling are missellers? Banks and brokers are the biggest missellers in our country and they should not be allowed to sell any third party products but should focus on their business and NPAs first and get their house in order and save their banks before they get bankrupt which is their actual responsibility rather than misselling third party products and earn lost money through our pockets and giving it to the defaulters indirectly. BANKS SHOULD NOT BE ALLOWED TO SRLL TBIRD PARTY PRODUCTS.

WHAT PRASANTH SAID I 100%AGREE.FIRST MISSELLERS ARE,SEBI,AMFI AND BANKS.

Further, there should be a system of providing valid explanation infrom the concerned fund manager/ fund house where one performing fund gradually shades its ranking ang goes into below avg category.In such cases the AMC people shift the responsibility to concerned agent before investors as if agents are not pro-active.

Its really a shock when we come to know our promoters are turning our killers, As they in one instance creating a situation for choosing us and in other instance possess thousands of regulations to resist us to grow.

Actually all mutual funds & AMCs are fleecing IFAs by deducting GST from distribution commission and at the same time availing Input Tax credit of GST deducted and thus getting benefitted by reduced GST liability at their end. IFA community must unitedly fight against this malice and complaint to finance ministery, GST council, Revenue Secretary and file a case with anti profiteering authority, Director General of Safeguards.