Tale of a switch request #poorcustomerservice #kotakAMC

Of late, I have been switching all my funds with various fund houses to "Direct"  mode.

I have been mailing my switch request forms through speed post and have had no hitches in getting the switch completed by the fund houses except for one.

I hold an investment in one of the equity funds of Kotak ( Thank God, it was only one). As usual , I sent a switch request form to CAMS ( investor service for Kotak).

Nothing happened for a long time and when I  got in touch with Kotak AMC , they requested me to resend the form to CAMS.

I did so, a week back and have'nt seen the switch happen. So, called up Kotak AMC an hour ago

Me: Hello Kotak AMC

KAMC : Yes sir

Me: My folio xx, need to know the status of switch request.

KAMC : Sir, No request is received yet.

Me: I sent it by speed post to CAMS and the online tracker says the letter is delivered.

KAMC : Then you should ask CAMS and not us .Please call CAMS.

Me: Is this a responsible answer ?? I will withdraw my funds from your AMC.

KAMC : Ok sir, thank you.

<<end of first call>>

Second call placed to CAMS Chennai

Me: Hello CAMS

CAMS: Yes sir

Me: My Kotak folio number is ####, Please let me know status of switch request sent by post.

CAMS: We don't have access to Kotak system, Please call Kotak.

Me: Oh they asked me to call you and you are asking me to call them#%^*

CAMS; Yes sir

Me: Can you please help me

CAMS; Call Kotak, we cant help!

I had no choice but to bang my head on the phone and disconnect. 

Wonderful service for the 2.5%charge that I have paid every year to Kotak for the last several years. !!

Chennai real estate - the 'only investment' that can "never go down" ( that defies gravity!)

Statutory Warning ;- This post is written on a lighter note and readers are not expected to take anything written here seriously . ( Probably, this disclaimer should apply to all the posts :-))

If you are looking for an investment that never goes down, is secure and gives you a compounded annual growth rate of 30% or more , "Welcome to Chennai real estate".

Most of the working class in this city has seen the property rates go up at least 10 times in the last ten years. So, everyone who buys a property in Chennai feel that they have done the best investment on earth.If you try to discourage a person who is going to buy his second or third property and tell him not to "lock" 70% of  his take home salary on "EMI", you are looked down as a fool.

Equity's lackadaisical performance and the extended bull run of real estate(over the last five years) has gotten into the deep psyche of these 'investors". 

India is thickly populated, City population keeps going up, Rates have never gone down in Chennai are all regular arguments you hear. No amount of data or concepts can take away the belief (rather fact:-) that "Chennai real estate never goes down". You will feel   people more confident than Warren buffet on their investments.

I am left with only one doubt - why do corporations work with thousands of employees and struggle to make 20% profit margins.Why do banks who lend to the Chennai real estate buyers @10%  (home loan) , When they can  buy and own flats to make 30% CAGR?? 

But what are you waiting for?? In the time that you have been  reading  this article , if you had booked a piece of property in Chennai, you would have been richer by 10% :-)).

What do they mean ??? (MSF, LAF, Repo, Reverse repo and policy rate)

We have been hearing a lot about MSF, LAF, Repo these days. if you keen to know what they are , here is a quick snapshot definition for these terms. 
( Courtesy :-Economic Times)

What is marginal standing facility?

Marginal standing facility is a window for banks to borrow from Reserve Bank of India in emergency situation when inter-bank liquidity dries up completely. Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short

What is liquidity adjustment facility?

Reserve Bank of India's liquidity adjustment facility of LAF helps banks to adjust their daily liquidity mismatches. LAF has two components -- repo (repurchase agreement) and reverse repo. When banks need liquidity to meet its daily requirement, they borrow from RBI through repo. The rate at which they borrow fund is called the repo rate. When banks are flush with fund, they park with RBI through the reverse repo mechanism at reverse repo rate.

What is the policy rate?

Repo rate is considered as the policy rate as repo is the widely used instrument between banks and RBI. Earlier bank rate was considered as the benchmark but it has lost its relevance as banks seldom take refinance from RBI at bank rate. Any change in repo rate signals RBI's interest rate stance.