Equity SIPs and term insurance find favour with IFAs

As per an Independent financial advisor (IFA) survey by WealthForum, equity SIPs and pure term plans are clear IFA favourites in terms of product recommendations.

Amongst fund houses, ICICI Prudential Mutual Fund occupies highmindshare of leading IFAs across most business parameters. In the equity mutual fund space, IFAs believe it is best placed to deliver long term wealth creation through equity funds.

Franklin Templeton maintains its No.1 position in debt funds. IFA concerns on direct plans are increasing and they see direct plans increasingly impacting their business over the next 3 years.

Notwithstanding this, business confidence continues to be high and encouragingly, willingness to invest in the business has hit a new high. IFAs are not very enthused with the MF industry’s ambitious new project, MF Utility: interest in MFU is waning while concerns about MFU aiding the growth of direct plans remain.

IFAs have forecast Sensex level for March 2016 at 30,112. 10 year G-Sec yields for March 16 are forecast at 7.4%. Amongst products in the financial services space, the survey found that Confidence in recommending gold funds is at a new low, while confidence in recommending debt funds and hybrid funds is growing. 213 IFAs from 42 cities participated in this survey.