The next time you are at a bus stop, do not be surprised if you find your advisor friend staring at you from a hoarding, talking of mutual funds.
Edelweiss Mutual Fund recently ran a True to Label campaign where they teamed up with more than 20 independent financial advisors (IFAs) to spread their motto – investors will get what they see when they invest in true-to-label funds.
If we rewind just a few months back, there was ambiguity in definitions of scheme categories. With over 40 mutual funds and each having multiple schemes, it was quite a challenge for investors to analyse if the fund’s portfolio would align with his/her risk appetite. Additionally, there was no guarantee that the scheme would stick to the stated allocation or strategy. Clearly, there was a need for schemes to define their investment strategy, be transparent in their communication with investors and remain committed to their investment philosophy, i.e. be true to label.
What does ‘true to label’ mean?
- You get what you see
- You get what is communicated to you
- The fund invests where it claims to
- The fund is committed to the investment strategy in letter and spirit
- The fund keeps communication going
When we asked Radhika Gupta, CEO, Edelweiss Mutual Fund about the rationale for featuring advisors on hoardings, she credited IFAs for the idea. “We have received so many brilliant ideas from IFAs. When we discussed the true-to-label concept with a few advisors in Ahmedabad, one of them suggested it to me and we immediately decided to take it up. As IFAs are intermediaries between investors and mutual funds, this makes them the natural ambassadors to spread the true-to-label message among investors,” she said.
The decision to make them brand ambassadors is a logical move as it puts the spotlight on the advisory fraternity, which has been instrumental in spreading awareness about mutual funds amongst investors.
Let us see what a few advisors who were featured in the campaign had to say about the experience.
Srikanth Matrubai of SriKavi Wealth Advisors is happy as he got new clients. “8-10 HNIs approached me for investment advice after looking at the hoardings. These hoardings have helped the advisors like me gain acceptance and respect among investors,” he said.
Amit Bivalkar of Sapient Wealth Advisors and Brokers received congratulatory calls from clients. Talking about the campaign, he said he readily agreed to participate as the philosophy the Edelweiss campaign propounded clearly matched with his values. “We have always been advising our clients to invest in funds which are true to their mandate and not just true to returns. We believe that so long as the investment process followed is sound, scheme performance will follow in the long term,” he added.
Abhenav Khettry of Vyana Wealth was amongst the first IFAs to empanel with Edelweiss in Kolkata seven years ago. Thus, when Edelweiss Mutual Fund approached him with the proposal to join the campaign, he felt honoured. “Coming from the Edelweiss brand, it has given me a lot of publicity and being a marketing guy, I appreciate the reach. Though I have done banner campaigns for my company before, this campaign backed by the Edelweiss group has given me huge exposure,” he said.