White Oak Capital to acquire Yes Mutual Fund

White Oak Capital’s subsidiary GPL Finance and Investments has received capital markets regulator Sebi's approval to acquire Yes Asset...

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New SIP accounts broke record with 24.9 lakh registrations in August

Investments in mutual funds via systematic investment planning (SIP) route hit a new record in August with new SIP account registration hitting 24.9...

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MF August Inflows: Equity funds added the most assets at Rs 8,667 crore

Mutual fund investors added a net Rs 8,666.68 crore in equity mutual fund schemes in August 2021, compared to Rs 22,583.52 crore in the previous...

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Sebi direct MFs to show risk-o-meter of schemes in all disclosures, including promotional materials

Sebi directed asset management companies (AMCs) to disclose details of risk and performance of mutual fund schemes in all disclosures, including...

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SBI Balanced Advantage Fund collects record Rs 13,000 crore from NFO

SBI Mutual Fund made a new record from the NFO of its newly launched SBI Balanced Advantage Fund. The new equity-oriented fund collected around Rs...

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Kotak AMC fined Rs 50 lakh for delaying redemptions to MF unit-holders

Market regulator Sebi barred Kotak Mahindra Asset Management Company (AMC), the asset manager of Kotak Mutual Fund, from launching any new fixed...

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Equity schemes witness record net inflows in July

Net inflows into equity mutual fund schemes surged to a record high in July as investors poured large sums in new fund offers.

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Mutual Funds roll back free term life insurance cover with SIPs

Unexpectedly high claims in the wake of Covid-19 have made it unviable for mutual funds to continue offering group term life insurance cover to the...

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Sebi orders setting up of common mutual fund platform for handling service requests

Sebi's has asked registrars and transfer agents (RTAs) to develop a common industry-wide platform for purchase and sale of mutual funds and to handle...

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Sebi allows AMCs to offer instant access facility in overnight mutual fund schemes

Sebi has allowed mutual fund managers to offer instant access facility in overnight debt schemes. Earlier, this facility was limited to only liquid...

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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
  • The investools will have to be reworked and will offer model portfolios. 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