No Restriction on Redemption From Axis Mutual Fund schemes : Chandresh Nigam

Chandresh Nigam, MD & CEO, Axis Mutual Fund, has said that Axis Mutual Fund will continue to maintain the highest governance standards,

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Axis MF suspends two fund managers amid allegations of irregularities

Axis Mutual Fund (MF), India’s seventh-biggest asset manager by way of pooled cash under management, has suspended two fund managers --Viresh...

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50% Equity Mutual Fund Managers Fail to Beat Benchmark for Another Year

According to SPIVA India Scorecard, a report by S&P Dow Jones Indices, 50% of Indian equity large cap funds underperformed the S&P BSE 100 in the...

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ICICI Prudential Launches Housing Opportunities Fund

ICICI Prudential has launched its Housing Opportunities Fund scheme this week. However, the subscription will be allowed till April 11, 2022. The...

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SEBI Stops MF NFOs; Provides Time to Comply With New Norms

Market regulator Securities and Exchange Board of India (SEBI) had asked mutual fund houses to ensure that no mutual fund distributor, online...

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Aditya Birla SL, HDFC Mutual Fund To Merge FMPs Into Debt Funds

Aditya Birla Sun Life Mutual Fund and HDFC Mutual Fund will merge their Fixed Maturity Plans (FMPs) - fixed tenure debt products - coming up for...

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Franklin Templeton To Repay Commissions Charged On Six Shut Schemes

According to a report in ‘The Economic Times’, Franklin Templeton Mutual Fund has decided to repay commissions charged by it between June...

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Parag Parikh Flexi Cap Fund to reopen for lumpsum investments from 15th March

Parag Parikh Flexi Cap Fund will reopen for transactions from next week, informed Rajeev Thakkar, CIO & Director of PPFAS Mutual Fund.

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Motilal Oswal AMC launches S&P BSE Low Volatility ETF and index fund

Motilal Oswal AMC has launched low volatility factor-based exchange traded fund (ETF) and Index Fund – Motilal Oswal S&P BSE Low Volatility ETF...

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SEBI Pulls Up New AMC Samco MF For Calling its Scheme a 'Pure' Equity Fund

Newly launched asset management company - Samco Mutual Fund has come under fire from market regulator SEBI for misleading investors during their...

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Changes in Our Business Model
 
 
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