MF News AMFI considering using part of IAP corpus for new distributor enrollment

AMFI considering using part of IAP corpus for new distributor enrollment

However, this would require a clarification from SEBI.

Ravi Samalad Aug 12, 2016

AMFI is considering how it can use a part of IAP corpus to enroll new distributors in the industry, said AMFI Chairman Leo Puri at the Business World MF Summit held in Mumbai.

"It is important to grow the distribution network in order to provide handholding to investors. If the industry wants to grow it needs IFAs," said Puri.

Puri said he is open to receiving suggestions from all stakeholders to link investor education with IFA enrollment.

However, this would require a clarification from SEBI.

Also, he said that AMFI has formed a committee consisting of AMCs marketing heads which is working on developing a strategy for rolling out AMFI's investor awareness drive. AMFI has more than Rs. 120 crore to spend on IAPs.

"We have enrolled one well regarded external agency which is helping us prepare a campaign on investor awareness. The blueprint is ready," said Puri.

Like what you are reading?

Login to get instant access to this article and many other such articles on business development, success stories and industry updates.

Don't worry ... it's FREE!

Have a query or a doubt?
Need a clarification or more information on an issue?
Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

Latest Articles

Your bulletin for the day

Your clients can now do eKYC on AMCs and AMFI website

‘Once you gain the trust of women clients, they are yours for life! ’

1.31 crore investors will have to redo their KYC to execute capital market transactions

Invesco MF settles case with SEBI on alleged violation

Prateek Agrawal is the new MD & CEO of Motilal Oswal MF

MF industry welcomes 24,000 new individual MFDs in FY24

Decoding the latest KYC status

‘Mid cap funds will continue to deliver healthy returns’

MFs increase exposure to private banks, capital goods and consumer goods

Click to clap

Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.

16 Comments

Jitesh Babel · 7 years ago `

Why would new distributors join the industry where the grand daddy SEBI is itself looking for all ways to kill the distributor. Direct plans, commissions reductions, commissions disclosure, forced RIA registration and what not. IFA will do all the effort in educating and bringing the clients on board an then just to watch him go direct, once he gains some basic industry knowledge or the guys from AMCs hound the big clients to go direct and cut the distributors lifeline.
Be an insurance agent where atleast the agent community is being looked at in positive light and taken care of.

Vi · 7 years ago

Well said sir... 100% true, what u told... I agree & support

Arun · 7 years ago

very true

Saurabh Yadav · 7 years ago

Fully agree. SEBI is just thinking how to remove distributers in the industry.

Creazyfinancials · 7 years ago `

When you don't have a definite strategy to take the industry fwd, you try all the darn ideas under the sun...there is chance that one of them may click... But it just a chance...

Sandeep Nirvan · 7 years ago `

Sandeep nirvan · 7 years ago `

sebi only fooling Distributors and so called IFAs. Even IFAs not able to make their initial expenditure good.

Goutam Das · 7 years ago `

I am not clear what is the role of AMFI on behalf of Distributors. Do you know Mr Silent AMFI ,what's your role for Distributor?Nothing only silent & sleep.

JAYPRAKASH · 7 years ago

silent &sleep and enjoy

Poornima · 7 years ago

Amfi is an association of mutual fund individuals wherein the panel consist of only mutual fund industry participants to frame sick rules for its distributors . It has no responsibility apart from making money by way of a certificate renewals and empanelments !
There is absolutely no forward thinking , if it did then by now it should have enabled and embraced technology to help ifa to download arn cards or even e certification of code of conduct ! No sure what rocket science is required to get this done !
Can AMFI put its accounts in public domain as to the amount of money collect through empanelment and certification and as to what where and when is the amount spent

Daxesh thaker · 7 years ago `

Absolutely in favor of above view. Why AMC should sell directly. The one who manages fund sells too????? Where is the code of conduct... Surely there will be break out another big scam in MF oneday. Small investor money would be at stake if AMC themselves keep selling for their own interest directly...

devendra · 7 years ago `

AMFI has not supported and also the member enrollment is a costly affair, and renewal of business is also costly. the cap of fixation of brokerage, and no audit of the brokerage given by AMCS is also the negative factor affecting the enrolment. further the compliant cell is defunct. no body to clarify the brokerage paid by the AMCS/DISTRIBUTORS and no clear guidelines unlike IRDA .

Arun · 7 years ago `

AMC's business is to manage funds and not marketing. Let distributors do marketing and savvy investors go direct.

Arun · 7 years ago `

AMFI should not charge IFA's, Individual and new distributors fees for enrollment and renewal every three years. It should be done from Investor Protection Fund Corpus. Also subsidize CPE cost to NISM from Individual and new distributors from this.

Arun · 7 years ago `

In this digital age and digital India there is no need of RTA's. AMCs can do this job inhouse. Also after central KYC registry comes into existence AMC's can save on RTA cost and Investors will benefit.

Ruz · 7 years ago `

What is the use of more distributors when SEBI is in the effort to remove all distributors from the market and they are full fledged proposing investors to go Direct? AMFI is dancing on distributors money whereas it is doing very little to nothing for them to help conserve IFA's. If all investors go direct and if everyone decide to close down their business then what will happen to AMFI? Where will they get their inflows from? I think this industry needs matured people than copy paste writers.

More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.

POLL

MORE POLLS

AMCs can pay trail commission to the new distributor if investors initiate transfer of their assets. How will this impact you?

Help me get clients of other distributors who are underserved

Lead to poaching of clients

No significant effect on my business

EVENTS FORUMS