With the zero load in mutual funds it is perhaps not too wrong to expect that many fund advisors will get out of this business. I am not sure whether this is a correct assumptions but it is a logical one. Will it really happen? Let us see.

There will be many people in the post 45 years age group not too willing to learn a new trade. Such people will continue to sell mutual funds and they will add fixed deposits, e-broking, life insurance – if they do not already have it. Such people are not small in number and they will continue to increase.

Then there are housewives/ high school drop outs / pyramid selling blokes/ others who have been pulled into the life insurance business have two options. Those who do not have the drive will quit the business. The others will pick up a smattering of phrases like ‘Equity is good for the long term’, ‘amount of bonds in your portfolio should be equal to your age’, ‘take term insurance and invest in mutual funds’ and start doing financial planning. As the end customer does not know the difference between a correctly made plan and a badly made plan this will go on for a few years. Some of them will even get a designation which makes them look legitimate. A Certified Financial Consultant or a Certified Financial Adviser sounds as authentic as a Certified Financial Planner, does it not? Or even better a Chartered financial planner or a Chartered Wealth Consultant. Vow! there is an alphabetic soup out there….

There are younger people who may not have too much of a choice – the job market is not exactly welcoming them beyond 5-6 months. The typical sales call is ‘Join us, we will not ask for any performance for 1-2 quarters’. Everybody knows that post the 180 days ‘free’ period you will be sacked. So many such people would prefer to be with their dad/mom in the ‘family business’ of mutual fund advisory. It is bad, but at least you do not get abused by a half mad boss 🙂

There are many people being sacked by the mutual fund industry. Some are sacked, some are asked to take a big pay cut – making it impossible for the person to work there. Some such people will quit and start the business of ‘Financial Planning’.

Then of course there is the media. They assure you that they can be your adviser. It is your call.

Reminds me of the Max New York Life advertisement : Advise to sabhi log dete hain. Aap kiski sun te ho?

Your call investor.