Once a bureaucrat, always a baboo(n). That does not change. Recently our MF regulator made a statement ‘the needs of the consumer are more important than that of the persons who are doing this as a business’. I wholly agree.

“We should worry more about the investors than about those doing business of mutual fund distribution. Globally, the mutual fund is moving towards direct buying. Anyway, IFAs account for less than ten per cent of mutual fund industry’s asset under management,” Sebi Chairman U K Sinha said here today.

Today you do not need the IFA, so he should be destroyed. Similarly you should also make sure that banks are not allowed to sell any financial product from its own premises – fair enough, right?

Well, sir, I am not getting into that….but something else.

If, really, you have the well being of the investor and heart, you should allow all the important and significant mutual funds in the WORLD to start operations in India. So Vanguard with its 0.15% amc charges should be allowed to start business in India

Sir let me enumerate:

• All mutual funds registered somewhere in the world should be allowed to start in India IMMEDIATELY
• The minimum capital requirement for being a sponsor should be about 10 crore only
• An SRO should be created with manufacturers, distributors, Cams, Karvy,..and all other stake holders
• Re-think and significantly improve the Investment Awareness Program
• Have different classes of products with different charges OR have only one product – with no charges
• Force all mutual funds to sell online and keep a penal charge for going off line
• Make NISM an exam certifying company and not a competitor to other education providers
• Make all index funds automatically into ELSS
• Put a cap of 1.25% on ELSS funds and index funds
• Put a cap of 1.3% cap on Pension funds – anyway they have a 70% debt components
• Make an attempt to understand TER and control TER
• Allow free entry and free exit of AmC
• Once you have approved the amc, do not bother about over-seeing every IPO
• Stop micromanaging – you are disastarous
• If India is less than 1% of world economy Indian investors should invest in an index fund like MSCI not Sensex
• When the Vanguards come do not team up with the Bombay Club and see how to keep the old fatsos from collapsing
• If you really have the common man’s interest in your heart, regulator should discuss his portfolio and pension
• Equip yourself to understand how secret profits are made by fund managers and fund houses
• Abolish kyc except for cash transactions
• Launch a drive to trace investors who have monies sitting in mutual funds – tracing is not something is EVER DONE
• Show some evidence of taking action against the rich and powerful