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Well said sir, the TER of DIRECT PLAN shouldnt be just the difference of DISTRIBUTORS COMMISSION with that of REGULAR PLAN.what about the expences that the AMC charging for serving those direct clients??

Read this article

Regarding service tax what I have observed when the market in bull phase the Govt imposes service tax and when the bear phase comes Govt withdraws it.So what to do.

I think when retail participation grows to asubstantial level this problem will go.Good thing is now retail participations due to our efforts it has grown.Beacause Amc people just cannot manage huge no of clients directly.So far what is the problem in m.f is The Govt says m.f is meant for small investors and retail people virtouly it is not so far.Rather HNI and corporates in the name of small investor getting tax advantages and other benefits. So retail participation has to grow and it is gowing also due to our efforts.The HNI and co can deploy staffs for this purpose but retail cannot do this

I appreciate your attitude on focussing on solution instead of just making noise on problems. Your suggesions of distributors being allowed price discounting and also access to customers transaction date feeds in case of Direct , seems to be most appropriate for allowing us a level playing field.

Hope few of the AMC people read this article and come out with proper expense ratio for direct clients. I have seen AMC executives go and collect direct applications(privately they confess). Our clients are going to pay their expenses, right? Why dont we protest collectively? I am game for any non-violent protest, after all we are just asking for righteous justice.

What about the fact that direct investors are bearing the cost of AMC sales people who distributors?

Direct plans are to be allowed to those investors, who has passed AMFI exams. Like, Indian Law dont permit Mercy Death or Suicide, AMFI shouldnt allow Investor to invest in the funds other then liquid funds without passing proper AMFI qualification. Medical store can sell Paracetamol Tablets without prescription but they cant sell sleeping pills. Similarly for investing, we have to become equally strict.

V good article illustrating unfair stand of AMCs & AMFI. Having said that, i dont see much change in their stand. All IFAs should come together to find a solution. Why cant all IFAs go on a Indefinite Strike...? Or say a Dharana against all AMCs and AMFI. How about surrendering all ARN numbers overnight to AMFI...let them do it on their own...bring media In... Wake up all IFAs...

Apt analysis by Vista Wealth. I also strongly feel that a strong partnershp/relationship cannot rooted on a false foundation. SEBI should strictly mandate the methodology for calculation of Direct expense ratio so that true picture pans out to a prospective as well as existing(advised/direct) customers. Worth noting is the wide deviation of expense ratios within similar schemes of same AMC as well as across AMCs. This obviously cannot happen in a transparent and fair mechanism. Making AMCs more financiall viable is a subset of making all stakeholders and the general industry itself strong and fair to its basic customers. The sooner we realize this, the better would be our industry.

agreed fully,distributors alsways being betrayed one way or the other. i agree why direct business is not their in stock market trading?

Ashishji & Manishji I fully agree with u. MF industry is always with SEBI for investor empowerment. We r not complaining to d regulator for other industries. Its very sad that maximum xperiment happen with us. There is no direct option for stock market investment. I hope AMFI & all IFA association should take it with SEBI.

Thanks to Ashish and Manish to write those words easily which I express to AMC people every time when we dialogue on Direct plans.

I have seen that yesterday , some one posted that the root cause is the lapsed code AUM. I too believe in the same. An estimated AUM as huge as 1 lakh crores is lying in lapsed codes , for which the AMCs are charging fully and happily , and not paying a penny for the respective IFAs( No possibility of lapsed code in case of NDs and Banks). In a way , the high commissions for the NDs and banks , the high discount in the direct plans are funded by the lapesed code AUM, logically. Hence one can fairly conclude that, the lapsed code AUM shall be transfered to direct. Then the AMCs will naturally will come out with higher prices for the direct , and fair prices for the IFA and distributor - as the current prices in direct are ridiculous and are not sustainable in the long run.

Indeed a very strong case for discussion but whom do we talk to. Individually AMCs are with us but their stand is contradictory while meeting with regulators. Direct plans should have equal or more expenses if the AMCs are serious about their partners who have been working for them since inception.

For everybodys reference, the difference in last one financial year returns of regular and direct schemes of JP Morgan Mid n Smallcap Fund is 2.61% and that of Religare Invest Mid n Smallcap Fund is 2.41%. I have asked for an explanation from both fund houses about such huge gap one month ago, which they have not been able to clarify till date.

I believe point raise by Navin is valid that any folio opened by distributor should not be allowed to include direct transactions. Just like direct plans have different NAVs, even folios should be separately opened for them.

Ashish and Manish i fully agree with your analysis, also Mr. Navin Kumar point is a valid point kindly be noted.

great article, cover all points being asked by me. the only point being missed is why should we bear the cost of rms who do not meet us and their cost should also be borne by direct as in paper they are meant for us but in practice they are working for direct clients

contd... One more thing, regulator must look into is that the existing folio (which IFA make big in course of time by putting energy and wit into it) cannot be made direct at all. If the client really wants to go direct, they must redeem first and reinvest after going through risk profiling and due diligence by AMCs. You cannot diminish the efforts of an IFA done during the life of the assets. This is not at all a natural justice to an IFA. This is something like grow big with the efforts of someone (IFA) and kill that very IFA. We are like those craftsmen who built Taj Mahal and later killed by the ruler for whom the craftsmen gave his best. Oh come on Mr. Sinha. My heart is full of anguish with very attitude of regulators for their short sightedness and very fluid and superficial dictate every now and then.

contd... so front desk person of the AMCs must do due diligence and risk profiling because he is not getting commissioned from AMCs. How SEBI can be so callous in this regards. Direct clients are consuming more man hours than any distributors so the cost of that consumed man hours and other resources used by that client must be borne by that set of investors only. Why this simple math is not understood by the manufacturers and regulators. And being a distributor, I do save money in my name which I park in MF but neither I get commission nor the benefit of lower TER because I use my ARN to get the data feed to track our investment. Isnt it ridiculous? What an irony Mr. U K Sinha.

What to say, that after reading your article I went into the past to the era of Mr. Bhave. What Mr. Bhave has done to the distributors communities was less harmful than that of what Mr. Sinha has done to this communities. Thats true, more aware, more sauvy investors should have more options of investing, of course after risk profiling by AMC people but not at the cost of advised investors. SEBI registered RIA have to necessarily conduct due diligence and risk profiling because they are not getting commission from AMCs and of course getting fee from investors

article is a fair job to remind the industry to do some justice distributors. effort to educate the investors to build the industry are forgotten very conveniently. it is very unfair. existing investors are lured by the industry by the great advertisement like low/no cost( not considering the real cost) giving an impression that the distributors are looting or not doing a fair job. well done.

SEBI HAVE DONE WRONG BY PROMOTING DIRECT PLANS. AS DIRECT INVESTERS ARE NOT BEING CHARGED FOR THE EXPENSES OF THEIR PART. IT SHOULD BE STTOPED FROM TOMMOROW ONWARDS AS DIRECT INVESTERS ARE HUGELY BENIFITING ON THE COST OF INVESTERS WHICH HAVE COME THROUGH DISTRIBUTOR.

DIRECT PLAN APPLICATIONS SHOULD SEPARATE , DIRECT PLAN NAV SHUOLD NOT BE PRINTED IN NEWS PAPER , THERE SHOULD NOT BE ANY PUBLICITY FOR DIRECT PLANS BY AMC , AMC SHUOLD DISCOURAGE DIRECT BUSINESS ,

The solution for this work for client not for AMC & take AUM based fee for advising from beginning .

Extremely well written and analytical. SEBI should order costing of the expenses involved and audit the allocation.

Thanks a lot for bringing forward a very important issue of direct plans most passionately. I fully agree with the views. No doubt about in the proposed solutions relevance. Level playing filed is fundamental right of any Industry. Well articulated Bcoz of regulation, manufacturers are forced to sale at lower charges in our competition. I think we must update to Ministry of Finance and PMO of India about this injustice.

Extremely good views. Good article. Well thought of and put very well. Hope some authorities understand it.

Thanks Ashish for addressing the Most Important Issue in simple language. Hope Regulators will rethink on there decision

well said !. I want to add my own old demands for direct plans 1] stop different NAV for direct plans 2]start NISM exam investor module if they want go direct and renewals too, direct means investor advises himself he/she must prove hi/hers capability before taking decision ,is it not contradictory advisor needs NISM but direct investor need not ,it is like if driver drives needs licence but if owner drives no need of license no industry can grow well if participants are feeling insecurity

Extremely well-written! But, unfortunately too late. And nothing will come out of it as AMFI, AMCs are all on a self-destruct mode. Further, distributors have been dealt with a death-blow by imposing the (18.25%!)Service Tax. We have to include the 14% svc tax deducted from our commissions in our gross income and pay Income Tax (31%) on it. Overall we are getting only 50% of the commissions in-hand. Even though we earn much less than Rs.10lacs (through commissions), yet we have to bear the Service Tax, which is otherwise applicable to only those earning over Rs.10lacs in other professions. It is now Jungle Raj with the government allowing the mighty to do as they wish while trampling the small distributor.

Want to add , Before taking this regulatory decision some IFA should be asked because it affect directly to IFA OR some members as IFA As we are also equal participant as AMC, AMFI,SEBI

The only way to find a fair and lasting solution to Direct pricing is to let the lapsed code AUM transferred to Direct. It is fair to the clients whose AUM is under lapsed codes as they receive neither advice nor service and fair to the advised clients as well. Once it is done the remaining issues will take care of themselves as there will be no benefit to anybody in lapsing codes with lower trail commissions of around 0.5% and even less. The effort to legitimise pass backs is deplorable and is highly dangerous for smaller IFAs. The effort to legitimise pass backs is an NDs mindset.

Very valid points, particularly DIRECT client being subsidised..We should communicate this message to AMCs and SEBI and their should be saperate accounting for both. Branches required and workforce employed should be spaerated same as NAVs. ER formulas should definitely be changed. Huge cost must be getting incurred in DIRECT channel , which is not getting reflecting in NAVs.. Also we should have some say in reducing expenses for REGULAR plans.

Very relevant points noticed out..........When will regulators think on them ?

Some very valid points for thought, discussion & implementation for a more level playing field. AMFI, MFs must start a dialogue and treat IFAs more as partners

First, I congratulate the writer duo to bring forward a very important issue of direct plans most passionately. I fully agree with the views. I have one more point to share. We all know the benefits of on line trading in shares. With the use of technology and reach, all regional stock exchanges were made redundant and the transactions costs were brought to minuscule levels. The entire business model became transaction focused. What happened to the Investor ? He was converted in to a trader. The main menace of the direct plans is the investor behavior. Who is going to copnvince him to stay on during lean times. He may get in and exit when he deems fit. Will the long term wealth creation remain ? What happens to the swinging AUMs of the scheme and the impact costs ? The experts have to answer this. My sense is that let us understand the problem beyond the cost of distribution and in holistic interest of wealth creation for a retail client

Hyderabadis are with you in the battle against Unfair regime. Lets create a fair & level playing field for everyone. Swachh MF, Swachh Industrial regulations would be few of the leading factors to view our nation as Business friendly nation ultimately leading to the success of our Swacch Bharat & Make in India mission.

Ashish Bhai, Welldone.....its take a very long to make a trader- an investor.......and they take away in a moment. And why our investors pay the cost for direct customers expenses. very well said..a big question on AMCs intention.......hatsoff to you.

Direct plans is the biggest issue for the distributors, today AMC are our competitors with all our data with them. Article rightly says there is expense for procuring DIRECT PLANS ,where that money comes from. I think DIREC PLAN is fundamentally flawed . Ashish has put all aspects rightly . I think we distributors should put DIRECT PLAN issue as the TOP MOST ISSUE bothering us . This issue requires maximum attention if we have to survive. Lets fight for it singlemindedly.

I agree that we need to have an advisor led plan (cheaper option) for which feeds are provided. This will allow level-playing competition with the direct plan.

Well Said Pallav Aggarwalji We hardly Need these Branches. Its a Part of Long term Plan of AMCs thats why Bigger offices in Prime Location.We have also clarified with Some of Employees of Big AMCs which says that DIRECT is Now Part of Their KRA Which they cannot avoid. I Must add that MF Utility by AMCs is an another effort towards Direct which is again will Dent & Steal business of Distributor. The Huge Amount of Spending Done By AMC s in Technology For Promoting DIRECT should Also be included in Direct Plan Expenses including Funding of MF Utility. The Amount Spend by AMCs For IFA including NDs for Technology is Negligible as their is no effort by AMC to add value to Distributor Website by Providing Pluggins etc instead they always redirected our customers by mailing them to buy online from their website online that too with First Option DIRECT. AMC has to clear up their Mind as whether they want to go Direct or Via Distributor their is No Midway

congrats to both you. The analysis is correct. Its not that the AMCs, AMFI, SEBI, Media does not know this. A concerted effort is being orchestrated to slowly decimate the distribution community (IFA). End of story.

In a small city like Noida we have offices of 6 AMCs and they are exactly the same which are top 6 in terms of AUM. These offices which are well staffed and are leased in on very high rentals act mainly as investor service centers, and distributors hardly need them because of the presence of CAMS and Karvy. Such offices are present in all major cities and towns across the nation. 80-90% of the cost incurred on these offices which includes rentals and salaries should be charged to the direct plan of the schemes and not to the regular plans. If most of the distributor community feel that we need only efficient registrars and presence of AMC offices is redundant for our business we should get this implemented and this will reduce the gap between the expense ratio of regular and direct plan. Similar division of cost incurred on maintaining websites can be done.

Ashish and Manish Many Many congrats for writing such a information article. Being a advisor was unhappy with AMC, AMFIs stand on direct plan, but had not analysis in so deep. I propose following more steps( if not already taken)to redress the issue 1. We should send this article to CEO of all the amc and AMFI and insist them to give thier view. 2. In all the Distributor meet senior amc people should give their view about subsidising direct plan expenses. 3. Like some of the amcs promote only direct investors, AMCs can promote himself as pro advisor amc by not entertaining direct investor to the AMC. Emphasis investor to come with full filled up application with due selected schemes by him self or come route application through advisors. 4. As proposed by one of the colleague on line signature movement should initiate.

The Exact & Correct Points mentioned in the above article. I Congratulate both of you for writing such required views & the reality.All the players like AMCs, AMFI & SEBI will act immediately for the benefit of the industry.

Thank you..... NOIDA IFA Association for your support to Ashish & Manish. Other similar IFA Associations from all over India have to come forward to support them. Instead of writing tortoise & hare stories on this forum leading IFAs have to also raise their voice.

Points raised are relevent, existing from day 1. But then who cares for IFAs and investors alike? AMFI is MAC body looking after AMC interstes selectively since inception. AMC reps are running AMFI. IFA representative is an eyewash from initial days. There is nothing AMFI has done for investors, IFAs. Even common application form for all AMCs could not be achieved for 6/7 years by AMFI. It is in my opinion a body without backbone. SEBI too has reduced AMFI as a show piece organisation. Exams are conducted by SEBI appointed entities. Selective players top 7/8 AMCs are all out to dictate terms for ONLY thier own benefits. They never cared for investors unlike SEBI. Only small AMCs can fight back a pitched battle for their own survival and that of IFAs and INVESTORS. I can proove that large AMCs has played gulliable against investor interests during 2007 till date and have covered their failed fund management during this time and even now. God bless Indian investors.

I am short of words to congratulate the writer duo, on addressing the burning issue in the Mutual Funds Industry today. The article is expressing the deep pain of the entire Distributor community and simultaneously drawing attention to the cost paid by advised investors. The regulator is only interested in dictating stricter rules and creating entry barriers to make the it an oligopoly industry. Only hope from the regulator to understand this simple and important fact of Direct Plan pricing as AMFI is Association of Mutual Funds In India.

In fact going one step further, one can have a simple questionnaire designed and ask the prospective Investor to answer. If he is able to answer most of them correctly,he is more aware and taking responsibility of his/her actions. Or else Direct is not recommended to them. Some thing on the lines followed by the Medical Council. Some can be taken through OTC ( over the counter) and some need Prescription and only then, it is dispensed.....If there is a will and the Industry is willing, to walk the talk of indeed supporting and facilitating the Distribution Partners, the changes proposed or the soution is possible , without any interventions from the regulator too. Best Wishes to All, Srinivasan TS PS: Due to word limit the comments have been posted in split... Thanks

NSE Platform NMF II which has taken a stand to have only regular plans has showed its intent on whose side they are . Many others need to proactively come forward to make the whole distribution environment more friendly and remember them who have helped the MF Industry to grow. You may be aware that in some countries , the investors who have been given the options of exercising the option of going Direct, have to explicitly give in writing that they know what they are doing. contd.......

Ashish & Manish Goel, Compliments to both you for a well articulated situation and a perspective on Regular & Direct plans . On an optimistic note, I am very heartened to see, that there are indeed many distributors, who are passionate in doing business and it is indeed reflecting in the observations you have made with full details. Direct or Regular ,the brave ones will always survive inspite of the odds or should I say obstacles. The Solutions you had mentioned in the article is in my view implementable and can be expedited too, because it is in the Control and ambit of AMFI, Platform providers and the rest of us through many good associations. contd.....

Ashish & Manish Goel, Compliments to both you for a well articulated situation and a perspective on Regular & Direct plans . On an optimistic note, I am very heartened to see, that there are indeed many distributors, who are passionate in doing business and it is indeed reflecting in the observations you have made with full details. Direct or Regular ,the brave ones will always survive inspite of the odds or should I say obstacles. The Solutions you had mentioned in the article is in my view implementable and can be expedited too, because it is in the Control and ambit of AMFI, Platform providers and the rest of us through many good associations. contd.....

Mr Ashish & Mr Manish... We are on your side. do feel free to call akola Ifa association to stand against the bad practise of todays RAVANs ie AMC.

No doubt about in the proposed solutions relevance. Level playing filed is fundamental right of any Industry. Well articulated. Wealthforum should take up the matter with relevant teams.

Ashish Sir, Superb thoughts, all valid points.. the burning issues...

AMCs are minimising Expense Ratio in Direct plans and increasing Exp. Ratio in Regular plans to insentivise more to NDs & RDs which making a big difference in NAVs of Direct & Regular plans which attracts to Investors. This difference will be be more and more in day by day. This idea was came by AMCs & they recomended to Regulator. Its vital to stop D plans to secure the future of IFAs

Most valid reason laid down by Ashish and Manish Bhai. Why not atleast for once all the association come together and decide to start a strong agitation to set up a committee to revive it.

I fully agree with the writers of the article and would like to congratulate them for writing this DIRECT and candid conversation. AMCs should now give a clear answer on how do they fund the expenses of the Direct Plans. IMHO, the Article has clearly highlighted two points which make it clear how Direct Plans are flawed and unfair.. 1. The Direct Plan Expenses as are debited to the overall scheme the Interest of the normal investor who goes through the distributors is hurt. 2. No Due Diligence for Direct Plans can be a bigger threat to Investor Interest. AMCs and Media together can easily influence the minds of common investor. We all should have a united voice which respects the profession we’re all so passionate about.

Any Relation Runs on Trust if That Break than Relation is Bound To fail. Clearly is the Case of AMC with Distributors & Some Has already Broken the Trust.

You Wrote a Very Insightful Article about the Way AMC has Find a Way to Steal the Business of Distributors & But We would Request you to Play a Anchor Role as our Representative to Put Our Voices into AMC Ears,We as a Noida IFA Commmunity is Firmly Behind You physically,Monetarily,Technologically,Time Devotedly. We all are along with You on this Dissenting Note with AMC the Way they are promoting Direct & Promoting Their Websites Like Distributors Site where goal Planning,Risk Planning etc are Done on AMC Sites along with online Purchase & Mailers to investor to visit their Sites. There has to be mid course between the current situation as it is only upto us how we all collaborate our Efforts together effectively to make ourself count. Shekhar(WealthDirect) Vipin Bhutani(WealthDirect) Pallav Agarwal (Flourish Financial Planner) Harsh Chaturvedi (Opulence Inv) Amit Rastogi(Amirav Advisor) Gaurav Handa(Amirav Advisor)

The article is well laid and exposes the AMCs. The fact of the matter today is that no AMC is interested in promoting IFAs. They only do lip services. HDFC AMC is a typical example. Another point to be noted is that the local managers of AMCs do not promote direct plans. In fact what they do is promote their interests through unscrupulous IFAs and pass a small amount of commission to the concerned IFA whose code is being used to channelise direct customers who call on their offices. This is popularly known as stamping services and every AMC top brass is aware of this situation, but take no action because everyone in the AMCs heirarchy share the booty. IFAs who do not have much AUM fall a prey to this situation and help the AMC managers to channelise direct plans through their codes and get a small share of the commission. The net loser is the investor and honest IFA.

I fully agree with the above thoughts. It is high time AMCs decide and act on whether distributors are relevant for their business or not. The most frustrating part is the double role played by AMCs against the distributors.

Completely agree. We need to do something about it. Lets do a signature campaign or online campaign, and submit it to sebi and pmo.

very excellent research and positive approach, i am in this field from past 10 years,in this point a IFA is facing huge problems,but big AMCs and big distributors are least affected with these anti small and medium IFA regulations,because big AMCs has huge assets and the same in big distributors ,but a small and medium distributors are suffering, in my consideration ,to be frank none of the AMCs are bothered about a small and medium distributor except SUNDARAM AMC,because recently when AMFI capped 1% commission ,sundaram AMC was the only AMC boldly rejected to follow.but what ever happend is against small and med IFA ,what ever is going to happen will be against as well.

Very aptly put thoughts. Brothers you have hit them (the regulators & manufacturers) where it hurts the most. DFDA is indeed doing commendable job in furthering interests of distributor fraternity. Every single investor is our bread and butter and no sensible distributor-advisor can ever dream of short charging him for near term gains. Regulators and AMC must understand this. Other IFA associations should also come forward to nudge authorities in the right directions. Also, you two should pen your thoughts more frequently for larger benefits of the distributor community. Thanks & regards...

I am not able to understand why the big institutional distributors are silence on this issues. Or are they treated separately by the AMCs.

Absolute facts that we are facing now. No AMCs are interested to here. All our associations should come together to make them here.

The article is right on the target. AMFI and the regulators absolute silence has done great harm to the IFA community. As mentioned, AMCs do not want to support the IFA in public, only in private. I wonder whether the regulator has exceeded its brief by using investor interest as a shield to foist unfair trade practices by its micro management of the mutual fund industry and continuous reduction of distributor income. A direct investor has no certification to pass, is exposed to only one AMC at a time and is in fact at greater risk in taking his decisions, irrespective of what colours you use on your forms.

Direct plans are hurting. I agree with Mr. Paul Dsouza , Mumbai and very much think that we ALL MUST BE TOGETHER ON CREATING A LEVEL PLAYING FIELD. We Must take this fight to the High Court or even Supreme Court. First we are right on crating a level playing field and second our right to make a decent earning has been threatened. Both things have been Guaranteed by our Constitution.

Superb ! I think we must update to Ministry of Finance and PMO of India [ Na Mo] so that SEBI is tightened. Other wise the nexes between SEBI and AMFI will ruin our business.

I fully endorse it. Further, there is huge money laying uncared in Banks and Post Offices. We the distributors are safeguarding the interest of investor by properly advising them so that no money is kept uncared. No financial instittution is caring this money. If investor opts for direct plan, definitely this amount will go up heavily in Mutual Fund also and it may lead to encashing by some one who is technically savvy.

Well Said, all IFA associations should at the least come together and push AMFI and SEBI for the above. On the whole, a good article should also go for media coverage and please forward the article to Value Investor or other media channels, through the IFA associations.

Similar to compulsory Cost Audit for certain industry like pharmaceuticals etc., they should appoint cost auditor to ascertain the exact cost for Direct and Indirect plan. Let the cost auditor report be basis for expenses charged for Direct and Indirect plans.

Hard Hitting Facts, right on the bulls Eye. Having said this, are the So called personnel in Amfi, AMcs are not aware of these facts, THEY ARE, but do not want to act on them. Mind you, AMFI is an association of Mutual Funds fighting / associating for protecting their interests and was never meant to be for protecting the Rights / well being of the Distributor. These are a well scripted and executed PLAY. With what so ever voice raising against these facts, none of the above said Stake holders will intervene for protecting Distributors.

You mean since AMC does not do any risk profiling for direct , in that case investor can sue AMC/employee for losses if any of his employee has recommended any plan .#Caution AMC Employess

A well researched and thought out article and i fully endorse the points made in this. However unless the Advisor community unite and make their voice heard in the corridors of power which is SEBI and AMFI, nothing will come out of it for us. we have to become more professional in our client dealing and i am sure that if we stop thinking about our commission and work for the client, they will surely realise the benefits of sticking to Quality advisors

Very well elaborated the reality of direct plans & pain of loosing to direct business by us & game plan of AMCs,Its basically short sightedness of top 4 AMC,which may be not willing to grow further as they are thinking that they have achieved a lot now & try to break the established model by bringing direct (AMFI is a puppet run by these 4),its like a hole in titanic where our mutual fund industry is titanic ship & direct is a hole where first distributor will leave the industry than these AMC s are bound to collapse & no body will be joining the industry. If AMCs see recently downside in sales in SIP & all these top 4 have been affected now so AMFI may allow upfront on Sip which clearly indicate who is running this body & entire show.The solution is we have to create a common all india strong social platform where we need to unite as its biggest problem in advisor fraternity which AMCs are taking advantage.

nice article manish & ashish. you really push the hot button of distributors feeling. i also feel there should be passing of some test or module compulsory like nism direct investor module for investors who wish to investing as direct customer , atleast if the regulator want them to take informed & sound decision about investing their money in mutual funds according to their risk profiling.

Hope AMFi will listen FORGET it, will the AMCs listen FORGET it, nothing is going to change all these problems will only increase going ahead. The small IFA will eventually be forced out of business or be forced to work under a big/ND. Compliance will increase so will the cost of being in the Business. this article is already being discussed in Social media groups which promote Direct plans and bashes all distributors left right and centre.

Hi, Do you feel by these logical points you change the mind of SEBI, AMFI or AMCs? I fully doubt it. Because these regulators are acting exactly like a puppet in the control of few AMCs. Instead of growing the Mutual Fund Business, these three pillars actually harming this. Since their formation, these regulators are still in "Trail and Error Mode", which they themselves dont know what they are doing and to whom to heed for the mutual fund industry growth. God can only protect the Mutual Fund Industry GROWTH :)

The day we can pass a bill to recall our politicians, direct plans can and must be introduced Ashish bhai. This is plain speak , ashish bhai you must understand you have to make your own space in the sun and you dont count as amc sizes get bigger. It is a King- serf to have dual pricing on old trails, it encourages churning- we guys are stuck because if we churn we will loose the 14 -15 PC IRR which our clients are sitting on for 14/20 years. We kick ass property on its teeth, help the Finance minister, RBI Guv, Prime Minister in mobilising financial savings and get punched on our nose- life is unfair Cest La vie

Ashish and Manish u both hit the Bulls eye. i hope AMFI will form the committee and listen our voice

Ashish and Manish u both hit the Bulls eye. i hope AMFI will form the committee and listen our voice