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Hiteshu Bhakta Comment On Regulatory Notice 22-08

Hiteshu Bhakta
N/A

To Whom It May Concern, I am greatly concerned about any additional cost further regulation and compliance will have on complex trading products, particularly leveraged ETFs. I am concerned about additional regulations which may increase the time it takes to get approval for trading complex products. I purchased leveraged ETFs on market indices, however there was five years of research in search of the products which would allow me to do so with minimal cost and max gain. I am concerned regulation and compliance will hamper my ability to invest and divest my positions. Additional regulation and compliance may increase the cost of complex product such as leveraged ETFs. It is important to note there are many mutual funds with higher expense ratios than leveraged ETFs. Of course the risk between the two products is very different. As an investor, I cannot control return, but I can control cost. I willing pay 1% expense for a leveraged ETF on market index instead of a 1.5% expense and a 5% load for a mutual fund any day. If you did not know almost no mutual fund has consistently beat its benchmark year after year. Once you add expenses in the equation, you can probably count the managers who have beat their risk adjusted benchmark on one hand. FINRA might better serve investors by reigning in these absurd fees and loads charged by mutual funds, especially due to the massive scale of these funds. Furthermore I believe FINRA might better serve the public by investigating politicians and relatives for insider trading especially if the investments are directly owned instead of being held in blind trusts. I do believe investors need to be protected from products which are not within their risk tolerance or capacity. Risk is a very difficult concept to quantify and explain more so. No picture, graph, model, or explanation of the product is 100% fool-proof. In this regard, I do the fees in question the fund of funds products coming onto the market. Regards,