Sebi, Amfi incentives bring back mutual funds distributors
Beginning November 2012, AMFI had cut the registration fee for individual from Rs 5,000 to Rs 3,000 for three years and also reduced the renewal fee at 50 per cent of the registration fee.
The Association of Independent Financial Advisors seem to be a happy lot with the trend of a rise in inflow of new individuals in the business. Ramesh Bhat, president, IFA Galaxy, said that the higher charge of up to 30 basis points as per the new Sebi guideline has resulted into and inflow of new IFA’s and distributors to the industry as their income levels have gone up.
“While more people are currently joining the business from larger cities, they are also coming in smaller towns as asset management companies have taken initiatives to attract them in smaller towns too,” said Bhat.
* Renewals rose from 418 in October to 535 in November and was up to 875 in December
* The industry witnessed more than 700 new registrations in the quarter ended December 2012
* After Sebi introduced no entry load in Aug 2009, several distributors had moved out
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