A realty scheme delivers 3% over three years and a consumer-focused PMS loses capital. Investors never learn and eagerly put money in the next PMS pushed by their ‘relationship manager’
A big fund house recently announced the redemption of a three year real estate portfolio management scheme (PMS). Investors were happy as they got back a total of 103% of the money they invested. Yes, a pathetic return, but the investors were happy to see their principal back. Of course, it is more psychological than logical. In real terms, probably each investor lost around 30%, if purchasing power is factored in! Not a very prudent investment. Several interesting takeaways from this are:
The ending of this PMS story was still positive. Many others have lost large chunks of the principal. Still, even today, PMS continue to lure investors.
I happened to see a PMS account statement of a gentleman who had invested money in a scheme focused on the 'consumption' theme. In one year since investment, the person was down 11%, in spite of the scheme keeping cash balance of close to 45%! In the same period, the sensex has yielded a return of 20%! My guess is that there has been active churning and trading in the PMS which would have eaten away most of the money. Investors never seem to learn!
The latest among the PMS are the 'debt' PMS, which promises returns of around 20% per annum for 3-5 years. The collected money is lent to investment companies belonging to industrialists who in turn pledge their holdings in listed companies. The money is used by the investment companies to either buy more shares or to manipulate share prices. Not all the investment companies are actually disclosed to be promoter entities as per the official records. And since there are no investment limits etc on PMS, often, the entire pool of money is lent to one entity! This is nothing but pure money lending through the backdoor with huge risks! For selling these funds, the distributor can get 2-5% commission, upfront.
It is rare that PMS give returns higher than mutual funds. In spite of that, people with too much money, seem to easily get conned by the sales folk who push PMS at them because the selling commission is much higher than a mutual fund. It is time the market regulator raised the minimum ticket size for PMS to at least a few crores of rupees. Then, it is a case of the rich putting their money knowingly. Today, people with less than even a crore of investment portfolio, are being lured into PMS. Of course, they too do not deserve any sympathy, but greed is a normal human tendency and if the regulator can curb it somewhat, some investors would be protected.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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Mobikwik is confirming that they have remitted both amounts but The Branch Manager of SBI Tagore Nagar Ludhiana has declined of receipt of both entries.
pahle to wo sen. sitz. ko khara kara ke rakhta hai,
doosra aaj main jab paisa nikalne gaya to
biomatric withrool ke 10 min baad usne mujhe
1000 rs diye phir bola ki aapko pahle
bhi maine diya hai jabki maine na hi uske
khate aur na hi farm pe sign, kiya tha.
paisea lene ke baad main ghar aakar
lagbhag 2 ghante baad bazar sabji lene gaya
to ek dooshra aadmi mujhse bola ki aapko
sbi wale anil khoj rahe hain.
main branch main jab gaya
to usne yahi kaha ki aap do baar paisa liye ho
jo sarasar galat hai
, mera pmry 24 ac no . aapke bank main hai,
aap jante ho mujhe poori acchi tarah,
aap jara is csp wale ko samjha dena ,
main yah compl. farwad kar raha hoon
aapke agm, gm, tak.
MOB- 9534118468
card holder name was soniya immacualte A
Kindly reply me back as soon as possible.
And No One Given me the Satisfied Answer even Branch Manager Also.
I went For An education Loan For Higher Studies in abroad about 3 months Ago.
When's i given the File As they Required documents & all Formalities
After 1 month of submitting file they told me that even Not check the file.
I had Arranged the TCR & Valuation Report Of My Property as they Told me.
After Credit manager Told me That I'm Transferring to another Branch So It's not Possible to you Sanction a Loan.
And After that no One Gave me responsible Answers.
Branch Manager Is very Rude.
Very Pathetic Service. Never Recommend to Anyone to go For Any type of Loan To the SBI.
And After I went For Another Govt. Sector Bank They'd sanctioned my Loan Of 20 lacs In 25 Days. And the SBI guy took 25 days to See the Formalities & To See the Documents.
Never Trust SBI for this Kind Of Careless Behavior.
His Wife Picked Up D Phone Nd Said "He Died Last Week"..
Next Day invester Called Again..
...
She Again Pickd Up Nd Said"I T0ld U He Died Last Week
He Called The Third Time.
The Wife Said"He Died.Y D0 U Keep 0n Calling Again Nd Again?
invester:"Sun K Acha Lagta Hai" :
RMs are the smartest tricksters moving and breeding on Indian banking soil (rather granite floors). They get their salaries from the banks and kick backs (respectably named incentives or target bonuses etc. in various forms and hues) from the fund houses and ULIP companies. And when it came to problem (even of their own making) solving, it took me about three months of frantic persuasion thru emails (I reside overseas) to get it resolved by one of these banks with at least four different persons from their so called customer services cell appearing on the scene and driving me mad. Does one need further proof of the doings of this new breed than the current fraud and swindling done by one of such smart asses in Citi Bank, Gurgaon? Imagine swindling corporate bigwigs? That is the stuff that this new breed called RMs is generally made up of. Bless the good old poor man's SBI, which sleeps well and also lets you sleep well too (and do not have granite floors which can make you slip and fall - pun intended)
Better check out your RMs, he or she may be least interested in his or her job of handling your account!! Having to manage an account of a customer, who knows a trick or two of the investment business and does not allow to be sucked, is a very a very boring, unproductive waste of time for him/her.
I do not think you have sufficiently experienced the services of Wealth managers.
Try Kotak Mahindra Bank Ltd Wealth Management services. They will be at your beck and call...specially if you are an HNI . Call them and they are at your door step much faster than the most effecient courier in the country. After you have contracted business ( In my case DUPED) they will not take your calls. If you send emails they will delete "With out Reading" If you send letters by speed post AD you get no reply....possibly they have a very effecient shredding system.
And GOD SAVE , one could turn from HNI to LNI
All this in the name of "CORPORATE GOVERNANCE" ...."SHARE HOLDER VALUE".... "INVESTOR PROTECTION"...."HUMILITY"...."SIMPLICITY"
Majority of the RMs and WMs can be painted with the same brush - carbon black! The reason? Same lot is hopping from bank to bank and the social net working amongst them is a potent weapon that they use to identify their prey. With the entire system in the country infected with the deadly viruses like rajas, kalmadis, etc. what can hardly expect things and public life and services at large to get any better. The way the banks and other institutions, working in concert with each other, are defrauding people,, it has become impossible to take anyone or anything on its face value!
Because main aim of PMS to earn money for brokerage house and not FOR clients.
All giant TELECOMs are asking their cousins to form new companies to sell Bahjans and Tunes send subscription message disguised as something which half of the users will be forced to respond and thats it. They will empty out the prepaid accounts to zero with no recourse whatsoever.
Jesse Livermore
I sent a mail to to Mr.Vikas Chimakurthy Director - Investments KOTAK REALTY FUND not to lure investors to invest in KOTAK REALTY FUND as I had lost a fortune trusting KOTAK.
The mail was deleted by him with out Reading. You can understand the fate of investors once they have been duped.
GREAT CORPORATE GOVERNANCE !
They cannot face criticism for the misdeeds.
===========================
Your message
To: Vikas Chimakurthy //Kotak /Realty Fund
Cc: [email protected]
Subject: Your statements luring investors to invest in Kotak Realty
Funds.
Sent: Thu, 30 Dec 2010 15:40:41 +0530
was deleted without being read on Fri, 31 Dec 2010 09:29:09 +0530
Was enough for Kotak to delete the mail. The mail was sent by me. The comments were posted 19 hours ago. Please read this page.
On top of that, they deliberately or otherwise left undefined terms in the contract and during the tenure they and their Client Service REP, interpret at their will, changing stance as their mood dictates.
No transparency at any level, no stating of facts at any level. But they will have all the muscles to fight any investor, if the need arises, in court or otherwise. GOD, will you ever bless my INDIA - Please, do so once in a while.
The TEAM that came for presentation was mainly highlighting D P. And the actual agreement with all the T & C was presented after they have 15% of the money. A ethical company while drafting agreement shall try to be fair to both the parties and when ever a special case situation arises where the contract is silent, they should be taking a logical and fair approach and in most cases not assigning the benefit of doubt to themselves. But its not the case. HDFC Bank RM, sounded like a fresher to me and came with another manager to me selling ULIP and was presenting totally distorted terms and appropriation of funds and huge huge returns. Since it was a huge huge packet of lies so I became suspicious and asked for BM's written statement to that affact before I impart with my money. Then next day, only half of the original team arrives with another complicated product and stated that ULIP that they were selling yesterday, is no comparison to the new product. But that was only since they were caught red handed while mis- selling.
Miis-selling on their part is a very very common theme and for all those CRIMES, they have one standard remedy and that is a new face will come up and feel sorry and after few minutes will pass on another product to you, with no resolution for the previous except 'I am so sorry that iy happened' and present that the new face is the most honest of them all, just like all their previous team members were. They are all trained to gout in the field and perform just ONE task. Dupe the HNI;s to strip them of H and later N as they become only I's by when HDFC Bank then starts picking on the left over flesh (money in the accounts) just like Vultures on the pretext that you are no more a preferred customer as per the distorted norms and new definition of preferred customers and they have unrestricted access to your money lying in your accounts.
WHY SEBI is restricting such access to Brokers while no such restriction to the Banks. They change the definitions to their benefits and do not need to rasie any invoice .. just dip into the account and write some alphabets with no explanation and DA ... DEBIT.
HDFC and HDFC Bank ...they are both forming a Gang in the market and taking everyone for a ride. Also the press, for presenting a clean face to the public (new public who have not yet imparted with their money to them)