Though the mutual fund industry will not accept it, but their main source of business – the IFA – is struggling to breathe. I meet various IFA in various parts of the country. Sure there are some high profile, and high achieving IFA, but the majority has the following problems:

1. Clearly there is a slow, steady shift from Ifa business to direct business.
2. Internationally and in India, there is a shift to ETF, index funds, etc.
3. SIP book is growing, but the net addition to the corpus is less than the sip book
4. Banks are selling more life insurance, and that is good for the IFA
5. More IFA are shifting to sell life insurance, PMS and AIF. But it is tough.

Survival of the small IFA seems to be more difficult. The children of the older IFA may not be willing to come into the business. This is good for the new IFA – they will have a bigger share of the shrinking pie. This is tough for the ifa.