Thread by @IamMisterBond

Let us do Role Play with #SEBI officials (SO) - they play the role of Investors and we of course are MFDs

SO
1) How much amt shd I invest? 2) Which Asset Class shd I invest?
3) For how long shd I invest? 4) Which AMC & Schemes shd I invest?
5) When shd I exit?

MFD response👇

MFD Response:
1) Spk with RIA
2) Search in Google
3) Search on Social Media

Following queries are compiled based on past experiences. Not to demean anyone. Just bear with the examples as they are only to showcase the futility of current MFD vs RIA notification.

DIY Investors, do not take these personally

SO: in Dec 2017: Small and Mid Caps have delivered 50-60% returns over last 1 year, thinking of adding onto these investments. What's your view?

MFD:
1) Spk with RIA
2) Search on Google
3) Search on Social Media

Outcome: Small & Mid cap collapsed in 2018-19

SO: on 23rd March 2020: markets have collapsed. I want to avoid further losses in my portfolio. Redeeming everything from Equity MF schemes.

MFD:
1) Spk with RIA
2) Search on Google
3) Search on Social Media

Outcome: markets recovered handsomely from March 23 onwards

SO: in 2013: interest rates have gone up to 9% +. All our debt schemes have delivered negative returns over past 1 year. Getting out of Debt. Your views?

MFD:
1) Spk with RIA
2) Search on Google
3) Search on Social Media

Outcome: interests rates softened from hereon

SO: in Jan 2008: markets are on absolute roll. Predictions are that Sensex will touch 25000 by mid year. I want to go all out in Equity further. Your views?

MFD:
1) Spk with RIA
2) Search on Google
3) Search on Social Media

Outcome: Sensex collapsed from 21000 to 8500

SO:a Senior Citizen:FDs have matured. Markets are on a roll (Jan 20). I want to invest in EQUITY which will give me far better returns than current 6% in FDs. Your views?

MFD:
1) Speak with RIA
2) Search on Google
3) Search on Social Media

Outcome: Markets collapsed in March

Hope better sense prevails and this Notification is reversed.

No investor goes to MFD just to fill forms & not expect advice and hand holding during volatile times.

Managing emotions is more important than managing Money.