Comments on: Agents are priceless… http://www.subramoney.com/2012/09/agents-are-priceless/ We Make Smart People Richer Wed, 19 Jun 2013 07:02:47 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: InvestmentKit http://www.subramoney.com/2012/09/agents-are-priceless/comment-page-1/#comment-88818 InvestmentKit Fri, 21 Sep 2012 03:26:43 +0000 http://www.subramoney.com/?p=12481#comment-88818 I agree with you. Agents CAN do a lot. But why they don’t.

Simple reasons.

Mutual fund agents are not getting enough commission, even for their survival in the industry. Direct Plans from next month will shorten their customer database more. Most of the small investors in India are habitual of getting back a portion of commission of agent. (thanks to LIC of India agents). So, these investors are not ready to pay fees to agents.

In life insurance, products are designed by the company – good or bad for the customer is a separate question. But in designing of a product, agent has no role. He has to sell those products. If he does not sell, he can not survive.

The solution can be simple. Just remove all the charges like premium allocation, policy admin etc. and pay a percentage of fund value every year to agent as commission like companies are getting in the form of FMC. This way, agent will target to get more profit for the customer instead of more commission now.

Lots of things can be changed. But can we expect anything from this Govt. I doubt so. They’re busy in right reforms in wrong time.

]]> By: hp http://www.subramoney.com/2012/09/agents-are-priceless/comment-page-1/#comment-88810 hp Fri, 21 Sep 2012 02:24:17 +0000 http://www.subramoney.com/?p=12481#comment-88810 subraji, this is hurting. Ok, I will see that in my career as a distributor will not be committing such mistakes.Learnt what not to do an an adviser of mutual funds.

rgds
hari

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