No Load benefit given to Investor in Indian Mutual Funds : will it actually benefit the investor?
Posted by admin in Finance Tuesday, 30 August 2011 04:32 2 Comments
With lower costs of investing, Investor at the outset tends to benefit from this move. Add to it the Negotiating Power he has with the adviser.. A boon. But, if the distribution houses move to other products, it may hit the accessibility of the product by investors and also may result in the adviser looking at alternative avenues of investment for the investor. In this background, in your view, do you think the move will help the investor and alternatively, if he has to benefit should he change his approach to investing.
really a tough one to answer vishy , but i think the investor is not going to be much benefitted by this move of sebi. u raised the issue about the negotiating power of customer, but this power only comes if u have good knowledge about these schemes so only knowledgeable investors are going to gain and that too not much there is a doubt about the commission. so ultimately the investor on an average is at loss. furhtermore no support will be provided by the agent since in one time commissions this would be obvious. i think with this move by the sebi investors should buy schemes directly from the amc’s or buy online if they were to benefit. that’ should be the only change in the investment style bye.
Agree fully with JITU