Direct data was indeed incorrectNo. of comments:18 Vijay Venkatram, Mumbai, WealthForum On 19-Feb-2013

ET had carried a story on 14th Feb titled "Direct plans garner 56% of total inflows in January", which we had included in our Industry News section. On the same day, we alerted our readers that the data in ET's article was perhaps inaccurate and that some large AMCs have taken up the matter with ET. We also suggested that ET would perhaps issue a corrigendum, after doing more homework. This has now happened - ET has issued the following corrigendum on the data inaccuracy : " "Data showing the corpus of AMCs in the table "Making Waves - Investments in Direct Plans" published in the ET edition dated February 14 was erroneous. The data, provided by Accord Fintech, was for large liquid funds, including fund inflows from direct and indirect plans and not just direct plans as mentioned. The error is regretted." The crux of the issue is that when arriving at that 56% number, total inflows into liquid funds - direct plans as well as regular plans was taken as inflows into direct plans, which grossly distorted the percentage. We are happy that ET has issued the corrigendum and set right the inadvertent error that its reporter made.

Submit Your Comments

"We trust that you will avoid using harsh language and will refrain from making unsubstantiated allegations against individuals and firms. Your constructive feedback and opinions are very valuable to all of us in the industry. "

Comments Posted
Vinita ARN NO :7758 indore, 20 Feb 2013

One needs support and help in almost all areas of human activities because of lack of time, information gap etc and that is how human life goes on. Further load of information makes it difficult for an individual to take a decision unless he has some to guide him and with whom he can discuss the matter . Here comes the role of advisers. IFA community therefore need not be afraid of direct plan. It is definitely not going to make much impact.


even in CHANDIGARH edition they are showing 85% in direct plan...

Prakash Nigam ARN NO :12371 Kanpur, 20 Feb 2013

Great Job.....

C I J ARN NO :0000 AbuDhabi, 19 Feb 2013

Dear Shashi C Declaring the Direct plans assets are not a smart idea. Herd mentality of the customers will work out. I mean , if new customers find a lot of AUM in direct plans they also will surely go for direct plans. If somebody want to calculate direct plans AUM then let them calculate their own. That''s good.

Shashi C ARN NO :3436 Bangalore , 19 Feb 2013

I feel Sebi and Amfi Should make it mandatory for the AMC''s to declare the Direct Plan assets in each asset class on a regular basis to understand how much of the business we as advisors are loosing. What ET announced may also be correct why this patch up later or what was the hurry in doing it without proper info or is it the pressure from AMC''s ? only time will say

wealthcare Investments ARN NO :77780 Mumbai, 19 Feb 2013

Dear Vijay, 1) Is media responsible? 2) They generally publish such figures.. Some time back there was article by MINT that comm paid are as high as 1.5% to 2%.. without mentioning anything about whether all distributor get such high comm(small distributors are many and they find it difficult while client engagement), whether its first yr, whether across assets or equity only.. such info were missing!!! 3) Do they have right to publish comm payable to agents? does it happen in any industry?? At best, They can publish the trail comm payable to average distributor and not BIG distributor.. 80% distribuots are small only..


No, doubt vijay has done a good job but one thing we can notice that the percentage of direct plan is now countable means it is increasing.

Sam Koshy ARN NO :5727 KOLLAM, 19 Feb 2013

It''s appreciable ! But the damage created by Rajesh Mascarahnes of Economic Times is big. I was surprised to see that article in the morning and forwarded it to one of the AMCs. Within half an hour I received calls from the AMCs top most fellows. I''m proud to say I''m associated with this AMC. I felt hurt by the news. The management reassured that they are in no way connected with this news. It''s surely a flawed article. I requested the CEO to contact wealthforum and send a correction through wealthforum itself. He has taken it up ET and they given a corrigendum today. I''m very happy in seeing this and thanks to Vijay also. Medias must do more homework before publishing an article. Are medias taking money for publishing wrong data ? The damage created by medias are not measurable . They must realize howmuch they hurted thousands of people by the wrong datas !

NARAYAN SINDHEE ARN NO :29202 solapur, 19 Feb 2013

In order to know the popularity of investment through Direct mode, what is important is the number of investors, rather than the amount invested.The amount invested, through direct mode,will normally depend on investments by HNI clients.They will also include, huge investments in liquid funds,by banks,corporate houses,HNI,and big industrial units.These details are irrelevant to know the behaviour of a normal investor. After all many times the conclusions arrived at in statistics are wrong.It is rightly said "What Statistics Reveals Is Interesting,What It Hides Is Important"

a.b.deshmukh ARN NO :0033 aurangabad, 19 Feb 2013

We get Pune edition but it is not there. On E.T website only old news is under discussion and no corrigendum. E.T.should correct the news on web

DS VAYEDA ARN NO :1351 BHARUCH, 19 Feb 2013

Hope, ET will learn some lesson and will avoid casual approach.

Vijay Venkatram ARN NO :WealthForum Mumbai, 19 Feb 2013

The corrigendum was issued today (19th Feb) on page 5

a.b.deshmukh ARN NO :0033 aurangabad, 19 Feb 2013

On what date corrigendum is published ?

Vishal Rastogi ARN NO :51920 Patna, 19 Feb 2013

The media should be more methodological before publishing any such data...................any way thanks for the correction done.

YOGESH J SHAH ARN NO :3689 pune, 19 Feb 2013

Also the Brokerage/Commission rate needs to be clarified as majority amount is Liquid the rate would not be .50 to 1.00%.

Nilesh KAMERKAR ARN NO :49016 Mumbai, 19 Feb 2013

Thank you Vijay.

c sathish kumar ARN NO :1619 chennai, 19 Feb 2013

So what is the correct percentage. Instead of keeping guessing we would like to know.

prabhu ARN NO :12746 kolhapur, 19 Feb 2013

ET is always eager to pounce on anything which is against distributor community. For example their article on : SHUN the distributor" etc. I think et has baised view against the distributor and in a process they confuse the real Investor

Recent Videos

Recent Articles

Copyright 2017   All Rights Reserved.Wealth Forum Ezine