Well written!
I think above statement explains how distributors may go about it and also that would serve purpose of Mutual funds wanting investors to withdraw in between so that mutual funds could lock their share of profits…like you mentioned above…
Bottomline is until investors do not educate themselves, its very difficult for anyone else to help them…
At least in case of mutual funds, inspite of all such leakages, the net returns long term investors get is much greater than most other asset classes…but still good to see regulatory bodies thinking for betterment of common investors!
On naïve question…my relative had an old dividend base MF and he wanted to “switch” it to growth based for same fund…I went along with him to the AMC office as he had it paper based…they informed that any “switch” is actually a sell (withdraw) and then Buy…so just curious which other “switch” you are refering to above that would not fall under a sell and then buy?..Thanks!
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