Your article is very good it helped me think clearly and stay calm I shall now start thinking and categorizing my clients in terms of 4 quadrants. Thanks.

Basically IFAs incur only following costs:- 1) RTA cost 2) Commission We require only operation support, that can be done by going to RTAs office, instead of going to AMCs office. Following costs must be reduced from REGULAR PLANS 1. Sales support,( We dont require AMC office/Admin cost/RM etc. These costs must be recoverd only from DIRECT PLANS) 2.We will not attend AMCs meet in hotels 3.Advertising cost( Full page paper ad/TVCs) we are ready to cut the cost further, this way I wish the TER of REGULAR PLANS will be either equal to the DIRECT PLANS, or it can even be lower. Along with the opposition of "disclosure requirement", out other demand shoud be CORRECT CALCULATION METHODOLOGY OF DIRECT AND REGULAR PLANS.

Dear All serious IFAs, We need to realise the real threat to our MF business is DIRECT Plans. Since the Expense ratio calculation of DIRECT Plans is faulty, we will remain at disadvantage always. Our only job will become to educate and bring the investor to AMCs. When this investor become financially aware, AMC people will easily convert the investor to DIRECT mode. If we have to survive for long in this business, then our main demand should be the " REALISTIC CALCULATION OF EXPENSE RATIO OF DIRECT PLANS".

I agree with you. Our dissatisfaction is with direct plans. It will effect in long run as the gap of NAV widen. We must ask SEBI to market out Banks & RTA agents due to their dominance position and accessibility of data. Also by reducing the office expenses of AMCs as small branches with no sales support staff shall effect o reduce TER. Thanks

Thank for this analysis .I got a lot of insight how to deal with situations.

Great Article @ very imp. time ! Hats off .............for inspiration.

Great Research. Superb article. A must read for all IFAs. Thanks Team Vista for this very useful piece of help.

Team Vista well articulated article. You truly deserve to be at centre stage representing IFAs in front of Mr.Jayant Sinha. Being proactive you have always encouraged IFAs to " Take the Bull by its Horns".We shall do the same analysis for our client base too. However I personally believe that more percentage of customers falling in Quadrant 1 would switch over to Direct after the Consolidated Statement reaches them post Sep.Clients value your advice and personal relation only till a point. These customers would be quick to do annual savings vs personal relationship analysis and wont mind switching over to Direct route as they have proper knowledge and understanding about the product.

Your views may be good for hni or investor who invest huge amount, but lower service class always check that what other is getting by his investment as you can see in Lic or post office scheme client always demand, and other side if any one has invested 1lakh and due to market movement in cas his return is negative and other side broker is getting commission, he will sure elligate to broker, therefore in my view if industry feel that we as advisor is getting tomuch money tell us what they want from us

Ashish Bhai Good article, I totally agree with your article

Actually this kind of attitude of our leaders making regulators wicked. We should stop talking like this and start to fight right now n right away.

Wonderful Approach. Modification in self approach only going to help in long term . Yes we will take up the matter with concerned authorities but outcome of the same is not in our hand, Whereas it is always better to face the new challanges by modification in self approach and the same is in our control. This article need to be considered as rightful lesson for self developement. Thanks Asish.

Good article, right analysis and conclusion is industry growth and retail participation will be affected. Churning will increase ,need and goal based SIP selling will be discouraged.

Thumbs up to you guys Ashish, Manish and Ankur. Excellent article. Very well drafted. Keep writing such articles. Write for some Financial Dailies. As they too need some peace of their mind. A humble request to kindly try and write some practical books too on such topics plus on day to day hurdles that a Distributor faces and how could he overcome those. (seriously) My Best Wishes To Team Vista Wealth.

Good analysis. Post the disclosure, passback oriented distributors will have a field day chasing financially illiterate clients. Such distributors are a much bigger challenge than Direct, since they with their naive advice, eventually destroy wealth and push the clients away from the industry.

I am total agree with Aashish Goel views about commission disclosure