This is the latest one to disturb the mental peace of IFAs - TIED AGENCY CONCEPT. Talks are going up to end tied agency concept in the insurance sector and the MF industry is planning to get backward. Cant understand the logic behind this thought process of UTI mf. This will prove to be last nail in our coffin.

We are just wondered the govt. decission to be make 3 yrs Bank FDs to be an equally qualified instrument at par with ELSS.Can you imagine the adverse impact on the MF Industry

this is defensive mindset showing lack of confidence and conviction , we expect much better from UTI

A trail commissions of 2% to new distributors in the initial 5 years of their business across fund houses would be a better model to remunerate, enhance the brand of mutual funds and for better growth of the industry.

1.Tied agency model means even if the company’s products are not good or even if the products stop performing well, the IFA has to sell the products of that company only, sacrificing the client interest, which is neither good for the client nor good for the industry as it would promote mis-selling and loss of trust in the brand Mutual Fund itself 2. Without outlining what the remuneration model will be like in the tied agency model and trying to thrust the same on IFAs will be a further attempt to increase the profits of fund houses at the cost of IFAs squeezing them out further. All in all tied agency model is an attempt to safe guard short term profits of fund houses at the cost of long term growth of the industry.

At the time when the Insurance Regulator himself is thinking about allowing agents to sell products of multiple companies, trying to bring in tied agency model in Mutual Funds is obviously a retrograde step, harmful for both IFAs and investors alike.