SEBI Chairman U K Sinha has reportedly said that online distribution platforms would boost sales of direct plans. He was addressing fund officials at the AMFI AGM held recently in Mumbai, said three CEOs who attended this meeting.
Sinha reportedly said that nothing will stop the tech savvy to do their own research and buy mutual funds on their own. He expects many of these investors would be the first time MF investors. He is said to have told fund officials that it will not affect traditional distributors as online buyers are a different set of investors.
Also, Sinha has reportedly asked fund houses to promote direct plans. He had reportedly asked fund houses on what prevented them from promoting direct plans. He asked fund officials to disclose NAVs of direct plans in all their communications with investors.
One of the CEOs quoted above is of the view that e-commerce distribution will not be a threat for the brick and mortar distributors. “I see e-commerce distribution space as a completely new vertical which will cater to a new set of investors. Currently, a majority of young customers prefer e-commerce websites to buy products and they are yet to invest in mutual funds.”