Your analysis is very good. More people agree with mfs. But confusion is more difficult for mf. Investor want make big money in short term. But long term is good option for equity mf. I am working from last 15 yrs in mf industry. I saw double digit return in whole period.

very good & informative article. it shows the power of back to basics. thanks for sharing ashish ji.

I fully agree with you Ashish.Retail customers need advisors 100x more than HNIs.They need Mutual Funds .Now its our duty ,how we do this. You are great inspiration.Thanks

Thanks for sharing your ideas, and I equally support your views that mf industry wants on hni clients, instead of retail who give sip of 1000,whenever they will focused on small investor the AUM of industry and advisor will grow in multiple just like LIC of india

Dear Ashish , I implemented part this business model .True that its a tough and slow process of building the confidence , and AUM.This is in fact not the real problem. While we are toling to get the AUM in to MFs which otherwise would never come , by such innovative approach. The AMCs are growing equally innovative in moveing away the Cheeze.- The direct share class. The most venomous move by them. Unless they address this quickly and seriously , the confidence of the advisor is gone! Unlike tooth paste , peple need some ones advise to get in to a financial product.The advisor is the key.The AMCs and the regulators shall put in right framework to ensure that , the distributors especilally the IFAs are properly nurtured.Inorder to achieve this they shall ban the upfront comissions and start paying perpetual trail of the order of 1% and above.Great to see an investors voice being published.

Good Article. I very much agree with the view that Trust building is the Most Important task for any IFA. Moreover this is a Costly affair. Small advisors have quit because they could not build trust. Unfortunately AMCs are doing nothing to remedy this core issue. I am repeatedly commenting on this forum that Investor Education has to be taken up in a Big way by all AMCs. Pay advisors for Educating Investors. In the long run this investment will give good yield.

Thanks Mr. Ashish Modani for putting the things very straight. In my view, it is AMCs who are focussing on big tickets than small tickets, compensating more to IFAs of big tickets as well than IFAs of smaller tickets, not sending enough material to IFAs such as facts sheet, forms etc. to IFAs and ask them to collect from their respective offices, promoting on-line selling eliminating the role of IFAs and above all their fund managers are highly paid ones who performance-wise are dismal in public view. Obviously, AMCs has to suffer for all these negligences in future. Mr. Ashish may work hard and may crate a place for himself but it is not every ones cake.

it is good idea but practically possiable to service small investor

Can you give your email id so they i can write / send some mail to get you guidence.

Good Motivating article.Pls can you guide me by recommending few schemes where i can tell my clients to invest in some of the good debt schemes where they can do an SIP and most IMPORTANT their money should not get eroded. I want to gain their confidence and trust. My contact number is 9980012790.

A product today is sold primarily on the strength of advertising. Toothpaste to motor cars are sold every day on the strength of advertising. Nobody looses faith in a washing powder that proclaims that one wash with it can turn yellowing whites to super whites and yet in reality fails to do anything like that. No car has gone out of the market because the actual mileage obtained is far below the one claimed by the manufacturer. Products like Amul butter and Cadbury chocolates relentlessly advertises inspite of having 80% of the market share. AMCs, unfortunately, are convinced that advertising their products is the sole job of their distributor. Imagine what would happen if Hindustan Unilever tells its distributors to go from market to market and convince the retailers about the virtues of a Lux Beauty soap. Mutual fund will remain a product unknown and uncared for unless their manufacturers (AMCs) wake up and aggressively advertise their products.

Good Idea. Most of the IFAs will practice when AMCs will give more importance to open ended debt product with better TRAIL commission.

Thanks for sharing the ideas

Good approach. Advisors are grateful to Mr Ashish Modani. Thanks to all involved in publishing of this article.

Very enlightening indeed. Other distributors can come forward to share their experiences. Look forward to many more articles of this type.

This is the first article which is very straight forward and TRUE. I have expressed these same views while commenting on many articles that appear on this forum. A VERY IMPORTANT POINT MADE HERE IS THE COST OF DISTRIBUTION. SEBI and AMCs MUST TRY AND GIVE SOMETHING DIRECTLY TO THE DISTRIBUTOR FOR HIS EFFORTS.

VERY GOOD UPDATE TO MOTIVATE THE RETAIL DISTRIBUTER LIKE ME. BECAUSE I ALSO FOCUS ON NUMBER OF CLIENT DN VOLUME MOBLISED FROM 1 INVESTOR. THAT HELPS ME A LOT INCREASE IN MY MONTHLY INCOME.THANKS A LOT....AMIT PRAKASH

Thanks to Ashish for very nice article. I fully back comment by Mr. Navin Kumar.

Its a very good idea and our approach should be in line of this.And what I like the most is the manufacturers to differentiate the colour of money. I believe that this the thought of the day for the AMCs.

Nice article Ashish.

THANK U FOR SHARING . WHAT U SAID IS 100% TRUE . ALL THE IFA S AND AMC S MUST FOLLOW THIS PRACTICE SO THAT WE CAN CHANGE THE PERCEPTION OF INVESTORS ABOUT MUTUAL FUND SLOWLY BUT SURELY. IF AMFI ALLOWS INSURANCE AGENTS TO SELL LIQUID AND LOW RISK DEBT FUNDS WITH OUT AMFI CERTIFICATION THEN OVER NIGHT INDUSTRY AUM WILL GO TO UN TOUCHABLE HIGHET

Good idea.

I too agree with the view and AMCs should take a more holistic view on product, pricing , investor education etc for promoting retail business which will be win- win for all .Rather All AMFI data should be segregated in retail and wholesale category with some consesnus investment value.

Also, 2 steps to get distributors to trust AMCs: consistency in performance and structures and unfortunately Reliance ranks low on these two counts.

Pearls of wisdom, young advisors are getting this for free.