57% fall in IFA registrations in November 2019 as compared to the corresponding month of 2018. 
Regulatory changes in TER structure, a shift in the all-trail commission model, and the volatility of the current market altogether have had a hand in the unprecedented decline in IFA registrations. It is indeed a tough time for IFAs to survive, depending on their old operating model.
The needs and wants of customers have evolved, thanks to technology and the gamut of services it offers at the click of a button. With digital wealth management solutions and the best mutual funds app for android, technology is certainly proving to be a boon.
There was once a time when investors were wary of mutual funds. Much needed awareness campaigns like "Mutual funds Sahi Hai" by AMFI did not merely create awareness about mutual funds but also aided in a high inflow in the stock markets after that. Similarly, I believe it is time now for awareness campaigns to define the benefits of dealing with IFAs. But first, the operating model of IFAs needs an overhaul.
IFAs in the New Year
If you are wondering about the status of the IFAs in the present year, then let's see what 2020 has to offer.
In an interesting article I read, advisors across India were asked, what are they doing differently this year to take their business to the next level?
Investing in technology - (AI for data analytics and portfolio management) was the most common answer among well-established organizations. Other pointers included focusing on goal-based investing, strengthening client engagement, and simplifying processes. These are relatively imperative areas that need to be focused on for the growth of the advisory business.
I believe these organizations are on track in their futuristic approach, but what about growing financial entrepreneurs? Do they have access to huge funds, systems, and support to make this impetus overhaul?
In my opinion, the collaboration will be their opportunity for an upgrade. To adapt, they will have to rely on an eco-system that gives them support and stability to rely on for all their intelligence and back-end requirements.
They will additionally need a broader product catalog to ensure the stability of income and better ROI; and all of this while maintaining the unique brand of their advisory business.
To Sum it Up!
IFAs have always been significant resources not only for their clients but also for the growth of the mutual funds in general, equipped with the best mutual fund distributor software in India; the IFAs are powerful than ever before. Therefore, they must cope up with the present situation by acting smart, to regain their lost value.
By Rajan Pathak, Co-Founder & MD, Fintso
Rajan is known for his in-depth insight into the financial entrepreneur’s venture with 25+ years of establishing various B2B businesses, which gives him the edge and adeptness to scale the advisory business.
As the CEO of IFAN Finserv (formerly ING), Rajan managed a team of 40+ people, created a wide network serving 1300+ Independent Financial Advisors managing assets over $500 million.