SEBI to introduce new incentive structure for bringing in new retail investors

A very good move indeed. The pain an MFD takes in onboarding a retail client for the first time in Mutual Fund is not unknown to the regulator. Most of these investors are accustomed to linear return and consider those instruments with GOI tag is the only options for Wealth creation. Rewarding such tedious job of hand holding such clients is a way of showing gratitude to the MFD fraternity.

Which would be Rs.100/- per investor I am sure. In fact all the beaurocrats in SEBI should take Rs.100/- salary and show us all on how can one survive in this salary. In fact they sit in A/C cabins and don't go out to meet investors they should be paid even lesser than that. Corporate greed is killing the distributor livelihoods and the economic fabric of oir country. This is so dangerous that few companies are benefitted by maximizing their profits at the cost of crores of investors and lakhs of distributors.

Shame on the regulator and the government for doing this.

Which would be Rs.100/- per investor I am sure. In fact all the beaurocrats in SEBI should take Rs.100/- salary and show us all on how can one survive in this salary. In fact they sit in A/C cabins and don't go out to meet investors they should be paid even lesser than that. Corporate greed is killing the distributor livelihoods and the economic fabric of oir country. This is so dangerous that few companies are benefitted by maximizing their profits at the cost of crores of investors and lakhs of distributors.

Shame on the regulator and the government for doing this.

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Advantages:

The new incentive structure may encourage more retail investors to enter the market, which can lead to increased participation and liquidity in the market.

Focusing on first-time investors can help promote financial inclusion and encourage people who have not previously invested to start investing.

Incentivizing distributors for bringing in retail investors regardless of their geographical location can help promote investment in underserved areas.

Disadvantages:

The new incentive structure may increase the cost for distributors, which may ultimately be passed on to the investors.

Focusing only on first-time investors may not incentivize distributors to retain existing investors, which can lead to a higher churn rate in the market.

There is a risk of incentivizing distributors to bring in low-quality investors who may not have a genuine interest in investing but are doing so solely for the incentive.

The bigger question is how much time the regulator will take to bring in this new incentive.
Existing incentives are removed abruptly but new incentives take a lot of time to come.
Whether it will be anything meaningful to incentivise MFDs like erstwhile B 30 incentives needs to be seen but i have my doubts.

Though I am based in very small tier 3 city with an office with zero walk ins from a year, most of my AUM is from metros thankfully due to my past corporate job.
People in tier 3 cities/ small towns still believe & give money to so called professionals doing magical trading, investing & backed by local bigwigs guaranteeing 2%-10% per month flouting all norms & not caught by EOW,SEBI,police etc till it is too late & even if caught, hardly anything is done to these criminals
Ex : Solapur Barshi scam & many more.
So, a distributor definitely has to work more to get even a smaller AUM from one client & that too with lesser conversion / hit ratios.
Instead of outright ban on B 30,what the regulator could have done is to make it difficult to misuse B30 incentives & brought in new incentive for MFDs to bring in new investor irrespective of their location.

With the phase out of B 30, atleast my focus will be more on bigger city clients with bigger AUMs only unless the regulator does something to mess even that forcing us back into our regular corporate job instead of us following our passion.

Why on bringing new customer only, why not for those who preach their investor to be long Term & maintain the wealth & holdings for longer periods (in fact they go more hardship) plus plz. be little wise with MFD's & do not cut their income as n fro ......

Retail Inverstors from B30 have started making money . MFD has made this possible.
Now they must be punished/discouraged to sell to poor population ... THIS POOR POPULATION IS TO BE LITERATED ONLY & TRAPED IN 5 STAR RATED HIGHLY PROMOTED SCHEMES ONLY VIA DIRECT CHANNEL... GANDA HAI PAR DHANDA HAI. bechera chota MFD kaar he kya sakta hai except being expolited

only MFD are there who think about client wealth creation. Guide people in panic situation. still they are always panished because of few people mistakes.

Rule should be one for everyone. Kindly make rules for SEBI officials to justify their salary & stop the all other incentives. Post office should be comes under SEBI. All govt officials should have to clear the exams run be NISM or SEBI & it should be on their own money & the validity of the exam should be 3 year.

Cafemutual welcome your views any disagreements or criticisms must be expressed in a dignified manner.All fields are required. Thanks you

These officials don’t think have any work, in last 5 years they have decreased commission income of MFD but I’m sure their income would have gone up by multifolds I think they should also think on reducing their salary by 30% then they will realise the same.

If convincing client is so easy then SEBI should go on behalf of MFD and bring out business.

I would again reiterate move to incentivize MFDs on long term holding & assets which will stop mis selling & churning.

Is Mutual Fund about selling or creating wealth ? Then why is everybody always talking of payouts & incentives and bringing in new clients and giving petty Rs 100 - 150 etc. Kya humari aukat ye 100-150 rupay ki hi rah gayi hai...!!!!??

Do you know average SIP age is less than 3 years.

Problem is not bringing in new client, problem is holding existing clients & creating their wealth. For the past 3 decades my investors have really created fortune from this industry.

Not even a single Advtsmnt is floated featuring how investors are thankful to the MFDs for creating wealth in the past 3 decades.

Also if there is question of mis selling & churning then cancel the licenses of AMCs, banks & other intermediaries involved in this wrong practice. Ek bhi license cancel ho gaya to sab theek ho jayenge.

Rather than bragging or posting on cafe mutual, you all should write or post directly to sebi office about this and give your feedback and suggestions OR express your views and aggression. SEBI cafe mutual pe aake nahi padhega. This is waste of time.

ALL THE RULES AND REGILATION MADE FOR MFD NOT FOR ADANI, MALYA ,CHOUKSI.MFD IS BALI KA BAKRA.