SEBI has recently come out with the latest ruling regarding the Entry Loads charged in the mutual funds.
From August 1, 2009 there will be no entry loads on mutual fund investments and the distributor will now charge an ADVISORY FEE for his advice.
What does this mean………………….???
People will buy advice and not products anymore. People who sell products will find it tough going forward until the one they are selling suits the client needs and is the best on certain parameters. I will again repeat the combination that will drive investment advisory: “Noble Intent” + “Proficiency”.
Any investment can be suitable to one and unsuitable to the other. Every person has different needs so the advice has be tailored accordingly. For some it mean to optimally utilize the crores he has made and to others it might be a journey to make that 1st crore.
Coming times are going to be challenging for some Advisory companies and brokers but certainly it would be better for the INVESTOR………..after all CUSTOMER IS THE KING NOW!!!
Please do drop in a line as your feedback and thoughts………………………..
Anil Budhraja
anilbudhraja@yahoo.com
