A Bank is a great place to make or receive payments. But if you are using the bank as a channel for your investments, then think about this in the short post here.Are You getting Value for crores collected Banks?
Banks that have sponsored Mutual Fund companies (or AMCs) have collected Rs 800 crores as commission from their AMCs. This number has gone by by 83% over the last year. So if you are investing in Mutual Funds through your bank, pause and think – are you getting value?
If the bank is collecting more from its own sponsored funds then is there a conflict of interest? Are the employees of the bank incentivised to ‘sell more’ of their own Mutual Fund instead of offering the best of choice to their customers?
Here is some data:
|Name of the fund house||Commission paid to sponsor banks in FY 2016-2017||Commission paid to sponsor banks in FY 2015-2016||Change||Change%|
|ICICI Prudential |
Let us simplify the main sources of revenue for a bank.
This is important simply because you should be getting the best value for your money! You decide if of the four options above which one suits you the best. Quite clearly Direct Mutual Funds is the way to go and you must choose a platform that is easy to use, gives you good advice and provides great service.
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