Mutual Fund Distributors resort to mis-selling and cheat customers to make money. Mutual fund distributors cheat customers by constantly churning portfolios. They encourage you to sell mutual funds at regular intervals and buy new ones to make a profit.
Mutual fund distributors encourage you to invest in New Fund Offers popularly called NFO. For those who don’t know, NFO is the first subscription offered by a mutual fund. They are heavily marketed and mutual fund distributors earn high commissions by encouraging you to avail new fund offers. While NFO may be good, mutual fund distributors sell NFO to customers which don’t meet financial needs. This is cheating and mis-selling.
A mutual fund collects money from you and several investors and invests in equity (stocks), fixed income (debt) and balanced funds (mix of equity and debt), depending on the type of mutual fund scheme. Mutual funds are an excellent way to invest in stocks. You can invest in mutual funds to meet financial goals. A mutual fund appoints a fund manager to manage the money, invest and make profits. First-time investors can save money and time, investing in mutual funds.
SEE ALSO:PostComplaints On IndianMoney If You Are Cheated By Insurers
Mutual fund distributors act in dual capacity. They do not follow the rules, Keeping at arm’s length. This results in conflict of interest. Mutual fund distributors pretend to represent your or investors needs, but actually represent mutual fund needs. They cheat you by not meeting your financial needs.
Mutual Fund distributors cheat you to earn commissions. Bank executives also mis-sell mutual funds to cheat customers and earn high commission. Mutual funds assign a dedicated marketing manager to banks, who then assist bank relationship managers sell mutual funds. These bank relationship managers mis-sell and cheat innocent customers.
SEE ALSO:Post complaints on IndianMoney if you are cheated by bank
SEBI which is the mutual fund regulator has a website for ‘investor complaints’. You can register a complaint against mutual fund with SEBI through SCORES. Let’s take a look at registering complaint against mutual funds on SCORES.
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AMFI or the Association of Mutual Funds in India has a website www.amfiindia.com. Visit this website and learn on mutual funds, various mutual fund schemes, types of mutual funds, total expense ratio of mutual funds and management of mutual funds.
AMFI educates you and other investors on the benefits of investing in mutual funds. AMFI runs the highly successful program, Mutual Funds Sahi Hai, which says you can invest in mutual funds via SIPs with just Rs 500 a month and a lot of other themes.
Educate yourself on mutual funds so that no mutual fund distributor can cheat you. Want to know more on mutual funds? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Are you cheated by mis-selling? Lodge a complaint on Iamcheated.com which is a free online consumer complaints portal, which registers consumer complaints online and helps resolve them. If you have been cheated by mutual fund or if you do not receive any response from them, you can post your complaint on Indianmoney.com complaints portal IamCheated.com.
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