Mutual Fund Advisory Business in Small Towns

- These advisors are not interested in joining mutual fund business because of the commission they receive.

- The second mostly preferred reason is their workload and age. They are already in to a business where they feel they are getting high income. They are not in a condition to learn so many products for a lesser amount of income.

- The starters are ready for it but there has to be an awareness and proper earnings that can attract youth towards it.

- Many research papers say that MF needs to increase awareness for increasing investment but my research shows that people are aware of mutual fund but the unattractive pattern of income and some bitter experiences are forcing them to go against it.

- Advisors have been investors and experienced outflow of money so they do not want their clients to suffer through it. They find some reasons for not joining MF.

• The past investment experiences were bad

• They are unaware of what advisory businesses do

• They are not attracting towards the o.50% income pattern.

• Advisors are not ready for MF as it includes many products and dependent on market conditions. Hence, they find it uncomfortable and risky

• Many people feel that MF is a pool of learning stock market but there is no earning. We can’t go for this business just for learning. We have to earn.

• Everyone believes that MF gives rewards in long run and that too is uncertain. Hence, they don’t want to enter.

- On the other hand, investors are saving a large amount. They are ready to invest in stock market and MF. Many are ready for risk taking. Their incomes and savings are good and they are just earning low in savings account and other such things because they are not aware of mutual funds.

- If there is saving then there is surely a scope of putting mutual fund. Perhaps insurance agents are not the targets.

- People have lost money in bad funds. They need proper guidance and that can be given by advisory businesses.

Bibliography

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