JOIN USAccording to Cafemutual.com Founder Prem Khatri said: Though IFAs have deep conviction in the merits of mutual funds from investment point of view, they are anxious about the future because they perceive the regulator as being unconcerned about IFAs’ views and voices.
Another significant finding was most IFAs don’t undertake marketing and business development activities. Restricting their catchment area to their social network, Khatri said, they (IFAs) expect their growth to come from their existing clients -- either through repeat business or referrals. Most IFAs focus on selling equity funds only and there has been only marginal shift into non-equity categories.
“While in the past, inflows would dry up completely in market downturns, today we have an stimated 8 million Systematic Investment Plans (SIPs) running, most of them being brought in by IFAs,” said Khatri. The industry has huge opportunity in tapping the retail money that is currently being put in bank deposits and small savings.