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As 2023 comes to a close, it is that time of the year to assess and evaluate what the closing year has been like. After all, the trends in the closing year set the tone for the new year.
To identify investor trends that shaped 2023, we spoke to a few MFDs who shared with us not only what investors sought in 2023 but also how they guided them.
Amalaraj Marian of AMFinserve Financial Services, Nashik, Maharashtra
Key trend(s) observed - YouTube and other advertisements influenced investor interest in products.
Approach adopted - Firstly, I never discourage investors from accessing information digitally, instead, I encourage them to discuss before taking any financial call. Next, I enquire about the advertisement that they see and explain the featured product from the basics. I also take them through the pros and cons of the featured product in their investment portfolio. Such s thorough discussion helps them make informed decisions.
Celso Fernandes of Nave Marg Financial Consultant, Margao, Goa
Key trend(s) observed - Parents are keen to teach children about savings.
Approach adopted - I conducted exclusive sessions with parents on the need to impart financial literacy to children. I also spoke about the consequences of not talking about finances with them and suggested investing on their behalf as children themselves show keen interest when they see their name on the account statement.
Pankaj Ladha, Kota, Rajasthan
Key trend(s) observed - IPO (Initial Public Offering) gained new popularity.
Approach adopted - At first, I understood the objective of investors i.e. do they desire to be IPO investors or intend to generate wealth over the long term? For the first type, I suggested to avail an overdraft (OD) facility against mutual funds. As soon as an IPO was announced, they utilized the needed OD limit (i.e. amount intended to be invested) and parked in ASBA (Application Supported by Blocked Amount) account. And, as soon as they received an allotment, they exited at a higher price and booked returns. This process helped investors to invest across IPOs.
Rahul Jain of GR Finvisors, Udaipur, Rajasthan
Key trend(s) observed - Rising interest in small cap, mid cap and sectoral funds. Also, the keenness of NRIs (Non-Resident Indians) to invest in India, one of the fastest-growing economies.
Approach adopted – When an investor comes to me with a preconceived notion to invest in mid cap, small cap or sectoral fund to get higher returns, I tell him to undergo risk assessment questionnaire again to confirm that his decision is in line with his risk-taking ability. In most cases, their risk appetite does not allow them to take such calls. This is when they realize that they should focus on achieving long term financial goals.
Lastly, as NRIs were not sure about how to participate in India’s growth story, I explained to them how they can invest in India through equity funds.
