From August 2009, the Indian mutual fund industry will change its distribution model under an order from the Securities and Exchange Board of India. The regulator has done away with entry load for schemes. This will cause a lot of turmoil for all three parties involved: Mutual fund companies, investors and the distributors who handle 90 percent of the transactions.
How will the industry change?(This story appears in the 31 July, 2009 issue of Forbes India. To visit our Archives, click here.)
Model 5 - Trail fee model - Offer investors a low-cost online platform for buying and selling mutual funds. Scalability of services and low-cost operations ensure thriving business with trail fee revenues.
on Jul 20, 2009