When it is difficult for us to find out a suitable scheme for a genuine client even after with a 15+ years of working experience in MF industry, how a young chap who is well conversant in net purchasing can select a really rewarding scheme on the basis of tips on TV / magazines, newspapers and words displayed on AMCs sites will drive him / her into a selection of right scheme is very much doubtful? I have been reading comments on snapdeal, amazon, flipcart etc. which do reflect their sentiments after making a purchase on net and is full of frustration, anger.

Direct plans are no worry! All these stats are mere hypothetical.Had that been the case , the AMCs might have closed the regular plan by now. Its all wishful thinking that , people will flock the mobile/internet platforms for direct investments and that the site will break down!

The survey is indeed on the dot. There is no doubt that business in India will grow and thereby the Stock market and various other instruments. However if the income of IFAs will decline the participation of people will remain low. The IFAs should have enough income to provide service even when no fresh business available, have money for phone call to solicit business and savings for old age. The present ruling of 0.7% commission is not at all near any of this. So widespread MF participation is a far sight.

The threat is not from direct but the real threat comes from national distributors.They are very aggresssive in churning clients from smalller IFAs Recently i have lost 20 lakhs worth of AUM to a national distributor.That too aftyer building the client in the last 10 years.They are indulging in unethical practices.I dont want to reveal the name of such distributos.This is the right time the ifa coomunity should unite and fight with them for their livelihood

start NISM for investors mandatory if they want to invest with direct mode

Why is SEBI chief only creating heu and cry over Brokerages,Even a Equity Broker makes Brokerages and the Turn Over is high as it is there is Capping in the Structures and Still he has problems then i dont know what he wants IFAs to do beg to Customers.Indians never pay for Advice there are hundreds who will offer free advice and everyone makes commissions on sale a shop keeper a petrolpump owner and even a newpaper vendor so goes with a milk supplier.I fail to undrestand why the IFA should not be paid commissions are they not putting the effort ???

Agree with Nalli Surendra. Time and again I have written that while SEBI is taking tough stand against mis-selling etc. it must ensure that the Distributors too need to make money. The common man and woman must be made aware of the REWARDs of investing Long Term and Not just the Risk.

combo of direct & online is sure enough to create a heavy dent in the aum of ifa and income of ifa. this is another phase of investor non education on finance. in india all are fund managers. everybody is expert.

Fully Agree With Nalli Surendra.

Indians have not taken equity as an asset class seriously; So, regulator has to look at incentivising the industry to attain the penetration levels. Direct Class-Many a times customers mis-use the same to their advantage; Not to mean Direct option shouldnt be there. India has not yet grown to the extent of paying for advise, so go slow. In western economies, in some cases, the distributor is paid as high as 5%; so to say that taking a leaf from west/developed world is not the right approach. Rationalise the commission structure or make it absolutely uniform across all financial products. Keep the threshold education for becoming IFA a tad higher than what it is today. Ban Banks from selling third party products, as they are the biggest mis-sellers