FIFA, FIAI to meet AMFI on reduction of trail commission

AMFI should think of relative relationship between investors and distributor
History is proof that because of Distributor the awareness of mutual fund exist now and Many investor got profited in leau of small portion that they pay

I can not understand why only with mf industry only???There other financial products like insurance where commission is 30 to 35%...Why government not reducing commission in li products... Maximum customer not received any gain in ulip and traditional kind of products because of charges and heavy commission and no one intersted to reducing there cost then why with mf only??

EXCELENT WEBSITE FOR THE INVESTORS AS WELL AS IFAS

It should be strongly opposed & why only IFA's part is on target what about AMC's part ?

It should be strongly Opposed & why only IFA's part is on target , what about AMC's part ?

Very bad news.new ifa.

I think IFA’s should look to stop distribution of new business for the AMC’s and let them realise the importance of IFA business

It's not justified to reduce the income of IFSs because everywhere increment is given considering the rise in cost of living. We have to service the clients even though the investment is through banks or other institutions though not always but sometimes. Further banks & other institutions take advantage of their access to investors cash Balance or their weaknesses like providing loans etc.whereas we do fair dealings. Still our income is being cut. The protection of investors can be done by preventing banks & other institutions from unfair ways of doing business. The regulation is already there of direct & regular mode of investment. The investors can decide about it. The brokerage should rather be enhanced & let the investors decide whether they want an adviser or not.

What to do now as a new small IFA?

Regret, the decision. Can you compare with INSURANCE ADVISORS COMMISSION & IFA TRAIL BEFORE CONCLUDE ?.

Direct Plan must be abolised. Direct Plan is very harmful for long term wealth creation for both distributors as well as Investors. Sebi/ AMC must stop direct Plan. Let commission reduced. Once I educate my investors must be remain with me .

I took our distribution business in 2014 and managing an overall AUM of nearly 40 Cars, First Government can't give jobs then we identified one purpose and working on it like a win-win to us and our clients, they don't allow us to live even like that. It's so sad that AMFI doesn't have any kind of voice to say to SEBI. In India no one is ready to pay the fee for Advisory may be one in 1000 clients might be ok with it. Once the markets go tank further there will be a substancial drop in the MF transactions for sure. I wish that day will come soon again, and then SEBI and AMFI will keep it that way for some more years to come.

Now it is time to unite all india distributors, call a strike or some thing else to teach fund houses, for this dirty game, they want each and every bite from investors for rise in their profit, let them realise that without distributors they will not keep them growing.

this kind of decisions may hit the unemployment, all the decision makers should think on the ground realities

Jo log inti samajhdari se (Reducing Trail Commision 15 to 20 bps) lagu karne ke paksha me hai. Shayad desh ke bahut vikash ke bare me soch rahe hai.Unki shiksha unchi kism ki hai. Ab to sabhi lagbhag Nivesh ke Jankar ho gaye hai. Desh me achhi Takniki (prachar madhyam ) ka vikash ho chuka hai. Band kar do commission system, kyonki SEBI ke logo ko kuchh logo ka commission jayada lagne laga hai.Thik hai jaldi samajh me aa gaya, koi dusra rasta bhi to unke pas hoga, jisase chhote se chhote Niveshak ko yah bat samjha sake ki, Is Desh me ek rasta Nivesh ka Mutual Fund bhi hai.Yah kam sirf aur sirf FIFA ke log karte hai.Yeh bat SEBI ke samajh me nahi aa raha hai. Pure josh aur hosh se is bat ko samjhaya jaye,abhi Nivesh ki jankari ARN Holder ko de lene do.Nahi to ARN holder toot jayega aur nivashak chhoot jayega,jo sapne dekh rahe hai wah hakikat me nahi badal payenge. SEBI aur AMC dono tay kar le, dono ko lage ki ab ARN Holder ki jaroorat nahi hai, to commission ko zero par la kar dekh le, koi darne ki jaroorat nahi hai.Is desh me sabhi log ji rahe hai, jo commission per karya nahi karte hai, pariksha pass nokari pakki, lagata hai thak gai AMC aur SEBI commission ke chakkar me ab koi naya rasta khoj kar rahi hai.Jo hua achchha hua ,jo ho raha hai achchha hai, jo hoga achchha hoga.

It is not in Nation's interest to reduce TER. With lot of efforts, distributors are doing a commendable job of building the SIP book month by month and now surely, the FII outflows will not effect our markets.

we are Nation's pride
for our own Right, we have to always Fight.

The pay scale of government employee increases every year....but goverment targets service industry ...so very much problem of unemployment,
Plz reduce PSU bank employees salaries, it will generate more interest for his clients,
But can't take that step, why govt always target to services persons, they are not take payouts from govt,they are getting mony for their service,

Plz stop adds,it will also reduce the fund expenses.

Plz think....don't reduce trails

Mutual fund industries growing reason ifa but at present industries very well grow here after no need ifa business.

Hello Friends,

We all must realize that welfare / promotion of IFAs is hardly a concern of AMFI and SEBI . Their actions in the distant and recent past are very clear. They want to promote corporate distributors and banks and want to wipe off the community of small IFAs progressively. Now as IFAs what can we do in this scenario?

1. Unite and Take steps which awakes them : Strong measures like stopping the distribution of MFs is something impractical, however this recourse might give a rap to the industry (AMFI, SEBI, Fund Houses). It is also impractical because this will have an immediate dent in the monthly earnings of an IFA. Also this step is not possible as we are not united. I am not sure even if a legal recourse would have any effect.

2. Learn, Educate,Diversify : An IFA should educate oneself and then channelize clients' investments to other financial products gradually. A related financial product is direct investment into the stock markets (equity investments) and Bond markets ( Debt Investments). So by this method one can mirror exactly what the fund manager does with the corpus. This method I admit takes a lot of effort and time but believe me this works in the long term. I have been doing this with my clients from the time upfront commissions were axed. Today my clients and myself both are happy.

3. Go Advisory : This route is not easy to implement as most of the investors do not want to pay for our services separately. But with diversifying into other financial products an IFA can create value and hence charge commissions.

I am available for any discussion on this on my email id m.prithu@gmail.com

Amfi is forgetting that it is through Ifa community that mutual fund investment has reached this level. Why are they reducing our commission. If they want to reduce the expenses, fund houses should reduce their own expenses. Why not reduce the salaries of their Cio & fund managers who draw hefty amount

Why only MUTUAL FUND reduce TER. There is Life insurance companies brokerage is to high and that is only mis guidance to investor there is NO TER REDUCTION SEBI recomdation to increase brokerage. Why?????

Unless all the Distributors do not come together and approach SEBI collectively, the AMCs and Amfi will only exploit the distributors.
First they passed on the full load of GST to the distributors, now they have reduced trail significantly to satisfy SEBI's TER norms.
Has anyone ever heard any AMC employee's taking a Pay Cut?
United we STAND, Divided we FALL.

Sebi,Amfi,fund houses all are hell bent on finishing IFA's.we all should raise our voice against this gross injustice.

As the latest updates are coming on TER and brokerage reduced,it seems a hit on distributor's earnings, but it's not a biggest problem. Our biggest problem is the two NAV theory, we could survive with the less brokerage but couldn't survive without business as the AMC is fully focusing on the Direct business specially for Medium to HNI investors. For above purpose , All AMC are expanding in more n more cities, with new staff strength and big AMC have started Direct business counters in their branches. Their are no disclosures about adjustment of recurring expenses of AMC branches and employee's in which part of business, wheather Direct business or Regular! I feel it is more important to abolish the two NAV theory and decide an Uniform NAV for all wheather the investment is coming through Direct or Regular. In such case, Let investor should decide about their Investment, with the help of Financial Advisor or Direct Option. Currently, I personally feel , our extra influenced customer are chasing for the Direct plan, just with a believe that why should they expense more for the same product, in which they have already invested for last 4-5 years. Lastly a humble request with SEBI, to abolish the B'30 additional brokerage and also the Refresher programmes for the ARN RENEWAL along with Registration through New Cadre. Mutual Fund Industry doesn't need these Distributors who can't qualify the basic eligibility criteria of NISM Examination for Mutual Fund Distributors.

As the latest updates are coming on TER and brokerage reduced,it seems a hit on distributor's earnings, but it's not a biggest problem. Our biggest problem is the two NAV theory, we could survive with the less brokerage but couldn't survive without business as the AMC is fully focusing on the Direct business specially for Medium to HNI investors. For above purpose , All AMC are expanding in more n more cities, with new staff strength and big AMC have started Direct business counters in their branches. Their are no disclosures about adjustment of recurring expenses of AMC branches and employee's in which part of business, wheather Direct business or Regular! I feel it is more important to abolish the two NAV theory and decide an Uniform NAV for all wheather the investment is coming through Direct or Regular. In such case, Let investor should decide about their Investment, with the help of Financial Advisor or Direct Option. Currently, I personally feel , our extra influenced customer are chasing for the Direct plan, just with a believe that why should they expense more for the same product, in which they have already invested for last 4-5 years. Lastly a humble request with SEBI, to abolish the B'30 additional brokerage and also the Refresher programmes for the ARN RENEWAL along with Registration through New Cadre. Mutual Fund Industry doesn't need these Distributors who can't qualify the basic eligibility criteria of NISM Examination for Mutual Fund Distributors.