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

SEBI panel on MFs recommends Rs 100 transaction fee: Srcs

Dennis Hong: Making a car for blind drivers | Video on TED.com

Dennis Hong: Making a car for blind drivers | Video on TED.com

Clarification on the Apr-11 Brokerage Payout

Dear Sir,
 
When I randomly checked April'11 brokerage statement of Reliance on Monday, I found that some payments were missing. 
 
I already told you as to what made me start looking at brokerage statements this month.
 
I told Chennai Reliance team about this on Monday and they promised to escalate and check this issue.
 
From the below mail, it is obvious that Reliance has blundered in making payments for many. Probably they should have received many complaints from people and companies who reconcile their monthly brokerage.
 
I don’t think IFAs like Mr.Alagappan, Mr.Desigan etc. who do large volumes and are one man army may even have time to reconcile and see whether AMCs are paying them correctly. Especially the SIP incentive matrixes, stepped up trail etc. are very difficult to reconcile even if someone has manpower to do the same.
 
I’ve a feeling that there may be procedural lapses on the part of AMCs and RTAs on payouts.
 
I would like to request you once again that in the best interest of all IFAs, you may kindly check with AMCs on the issues I mentioned in my earlier mail on ‘Payments by AMCs to advisors’.

I hear that we come across excess recovery often, but how frequently we get missing credits? Does this mean that AMCs always only over pay? My limited experience in the last one week based on few data points seems to say otherwise.

Regards

Muthu                                                           

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

Mobile: +91-98404-03431

HSBC Mutual Fund Issue

I herewith forward the email received from one of friend IFA Mr. Bharat Bhushan JI from Noida.  

I had copied this to all the top executives of HSBC.  Let us see the response on this issue.  

Ramesh Bhat
IFA Galalxy
---------- Forwarded message ----------
From: Bharat Bhushan <bharat@moneyoptions.in>
Date: Thu, May 19, 2011 at 4:09 PM
Subject: HSBC Mutual Fund
To: IFA Galaxy <ifagalaxy@gmail.com>

I submitted a transmission case to HSBC Mutual Fund.
 
In Anyone or Survivor Basis folio, one of the holder had expired.
 
Death Certificate, KYC, Bank particulars, Nomination desired, were all intimated.
 
The AMC person admits that all desired information is there along with enclosures, but goes on to state that the survivor has not clearly mentioned what is desired.
 
I wonder if they have multiple option like, survivor expressing that the money can be used by HSBC Mutual Fund for its own welfare. 

Why HDFC MF not kept us informed about this? Can they do this?

Dear All,

HDFC Mutual Fund has been sending mails to clients directly asking them to switch to their Online facility. Should they not keep us informed about this?

We as advisors have to procure them clients but they send intimation directly to the client. Is this another way to poach clients?

Regards

Srinivasan S

MONEY KARE
At Money Kare,
We Care for your Money
Your Professional Investment Advisors
Mobile No. 9841016902

----- Forwarded Message ----
From: HDFC Mutual Fund <sendouts@hdfcfund.com>
To: v3951@yahoo.com
Sent: Tue, May 17, 2011 10:14:39 AM
Subject: Explore the Benifits of Transacting Online

Dear Unit holder Greetings from HDFC Mutual Fund! We observe from our records that in the recent past, you have transacted with us by sending your subscription request by paper i.e. using a transaction slip / form and a cheque. This communication is intended to make you aware of our popular online transaction facility - HDFCMFOnline. A large and ever growing segment of our unit holders choose to invest with us using the online facility as it is easy, fast, convenient, paperless and most of all - it is futuristic. Time is the essence in many of your investments and hence the online option is best suited for a unit holder like you. Your bank(s), as registered with us, allows net banking which is a pre- requisite along with enrolment for this facility. Our website www.hdfcfund.com has all the information you would need on HDFCMFOnline, including a guidance demo in terms of all options, process flow for transacting, advantages etc. Please click here to access the demo The application form for HDFCMFOnline is available online and at all our offices. Let us know if you are willing to consider this facility and we will be very pleased to assist. I am sure you will take out a few moments to explore this convenience and evince interest. You may call us on 1800 233 6767 or 6000 6767 (do not prefix any code) for any assistance. Thank you for being a very valued investor of HDFC Mutual Fund and wish you a great day ahead! Sincerely,     John Mathews  Senior Vice President & Head - Client Services

Reliance Mutual Fund Playing with Investors

Dear Agents,

There is a very long list of service issues with Reliance Mutual Fund.
But i would like to discuss only a few issues.

Issue No.1
The Logistics service used by Reliance is really hopeless. To set an
example my own brother's redemption cheques with two folios and same
address was not delivered. The reason been given was address not
found. How was the address found on the redemption cheque with lesser
value and not the one with higher value when both folios had same
address???

Issue No.2
Reliance SIP Insure....The SIP in SIP insure is deliberately rejected
for two consecutive times thus washing their hand with Insurance
coverage which clearly says coverage will be stopped on two
consecutive rejections. This has happened to lot of my clients.

Issue No.3
Sending redemption cheques to bankers address and that too with wrong
bank details and in most of the cases with incomplete address of
bankers even though the investor has opted for physical delivery of
cheque.

Issue No 4
Reliance sends SMS to customers stating their SIP is rejected. The SMS
contains partial folio for security reasons.Fine ,but it also says to
contact customer care for further details. But when they are contacted
they say they don't have any details regarding the same...Then why the
hell should the SMS be sent?


Still lot of issues are there with Reliance..My request to my
colleagues to highlight more such issue if you are facing ..

Regards

Satish Vagale
ARN 18868
licvagale@gmail.com

Serious problem for SIP in DSPBR, IDFC

Dear Friends,

                 There is a serious problem in SIP for CAMS related AMCs. From this month MAY 2011, many of my clients who r investing in SIP for CAMS related AMC's through Nationalized Banks have started calling me in regard with thier SIP not being debited from their bank a/c. When I tried reaching AMC as usual and verified their answer was not up to the point, they were telling all sorts of stories that RBI has cancelled the bank MICR Code and hence forth we can not do any ECS debit for any purpose be it MF/ Insurance / Car Loan / Personal Loan / Home Loan / etc...

                I was shocked to hear this then today 14/5/11 went along with my Client, to his Bank to find out what is the exact problem why there MICR code is rejected by RBI. The Manager of that particular Branch, Started laughing on us on hearing the same then as a child like I showed them the SIP statement that his SIP was cancelled. Then the Bank MAnager pitied on us then told that RBI can withdraw MICR Code only if the Bank closes that particular branch. He also told us that RBI has issued a notice to stop ECS debit on a/c which show their old A/C no i.e non core banking A/c nos. Even though our SIP has got core banking details our SIP debit with DSP BR and IDFC  had got cancelled for this reason. Then today I went to CAMS along with my client to find out that it not our fault/ banks fault. When we spoke with concerned people along with the AMC staff, every one was giving different answers. Then 1 staff in CAMS had told us that there r more than 1 crore SIPS running how is possible to which A/c is core banking or non core Banking hence they hv taken a bold step of cancelling all the SIPS in above 2 AMC as a first step, When all the clients run back to the AMC like us and lodge a complaint then will reprocess the same SIP.

              So I request you all to give me solution how to go fwd in this issue is practically possible for 1 IFA to check all the SIP debits now and individually ask the AMC to process the SIP. For this Client I have been following with both the AMC and out of the 6 SIPS 3 has been processed and 3 yet to be done. It is foolish on part of the AMC/ CAMS to tell us same reason for SIP cancellation when they themself has reprocessed the balence 3 SIP.

REgards,

Alagappan T

ARN- 39129841055577

Rejection of redemption request on flimsy grounds by Reliance MF

 Dear Sir/Madam,

 

One of my client  invested  small amounts in three schemes of  Reliance MF, (Rs.2000/-, Rs.10,000/- Rs.10,000/-)  three years back.  He  gave redemption request last week. as he needed money.

 

The fund promptly rejected all the three requests stating  reason " Signature Differs".    I have rarely  come across any rejection giving  this reason.  But so many questions arise in my mind which I would like to put forth before my  IFA  fraternity. for discussion.

 

1.  How important is this signature  mismatch, when you are not  making cash payment ?  To know the identity of the person receiving  cash  is very important  to ensure that right person is receiving the payment.

 

2.  But here AMC is making payment either through A/c  Payee crossed cheque or  direct credit to the investors a/c..  There is no question of any third party receiving the payment at all !. 

 

3.  Investors Bank a/c  is registered and printed in the MF statement after thorough verification.  Further,   investor's cancelled cheque leaf. is  also insisted  to make doubly sure !.   When  Account number cannot be wrong at all,  what risk is there to AMC in crediting  the amount to Bank A/c, wherever signature differs ?

 

4.  Signature is one of the means to identify a person and not the only means.  When photo, address, Pan number, Bank a/c details, all these match, should you still reject ? Then why  take all  detail other than signature. ! Withdraw KYC !

 

5. After rejection   AMC is  asking the investor to get his signature attested by the Bank Manager.  How does AMC ensure that the Bank Official  signature is genuine ?  It is assumed depending solely  on the Rubber stamp/letter head  used there. Crooks are always  more  intelligent.  They can easily get a Rubber stamp or letter head.  Mind it !   In strict sense AMC official should personally go to Bank to  cross verify.   !

 

6.  Besides. Bank  attestation is not that easy. There is always big  crowd in the Bank and Managers are too busy  to attend to a small  SB customer.  Investor has to face rude replies !.    Some Banks are collecting service charges for signature attestation. The Investor for having invested , is trapped ,  harassed  and humiliated. His time and money is wasted.

 

7. The transaction slip used for redemption is mostly from the original statement  held by the Investor. How can anybody steal it and forge ? Even then the amount goes to the genuine investors Bank a/c only.  why  is the worry ?  Again this is an assumption which do not happen in real.

 

8.  The Regulators were caught napping when major scams  occurred recently, right under their nose.  Their regulations have no meaning  and having only negative impact on the industry.  They look to  investors with suspicion and  IFAs as criminals !  Investors are being hounded basing on hypothetical assumptions !  Instead of punishing the guilty, all the investors are  harassed, 

 

To say "Signature does not match " and reject   payment is  utter foolishness  in present day context.  The AMCs, their R & T, staff are to be properly educated and should be mde to understand the consequences of their actions.  All MF investments does not yield profit,  In my customers case, after 3 yrs he is getting less than what  was  invested originally and received no dividends.  AMCs  should learn to be investor friendly and apply some common sense also.  Regulators/AMCs should not think that there is a very big queue waiting to invest in Mutual Funds,   Money flows to Mutual Funds only due to  Distributors efforts. 

 

With  Best Wishes,

Boodugere Nagaraj

ARN 5746

Your Views Please

Should IFA Galaxy go ahead and unite all the IFA Associations in India and form a Federation of IFAssurvey software

Foreign-focused funds start yielding higher returns

MUMBAI: Retail Indian investors who believed investing in funds that buy overseas assets will yield higher returns are beginning to see their faith rewarded after a long wait. 

Funds such as Birla Sun Life Commodity Equities Fund , Fidelity Global Real Assets Fund , and ING OptiMix Global Commodities are outperforming domestic funds, due to the recovery in the west and concerns over Indian companies' earnings growth. 

Rising commodity prices, which have been a drag on Indian equities, have done the opposite for international funds, helping them gain as the prices of copper, crude and rubber rise. This is the first time international funds have met their prime investment objectives - to stay non-correlated to Indian markets, provide portfolio diversification and generate higher returns. 


Click here to read the complete news

RIL enters financial services business

RIL enters financial services business

BS Reporter / Mumbai March 28, 2011, 0:25 IST

Sets up joint venture with D E Shaw Reliance Industries (RIL) Chairman Mukesh Ambani has finally entered the financial services space. This comes just days before the Reserve Bank of India is expected to announce the draft guidelines for entry of new banks.

RIL today set up a joint venture with the DE Shaw Group to offer an array of financial services, a statement by the companies said, without giving details of the financial terms.

RIL is free to enter almost any sector after the two Ambani brothers ended a pact last year that prevented them from entering sectors where the other was present.

The partnership with DE Shaw will now see RIL compete directly with Anil Ambani’s Reliance Capital.

Sources familiar with the developments said RIL and DE Shaw were likely to build on the existing $800-million (Rs 36,000 crore) fund. DE Shaw has been in many ways following big hedge funds such as Citadel to compete with investment banks by offering diversified financial products. According to sources, RIL’s team is likely to play the lead role, but DE Shaw will assist in areas where it has core expertise. These include energy and carbon trading, energy and carbon derivatives, private equity, mutual funds and other security-linked products. “We would like to leverage DE Shaw’s expertise and offer the entire spectrum of services it has,” said an RIL official, without giving further details.

Click here to read complete news ...

Issues to be taken up by AMFI

These are some issues I feel we need to take up with AMFI as a IFA
fraternity

1. Trial fees should be payable monthly..not quarterly..no employee
gets salary monthly..why should we get the same quarterly?
2. Common Application form across all mutual funds..Today each AMC has
different forms for Debt/ Equity and different AMCs have different
forms..why cant a common application form be made which can be used
across all AMCs?
3. Non -Deduction of Service Tax
4. AMFI should focus more on Investor education through seminars/
advertisements on Mutual Funds.
5. Introduce an option in MF Application forms where we can mention
our fees so that it can be deducted from the clients investment. There
can be cap at 2% to prevent clients getting conned.

Regards
Praveen Kumar V
Capstone Investments
Bangalore

Disclosure of client information

Vani Govindarajan 
vani1964@gmail.com


Hi,

I received a few calls from Blue chip Investments,Neyveli, offering to service my investments, unwittingly by them not knowing that I am myself a distributor .On further prodding they told me that they received the list of my investments through CAMS, Trichy where their head office is based. Many of my clients have also informed me of having received such calls. I strongly object to the fact that my investment details are being shared with third parties. I am left with no option to take up this matter with SEBI .I strongly condemn such practices and urge upon you to immediately restrain BLUE Chip Investments from doing such activities and debar 

Regards

T K Vani
ARN 11724

The NSDL campaign

Dear Mr.Bhat,

What I wrote my investors today.

If you find it useful, request you to share the same with our group.

“NSDL (National Securities Depository Ltd.) has issued an advertisement today in a business newspaper asking us to be smart and hold mutual fund units in demat.

I’m getting an impression that there is an orchestrated effort (by whom, I don’t know) to monetarily benefit mainly depositories (NSDL is a depository), stock brokers and stock exchanges at the expense of investors and other channels.

I would be glad if I’m proven wrong. May be I’m a paranoid!

Gone are the days when mutual funds issued unit certificates.

Why not highlight the fact that mutual fund units are already in demat form. Why saying that you can demat something which is in anyhow in demat form?

So the concept of demating mutual funds is totally irrelevant.

This is like asking you to demat the account statement you get (if you hold shares) from your Demat account every quarter. Why they cannot think about ‘demat’ing this demat statement? Then you will get a statement for ‘demated demat’ account, which may needs to be demated again. The chain would go on. Confusing? For me too!

The same old sales pitch of consolidation. SEBI has recently mentioned that CAS (Consolidated Account Statement) would be soon made available to all investors. Like you are getting your account statements through email (monthly) and physical (quarterly), the mode and frequency of CAS would be advised by SEBI.

To obtain Consolidated account statement, even now, if you want, you can visit www.camsonline.com – Online services for Investors- Mailback Services- Consolidated Account Statement –CAMS+Karvy+FTAMIL – to obtain what NSDL is promising as you would get by demating the demated units.

Unlike demat, this comes at zero cost.

Also many advisors like us have the ability to provide consolidation of your holdings at the click of a button from our own software.

NSDL is saying you can view the valuation online.

To my understanding, in NSDL DP sites, you can see only the number of units and current value.

Whereas the reports I mentioned above is very detailed.

I think the impression is created in investors mind that online and demat are one and  the same. It is different.For example, you may create your own portfolio online free of cost in many personal finance portals. This is in addition what CAMS or your advisor provide you (as mentioned above).

If you ask my honest opinion, seeing the valuation of one’s investments (whether it is shares or mutual funds) constantly is a disease. This disease many a times totally ruins your financial health. Unless you are a trader, you do not need to constantly know value of your investments.

If you are a trader and not an investor, we would not be having professional relationship in the first place.

About other aspects mentioned in NSDSL advt., I think I’ve covered everything in my last post on Sunday (http://wisewealthadvisors.com/2011/03/20/demating-the-demat/ ). Instead of highlighting only advantages, if they highlight disadvantages the advertisement needs to be many times in size (like the blog I wrote on Sunday).

Mutual funds, a core product to be in an investor’s portfolio, have hardly penetrated. Probably there may not be more than 10 million investors in a country of 1150 million.

I hope regulatory authorities take a cue from LIC for making a product or concept reach across length and breadth of the country.

Even among mutual fund houses, UTI has better penetration across the country as their model is similar to that of LIC.

The stock exchange, stock broker and depository model have hardly made any inroads. You may read what Sucheta Dalal wrote about this in Moneylife last year. Mind boggling data and analysis.

It is better to follow a model which has succeeded in a country like India than a failed one.

Interestingly the SEBI (which controls mutual funds) chairman whose term ended recently was heading NSDL for over a decade before taking the position as SEBI chief.

Also I read yesterday an article written by Sucheta Dalal about NSDL in Moneylife, which has very many details I was not previously aware of.

You may click the below link to know more

NSDL behind regulatory fog:

http://www.moneylife.in/article/nsdl-behind-regulatory-fog/14893.html “

Regards

Muthu

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

Mobile: +91-98404-03431

Email: muthu@wisewealthadvisors.com

         Wisewealth.advisors@yahoo.co.in