Listen to this article
The MF industry has witnessed tremendous growth over the last 5 years. This was due to a confluence of many favourable factors – market rally, AMFI MF sahi hai campaign etc. How can the industry sustain this growth and ensure that this momentum remains intact?
The growth of the mutual fund industry is related to investors’ experience in the market. The good experience of investors in the equity market has attracted new investors. A segment of them may get disappointed in the future due to underperformance of some funds.
In order to make sure that such investors do not leave the market, it is our responsibility to educate investors on how to build a portfolio and asset allocation. We should apply the learnings from recent years on how individual schemes should be thought of as a part of an asset allocation.
Besides this, it is also important to prioritize financial goal requirements and interactions on the ground level. The industry cannot control the market but it should focus on controlling the controllable to ensure that people with bad experiences consult an advisor/MFD to have a consistently good experience in the market.
What are the main opportunities and challenges for the MF industry in the upcoming year?
The major opportunities are to continuously innovate and maintain the standard of investor service. As far as challenge is concerned, the major challenge would be to manage investors’ expectations on returns failing, which can lead to slow down of inflows.
Despite volatility in the markets, SIP inflows have still been high. Do you see this trend continuing?
Yes, I do see this trend continuing. This is mainly because SIP has become a default savings option for many people in India.
What are your aspirations for 2025? Share with us a few initiatives to strengthen your business.
Our aspirations in 2025 are to explore investment options in the Specialized Investment Fund (SIF). We also want to grow our MF and alternate business and fill gaps in our product basket like multi-asset allocation funds.
Also, I hope that the good performance of our funds will continue in the new year. I am also looking forward to PGIM’s Retirement Readiness Survey, which is the only survey done on retirement by an AMC and is conducted once every two years.
What is your expectation from regulation in 2025?
My expectation from the regulator is that they continue to do what they have done in the recent years. In addition, I’m looking forward to regulations that promote ease of business along with investor protection.
What would be the key message you would like to give to your distribution partners for 2025?
I would tell my distribution partners that you are like a coach to your clients. So, I would encourage them to understand their clients’ goals, aspirations, opportunities and challenges.
