As the debate on ‘loads’ hot up... a peek at who’s wallet is on the line of fire!
The 
debate about doing away with entry load if investors buy mutual fund schemes directly from fund houses seems to be taking its toll. Already many biggies of the MF industry have increased their respective exit loads various equity schemes. “We have reduced the time frame on exit load on our arbitrage schemes,” avers Bhanu Katoch, National Head – Sales & Marketing, JM Financial AMC. For the uninitiated, entry load is the charge you pay to the distributor/ broker per mutual fund unit you buy. If the entry load is 1% then you pay 10 paisa per MF unit of Rs. 10. To get back to the debate – Securities & Exchange Board of India’s (SEBI) decision to scrap entry load is ruffling up a lot of feathers especially among distributors. But first for the aye sayers. “The move is important because it may give rise to contemporary solutions. The markets are dynamic and it warrants periodic evaluation of various market practices and regulations,” opines Rajan Mehta, Executive Director, Benchmark AMC.
But others like Raghvendra Nath, VP-Marketing & Strategy, Birla Sun Life AMC disagree wholeheartedly. “Scrapping the entry load cannot be a solution. There is a cost attached to marketing the mutual fund services to investors. Considering that SEBI has prescribed restriction on maximum fees to be charged, the marketing expenses are recovered partially through entry loads,” he states emphatically.
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian - India's Greatest News weekly
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
debate about doing away with entry load if investors buy mutual fund schemes directly from fund houses seems to be taking its toll. Already many biggies of the MF industry have increased their respective exit loads various equity schemes. “We have reduced the time frame on exit load on our arbitrage schemes,” avers Bhanu Katoch, National Head – Sales & Marketing, JM Financial AMC. For the uninitiated, entry load is the charge you pay to the distributor/ broker per mutual fund unit you buy. If the entry load is 1% then you pay 10 paisa per MF unit of Rs. 10. To get back to the debate – Securities & Exchange Board of India’s (SEBI) decision to scrap entry load is ruffling up a lot of feathers especially among distributors. But first for the aye sayers. “The move is important because it may give rise to contemporary solutions. The markets are dynamic and it warrants periodic evaluation of various market practices and regulations,” opines Rajan Mehta, Executive Director, Benchmark AMC.But others like Raghvendra Nath, VP-Marketing & Strategy, Birla Sun Life AMC disagree wholeheartedly. “Scrapping the entry load cannot be a solution. There is a cost attached to marketing the mutual fund services to investors. Considering that SEBI has prescribed restriction on maximum fees to be charged, the marketing expenses are recovered partially through entry loads,” he states emphatically.
For more articles, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian - India's Greatest News weekly
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
Labels: IIPM, IIPM Admission, IIPM BEST MBA INSTITUTE, IIPM Gurgaon, IIPM NEWS, Post Graduate Courses, Professor Arindam Chaudhuri, Renowned Management Guru and Economist, The Sunday Indian
Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.
posted by IIPM: A Leader in Academic Excellence @ 11:19 AM
0 Comments:
Post a Comment
<< Home