Mutual funds industry: Need more feet on Street
Under the new cadre, we have also included the following two categories:
Intermediaries/Agents engaged in distribution of financial products e.g. 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
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