Sir, I have completed NISM_VA module recently. Should I start my Mutual Fund Distribution business on my own or go through national distributors like NJ investment… etc.? What are the benefits if we tie up with such distributors? Should my commission get reduced? Kindly give your thoughts.
Prasanna-If you have good customer base then you can directly start business with associating respective AMCs. They look at you only when you have huge business. Also, in beginning you may feel the heat of managing the service related issues.
Hence, my suggestion is to go with big brokers like NJ and once the business set up, then go to direct. Commission in some cases is bit less and in some it is high. The advantage to go with NJ is, you can dump all application forms at one point. Manage of client data is easy as they have wonderful software. Hence, in my view, start with NJ.
I personally doing the business with NJ.