I will also do a story saying that the IFA is doomed…and have done one already. However when I say IFA is king I mean there is a huge market of IFAs to whom you can sell. Obviously like all customers the I F A too will buy based on Greed and Fear.

The Greed products are: software (improve your efficiency your income will go up), training, newsletters, websites, collective bargaining….etc. and

The Fear products are: software (imagine other IFAs are all using our software…), training (if you do not learn about new products, asset allocation, blah blah…the customer will walk away), websites (how can you work without a website)…

To reach out to them you will find articles saying how the IFA is actually a victim, how he is loyal to the customer..blah blah…

Though not necessarily in the same genre …I am not sure how many of you read Money Today article on the confessions of a bank manager. Will not name him / her but the story is echoed in many parts of the world…read on


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  1. Hi Mr Subramoney.
    I am an engineer with avid interest in commerce.
    I recently discovered your blog (through moneycontrol. Thanks for writing it. I will try to finish all past articles!!
    I liked the Money today story.

  2. It is difficult to get a man to understand something when his salary depends upon his not understanding it — Upton Sinclair.

  3. Warren Buffet also says something similar….my take is the buyer needs to be as careful as he is while buying. If I were the regulator I would insist that ULIP minimum premium should be Rs. 200,000 payable annually or Rs. 25,000 payable monthly and only a person who has a Term insurance of Rs. 10 lakhs should be allowed to buy a ULIP. The no. of players will go down.

  4. Subra, I think that ULIP rule rocks!!! You should not allow ULIP to be sold to anyone unless they have the minimum Term policy (10 lacs is as good as minimum…)
    Where can I vote for you as Finance Minister???

  5. Hi Subra,

    Thanks for sharing the Money Today article..

    MIS-SELL or LEAVE is the message to bank employees..

    All banks are coming out with AMCs and have tie ups for Insurance..Logical extension..

  6. ha ha Abhishek coming from you it is easy to see which bank you mean :).

    Everybody is under pressure. Look at the industry the shareholder is NOT GOING TO SEE PROFITS for the next 4-5 years. And another few years to wipe out the accumulated losses. Not funny if you are a promoter. It is a tough life. And there are no simple solutions either.

  7. Subra,

    You hit the nail.(as always).Me and my commission is the mantra . And the most discouraging part is that the tribes of mis-sellers are all around. Buyer beware …

  8. Why are so many players – IFA Galaxy, Ing, Wealthforum, NJ invest, Indiainfoline, – one more company from Mumbai (forgot the name) are all trying to get the mutual fund / insurance distributor organised under one forum? Cannot understand will some ifa please explain? All these people have approached me but my aum is only Rs. 21 crores – this I do not think is too big is it?

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