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The MF industry is all geared for Rs. 100 lakh crore. But as an MFD what can you do to be a part of this march? To help you gain clarity on this, Cafemutual Confluence 2022, held an exclusive panel discussion titled ‘The new frontier - How will the industry reach the Rs. 100 lakh crore mark?’
The panel hosted some eminent industry names and was moderated by Prem Khatri, Founder & CEO, Cafemutual.
Here are the key takeaways from the panel discussion.
Working towards the behavioural gap can take us far more distance than where we are today
- Ajit Menon, CEO, PGIM India MF
When we think about investment products, we believe man is rational and makes rational choices. However, behavioural economics and sciences say that man is emotional and not so rational. He takes emotional decisions and which is why when you talk about child's goals or spouse's goals, he's probably more receptive to it.
The challenge is to recognize the behavioural gap. Work towards bridging this gap using mutual funds. If we can make this happen, we can go far more distance than where we are today.
Change the narrative from rupee crore to crore of investors
- Kailash Kulkarni, CEO, L&T MF
Change from talking about rupee crore to crores of investors. So far, we have added three and a half crore investors and the number phenomenally doubled in just two years. From here on, we are confident that there will be 10 crore investors soon. The multiplier effect thus comes to play, making Rs. 100 lakh crore the outcome and not an input.
Set an ambitious goal of increasing your client base. And, use technology to serve clients across geographies, reduce servicing costs and increase efficiency.
Convey the ‘Mutual Fund Sahi Hai’ message to every Indian household
- Navneet Munot, MD & CEO, HDFC MF
MFDs and the ‘Mutual Fund Sahi Hai’ campaign have sent out the SIP message very well, making SIP a pull product as against the push product that it earlier was. However, we still have a long way to go to reach out to every Indian household. Though the message is the same, there are a variety of ways to communicate.
Also, it is more about the behavioural nudge than the information.
For distributors who raise their AUM multiple times, overall profitability will increase despite a dip in margins
- Nilesh Shah, Group President & MD, Kotak MF
Profit margins will continue to dip as the AUM increases but they will not reduce for all in the same proportion. In fact, most players in the MF industry will see rising growth in absolute terms.
For distributors who raise their AUM multiple times, overall profitability will increase despite a dip in margins. Expanding business through geographic diversification and leveraging technology to reduce costs will also contribute to this increase.
Look at PMS and AIF parallelly
- Sunil Subramaniam - MD, Sundaram MF
Typically, in the case of upper classes, there is a dramatic difference in the component of money saved versus spent. This is largely because one cannot spend beyond a certain point on basic necessities.
Notably, we believe that 50% of the population will be in the top three categories - affluent, rich and upper middle class. And the plain vanilla mutual funds may not be able to serve them. Thus, we should look at our industry in totality and not purely as a mutual fund. PMS and AIF also provide valuable services, look at them parallelly.
Having witnessed the potential closely, MFDs can be brand ambassadors for others to join the industry
- Vishal Kapoor - CEO, IDFC MF
The Rs. 100 lakh crore goal cannot be met without growing MFD partners. While AMFI’s ‘shuru kare’ campaign is an invitation for new MFDs to join the industry, it highlights the value that an MFD brings to the table. Also, MFDs can be brand ambassadors for others to join the industry as they have closely seen the potential.
Besides, upskilling is important as it is finally the quality and value that helps to acquire and retain clients.
Here’s a sneak peek into the panel discussion on ‘The new frontier - How will the industry reach the Rs. 100 lakh crore mark?’ 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.
