‘Lack of awareness is a key reason for MFDs not choosing passives’

At Cafemutual Passives Conference (CPC) last year, Team Cafemutual had invited three MFDs who are very active in passive funds.

During this session, Thane MFD Sandeep Baravkar of SRS Financial Services shared with us his experience in distributing passive funds. Here are the key learnings of this session.

Sandeep’s asset distribution

Sandeep said that about 20% of his MF AUM comes from passives. 70% of these passives are index funds while the remaining 30% are ETFs. He believes that the need for a demat account for investing in ETFs makes it a less popular option among investors.

Perception of passives among investors

Sandeep said that many investors depend on MFDs to make their investment choices. However, a few clients especially HNIs want to begin their investing journey through passive funds.

Sandeep also believes that index funds give better returns than many active funds in the long term, which makes it easier for MFDs to talk about these funds.

Making passives more popular

Sandeep also believes that a lot of MFDs lack awareness about passive funds, which is the reason why many MFDs avoid passive funds during asset allocation. He emphasized the importance of events like Cafemutual Passives Conference (CPC) that help MFDs get insights into the world of passives. He said that attending such events can help MFDs develop conviction needed to recommend passives to their clients.

Cafemutual will conduct the 3^rd edition of the Cafemutual Passives Conference (CPC) on 10^th May, 2024 at Taj Santacruz, Mumbai.

You can click on this link to register now and get an opportunity to learn from 20 + expert speakers who will take us through the opportunities in passives.