Anybody who comes on television says ‘there is a huge demand for infrastructure, so invest in infrastructure’ -brilliant argument, completely wrong. Experts, if you have forgotten your basic Economics, here is the answer: Demand = Need for a product + Ability to pay+ Willingness to pay. Let us look at another product: Pensions. Who […]
Here is a cut paste from the SEBI circular of what happened at their meet today: In order to help Mutual Funds penetrate into retail segment in smaller towns, the distributor would be allowed to charge Rs. 100 as transaction charge per subscription. No charge can be made for investments below Rs. 10,000. An additional […]
Here is a rejoinder from a FP…he/she does not want to be named. Subra read your blog, it is good…really good and sums up the situation. Let us look at it from the planner’s point of view. The client does not respect the planner enough (your argument that respect has to be earned is well […]
It is today easy for a person to get a visiting card with a qualification that sounds very good. Let us see if you can pick which one is a degree got with some effort and what is got gratis: Certified Financial Analyst, Certified Public Accountant, Chartered financial analyst, Certified Financial analyst, Certified Financial Consultant, […]
It is quite surprising that there is a BIG rich much higher stake financial stake life insurance industry which is being made to look like a villain. The Mutual fund industry is supposed to be a good one which charges much lesser than the life insurance industry. Amusing. Ask a distributor, it is far more […]
Continuing my dialogue series… Journo: Subra do you not think the life insurance guys get pampered? Subra: Why do you say so? Journo: 40% of the contribution as a commission is too much, do you not think so? Subra: What about products with 122% commission? http://www.subramoney.com/book-written-by-me/ J: Not possible in the financial service industry…..at least […]
He who sells more gets more commission. This is always true for any sales program, unless the product is a monopoly product and the manufacturer could not care. So when a small distributor of mutual fund (or life insurance) compares himself to a big distributor, it is unfair. If a small distributor (let us say […]