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2023 is coming to an end soon, what are the key business lessons that the year taught?
In the realm of mutual fund distribution, several pivotal lessons have emerged in 2023.
Firstly, the ascent of Environmental, Social, and Governance (ESG) investing underscores a paradigm shift in client preferences, necessitating a proactive integration of sustainable principles into investment strategies. Businesses should recognize the increasing importance of aligning portfolios with ethical and environmental considerations to meet evolving market demands.
Secondly, the heightened focus on risk management has become even more pronounced. From market volatility to unforeseen global events, effective risk mitigation strategies are essential for safeguarding both client investments and the reputation of financial distribution firms. Embracing a holistic approach to risk management is pivotal for sustaining long-term success in the ever-changing financial landscape.
What are your aspirations for the coming year? How do you see growing your distribution business?
We humbly iterate that our aspiration and endeavor has been to measure and assess if we have reached the benchmark we have set for ourselves - in terms of enhancing client experience, creating happy investors and adding more value to our clients. This helps us to build our business through referrals.
Also, we aspire to build a business that leverages advanced technology for enhanced client experiences, embrace ESG principles in investment strategies and align portfolios with sustainable practices.
Which new business skills are you desirous to learn in 2024? And why?
Cross-border fund distribution - We are desirous to understand regulations and market dynamics in different regions that can open up new markets and diversify the client base.
Impact investing - We also wish to learn about impact investing, which involves making investments with the intention of generating positive, measurable social and environmental impact alongside financial returns. This aligns with the growing interest in socially responsible investing.
Which investor category do you sense is still untapped and should be explored in the coming year?
The emerging income aspirational market in the tier 2 cities which is a widely underpenetrated segment.
We would like to make them future ready by guiding them to invest in simple and transparent asset classes like mutual funds, a versatile asset class catering to different needs that can help them to achieve their financial aspirations.
Lastly, how can the MF industry add more women investors?
As part of our social responsibility and as a step towards promoting literacy, particularly in women, we conduct financial awareness programs tailored for women in universities, factories along with doctors and varied audience. This serves the dual purpose of financial inclusion and also enhances our chances of adding new clientele.
Also, since the multidimensional roles and responsibilities that women have influence their priorities, we have customized our systems to have a personal touch which is more than merely being transactional.
Besides, we encourage men to come along with their spouses in meetings.
Talking about the MF industry, we believe that creating marketing campaigns and investment products that resonate with women and address their preferences and specific concerns can attract more women investors.
Also, the industry can look at collaborating with organizations that focus on women's empowerment and financial inclusion to leverage existing networks. Lastly, communicating investment information in a clear and jargon-free manner will foster a better understanding of investment products.
By adopting these strategies, the mutual fund industry can create a more inclusive environment and encourage greater participation from women investors.
