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MF News Direct plan seller WealthTrust to exit advisory business

Direct plan seller WealthTrust to exit advisory business

The app will not receive fresh business from January 14.
Nishant Patnaik Jan 7, 2019

Online direct plan distributor WealthTrust will exit advisory business soon. A source close to the development requesting anonymity has confirmed that the platform will not accept fresh applications from January 14. This app had gained some traction as it enabled existing mutual fund investors to switch to direct plans in a few seconds without any paperwork.

Since the app used MF Utility to execute transaction across fund houses, all its existing clients will continue to execute transactions through MF Utility by using their common account number (CAN).

The business model of WealthTrust required  investors to pay a monthly subscription fee of Rs.39 (premium plan) or yearly fee of Rs.999 + 0.25% of assets (smart plan) to use this app.

Sources say that the WealthTrust app was downloaded more than one lakh times on Google PlayStore.

It is pertinent to mention here that the app had received funding from venture capital firm India Quotient.


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S.VENKATRAMAN · 2 months ago
It clearly shows investors not ready to pay even Rs 39 per month as fee. What is the fun in pushing RIA model. Mutual fund is still a push products , we have a long way to go.
KARUR SRIDHARBRAM · 2 months ago
I think the day is not far when our wafer-thin teain commission will be entirely wiped-out in the name of reforms & transparency.
CoachMaria · 2 months ago
One of the things to do is to watch what is happening in other countries, namely, S. Africa, New Zealand and the UK -- for what will happen in India.
S M Nagpal · 2 months ago
The report has not outlined the reasons that compelled the company to exit. We need to study the reasons
Vishal Rastogi · 2 months ago
A slap for policy maker. No business sustain without an adequate remuneration...... Still its time to save the industry growth !......... think think think .....
C D Chaudhari · 2 months ago
The industry which is not Advisor friendly will vanish in future if time and returns will negative. Only advisor can sustain the industry even though negative result. I think no need to worry we are the advisors, we have the client,we can sell any other product if industry trying to avoid us.
Kmg · 2 months ago
We r in society where in Larger chunk of people are not even ready to pay even 5 rupees extra for the services what they get from providers. Expecting collecting fees from them is difficult. You need to have separate skills other than your professional skills.
Still need to grow up the thought process. Till then
We need to wait or to exit.
Shashidhara S R · 2 months ago
Venture funds play with other honest working distributors and advisor and snatch customer.First AMFI &SEBI should respect distributors and advisor after collecting registration exam & renewal fees
Zafar jafri · 2 months ago
Company is going to exit after more than one lakh times company app that it is very clear message that it is very expensive business model but income is going low day by day what is the funny RIA mode ........... please think regulator ji.......
Ritesh · 2 months ago
I think most of us got it wrong.

Their intention was not earn from advisory business.

I think they just worked to shift the regular business into Direct.

Now their job done.

And I might be possible that AMCs are involved in promoting such App or WealthTrust kind of companies.
Shashidhara S R · 2 months ago
Back to square one close all AMC only India trust(dishonest fund) like LIC of India take 700 in 1992for 15years and pay 15years.now 12 2lkh accident coverage,330 2lkhs life coverage + pension fund+8000 5lkhs insurance mediclaim from Punjab national Bank,so from our money let government create manufacturing jobs stop imports from China ,India grows and investors like 10000k in Infosys after 25years get 4crores which matches with inflation and not like ambani S cheating public selling CDMA phones for 32k in 2003 and closing business and getting bankrupt with jio4g,with bsnl still yet to commence 4g,not in the name of skill India kill India principles
Saurabh · 2 months ago
I don't understand why the regulator & AMC are promoting direct business in such a market where returns are not certain!,we the distributors/mutual fund advisors play important role since inception controlimg the sentiments of the client where day to day market news disturb client sentiments & also we play the important role of achieving financial goals of the clients.
Nagaraj · 2 months ago
Why not disclose Insurance and ULIP Commission
Nanyara · 2 months ago
Commission taking middle men have plagued the whole industry for years. Its time for them to step aside. With clear and transparent pricing by AMCs people can choose to invest directly in AMCs even if the direct fund advisors are not an option. However commission taking middleman are hardly an option anymore
Sanjay kumar jha · 2 months ago
I always push Regular plan but your wealth trust form say it is bad. Direct plan is good for investors, but today sometime person take a test of direct plan who hardly pay advisory fee
vinod kumar harjai · 2 months ago
I agree with Mr Nagpal, the reason is still not known ,why Wealth trust is exiting from RIA MODLE
may amount 999 per year is too less to survive ,and you will have to attend all querries of boarded clients.
Fauzan Ansari · 2 months ago
One lakh downloader but how many subscribers of their plan?????????
Sumit · 2 months ago
Haha India is a country where most of the investors are not giving money of even photocopy , then how will they give fees to distributors
Vishal Vashisht · 2 months ago
Charging fee is not an easy task in India and that too in advisory business.
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