Is this model of mutual fund a good option ?

My dear Prashant,

If you go to submit your form to the AMC, would you prefer to  take leave from your office? If not, you would be mis-selling your services. Would you not incur any expenses for going to the AMC/ Registrar of AMC for submitting your form, if the same is 10 or 15 Km. from your work place? If you are wise enough or calculative enough to invest in a mutual fund under propoed model without the advice/ help of the distributors then how could you fall prey in the hands of distributors' mis-selling tactics? The small distributor, apart from advising you, has been incurring these expenses to serve you and save your time, your money as also your inconvenience for which he is entitled to receive remuneration.  Your deeds are imaginary. AMCs will still be chrging 2.25 or 2.5 percent of FUND VALUE [NOT OF YOUR INITIAL INVESTMENT] in the name of FMC. Are you not feeling pain for that dent in your funds? Every AMC still shall present its products in lucrative manner. Shall it not be a mis-selling? SEBI has tossed a befooling idea of "mis-selling" & "transparency" like a flash and the people like you enjoyed without any consideration or serious thought. Big distributors shall still be able to charge you and you will happily pay, if opted by you but you will feel difficulty if the small distributors shall ask you to pay them their fees, separately. Isn't it so? You are happy simply because of neibour's envy.

Further, you should be aware that Rajeev Gandhi, when he has been the Prime Minister, told the people of the country that Rs.100 allocated for the welfare of people, reaches them as Rs.15 only. Where this Rs.85 has gone? Mr. Rahul Gandhi recently accepted it as Rs.5 out of Rs.100 reaches to the people and Planning Commission accpted that Rs.16 out of Rs.100 reaches to the people. Are they fake statements? What is the transparency of missing figure of Rs.85 or Rs.95 or Rs.84? Have detail thereof  ever been disclosed before the people? Do the  Swiss Banks have no deposits of Indians? If they do, has any Indian depositor claimed having such deposits? Is it the TRANPARENCY? Have you got any thought over such a high level of TRANLUCENCY? No, I think, NEVER. You are happy by snatching of small amount of 2% of initial investment you were paying to small distributors, though you are bound, still, to pay to big distributors and AMC, may it be a mis-selling. Please think over it.

You are the student of a reputed institution and are, therefore, not expected, to simply express your views and make flimsy comments, but to assess every aspect of the situation and then draw a valid conclusion because the people will listen and believe you when you speak as a management expert.

Wish you all the best for your bright future.

SURENDRA KUMAR TEWARI