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
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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 |
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11 comments:
In the same letter why they are not mentioning that : "you can put your preferred broker's code number also so that he gets updated and can guide you on your portfolio requirements and other services".
- Santosh Roy (ARN-16655) mumbai
Definetely we hv to take it up. Any communication to clients procured thru intermediaries should be done thru them only and certainly not directly.
L.Kumaar
ARN 0037
We should remember that the AMC are saving the commission which they are giving to ARN holders. Further slowely slowely all are in process to kill ARN Holders
i think we should take this matter at high level management of HDFC , we should ban the HDFC business at all india level.show our unity.HDFC has no right to contact our client without informing us.I request all our IFA not to mention e mail id of our client in application form.Dont suggest client e mail facility, rather keep in touch with client by dropping statement or any other service at office or at his home.
ARN-15259 chandrashekhar kulkarni Nashik
Yes. We must show our solidarity and followup the matter with the higherups at the AMC. The AMCs must inform the IFAs, whenever these type of marketing is introduced and at the same time, they must inform the investors that they can add the ARN numbers of their distributors during such trasactions, so that they will get regular feedback, followup and further advices regarding that investment in future, from their distributors.
L.MUTHUKRISHNAN,
ARN 10460,
TIRUNELVELI
This is ridiculous. A professional company like HDFC adopts this at technique then what about other AMC. We have to be one and not promote their products if possible.
its a big challenge we are facing
better option is we should stop business and starts redemption from HDFC. so they can learn the lessions...........
DEAR IFAs,
NOW IT IS CLEAR THAT REGULATORS AND AMCs ALL ARE BUSY TO SIDELINE US.
REGARDS
SURENDER SINGH [ARN-66056]
REPLY FROM HDFC MUTUAL FUND
Dear Mr. Srinivasan
Nice talking to you just now and we know each other but I did not realize that you were General Secretary, IFA Galaxy. Anyway it was a pleasure talking to you!
As I explained, the reason to write to a select group of investors who have an email ID (we presume they are net savvy) is that, such investors were investing through use of cheques and transaction slips. In the current regime of stringent cut off times and applicability of NAV"s especially for certain Debt / Liquid schemes, it was our intent to ensure that their interest is possibly protected by transacting electronically. There are instances where the credit of funds for such transactions come in to our scheme account(s) after the prescribed time, which means your client loses NAV of that day and also bank interest. By transacting electronically, we are indirectly attempting to protect your interest as well. We did say in our email that "time is the essence of your investments", which is why we asked them to transact electronically. Perhaps, I should have reiterated in the email that "please continue to use your distributor code, if any, while transacting". Our website in any case pops up the default distributor for the unit holder, if any.
Let me assure you that HDFC AMC is not in the business of poaching clients or any such activity which to my mind will sour our relationships and actually tarnish our reputation, which is highly important for us. Many distributors have worked with HDFC AMC. They would know that we strongly believe in partnering with our esteemed distributors and thats the way ahead for growing our business
I trust that explains our position. Perhaps we can talk at length along with some distributors on my next visit to Chennai in terms of how we can collaborate on such matters, as suggested by you. We also take the distributor community reactions as feedback for the future.
I request you to put up a suitable clarificatory statement from your end to the distributor group in IFA Galaxy.
Have a nice day!
Sincerely
John Mathews
Senior Vice President & Head - Client Services
HDFC Asset Management Company Ltd.| 2nd Floor | Mistry Bhavan | Dinshaw Vaccha Road |
122 Backbay Reclamation|Churchgate| Mumbai - 400020.
I’m allowed to post this comment after 2 weeks of repeated requests and follow-up:
A well worded reply from Mr.John Mathews totally lacking in substance and logic.
Most of the investors in metros and cities provide email id in application form – especially for receiving SIP monthly statements. So it is very cleverly worded as ‘select group of investors’.
What is so great about an observation that investors submitting application forms and cheques? Almost all of the IFA transactions happen this way.
‘Time is the essence of the investment’ is mostly applicable for liquid money – which only a tiny segment of IFAs operate in.
Mr.Mathews could have then chosen to write to liquid money clients, keeping the advisor in loop and properly wording his email.
Even this is not required as If an IFA is web enabled, he himself can provide the option of transacting with HFDC MF through his website, if he deems fit.
IFAs are answerable to clients if there is any delay in submitting application form, switch request or redemption within cut off time. Clients would question them and not HDFC mutual fund.
I also hope that Mr.Mathews would agree with his fund house philosophy of long term investment and would not be focusing on a single day’s NAV as ‘time being the essence of investment’.
He could have chosen to write directly only to ‘direct clients’ (whose investment does not come through any ARN code) and for all other channels, should have shared his futuristic thoughts with advisors.
The icing on the cake is his mention of protecting our interest as well through his bulk email to clients.
Either we all can feel happy and contended that a person of Mr.John Mathew’s position write to us or apply our thought, read the emails sent and see the fallacy of his argument.
In such instances, I would suggest that the email id of the concerned person is provided by IFA Galaxy management to its members.
This would help IFAs share their anguish and by sheer volume of responses, the concerned person would think thrice before sending such insensitive mails to the clients acquired by IFAs for HDFC mutual fund.
Gandhigiri!
Reply from John Mathews, Senior Vice President & Head - Client Services is totally ridiculous.. It's proved that ALL AMCs are doing this not only HDFC MF.. for their own interest as he said it in bold terms.. Best way for IFAs is not to promote any HDFC MFs.. as they are not ethical..
In fact, with changed regulation for ULIPs, we have better opportunities in selling ULIPs giving similar returns to our investors and also protect our interest. Until Unless regulations change favouring MF advisors, Business of MF advisory is not worth doing any more as it is not helping distributors in any way o/than wasting our time and energy. Let the MCs direct do the retail business..
In fact, despite initial cost difference of ULIPs vrs MFs for our investors, the long term cost of MFs is much higher than ULIPs.. We have done some comparative study keeping MFs fund management charges of 1.75-2.25%.. Whereas ULIPs fund management charges range from 1.25-1.4%.. and Encouraging investors for ULIPs is in the best interest of the investor as they are not only getting Insurance cover but also are making a kind of Long term commitment into equity markets which is the essence of investing in Capital markets. In MFs people are tempted to redeem when ever the need arises as they consider it as ready cash!.. This is not the way investments can give good returns on investment..
As there is an insignificant incentive for MD distributors and with all such kind of hanky panky from AMCs to poach customers from advisors, Best for us is Forget MFs.. Get into ULIPs.. in the best interest of Investorsand Advisors..
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