NS Venkatesh, CEO of AMFI, believes that the direct mutual fund investments will not cannibalize the mutual fund distributor business.
The SEBI chief Ajay Tyagi encouraged and promoted direct plans of MFs among investors who have the capability to invest and manage their investments on their own, during the AMFI Mutual Fund Summit 2018.
The AMFI CEO also supports to encourage direct MF investment plans by aware investors. Most of the MF distributors present at the Summit were unhappy about the highlighting on direct MF investments.
When asked about the AMFI CEO’s views on this, he said that this is normal and it is basically a knee-jerk reaction. In due course, the MF distributors will have enough space to make their living in spite of the direct mutual fund investments, he added.
Generally, the fund houses are in direct touch with the MF distributors, and AMFI does not involve in that. However, the AMFI’s code of conduct says that the mutual fund houses and distributors must not involve in any acts that result in mis-selling of MF products.
In case of noticing any violations related to this matter, the AMFI’s ARN committee will take necessary actions against the AMC and distributor involved.
Besides the “Mutual Fund Sahi Hai” campaign which has been a success already, the AMFI also has other plans for investor awareness. Moreover, AMFI has the “Jan Nivesh” programme for creating awareness for mutual funds investment opportunities.
The AMFI along with SEBI runs many activities in about 36 to 40 cities. AMFI is furthermore planning to bring awareness in the tier-3 and tier-4 cities in the future.
Mr. Venkatesh also emphasized the point that AMFI is trying to make clear to the investors through its campaigns that not all investors can do direct mutual fund investments on their own, reported The Economic Times. Basically, MF distributor is the first point of contact for any prospective investor, according to Latest Khabar.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]