It is funny that to be in any business you need to have some qualification. Let us take the mutual fund business for example. To be the Asset management company – you need to have 5 years of track record of some financial business. You need to have a networth of Rs. 10 crores (to […]
Many of our regulators – IRDA, TRAI and now SEBI may all be having good intentions, but the way it is being expressed is rather amusing. Now SEBI is saying that an Asset Management Company should have a net-worth of Rs. 50 crores. This means pushing the small funds out of the market. One has […]
If you thought Madoff scandal would serve as a reminder against buying shit financial services you thought wrong. Simply wrong. Sadly I know some of these ‘event managers’ , wealth managers, brokerage houses…and others who organize such functions. I also know many rich people who attend these functions as well as wannabes who attend them. […]
Have you wondered why doctors are not really rich? They do earn well. Even in a lower middle class suburb of Mumbai they do charge reasonably well. For example a specialist (pediatrician) doctor practicing in Navi Mumbai would charge Rs. 250 for a visit. This is not too bad for the 20 minutes that the […]
On one side Mr. Swarup says financial products should become cheaper. He also says that the customer should pay for the advisor’s services. This is a great move the person who is getting the services can choose how much to pay. However the IRDA has one funny (weird) condition in its armory. There is something […]
As a business if PMS has to sound reasonably profitable the minimum size of the portfolio should be at least Rs. 10 Million (Rupees one crore). Why am I saying this? Well if I have to meet a client 2-3 times a year, take his phone calls 12 times a year and get my staff […]
PMS accounts have drawbacks too. For starters, there are all kinds of money managers: good, bad, mediocre, and cheats. Clearly, it’s not worth paying for anything less than the best manager you can find. You cannot also find out who is good and who is not on any unbiased platform. There is no way how […]