Online investing of mutual funds

[ashii]

I am investing to MFs using ICICIDIRECt for 5 months but I don't have anything in print for statements neither from icicidirect or from mutual fund.

What I am going to submit as TAX saving proof at year end?

[kc_624]

Hai All...

U could get statement for MF investments form the following link.
Camsonline is authorized to sending MF statements.

Provide ur Folio number and AMC name.U will get instance statement by mail.Check ur bulk mail also(some times it goto bulk mail)

http://www.camsonline.com/statement.html

[ashii]

• Yes,But it say my email is not registered or matched with their account at Camsonline website,so they did not send me anything.
  
• I put a complaint with ICICIDIRECT ,so let's see what they will do.
  
• I call up Reliance mutual fund and they told me they can not send statements to me as address given to them is of ICICI Brokerage Ltd. and not my personal address so if they even send these statements they will go to ICICIDIRECT and not to me.
  
• Why these ICICIDIRECT ideats are giving their address in my MFs investments.any guess?
  
• SBI people are good,they send me my MFs statement by email in just few hours.ABN AMRO Mutual Fund people says they can not give to me.
  
  
  
  

Originally Posted by kc_624

Hai All...

U could get statement for MF investments form the following link.
Camsonline is authorized to sending MF statements.

Provide ur Folio number and AMC name.U will get instance statement by mail.Check ur bulk mail also(some times it goto bulk mail)

http://www.camsonline.com/statement.html

[yoogi]

Your future broker is the guy who will be very keen to help, as he is getting all the business. So ask his help.

I'm not familiar with Mutual funds, but even if you close your account with any trader, demat account (for stocks) is yours and folio number (for MFs) is yours. DP id will be different.

Its just that they don't reflect on your new trading account with another broker automatically. Choose your next broker and ask his help. I don't think you need an NOC from your existing broker to move to a new broker.

Keep posting as to how you moved so that next time someone comes here with same problem, he will be benefited from your experience.

[tellanand]

I actually asked more than one vendor on how he could help me move my investments out of Kotak Online MF platform and they all got back saying that it is a very cumbersome process and will take several months (apparently we have to convert everything to paper format and then reconvert to dematerialized format with the new agent).

Anyways - from what I know now, it does not look straight forward. SEBI - are you listening? SEBI has to do something about this!!!

- Anand

[tellanand]

BTW, look at the SEBI proposal on doing away the Entry Load for MFs. Please write to SEBI encouraging this proposal (email ID of SEBI is given in the message below).

Please find below some great news for individual investors, thanks to a circular by SEBI inviting views on removing entry load for direct investments, a practice that Quantum AMC pioneered a year and half back. In my opinion every investor must write his views to SEBI as per their circular, through the contact provided in the same.

best regards
Anand

--------- --------- --------- --------- -

Quantum's ethical practices may now be forced on an unwilling industry…

SEBI invites feedback on a proposal to waive entry load for direct investments in mutual funds

Direct-to-Investor, No distribution costs… We at Quantum have been speaking about reducing distribution costs since our inception. And we are glad that our rallying call is spreading. We are proud that our path-breaking approach could be a harbinger of the future of the Indian Mutual Fund industry. Quantum Mutual Fund does not impose entry loads on any of its schemes…and this could soon be the industry practice.

In most other mutual fund schemes, investors are normally charged an entry load to invest. Simply put, you pay the fund house for the privilege of investing in the scheme (irrespective of the returns). This entry load is generally not utilized in any way for the investors' direct benefit. As per general industry practice it normally goes towards paying the brokerage / commission of the distributor through whom the application was routed to the AMC.

But currently, all investors irrespective of the mode of entry are required to pay the entry load. Even if an investor approaches the fund house directly or invests via the internet without availing the services of a distributor, he is charged an entry load.

That doesn't sound very fair…

SEBI has taken notice of this practice and in the interest of the investors, is rightly considering a waiver in the entry load for "Direct Investments" . In short, any investor who does not route his investment through a distributor / agent / broker need not pay an entry load. (To read the SEBI document - http://www.sebi.gov.in/commreport/waiver.html)

But, hold on... this is only a proposal at this stage and if, approved, will come in to force at a later date; SEBI has asked for comments from interested people on the subject matter to enable them to take a final decision.

The regulator must be complimented for proposing the above-mentioned change that will benefit Indian investors immensely.

To make your views on the subject count, do send in your thoughts and comments to ruchic@sebi.gov.in or write a letter addressed to SEBI, Investment Management Department, SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400051 on or before September 12, 2007.

Meanwhile, while the industry has still to figure out whether they work for the investors or for their distributors, we suggest you log onto www.QuantumAMC.com and consider an investment in the Quantum Long Term Equity Fund – from a fund house focused on a low-cost investment vehicle for long-term investors.


Warm Regards

Devendra Nevgi
CEO and CIO
Quantum AMC Pvt. Ltd.

[yoogi]

I'm sure lots of ARN brokers will write to SEBI that their livelihood will be affected. but then, so far I have paid about 5000 rs as entry fees, and it would have become 8000 rs now had there been no entry fees.

<B>In a falling market, everybody else makes money except the investor!.</B>

To top that, my MF agent does not even know what bench mark index is. He in fact promised that my money would become 10 times in next 5 years based on last 5 years performance. I had to educate him on that subject.

The only argument against this is:

All investors must be treated equally. Someone (in a village for example) does not even know what a mutual fund is and he is brought to the funds by brokers. The funds cut and entry fees and pay the broker. We have an unfair advantage over the poor investor that our investments are not levied a entry fee.

So there shall be no entry fee at all. The funds should increase the holding period to minimum of 18 months for exit without fees, pay the brokers/advertisements from their annual recurring fees.

[tellanand]

Originally Posted by yoogi

The only argument against this is:

All investors must be treated equally. Someone (in a village for example) does not even know what a mutual fund is and he is brought to the funds by brokers. The funds cut and entry fees and pay the broker. We have an unfair advantage over the poor investor that our investments are not levied a entry fee.

So there shall be no entry fee at all. The funds should increase the holding period to minimum of 18 months for exit without fees, pay the brokers/advertisements from their annual recurring fees.

Have to see how this is going to pan out eventually.

But I disagree that this will be unfair to others. I think it depends on how we look at it.

For instance, if we are looking for a house for rent, then we have two options: look for a house-rent broker OR hunt for direct owners of houses. In the former case, the broker get a commission and thats how he makes a living. The the latter case we save on commission because we directly go to the owner.

I think the practice of dual pricing exists in other markets even with in India - so why not Mutual Funds? I think both the channels (direct and broking agent) can co-exist in Mutual Fund Industry.

best regards
- Anand

[yoogi]

Another bad practice by MF industry is the recurring fees levied on index funds. Index funds are supposed to be just account management and not active management. So management fees should be kept at 1%. But HDFC charges 2.5% for that, exactly the same as actively managed funds.

Another problem is that there is no ELSS index fund. I would rather trust a mathematically calculated index than a fund manager, because fund manager can make mistakes but stats or math doesn't. The index is something we can watch on a daily basis and we don't have to worry about which stocks fund manager bought or sold.

The industry also should offer sector-less funds. ie, if I want to invest in all stocks but technology, then there is no option. This will be interesting to a person who is employed or has his assets on a particular sector.

[Vicky78]

The mutual fund industry need to make money. I would let the market forces decide the entry/ exit load/expense ratio rather than SEBI.