And then there were none….
This is a pure humor column…figures are completely wrong, but I guess the trend is correct….
150,000 people selling mutual funds (read as UTI), post office products, etc….
Exam introduced by SEBI (people wrongly call it the Amfi exam)
10,000 people selling UTI products
Exam introduced in Hindi
85,000 people have passed the exam…now it is Amfi / Nism exam
40,000 selling mutual funds – others are not selling.
22000 are active – they receive AT LEAST ONE CHEQUE – in 6 months
KYD introduced
15000 at best have done KYD so far
What will happen next?
Well agents will scream so registrars will keep bringing out ‘exception’ reports…and make payments…KYD zindabad.
some more facts:
Indians who have some capital product: 1.5% of the population.
Indians who have some bank LOAN product: 10%
with some banking product (savings account, FD): 20%
banks, mutual funds, life insurance, broking houses….guys you just NEED TO BE THERE for getting the business. Damn all strategy, marketing…
Just go out and open enough offices and business will come.
So if you see Standard Chartered Bank, Hdfc bank….etc. they just need geographies, feet on street,….brand image. Dhanda aayega…TINA man. There Really is no alternative.
Muthu
When you try sounding humorous you share something serious! When I quit BPO to enter into practicing I never thought our profession would become so much criticized one. Probably we are rated much worser than politicians.
There were 2000 advisors in Chennai before.
I hear from AMCs that there are only 200 active advisors now in Chennai. By ‘active’, if you login one application a month.
Not more than 50+ advisors are really active. The estimated investor population in Chennai should not be less than few lakhs.
Many advisors have joined BPO (reverse flow!) or have started various business like running mess, mechanic shop etc. Small investors, with no one to advice or service them are back to bank deposit or chit investments which is very popular in this part of the country. Gold chits are the most famous ones. Banks and chit firms are the happiest ones with the turn of events.
There may be 70+ CFPs in Chennai. Many of them are in employment. Some of them I speak to do not want get into practice in the present scenario as it would affect their own financial planning!
You’re right. KYD deadline has been extended!
iarab
So, to sum up, there are problems in the mutual fund industry, as it exists now. AMCs suffer due to goal post shifting by the SEBI. CFPs and advisors do not get adequate fees they deserve. Distributors find their margins vanish. Agents are jobless and are with empty stomach. What about investor- who bothers? OK. What is the solution? Let us draw up a plan and blue print for an ideal MF industry (albeit a wish-list), where every stake holder is a winner and earns his / her living. Through this plan, at leas, we can make a biginning, and come out with constructive suggestions to AMFI/SEBI.