We admit, convenience is important...
NRIs have so far been investing money in Indian mutual funds based solely on the recommendations of their relationship managers. And one can't blame them given that the convenience of investing is simply irresistible. Imagine being in London or Tokyo or Dubai and having to co-ordinate with your relationship manager in Mumbai; and then factor in the challenge of getting the paperwork done. Well, the fact that one would prefer to deal with a local relationship manager is a no-brainer.
...but is convenience all-important?
Convenience is NOT all-important. If you are investing your money, you better be sure that it is going into the right instruments. If you have a convenient way of investing in dud mutual fund schemes, you are not going to make much headway.
How honest is the advice you're getting?
Of course, as an investor, you desire both - honest recommendations that are best suited for you and convenience while investing. And, like most NRIs, however, presently you depend on your relationship manager for both. But is your relationship manager being really honest in his recommendation? He probably is, but how can you be sure?
HOW TO EVALUATE YOUR RELATIONSHIP MANAGER
(as also the advice you're getting)
| 1. | Ask your relationship manager to disclose the commissions he earns on the schemes recommended by him; compare with those schemes that have not been recommended. Usually the funds offering the highest commission will find it to his recommended list |
| 2. | He gets you to switch your funds from one scheme to another on the pretext that other schemes are likely to perform better; if his recommendations were honest in the first place, this would not be necessary |
| 3. | He sells you every new fund offer (NFO) that hits the market; not surprisingly NFOs tend to pay the highest commission |
YOU LOSE MONEY EVERY TIME YOU ACT ON THE RECOMMENDATIONS
OF A DISHONEST RELATIONSHIP MANAGER.
(Can't believe it? Read on ...)
| 1. | The ultimate impact of the high commissions being paid out by the fund has to be borne by you and therefore your overall returns over the long-term take a hit |
| 2. | You have been recommended a mutual fund portfolio which is not suited to your needs; it is therefore likely that your objectives will not be realised |
You can of course never be sure about the intentions of your relationship managers. Some of them are, well, brutally dishonest. You can only hope your relationship manager is not.
Is there a solution? Yes, there is.
Personalfn - created by the same company that has built Equitymaster into India's leading independent equity research initiative - is determined to empower you with an independent, honest opinion on mutual funds that are best suited to meet your investment needs and objectives. In keeping with our vision, we have launched FundSelect Plus.
What are the benefits of being a FundSelect Plus Subscriber?
| 1. | Three portfolios that invest in equity funds, based on the level of risk you wish to take
[Sample Screens: Portfolio | Equity Portfolios | Debt Portfolios] |
| 2. | Three portfolios that invest in debt funds, based on how long you wish to invest |
| 3. | A monthly Investment Ideas note (check our ideas against those you get from your relationship manager) [Sample] |
| 4. | Weekly reports that analyse leading mutual fund schemes (check our views against those of your relationship manager!) [Sample] |
| 5. | Research on New Fund Offers (NFOs) - are they really worthwhile investments? [Sample] |
| 6. | MyPlanner to track your cash flows and balance sheet [Read More] |
Decision-time! Why you must subscribe to FundSelect Plus?
So that you always have access to an independent and honest opinion on the mutual funds that you should be invested in. When your relationship manager comes along with his next set of recommendations, all you need to do is log on to Personalfn's FundSelect Plus and get an honest view.
You have the best of both
With FundSelect Plus to guide you, its time you took control of your money. With access to honest recommendations, and the convenience of executing the transaction through your local relationship manager, you will have all that you need to make your money work for you!
Subscribe to FundSelect Plus today, for a wealthy future! Click here!
Want to talk to us? Write in to us at info@personalfn.com
