FIFA, FIAI to meet AMFI on reduction of trail commission

It's very painful to all IFA. PLEASE STOP REDUCE TRAIL COMMISSION.

ARN-4103
In every day life of IFA there is increased pressure from Investors to serve them at their door. There is big problem if Investor is partially literate without Computer and E mail address.
They can call any time post investment on demand of daily NAV, Valuation of their funds, Redemption and switches.All these are like impossible at service in B 2 towns stretching several kilometers.
It is painful to find sudden reduction in upfront and trails to IFAs
AMFI as our Gods Father must protect us.

It is unjustice, advosiors already facing very difficult to get the investors. Rethink, not reduce commisdions.

The pay scale of government employee increases every year....but goverment targets service industry ...so very much problem of unemployment

it is very sad to reduce trail ur upfront what ever sebi should look fr insurance commission highly what is mf upfront negligble

Sad News to IFA Plz stop this kind of Thing ,

It is seen that TER of all schemes is increased by 1 to 2 paise, means investor has to pay more, and the additional upfront pay out in earlier B15 cities is stopped. Now after reduction in the trail by yet another 15 to 20 bps it will take a double hit for the survival of the distributor's in earlier B15.

We fail to understand as how the city like INDORE which was within B15, after due to sudden withdrawal of upfront can be subjected to reduction in overall distributor's trail within 3 months while the AMCs will start saving on the overall TER of the AUM already reached in all these cities prospectively.

More over last year the distributor community is given a hit @18% in the name of GST and now yet another 20% in the name of TER while the AMCs have not only increased TER in each schemes but have also availed input credits under GST.

In fact investors through AMCs should pay back GST to the distributors so that this double hit is not given to distributor community alone.

AMFI must do mathematics of overall fees and it's distribution after considering the overall impact of the exercise prospectively including that of GST inputs availed by the AMC of the GST paid by the distributor's. The investor's contribution to the overall scheme in which he is invested through a distributor should not turnout to be loss to the distributor and gain to the AMC if the regulator is focussing to reduce the cost to the investor's.

Hope AMFI will collect data of last three years and then will prepare a projection of next three years and after distribution of TER to distributor, AMCs and Government should rationalise it's pattern.

It is not justified for IFA community.Nothing in hands of IFA after deduction in trail commission.

THERE SHOULD BE SOME RATIONALE THAT HOW THE AMC FEE TO BE PROPOTIONED AMONG AMC, DISTRIBUTORS AND OTHER PARTICIPANTS OF THE MF INDUSTRY. OTHERWISE AMC WILL ALWAYS WORK AGAINST THE DISTRIBUTORS.

very bad initiative.
please look at other financial products where is commission is 25 to 35%. stop that urgently.

on one hand trail getting reduced and on other hand amfi promoting direct plans through advertisements " just opposite to insurance where distributors are promoted " i think coming time will be of ulips if this continues"

It's very Sad & unfair. It's hurting IFAs. Everyday the Petrol Price going Up and IFA income is reducing !!! It's very very Sad...

BY THIS MOVE I ASSUME THAT SEBI IS VERY MUCH INTERESTED IN REMOVING AGENTS IN A PHASED MANNER THUS PROMOTING/ADVERTISING/STRESSING MORE ON DIRECT PLANS - CITING INVESTOR FRIENDLY RULES. THIS IS VERY BAD FOR A SMALL IFAs WHO ARE EARNING PEANUTS AND ADDING TO THIS IGST IS 18% APPLICABLE. WE HAVE TO EVEN PAY 18% IGST AND ALSO INCOME TAX.

Distributor gets trail commission of 0.30% to 0.40% for all old assets, even though from 2014 full trail commission started. When trail commission is increased, AMCs have not increased trail for old assets, but I hear from RMs that the reduction will be applicable to all assets. including old and new. When trail commission raised it was not retrospective, but when reduction happen it could be retrospective. Pricing is the reason we have less than 50000 active distributors, but India needs atleast 4 or 5 lakh distributors in MF to service 35 crore families, but Insurance sector has more than 10 lakh agents.

there should be proper distribution of commission among the distributors. this is our bread and butter as we have engage full time into this. SEBI should think wisely that we IFAs are working hard towards clients portfoilio and other services.

Very Very sad for us....

Big pain

Very Very sad for us....

Big pain

First of infuse some senior IFA into Amfi board, next all product we use doesn't come with manufacturing cost and distributor margin, retailer margin except mutual fund, next when govt one hand promotes self-employment another hand stealing the earnings which is minimal....

First of infuse some senior IFA into Amfi board, next all product we use doesn't come with manufacturing cost and distributor margin, retailer margin except mutual fund, next when govt one hand promotes self-employment another hand stealing the earnings which is minimal....

very sad.!!!! ?????? ?? ???? SEBI ?? ??? ???? ???? ????? , ???? ?? ??? ????? ?????? ???????? ?? ?????/????? ??? ?? ??? ??? ??? ?? ???? ??????? ?? ????? reduce ???? ??? ??? ???? ?? !

Very sad news, we are giving services and advise to our clients at very low cost, no client pays extra for it, . SEBI AND AMFI must also think for IFAs and make planning to increase revenue as many clients has very less AUM and we give services as required by them timely.

SEBI & AMFI are working in unision with AMC to phase out distributors in course of time -the process started in 2013-14 and with new vigor and interest in MF, the companies are getting emboldened to force us to take advisory route .The Govt has to realize that markets and economy have all shades and it is the distributor which is your face in a downturn .MF as an asset allocation is a sunrise industry and slowly and steadily due to host of factors including untiering effort of distributor is getting household acceptance.Time for unity amongst our fraternity .PL do the balancing act in stead of making things difficult for intermediary who plays such a vital role in educating investor to put their money in productive asset.

SEBI & AMFI are working in unision with AMC to phase out distributors in course of time -the process started in 2013-14 and with new vigor and interest in MF, the companies are getting emboldened to force us to take advisory route .The Govt has to realize that markets and economy have all shades and it is the distributor which is your face in a downturn .MF as an asset allocation is a sunrise industry and slowly and steadily due to host of factors including untiering effort of distributor is getting household acceptance.Time for unity amongst our fraternity .PL do the balancing act in stead of making things difficult for intermediary who plays such a vital role in educating investor to put their money in productive asset.

Very very sad

We are already challenged with the direct plans, new GST regulations, inferior performance and now lower commissions, its getting harder. All the major fund houses are making significant profits and with expansion of Investor bases the profits are expected to increase further but small IFA's life has become more and more difficult and there is no Operational leverage we can fall on to like bigger distributors... Please urge for help to this critically endangered community of IFA we too are important for the ecosystem of Investment world in India