Sunday, November 14, 2010

TRAIL ON SWITCH

HAI TO ALL FRIENDS,
 
 
ITS VERY INTERESTING AND HELPFUL TO READ THE MAIL, ITS MOST INFORMATIVE AND CLARIFY ALL OUR DOUBTS.
 
I AM HERE POSTING A DOUBT, CAN SOME ONE REPLY ;
 
THE EQUITY UNITS SWITCHED FROM ONE BROKER/IFA TO ANOTHER BROKER/IFA - WILL THE SECOND BROKER/IFA GETS TRAIL COMMISSION ?
 
LET ME TAKE AN EXAMPLE : INVESTOR BALAJI HAD INVESTED IN HDFC TOP 200 WITH BROKER 'x', AND I AND IFA LOOKING AT BALAJI'S PROFILE I TAKE REQUEST TO SWITCH INTO HDFC EQUITY....... WILL I GET THE TRAIL ?
 
SOME ONE (FROM THE AMC) SAID THAT FROM EQUITY TO EQUITY I WILL NOT GET TRAIL, BUT THE SAME IS SWITCHED TO LIQUID/DEBT AND AGAIN INTO EQUITY - ONLY THEN I RECEIVE THE TRAIL. IS THIS TRUE?
 
PLEASE
  
 
D N PRASAD
MYSORE, KARNATAKA

9 comments:

  1. Dear Sir,

    Normally when there is a switch from one scheme to another it is treated as redemption in one and purchase in another. So the Trail should be payable to the new broker. But from what I hear there is no uniform policy on the same each Amc has its own rules in place.

    Do correct me if I am wrong.

    Regards
    Srinivasan S
    MONEY KARE
    At Money Kare,
    We Care for your Money
    Your Professional Investment Advisors
    Mobile No. 9841016902

    ReplyDelete
  2. Hi,

    Mr.Srinivasan is right,more I added that some AMC pay upfront and trail both in switch transaction.

    There is no uniform policy very to amc to amc.

    --
    "Time in the market is more important than timing the market"
    Thanks and Regards,
    JIGNESH V SHAH
    SURAT
    +91-9374713101
    OFF:0261-2478621 AND 0261-6644336
    HAPPY INVESTING!!

    ReplyDelete
  3. dear mr.prasad

    u get trial only if u switch the fund from equity to liquid and again
    back to equity after changing broker code

    regs
    venkataramani/genuine investments/cochin
    0484-2381171/4028681

    ReplyDelete
  4. Dear Friend,

    As per SEBI recent norms change of broker,no broker will get commission.The AMC will pay the trial,commission etc., to INVESTOR education fund.So it is advisable to convince your client to start a new folio under your broker code.

    thankng you,

    Yours truly,
    E.jayaprakash

    ReplyDelete
  5. DEAR SIR,

    Y TO Z : YOU WILL NOT GET EITHER ANY COMMISSION OR TRAIL.

    FROM FUND TO FUND YOU WILL GET TRAIL COMMISSION. OK.

    REGARDS,
    C N ANNADURAI

    ReplyDelete
  6. R/Sir,

    If i answer to ur question then the anser would be:-

    You will get the trail if you are switching equity units from one broker to yuor broker code. Only the fact is u wont get the upfront.
    If u switch the equity units to debt fund & then switch to equity fund then u will get the upfront as well & u will be also entitled for trail.

    ReplyDelete
  7. Dear Sir,

    In case of HDFC if you switch funds from equity to equity of different distributor or if it would had been your investor you are entitled to get upfront comm., and after the switch process the trail would be directed to you from day 1.

    Thanks & Regards,

    Alok Khanna

    128/50(I), K-Block,

    Kidwai Nagar,

    Kanpur - 208011

    (O)-915122616446

    (M)-9336337677

    ReplyDelete
  8. According to my my knowledge, it's not true.

    If the swiching of AUM is done through the request letter of Investor then
    no one gets trail.

    But in case of switching from one equity scheme to another equity scheme the
    trail is definately payable. still if you want, give me the name of the AMCs
    for which you have doubts for such cases, i will ask my compliance person to
    check it.

    Regards
    Jigar Parkeh
    Prudent CAS Ltd.

    ReplyDelete
  9. Dear Mr. Prasad,

    Yes. What the AMC said is correct. It's better u don't take such chance ever. Because it means- birds of same feather eat one another'S flesh.It's Against fair trade practice.

    Regards.
    S.K.JOR

    ReplyDelete