When and why was the group formed?
For decades, IFAs in small towns and cities have been overlooked by the regulator and AMCs. Investors of small cities and rural areas are very different from that of urban areas. Here, equity oriented products are considered very risky and people prefer traditional products like post offices and bank FDs over mutual funds. Also, many IFAs face problem of servicing their clients since only a handful of AMCs offers their services in these areas.
Hence, with a view to act as a collective voice of such distributors before regulator and AMCs, we have started Western Maharashtra Rural IFA Association (WMRIA) ten months back. We are in the process of registering our association.
What is the objective of your group?
Apart from acting as a collective voice of IFAs, we have two key objectives. First is to create awareness about mutual funds in small cities and rural areas with the help of AMCs. Second is to help other distributors by upgrading their knowledge through training and practical sessions.
How many members do you have?
We have 25 members, mostly from two districts - Sangli and Ichalkarangi. We expect to add some IFAs from Kolhapur district soon
How do you reach out to fellow IFAs?
The association holds a monthly meeting to discuss the issues related to customer service, practice and client management. We are in regular tuoch with each other through conference call and internet.
Is there any membership fee to join your group?
The WMRIA charges a one-time joining fee of Rs. 1000. The association will also charge Rs. 200 every year for renewal of membership.
What activities does your group undertake? How often?
The association organizes investor awareness programs every month. We organize such events on our own and sometimes with the help of AMCs.
How often do you interact with AMFI/SEBI regarding the issues related to mutual fund industry?
No, we have not approached AMFI and SEBI on the mutual fund industry issues. However, we are planning to meet SEBI on various issues related to mutual fund industry in small cities and towns.
Any major achievement you would like to share with us?
We have adopted a different strategy to educate people about mutual funds. Since many investors in Sangli and Ichalkarangi districts are engaged in sugarcane farming and its business, we have made a farmer-oriented presentation with examples of sugarcane business to explain to them about the importance of mutual funds in a simple way.
What kind of support do you get from fund houses?
We get sponsorships from some AMCs for our investor awareness programs.
Can you share with us the vision for the group?
The association aims to resolve all issues of IFAs related to practice in small cities and town. Also, our motive is to shift practice model of IFAs from product selling to goal based financial advisory so as to benefit investors and secure their financial future.
