Business world MF India Summit…or what I did there
I was part of a panel which said something like ‘Out of the box thinking’ in the MF distribution space.
I liked it..but there is so much basic work to do…
Amc’s are sitting on their backs and hoping that the existing 230 IFAs will grow the business. I think we are about 20,000,000 IFA short. Like I said..we have 230 we need 20 million. No, Amfi, or the industry will do nothing about it.
We will keep talking about low penetration. When I started life in the MF industry as a trainer and even before that as a broker hoping to sell research and equity to mutual funds (circa 1995) we were talking of a 2% penetration. Nothing has really changed much. Hey the fund industry has some very well paid employees, shareholders are happy, smiles all around…but the unit holder is paying a high price and getting shit closet index funds. In a country where the indices are so poorly constructed…these one eyed men look like kings.
Well first there is something to be done inside the box…now read what the other illuminaries in the field had to say…they needed a maverick..so I fitted the bill.
I guess the name Subramanyam has something to do with being a Maverick…?
http://businessworld.in/article/BW-MF-India-Summit-2016-Out-Of-The-Box-Thinking/21-08-2016-104602/
aditya modi
Subra sir,
How can a player like sodexo be in mF industry. Are you saying that via IFAs , MFs will accepts sodexos for SIPs. (SOdexos given to the their clients as part of their salary). Please explain.
ajayrajaram
Wow – 20 million IFAs? A story comes to mind
copied from google
—“May I help you ”’ brothel madam asked.
—“I want to see Jane Doe, please,” the man replied.
—“Sir, Jane Doe is one of our most expensive ladies”
—“Ma’am, I must see Jane Doe,” he replied with determination.
Jane Doe appeared and announced she charged $5,000 a visit. Without hesitation, the man pulled out five thousand dollars from his wallet and gave them to Jane Doe, and they went upstairs. After an hour, the man left calmly.
The next evening, the man appeared again, once more demanding to see Jane Doe. Jane Doe explained that no one had ever come back two nights in a row, as she was too expensive. There were no discounts.
Again, the man gave it to Jane Doe, and they went upstairs. After an hour, he left.
The following night the man was there yet again paid Jane Doe and they went upstairs.
Jane Doe said to the distinguished customer, “No one has ever been with me three nights in a row. Where are you from?”
—The man replied, “Wichita, Kansas”.
—“Really”, she said. “I have family in Wichita.”
—“I know.” the man said. “Your sister died, and I am her IFA. She left $15,000 for you in her will and asked me to give it to you.”
The moral of the story is that three things in life are certain:
1. Death
2. Taxes
3. Being screwed by a IFA
jay
@ajayrajaram This IFA has charged 100% commission, though he was honest enough to not go beyond the 100% 😉