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higher fund maint. expsNo. of comments:3 rahul kulkarni, virar-mumbai, 38875 On 15-Apr-2014

This is reference to article published in yesterday's economic times by Mr. dhirendra kumar of value research on higher fund maint. exp. Actually You don't need an expert to tell this. Earlier also thro this forum I had raised alarm for this querry two to three times. I feel mf companies are charging higher fund maint. charges. This is eating yield. If these so called companies are ready to work for just 25 paise in nps why there is so much load for mf schemes. Lower maint. means higher yield to customers means repeat business. If any scheme has more than 10,000 crore corpus and scheme charging 1% excl of brokerage means company is getting 100 crore from just one scheme. This seems too high. Instead if they lower exps ultimately it will increase nav of scheme and if end user gets benefit, client will invest again. This is particularly relevant to debt mutual fund schemes.

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Comments Posted

rahul kulkarni ARN NO :38875 virar-mumbai, 27 Apr 2014

Hello requesting all to put a serious thought on this issue. Instead of keeping two options (regular & direct) - AMCs should keep only one option with lower expense ratio. Lower exps means higher yield to investors. If reliance is quoting just 1 paise or other companies are charging lower rate to NPS, then why r these companies are charging more fund maint. charges to mf schemes ?

Rajiv Jhaveri ARN NO :Jhaveri Investments MUMBAI, 17 Apr 2014

What is the meaning of empanelment? If AMCs are paying commission from investors pocket, empanelment is meaningless. Meaning of commission is that it is paid out of the pocket. In no industry or market commission paid, is charged to buyer by adding in the bill. Only in our market commission paid, is charged separately in TER. If AMCs are ready to manage funds in such a low charge then there is no need of direct plan. Direct plans can be merged with Regular plan with low expense ratio. Thereafter commissions can be paid from the pocket without charging separately So then There will be saving for all 100% clients. Now only corporates & some informed clients are able to save in current situation. If direct plans are stopped, distributors will not be in unfair competition with manufacturers.

rahul kulkarni ARN NO :38875 virar-mumbai, 17 Apr 2014

Please read today''s business newspapers (17th april 2014). Reliance mutual fund has quoted lowest bid for managing nps. Just 1 paise per 100 rupees. If Reliance is quoting such a low rate means they are ready to work on such low rate. I request sebi to remove brokerage % from fund maint. expenses. Bring "Regular" schemes also at par with ''Direct''. Let them pay us from their pocket. (not from investors pocket). As earlier told lower fmc means higher yield to clients.