insurance agent, FD agent, National Savings Scheme products, PPF, etc registered with any other Financial Services Regulator.
The new cadre that has been announced is a very interesting move. This cadre is allowed to sell only performing Diversified Equity Funds, Fixed Maturity Plans and Index Funds. These category funds come with low risk. Therefore, for the new cadre, who will undergo a very simple examination specially devised by NISM.
With only simple products available for this cadre, they would be able to reach out to more people to sell these less risky products.
At present, we have close to 50,000 distributors registered with AMFI. With this move, we expect that about one lakh more distributors may be added to the fold. With such large force, the industry would then be in a position to grow, expand and penetrate into smaller towns. We also expect that the smaller towns will contribute more in the new cadre of distributors.
The market sentiments have improved. In a long-term perspective, there is no doubt about growth of Indian economy.
At such a scenario, we believe that such an initiative will augur well for the development of the industry. The penetration that we all are looking for can only be achieved by more “Feet on Street”.
With the introduction of the new cadre and the announcement of free registration will only support in achieving this objective of more feet on street to sell mutual fund products.
— Author is Dy Chief Executive, Association of Mutual Funds in India