Wealth Forum TV

Forum Comments

ARE IFAs TEST MATERIALS OF MF INDUSTRY ?No. of comments:12 Sam Koshy, KOLLAM, 5727 On 05-Mar-2017

Many AMCs have specially recruited RMs in their branches to mobilize direct plans. AMCs are preparing everything to pave the way towards the total shifting of existing Regular assets to direct assets. There is a group of AMCs combined to form a consortium and developed a system called as "their Utility". Some AMCs have decided to not join them but the consortium is forcing those AMCs who opted out to join them . Are we in Hitler Raj or Democracy ? Most IFAs have opted to stay away from this mutual fund utility system. The system in the beginning during development stages told that they have no intentions to allow investor public to transact through the system but later turned the plate and opened the system for the public . The utility system is free to contact all the clients who are mobilized by IFAs after spending so much of time and resources can be simply contacted at the click of a one touch . It is very clear and confirmed info that the utility system is aiming to educate clients the need for going themselves directly without the support of an IFA.As we all know 99% of the investors will not stay for long tenure without handholding by MF advisors , many investors came through us will be spoiled by this system in the days to come. If one tries to read between the lines it's very clear that the utility system is here to kill the IFAs . IFAs are suggested to avoid traps to grow the next level.

Submit Your Comments

uPjyk5

"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. "

Comments Posted

pv rao ARN NO :44436 hyderabad, 15 Mar 2017

it will spoil the mutual fund industry & share market. if they coming together to form a syndicate, with huge mutual funds, they detect the share market, which company share price go high or go low. with this, they will make deals with companies & earn money & spoil the financial market & industry. it is nothing but monopoly. It is not good for the country. Everyone should oppose.

V Ramesh ARN NO :MFU Mumbai, 15 Mar 2017

Dear Mr Sam Koshy, I would like to clarify certain "Myths / Roumours" with regard to MF Utility which you have mentioned in your discussion above. MFU was created by the AMCs to help distributors go digital and have lots of convenience in the operational matters, helping the distributors to spend more time in business rathar than in operations. MFU has been strongly supported by the IFA community. Thanks to IFAs, the total number of accounts (CANs) opened is now more than 1 lakh covering over 7 lakh folios in the industry. More than 90% of the CANs opened are by IFAs/Distributors. Not a single distributor has lost his customer because he opened the account of his client in MFU. MFU does NOT contact the investors for anything, except for communicating transaction related information. MFU also has a common app goMF that can be used by distributors. Many IFAs across India have benefited through MFU. I am willing to speak to you in this regard for clarification. It is the commitment of MFU that MFU is an "Execution System" and NOT A PLATFORM and, therefore, we DO NOT contact the investors directly in whatsoever manner to promote the same. If you want to test, you may open an account (CAN) of yourself and check it for a couple of months and if you are satisfied, you may adopt it for your customers. MFU DOES NOT MARKET OR SELL DIRECT PLANS TO ANY ONE IN WHATSOEVER MANNER.

Gajendra ARN NO :109984 Nagpur, 14 Mar 2017

It''s not in favor of its

Sachin ARN NO :113968 New Delhi, 14 Mar 2017

Agree! IFA''s should focus on their core strength & should not worry about such noises. They have always existed & will continue to co-exist. IFA''s add s to personal touch which is so essential for this business. Their ability to bridge the gap between market developments, experience, fund management, industry updates and their clients makes a huge difference. Unfortunately it takes years together for a client to appreciate these efforts. But when it does it definitely pays handsome rewards.

MK ARN NO :53077 PUNE, 14 Mar 2017

Yes, guinea pigs

Anantharaman K ARN NO :111771 Mysuru, 14 Mar 2017

True!! AMC''s are posing to be the biggest spoilsport in the path of IFA''s. It is pertinent to note that they have availed the services of IFA''s all these years and they now are greedily promoting the direct route to the investors by providing the necessary inputs by educating them on the selection of funds as well. Furthermore, SEBI is also a party for this great catastrophe for the IFA community which is like adding salt to the wound. It is becoming evident that lesser number of people are preferring financial advisory services of late due to backstabbing by both AMC''s and SEBI. Good look to AMC''s and SEBI. A day will come when you will realize that without the services of IFA''s you would be doomed.

Navin Kumar ARN NO :83441 PATNA, 09 Mar 2017

Your apprehension is absolutely correct and IFA should remain alert and apprise the clients about the hawkish motive of the AMC after onboarding the clients.

P Sateesh ARN NO :2449 Hyderabad, 09 Mar 2017

IT is very very Bad. Even not yet people Still they dont know All Amc thinking about Direct plans But they unable serve properly Quntam Mf enterd to Regular plans Who exesting coustmers People ready to pay y these people or worring By the IFA some Employment Has in existence Even Developed Nation also protecting Their Citzens y our People (ie Ministry of Finance) IFA Also Working on sundays and holdays All IFA should oppese the Same

Gopal majhi ARN NO :97695 Hyderabad, 07 Mar 2017

See, major culprits are some AMC and SEBI also known these.If they are thinking that direct business will take AMC then in future they will beg for business again from IFA.Only IFA can retain their clients always in mkt not AMC.

Nandakumar Varier ARN NO :ARN-91004 Kottakkal, 06 Mar 2017

MF Industry and its products manufacturers are loosing distributor confidence ,They are taking duble stand on various maters , this is a service industry it cant exist without trust large AMCs shuld come forward to reinstate the trust otherwise this industry and its customers will affected so badly in tuff time

Gulshan Kohli ARN NO :ARN-105840 New Delhi, 06 Mar 2017

Direct plans are actually not so Good for Probably most of the Investors. Because they are promoted by an individual Fund House and hence lack diversity. An Investor can enter at any time but will be able to make a Planned Exit, because Fund House never suggest to Exit from their Schemes. I am sure over a period of time Genuine and Sincere Investor will Feel the Difference and Accept the importance of IFA and hence forth stay with them for ever. Personalised Relationship is the Most Important aspect of Financial Planning.

Balaji Ram ARN NO :86759 Ayanavaram, Chennai, 06 Mar 2017

Sam, well articulated article to reflect investors & IFA ''s views. Are these RMs qualified? Is sebi doing justice to the public? When the market is good.. All is well. This is heading some where south pole. Just wait and watch.