POSTED BY February 26, 2013 5:20 pm COMMENTS (8)ON
I have been an active SIP investor with DSP, HDFC, Birla Sunlife, IDFC and ICICI over the last couple of yrs. This forum has been very useful for the kind of mutual funds that we should be looking at. Thanks to Manish and the team.
I wanted to share some experiences over the last one month. I have the HDFC ISA through which my investments are routed. In the month of Jan this yr when I wanted to renew my SIPs I thought it fit to make DIRECT investments with the AMCs and close the ISA. HDFC Bank said that they cannot close the ISA till the investments are tied to them and they cannot take the change of broker code requests.
I gave the Broker code change requests at CAMS Hyderabad requesting the respective AMCs to change my broker code from the current HDFC Bank to DIRECT (ARN-0000). It has been more than 6 weeks and see what happened along the way.
DSP changed it in less than a week (Superb). I had to call HDFC and Kotak repeatedly after which the broker code was changed to DIRECT. I had to explain them what the request was for since they thought it should be a switch request.
I was stuck with Birla Sun life, ICIC and IDFC since all of them rejected the requests saying that the request was invalid and they cannot change the broker code to DIRECT. This I came to know after repeated calls to the customer service. I then gave the requests again directly at the AMC offices this time instead of CAMS. I confirmed with the executives regarding the requests and a few phone calls from them to their superiors after which the requests were taken telling me these are valid requests and will be executed. It has been close to 10 days now and again repeated calls am being told that this cannot be done.
Infact Birla, IDFC and ICICI went to the extent of telling me that the regular funds cannot exist without a Broker code and hence the request cannot be executed and I will have to switch the funds to the Direct plans…pathetic to the core.
So much of information in the public domain available regarding the DIRECT broker code that many of the AMCs does not even understand…
With this experience I figured out 2 things. Stay with DSP, HDFC AMC since I feel that they atleast understand the nuances of the business or atleast understand the requests given by the customer. Invest directly with AMCs even if it means you have to spend that additional time.
The whole channel partner business is a mess. It seems that the only way out is to redeem…