‘Apprentice MFD concept will hurt our reputation,’ say a majority of MFDs

Yes, of course. There are MFDs who are working from so many years and still not able to manage 25000 per month earning but new person will start from Rs 15000/- per month.
Secondly, if the apprentice person leave the field after one years, who will provide service to his customers.
Last, as he/she doesn't have any knowledge thus he/ she will be under pressure from AMC and bound to sell in wrong way to keep boss happy. which in turn will turn a person who is in this field from many years.

it's looks good move for investors, but if we study in real term , we( MFD) committed & responsibility for customer long term benefits, how a new person will help them to achieved their financial goal, most of bank miss selling high commission products , A trainee person even don't know ABCD of investment , he will be directly force by his unit manager to fulfill his salary by selling high commission products & this miss selling hurt MFD reputation who are working professionally.

Even this days many when we discussed with customer/friends , some of bank employee instead of mutual fund , they mislead customer to sell high commission like endowment product to earn 40-50% commission, they have no intention of customer benefits only earn high commission, now customer " Dudh ka jala chach bhi fuk fuk ker pita hai fir" we know personally of many victim investors friends.

The concept of stipend has many flaws and the biggest one is they will become the 'agents' of one AMC and will start misseling like Insurance agents which tries to benefit by selling the product. This approach will negatively impact the image of MFDs which tries to benefit from the clients benefit.

I suggest some better alternatives to this concept learning from the problems I faced during my initial years:

1. AMCs commission is presently biased towards National Distributors and Intituational Distributors like SBI. The percentage of commission offered by AMCs is more for bigger distributors and individual distributors get minuscule share. AMFI should make it a game of fair play.

2. Banks should be barred from selling Mutual Funds because they get unfair advantage of their bank customers data and biggest misselling happens in banks. The new entrant faces the biggest challenge from these lazy mammoths.

3. AMFI in association with RTAs should come up with at least basic free portfolio management software and app which is suitable for new MFDs with less than 50 clients or up to 5 crore AUM. Presently MFU Box is too expensive for new MFDs. CAMS' EDGE360 or KFinTech's DIT websites/apps service only their own serviced mutual funds.

4.. HDFC AMC's connect app has done something special which is good for new MFDs. It has helped MFDs to advertise them in social media with readymade images and a niche website like customisable page of the MFDs. Their team also helps them to create a facebook page and automatically posts without the intervention of MFDs. AMFI should come forward with such initiatives which works for the whole industry and not just for one AMC.

5. It should lower the fee for NISM exam and ARN. It has halved the fee recently for registration of ARN which is welcomed, but should reduce renewal fee further by going digital.