Well I have no connection with the regulator unlike some of my esteemed friends. The regulator does not know me, and I doubt if he knows of my existence. I doubt it.
So chances of him calling me for ideas about how to simplify the mutual funds for the common man are not just remote, it is impossible. Any way I do not like to do anything free, especially if it is for the government. When I deal with the government, one of the very senior people told me ‘Sebi is just a regulator, WE are the government’. Well, well.
# 1. Abolish the word ‘Monthly Income Plan’: there is no implicit guarantee of a monthly income, or of capital guarantee. These funds are just debt funds with a small element of equity in them. Is it worth investing in such funds? that is your call, personally I use it as a plug for a retired person / retiring person. Otherwise I do not like it.
# 2. Get a bunch of SEBI officials, IT officials, and others and make them read the prospectus. I will then quiz them about the contents. Pass mark: 50/ 100. I challenge that not more than 30% of the people will pass.
#3. Get 5 Relationship Managers to make a sales call, record it, and get 5 other Relationship Managers to comment on the video.
# 4. Get 5 Investors to calculate the return on a Dividend Re Investment Plan. Ask 5 sales managers to explain to the customers how it should actually be done.
#5. Get 5 sales managers to explain how to read a fact sheet – including what the standard deviation means, how the risk ratios are calculated, etc. I will be happy to attend that session.
After you implement these 5, I will give you 5 more ideas. What is the hurry?
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