FundsIndia.com Review

I came across FundsIndia a couple of months ago,via their extensive ads on Indian financial blogs.A bit of asking and I found out that they were mutual fund distributors.At the time I was like ho-hum,they are another of the lakhs of mutual fund distributors/agents around,perhaps a bit bigger than many others but probably no worse and maybe even better than many.

Personally I am bargain-minded ,so spartan servicing works for me.Also I tend to invest for the long term and small amounts compounded over the long term cause sizable differences in returns ;so I am fanatic about expenses.So direct investments in mutual funds are my thing-Link.So I knew I was never going to use their services to buy mutual funds.But I considered them as perhaps being useful for people who like to indulge in full service and are willing to pay for it.I even considered carrying their ad on wealthymatters.

As you know, yesterday I applied for the NHB Tax Free bonds.I knew that the previous privately placed bonds from this organization got subscribed on the first day.So I knew that I had to rush to get my application in.I decided to use the FundsIndia platform as I could apply online and save on the commuting time to Dalal Street.Commission was no consideration as going direct was not an option.

So I spent the time signing in to the FundsIndia platform.It was a breeze.The problem cropped up when their system disallowed subscription below 5 bonds even though the prospectus allowed purchase of even 1 bond by retail applicants-Maybe an error or a decision only to service bigger sales.As I am using the interest of these tax-free bonds to pay the premiums of some insurance policies,I had no interest in buying too many of these bonds.Also as the government’s finances get more stressed, bonds with better coupon rates are likely to become available.At this point I decided to quit and apply for these bonds the traditional way.

So far so good.If I blamed anybody for the loss of time,it was myself,for trying out something new at the eleventh hour.I was able to get in my application at about 3pm when there was still a small chance for being assured an allotment.After this point I would normally have completely forgotten the matter.But that was not to be.

I have received multiple e-mails and  telephone calls from this company yesterday and today, ostensibly to help me get started in their system and investing in mutual funds.Even bluntly telling callers that I am not happy with my experience with their system and have no interest in investing in mutual funds through them so to please quit repeat calling me has no effect.

I avoid financial product sales people like the plague. I have yet to find one who brings to my attention ,in an unobtrusive fashion,only select top quality investments after doing the required due-diligence and is able to handle the paperwork efficiently.I find it saves time if I do the work myself.I regret giving FundsIndia a number to call.In attempting to save a little time yesterday I have probably opened myself up to a lot of mass marketing calls over the years.