Listen to this article
Recognizing the need to instill financial discipline early, Lokmanya Mutual Fund Distributor is focusing on small SIPs ranging from Rs. 100 to Rs. 1,000 per month. With a commitment to financial inclusion, Lokmanya is targeting underserved customers, particularly in rural areas where mutual fund penetration remains low.
Currently, Lokmanya has around 18,000 investors, with an AUM of Rs. 100 crore. Notably, 15,000 of these investors are SIP participants. Their monthly SIP book stands at Rs. 2.5 crore, with an average ticket size of Rs. 1,700 per client. The company has also launched a mobile application, LokOne, to extend its reach beyond its physical presence.
We spoke with Sandesh Kumtakar, Head of Mutual Fund at Lokmanya, to understand the company’s vision and strategy.
What is your target audiences?
Our internal research suggests that mutual fund houses primarily cater to the middle-aged population. However, we believe financial literacy and disciplined investing should begin much earlier. That’s why we are focusing on three key segments—students, women, and senior citizens—whose potential in wealth creation remains largely untapped.
What is your strategy to increase your presence in your target audience?
As a subsidiary of Lokmanya Multipurpose Co-op Society, we already have a strong client base in insurance, loans, and fixed deposits. With 214 branches across rural Maharashtra, Goa, and Karnataka, we leverage our existing network to introduce mutual funds as an accessible and viable investment option.
Over the next three years, we aim to serve 1 lakh SIP clients, grow our AUM to Rs. 1,000 crore, and build a monthly SIP book of Rs. 25 crore.
How do you reach out to potential clients in rural areas?
Education and awareness are key. Many individuals in rural areas hesitate to invest in mutual funds due to lack of financial literacy. We address this by conducting two to three awareness drives every month, educating people about the importance of diversifying their investments across different financial products.
Additionally, our strong social media presence and LokOne mobile app allow us to connect with a wider audience beyond our physical branches.
Why focus specifically on students, women, and senior citizens?
These segments are often overlooked in traditional mutual fund distribution. Students benefit from early financial discipline, which prepares them for informed decision-making once they enter the workforce. Women often prioritize savings but lack exposure to market-linked investments like mutual funds. Senior citizens, on the other hand, need better investment avenues to supplement their post-retirement income.
By offering SIPs as low as Rs. 100 to Rs. 1,000 per month, we aim to make mutual funds an accessible and trusted investment option for these groups.
