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Agricultural Investment Funds (AIFs) 2010

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distributors have a limited incentive to invest on training and improving the awareness, knowledge and skill of distributors. Economic compulsions could see companies move towards a committed distributorship system. Alternate lower cost distribution channels: Other avenues for AMCs to diversify their distribution base could include an examination of distribution channels prevalent in other industries, especially those that involve a low distribution cost— such as the FMCG industry. Customers in Tier-2 and lower cities could also be tapped by leveraging on the reach of PSU banks in these areas, which could be mutually beneficial. Alternate technology-based channels including the Internet and.

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