Consolidation in every market is expected whether it is in Banking sector or in Real Sector. The latest being Mutual Fund sector now wherein SEBI aims to ensure that the Asset Management Company has only One Product Offering in each Category.
The Mutual Fund Advisory Panel plans to define in strict terms the various categories of Mutual Funds namely Equity, Debt, Hybrid and Thematic.
In each of such above categories, SEBI wants each Fund Management Company to have only One Scheme to simplify the choices for the Customers. Simplifying this choice for the customers would mean more challenges for the Brokers who tend to confuse the clients amongst various schemes of Mutual Funds. It is expected that only 10 types of Equity Funds, 10 types of Debt Funds and 4-5 types of Hybrid Funds shall remain in the market from the existing figure of over 2000 Mutual Fund Schemes.
The day is nearing when the customer would know what all schemes of mutual funds need to be invested directly and save the costs rather than moving through Sub Brokers.
Sub Brokers/Agents need to be proactive enough in gaining knowledge to become Advisors to avoid upcoming jolts!!