Over the past one year since you became Vice Chairman AMFI, what has changed for the industry?
A lot has changed for the industry. We have seen growth in the previous cycles also. It was due to the launch of NFOs and market rally. This growth was not sustainable.
This time the growth is due to shift in investor behaviour. Earlier, investors used to redeem their investments whenever the market declined. Now, we have been witnessing inflows even during market corrections.
All this is because of focus of the industry in broadening the customer base. This includes SEBI’s push to reach out to investors in B15 cities, IAPs and efforts of distributors to encourage their clients to stay put for the long term.
In fact, the MF industry has 1.4 crore SIP accounts of which over 50% of accounts are active for over five years. Currently, the industry is getting monthly inflows of Rs4,500 crore through SIPs.
In my view, this growth is sustainable for the MF industry.
For the first time, AMFI is hosting an event. What is the rationale behind organising this event?
We aim to create a forum for the industry where participants can share thoughts, exchange ideas and put a roadmap for the future growth.
While there are other such events also, we feel as an industry body, it is our responsibility to create a platform for the industry.
We have invited a galaxy of speakers to keep the content fresh and engaging.
In addition, we expect active participation from distributors as they have a major role to play in broadening the customer base.
What is the theme of the event and why have you chosen it?
The theme of the event is ‘Vision 2025’. We aim to lay out a roadmap for the growth of the industry.
We believe there are many opportunities for the industry to grow from here. There are many new initiatives such as digital payment, simplification of KYC and instant redemption facility in liquid funds that have contributed to the increasing popularity of mutual funds. However, the communication should not be left to AMCs alone.
The idea of creating this platform is to know how we can take the industry to the next stage and grow further. This event is not about reading out encouraging growth statistics, but to understand what needs to be done to accelerate this momentum and achieve inclusive growth.
You invited the regulator to make important announcements. What are you looking forward to hear from the regulator?
We would like to understand what kind of mutual fund industry would the market regulator like to have in 2025. Simply put, how an ideal mutual fund industry would be by 2025.
To grow in a responsible way, we want to understand SEBI’s vision and expectation from the industry.
We are not looking for any specific announcements for the industry. It is time to think about the big picture.
What can distributors look forward to from the event?
Advisors have a very important role to play in the growth of the MF industry. There is no doubt the industry has achieved a healthy growth due to the efforts of distribution partners.
It is impossible for the industry to grow by leveraging the direct route. AMCs grow and distributors suffer – that cannot happen. The MF industry can grow on a sustainable basis only if our distribution partners continue to grow.
AMFI believes that investors need handholding of advisors to create wealth.
Even after 26 years of experience in the mutual fund industry, I do not have the bandwidth to manage my investments on my own. I have an advisor who manages my personal finance. Hence, I know what value addition an advisor can bring to the table.
Any plan that we create for the growth of industry is going to have distributors as an integral part. We would like to have their active participation in the event as we want their inputs and listen to their concerns.
The event has a great line-up of speakers and topics. Which sessions are you personally keen about?
Among key speakers are SEBI Chief Ajay Tyagi, Anil Ambani, Chairman Reliance Group and A.P. Hota, of National Payment Corporation of India. They will give us direction on how we can increase the penetration of mutual funds.
But my personal favourite is a panel discussion of CEOs on ‘Broadening the Customer Base for Mutual Funds’. This topic is close to my heart.
Many people in India who have money to invest do not invest in mutual funds. Once they find out the benefits of investing in mutual funds, they will definitely invest their money in mutual funds.
What were the challenges for AMFI with regard to the event?
The biggest challenge for AMFI is to keep the agenda fresh and relevant to the theme of the event. We are fortunate to have a good line-up of speakers to do justice to the topics. We hope that audience will walk out with insightful takeaways.
There are a couple of outside experts who will address the event. What can industry officials look forward to from these speakers?
We are at a stage where things are changing rapidly.
For instance, the world has been witnessing technological advancement every day. We have therefore invited experts who can guide us as to how leveraging technology can help mutual fund industry increase its share of the pie.
