How to Recognize a Valid Mutual Fund Distributor?
With the application of new regulations regarding the categorization of mutual funds, many of them are undergoing the process of change. A large number of schemes have got new names; where for some there has been a change in the category and others have got revamped portfolios.
As a result of these changes, there is an aura of confusion among the investors who are unable to find the solution to what to do with their mutual fund holdings. In such a situation, the big market players suggest taking advice from an experienced financial advisor who can guide you on your investment decisions. Let us understand the qualities you should look for before approaching a mutual fund distributor-cum-advisor.
How Qualified and Experienced Is Your Distributor?
Qualification and experience form the base of trust among the consumers. It needs a great amount of proficiency and maturity in keeping an appropriate balance in the asset allocation, understanding the behavior of mutual fund schemes, and analyzing the effects of changes in portfolios. This, therefore, demands an experienced distributor with a highly qualified team having good knowledge of various asset classes. One such renowned brand is MySIPonline which promptly identifies the suitability of products as per your requirements and provide them as and when required.
Is the Distributor or His Team Accessible?
When it is the matter of your money, building trust is very important. A distributor whom you are entrusting to park your money with, should be accessible in the times of need. The concerned person or team must be available to answer your queries in a reasonable time period as time is essential in the financial world. The team at MySIPonline works 365 days a year. The platform makes sure that the consultants are available to solve the queries of investors via any of the mediums viz. personally, email, or telephone.
Is the Distributor Unbiased and Retains Integrity?
There are various mutual fund companies offering hundreds of schemes to suit different investor profiles. Choose a distributor who is unbiased and suggests the products from all the fund houses based on your investment needs. Since finances and investments are confidential things, we, at MySIPonline, try to cater you with unbiased opinions and assure to retain integrity of the information you provide us.
What Does the Past Track Record Say?
Since the market is cyclical in nature, a distributor who has gone through all the types of ups and downs of the market has an added advantage. There has been no formal rating or ranking system to help investors choose the most knowledgeable distributors in India. Hence, one of the ways can be asking around for referrals from friends and relatives or using social media websites which can provide in-depth information on distributors’ strengths.
How Does the Distributor Compensate?
There are different service models prevailing in the mutual fund distribution industry. For instance, some of the advisors gather commission from the fund house for every investment in their favor. Alternatively, some charge the investors for the service and the time they spend on your personalized requirements. Some of the online portals like MySIPonline provide free of cost services to construct a financial plan. The guidance of these seasoned financial planners is based on the data gathered from you. A comprehensive financial plan requires effort. And a skillful distributor is the one who takes into account your risk-taking ability, future needs, and life goals and makes suggestions that suit you.
