wealthforumtv

after banning entry load this is very small tip to the IFA it should be continued

Transaction charges of just Rs.100 or Rs. 150 does not make any difference as far as benefits one investor is getting from an IFA. I personally feel as an IFA that investment of an investor must get adequate return so that he /she will be happy. In that sense i understand that IFA should manage the MF portfolio investors in such a way that investor will be happy always. It will be a great service as well as a great social work. IFA should adopt such professionalism,dedication and sincerity as to prove his worth to the investor so that the investor never think of investing directly.

Transaction charges of just Rs.100 or Rs. 150 does not make any difference as far as benefits one investor is getting from an IFA. I personally feel as an IFA that investment of an investor must get adequate return so that he /she will be happy. In that sense i understand that IFA should manage the MF portfolio investors in such a way that investor will be happy always. It will be a great service as well as a great social work. IFA should adopt such professionalism,dedication and sincerity as to prove his worth to the investor so that the investor never think of investing directly.

investors are always happy when:- get all the necessary service, all educative information, do not ask service charge(always and everything free)( created by the lic agents and the postal agents). no service is free. but, investors seldom understand. amfi, sebi, amc all together put the small IFAs life become miserable and for livelihood look somewhere else attitude not doing any good to industry as well as to IFA.

Rs.100 as Transaction charge is nothing to us but it is like throwing One Rupee Coin at a beggar. We, Professional IFAs, have choose OPT OUT Transaction charges. We have to maintain our prestige and keep ourselves in high esteem. We must not bow ourselves before those AMCs who are still refusing to release us HIGHER TRAIL BROKERAGE MODEL. Majority of AMCs are still hesitating to release us HIGHER TRAIL BROKERAGE/ONLY TRAIL BROKERAGE due to lot of pressures from their intermediaries especially banks & corporate brokerage. The present Special Incentives (which is still offered by AMCs and is legalised by SEBI) is no different from upfront brokerage. Such Special Incentives have to be banned.

I am really agree with your view.

I FULLY AGREE WITH.

transaction charges should not be abolished, but the amc can definitely pay under some head

Dear All IFAs, as Mr Raghuramamam rightly said Transaction Charge is a BAIT which AMCs using to transfer crores of AUMs from IFAs to their desired plans & schemes (Hope IFAs know what I mean). Do not fall into it. It is very clear that AMCs are not interested in giving everyone a higher full trail only model, why? We all have to think ourselves. AMCs know that trail only model is more revenue generating for IFAs. AMCs will keep on coming with tempting upfront commission offers which will surely reduce their trail commission offer. We have to keep on asking for a higher trail only model and a ban on all types of upfront payments. My dear friends, the no. of IFAs who ask for a higher trail only model is increasing at top gear. That automatically means some of the IFAs are still befooled by AMCs. Do you fall under it? Think & act soon. Those who need a revenue calculation of trail only model may pls email(samkoshy.cc@gmail.com).

I agree. Transaction charge should be abolished.

The proposal of the wise IFA is very nice, AMC''s should bear the transaction charges from their account itself.

SINCE OPT-IN / OPT-OUT FACILITY HAS COME. VARIOUS CLIENTS HAVE STARTED ASKING INCENTIVES TO BUY THROUGH AGENTS. SECONDLY, IT HAS BECOME TOUGHER TO GET BUSINESS, AS INSTITUTIONAL AGENTS ARE OFFERING HUGH INCENTIVES, WHICH IDIIVIDUAL AGENTS CANNOT AFFORD, DUE TO DIFF IN BROKERAGES

By providing option to levy transaction charges, discrimination has been created among st distributors. Many clients are still used to taking cut off from the the distributors brokerage for investments in mutual funds. Therefor in view of the reduced percentages of commission from the AMC''s for normal distributors, the option of levying transaction charges should be removed and its application should be made compulsory for every investor However its application in case of investments via SIP''s should be reviewed.

I feel transaction charges should be abolished.

I agree with this. Transaction charges should be paid by the AMC. at least for the liquid funds.

I m agree with you

Transaction charges is good for the distributors who is unable to charge fee from the investors and one of those is myself. It should continue.

I opted out the transaction charges right from the begining because it doesnt make sense to tell investors once that we will charge fee and thenafter ask for transaction charges......if we want to swift our business on the fee based model........transaction charges should be totaly ignored........Let the investor pay to distributors for services they are taking.

Very valid suggestion

I also fully agree that the charges what so ever should be borne by the AMC as a marketing/selling expense and there is no point in showing different NAVs for Direct Investors and through distributors.

plz conform to us one think, if any customer withdrawal his investment before one year or zero exit charge period then AMC''s will charge amount from customer and also reverse the brokerage from broker. Then why they not distribute these amount to distribute in between current holders, plz conform where is go all those amount.

I AGREE WITH IT. I ALSO OF THE OPINION THAT TRANSACTIONS CHARGES SHOULD EITHER BE ABOLISHED OR IT SHOULD BE PAID BY AMC TO PROMOTE REGULAR MF BUSINESSES.

After abolishing Entry Load, Regulator has allowed "Transaction Charges" of Rs.100/- Then it should be applicable to all Transactions and all Distributors. (just like earlier Entry load period) There should not be any Opt Out Option at all under Regular Plan. This is the most suitable and workable solution. 1)It will definitely take care of Small Distributors. 2)There will be uniformity amongst distributors 3) The process will be simpler and uniform 3) Rs.100 are far lesser than the Entry Load of 2.25 %

Dear Fellow IFAs , This transaction fees of 100 Rs is a BAIT that the AMC''s have thrown at us( I had detailed this in my earlier messages too). In the name of " No transaction FEES" AMC''s and NDs have coolly diverted a good chunk of AUM from our share. The real benefit will be by taking full and perpetual trail.Keep asking for this. And encourage fund houses which give full trail model commission , where ever , there are good schemes.That said , its good that all IFA''s shall stay opted out of this transction fees option. We shall discourage all forms of upfront commissions.As this is a kind of upfront, I earnestly seek all my fellow IFAs voice to ban this altogether.

I agree that the transaction charges, whatever pittance is paid, should come from AMCs and not from customer, irrespective of whether it is opt-in or out. This appears somewhat like railway reservation charges. The compensation should ideally be percent based, wherein the % could go down as the ticket size of investment increases. But, with the AMCs on a self-destruct mode along with their mentor, it seems unlikely that wisdom will prevail or they will go for a course correction. Direct schemes are one such example where they are driving backwards without a rear view mirror.

Now Market has started talking about RIA,difference between direct and Advisor NAV.Its time to think of that and not about transaction charges.we need to raise and decide our role,business model and what all kind of value addeds we can offer to investors to retain them.we are entering a quality path and soeither needs to decide a distributor role or a advisor role.If we want to play a Investment advisor role,then need to forget the transaction cost of Rs.100 and all and need to attract and retain investors and make them pay fees.If not need to go retail and ask for transaction cost and convey them the brokerage that we get.whetever way its we need to be transparent is what SEBI says.Now things are beyond our control.rather than changing the challenges lets challenge the changes.Rather than cribbing on things that are external,its big time to think as to what we can correct or refine ourselves internally to the new trend.Arise ,Awake and stop not till the goals are reached!

Transaction charges is totally a wrong concept. Either transaction charges should be the percentage of INVESTMENT amount or entry load should start. Investors are loosing the upside of market. Only huge entry load and exit load are going to restrict investor to redeem . If people don"t redeem then definitely going to create wealth and long run trust to industry will established.

I think, every IFA should opt in for transaction charges. In my opinion the advantages of transaction charges are (1) We can make the client understand, that services of an IFA are not free and he has to pay some nominal fee for that. (2) This way we clearly communicate that we are not charging upfront fee on the basis of investment amount, we are charging a flat Rs. 100/150 irrespective of investment amount, which is just our fuel expenses. (3) By asking the client to pay a nominal fee for his investments, we can set the path to the next level i.e the Fee Based Advisory model, which is the future. We can easily determine, who can pay for our advice and who can not. In my opinion, this is the best way to decided what quality of services our client deserves.

I agree with you, Either it should be abolished or not to be shown in the statement

I feel transaction charges should be abolished or it should be paid to the distributors by the AMCs as it is a very small amount. because retail customer not like the deduction.