‘Ban on upfront commission may reduce the growth of my business’

Ye 13% wahi h jinka aum 100 cr se upar hai baki wo Jo abhi 50 cr see niche wale h jinka office aur staff ka kharch upfront see chalta tha .

Sir, overall our mindset disappoint, no future growth, your result is true.

those whose aum is less than a crore can cooly forget this profession, as further cuts may be there. it is only for above 10 crore aum . this is also the objective amfi, sebi, amcs ulterior motive

People who decided to reduce the brokerage of the distributors has never distributed mutual fund. Its as simple as that. They represent the AMCs who thinks in favour of the current profitability of the AMC. I am sure they are not at all aware of Indian market demography & indian investors mindset. Tomorrow a guy would think twice before joining this industry as a distributor & only a handful of tech-savvy investors may get intersted in directly investing in the mutual fund & ultimately our nation would get adversely affected.

Those AMU is less than 10 cr I don't think to plan a carrier in this field.
And not seeing any opportunities in this field as advisor.

Chhota IFA do survive in this situation

Distributors business is gone . There is no doubt. An IFA with proper office, staff and other infrastructure should pack up to avoid accumulated losses. From 1st April 2019, the brokerages are going to be even less. It is already put in place. Even now some IFAs are coming out with brave statements. Who are they trying to impress, God only knows. AMCs behalf as if they are least affected. Let them do the servicing henceforth.

AFTER BAN UPFRONT COMMISSION, MY EARNING REDUCED BY 50% IN MF BUSINESS.
NOW, I CAN'T SURVIVE IN THIS BUSINESS, FUEL COST, OFFICE RENT, SOFTWARE, MANAGEMENT EXP. ETC ARE NOT MANAGED BY MF EARNING, SO I AM ALSO DOING HEALTH AND LIFE INSURANCE BUSINESS. ....PERHAPS IN FUTURE, IFAs WILL LOOSE MF BUSINESS ONE BY ONE...... NOW THIS IS TIME TO MAKE A REVOLUTION AGAINST THE BAN OF UPFRONTING.........

Ban on upfront commission cannot compromise at any cause because none knows/predict what happens tomorrow.
So postpone of payment commission /salary/weigs cannot violation of globally acceptable law
SEBI must revoked the circular dated 22oct2018

Going forward trail will also decrease... so there is no future visibility for the IFA whose AUM is less than 10 cr...

Yes we don't think if all some are new the person's who gave 100 crore a um no issues but think this is the only Industry which grows and your salary is reduced iam not talking only individual, I had suggested and my client invested in Lumpsum recently but I will not get a single rupee on my suggestion how much that hurts who gave small Aim also is their any step which is to safeguard distributors, I thin investment below 25 to 50 Lacs should not be allowed direct as many customers make mistakes and will never comes back to equity market those who invest without advice on their own and make losses by not understanding nature of market

While banning of Upfront may be debatable, I am surprised that Insurance companies, which are also into Mutual Fund business, are still offering Up Front. If SEBI feels Up Front is unhealthy for Mutual Fund business, why IRDA is sleeping over the matter ? Or...is it that IRDA feels that SEBI is wrong ? Why should there be different rules framed by IRDA and SEBI for Mutual Funds ? May be it is a matter for Finance Ministry to ponder.

Small distributors earning less than 50000/- per month , & solely dependent on this income , will face lot of problems , as other office expenses , Taxes etc. are also to be met out of it. They will be out of business sooner or later like KODAK , after digital photography came . Higher authorities don't know ground realities. These people also contributed a lot in creating awareness of MF Business. it will become more & more difficult for these people to survive.

Mera to poora financial system he Damage ho gaya, meri beti 26 year ki hai uski shaadi kya 36 year par karu......mera Commission ....kisi tarah 25000 to30000 pahucha tha abhi 15000 rah gaya hai....meri age 53 year hai.....SEBI ke anusar ...after 5 year meri income 30000 hojayegi to kya us waqt 30000 se SEBI ki AARTI UTARU, YEH INCOME 5 YEAR KE BAAD KIS KAAM KI MARKET(SENSEX) AGLE 5 SAAL 20,000 Ke Level par raha to kya SEBI IFA Ka Ghar Chalayegi........SEBI...HAI...HAI....SEBI....THOO...THOO

mutual fund ke chhote distributers ke liye bahut hi mushkil samay aa gaya hai koi 10 saal koi 15 saal koi 5 saal se kaam kar raha hai jiska aum 10kror se niche hai jimmedari bahut jyada hai pahle upfront commission mil jata tha to ghar sansar chalta tha ab mushibat hai bhagwan jaane aage kya hoga..

Why Only MF distributors are penalized? If you see the LIC agent or insurance agent , they are still making 25-30 % commission and some insurance companies are still offering them Business Associate model ,where the payout is as high as 50 - 60 % .. Are these Govt organizations including IRDA not aware of this and only asked to curtail the penny commission earned by MF distributor by SEBI. Why is this disparity. ??

A few points of observation from my side are :
1) This IFA business is no longer for new players ; unless they have support or back up to run their practice for atleast 4 years without expecting any great income.
2) We all have to cut down on different expenses like Office, staff etc. Make maximum use of online mode as well as AMC infrastructure.
3) No use comparing insurance commission as they are getting 40% upfront but what about the next 5-10 years ?? they will hardly be getting anything where as trail will keep on increasing year on year.
4) Not to depend solely on Mutual fund. Include Life, Mediclaim, and non-life in our range of products.
5) Take it or leave it. Nobody has forced us to enter this line and nobody has forced us to stay on. There will be a lot many changes in the future as well. So if we cannot sustain ourselves now, we should better leave and do something else rather than crib and cry.
6) I still feel that whosoever is sitting at whatever AUM ; his AUM will be double from today's level at December 2020. So all the best my fellow brotherens

It will discourage the moral of IFA having small size AUM below 10 cr.wil affect adversely on the entire MF industry business

Friends don't panic on the current in mutual fund industry

The problem is that these government babus don't understand the basic difference between "cost of acquisition" of a customer versus "cost of maintaining" a customer.
Often the "cost of acquisition" of a customer is quite huge in terms of time, effort, persistence and money spent on it and then only say, out of 5 prospects, only one is converted to a customer.
It is a simple theory of marketing.
And that's why, in life insurance business, the first year's commission, which earlier ranged from 35% to even 50% and has now been reduced from 20% to 35% is only because of this reason that the cost of acquiring a customer is way too high.
The problem was not with upfront commission per se or as a concept. The problem was with these AMCs who used to give not only very high upfront commission, even backdating future trail commission. We all know how Reliance MF and ICICI MF have given upfront commission to the tune of even 5 to 6% only to secure large business for a particular Scheme; these AMCs were front-loading the future trail commission.
Of course, when you backdate or front-load future trail commission, you not only distort the entire commission structure, incentives and practices in the industry, you (AMCs) are also wrongly forced to calculate initial or first one or two years' NAV also as wrong NAV. And that's where the new customers who entered into the Scheme in the first two years, would wrong NAV which is fundamentally wrong.
The Industry has to come clean on these practices.

Kind attention Finance Minister,
SEBI is reducing the trail commission from April 1st. As per their history, they will keep on reducing the commissions time to time. Why they are not cutting their member's income?Please stop this killing of Indian economy. These actions lead to fall in Mutual Fund investments in India.

are bhai main to margaya Na kamain Na market u per sebi should change his view lic 40% com