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MF News TER rationalization is a big negative for MF industry: Distributors

TER rationalization is a big negative for MF industry: Distributors

In an opinion poll run by Cafemutual, over 66% IFAs agreed that rationalization in TER may hinder the growth of mutual fund business.
Team Cafemutual Feb 19, 2019

Most financial advisors believe that rationalization of TER would affect the growth of the mutual fund industry.

‘What will be the impact of TER rationalisation on the mutual fund industry?’ asked a poll run on Cafemutual.com.

Close to 4900 IFAs participated in the opinion poll featuring on our website. Of these IFAs, 66% or 3216 IFAs feel that rationalization in TER is a big negative for the growth of mutual funds industry.

However, 1120 IFAs or 23% of the total respondents believe that it will lead to a faster growth of the industry AUM.

Just 558 or 11% distributors feel that this would have no impact on the industry.

Here is the snapshot of the opinion poll result.

What will be the impact of TER rationalisation on the mutual fund industry?

It will lead to faster growth in industry AUM : 1120 votes, 23%

It will negatively affect the industry’s growth: 3216 votes, 66%

No impact: 558 votes, 11%

 

 

 

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12 Comments
O p jaiswal · 1 month ago
It's very harmful for distributer personally feel myself when I am getting only 25bps trail on my 2-3 year old aum now and after March it will be more down because next ter proposed after March.
Sachin · 1 month ago
https://www.surveymonkey.com/r/camscsat1

Please participate in CAMS survey.
Prashant · 1 month ago
How authentic this survey is because a huge no of IFAs are saying that this will improve growth of industry is an absolute nonsense.
Bhavesh · 1 month ago
Can some one please brief that how it is harmful for Mutual Fund Industry?
Nikhil Chitalia · 1 month ago
The Big Fish in the Distrubution business are only going to grow while 66% of the distributors feel that this is a BIG NEGATIVE. I look at it positively, with the gap between Direct and Regular Plans narrowing down, investors will want to switch back to Regular Plans. The Volumes are going up in MFs every year. We should focus on procuring Volumes and the ease at which one can procure business than the brokerage rate.
praveen · 1 month ago
People are more wise investing through distributors learning every ting den simply switching direct ...IFA situation really tuff ....time waste,energy,resource...everthing smash... Fee model is not work out in 2nlevel cities n towns ...ppl are crying to give atleast photocopy(Xreox) money...If any one encourage you to fee model with example showing (Doctors fee based business model) dats really shit...it does not work in dis society...
Vishal Vashisht · 1 month ago
This is good for investors.If Investors will earn more then definitely distributors are going to get more business. Win win situation.
Anil · 1 month ago
Dear Mr Vishal
I totally agree with u but tell me Mr Vishal that if i earn 300 against a 5000/- SIP in a year what shall I think about investor or my Family survival
Reply
PINAKI R KUNDU · 1 month ago
Can any body help me by telling that will TER be reduced on existing business? or it will be on fresh business from 1st April 19...
Nitin Singhal · 1 month ago
Boost is required to grow the business, TER structure should be reconsidered
Binoy Paul · 1 month ago
Attention Finance Ministry, Better you stop the TER revision of SEBI, after March, or face, the Crash of Mutual Fund Sales.
Murari · 1 month ago
Let April month come and then see if TER is good or bad. The whole American economy is based on incentivisation and competitition. But in India ? It is beaurocrats all the way. 1/3rd IFAs have already diversified to various business verticals . They have given up. Some of the national distributors are literally struggling to pay the headcount. If they have to share the meager brokerage with their empaneled distributors , you can imagine how much the distributors would get finally in their hands. But then in the seminars you will find people praising the regulator's move . This is called Stockholm Syndrome. I request all the IFAs to google it up and see the meaning of it. It exactly fits . Let these seminar guys keep on fooling all the people all the time. Even Arnab Goswami can't tackle these people. Now, do the AMCs have the capacity to service the clients directly if IFAs move out ? After all this is what the AMCs and Regulators want. Why AMCs are keeping quite on this service issue.Is it not affecting investor interest.
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