Debt is an important part of asset allocation. However, over the years, investors and even advisors have tended to equate mutual funds with equity. Observing this gap, Reliance Mutual Fund decided to conduct a knowledge series for advisors that highlights the opportunities in the debt space. It brings to fore the various advantages of debt products such as liquidity, tax-efficiency and its role in asset allocation.
The knowledge series has been conducted so far in 11 locations across the country. To identify the likely participants, prominent IFAs who had substantial equity assets but low debt assets were invited.
Each program kicks off with Prem Khatri, CEO & Founder, Cafemutual defining the business opportunities in the debt space in the context of the changing business environment for IFAs. He shares his insights on the risks of conducting an equity only practice. Moreover, optimum asset allocation between equity and debt is extremely important to ensure that your client’s investments are in line with his risk profile.
Next, Arun Sundaresan, Co-Fund Manager (Quant Fund) & Head – Product Management, Reliance MF helps advisors identify how to map different goals of their clients to different debt funds. He also shares practical tips on introducing new clients to the mutual fund fold by advising them to invest in low risk mutual fund products like liquid funds.
The third session is a panel session featuring eminent IFAs who share their experience in building a debt book and offering debt investments was beneficial for their business.
The session received tremendous feedback from all advisors.
Sharing his experience on being part of panellists, Kolkata IFA coach Brijesh Dalmia said, “The event had vibrancy and the crowd was engaged. It was great to interact with so many IFAs at one place. Prem's moderation was par excellence.”
Kolkata IFA Partha Bhattacharya who attended the event said, “It was a great learning session on debt, since my entire AUM is in equity. Post the session, I have shifted my focus towards advising debt as an alternative to traditional deposits.”
Pankaj Sikaria said, “It was a wonderful session where basics of debt were again refreshed and helped us gain confidence in the bond market.”
