Most of the AMC fund managers and sales head are promoting balanced fund rampantly. Their con-call becomes a sales pitch of balanced fund and use dividend payout as a weapon to support this. Now its race to increase AUM only and competition to give high dividend yield compare to their peers. Bankers are selling aggressively this category to clients with various name i.e. monthly income, assured return, safety of principal etc. AMCs are also giving lucrative incentives, high up fronts by unique way to sell balanced funds, some of are also getting internal credits more than expense ratio of the fund. When correction will happen, how they will face to the clients, all this make a bitter experience to clients community.

I wish we have weekly or fortnightly meets to discuss such informative mails with IFA so as to develop his approach to the MF customer in different ways . I dont think such things happen .

whats wrong in mthly dividends by balance funds? Who says its miss-selling? Are not banks miss-selling MF schemes with SEBI approval? Who cares for investors? All is within SEBI circulars. When AMFI is not objecting who are others to question? Is not fund managers, IFAs and investors not aware about market correction and its impact on balanced funds? Are balanced funds not supposed to Roll on from equity to debt and vice versa? This can not be an issue of discussions.

this is wrong selling monthly dividend of balanced fund . i request all IFA do not sell balanced fund as a monthly dividend other wise you are responsible to give answer to the investor.when market will go down. In place of monthly dividend you sell SWP 7,8,9,10% for long term 8 to 10 yrs you and your investor both will be happy.AMC also stop miss selling of balanced fund as a monthly dividend .

I dont find any problem in Monthly dividend from any product, as long as the communication is clear. It is the frequency which has changed from annual to multiple pay outs whenever possible. At the best companies like Hdfc Mf can highlight the facts in a big way in news papers etc. to rule out the possibilities of any kind of mis selling.

Indeed a very pertinent point. My question is why the Fund Houses and their sales force are pushing the Monthly Dividend in Balanced Funds, why Balanced Funds are having Monthly Dividend Payout options, why some of the Fund Houses are roaming with their Dividend History and promising future dividend payouts without assurance ?????? Investors do not understand the difference between expected and assured. They, most of the time, go by past records and end up eating the mud. This is our responsibility to show them the right way. My sincere request to all Fund Houses, if you all are so concerned about Monthly Dividend Payout options of Balanced Funds, just stop it. Please dont run them to say "we are only giving options" and in turn mobilizing AUM.

Last thought on Dividend Monthly by Balance funds: Respected Fund managers are anticipating that it will be translated as proper message to investor by Their own sales team as well as distributors!!!!I think this is a wishful thinking. Are not we as an industry on a path to create UTI type of problems??? The conclusion was NOT to assure any return nor principal ...... "WHY we HAVE MONTHLY PLANS????" Just to get AUM And Now we r marketing in the same way without "assurance" And that is the only reason Balance funds are getting maximum flows. Assuring capital protection in liquid plan in 2008 has created a bubble which was burst in 2013 at higher level same bubble in Balance fund dividends we r creating.