28 Jun गरीब का कौन है?
The idea of financial intermediation is to grow the retail market comprising of people who can do SIPs of small amounts such as Rs 1000 to Rs 5000.
An entire generation who are living in the dark will be pushed further back into darker times if they do not make use of the time available to them.
Wealth compounding needs time and a good economy.
Fortunately we have a good economy but unfortunately people aren’t using their time well.
By investing in traditional bank deposits for the long term they are digging their graves because the corpus accumulated will not be enough for their life journey.
The financial intermediary / the IFA / MFD has a job in hand of mobilising small savings so that people do not stay small all the time.
However, if the new RIA system is thrust upon them with severe entry barriers like registration fee of Rs 1 lac and thereafter Rs 5 lac every five years, then how can the average person be reached and serviced?
RIAs will then focus only on HNI clients capable of paying high enough to offset the steep maintenance fee and still make a decent living.
Dharmendra Satapathy at NextLevel-Education