MFDs have urged fund houses to consider opening their branch offices with minimal staff to offer transaction support to MFDs and investors.
This has come after MFDs say that they have been facing difficulty due to heavy rush at point of sale centres of RTAs - CAMS and KFintech especially during the cut off time.
Delhi MFD Sanjay Bhan, President, All Mutual Fund Distributors Welfare Association (AMDwA) said, “We would like to highlight an issue which investors and distributors are facing in bigger cities. As most fund houses have closed their offices due to the pandemic, there is lot of rush at CAMS and KFintech. Hence, we would like to request AMCs to consider opening of their offices with minimal staff during transactional hours to reduce the crowding issue at RTAs. This will be safer for MFDs and investors as they can avoid the spread of the virus.”
Rajkot MFD Chetan Nandani of Saurashtra Kutch Independent Financial Advisors Association (SKIFFA) points out that crowding at RTAs is largely due to other products and services offered by RTAs. “RTAs have been offering loan products, which is causing rush in their offices. Even if you reach at 2 pm, it is not necessary that you will get same day’s NAV due to heavy rush. Opening of offices will ensure MFDs and investors avail same day’s NAV and get undivided attention.”
Chetan further said that while many MFDs have shifted to online working style, a few clients insist on facilitating physical transactions, which MFDs have to honour.
Mumbai MFD Sadashiv Phene feels that RTAs should increase their point of sales offices in large cities and number of staff servicing MFDs/investors to deal with heavy rush during cut off timing.
