Posted On Friday, Sep 23, 2016
Before we launched our flagship fund in 2006, we approached distributors to understand how they could help us better serve our investors. Unfortunately, they were more interested in what we were willing to pay them to sell our fund - commissions that they of course would not disclose to you.
Then and there we decided we would take the direct-to-investor route. Knowing that this would not be easy, we trusted our decision to do what is right - for you as our investor, for our conscience and for a Swachh Mutual Fund industry. As we have always said: we are not against the distributors; we are against the opaque distribution system that prevents you from knowing what you're paying for their services.
And so we have fought. For 10 YEARS, we have fought. We have fought for transparency. We have fought for investors' best interests. We have fought the system of hidden commissions that every other mutual fund house - whether owned by a bank, a finance company, an insurance company, a local industrial group or a large global multinational group - has indulged.
What is the total payment we've made to distribution channels over the past 10 years? ZERO. We are the ONLY Fund House that has refused to pay commissions to distributors and IFAs because these distributors have refused to disclose this commission to their investors and clients. Do not mistake our mission: we believe everyone has a right to earn income, but we also believe that every financial intermediary has an obligation to let their clients know the fees they earn. A transparent playing field is a level playing field. You deserve that level playing field.
While we have fought tirelessly, the others have lobbied hard against transparency. Now the verdict is out, dear investor: they lost, and YOU won. SEBI has forced the mutual fund industry to disclose the gross commissions paid including all direct monetary payments and other payments made in the form of gifts/rewards, trips, and event sponsorships. Beginning October 1st, it is mandatory for every fund house to disclose on a half-yearly basis the commissions that they've paid. Our stance on transparency - which is what you deserve - stands vindicated.
So tell your friends: we will always keep fighting the system to ensure that you, the investor, always benefit. As Quantum looks to grow aggressively over the next several years, we hope to build on the loyal support our investors have provided us these many years. For those of you who are yet to invest, we hope victories like this convince you that we are here for YOU.
So congratulations on YOUR win, and hope for many more to follow!
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.
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