Well Sebi says the fund industry will be able to charge 2.75% p.a. as fund expenses. Since you will bear the service tax, brokerage, etc. assuming that it will cost you about 3% p.a. is a fair call. This is charged on a weekly basis, so you need to take the impact of weekly compounding. […]
Our brain has not evolved as much as we think it has….so it makes us commit mistakes: Let us see what helped us during our hunting days: 1. Seek maximum information: if we see an animal in the distance, we HAD to know whether it was a harmless (but useful to kill) deer or a […]
The blurring lines between what is media and who is selling a product is really painful for the end user. Let us say I was running a website (and my income came from the number of people coming to my site, a.k.a. advertising) I have to say certain things.Imagine a website which says nasty things […]
He who sells more gets more commission. This is always true for any sales program, unless the product is a monopoly product and the manufacturer could not care. So when a small distributor of mutual fund (or life insurance) compares himself to a big distributor, it is unfair. If a small distributor (let us say […]
In the past I had done 3 articles calling the article ‘ranking trap’. These articles were written on 5th july, 20th july and 19th dec. Using past data to judge is height of “&^%$#*” – fraud or comedy depending on your point of view. Mutual fund ranking is a fantastic money spinning game for most […]
I recently read a small (about 80 pages) report on the Indian mutual fund industry. Most of the facts were well known, but still some were surprising. Here is a small summary of what I found interesting (the whole report is): This was a market survey of 750 investors, 850 Independent Financial Advisors, and 40 […]