Most financial advisors believe that reduction in trail commission due to TER cut would shift the focus of distributors to other financial products such as corporate FDs, insurance, AIFs and PMS.
‘With decrease in trail and no upfront commission, how do you plan to grow your business?’ asked a poll run on Cafemutual.com.
Close to 6100 IFAs participated in the opinion poll featuring on our website. Of these IFAs, 45% or 2742 IFAs feel that they would start looking at other financial products to cushion the impact of reduction in trail commission and no upfront income.
However, 2106 IFAs or 35% of the total respondents said that they would quit the mutual fund distribution and explore other business opportunities.
Just 130 or 20% distributors feel that this would have no impact on their business and they will continue to focus on mutual fund distribution.
Here is the snapshot of the opinion poll result.
With decrease in trail and no upfront commission, how do you plan to grow your business?
Start looking at other financial products such as corporate FDs, loans, insurance, AIFs, PMS and REITs: 2742 votes, 45%
Continue to focus on mutual funds: 1230 votes, 20%
Explore other business opportunities: 2106 votes, 35%
