The summit also discussed few major issues facing the IFA fraternity.
IFA Galaxy organized a knowledge summit 2012 in Chennai on 19th October 2012 which saw participation from successful advisors and top AMC officials. The theme of the seminar was ‘Empower, enrich and excel’. 392 professionals were present at the event and over 1000 viewers connected to the event through webcast, claimed Ramesh Baht, President IFA Galaxy.
Eminent experts spoke to the gathering on a variety of relevant topics
Aashish Somaiyaa, Head Retail Sales, ICICI Prudential AMC educated the IFAs on the concept of life time value of a client. To illustrate the point, he talked about the potential of bachelors as big investors later in their life. Catch them young and be loyal towards them because as these clients grow in their career and take on family responsibilities, they can turn out to be profitable investors.
M Benis Kumar, National Head Sales, Sundaram AMC, highlighted the importance of making clients realize the importance of asset allocation. Speaking to the gathering, he said, “We need to clearly explain a client why does he need asset allocation. Also, we need to recognize the difference between asset allocation and diversification.”
Important issues such as the need for induction of financial literacy in school curriculums and conducting of regular investor awareness programs were discussed during the event. “Investor literacy is important for building an educated client base who at least understands the basics of investment. Regular investor education program especially in locations beyond the top 15 cities will help AMCs to build a sustainable consumer base,” said Ajit Menon, EVP & Head Sales, DSP BlackRock Mutual Fund.
Along with investor awareness programs, the AMCs also shared their excitement about deepening their reach beyond top 15 cities. Speaking on behalf of AMC community, Srinivasa Rao, Head South Zone, Birla Sun Life Mutual Fund said, “All the AMCs are excited to expand their reach beyond the top 15 cities. But AMCs will take steps cautiously as each new distribution channel should be sustainable and viable for them in the long term.”
Finally, the AMC officials also discussed a sensitive issue - direct plan with the IFA gathering. Senior officials from the AMC fraternity highlighted the disadvantages and inconvenience of direct investment and promised to support the IFA channel for distribution. “IFAs should not be worried of direct investment because there would be only a small percent of an advisor’s clientele would opt for direct investment. But after realizing the importance of an advisor’s service,most will definitely return to the advisor,” said Kailash Kulkarni, CEO, L and T Mutual Fund.
Ajit Menon also supported Kailash and said, “AMC won’t be encouraging itself for servicing the clients directly because it is very difficult to manage and service a huge clientele. It’s the advisor’s job and AMCs will always support them.”
“The event witnessed participation from top AMC officials and IFAs from across the country. The forum helped the IFAs to discuss many important issues facing the industry,” said Ramesh Baht, President of IFA Galaxy.
