Remove broker from existing SIP

[mayurkotlikar]

Hi,

I have couple of SIP running from 2 years in different Mutual funds.
Due to some reasons and couple of different instance, I am not happy with the quality of service of my broker\agent.

I dont want to stop my SIP, but I want to remove my broker from the future installments.
The reason is simple, I know my broker gets some money when I pay each installment every month.
I am not willing to pay, as the service is not upto the mark.

What could be the way? How can I remove the broker from the SIP? The point is not to save money to him, its quality that is more important.

Please let me know

 

[praveen taneja]

Hi,

I have couple of SIP running from 2 years in different Mutual funds.
Due to some reasons and couple of different instance, I am not happy with the quality of service of my broker\agent.

I dont want to stop my SIP, but I want to remove my broker from the future installments.
The reason is simple, I know my broker gets some money when I pay each installment every month.
I am not willing to pay, as the service is not upto the mark.

What could be the way? How can I remove the broker from the SIP? The point is not to save money to him, its quality that is more important.

Please let me know

Bro for that u can go to AMC of the company in which ur SIP is going on just fill a SIP stoppage form and deposit a new application same day in that u wont be charged entry load too and if u are angry with him u can fill redemption form too and when u get cheque you can again deposit urself w/o any entry load:thumb:

 

[avijit]

well changing the broker code for your investment is really a simple process. you just need to give a letter mentioning your folio no. & state that you want the broker code changed to "direct". just sign the letter and deposit the same in any of the investor service centers of the AMC or with the registrar of that AMC, eg, CAMS, Karvy etc.
and to answer your quiery regarding how much the broker gets, it is anything between 2.10% to 3% (on every installment)or even more depending upon the mf house. there is absolutely no reason for you to keep paying the broker 2.25% each month when there is an option to get 100% of your money invested through direct route.

 

[startrade]

I gave the letter to CAMS in Delhi on plain paper and they changed the broker to "direct" and now no entry load is charged on that folio.

There is no need to stop the SIP and start a new SIP.

 

[mayurkotlikar]

Thanks a lot friends !!

 

[abdriver2000]

I am surprised that CAMS changed the broker code to direct. Technically, your broker is still applying for SIP on your behalf. I think restarting SIP is the only sure-shot method.

Please correct me if I am wrong here.

 

[avijit]

I am surprised that CAMS changed the broker code to direct. Technically, your broker is still applying for SIP on your behalf. I think restarting SIP is the only sure-shot method.

Please correct me if I am wrong here.

well abdriver, the broker's duty ends with submitting your application with his code on it to the mf house at the very start. thereafter the broker does nothing. what happens is the auto debit or standing instruction form that you filled up along with your application form gets sent to your bank. the bankers authorize the payment & that gets debited automatically from your account every month electronically. so the broker gets his cut every month while doing nothing just because he sourced the investment.

 

[mrindia]

I am surprised that CAMS changed the broker code to direct. Technically, your broker is still applying for SIP on your behalf. I think restarting SIP is the only sure-shot method.

Please correct me if I am wrong here.

I also agree with you. Perhaps, starting new folio as "Direct" mentioned in broker's code column will solve the problem.
mr india

 

[praveen taneja]

I am surprised that CAMS changed the broker code to direct. Technically, your broker is still applying for SIP on your behalf. I think restarting SIP is the only sure-shot method.

Please correct me if I am wrong here.

yes bro u are right entry load is saved but trail is still of broker:lol:

 

[avijit]

yes bro u are right entry load is saved but trail is still of broker:lol:

no, once u change the folio to direct the broker stops getting anything from that particular folio, even the trail commission. it is totally unnecessary to stop an ongoing sip just to change the broker code.