The generation of Investor Awareness and the widespread proliferation of Mutual Funds as a product outside of the Top 15 (T-15) cities is a key priority for the industry as a whole.
In fact, SEBI rules demand that MF's set aside 2 bps, or 0.02 per cent of their net asset value per annum for investor education and other awareness initiatives. This works out to close to Rs. 300 Crores as on date.
An elite panel comprising of G. Pradeepkumar, CEO of Union KBC AMC, Jaideep Bhattacharya of Top3choice.com and Shyam Sunder, MD of PeakAlpha Investment Services assembled during the BW Mutual Fund India Summit to discuss the actual impact of Investor Awareness initiatives, and pool in ideas on how IFA's can use Investor Awareness as a route to building more robust businesses. Aashish P. Sommaiyaa, MD of MotilalOswal AMC returned to moderate this panel.
Pradeepkumar of Union KBC rightly observed that in spite of PSU bank promoted AMC's potentially sitting on a gold mine of customers in the form of the captive bases of their sponsoring banks, there is only one PSU bank owned AMC (SBI Mutual Fund) that has really achieved any significant scale. He mentioned that in order to work with a PSU Bank promoted AMC, one needs immense patience and a long term outlook.
