Mis-selling of mutual funds…
There is mis-selling in mutual funds. True or False?
Frankly I do not know what is mis-selling so I cannot comment. This is what a rational person is supposed to say.
But our powerful mandarins say yes, yes…we will legislate against it.
Will the SEBI please stand up and come out with a white paper and say ‘What is mis-selling?’ . Is selling life insurance to a 55 year old bachelor whose parents are dead mis-selling? I do not know I am asking!
If I promise a man 15% p.a. compounded return after 20 years, but find that it has grown at 12% for the past 2 years, amd I mis-selling? Asking guys, asking?
If I say ‘Dividends and Capital Gains will always be tax free’ – is it my foolishness or the client’s foolishness? Hmmm I do not know.
So make a statement – “There is too much mis-selling, this has to be curbed” – a motherhood statement and Mint reports this in the first page, I need somebody to tell me what this article means…plz…
http://www.livemint.com/2011/03/24002049/Sebi-plans-new-rules-on-MF-sal.html?h=B
Muthu
The way in which things are going on, there may not be anybody to sell a mutual fund. When no one sells, how can there be mis-selling?
Wonderful way to curb mis-selling by eliminating selling!
If Pithamaha says he is unable to understand something, what to talk of other mortals?
Some times there are answers to questions and most other times questions beget only further questions!
Naveen
Hi,
When I read the article ,same feeling came to my mind. SEBI has to be clear what they want to do? They lack direction and dont know what to do. So every policy we are seeing is in reaction to something. Hope the investor is saved from all this. Too much of negative thoughts and no visionary to guide it.