Karvy — karvy wealth misled

Address:

400607

Having dealt with Karvy since last 2 years, I have started to realize that I have made blunder to believe Karvy, which intentionally led me in to bad investment /deals, where my investment is either giving extremely poor returns or no return and even my hard earned investment is at stake. Here are details of my investment for your ready reference and their report card/ performance snapshot.

1. Mirador Const

1.1 In 2016 July /Aug, Karvy approached me for excellent investment opportunities of very high [protected]@20%, stating that Karvy has done due diligence of Mirador construction and facilitating financing. It was too good to believe. Upon inquiring about the security of the investment, I got the answer that Karvy has secured collatoral for around 2.5 to 3 times of the value of funding and it is absolutely safe.

1.2 With Karvy name behind the deal, I trusted and made an investment of 100% in Aug 2016 for two years duration.Also, I paid fee @ Rs 20000 approx to Karvy for such a good deal as their professional services.

1.3 Subsequently, I received agreement and Post dated cheques up to 8th Aug 2018 for all the requisite returns and final payments.

1.4 When I read through documents, I could not find the Karvy name anywhere. The agreement was directly between Myself and Mirador construction, which I had never heard before, no question of meeting them for finalizing such a deal. it was definitely a surprise to me as I thought I am paying money to Karvy and there will be deal between Karvy and Mirador. It was definitely a surprise to me.

1.5 On the contrary to Karvy promise and due diligence, Mirador has stopped paying dividend from March 2018 onward. When I inquired through Karvy, I was told that please do not present the cheques in the bank as Karvy is negotiating the deal. In July 2018, I was informed that Karvy is taking legal action to secure the payment.

1.6. Bottom Line is my Rs 100% hard earned money is stuck without earning even single paise and yet to be recovered.

1.7 4 Cheques amounting 100% consisting of principal and interests have bounced due to insufficient funds.


2. Indiabulls Opportunities Funds.

2.3 Also, There is no transparency of the transactions - how much the money is deployed where?, how much dividend is being received from investor behalf, how much is the expenses and how the calculation is arrived for paying dividend to individual investors

2.4. Since the fund did not meet the expected return, I started inquiring the details. Upon lots of inquiries, I have been made to understand that Indiabulls have deducted 5% right in the beginning even without generating any single penny as return for the invested money / fund. This is done without any agreement with investor. It is highly unethical and against the principle of any investment strategy for investors. Fund management house must generate the return and then only they should deduct the reasonable fee agreeable to both parties - in this case it is 1.75%. I need to know who has asked Indiabulls to deduct 5% and reduce my corpus right in the beginning!!!. I have never been informed and have never agreed for such high charges.

2. At the time of selling the product I was promised that the fund will generate 16 to 17% of return but actually it is not even generated 2% return.

2.6 I also know that Karvy has already taken their share of money 1.25% upfront from my hard earned invested money without generating even single penny and misleading me in to this investment rather providing professional advice.

3. Demitter

3.1 Karvy sold this product on 1st May 2017 with assurances for 18 to 20% return.

3.2 Next Statement indicated 95% investment, whereas I had invested 100%. It means Karvy had already taken their fees without even deploying the money. Highly unethical!!!

3.3 Karvy has already deducted significant amount of money ) as set-up fee and management fee.

4. Mutual Funds

4.1 I have invested in mutual funds based on the advice from Karvy thinking that Karvy has a strong wealth management team, who would enable me to build my profitable portfolios.

4.1 The fact is my total investment has appreciated by meagre 4% in a period of 2 years. Yes, once during the investment cycle my portfolios was up by almost 15% but there was no timely advice from Karvy for protecting the investors asset by switching to liquid funds, as a result the investment depreciated with market meltdown in March 2018. Since then it has hardly appreciated. I know that Karvy gets 1% of the investment right in the beginning and also another 1 percent yearly as their commission.

Having stayed with Karvy and acting on Karvy advice for investment since last two years, I have started to realize now that :

1. the objective of all such agents / professional companies and fund management houses like Karvy and Indiabulls are to make the fund houses and the agent around fund houses richer at the cost of investors.

2. Such so called professional companies or agents will mislead the investors and make them invest in funds which will ultimately generate the return may be equivalent to Bank Interest rate at the sametime subject the investors to huge risks.

3. Destroy the investors assets to build the company own assets.

4. Project themselves as expert in their fields but their performance speaks volume about their expertise!!!

5 Need your personal attention and action

If you are responsible for Karvy wealth management, I would need your attention on the following:

1. Pl refund my Mirador investment with reasonable interest.

2. a) Pl ensure that Indiabulls makes 100% of investment in Funds and deducts the fees as agreed (i.e. 1.25% establishment fee + 1.75 Management Fee only) to be deducted from the generated dividend. 5% deduction right in the beginning is not acceptable

b) Pl work with Indiabulls and provide me a clear, personalized and transparent statement showing money received and depolyed in various company wise, returns expected Qtrly, Annnual and upon Maturity. Statement should be clear enough to provide clarity on investements, return expected and fees to be charged based on actual money invested and not on generic basis.

3. Pl provide the statement of Demitter with details returns expected Qtrly, Ananual and upon Maturity. Current Demitter statement is very vague and confusing.

4. Pl ensure that your research team is involved in decision making for Mutual Fund portfolio management for investor and Karvy provides the real professional assistance to investors.

So far, definitely, I am not at all satisfied with the performance of the funds advised by Karvy and the professional services provided.