[amitk26]

Originally Posted by JMaruru

If am investing in mutual funds through ICICIDirect, will i be deducted for trailing commissions ? How is this commission calculated ? Say, If i have a corpus of 10 lakhs, how much might be the outgo as trailing commission per year.

Please advice.

What is trailing commission never heard of this before ?

AFAIK ICICI Direct levy one time commission
ICICIdirect.com

I have observed one time fee of 100 ( plus service tax) Rs on outright lump-sum MF purchase and Rs 30 + tax on SIPs.

I am switching to Citibank for MF purchases , Citibank levy no charge for single transaction upto 20K. So suppose you need to invest 1 L make 5 transections of 20K each and you will be charged 0 Rs. However for transaction more then 20K charges are 2% which is excessive I think.

[JMaruru]

Originally Posted by amitk26

What is trailing commission never heard of this before ?

AFAIK ICICI Direct levy one time commission
ICICIdirect.com

I have observed one time fee of 100 ( plus service tax) Rs on outright lump-sum MF purchase and Rs 30 + tax on SIPs.

I am switching to Citibank for MF purchases , Citibank levy no charge for single transaction upto 20K. So suppose you need to invest 1 L make 5 transections of 20K each and you will be charged 0 Rs. However for transaction more then 20K charges are 2% which is excessive I think.

Well my friend, it does seem it is not that straight forward. Even i hadn't heard of this trailing commission before.

If you have a corpus of Rs. 10 lakhs in ICICIDirect, the AMC might have to pay Rs. 10,000 P.A to the ICICIDirect as trailing commission.

Please see the screen shot below :-

[amitk26]

Originally Posted by JMaruru

Well my friend, it does seem it is not that straight forward. Even i hadn't heard of this trailing commission before.

If you have a corpus of Rs. 10 lakhs in ICICIDirect, the AMC might have to pay Rs. 10,000 P.A to the ICICIDirect as trailing commission.

Please see the screen shot below :-

Does the AMC recover this trailing commission from the Fund end customer holds or this trailing commission is payed from the administrative charges of MF ( 1.5 ~ 2.5% ) ?

[JMaruru]

Originally Posted by amitk26

Does the AMC recover this trailing commission from the Fund end customer holds or this trailing commission is payed from the administrative charges of MF ( 1.5 ~ 2.5% ) ?

It is not so clear. But either way, the bill is on the customer.

Does anyone here know more about this commission, please share the information.

[amitk26]

Originally Posted by JMaruru

It is not so clear. But either way, the bill is on the customer.

Does anyone here know more about this commission, please share the information.

The administrative charges are fixed and levied to the customer anyway. If the trailing commission is taken from administrative charges then it does not make a difference if we go through ICICI or not.

Can any one clarify please ?

[SmartCat]

Yeah, it doesn't matter whether you buy an MF from Citibank or ICICI. At the end of the day, the MF charges the 2% fund management fee from the customers. This money is taken directly from the MF corpus - so NAV of the fund will fall by 2%. I think most fund houses take this fund management fees in 4 tranches (once every quarter)

[amitk26]

Originally Posted by smartcat

Yeah, it doesn't matter whether you buy an MF from Citibank or ICICI. At the end of the day, the MF charges the 2% fund management fee from the customers. This money is taken directly from the MF corpus - so NAV of the fund will fall by 2%. I think most fund houses take this fund management fees in 4 tranches (once every quarter)

Yeah but citibank does not levy any upfront fee like ICICI for a single transaction up to 20K.

[ramki067]

Hi guys,
One novice Question. I have invested in a company and the company has now given a dividend, so will i get the dividend amount Like through cheque be couried to my home address or paid via online shares account?

Thanks,
Ramki.

[carboy]

Originally Posted by ramki067

Hi guys,
One novice Question. I have invested in a company and the company has now given a dividend, so will i get the dividend amount Like through cheque be couried to my home address or paid via online shares account?

Thanks,
Ramki.

I have an ICICI Direct 3-1 one account. There all dividends get credited directly to my linked bank account.

[kannan666]

Originally Posted by ramki067

Hi guys,
One novice Question. I have invested in a company and the company has now given a dividend, so will i get the dividend amount Like through cheque be couried to my home address or paid via online shares account?

Thanks,
Ramki.

Will get paid into your bank account directly through ECS as providing bank details for share trading is now mandatory. You will get a 'dummy cheque' with intimation by post.

[ramki067]

Thanks very much Kannan.

[vasanthjn]

Originally Posted by amitk26

What is trailing commission never heard of this before ?

AFAIK ICICI Direct levy one time commission
ICICIdirect.com

I have observed one time fee of 100 ( plus service tax) Rs on outright lump-sum MF purchase and Rs 30 + tax on SIPs.

I am switching to Citibank for MF purchases , Citibank levy no charge for single transaction upto 20K. So suppose you need to invest 1 L make 5 transections of 20K each and you will be charged 0 Rs. However for transaction more then 20K charges are 2% which is excessive I think.

Hi Amit,

This may be a late reply. But I would like to differ from you on the charges levied by investment account in Citibank. For single / one time transactions in Equity Funds, citibank do charge a service fee of 2% (for amounts less than 2 crores). If you do a SIP for < = 20000, then no service charges, but the SIP should have a minimum period of 1 year. There is no service fee for Equity Arbitrage / ELSS / Debt / Liquid Funds.

[funkykar]

Just saw the news. Sensex @20,000 points!

[amitk26]

Originally Posted by vasanthjn

Hi Amit,
. If you do a SIP for < = 20000, then no service charges, but the SIP should have a minimum period of 1 year.

I see , In the brochure provided by relationship manager I could find no such condition will clarify once more.

By the way On this thread I posted about KVB some time back , it was about 550 at that time went up to nearly 800.

KVB declared 2:5 bonus + 2:5 rights issue @150 Rs , Post bonus it is falling ( right now at 550) may go up to 500. But it is still a good investment for more 1 year horizon.

KVB has 3ed highest ROA ( Return on Assets ) and book value of approx 300. The PAT growth is one of the highest in the industry and is consistent performer for last 10 years. The PE ratio is apprx 10 where as other smaller old bank like dhanlakshmi bank trade at PE > 30 .

Also it is an acquisition target for any bigger bank so value may unlock just like what happened in case of Bank of Raj.

Only point why it was never in limelight was low float thus low volumes.
Hopefully this will improve after bonus and rights issue.


So if you have some money to invest you may consider KVB before rights issue record date wait for couple of days till it stabilizes on the post bonus profit booking and keep it for more then 1 year.

[recshenoy]

Guy,

is it advisable to get into stock market now or correction expected soon? Any underperforming stocks now.

Also is there any good IPO coming up other than coal india?