If you read magazines, newspapers, etc. or watch the business channels you would have been convinced that people chase performance. Constantly ‘experts’ come on television and print media and say ‘people’ should not chase past performance. Actually articles and programs encourage people to churn or chase performance. Do you know what a rating does? It […]
Today we will se how the other (vociferous!) distributors will react: These are the smaller distributors who were getting 2% (atleast) to about 4% as marketing fee. However this money was coming from the client – and many clients did not know about it. However many distributors were giving all their ‘income’ back to the […]
Mutual fund loads abolished – let us look at how each constituent is likely to react: Investor: He is supposed to be the biggest beneficiary. Most of them will not know about it. A few handful of people (who had the option even earlier) can go direct. However to the best of my knowledge the […]
I recently received the annual report of a financial services company. Like all financial services company this company also has an insurance business, a financial distribution company, a mutual fund, …the works. A quick glance clearly shows that this company will NEVER make money in ANY of the abovementioned businesses during my life time. Surely […]
Recently one Advisor (and his associated fund house) have been pushing me to invest in a fund of funds. I am a little scared about a super supervisor over looking my funds. However Quantum Long Term equity fund was being pushed to me – really hard to invest in that fund. I decided to compare […]
Year: 2009 Month: July Mr. C B Bhave abolishes mutual fund loads. This event of abolishing loads by SEBI (on the mutual fund sales) there is increasing pressure on other regulators to reduce charges / fees. So the following scenario can emerge: IRDA has decided that all life insurance products – term, unit linked insurance, […]
One amazing rule of investments is called the ‘Golden Rule of Investing’. The Golden Rule says “he who has the Gold, makes the rules of investing”. If this post gets you nostalgic, you must have been born in the 1960s! Once upon a time there used to be a ‘ring’ in The Stock Exchange (you […]