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What are the key investor trends in 2024?
A lot of my clients are interested in thematic and sectoral investing, particularly in the last one year. They want to invest in new themes like defence and make in India to generate higher returns than a diversified equity fund.
Another key trend is rising demand for international funds and passive strategies like index funds and smart beta funds.
The last few years have been good for the distribution community largely because of markets. How can distributors sustain this growth and ensure that this momentum remains intact?
This momentum will not sustain and everyone knows this. During the last one year, investors have generated 30% to 40% returns, which is an exception. As an MFD, we must focus on keeping the expectation of clients moderate to gain clients trust.
What skills will be essential for MFDs in 2025?
I believe in strengthening relationships with clients. I stay in constant touch with them and always keep their expectations moderate.
MFDs must understand that the current sentiment and liquidity will not drive the market - only earnings growth will drive the market.
How can MFDs stay relevant in the era of direct plans?
If your client is trusting you and maintaining a healthy relationship with you, they will not go direct. This is a trust business and we should focus on building trust.
Adding women investors is one of the top priorities of the industry. How are you going about acquiring women clients?
One untapped market for MFDs is spouses of existing clients. I approach my clients' daughters and their wives. I educate them about the need for financial independence and the advantages of regular SIPs for long-term wealth creation.
What investor segment do you see as underserved?
Currently, everyone is thinking about tapping into the millennial segment, which is growing exponentially.
In my experience, retired individuals are currently underserved. They have enough money to invest but many MFDs are not reaching out to them. Retired individuals’ value personal touch and they appreciate it if you reach out to them with knowledge and solutions.
