As I previously mentioned , Sebi has planned to waive the Entry load for direct purchases.
As expected most Agents including big brokerages and Banks like Icici and Psu banks that act as agents in the sale of mutual funds and earn a handsome commission have strongly opposed the move. source ET
Im all for this provision cause even if i invest direct the broker lobby benefits for doing nothing- and if it is implimented
1. Id prefer the cost + load model so that people who need help can go to an agent or pf manager and then the load should apply.
2.There are other costs to direct investment like cost of research, travel, courier printing, getting the forms documents and paperwork done correctly which are not reimbursed if u invest directly.
3. Currently most staff at agents are badly trained about product and focus on sales and push promotion and rarely have customer service. This means the agent community should mean business and stop the leach practice of blind marketing of nfos etc by truly giving a value add and good after sales service so as to retain their clients.
4. Lastly i don’t see a big dent in the agents sales if they truly give customers value add like pf report researched recomendations and help during repurchase … which most agents currently lack.
It is time for the intelligent investor to act . Do send ur opinion on this issue to firstname.lastname@example.org or by writing 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.