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MF News ‘We want 5 lakh distributors to increase MF penetration’

‘We want 5 lakh distributors to increase MF penetration’

A Balasubramanian, CEO, Aditya Birla Sun Life Mutual Fund shared that the fund house plans to open new branches to create its presence across all the 542 Lok Sabha constituencies.
Shreeta Rege Jan 11, 2019

A. Balasubramanian, CEO, Aditya Birla Sun Life MF in a press conference today shared their plan to activate new distributors such that the distributor fraternity grows from the current 1.3 lakh to five lakh over the next few years. According to Balasubramanian, strengthening the distribution fraternity will help increase the overall reach of the mutual funds industry.

To strengthen the distributor community, Aditya Birla Sun Life MF is running distributor engagement programs throughout the country. In these events, the company shares actionable ideas with existing distributors to motivate them to increase their business.

The fund house also reaches out to insurance agents who would like to distribute mutual funds. They are also targeting postal agents, retired teachers, retired government and semi-government officials who can sell simple schemes as defined by SEBI.

The fund house also has a dedicated team, which works on increasing distributor engagement and activating new distributors.

The fund house also plans to increase their footprint in all the 542 Lok Sabha constituencies from 260 locations at present. Balasubramanian, feels that having a ground level staff in every market lets them tap more retail investors. It also allows them to develop the distributor base in the region.

They are planning to activate 40 locations every year. Out of the total 542 locations, some will be virtual locations as the company will have an employee in the market but no physical branch.

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24 Comments
T.vijaya lakshmi · 2 months ago
Good idea.But who will come forward without sufficient income.
Fauzan Ansari · 2 months ago
Correct
Reply
P S · 2 months ago
I think you should seek the help of charitable organisations. Individual won't work without money.
Vikas Gupta · 2 months ago
The planning is ok but I doubt in execution. There is nobody visiting existing advisors empanelled with the AMC. About new branches opening, I am sorry to write that nobody from the amc visited since the new branch opened in Rohtak. It was better before the branch, at least somebody from the amc used to visit once in 2 months time.
K V Raghupathi · 2 months ago
Dear Mr Balasubramanian,

Why MF industry is looking upon more distributors to join the profession rather than AMCs to increase their Human Resource to observe the opportunity?

Your mind reading is very simple. By enrolling new distributors by posing great opportunity, industry can have huge man power to carry AMCs applications and brochures to bring in more business to MF. And AMCs can be out of any distributors reach for any quirry on financial compensation for IFAs service. This is what I am experiencing since 12 years.

We are the cheapest Human Resource available for the industry, still every other regulation by the regulator and AMFI put us in financial hardship and financial fortune to AMCs. Reduced brokerage for the same assets under advisory between September to December 2018 is as significant as 25%. Industry want us to accept that and do more business for the financial fortune to AMCs.

Any of you in the industry level dare to reduce your own salary and compensation by 25% and still happily do more business.

IT IS VERY EASY TO PREACH RATHER THAN PRACTICING.
Sudhir Kumar Mishra · 2 months ago
I do agree with the statement of Mr. K V Raghupati sir.
Ravi · 2 months ago
We ifa community teach how to invest and why to invest to all investor and SEBI is taking all negative step which will affect every ifa for their future earnings and now the situation is ifa is no more with only in this business as all have liability so hope we get some good news also for the ifa in this year
Denzil p Bayer · 2 months ago
Commissions are patheticaly very low.....Who will spend time and energy at such low pay/wage/commission or whatever name you choose. It also costs money to service an investor...
Sandeep Nirvan · 2 months ago
What you have think about survival of these Distributors
Bikash Kumar · 2 months ago
At one point in life you reach to a certain position werein you can give lots of Gyans and Suggestions but you should understand there is no taker of it. All the CEOs and CFOs of AMCs says in common forums that the expense ratio is still higher in India but no one says the penetration of MF in India and other Countries. Because they are getting there part of share, it is our share which is getting compromised. Even group chairman (Name intentionally not Quoted) says we need to stop mis-selling MFs but the highest mis sale is done by his bank only both in Insurance and MFs.
Reply
BABULAL ARJANBHAI Gajera · 2 months ago
I agree that the brokerage are very low.sebi has decided to cut size of MF industry the business mobilize by IFA.it will affect drastically in years to come.
Mrinal Kumar · 2 months ago
Yes they 'll need more IFA's for Growth bcoz whatever they do max of investor rely on personal touch.
Buy after 5 years what AMC's, AMFI n SEBI 'll do ? They 'll ask distributors take the RIA mode or go away.
It 'll happen either u believe or not , u 'll see it in coming years.
Anil · 2 months ago
Dear Sir
It's a challenge for IFA to survive similarly it's a challenge for Fund House to enrol new IFA whose commission is low then a plumber carpenter for enrolling a client of 5000/- SIP let's accept this challenge to enrol new IFA Who has good selling skills to sell a complex product like MF on a payroll of Carpenter for getting 5000/- SIP client
James Bond · 2 months ago
Why do you want distributors ?

Why do you want to spoil people's lives & careers ?
sandeep · 2 months ago
Now what i earn on A SIP you know very well,But you dont know i spent minimum 20 Rs to send this Form to AMC.Its Practical Problem.
How a New IFA survive in this Atmosphere .

Girish prasaf · 2 months ago
You want IFA but free of charge.is AMC employees working free of charge.After working 16 yrs for only mutual fund I am switching to insurance now with pain
Ganesh · 2 months ago
It dosen't look good Sir. All the decisions against IFAs were taken during your tenure as AMFI Chief. You are a grand failure. IFAs are paying GST instead of end customers 100% because of you as AMFI Chief. Can you do the same to Insurance distributors. I don't think you are fit as the Chief of ABSL MF.
Raman · 2 months ago
Expend it in bjp rulling state they will give u another name of distribution as "carseva"
Ashoke Kumar Basu · 2 months ago
Kitna dete ho???
Amit kumar · 2 months ago
Why you need more ifa
No budy can work a few commision
Ramkumar · 2 months ago
Why do you looking for new IFAs? Why don’t you plan to increase your employee force to work for DIRECT Plans?
Murari · 2 months ago
Well, after destroying the distributor community, they come out with such horrible statements. They can't provide a living to well trained existing intermediaries,but they want to waste the time of the poor post office employees or other such ignorant people in semi urban areas and engage them in what, I do not know. India will never have the like of Steve Job and Bill Gates , but will have the likes of people who come out with nonsense statements as above. Idle minds.
Rajesh jaiswal · 2 months ago
Ek taraf to distributor ka commission Kam karte ja rahe hai aur dusri taraf chah rahe hai ki hum log mf me penetration badhaye,Hume to ye bhi nahi pata ki future me humara existence rahega ya nahi,bevkoof banate hai upar baithe log
Sanjeev Katiyar · 2 months ago
Well, after destroying the distributor community, they come out with such horrible statements. They can't provide a living to well trained existing intermediaries,but they want to waste the time of the poor post office employees or other such ignorant people in semi urban areas and engage them in what ? Where almost no income for initial years..
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