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Market Kya Lagta Hai
Speaker: Sailesh Raj Bhan, CIO-Equity Investments, Nippon India MF
- In the last three years, every equity category has given strong returns
- Fund flows are over shadowing near term fundamentals
- India's contribution to the global market cap is at an all-time high
- Midcap indices are trading at 35X
- Valuations are essential over the long term as investors pay a huge price for overpaying
- Today, the speculative value of a company is much higher than its intrinsic value
- Near term earnings are weak
- Investors should look for sensible diversification
- Investors may not listen to advisors currently but they may value their advice over market cycles
- Some categories are expected to make losses
- Large caps have the best risk - reward ratio currently
- Only look for investment with over three years horizon
- This is the time to lower risk and not add risk
Thematic Investing - Asset gathering or real wealth creation
Speakers:
- Gaurav Kochar, Fund Manager - Equity, Mirae Asset MF
- Siddhant Chhabria, Research Analyst and Fund Manager, Mirae Asset MF
- Vrijesh Kasera, Fund Manager - Equity, Mirae Asset MF
Moderated by: Nishant Patnaik, Associate Editor, Cafemutual
- Most of the thematic scheme are less than five years old
- Investors relate to thematic funds more during bull runs
- It is important to see whether the benchmark of a theme is true to the nature of the fund
- Over a long 10-year cycle, most of the themes beat their benchmark
- It is important to see the medium term outlook, earnings growth potential, valuation of a theme and market cycle before investing in it
- BFSI sector has underperformed in the current market cycle but it has good fundamentals and reasonable valuation
- Pharma sector still has low penetration
- Consumption pattern shows that discretionary expenses are increasing
- Young people have more aspirations and prioritize their needs
- Consumption sector is more resilient to market cycles
The road ahead for the MF industry
Speakers:
- Kailash Kulkarni, CEO, HSBC MF
- Mohit Bhatia, CEO, BOI MF
- Navneet Munot, MD and CEO, HDFC MF
- Swarup Mohanty, Vice Chairman and CEO, Mirae Asset MF
Moderated by: Prem Khatri, Founder and CEO, Cafemutual
- Thematic funds should be selected only if they comply with the investor's portfolio
- In order for the MF industry AUM to go beyond Rs. 100 lakh crore, it should focus on new investor addition
- Retail investors are more mature now
- More people believe that MF distribution can be a profitable business
- A sustainable way for AMCs to grow is to boost the growth of distribution
- The introduction to new asset class shows the proactiveness of the regulator
- MFDs should build trust of investors and prioritize investor needs
Next wave of tech advancements impacting asset management
Speaker: Vignesh Kumaran, Head-Products- Kfintech
- India is fifth largest in terms of UHNI population
- Digital has now become mainstream in distribution business
- MFDs should look at a platform that allows them to do financial planning, compute revenue and help analyze schemes
- KFintech’s IRIS can reduce manual effort and automate workflows
The future of distribution: direct vs intermediated
Speakers:
- Amit Arora, Co-head - Retail Sales, Bandhan MF
- Nikhil Kothari, Director, Etica Wealth
- Neelesh Verma, Product Head and AVP - MF and NPS, Zerodha Capital MF
- Vishal Dhawan, Co-founder, Plan Ahead Wealth Advisors
Moderated by: Nishant Patnaik, Associate Editor, Cafemutual
- Investors are willing to learn about investment and take their own decisions
- Distributors are important to nudge certain investors to move their investment in the right fund
- The share of MFDs in equity AUM is increasing
- 30% new clients are coming from fintech platforms
- They are reaching avenues where distributors are unable to reach
- Every channel is playing its own role
- MFD and RIAs are key influencers of investor behaviour who can boost good investment practices
New Asset Class: Opportunities and challenges
Speakers:
- Akhil Chaturvedi, Executive director and CBO, MOAMC
- Gaurab Parija, Head - Sales and Marketing, Bandhan MF
- Ruchi Pandey, CEO, Old Bridge MF
- Saugata Chatterjee, CBO - Sales and Distribution, Nippon India MF
Moderated by: Hemant Rustagi, Founder - Wiseinvest
- The new Asset Class will provide investors a new product that aligns with their risk appetite
- NAC will move HNIs from Rs. 2 lakh threshold to Rs. 10 lakh
- If NAC gets to launch PMS and AIF like products, it can democratize investment across products
- It can also help PMS and AIF investors diversify their investment at a smaller ticket size
- Any product that gives client service will find success
- Eventually, AIF and PMS can also increase their minimum investment amount due to NAC
- Family offices will also get good opportunities for investment due to the well regulated nature of NAC
- NISM certification will have to change based on NAC
- MFDs will also have to upgrade themselves which will have to be aided by AMCs as well
- NAC will give opportunities to MFDs to learn about new products and venture into them
- If NAC doesn't get taxed for portfolio churn, it will be more tax efficient than PMS and AIF
- Minimum ticket size of NAC is an entry barrier. If it is a well-regulated product, it will give benefits of alternative investment on a mutual fund framework.
Technological disruption in distribution
Speakers:
- Amit Basu, Founder, Director and CEO, Symphonia Wealth
- Girish Ajgaonkar, COO, Happyness Factory
- Shirish Patel, CEO, Prudent Corporate Advisory
Moderated by: Hyderabad MFD Ravi Kiran Monigari
- MFDs can use AI to build portfolio by studying their behaviour using predictive analysis
- AI can be used to write e-mails to clients and build emotional connection with the client
- It can also help MFDs spend more time on client acquisition
- MFDs need to evaluate their needs before deciding to use AI tools.
The Health Wealth Cycle
Speaker: Prashant Desai, Author and Longevity Biohacker
- Wealth increases with longer life
- People in India are living 30 years more than two generations ago
- Heart attack is the most prominent reason for death in India
- Sleep is the most useful factor necessary for a healthy life
- Lack of healthy sleep can lead to Parkinson's or Alzheimer's disease
- Exercise slows down loss of muscle mass
Regulatory Landscape and Future Directions
Speakers:
- Dhirendra Kumar, CEO, Value Research
- D P Singh, Deputy MD and Joint CEO, SBI MF
- Monika Halan, Writer and Author
- Venkat N Chalasani, Chief Executive, AMFI
Moderated by: Prem Khatri, Founder and CEO, Cafemutual
- Regulations has made investors feel safe to invest in mutual funds
- AMFI is planning to have a distributor recognition program where successful MFDs will be awarded based on quantitative parameters
- Fee transparency and product framework are two areas where the regulator's efforts have changed the game for mutual fund
- Upfront commissions have stopped misselling of mutual funds
- Eradication of NFO charges and entry load has been a turning point for the MF industry
- The present regulations believes the KYC onboarding process is still inconsistent
- MFDs should look to develop their SIP books
- Limit of PAN exempted folios should be increased to 2 lakh per annum
- Adoption of the latest technology is a must for MFDs
