Amazing how Sebi even under Mr. Sinha is trying to increase costs for the Mutual fund industry’s investor…
there is no doubt that the mutual fund industry is suffering from the after effects of Mr. Bhave and Don Quixote. However when Mr. Sinha came the industry was (perhaps) hoping for some relief. Well what has come has come out in a round about way and that is only fair. If entry load was removed as a ‘good for the end user’ feature it will take a brave man to reverse it, so Mr. Sinha will not.
However SEBI is now making a great attempt to ‘inform’ the investor that he can hold the units in a demat form. This is a joke – anyway the units are NEVER held in physical form. I would want to demat something which I can ‘lose’ – like say gold, equity shares, etc. WHY THE HELL would i hold valueless ‘no. of units statement’ in demat form.
Well one of the important things a regulator does is in the name of the ‘common man – investor’ INCREASE THE REVENUES FOR THE players. So if you buy ‘units’ through a broker, you will end up:
1. paying brokerage
2. pay demat charges – sometimes going in, some times going out
3. some money will have to the stock exchanges, correct?
4. as volumes increase there could be some ‘service tax’ on some of the services, correct?
LOL ..so if you increase the number of intermediaries …IN THE REAL WORLD the price goes up.
In regulator language, the ‘investor’ becomes safe.
Long live regulators! without them what would bloggers write about?
solution: put all your money in PPF. RIP
ps: do you get a feeling when Nomura and Goldman Sachs enter….industry ki vaat lagti hai? LOL
what will suffer: client’s net return.
why: costs will go up. …
God bless. Sorry for spoiling your weekend. Could not resist commenting on yet another stupid SEBI ad.
PS: what about a communication class for the shenanigans at the regulator’s office?
No, I am not looking for work, Sucheta Dalal and Debashis should do this work shop. Of course they may come out pulling their hair. Debashis does not have too much to pull, though. LOL
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