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The Rs. 100 lakh crore journey has ample untapped opportunities that can help you scale your business and achieve new heights. To help you identify these opportunities and reach out to the masses, Cafemutual Confluence 2022 (CC 22) conducted a panel discussion on ‘Emerging Opportunities’.
The panel comprised Ankur Thakore – CDO, L&T MF, K S Rao – Head-Investor Education & Distribution Development, Aditya Birla Sunlife MF, Saugata Chatterjee – Co-CBO, Nippon India MF and Saurabh Jain – CMO, Union MF.
Prem Khatri, Founder and CEO, Cafemutual moderated the discussion.
The expert panel answered some of the pertinent questions that helped MFDs/RIAs understand the foundation of a solid business model.
Where are the emerging opportunities?
There are over ten crore demat account holders as against three crore plus mutual fund investors. This gap in the investor count in capital markets and mutual funds hints at existing opportunities.
Data also suggests that India added 18-20 crore working population over the last 10-15 years and another 18 crore of new generation population will join the workforce in the next 20 years. Clearly, a cumulative base of close to 40 crore individuals holds huge business potential.
Further, the current spread of distributors in beyond 50 cities is limited. These cities have the money and need more distributors to enter.
Also, you can focus on tax planning, estate planning and retirement advisory services. While investors seek assistance in tax planning and need professional guidance, covid-19 taught that estate planning offers great business opportunities too. Additionally, through retirement advisory, you can create a sustainable business model.
Which investor categories hold huge business potential?
Women, millennials and retirees/to be retirees are the three largest potential investor segments for the MF industry.
Educating a lady amounts to educating an entire family. Millennials who were earlier perceived as the spending generation are actively looking at saving. Also, after having burnt their fingers in cryptocurrencies, they need guidance.
Lastly, the third investor category - retiree/to be retiree constitutes a big segment and has huge money. Here, fixed income funds can play a big role to generate regular income for them.
What is the ideal narrative to reach out to the masses?
It is essential to create a brand with strong visibility. Make your presence felt either digitally or otherwise. Next, identify the investor category you would want to cater to and reach out to them through educational sessions.
While there are multiple products available, each product is not meant for every investor. Thus, there is a need to make product communication stronger. Also, while you do talk about how mutual funds offer convenience, tell investors about both near-term as well as long term solutions.
Additionally, customise communication for every segment. This helps in acquiring new clients. For instance, communicating with a retiree is far more different from communicating with a young investor who just started earning. Convincing in both these cases requires a different approach.
The way of communication also matters. For instance, if you are not digitally inclined, then focusing on older investors instead of millennials makes more sense.
Here’s a sneak peek into the panel discussion on ‘Emerging Opportunities’. You can watch the entire video along with other CC 22 videos at a nominal price of Rs. 499 only. Simply write to us at fouzia@cafemutual.com and get ready to march towards Rs. 100 lakh crore.
