"We trust that you will avoid using harsh language and will refrain from making unsubstantiated allegations against individuals and firms. Your constructive feedback and opinions are very valuable to all of us in the industry. "
Nobody is stopping fund houses from paying something beyond this 1% minimum trail to attract new talent in whichever format they like, isnt it? The effort to reduce trail in the guise of support to new distributors will only help in lapsing more codes. We should not forget the fact that benefit of lapsed codes accrue to fund houses in the current set up.
Instead of looking for market growth to bring in more number of distributors and volumes, fund houses may put in a genuine effort to increase the number of distributors by increasing the payout and setting the minimum trail at 1 % so as to give certainty in income for the IFAs. How would a new distributor will come to the industry if he/she is seeing the plight of the IFAs who are already there and struggling with brokerage structures that keep changing every month/every quarter and that are designed to make only less than 5000 survive in the entire country?
It is being informed thro TV that service tax will be applicable after finance bill is passed and notification issued.But AMC has deducted service tax overlooking this.Moreover this brokerage due is up to 31/3/2015 when service tax is not applicable.Poor IFA. No voice heard.
Retail distributor are like a farmer, those make a platform and then ND and corporate brokers, called Big gaint fishes, eat their field crops. And government agencies.... Are like political parties, those comes to small farmers with some lollipops during tough times.