Originally posted by deveshkayal a) Business channels b) Brokerages c) AMC's -------------------------------------------------------------------------- Rel Cap would gain!!!!

Edited by basant - 05/Jun/2007 at 10:31pm

Over the next 3 years Madhu Kela of Reliance Mutual fund expects the total net inflow of equity through MF's to cross Rs 3 lac crores.

Edited by basant - 13/Jun/2007 at 4:56pm

Originally posted by kulman Over this weekend, came across couple of MF advisors/agents whose customers are mainly IT/ITES/BPO employees. The amount of response they are getting from young people for SIPs, STPs in existing schemes + NFOs is huge. Meaning that this is the long term money coming into capital markets.

Kulmanji,
Your first information is right about these people investing surplus money in MF through SIP/STP.

However, based on my close interaction with these guys as well as MF Agents, there after behaviour is as follows:

1. They continue investing till the time market is rising/ expected to rise.
2. A month or more of down time for them is very difficult to accept.
3. they are used to see NAV almost every second day anticipating rise in the value of fund they have invested last week.
4. If a person has invested for more than 1 yr and has received decent gain (say 25%+) the MF Agent adivises them to withdraw the money to avoid any loss. This creates a golden opportunity for agent to make him invest in NFO if market does not drop or in some other popular fund if market falls little bit. We all know agent achieves his goal.
5. Generally these agents starts bringing new story of some successfull fund doing great in the current time and lures the person to start new SIP. once he gets trapped after some time, he will ask him to withdraw money from the old fund.

The investor feels great about the constant monitoring/ help extended by the agent!!!!!!!!!!!!

It is probably very first time that on TED i am seeing many youngster from this industry being really serious/ knowledgeable about their investment.
Which has certainly changed my general opinion for them.

However, still a large community out of them is victim to those agents, who do not loose a single opprotunity to suck some commission money out of their investable fund.


Edited by us121 - 01/Jul/2007 at 5:11pm

Youngsters that you are talking about are mostly influenced by parents. A car, tax saving schemes and then real estate (aka aparment) are generally the priority.