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The number of investors and AUM of the National Pension Plan (NPS) have both been growing rapidly.
To understand the growth and opportunities present in NPS for MFDs, we spoke to a few experts in the NPS industry.
Akshay Chaskar, Vice President and National Head – Agency, ICICI Prudential Pension Funds feels that MFDs have knowledge and skills to understand clients’ needs and inclusion of NPS will complement their existing practice. In terms of income, MFDs can get a flat fee on onboarding new clients and regular income on subsequent subscription.
Chaskar also believes that the recent launch of the Association of NPS Intermediaries (ANI) will create awareness and demand for NPS, which will help MFDs offering NPS.
Mumbai Retirement Advisor Vasant Prabhu, Director & CEO, Wings for Futura feels that while the current incentive structure for NPS distributors is not so competitive, there is plenty of room for growth. He feels that NPS will grow like mutual funds as investors are becoming more knowledgeable.
Quick summary
· NPS can complement mutual fund distribution business
· MFDs can earn fees through onboarding and subsequent contribution
· The Association of NPS Intermediaries (NPS) will create demand for NPS