MF industry adds over 4500 new individuals MFDs in April-June 2024

No Future For MFD With This Brokerage Structures.👎🏻

Please do not take this as a complaint but serious feedback for AMFI and AMCs - If you want to enrol more MFDs, make the existing ones feel more valued as they will do the marketing work on your behalf which will be 10X more effective. Some of the ways you can do that (Take the suggestions seriously as we are in business for 10 years, in active mode for last 7 years and have grown our assets at an annualized rate of 250%, and retention rate > 98% over that period so, basically have seen all the challenges the industry has thrown at us and yet got the job done)

1. Give them recognition on a big platform, not when they cross 100 Cr AUM but when they need it that is when they are small but growing at a rapid clip- AMFI and AMCs can organize this.

2. Give them the respect - we are doctors not agents (though that’s what the customers think of most of us) - AMFI campaign run karo - “Mutual fund Sahi hai par MFD Zaroori hai”

3. Incentivize them through fair brokerage structures - Note, I did not say increase their brokerage but the key metrics must be well defined by the AMCs e.g. Asset retention is also equally important if not more than asset acquisition.

4. Do not burden MFDs with KYC work based on changing regulations and hold them hostage by putting brokerage on hold for on-hold clients (recently done) - This is SEBI and KRA's job. However, if you want to get the job done effectively, give them an incentive i.e. give carrot vs a stick, the latter seems to be the norm in the industry.

5. Also, the communication has to improve - AMFI should hire a communication expert for the KRAs and themselves as in my humble opinion they really need it.

Last but not the least- Actions speak louder than words so all the respected veterans from the AMC fraternity, my humble request start acting vs talking if you want to see this Industry grow beyond your wildest dreams, the foundation has been laid.
Arjun, you’ve eloquently captured the sentiments of every Mutual Fund Distributor (MFD) who has dedicated over five years to this industry with a serious commitment to their business.

The Securities and Exchange Board of India (SEBI), the Association of Mutual Funds in India (AMFI), and the Asset Management Company (AMC) fraternity must prioritize the upliftment of the MFD community, considering not just remuneration but various other aspects. Simply labeling us as agents is outdated. The times have changed, and so have the expectations of clients from their MFDs or advisors.