why not UTI & SBIMF

POSTED BY vimal vinod singh bhadauria ON June 12, 2012 11:11 pm COMMENTS (4)

i regularly read this forrum but one thing i can’t understand.
1- why so many CFA LIKE YOU all not suggesting utimf, sbimf , lic etc??????.
2- is uti ,sbimf working under SEBI or not????.
3- is no mutual fund in uti ,sbimf is good & giving better return ???

One thing i will make you clear is that i am not any agent or any supporter of any AMC .

BUT this queation have arrived in my mind.

Plz give your views on this matter.

4 replies on this article “why not UTI & SBIMF”

  1. vimal vinod singh bhadauria says:

    my intetion is not to hurt anyone or not to finger out any one.IF ANYONE HURT BY ME I AM REALY SORRY FOR THAT . You peoples are doing a good job to educating peoples like me. I am totaly illterate in financial planning . I by chance come to this forrum and learning daily new things from you all.
    Incidence is that, i am living in very small city,and there financial planing is nobody knows. Reading this forrum i decide to start investing. Before that my investing is ZERO. some insurence agent advice me to invest through ulip and without any future thinking, i start ulip. When in december last year i come in touch with jagoinvestor i start an SIP OF 1000 IN UTI DYF(G) & 1000 IN HDFC TOP 200. NOW when i decide to invest in IDFC PREMIARE EQUITY FUND, i reached to that agent to invest my money in IDFC.there he told me why i am going to invest in HDFC, icici, idfc and so on, not in UTI AND SBIMF.I said that these are good funds having good records. He says uti & sbi are govern by govt. At that time this qns come to in my mind,than i asked it you all. That was the matter.

    1. Ramesh says:

      @ Vimal,

      No one is hurt.

      Apart from UTI and SBI, there are LIC, BOI, Baroda Pioneer, Union KBC too which have govt as the main promoter. Why not buy schemes from those.

      However, there are few things which I would like to tell you:
      1. Govt managed things are by definition not optimal for individuals (like you and me). Govt manages things in accordance with its own interests (or the interests of the current govt). It is futile to expect a govt (this does not relate to Indian govt only, includes all govts.) to manage things according to the best interests of individuals (Call me an anarchist!!).

      2. The above is true for mutual funds, in which if the scheme does not perform, it is the scheme holders who suffer. The same can happen with any other AMC too, so you have to see the quality of the AMC people and their practices and methodologies.
      3. The above is true even for other things like insurance (LIC) and other PSUs. Basically, govt takes money from citizens and utilizes it into its companies / schemes and other expenses. Do you think, if you are asked to manage money of others, you will do the same amount of diligence as compared to managing your own money. Will you as an individual, pay more attention to the welfare of other children, rather than your own children. Just think about it.

      For any agent, the acid test which you can do is, the scheme / MF / ulip or endowment plan in which he/she has asked to invest, if the agent himself investing in it. If no, you can say no very easily. If yes, which is very rare actually, make a double check (or ask here).


  2. Ramesh says:

    1. Why do you think, we recommend other funds, and not from these AMCs? What is the real reason you think?

    Do you think, we are paid by them? How will that happen? You just know our names and our email / other online contact addresses (same for the AMCs). No AMC will come and pay us money (It will be good, though. Who wants to say no to free money!).

    Even if we are agents, we will not be paid money unless your folios have money invested with our name as the agent.

    I am asking you since tomorrow someone else will come up with a similar thing about insurance products and so on.

    2. They come under SEBI. So does every broker and other AMC. Does anybody coming under SEBI means they are here to make you money?

    3. If you find there are good funds in those AMCs, please invest in them. We just give an opinion here, it is for you to take / leave it. You are the one who is responsible even if you follow our opinions.

    It is your money and your own responsibility.

    Hope this clears things for you.

  3. Dear Vimal, first of all a general clarification –

    Dear Manish & dear Nandish, the owners of this site are not CFA or any other financial degree holder.

    Next in line – dear Ramesh is a Doctor by profession & Myself (Ashal Jauhari) is a Chemical Engr. by profession.

    Now for your query for not advising funds from the named AMC, the answer lies in the long term performance of the funds from these AMCs. Please try to understand, we are not for or against any AMC, we are with YOU, the investor only.

    Hope you ‘ll understand.



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