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Given the volatile markets, global uncertainties and changing regulations, how can MFDs/RIAs help investors stay calm and invested?
If one observes the industry net sales data, the general trend is that where there is market corrections, there is SIP inflow plus additional purchase. Similarly, when the markets go up, there is SIP inflow with some redemptions. What seems to emerge is that MFDs/RIAs are managing asset allocation very effectively. They are using SIPs/STPs to average the investors purchase so their investment journey is pleasant.
In these uncertain times, which three business skills can help MFDs/RIAs accelerate their business growth?
There are studies that show the gap between investors returns and market returns. Why is this gap? Because the investor is investing or redeeming at wrong times. In uncertain times, managing emotions becomes extremely important. Skills like knowledge on markets, underlying products are hygiene but I feel ability to handhold clients during uncertain times and help navigate these times to achieve end goals are critical.
The MF industry has flagged off the Rs. 100 lakh crore march. Which business skills can help MFDs/RIAs to participate in this Rs. 100 lakh crore march?
Ability to manage scale is important. Scale can come when one enhances the product basket, ancillary services like tax planning, trust services and uses technology to improve productivity.
In your view, which are the untapped investor segments that MFDs/RIAs should focus on? Also, could you share some quick tips on how they can reach out to them and make them their clients?
Once can segregate investors into buckets. One is the early investors (Gen Z), next is the investor who is settling down in life, the third is married with kids and the last is retirees.
All these four segments requires a different investment approach. We at times don't tailor make our proposition and hence there is a disconnect. If we were to approach each segment with solutions that they want, the scope of clients just explodes.
Thanks to AMFI campaigns, awareness on mutual funds has grown over the years. There are many first timers wanting to start a MF investment journey. I think more than segments, the categories are critical and how can we tailor make our solutions.
