After the entry load regulations got tweaked, whats the way ahead?
It is the best framework for customers. It is a shift that changes the engagement between the distributor and the customer, bringing a lot of transparency. We believe other competing products will have similar guidelines. So, when complete transparency comes in other products also, the scenario will change. But there has to be a balance so that the product remains lucrative for distributors as well as the asset management companies. Is it lucrative for distributors at present? It depends on their ability to charge investors. Whenever there is a paradigm shift, there is friction. We are witnessing that friction, but it will come over a period of time. For distributors, it is required that they charge customers. They will have lower margins but can they make money if volumes rise? That’s the game. What are you doing for distributors? We are helping them package services in a better way. We need to educate the distributor so that he can give the right advice to customers. ICICI Prudential
