Ganesh you have recently joined MF Utilities as its new CEO. What are your key priorities for the company?
MFU’s objective is to create a ‘shared services’ model for the benefit of investors. In this process, MFU offers convenience to distributors and RIAs to execute transaction in mutual fund seamlessly and increase their efficiency. As the new CEO, I would take this legacy forward and make MFU more relevant to investors, MFDs and RIAs. To achieve this, MFU’s key focus areas are:
- Leveraging technology to build a robust system
- Help AMCs increase footprint in B30 cities
- Identify opportunities to reduce operational costs
- Make processes and technology simpler and beneficial for MFDs/RIAs
- Offer complete business solution to MFDs/RIAs
There are many platforms which offer execution services to MFDs. Why do you think MFDs should look at MF Utilities?
MFDs should understand that MFU is an ‘MF aggregation system’ which offers a host of benefits like MFDs can keep details of financial and non-financial transactions, schedule systematic transactions, track status of transactions and so on. In addition, MFDs can monitor complaints and track status of service requests through MFU.
In fact, we will soon introduce host of features which will make MFU a ‘Go-to’ system for investors and MFDS to transact.
How is MF Utilities different from other such platforms?
There are many features which makes MFU different from other platforms. Features like non-financial transactions, transaction tracking, mandate swapping, schedule systematic transactions, folio based transactions, goal setting and creating a wishlist/basket among others are exclusive to MFU.
In an era of direct MF online distributors, why do you think individual MFDs still have an edge over these online distributors?
In last couple of years, the industry has seen massive growth of online distributors offering direct plans. These platforms are good for the MF industry as they facilitate ease of transaction and convenience but providing customized investment solution to investors is a different ball game.
I strongly believe that the role of MFDs extends way beyond execution of transaction. MFDs are critical for the growth of the MF industry and they play a vital role in wealth creation journey of investors and will continue to do so.
Individual MFDs can understand investors better, they can help clients overcome behavioural biases and offer customized solution which may not be possible for online platforms. In my view, even if digital distribution channel grows, the need for individual MFDs will multiply from here. In fact, the MF industry is in dire need of individual MFDs to expand its footprints.
Physical meeting was one of the biggest advantages that MFDs have over these online distributors. However, work from home has restricted such meeting to virtual interactions, which may not be effective as physical meetings. In such a scenario, how can distributors maintain their competitive advantage and continue to grow their business?
While nothing can replace physical meetings, the fact is that MFDs cannot meet their clients physically for some more time. Even if the government eases lockdown restriction, normalcy will not be restored anytime soon.
In my view, MFDs should utilize this time to upgrade their knowledge and enhance their business skills. Also, MFDs should spend more time with their clients through video conferencing reviewing their investment portfolio and sharing tips on wealth creation.
How will you be engaging with distributors during these trying times? What support will your company extend to distributors to deal with the second wave of coronavirus outbreak?
We organise multiple training sessions for MFDs on a daily basis. The idea is to lend them support to shift their business completely online.
