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What key investor trends did you observe in 2024?
In 2024, investors showed an optimistic outlook on the equity markets, which led to a decline in the appeal of fixed-income assets like FDs and bonds. HNIs increasingly turned towards equities and mutual funds. Additionally, gold became a more attractive investment option in 2024. By the last quarter of the year, there was a noticeable shift towards foreign equities as well.
What skills will MFDs need to focus on in 2025?
MFDs should focus on improving their understanding of the economy and market trends. They must consistently update their knowledge and work diligently.
They should deal with clients based on their own knowledge and not blindly follow so called market experts. For example, last year, there was a lot of hype around large cap investments but they didn’t perform as expected.
The last few years have been good for the distribution community, thanks to the markets. How can distributors sustain this growth and maintain momentum?
MFDs should understand that the exceptional growth seen in the past three years isn’t something they can expect every year. It's important to consistently build their business in a sustainable way and not focus on quick wins or pushing numbers at the expense of their investors.
They should set realistic expectations for clients, explaining that returns may not mirror the past few years. It's essential to stay proactive and avoid complacency. Many MFDs have become overly comfortable with their increased incomes in recent years but they need to remain focused and continue adding value to their clients.
Direct plan platforms have gained a lot of attention recently, with 40% of SIP accounts being opened through them in the last one year. How are you planning to remain relevant to investors?
India’s investor landscape is diverse and direct plan platforms have brought in new investors. As their investments grow beyond Rs.1 crore, these investors will seek professional guidance, which is where MFDs come in.
I don’t see direct plan platforms as a threat, as long as they don’t offer advisory services. They play a valuable role in expanding the business and we can coexist by focusing on personalised advice and services.
Attracting more women investors is a top priority for the industry. How are you working on acquiring more women clients?
We consistently organise programs and leverage referrals. We encourage investors to involve their spouses in making investment decisions fostering a collaborative approach to financial planning.
Which investor segment do you think is underserved and offers the most potential for growth?
I believe all segments are underserved in India. In general, most people in India remain under-invested. There is tremendous potential for growth across all segments by encouraging better investment habits.
