Know your customers - if they are yours!
In a piece written for this paper about a month ago, I had pointed out that risk profiling (which is now being sought to be made mandatory by the...
Debashis Basu | 27 February 2014
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The mumbo jumbo of risk profiling or risk tolerance is now part of orthodoxy
In late September, The Securities & Exchange Board of India (Sebi) released a concept paper on Regulation of Investment Advisors. There is a lot of...
Debashis Basu | 27 February 2014
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The silence of the boards
Business leaders talk piously about it. Regulators have codified it into a list of dos and don’ts. Various government departments and...
Debashis Basu | 27 February 2014
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Entry loads, exit investors
The Indian stock market today is moribund. The initial public offering (IPO) market is almost dead. In the 12 months ended March 31, 2012, just nine...
Debashis Basu | 27 February 2014
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Consumer Products vs Mutual Funds: Half Truths and Lies
I would urge people to get hold of a copy of a book called Brandwashed. It is written by Martin Lindstrom, a marketing consultant of international...
R Balakrishnan | 27 February 2014
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Diversification: How many schemes?
I have come across many investors who have invested in a range of mutual funds, in the name of diversification as well as risk mitigation. More...
R Balakrishnan | 27 February 2014
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Dynamic asset allocation: Half a product
A new kind of mutual fund scheme is pretending to do dynamic financial planning. It is flawed in multiple ways What if you could you invest in just...
Debashis Basu & Jason Monteiro | 27 February 2014
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Hybrid Funds: Adding gold did not help
SBI Mutual Fund has recently filed an offer document with the Securities and Exchange Board of India (SEBI) to launch an open-ended hybrid...
MAS Team | 27 February 2014
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Fund Performance: Fooled by randomness
Avoid style or theme funds and stick to a few diversified funds. As each fund is diversified enough, putting money across several funds does not help...
R Balakrishnan | 27 February 2014
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Financial literacy to cover up for regulatory failure?
The main feature of most financial products is that producers and distributors gain far more than savers and investors. Ironically, the same is true...
Debashis Basu | 27 February 2014
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Doing More Harm: Confused regulation of financial products
A friend of mine used to joke that in the deep south of Bengal, the Sundarbans, there are three brands you would come across: the Communist Party of...
Debashis Basu | 27 February 2014
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Dynamic Plans: Dart-throwing
Over 40 asset management companies (AMCs) operate in India and offer more than 300 equity schemes. Many fund houses have tried to differentiate...
MAS Team | 27 February 2014
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Small- and Mid-cap schemes: Cushioning the fall
Over the past two months (ending 31 March 2013), the S&P BSE Small Cap Index crashed by nearly 19% and the S&P BSE Mid Cap Index fell by nearly 13%....
MAS Team | 27 February 2014
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Monthly Income Plans: Are MIPs worth considering?
Monthly income plans (MIPs) of mutual funds, typically, invest almost 85% of their assets in debt and the remaining portion in equity. Equity...
MAS Team | 27 February 2014
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Isn’t consumer protection the primary role of regulators’?
According to a media report, the outgoing chairman of the Insurance Regulatory and Development Authority wants Irda to have a new whole-time member...
Debashis Basu | 27 February 2014
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Retail investor participation: 5-point nothing
Though the regulators have not thought of it, consumer financial protection should stand on five pillars: financial education/literacy; competent and...
Debashis Basu | 27 February 2014
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The bad old ways of shortchanging the customers, continue
In many of my articles since late 2011, I have emphasised that consumers of financial services in India usually do not get a fair deal because the...
Debashis Basu | 27 February 2014
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Returns from asset classes: Creating wealth
In this column, I have made an attempt to examine various asset classes and how they have performed. I have not included real estate as it would vary...
R Balakrishnan | 27 February 2014
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Mutual funds: Fund & games
In the old days, when one invested in chit funds or fixed deposits, the distributor would give you a gift of some kitchen items like plates or...
R Balakrishnan | 27 February 2014
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Investors Protection: Legally dishonest
The government wants to restore investors’ confidence in the stock markets. How can I have confidence when the government breaks the rules to...
R Balakrishnan | 27 February 2014
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