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A recent study titled ‘Rediscover the Indian Investor’ conducted by Cafemutual reveals that majority of investors working with MFDs/RIAs feel safe and comfortable with them. They believe that investment decisions should be left to discretion of experts like mutual fund distributors.
The survey finds that over 51% people who hired an intermediary see MFDs/RIAs as financial experts and believe that they are very helpful to create wealth.
Another 30% people hired MFDs/RIAs as they do not have time to manage money while 19% say that since they don’t have knowledge about mutual funds, they work with MFDs/RIAs.
The survey covered 1340 investors working with MFDs/RIAs – 1015 male and 325 female. Of the total respondents, 489 were millennials. All these participants have been surveyed through physical interviews and the sample size includes investors who have invested their money in at least one financial product with an intermediary.
When asked these respondents what do they expect from their MFDs/RIAs, they believe that their MFD should handhold them through all paperwork and formalities, review their investment portfolio, select right funds, draw an investment plan, guide on financial behaviour and empathise well with their family.
Here is the table basis the weightage on expectation:
Sharing their experience on working with MFDs/RIAs, 70% investors say that they have had a good experience with them. Further, 28% say that they do not have any good or bad experience with them. A marginal 2% investors said that they are not happy with their MFDs/RIAs.
