The full story is at:
http://economictimes.indiatimes.com/Personal_Finance/Mutual_Funds/Trail_fees_by_any_other_name_pinches_as_much/rssarticleshow/3299673.cms
The story is about MF houses charging illegal fees to their investors.
“In a bid to boost their profitability, several MF houses are now charging trail fees (even for direct investors) under the other expenses head, disguising it with names like miscellaneous marketing expenses or other operating charges,” says a financial planner, who is empanelled with several fund houses.
Why are the fund houses fooling the investor? This shows clearly that the MF houses are only looking at their own benefits. Why is the regulator silent on all these wicked strategies of mutual fund houses? Why is no action being taken? Why is SEBI not taking this seriously?
There will be people who might think that this is a small issue; but my dear friends, this is a very serious issue as the MF houses are eating up investors’ money. They are committing fraud as no one is stopping them. Not even the regulator! I would request all the people who read this to complain to SEBI about it.
November 11th, 2008 at 4:31 pm
This piece is a eye opener for lot of us. It is high time for the regulator to take action. In my opinion the SEBI is even more corrupted than the mutual industry. Know the time has come for all of us to come to together and request the government to take action against these type of corruption which are hurting the public interest.
November 11th, 2008 at 4:41 pm
I totally agree with the you, this clearly indicates all the Mutual Fund industry and i would further say even the insurance companies are not for the people there are only for business. I think our government is just sleeping it needs a change.
November 11th, 2008 at 4:54 pm
I am stun to know this fact. This is absolutely non sense activity done by the Mutual fund industry. Now i think its a high time. Some action has to be taken by the SEBI. They cannot sleep by keeping their eyes open.
November 11th, 2008 at 5:18 pm
I can’t belive that this type of non sense can happen. In my opinion SEBI was a strong regulator who use to protect the interest of the people.By this pieace my opinion towards SEBI has completely changed. This issue has to be sorted out by the regulator as soon as possible.
November 12th, 2008 at 10:06 am
Is there a list/names of fund houses who are indulging in this practice or is this just an inuendo with no facts to back it up.