Declining interest in MF distribution: Only 6,431 new IFAs enter this year vs 14,311 last year

Of course. Do we not have to run our livelihood? You have only mentioned new registrations and what about the existing IFAs data? How many are active and why others are inactive? Also when you say that "Moreover, the recent regulatory changes in TER structure may have had further impact on the industry’s attractiveness for new distributors", it is not at all because of reduction in TER but it is solely because AMCs greed of keeping their margin and passing on the entire reduction on to the distributors. Even when upfront of 2% was removed we kept on working without any complaints. We kept working when all trail was introduced. We can't keep working if you go on reducing our hard earned income. Also to fulfill the corporate's greed if you go on taking money from individuals and give it to corporates is never going to help. Why should the corporates enjoy unlimited margins and even enjoy lowest taxes? It is bound to happen when you go on reducing income of our fraternity (IFAs) and at the same time collect GST which we don't have any concern with because we are neither manufacturers or consumers and we don't buy and sell anything. Also direct plans has to stop because it invades our right to distribute and marketing and promoting of direct plans hurts our dignity. If these things are taken care than again we will see the distributors coming back to distribute mutual funds and new ones joining too.

Very difficult with present referral fee & without up front .first ban on sale as direct in equity mutual funds.

Most of the new comer may have been portrait as big opportunities but I am sure 80% must be in feeling as wrong choice after receiving the remunerations against their business & may be or already left this....!

Kindly correct your table new IFA introduce as it contradict statement. Table showing increased number of IFA 2018 v/s 2019. Check it and rectify

Agreed, I totally believe that DIRECT plans should be closed first . And, all investing in Direct plans should be asked to move in regular funds or through distributors.
Second, Banks today are the biggest point of mis-selling. Second, major selling person from banks just sell b'se they have huge target from banks and not as part of client requirement. So , it should be stopped on immediate basis.
Third , its time that Trail income atleast should go UP as if this continues, MF industry will not stand in front of ULIP's or life. B'se they will not have any distributors who can reach out to masses.

What do others have to say on this ?? Let's put our voice firm and unite together.

Its dying industry.
For AMC long term = more than 10 yrs
For investor long term = 5 to 7 yrs
How IFA can play his role.
Even sandwich wala is earnings more by selling 1 sandwich when IFA earns less than it by selling 1 sip.
It's strange but true.
Digpal shah
Ahmedabad

With every passing year norms of MF distribution industry is made more stringent as if this is the only area where regulators need to be vigilant. This is not pro investor it's anti distributors. India can become a 5 trillion GDP only by squeezing MF Distributors. Removing entry load, introducing Direct plan, abolishing upfront commission, reducing TER list is non ending. As if Mutual distribution is an illegal business.

Wo bhi prudent and nj india

Abhi aur down hoga

Write to Finance Minister and Prime Minister as the Regulators and AMC's won't listen the pain of distributors

Reinstate upfront commission, direct plan should be banned, otherwise new IFAs cannot survive in future

You are absolutely right Prashant. The AMCs are solely responsible for the decline. They have cut down trail to 0.02 to 0.00% in equity investments in the name of TER. Most affected are the older investments where the volume is more than the newer ones.

My question is when TER is reduced, brokerages are mercilessly curbed, why exit loads are charged at the older rate of a whopping 2-4%? Why SEBI has closed it's eyes about it? Are all regulations only for the Distributors?Once their business is affected, they are awake from their hibernation about the declining number of new entrants.