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veri gud article
Very correctly point out Mukesh Bhai - when one makes investment portfolio of customer, focus is more on alpha returns, then risk mgmt. Going ahead risk, mgmt will be as important as generating good returns.
Dear Mr. Sunil Shah, it would be our pleasure to have IFAs like you join us at FIFA so that such issues can be highlighted, debated and then put forward to the concerned authorities. Please visit www.fifaindia.org for membership details. With regards to your query, I am not very sure that the AMCs had anything to do with the current KYC regulations. This has come from SEBI and is applicable across all SEBI registered intermediaries.
FIFA had to fight for IFAs who have diligently done KYC with all Original docs shown to AMC officers and then got KYC ok status. Now each AMC is trying to safeguard thier AUM by this new rule wherein other AMC need to get personal info like Gross Income Networth in , for investing 5000/- but big Fish like PEP are left untouched today. This Risk is very harmful for Mutual Funds
One argument against the usage of complex risk mitigating tools is, the advisor has to understand these tools really well first. The more complex the product, the more prone we are, for errors of judgment of such products. We know that it pays to keep it simple.