The national survey, participated by 1505 IFAs across 30 cities, shows that the economics of the business has been altered by the reduced commissions earned by the IFAs, market conditions, media glare and changing client expectations.
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The IFA community has been severely impacted by the market sentiments and the regulations and over 70% have seen a decrease in income compared to the past.
The survey also finds that the negative feeling among the IFA has not diminished its attraction with 5% of the surveyed IFAs saying that they joined the business in the last 2 years.
According to the survey, the IFAs are anxious about the future as they think that the regulators are not concerned about IFAs’ views and voices.
The survey also says that most IFAs do not undertake marketing and business development activities and are restricted to their social network, and expect the business to come from their existing clients – either through repeat business or referrals. Around 70%-90% business comes from references.
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By GlobalDataPrem Khatri, founder & CEO, Cafemutual, said, "Maintaining income level is the key concern of IFAs at this point of time and this can be done if they build up their marketing capability. While the onus is on the IFAs to adapt and progress under the changed circumstances, they need all the help they can get in making a smooth transition."
