Kudos to DFDA for their reading of the situation. You have analysed it very well. May your tribe grow & prosper!. I think you will get a lot of Ideas on this from KAMFA, Karnataka. Do get in touch & lets come together to put in place a National level association to fight for our rights. Sooner the better.

THIS IS REALLY VERY DIFFICULT FOR AN IFA TO SATISFY THERE CLIENT FOR AN HIGHER NAV.AS THIS MATTER MANLY EFFECT THE IFA'S OF SMALL CITIES I REQUEST TO THE DFDA TEAM KINDLY ADD FEW IFA'S FROM SMALL CITIES FOR BETTER REPRENTATION

SINCE 1971(UTI),WE THE IFAs PEOPLE HAS CREATED THE MUTUAL FUNF INVESTORS WITH OUR HARD WORKS.SO SEBI SHOULD NOT FORGET THE EFFORT OF OUR CONTRIBUTION TOWARD M.F. IND.

There is a simple rule - maximise profits and minimise losses. SEBI, which came into existence for the protection of Investors frauds and malpractices is doing exactly the same for investors. SEBI knows that in absence of any bullrun, investors can't maximise their profits, so why not to minimise their losses by reducing the cost of investing. Way to go SEBI. Istead of focusing on quality control, focus has shifted to cost control without giving much thought to the consequences on the industry as a whole. It takes a lot to build something but very little to destroy the same. One can only quote - ACT IN HASTE AND REPENT AT LEISURE. May good sense prevail. Thanks to DFDA CORE TEAM for raising the issue and mobilising opinion. But surprisingly non of the AMC has voiced it's opinion on the issue - Large or Small. Seems they don't have a opinion on the issue - either for or against or is it silence is acceptance of the idea. Only time will tell.

i think sebi are doing all the unnecessary things without understanding the ground level problem . now sebi are trying to introducing direct investment and deul type nav concept.this is not a good time and themes. pl... u see ground level problem and help us. other wise mf ind. is face very big problem,

I think across Finance Industry getting trouble of regulatry guidlines,but india is not devloped country its a only phase of devloping nobady have financial konowdge eigher devloped contries also working with advisor and disrubuters as finacial doctor. I advised to SYSTEM they shold closed all hospital and open only chemist shop. I hope they will not do as same they should not take this type of actions.

GOVT & SEBI ARE WORKING AGAINST RETAIL INVESTORS.BANNING OF ENTRY LOAD HAS VERY ADVERSILY AFFECTED SERVICE. THIS IS NOTHING BUT BEHAVIVG LIKE FAMOUS KING TUGLAK WHO TOOK DECSIONS IN HASTE ONLY TO REVERSE IMMEDIATELY.

Well wriiten and analyzed -- but sad that Regulators like SEBI are killing the industy -- At time one feels they themselves are quite clueless on what in earth is going on!!

The Prime Minister, Finance Minster, SEBI everyone had said that they have recognized that the mutual fund industry has been facing problems and has to be given a booster dose. But instead of coming out with ways and means to increase the penetration, the regulators chalk out plans which will destablise the entire apple cart. The AMC's/AMFI for their part are only mute spectators and do not have the guts to stay together and say that they will first see to that mutual fund becomes the favorite investment vehicle before even considering further reforms that may hit the industry. I think we do not have right people at the right place let it be Fin Min/SEBI/Amfi/AMC's.

The is no reason to be anxious. Now, the MF industry needs IFAs more than the other way round, the direct investment option will work only on excel spreadsheets, PPTs & in boardrooms where such decisions are taken . Anyone who can implement this 'direct' model should be given the 'Bharat-ratna' for Financial Inclusion. The same holds good for developing alternate channels of bank employees and Postal agents. These retirees would prefer to sell Life Insurance & FDs for the higher commissions, rather than deal in MFs & suffer for rest of their retired life. Looking at the way MF distributors have been treated in the past 5 yrs, am sure not many people will be keen to become a MF agent in India. AMCs may have to pay a heavy price for being just silent spectators & for not having opposed these counter productive measures.

My dear IFA friends, this direct investment method will not work. PMO will again interfere and put pressure on SEBI to review MF industry. As Lord Keynes said "Men will do the rational thing, but only after exploring all other alternatives"

The calm from fund houses is really surprising and disturbing. They don't seem to bother about the issue much as Mr.K.Parameswaran,ARN-2540, points out. In fact, I couldn't resist my feeling that some vested interests and a few fund houses are instrumental in bringing in the direct share class keeping their own business strategies in mind, side stepping the greater good of the industry. I may be wrong, but it feels like there is a systematic cleansing of IFA community right from the entry load ban to direct share class and it seems like some vested interests are trying to clear the decks for corporates by cleansing out IFAs and in the process the regulator is being mis-guided. It is difficult to connect the dots. But with every decision, thousands of IFAs are being thrown out of the industry and so are lakhs of small investors who are dependent on these IFAs. Hope I am wrong in my thinking process, if I am right, God save the industry.

We as IFA are already struggling to keep afloat in this troublesome times & every other day, we have to do brain storming to counter new moves from the regulators. It affects our mental strength & the zeal to meet new poeple & helping them for a world of Financial freedom. Does this new move will help in any way or not,only time will tell but it will definately affect in bringing new investors into this industry as MF is still is a PULL industry. INDIANS still rank among the bottom of the table (23rd among 28 countries) in the survey done under the Financial literacy levels. So to expect that it will create new business is a myth, the new regulation will kill the existing business.

we should all surrender our arn to sebi.

SEBI has planted the extra 30 bps to garner the new potential into the market and after that the same investor ask for low ter group from distributors.this remind me one old song "bhara na kilaya phul ki lay gaya raj kamal"thanks and kudos to SEBI.

SEBI TO PROTECT INTEREST OF DISTRIBUTOR AS WELL AS INVESTORS INTEREST THIS IS UNFAIR PRACTICE

I do agree that there is a serious cause for concern amongst the IFAs as a reaction to SEBI's decision. First of all let us understand that SEBI is doing its job ;i.e. protecting investor interests - for which it was constitutionally created. The problem is that the AMCs, who are directly reporting to SEBI, have not put forward I(FAs' case properly or I would even say that they have been indifferent to the issue. The AMCs have adopted a policy of having the cake and eating it also. IFAs fight should therefore, be forussed towards AMCs and not SEBI. Take a decision to stop work with immediate effect and you will see the result.

Dear All, Let SEBI invite all the Top 10 AMC's(if possible all AMC's) view about this DIRECT business. If all AMC's unanimously agrees DIRECT business, we must BOYCOTT jointly the Mutual Fund Distribution business.The media is spreading the low TER on top of their voice. It is easy for them to do so. In reality, it is impossible for a distributor to run the business. If the TER is a concern to SEBI/AMFI/there is now no need for Mutual Fund. An investor can invest DIRECTLY in to NIFTY STOCKS, which is representing all sectors of the economy.

If SEBI WANTS DIRECT BUSINESS THAN SEBI IMMEDITELY TERMINATE ALL DISTRIBUTORS HOUES AND START DIRECT BUSINESS WHY SEBI WANTS WE BECOME INTRODUUCER OF CLIENTS AFTER THAT CLIENT GOES DIRECT AMC COMESOUT WITH CLEAR MODLE IF THEY WANTS DIRECT MODLE OR DISTRIBUTORS MODLE. IF ANY AMC WANTS DIRECT MODLE THEN THEY GOES DIRECT MODLE NOT THOUGH DISTRIBUTORS MODLE. IF ANY AMC WANTS DISTRIBUTORS MODLE THAN THEY GOES THOUGH DISTRIBUTORS NOT DIRECT MODLE

Contd I don’t think these all things are done to remove distributors. In small saving schemes also commissions are reduced. Because of all these things habit of savings is discouraged. If agents will leave this profession nobody will follow to get amount invested in this scenario of heavy inflation. More than 90% of our population consists of middle class & lower class. It is the agent or investment advisor who follows the client for the business & in this process habit of savings is automatically encouraged. If all participants are united nobody can dominate anything on us. I request our associations to take united stand. When we talk of getting united, we should not forget investor’s interest. If we all demand that expense ratio should not be increased, then there is no other reason left for diy. In trying to gain more,we are giving opportunity & reason for introduction of direct share class. We can demand to continue with the existing structure.

Contd Amcs will have to incur costs & prepare infrastructure for diy. If direct class is profitable for amcs, why have they not prepared infrastructure for it in last 56 months? Distributors may not find equal level, so that number of active distributors will further reduce. Any industry can not increase penetration, where 93% business stake holder class can not sustain. Will it increase Total aum of the industry? It will definitely encourage switches from regular plan to direct plan. At present distributor having aum of 2-3 crores, can not even meet their monthly expenses. Statistics show that majority of distributors are having aum of less than 4 crores. How will they sustain in presence of diy? If diy is dominated, retail clients coming to invest will come without any proper consultation with ARN holder. What will be the future of such investment? I can take medicine from medical store directly without consulting any doctor. But is it good for my health?

Direct module looks good option for those who invest directly(less than 7%). In order to encourage 7% direct class, can industry discourage distributors who have collected 93% amount? If this direct module is dominated, it will remove many distributors from industry, which has already lost a very huge number of distributors. It can also finish the trail income from existing aum, (due to switch to diy by investor) even if expense ratio is hiked. Due to that not only flow of new investment will slow down, but also flow of new distributors will almost stop. Industry should find a way which can protect interest of all concerned parties. All of us should forget entry load & hike in expense ratio. At present amcs are not making profit , New flow of money has slowed down, Market situation has also worsened the situation. We hear figures of closed folios, total aum is reducing & so many other problems. In this critical scenario if diy is dominated with a less expense ratio how will it help?

I am currently reading the book called "Excellent Investment Adviser". This book is a perfect source for people who want to be in the Industry and are passionate about creating wealth for themselves and for their clients. First thing is that we should stop using the differentiation terminology as "Load" and "No Load". And only term them as "Help" and "No Help" funds. When the customer hears this different terminology, load occurs to him as a burden but the world "Help" occurs to him as a requirement. Further, I believe if we can quantify the value of our services, these challenges will not be able to stop us.

Direct mfs should be different from the existing ones. AMCs should launch separate schemes, since these have separate charges. All expenses should be separated, i.e. different set of FMs, New ISCs, and expenses should be allocated to them separately. Why should our hardwork be used by AMCs to further their business. Separate schemes, separate team, separate ISCs, separate FMs everything should be separated from the existing business, they should market the same new schemes separately and not under the same scheme by just drawing another category in NAVs.

If SEBI wants to help MF industry,SEBI should take step back. If not it will become practice of IFA/DISTRIBUTORS to invest & redeem same amount of same investor 4 to 6 times in a year from one AMC to another and SEBI will be responsible for churning as no fresh inflow of funds will be there.So all AMCs "jaag jao & hamare saath jud jao".As all AMC cost & services will increase without getting DUDH,MALAI,KUKAD,SHUKAD.

It is unfair to bring any rules on retropective effect as the bussiness which we have generated may be amortised on future revenue model and hence on old distributor AUM there should not be option to opt for direct by investor ,of course it can be switched to any other Distributor as per present practise. Secondly since there is no fullproof method to ditinguish the advise given by IFAs is utilised by investor to go direct , hence there can not be two model exist simultaneously.So let there be totally new product for direct class . Again Ifas should be allowed to sell all products in all form irrespective of TER.Compelling AMCs to create a direct share class with a cap of TER too is unfair as serving direct investor within the cap may not be remunarative to AMCs and let the chioce given to them. SEBi should follow impact assesment test as prevailing in developed nation before bringing such structural issues.

Sir, I believe that the interests of our clients are to be our top priority. They expect the best sincere and true advice from us. So we should advise our clients to invest their money in the direct share class and change distributor code of all earlier investments to direct share class. As a result all sincere and true IFAs will be thrown out/ forced to leave the Mutual Fund industry. Mutual fund industry penetration will go further down. IS IT WHAT SEBI INTENDED? Or Wanted? Or do they force IFAs to give wrong advice to clients? And become insincere and untrue?

This ll is disasterfor the mf industry,because this is one side decision and other side IFA/distributorsare totally ignored so all friendsmust join together to end this menace.I Donot think that this DIRECT move will create any fresh business exceptthis would cut the business from the same pie friends we all have to opppose this move

I think SEBI should focus on the penetration rathar than making the things complicated for both the distributor and the investor. And this will not be possible without salesforce(IFA), making product cheaper is not the surity of getting more investors. MF products are already available very cheap than other financial product like Liquid fund is cheaper than saving A/c, FMPs & debt funds are cheaper than FDs but still there is huge difference in market size and not in reach of 99% of Indians, first SEBI should think about the maximum reach of MF products to the investors. "SAVE IFA - SAVE INDUSTRY".......

Dear All this is indeed an Emergency.All distributors must join together today to end this Menace otherwise say GoodBye to distribution of mutual Funds !!!

Dear Friends, A battle which is lost before it starts..... Now, next to impossible to run the mf business... Required mass group ( all cities...) of IFA's.... Hurry.........

I TOTALLY AGREE ABOVE POINT AND SUPPORT THIS TYPE ACTIVITY.

IFA plays a vital role while suggesting to invest in mutual fund.But when direct investment comes who will guide to investor and provide portfolio.What SEBI has make plan for them?

Regulators never indulge in dialogues they give judgements i suspect that even the AMCs are not being given a fair hearing on the matter.Never the less if AMCs don`t defend any anti industry move or indulge in anti distributors acts then sooner or later they will meet their fate the Fidelity way n soon be luking for alternate businesses.. NO ONE CAN GROW ALONE. Hightime for us to relook n rework our business models or the business itself.

By bringing a dual nav concept for direct investors. it will be disaster for the MF industry and for the IFAs. remaining IFAs will have no option and to agree and abide what SEBI or AmFi will implement. I have one solution. we should get unite and oppose any such move which directly effects our life. ( by way of Dharns, strike etc ) it is never too late, so wake up my friends.

SEBI should procure through by own staff 4000 SIPs in September month from new investors only. This procurement will be from all type of cities and all regions. Then analyse the true problems and true pains in distribution. It will help them to understand process of introduce new investor to mutual fund industry. They can understand ground level problems. Then take a true decision.

I understand the anguish of Mutual Funds distributors. Authorities are partially blind to the problems faced by different stake holders of an industry. Be it M Fund, Insurance, P Office Deposits etc. They think that only customers/investors need to be protected and expect the distributors and companies to work for peanuts. They think that reducing commissions is the only solution. As if investors are dying to invest millions of Rupees once loads are abolished or commissions are reduced. In any case, when the expenses for investing in stock market are so low, how many people are investing money? People willingly save money in Bank FD's although the return albeit assured are abysmally low. People save money in Chit Funds or Committees which are very expensive and unsecured. The authorities must understand that giving advice/service costs money and distributors and AMC's must be adequately compensated.

please suggest alternate business models for me. Any way i am fee up with low client interest. Most of client are not reddening just on my relationship. let the music be faced by AMC themselves.

I totally agree with all point including the last few mentione

AMFI board including chairman should resign for not protecting interest of its distributors. Shame on them.

very well expresse. why AMC are quiet. We will only sell on upfront brokerages. Bye bye trail model. No SIP no equity.

SEBI is bringing a dual NAV concept for direct investors and channel investors . It is a bad for distributors. It will eat all the fruits of a tree whose seeds we had sown. It means that in last 15 years clients educated and pushed by us for investment in mutual funds, will be available to MFs for direct mode. MFs and SEBI should make new clients for direct NAV concept. In the population of 121 cr very few people opt for new pension scheme because NPS do not available through brokers. It is better that there must be single NAV concept with half of TER of direct investor credited to Investor Protection / Awareness Fund.

It is better to be prepared for the worst. . . when led by the blind in newer paths.

All AMC's must read these content of DFDA and must express our (IFA) views in good respect to SEBI so that the will grow. Thanks DFDA, good points your raising.

all know about branded toothpaste their is no advice for that so why gov.make it directly so n user get it chepar for only mf its work one guju khawat khali pet bhajan na hoy

There is no way that we can think of distribution to our clients at a higher cost than that of manufacturer.. we are well-wishers of client and just because few people have indulged in mis-selling, media and many others are trying to paint everyone with a single brush which is not fair.

speechless by the foolish movements from sebi (killers of ifa's)and amfi (puppet of sebi) let us wait and watch if god is there he must save ifa's and punish ruthless sebi and amfi.sai baba pls save us frm dying

If the authorities think that the Direct route will save costs, so be it. But what about the effects of investors buing products not suitable for them??? If they really want to make this industry cheaper its better they linked the AMC expenses to their performance, or atleast make them answerable for it.

now regreting why i should have not done insurance business,i think its better to start insurance business and cheat all the customers.mutual fund distributor now getting peanuts but one who cheats with insurance products are leaving lavishly,my advise to all ifa's is start cheating in insurance bycott mutual funds,once this industry dies then sebi and amfi will awake .

I and lots of my distributor friends are also willing to fight for this issue as many of us has joined this industry as a full timer.. taking it as career.... but 1st the entry load issue... then commission disclosure... and when we were expecting SEBI to do something for us by increasing some revenue... the big bang.. direct code .... we are working in remote areas were we have to actually go to the clients .... teach them like a primary school child.... and then some of them invest some money to check it out... the fee which we get is less than a tutor... everywhere there is news for awareness ... I dont think there will be awareness.. let the SEBI officials come to these Malaria affected areas where we work get some mosquito bites and then think of cutting down what we earn,, Now may god save this industry!

Once upon a time there were Mutual Fund Distributors & in those days Mutual Fund use to have huge AUM.......This would be story we will have to tell our grandchildren if this happens...HNI will start investing direct, distributor will stop following...in bad times like now investor will redeem and never come back to the industry. The Mutual Fund industry will die...and then the SEBI job is done as it will have no investors to protect as there will be no Mutual Fund industry

This is suffcient poison dose for all distributors. every body has to take initiate.it can not be done with some people or alone. if we will take strong action against this decision than it can be changed.we can see in history."GALAT KI HAAR HOTI HAI AUR SAHI KI JEET" AMC's can do if they want growth of this industry.

Dear friends, lot of suggestions captured in my mind, but decision making power is with sebi.The commission/incentives paid by amc`s. HOPE AMC WILL COME FORWARD AND ANNOUCE BEST SOLUTION, FOR THE BETERMENT OF MUTUAL FUND AND DISTRIBUTERS.

Some one in SEBI is totally against distributors. They think we earn easy money, alas :-(

After abolition of entry load bringing it back is politically impossible. Similarly, if trail commission goes once, bringing it back will be next to impossible. I would like each and every IFA to walk out and fight if not the above half is true as we did not fight against the abolition of entry load but to save trail and b4 everything is over we need to unite and discuss it JAGO IFA'S JAGO IF NOT WE WILL LOOSE WAT IS LEFT

Has SEBI taken an oath to eradicate the distributors from the MF industry? All such steps taken by SEBI are ultimately leading to reduction in the industry AUM. The initiative Empowering Investors by SEBI has turned out to be detrimental for the industry. SEBI can very well read the figures.Instead of penetration a completely reversal phenomenon is taking place.

Alas, sebi why are you doing all the unnecessary things without understanding the problem. earlier you removed entry load and then it made you to revisit and do something to promote business and now you are trying to introduce direct business to reduce TER.You think that client is worried about these small costs, actually business is being lost because of non-performance and issue of wrong themes at very wrong times. Can't you understand this problem and then device tool for it rather than beating the bushes in wrong style and wrong time. Man you shall destroy this industry. Please get awakened to the purposeful call.

I agree with Mohit.

Has SEBI taken an oath to eradicate the distributors from the MF industry? All such steps taken by SEBI are ultimately leading to reduction in the industry AUM. The initiative Empowering Investors by SEBI has turned out to be detrimental for the industry. SEBI can very well read the figures.Instead of penetration a completely reversal phenomenon is taking place.

...contd...all should help each other in finding out other alternative business options for survival in the worst situation.

It is indeed quite sarcastic to know that on one hand a serious concern for SEBI and AMFI is low product penetration and on other hand it is planning to start Direct Investments.Even after about two decades of private participation in MF business the AMC's along with all classes of distribution have not been very sucssessfull in penetrating the savings class of country, than what good can they expect from starting this new tussel between already existing investment class. SEBI should think about increasing the reach/penetration of Mutual Fund and not create more confusions in minds of existing MF investors. History has it that no product can ever survive without serious distribution.NPS is the best example in recent past.We sincerely hope that this whole concept of Direct is totally dropped otherwise it would surely prove to be "last nail in the coffin".

...contd... give birth to short term approach to the industry which will definitely be detrimental to the interests to all –Clients, AMCs & Distributors as well. Again selling of a particular class of product is not the solution to the problem. Being a real advisor we sell products to our clients as per their need & profile. If we sell only those kind of products to our customer which are less risky to us, how could we claim to be their real advisor? I think it not the solution to the problem; it is just a by-passing escaping form the problem. MY view is that no war can be win by escaping or by hiding, the only way to win a war is to fight bravely with the evil. Friends, it is a war against every person who think that the distributor community has no relevance in the mutual fund industry. We should find some ways through which we can show our opponents that without us this industry could not survive. In the mean time we.....

Contd....And that too without any fault on our part, then I think what’s the point to remain focussed only to such an uncertain business model. No doubt we should & we will fight restrain these unfair rules & practices till our last ray of hope but in the mean time we must try to discover opportunities to diversify our business also. So far as selling products having upfront commission only, my point is in such a case how one can expect that high level of ethics & fair advice from a distributor? If a distributor knows that upfront commission is the only way of remuneration he is going to receive from the sale of a product, he will definitely try to get more & more on every shot. He will definitely pitch a product to his client which is more remunerative to him ignoring the suitability of the product to the client. This practice will definitely give birth to short term approach to the industry which will definitely......

I think this is the only industry where the manufacturer & the regulator both are trying to murder their distributor community. While the fact is this today what is the shape & size of the MF industry is just because of distributors only. It is not highly paid AMC guys or SEBI officials sitting in the air-conditioned offices have created such a huge industry AUM . It is only our distributor community who on a grass root level done so hard work to stand the industry on this level. I think if the regulator & the manufacturer is not loyal their distributor community and not taking care of their genuine interests, we should definitely look for the diversification of our business. Any business model is based on some assumptions. One of the basic assumptions in our business is get future remunerations (in the form of trail) for our today’s hard work. If this is not certain that the AUM which we are generating for AMCs today will remain with us in future or not?

SEBI is doing all sorts of experiments with Mutual Fund Industry. Firstly, They brought 'Direct' Investments and then abolished entry loads and now bringing 'Direct with lower TER' models. This is not going to benefit anyone - neither the Distributors nor the Investors. SEBI should refrain itself from such activities and should think positively about the revival of the MF Industry.

This is indeed a slow poison for all kind of distributors whether retail, hni, IFA, National distributor or even banks. For once we should all come together and unite in a synchronised manner so as to oppose and prevent this draconian regulation to get implemented. This time each and every distributor should convey this message to all AMC personnel in their respective city and do whatever can be done to create awareness.

After going through the above note I can sense that we will be slowly forced to die our own death.

1. Direct Investment should only be applicable for online transactions and there should be minimum threshold of Rs 25,00,000/- lacs for direct investment. 2. There is cost involved to even direct investments also, when an application is processed, AMC is bearing cost on it. There should not be any Physical statement to direct investments, if direct investor needs any physical statement then he/she should be charged Rs 100/- per statement and this amount should be deducted by redeeming the units from his/her holding. 3. The existing AUM cannot be transferred into direct mode. 4. With the present recommendations of SEBI, there will be multiple NAV’s of same products. It will not help market expansion rather it will create confusion among the investors. 5. In its present move nowhere SEBI has talked about the market expansion. Where is the investor education? Without distributor MF cannot expand on its own. 6.

" A regulation in a day,Keep business away" .rightly said by Mr Parikh.One thing is sure Direct will take all the benefits of other 11 initiatives taken by SEBI.It will be nice on part of wealthforum if they can put the views of all AMC on DIRECT.