What must mutual fund distributors do to win? - Mentored experts..!
What must mutual fund distributors do to win? - Mentored experts..!
The Association of Mutual Fund Distributors (MFDs) is the Independent Financial Professionals Association (IFPA). Its annual meeting was recently held in Chennai.
Sunil Subramaniam, Managing director of Sundaram Mutual Fund spoke as the first speaker in this meeting. He explained what mutual fund agents need to do to take their business to the next level.
Many mutual fund investors do not use the hybrid fund segment in mutual fund investment properly. Banks' fixed deposit schemes are currently earning around 7 percent interest per annum. At the same time, mutual fund distributors have to tell investors that the returns offered by hybrid funds, which are less risky, are higher on a post-tax basis. As far as fixed deposits are concerned, regardless of the investment tenure, one has to pay tax according to the tax bracket one falls in. That way the person in the higher tax bracket will have to pay more tax.
These hybrid funds can give returns of around 12-13 percent per annum over a long period of more than three years. If the investment in these funds is more than 65 percent in corporate stocks, one will have to pay 15% tax as short term capital gain if one sells the units within one year irrespective of the tax bracket. This means no income tax on long-term capital gains up to Rs 1 lakh in a financial year if profit is made after selling the units for more than one year. A tax of 10% is enough on the profit above that.
Gradually bring fixed depositors to this hybrid fund. Also, instead of selling investment schemes to investors, address their financial needs. ,'' noted what can be done to retain investors. Give surprise gifts to investors on birthdays, weddings, etc. Also, explain the ins and outs of the stock market and debt market to investors. Get used to investing small amounts in risky projects first. This will give them more income. Income will also increase for agents," he said.
Sunil Subramaniam launched IFPA's new website (https://www.ifpaindia.in/)
Further, in this meeting, fund managers from various mutual fund companies spoke in detail about the current development of the mutual fund industry. Former Chief Secretary of the tamil Nadu Government, Dr. V. Irayanbu, gave a special speech on the topic 'Vanamalla Ellai'.
The Association of Mutual Fund Distributors (MFDs) is the Independent Financial Professionals Association (IFPA). Its annual meeting was recently held in Chennai.
Sunil Subramaniam, Managing director of Sundaram Mutual Fund spoke as the first speaker in this meeting. He explained what mutual fund agents need to do to take their business to the next level.
Many mutual fund investors do not use the hybrid fund segment in mutual fund investment properly. Banks' fixed deposit schemes are currently earning around 7 percent interest per annum. At the same time, mutual fund distributors have to tell investors that the returns offered by hybrid funds, which are less risky, are higher on a post-tax basis. As far as fixed deposits are concerned, regardless of the investment tenure, one has to pay tax according to the tax bracket one falls in. That way the person in the higher tax bracket will have to pay more tax.
These hybrid funds can give returns of around 12-13 percent per annum over a long period of more than three years. If the investment in these funds is more than 65 percent in corporate stocks, one will have to pay 15% tax as short term capital gain if one sells the units within one year irrespective of the tax bracket. This means no income tax on long-term capital gains up to Rs 1 lakh in a financial year if profit is made after selling the units for more than one year. A tax of 10% is enough on the profit above that.
Gradually bring fixed depositors to this hybrid fund. Also, instead of selling investment schemes to investors, address their financial needs. ,'' noted what can be done to retain investors. Give surprise gifts to investors on birthdays, weddings, etc. Also, explain the ins and outs of the stock market and debt market to investors. Get used to investing small amounts in risky projects first. This will give them more income. Income will also increase for agents," he said.
Sunil Subramaniam launched IFPA's new website (https://www.ifpaindia.in/)
Further, in this meeting, fund managers from various mutual fund companies spoke in detail about the current development of the mutual fund industry. Former Chief Secretary of the tamil Nadu Government, Dr. V. Irayanbu, gave a special speech on the topic 'Vanamalla Ellai'.