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sahi mutual funds

The two-headed Goliath—Mutual Funds and their distributors

Exorbitant annual fees and commissions to distributors are hurting Indian mutual fund investors. There is a solution, but don’t expect your local distributor to tell you about it

10/01/19

Avinash Luthria

Every year, Rs 15,000 crore is automatically deducted from investors’ mutual fund investments and paid to mutual fund salespeople

High fees and commissions, along with the mis-selling that they cause, leave investors significantly poorer

The solution is zero-commission plans. Yet only 5% of individual investors are doing this

What’s keeping zero-commission plans from being mainstreamed and why?

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The 2017 book, ‘How Fund Managers are making you Rich’, resonates with the advertisement jingle ‘mutual funds sahi hai’ (mutual funds are terrific). But the book also talks about a meeting between Ajit Dayal, the founder of Quantum Mutual Fund, and senior management at other mutual funds (MFs): “Dayal…called the mutual fund industry a den…

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