|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OUTLOOK MONEY'S MUTUAL FUND ROUNDTABLE IN MUMBAI HAS EXPERTS DISCUSSING WHAT LIES AHEAD FOR INVESTORS
|
|
|
|
|
|
|
|
Clifford Alvares: How will the mutual fund (MF) industry manage growth in this no-load era?
Nimesh Shah: After 2-3 months of hiccups, it's business as usual. The new regime has resulted in a change in the mindset of both the distributors and asset management companies (AMCs). The quality of advice will be the key now. If distributors give good advice, they can charge the customers in a transparent way. A. Balasubramanian: For a few months, there was a debate on how the business model could be changed. MFs channelise long-term savings and this industry has delivered for many years. Ultimately, investing is all about the goal. The industry is at an inflection point and trying to find the exact solution to its business model. People should look at MFs across all products— not only debt, but also equity—and the solution it provides for long-term savings.
Sanjay Sinha: Earlier, the distributor and the fund house were in a relationship to distribute MFs. Now, that equation has changed. Distributors now go straight to the client with the products. The proposed advisory fees may not happen overnight. But that is where the future lies. You also have to give the distributor a rea-
|
sonable set of skills which gives him the confidence to be a proper advisor to the client. Also, there has to be a move from a broader, episode-based selling to more of asset allocation-based investments into MFs. Once that happens, the perception that investments in MFs are of short-term nature will be overcome. Saurabh Nanavati: I don't think that in the last one year we have added more than a million folios as an industry as a whole. You compare that with 50 million policies being sold by the life insurance industry—and insurance is supposed to be more of a hardsell compared to MFs which is now completely loaded in the retail investor's favour. So, despite low charges and transparency, you aren't able to sell that much. In contrast, in the insurance industry, which provides 30-40 per cent commission, you have managed to sell 50 million folios. The contrast is stark. The question is, is the distributor really selling MF products or is he basically selling products which are giving him a higher commission? In a year where there have been phenomenal regulatory changes—which are completely in favour of the retail investor—you have just managed to sell Rs 595 crore of equity funds. How do we improve financial literacy? How do we get the investors to
|
TRANSITION TALK: (R-L) Sanjay Sinha, chief executive officer, L&T Mutual Fund; Saurabh Nanavati, chief executive officer, Religare Mutual Fund; Rajan Ghotgalkar, managing director, Principal Pnb Mutual Fund; Kundan Kishore, senior correspondent, Outlook Money; Clifford Alvares, senior editor, Outlook Money (moderator); Nimesh Shah, managing director and chief executive officer, ICICI Prudential Mutual Fund; A. Balasubramanian, chief executive officer, Birla Sun Life Mutual Fund; and Udayan Ray, editor, Outlook Money
|
|
|
|
|
|
|
|
|
|
|
|