Must Read | Mutual Funds

Can Diversification Achieve Higher Returns than Concentrated Portfolios?

Clinton Fernandes 05 February 2021
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Diversification is a term bandied about in the investing realm, but people cannot really figure out how to do it correctly

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SIP can mean capital loss!

MAS Team 27 February 2014
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There are no guarantees for market-linked products. You could lose money in stocks, bonds and equity schemes, depending on when you buy and sell....

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When lumpsum investment is better than SIP

MAS Team 27 February 2014
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All mutual funds encourage you to invest through SIPs. They promote it strongly, running campaigns for distributors to meet new SIP targets. It is...

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Are Capital protection schemes any good?

R Balakrishnan 27 February 2014
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Capital protected schemes, usually offered by mutual funds, invest around 75% or so in a fixed income product, while the balance 25% money goes into...

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Diversification: How many schemes?

R Balakrishnan 27 February 2014
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I have come across many investors who have invested in a range of mutual funds, in the name of diversification as well as risk mitigation. More...

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Dynamic asset allocation: Half a product

Debashis Basu & Jason Monteiro 27 February 2014
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A new kind of mutual fund scheme is pretending to do dynamic financial planning. It is flawed in multiple ways What if you could you invest in just...

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Hybrid Funds: Adding gold did not help

MAS Team 27 February 2014
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SBI Mutual Fund has recently filed an offer document with the Securities and Exchange Board of India (SEBI) to launch an open-ended hybrid...

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Fund Performance: Fooled by randomness

R Balakrishnan 27 February 2014
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Avoid style or theme funds and stick to a few diversified funds. As each fund is diversified enough, putting money across several funds does not help...

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Dynamic Plans: Dart-throwing

MAS Team 27 February 2014
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Over 40 asset management companies (AMCs) operate in India and offer more than 300 equity schemes. Many fund houses have tried to differentiate...

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Small- and Mid-cap schemes: Cushioning the fall

MAS Team 27 February 2014
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Over the past two months (ending 31 March 2013), the S&P BSE Small Cap Index crashed by nearly 19% and the S&P BSE Mid Cap Index fell by nearly 13%....

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder