Entry Load on Mutual Fund abolished from august 1st 2009, Get free investment advice

Hi

The entry load on mutual fund has been abolished by SEBI from August 1 2009. Its a double edged sword for lot of investors as the good part is that no entry load will be charged and the whole amount will be invested but the negative part to the whole story is hardly there will be any company who will give advice to retail customers.

We can argue here by saying that advice is not required as anybody can decide on which funds to buy or sell. Though its not true because I remember a wealth managament company who during the last bull run, when market valuations were getting stretched had asked their clients to come out in a staggered way from equity MFs. Those clients who agreed to go with the companies advice had very less loss compared to those who stayed put thinking market will cross 25 K on Sensex. Similarly there are clients who take lot of new age allocations like gold and infra and make a mixture of various MFs and think that they have done something great. They realise the failure when markets tank. The question to be asked when one makes his/her portfolio of MF is, have you made a core portfolio? and if yes then what are you going to surround this portfolio with?Do you think 5 MF Scheme is enough for a 50 lacs portfolio or do you require 20 MF Scheme? How to mix and match the schemes to make optimum return? etc etc.

From this blog post I would like to bring to the notice of all the readers that, for any query on MFs, Equity,ULIP, PMS, Structured Product etc, just post a comment with your question or just drop in a mail to my email id sureshkaimal@gmail.com. This same blog also can be viewed by visiting www.sureshkaimal.in

Comments

  1. AnonymousOctober 10, 2009

    sir,
    good work.
    thanks for this service.

    ReplyDelete

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