Most financial advisors agree that their clients will notice that direct plans have become cheaper. However, they share a strong conviction that they can make their clients realise the value of their advice.
‘Difference between the regular and direct plan has increased. What would be its impact?’ asked a poll run on Cafemutual.com
Close to 3500 IFAs participated in the opinion poll featuring on our website. Of these IFAs, 50% or 1732 IFAs feel that they can convince their clients that their advice holds value.
However, 1328 IFAs or 38% of the total respondents believe that investors will find direct plans more attractive.
Just 394 or 11% distributors feel that Investors will not notice the difference in expense ratio between the two plans.
Here is the snapshot of the opinion poll result.
What would be the impact of ban on upfront commission and shift to all trail model on your business?
Investors will notice the difference but I will be able to convince them : 1732 votes, 50%
Investors will find Direct plans more attractive: 1328 votes, 38%
Investors will not notice the difference : 394 votes, 11%
Total 3,454 votes