There is a trail commission that the AMC will pay the bank for routing your investments to them. It comes from your funds under expenses. This is fair enough.
However, there are a few banks (like ICICI) that take the trail commission from the AMC and also charge you per SIP (close to 33Rs) for passing your money to the AMC. All they do is connect you with the AMC and charge both the parties for that!
Is this lawful? sure.
Is this moral/ethically right to do so? Maybe/maybe not depending on which side you are on. I would say a big NO. When asked about these charges, I got a 1-line response from them:
"The transaction charges levied on transactions are clearly updated on the website www.icicidirect.com and have been decided post internal deliberations."
Go and pay the AMC directly. You may have to make 1 trip to fill out the paperwork and then you will be all set. Good luck.
However, there are a few banks (like ICICI) that take the trail commission from the AMC and also charge you per SIP (close to 33Rs) for passing your money to the AMC. All they do is connect you with the AMC and charge both the parties for that!
Is this lawful? sure.
Is this moral/ethically right to do so? Maybe/maybe not depending on which side you are on. I would say a big NO. When asked about these charges, I got a 1-line response from them:
"The transaction charges levied on transactions are clearly updated on the website www.icicidirect.com and have been decided post internal deliberations."
Go and pay the AMC directly. You may have to make 1 trip to fill out the paperwork and then you will be all set. Good luck.