Days of commission-led-selling may never return

This is a stupid point of view. It overlooks the role of intermediaries. Without them, it is unlikely that MF industry will grow very big and even with 2% entry loads, it is reasonable rate of commission. They have to go meet people, educate them, induce them to doing it. Without the incentive, everyone is selling Insurance with 25% a year costs.

Even if the assumption is that MFs were missold ealier, the whole act of taking away commissions has deprived the country of the best investment option. Some guys will do it but they could have done earlier.

the whole notion that 2% entry load was bad is utter nonsense. It should be brought back and if possible increased so as most people in this country are part of India growth story. Someone who goes to sell has an incentive to do so.

In US, they have 5% up front commissions. We should think on those lines so that people are not induced into buying ULIPs with crazy expenses.

Luke

Accross the MF industry companies don't declare what will AMC fund management cgarge specific to a scheme rather say only only minimum & maximum regulatory prescribed charge.In the absence of specific FMC of a scheme,clients are not able to make necessary judgment & compare the schemes. FMC should vary with expected investment activity required on the of AMC and disclosed. It will be in the interest of investors if Regulator mandate this as done for Life Insurance products by IRDA.

On Japans market being up and if found to be so for the entire month then a possible inflow of the recent easing of hundreds of billions of print paper in the bank by the japanese govt after the Tsunami would be a cause? Really interesting ...

About 'China's demographic dividend being over'; i certainly disagree. It is a narrowed approach looking it that way. Its about overall population. Its not about age ranges. when one curtails popultion growth this supposed to happen.
Let me ask: If China dint curtail then what.. We would have comeout and said China has to import most of the resources to fulfill the UNBELIEVABLY GROWING needs. THe headlines would have changed?
I guess India will have a bigger challenge to face than the demographic dividend what we are taking about.

Regards.

dear all !
wellcome,nice to read good and practical views from you,but kindly remember the number of investors who do some home work before investing like visting such blogs may be very less.
so as long as indians either hate or blind trust things without CROSS CHECKING the information, mis selling will be a very natural thing.
I personally believe despite of any good regulators the product manufactures find NEW ways to benefit !
It is their business secret or a game like police and thief.
thanks for this good work and hope this message reaches to the needy.

For fast growth the MF industry has no choice but to become as investor friendly as possible.

distributors are blood sucking leeches who have managed to drive away lots of investors forever from mutual funds.so the ultimate losers are investors and mutual fund houses.distributors are laughing their heads off at both these suckers.

Re Silver, you say "What such a steep correction has done is that it has crushed the dreams of a lot of recent investors hoping to cash in on the silver rally. They indeed should have known better. Any commodity that goes up so fast, so soon is bound to be susceptible to bouts of violent corrections."

"However, does this mean it is the end of the road for silver? Certainly not. ........... After all, the metal is still ruling way below its inflation adjusted all time high."

On one hand you analysts get people to buy Silver and then sympathise with them when they loose money!
.... Wonder why you consider the "All time high of silver" as a standard, and that too adjusted for inflation. That high itself was a gross aberation, and people who must have bought then have waited for decades to even get that price nominally, barely! And the selloff again. Looks like the hedge funds etc are making suckers of the silver and other commodity investors.

Eq.Master Team,
After reading your article, I am prompted to observe as follows ;
Just as it is the difference of just "one degree-temperature " that boiling water (Liquid form) turns into steam (vapour), our MF Industry MASTERS HAD COINED A TECHNO-WORD AS "entry load " JUST As some Erudite Western Financial Wizards had coined the (now-dreaded)(but at that time very commonly used terms as the "COLLATERALISED DEBT OBLIGATIONS " etc etc.).
A sharp-edged instrument such as a surgeon's scalpel unless used with delicate expertise of an experienced surgeon, could cause more damage than the purpose of removing a malignancy from the patient's body ??

I hasten to conclude !!

I think that this comnission thing makes good headlines and off late an overhyped issue. Raked up when there is little to report. Investments in equity products are likned to market risks and are different asset class not compareable with commodity / FD's or realty. All have different risk levels and for any individual it is case of asset allocation depending on his risk profile. Commission has been so much discussed as if abolishing it has started resulting in profits / improved performance of MF schemes ?? I do not disagree with plugging the excesses in commission or anywhere but abolishing and making them unviable from the business point of view is something that needs some re-thinking. We are living in a society where many are keen on free bees / jugar /contact /to see some music programme or any such thing with free passes - do not want to spend 200/- To expect them to pay for services is very optimistic. No product sells without the seller making some money - infact barring MF's no one knows what banks make on our deposits / car seller makes on selling a car etc. People should demand service and pay for it. Do proper asset allocation - press should get over with negative bias for intermediaries - commission thing according to me is overblown and surely not a wonder drug for improving partcipation / performance of funds or anything. prformance will always be linked to market perfromance and no one can do anthing about it - therfore focussing on asset allocation is more important.