Help :: ICICI Direct cutting extra Rs 33.09 for each SIP :(

[URPradhan]

Hi Friends

I have now trapped into the nets of ICICI Direct tricks for Mutual Fund transactions. Now I think I have made a BIg mistake by choosing ICICI Direct as the trading gateway.

Earlier upto Feb 2010 (my last SIP for earlier funds), they were NOT charging anything monthly. Means if I had a SIP of Rs 2,000/-, only Rs 2,000/- was getting deducted from my bank a/c.

But now I have subscribed 5 MFs through SIP route. And now they are deducting extra Rs 33.09 for each SIP contribution for each fund every month. So as I have 5 MFs I'll be paying transaction fees of Rs 33.09 x 5 = Rs 165.45 monthly and Rs 1985.4 annually. Its BIGGEST cheating.

Now, please suggest me, if I want to continue with the already subscribed funds, but want to pay money directly to the fund house, Can I do that ? I want to avoid ICICI Direct deducting my money from my a/c. Else I'll be forced to close the MFs and have to buy directly from the fund house.

Please help.

 

[Nava]

Hi Friends

I have now trapped into the nets of ICICI Direct tricks for Mutual Fund transactions. Now I think I have made a BIg mistake by choosing ICICI Direct as the trading gateway.

Earlier upto Feb 2010 (my last SIP for earlier funds), they were NOT charging anything monthly. Means if I had a SIP of Rs 2,000/-, only Rs 2,000/- was getting deducted from my bank a/c.

But now I have subscribed 5 MFs through SIP route. And now they are deducting extra Rs 33.09 for each SIP contribution for each fund every month. So as I have 5 MFs I'll be paying transaction fees of Rs 33.09 x 5 = Rs 165.45 monthly and Rs 1985.4 annually. Its BIGGEST cheating.

Now, please suggest me, if I want to continue with the already subscribed funds, but want to pay money directly to the fund house, Can I do that ? I want to avoid ICICI Direct deducting my money from my a/c. Else I'll be forced to close the MFs and have to buy directly from the fund house.

Please help.

Hi,

If your MF holding is less than 8 lac then the charges are applicable. Once

your holdings exceed 8 lac then there will not be any transcation charges.

http://www.jagoinvestor.com/2009/08/new-mutual-funds-charges-from-icici.html

 

[URPradhan]

Hi,
If your MF holding is less than 8 lac then the charges are applicable. Once
your holdings exceed 8 lac then there will not be any transcation charges.
http://www.jagoinvestor.com/2009/08/new-mutual-funds-charges-from-icici.html

Ok. Good enough.

First of all, SEBI abolished entry load for the interest/benefit of investors and that benefit MUST goto the investor. But DALALs like ICICI Direct have come with nasty business tricks to get that MONEY at ANY COST. hence came up with a scheme like that for transaction fees. So we must not compare how much we are getting the benefit comparing with ENTRY LOAD. So your above link is irreverent.

Second,
Now, as I asked, Can I open an online a/c with my fund house with my folio numbers (getting from ICICI Direct) and giving them a request/application to change my bank details ? So that my fund house will start taking money from my new bank a/c (through ECS) and I'll cancel the SIP at ICICI Direct ?

Is it possible ?

 

[rrmhatre72]

Hi Friends

I have now trapped into the nets of ICICI Direct tricks for Mutual Fund transactions. Now I think I have made a BIg mistake by choosing ICICI Direct as the trading gateway.

Earlier upto Feb 2010 (my last SIP for earlier funds), they were NOT charging anything monthly. Means if I had a SIP of Rs 2,000/-, only Rs 2,000/- was getting deducted from my bank a/c.

But now I have subscribed 5 MFs through SIP route. And now they are deducting extra Rs 33.09 for each SIP contribution for each fund every month. So as I have 5 MFs I'll be paying transaction fees of Rs 33.09 x 5 = Rs 165.45 monthly and Rs 1985.4 annually. Its BIGGEST cheating.

Now, please suggest me, if I want to continue with the already subscribed funds, but want to pay money directly to the fund house, Can I do that ? I want to avoid ICICI Direct deducting my money from my a/c. Else I'll be forced to close the MFs and have to buy directly from the fund house.

Please help.

Pls check this out.
1. Stop SIP through ICICI
2. Give letter to fund hous about change in Bank.
3. Restart SIP with new bank with same portfolio.

I have not done it any time but theoritacally this is possible. Check with one of the fund house.

In this case you will receive your statments from fund house directly.
Portfolio on ICICI will not get updated automatically. you will have to update it manually.

Once your portfolio is above 8lakhs through ICICI they will not charge you anything.

 

[pavvu_kk]

Though I understand your plight, every brokerage will definitely charge for their service. Why would someone provide you a service for free?

If you are feeling that the charges are high, my suggestion is that you stop your SIPs, switch your broker and then start back your SIPs.

 

[yodlee99]

I have been trying to a find a solution to the same issue now. I have been told by ppl in this and other lists that HDFC securites does not charge you even a single paisa for your SIP as long as it is done online. ISA (Investment Services Account) is a facility to invest online in mutual funds from your HDFC Bank account and there are no transaction charges, be it SIP or lump sum.

How ever, HDFC Bank charges Rs 200 quarterly (every 3 months) i.e. Rs. 800 per year as maintenance charges for ISA provided you want to use the investment services account of HDFC Bank. Even this would turn out to be cheaper than paying 33.09Rs per SIP transaction. Simple math: 800Rs/12 months= 66.67Rs per month. In other words, if you have less than 2 SIPs per month, icicidirect is cheaper. For anything above 2 SIPs per month, HDFC securities would be considerably cheaper.

Can you contact the HDFC bank and update us as to when you need to pay for the ISA maintenance or whether you can avoid it by setting up the SIP yourself. Thanks !

 

[yodlee99]

Check this:
http://www.tracenotes.com/reports/brokers-india.html

 

[URPradhan]

I believe when I'll open an online a/c with my fund house, and tell them about my new bank a/c details for ECS, there will not be any fees for transaction monthly. Its a free service by every fund house. Above all the fund house wants more people to buy their fund hence they should give this service free. But I'm not sure. If anyone here has directly subscribed to fund house please comment.

 

[URPradhan]

Check this:
http://www.tracenotes.com/reports/brokers-india.html

Its link for comparison of STOCK trading brokerage.
We are here discussing about Mutual Fund brokerages.

 

[rajivnc]

I believe when I'll open an online a/c with my fund house, and tell them about my new bank a/c details for ECS, there will not be any fees for transaction monthly. Its a free service by every fund house. Above all the fund house wants more people to buy their fund hence they should give this service free. But I'm not sure. If anyone here has directly subscribed to fund house please comment.

Yes, You can directly subscribe to fund house. Here are the steps.

1) Download the forms, including the Online PIN and submit that to CAMS or KARVY centers.

2) Type DIRECT as the Broker code in the form.

3) After getting the Folio number do all you transactions online as DIRECT.