42. Why do AMCs go for the services of large distributors?
To control increasing operational costs , AMCs are opting for the services of large distributors to sell their products by leveraging their value chain,which comprises a broker, sub -broker and agents .However , Mutual Fund players have to bear spluring marketing expenses to push their product against others.In addition , Mutual Funds AMCs are also using banks and Non-Banking Financial Companies (NBFC) as distribution channel to leverage their reach and huge client base.