Top AMCs have already modified their commission structure for distributors to increase their presence in locations beyond top 15 cities. The AMCs have reportedly increased the commissions for IFAs beyond top 15 cities by 25 bps- 50 bps. Other top fund houses are also in process of increasing the commission.
AMCs are now aggressively looking at different initiatives to draw more investors beyond top 15 cities to the mutual fund industry. This move comes by fund houses after SEBI stressed on the need to create presence beyond the top 15 cities.
“This is a good move which will encourage us to bring more investors to the industry,” said Pradip Agarwal, IFA from Guwahati.
“This is a step in the right direction. Now after the new announcement we are at least motivated to work more diligently,” said an IFA from UP.
