A superb buddy of mine just lately obtained a 10-page ‘Consolidated Account Assertion’ (CAS), from NSDL by way of e-mail. For these of you who should not accustomed to CAS, test this FAQs.
My buddy was undecided methods to learn and make sense of this report, so he requested if I might assist me learn by means of his assertion and assist him perceive the main points higher. So we sat collectively and dug into the report.
As anticipated, the CAS contained all the main points of the transactions he had performed within the securities market over the past monetary yr. This included transactions throughout shares, bonds, authorities securities, company bonds, and mutual funds. The report was fairly easy to know. Simply after I was about to shut it, the part beneath his mutual fund funding caught my consideration.
Sadly, this buddy of mine nonetheless continues to spend money on Common Mutual Funds by way of his agent, regardless of me giving him all of the gyan! Anyway, that’s one other story for one more day
The CAS report very promptly studies the commissions his agent earns by all of the investments my buddy makes each month, and the commissions weren’t small! To set the context my buddy makes an funding of Rs.40,000/- each month break up throughout 6 totally different mutual funds.
Along with his permission, I’m posting screenshots of sure sections of his CAS statements, hopefully, this could persuade you why direct is a a lot better choice than common!
That is the intro web page (also needs to provide you with a perspective of what a CAS assertion is)
That is the snapshot of all DEMAT accounts held towards your PAN and all MF folios you maintain. DEMAT accounts and MF Folios are separated with single holder and joint holders. This additionally provides you a fast view of consolidated portfolio worth –
I’ll skip a number of the different sections on this report and shifting on to the MF part.
On this part, the CAS report particulars the funds you will have invested in and the respective commissions you paid the agent (agent is recognized by his title and his ARN quantity).
Discover, there may be one direct MF, which I’ve highlighted, see the commisions paid
Listed here are extra fee paid particulars –
I’ve consolidated his yearly SIP funding and commissions paid info within the desk beneath –
So this man has basically paid a whopping Rs.15,507/- as fee over a complete yearly funding of Rs.480,000/-. That is 3.231%, which I believe is sort of huge.
I do know the professional common MF people will bounce at this and recommend that I shouldn’t take into account the yearly funding however moderately the whole gathered worth within the fund. However that is precisely my downside
Why ought to I take into account the gathered wealth? When pay commissions for the funding made prior to now? MF funding is for the long run, it implies there must be no any meddling with the MF portfolio, so why pay commissions perpetually to the agent for nothing? What subsequent function is the agent enjoying right here?
Your feedback are welcome!