Thread by @IamMisterBond

There is very heated debate on Low Cost vs High Cost, DITECT vs REGULAR etc. There are passionate views on both sides.

I was an Advisor till some time ago. No longer. So I have seen both sides of the coin. My thoughts on this debate:

There is No Black & White in any profession or business. Most models work at different times, for different people. Both can co-exist based on one's perception.

This debate and differentiation was created only post SEBI introducing DIRECT option in 2013. Till then the debate was Upfront vs Trail, High Expense vs Low Expense etc and no one doubted the importance of intermediaries in the Mutual Fund practice.

Private sector Mutual Fund Industry started becoming popular since 1994-95 onwards when private players came into this field. Till then it was only UTI which was the single largest Public Sector Mutual Fund from 1964 onwards.

No one can deny the role of Mutual Fund Distributors in popularizing MF schemes and products and bringing them to this level of almost Rs.25 lac crore AUM currently.

They have toiled hard to bring this Industry to it's current stage of success.

Of course, there have been bad apples in the Distribution channels which include MFDs, National Distributors and Banks.

One cannot paint all the channels with one brush

Instead of identifying bad apples and punishing them for their malpractices, regulator painted all with one brush and introduced DIRECT option.

Thereby creating perception that Investors have been taken for a ride and need to be protected.

I know for a fact how DIY Investors get stuck and take wrong decisions at wrong times and hurt their Financial Health.

I am privy to this as I get a lot of DM asking for help at such times.

It is very difficult to treat investing as a DIY profession. It is Individual's choice to Invest as DIY or take help of Advisors.

That does not in any way undermine a very important role played by MFDs.

So, humble request (I am no longer MFD) is to stay away from such debates, demean one channel vs others like MFD vs RIA or MFD vs DIY Investors.

Each has a role to play. If you do not believe in one channel then stay away instead of just criticizing.

I have been in this Finance line for past 35 years and 25 years in MF Industry. I have seen the hard work and contribution by MFDs, I have seen them adapting to changing regulatory environment and in spite of that, they have looked after interests of Investors with lower margins

I am only requesting one & all to desist from getting into this debate without having in depth knowledge on this subject.

If it doesn't suit you, stay away but do not criticize for the sake of it

If you do not agree with my views, ignore it. I will not respond to anyone with contrarian views. I have just tried to put things in right perspective.

Rest, readers are intelligent enough to go their own path and select a channel of investing that they believe in.