IFA Galaxy Knowledge Summit 2012

Representation to SEBI by IFA Galaxy on 3rd May 2012

Issue of distributor commission - "I WOULD PREFER THE FOLLOWING MODE OF BROKERAGE PAYMENT"

Fund houses consider different options as they seek to build consensus over the sensitive issue of distributor commission.

Mutual fund houses are mulling over doing away with upfront commissions in a phased manner, though so far unanimity continues to elude the industry.

“We want to move to a zero upfront regime in a phased manner, by capping it a certain percentage initially. There are two schools of thoughts within AMFI. Once we arrive at a consensus, we will take it forward. There are strong views both for and against banning upfront commission,” says a marketing head of a foreign fund house.

There are three options being considered:

1.      Each AMC to decide its own upfront commission (status quo)

2.      Abolish upfront and hike trail linked to stickiness of assets

3.      Higher upfront for business of up to Rs. 5 lakh or higher trail commission (no upfront) for business of more than Rs. 5 lakh

Some are of the view that the ‘pricing’ or upfront commission should be best left for AMCs to decide.

However, a few others believe paying higher trail commissions is a win-win situation for both AMCs and distributors – distributors will not churn portfolios while AMCs are assured of long term assets. A higher trail (with no upfront) for big distributors like banks and NDs will help them generate enough cash flows to run their business. But this model doesn’t work well for IFAs bringing in small ticket applications.

The debate over IFAs inability to charge fees from clients still continues. Some of them have made the transition, while others are yet to find a way to get a separate cheque from clients. Distributors, especially financial planners, mainly rely on fee income, apart from the trail, thus having little to worry about upfront payouts. Some distributors charge a percentage fee based on AUM or a fixed upfront fee.

Always at your service

IFA Galaxy

IFA Galaxy Knowledge Summit 2011

Stock Market Update

A reminder for the email which we had sent on Tuesday, June 14, 2011 

Click on the link below for flash back

Stock Market Crash Possible Soon?

Now register your comments is this the right time to enter the market?? 

Your guidance to us,  especially to IFAs in Tier II and Tier III cities will be highly appreciated

1.  Should we enter the Equity Fund in FULL?

                  

                   IF yes Diversified Equity or Sector Specific?

                   IF Sector Specific - What Sector?

2.  Is STP is the better bet now?

               

                   IF yes - Weekly or Daily or Monthly

3.  Your Views on Interest Rate movement? 

                

                   Will it further go up?

                   IF yes - Max how many bips

Transaction Charges on Mutual Fund

Sundaram Fund Services Issue

Dear Sir,

As you are aware, I’ve been following up with both Sundaram and Fundz Magic since March’11 on migration of data.

I’ve been keeping both of you in loop on many communications in this regard.

The migration has not happened till date.

From my conversation with Mr.Bala of Sundaram yesterday, I understand that Fundz Magic is keep on coming with fresh set of requirements every time and things are not moving forward as desired.

He told me that there is no such issue with other software providers. Since you may be in touch with IFAs using other softwares, you may obtain their feedback also.

I spoke to Saby even yesterday and he said that the process would get over by EOD yesterday. There after I’ve not heard from them.

There are many IFAs who would be using Fundz Magic and like me all of them would also have been affected.

I don’t know whether the problem lies with Fundz Magic or Sundaram or both.

You mentioned last week that you’re working on this issue. What is the status of the same?

Can you do something to facilitate this without any further delay either on the part of Fundz Magic or Sundaram?

Request you to consider this on priority as this has impact on lot of IFAs.

Regards

Muthu

D.MuthukrishnanCertified Financial Planner ^CM(CFP^CM)
Personal Financial Advisor

Please Clarify

Dear IFA Galaxy Members

Please see the following email from Mr. Babu, of KAMFA, Bangalore.  

We welcome your comments on the article written by Value Research.  

Do you think Value Research is correct????????   

http://www.valueresearchonline.com/story/h2_storyView.asp?str=17390


We are surprised to see that Value research had removed this from the website if you click the link above you can note that.  So here is the Screen short for you to read

"If you had not invested in the tax planning funds to save tax, the three-year lock-in does not apply which is mandatory for only those seeking tax deductions by investing in these funds. You can redeem your investments in these two funds whenever you wish. As both these funds are like any other equity fund, you will not be faced with paying capital gains tax on your gains when you redeem as you have already been in these funds for over one year"

As per my views they are wrong (Even Value Research can make mistakes).  

We request you to send your feed back to feedback@valueresearchonline.com with a Copy to us.

K. Ramesh Bhat,  

CII MUTUAL FUND SUMMIT 2011 - RECOGNITION FOR IFA GALAXY

Dear All,

IFA GALAXY is very happy to inform you that, at today's CII MUTUAL FUND SUMMIT being held at Mumbai, IFA GALAXY has been recognized for its initiative for the IFA Community. We thank Mr. SINOR, CEO of AMFI for having given us this honor during his speech. We congratulate each and every one of you for having made this possible.

We will keep you posted more about this Summit in the coming days. 

Regards

Srinivasan S

Secretary

Stock Market Crash Possible Soon?

Watch this !!!!!!

http://www.benzinga.com/11/06/1162997/stock-market-crash-possible-soon

There are significant signals in the current market that a crash or meltdown scenario could unfold sometime in the next 1-2 weeks. Crashes are rare events and nearly impossible to predict, but many elements that could combine to produce a financial market calamity appear to be present at this time.

The video below reviews the current technical condition of the major world stock markets.  In it I examine each index in terms of the relationship between price and the uptrends from March 2009 and August/September 2010, the April 2010 top and March 2011 low, the 20, 50 and 200 Exponential Moving Averages and areas of significant horizontal support/resistance.

Here's a direct link to the video: http://www.youtube.com/watch?v=OGVv2ODBQ-E

Every major stock market in the world is either hovering just above or directly upon or has already broken a critical area of technical support.  Ordinarily this might represent a major buying opportunity.  But the current market setup may be anything but ordinary.  In fact it may be quite extraordinary.

By moving dramatically ahead of the markets and leading price lower, the market's underlying technicals tend to indicate that a sharp break to the downside is imminent.  Many indicators have led the market lower and now price will likely play catch up to the underlying technical condition of the market.  Here is just one of many examples:

In spite of a very modest 7.5% decline over 6 weeks of trading (1.25% per week), Percent of Stocks Above the 20, 50 and 200 EMA have declined to precipitous lows usually associated with huge selloffs.  This is a prime example of the technicals leading the market lower.

Many analysts are calling this a signal of an oversold market.  I think they are wrong.  To be oversold you need to see some capitulation selling and some fear and we have not seen that.  VIX has barely budged:

This technical evidence tells me that the selling HAS NOT EVEN STARTED YET.  And it is likely to get started soon.  There is MUCH more technical evidence that supports what I am saying here which will be published in a report for BullBear Traders members.

This is why I called for a possible crash.  When you have a situation where price needs to play catch up to the underlying technicals and market participants are not fearful and are still buying the dip, you have the recipe for a crash. 

Today's weak bounce is probably just another selling opportunity.  Unless the short term downtrend from the June high is broken, we have a iii of (iii) of 3 of C setup, which is a very bearish place to be.

To read the full BullBear Market Report, please join us at BullBear Traders room at TheBullBear.com.

Read more: http://www.benzinga.com/11/06/1162997/stock-market-crash-possible-soon#ixzz1PDzD92SE

Please do not forget to view the videos too in that report with technical chart reasoning 14 minutes Video.  

This email as so sent to all top executives of AMC for their views.  

We love to hear your views and if permitted to share with your name or without the name of the AMC we will share your ideas with our group.  

Thanks and appreciate your views to safeguard our clients money.

Final Decision is yours (IFAs) - Safeguard you clients money.......

Ramesh Bhat K

IFA Galaxy