"We trust that you will avoid using harsh language and will refrain from making unsubstantiated allegations against individuals and firms. Your constructive feedback and opinions are very valuable to all of us in the industry. "
Read Chirag Setalwad in the interview next to this.Open ended is not a problem at all even in midcap space.
very informative
I congratulate Mr. Sunil Subramaniam for his straight talk and clear thought process. There can be debate but it requires lot of courage to put your point strongly and in clear terms. More and more such people are required for the sake of welfare of all participants of the industry.
The presentation was given a few hours back by Sunil Sir at Kanpur and he explained elaborately the need of this fund in an experienced investors portfolio. He also explained the effect of currency fluctuations and the benefit of rupee depreciation going forward 3 to 5 years from now. I would like to recommend this fund to my esteemed investors.
MF investments must be properly explained to investors. If investors are getting out after 3 years they MUST be explained the benefit of remaining invested. We already have a plethora of funds, why launch new Close Ended products ? WHy not bring more new clients in your Excellent Sundaram Select Mid cap scheme.
Remember energy opp fund for danger for investing in a closeend mf
1)"we need to trade off this cost versus a potentially higher trail on capital appreciation that we would have paid in a regular trail model." This is the key revelation by Sunil Subramaniaum.If an advisor sticks to only trail - he has a very high potential to get higher trail than the upfront! 2)The stats which are projcted on the average duration of holding period in open ended funds is low - becuase of the upfront commissions ( or innovatively re named front ended -discounted trail!) Once we stop paying this upfront all ailments will be settled. This is in no way a justifiable reason to launch the close ended funds. Its amply made clear by Mr Subramaniam , that only trail is good , and that Sundram is willing to provide full trail model for its advisors.Its a welcome move.
Completely agree with your thoughts, The upfront commission issue has been well explained by you, Im sure a lot of people will not agree with your views especially those in the media, wish that some more AMCs are more vocal about it
Very. Good. Idea. Sunil, an. Open. End. Product would have been. Ideal though. Good luck
Sir, thanks for showcasing our thought process in the right manner. If this is done by all AMCs then IFA will survive, or there will be Kolavery in their life.
1. I wish this fund was available in an open ended format, great idea. Global funds from amcs have added enormous value over the last 6 years. Three cheers to that. 2 one day I have a dream that AMCs give option to distributors who are happy to buy boring, old fashioned, open ended debt and equity products without any publicity -that amcs take us to a third option of an expense ratio sharing structure on all products as per international norms. That will be kolaveri truly