SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • Success Stories Regulatory changes did not deter these IFAs to quit well-paid jobs to turn advisors

    Regulatory changes did not deter these IFAs to quit well-paid jobs to turn advisors

    They hope to cash in on their experience in the financial sector to overcome the challenges.
    Sridhar Kumar Sahu May 31, 2019

    Mutual fund distributors have been facing challenging times of late due to regulatory changes such as upfront commission ban and reduction in TER.                                   

    While some experts believe that the recent regulatory changes may discourage new entrants to the industry, a few professionals have quit well paying jobs to become a financial advisor.

    These advisors remain confident of the opportunity in the MF space despite recent challenges.

    Cafemutual talked to some of these IFAs to know their motivation for joining the industry.

    Vishal Mahajan and Vikrant Katoch – Founders of RupeeXpress

    Vishal and Vikrant started their journey in August 2018. Prior to this, they had worked for around 15 years in the BFSI sector. Vishal’s last stint was with SBI MF while Vikrant had worked for UTI MF.

    Vishal and Vikrant started their advisory firm RupeeXpress after sensing a huge opportunity in the advisory business in their home state, Himachal Pradesh.

    Both of them believe that they can overcome the regulatory challenges by increasing their volume. The duo has already acquired many clients through IAPs. They leverage their connections at various private and government bodies to conduct these investor awareness programmes. This strategy has helped them reach a large group of retail customers. Vishal and Vikrant have also acquired some corporates as clients – these are people who have known them when they used to work at SBI MF and UTI MF.

    Anant Ramola, co-founder of Arthaprise Financial

    Anant Ramola, Dhananjay Kumar and Kunal Khatri started their advisory journey by floating Arthaprise Finanicial in November 2018. An IIM Calcutta alumnus, Anant has 16 years of experience in wealth management business as he had worked with Kotak Bank and Almondz Global.

    Over the years, Anant realised that there is a huge demand for professional financial advice among investors. Also, the desire to become an entrepreneur was among the major factors that pushed Anant to become an IFA.

    Anant is confident that he will grow his business despite recent regulations, which reduced profitability. Already, in this short span of time, Anant has acquired many HNI clients and has been managing their investment portfolios.

    Bhupender Singh – Founder, Investment Planet

    Before starting his career as an IFA in September 2017, Bhupender Singh had around 25 years of experience in handling sales at UTI MF and ING MF. 

    He believes that establishing strong relationship with clients help advisors grow business. “Despite regulatory headwinds, I am confident that I will grow my business. I believe advisors can grow business by creating personal connect with clients. I can say that I am not just an advisor to my clients, instead, I am advisor to his entire family,” he says.

    Another approach to grow business is focussing on goal based financial plan. Singh encourages his clients to invest in mutual funds through SIPs for their retirement, children’s education, and so on.

    Mohammad Iltaf Husain

    Iltaf Husain started his advisory journey in early 2017. Prior to this, he has worked with wealth management firms for 13 years. 

    The Delhi IFA managed many HNI clients in reputed organisations such as Barclays and shared a good rapport with many of them. At least 40 HNIs came with him when he set out on his own.

    The recent regulatory changes do not worry Husain as he deals with other financial products such as PMS and AIFs. He believes that advisors should look beyond mutual funds to grow business.

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    17 Comments
    Tanmay Bhavsar · 5 years ago `
    Gr8 too see these stories.. I started my journey around the same time in Aug 2018.. Post 14 yrs of corporate experience..
    Thanks for sharing this and adding to my confidence.
    Capt R P Samson · 5 years ago `
    The said professionals Quit their high profile jobs well before the TER cuts came in.

    The said news is surely a paid one by AMCs to coax the existing distributors to rethink and do business for them.
    PANKAJ MISHRA · 5 years ago `
    We as a Ex Banker and having experience of more than 16 Years, we left the job last year July and created a wealth management company. But seems that challenges are more due to regulatory change and reduction in TER, some time we feel that we are doing a charity business for AMC's. We have diversified our business more on other revenue generation product viz LAS, CC & Drop line OD , corporate FD's, PMS product etc.
    Narayanan N · 5 years ago
    Extremely well said I have stopped sweating it out may years ago. Self and Mutiples direct indirectRegulatory bodies have strangulated MF advisors.
    Reply
    RAJESH KUMAR · 5 years ago `
    Very Smart essay, but for?


    These all professionals are from corporate and working as with corporate not Individual, Focus is indeed this time in indian economy on Individual Employment.
    Due to corporate Interference, all works of government are going down by many decades.
    No such government think where is the need of Corporate and how much and which way..

    Write good Essays on problems facing by Individual IFAs old and New...
    All Individual IFA needs just a surety of their future in this field.

    Hope so You Listen Dear Writer
    Jaideep · 5 years ago `
    Comparing people who leave jobs after cultivating many clients (retail or HNI) and then using their examples to talk to IFAs who have started their business without these factors, is like comparing apples and oranges. A new IFA or an IFA who starts his business from scratch neither has the financial strength to fall back on (after upfront fees were removed) nor the client base from day one that these persons did. It is not surprising that these guys have HNI clients and therefore have many other investment avenues for their clients, which the retail IFA and his clients just cannot access. The changes in the legal environment will not hit them at all, because of all these reasons.
    M Rajeshwar · 5 years ago
    You are right.
    Reply
    HARISH CHANDRA SEMWAL · 5 years ago `
    I FULLY AGREE BUT THESE ALL PEOPLE HAS ALREADY CONNECTED WITH HNI CLIENT BECAUSE OF HIS PREVIOUS ORGANISATION. I AM WORKING IN HILL AREA OF UTTARAKHAND AND THERE IS ALMOST 99 PERCENT RETAIL INVESTOR. TELL ME HOW TO SURVIVE WITH ONLY SIP'S.
    Akhil Mahajan · 5 years ago
    In my opinion, keep work of SIP collection and create a good SIP book. If u create a sip book of 30 lakh, it will give u good monthly income
    Reply
    Sasikumar · 5 years ago `
    I am a new entry to mutual funds advisor group. Having 25 years of experience in finance department of various companies in india and abroad, anticipate a bright future here...my confidence is my own investment in mutual funds as sip... Hence I can boost confidence in my investors too... Regards
    rakesh Chaturvedi · 5 years ago `
    THE NEW GOVT IS FACING THE UNEMPLOYMENT IN COUNTRY & SEBI IS ALSO INDIRECTLY HELPING TO MAKE EMPLOYED IFA INTO UNEMPLOYED.
    Prashant · 5 years ago `
    AMCs made a fool of these people and you are writing an article on them?

    Shame shame shame
    Himanshu goel · 5 years ago `
    Why it took them (so called Now turned entrepreneurs )so long to quit jobs and realise that this is what they really wanted to do for years ?
    I know for fact that most of the ex AMC employees / Bankers ONLY poach on the database and contacts they have made during all these years.Most of them would only Switch or make Broker Code changes to boast about big AUMs they are building.They are just oppurtunist having moved in to new roles by looking at the greener grass on the other side while they were employees.Now when they have quit , even if the regulatory changes are happening they hardly have any choice.
    Ask them how many new folios/ clients they have added to industry? The answer would surely be Zero.
    Deepak Tiwari · 5 years ago `
    Database le kar aye hai yeh log maidaan main.Are naya kaam kar ke dikhao tab manege.Bada asaan hai switch karna humari tarah client pe kaam kar ke dikhao tab pata chalega asliyaat ka.
    Jise dekh kar distributor bane thee wo sab no chala gaya, ab thode din main phir kuch aur kaam doondna padega kyunki paki pakaye kheer kitne din khaooge.
    Shiven Gupta · 2 years ago
    dont involve RM in your sales pitch...IT IS ONLY SOLUTION OF YOUR QUERY
    Reply
    Rahul · 5 years ago `
    Agree with Mr. Goel, ex employee of wealth management co., AMC and Banks, generally found it easy since they steal data from their ex organisation n while working they establish relationship with investors. Problem is with the IFAs managing less AUM. One more thing laws being apply in retrospect way is only possible by Sebi.
    Praduman kumar jain · 5 years ago `
    I m working for mf entirely since 2001. But currently AMC imposing various regulation day by day today in such a, minutely as difference between krishan and krishna in middle name and blocking brokerage.
    So at this stage we are feeling now very harassing whereas brokerage has already down trodden today in comparison to past.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.