I saw this strange article: http://www.moneylife.in/article/fidelitys-exit-a-slap-on-sebis-face/23340.html in moneylife today: I have always thought moneylife to be small investor's advocate. However this article seems to have confused me. I have given the comment given below to the article
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Can moneylife explain why a lot of new AMC's are opening up MF businesses in India and only Fidelity is quitting it?
The article seems to show that moneylife has some grudge against SEBI (and unfortunately small investors)
I completely disagree with moneylife. I feel the statement "Investment advisors are neutral and usually give unbiased information" is about distributors. I do not agree to it. I have frankly never met an eager distributor who was unbiased. They used to keep on asking people to shuffle funds, always recommending selling of a fund bought sometime back and using the proceeds to purchased upcoming IPO's. Removing entry loads stopped misselling to a very large extent. In fact the AUM of good AMC's are increasing with regular investments from SIP (which are mostly long term).
The fact that on removal of entry load the distributors (IFA) moved to misselling of ULIP is ample proof of their intentions.
What proposal does moneylife have to stop misselling of MF even in presence of entry load?
===========================================================
Can moneylife explain why a lot of new AMC's are opening up MF businesses in India and only Fidelity is quitting it?
The article seems to show that moneylife has some grudge against SEBI (and unfortunately small investors)
I completely disagree with moneylife. I feel the statement "Investment advisors are neutral and usually give unbiased information" is about distributors. I do not agree to it. I have frankly never met an eager distributor who was unbiased. They used to keep on asking people to shuffle funds, always recommending selling of a fund bought sometime back and using the proceeds to purchased upcoming IPO's. Removing entry loads stopped misselling to a very large extent. In fact the AUM of good AMC's are increasing with regular investments from SIP (which are mostly long term).
The fact that on removal of entry load the distributors (IFA) moved to misselling of ULIP is ample proof of their intentions.
What proposal does moneylife have to stop misselling of MF even in presence of entry load?
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