Investor Education Initiative

Investor Empowerment through Education = Widening MF Investor base

MF Retail Sales - Challenges

Customer base virtually stagnant. More so in tier II & III cities where the penetration is sparser. Absence of distribution strength in smaller towns. Cost compulsions compound difficulties of MFs to widen reach. Miles to go for building investor awareness, despite good work, which is essential for creating own base of investors IFAs/Distributors apathy to sell MF products due to reduced commission further dampened penetration in retail segment. Industry Regulator encouraging development of Retail segment through education Higher marketing cost demands cost effective ways to market/ proliferate/ spread the MF products

The Real Issues

Lower commission is not an issue. Rather smaller customer base is. Can it be a volume game? Investor apathy is not due to fear or negative views but rather due to lack of awareness/ knowledge about MF

Central Challenge
Communicating the benefits of MF effectively remains the central challenge
MFs to take public leadership role with the Governments, Regulators, the media and Industry Association to inform & educate all parties about the role of mutual funds in the investment process is very much desired
Global Fund Distribution Best Practices, Key Trends, & Operations Models to Grow Sales Worldwide by Strategic Insight

The way awareness is build currently

Product Literature On-line or mass e-mailing Mass mailing Tele-calling Advertising campaign Events and trade show campaigns Investor Education Program
Group meetings / seminars One to one meeting/presentation Small films

Investor Education
Detailing

Group Meetings
Meeting with a group of investors/ potential investors by the officials of the AMC including the fund managers Group of investors/ potential investors to be addressed by prominent financial planning & investment / tax experts The potential investors are selected/invited randomly.

Group Meetings ways to go

Hold in residential societies in large cities or in colonies in smaller cities Convene in some hotels/ halls Conduct in office complexes during lunch time

One to One Meeting

One to one meeting with the investors / potential investors, where the influencing the behaviour could be highest It is a unique concept which can generate awareness as well as lead to higher rate of conversion

One to One Meetings

Methodology

One to One Meetings

B-School or Graduation students are roped in as interns Undergo 3 - 5 days class-room training. Training comprises of all investment/ savings products, financial planning, income tax and presentation skills Visit individuals randomly Take them through Investor Awareness Program, which lays greater focus on equity as an investment tool Collect valuable information Develop individuals financial profile, suggest an indicative portfolio

Approaching Mgmt Institutes /Colleges for Interns

Process Flow :

Selecting students for internship program from BSchools & Grad. Colleges

telecalling

Imparting 2-3 days training program on MF, Insurance, Taxation & Financial Planning Providing the interns with lucid Investor Awareness Presentation & Questionnaire Presentation by interns, collection of quality data & leads . Outcome Immediate business Potential investor base Brand building Potential Hot Leads passed on to Sales Team for conversion. Rest can be converted in foreseeable future

Advantages
Building/ strengthening Brand awareness and recall Meet the target of Investor Education Study Investor Behavior about a brand or product Enhance retail participation Generate pull effect Active marketing Higher success rate in selling efforts Multi product selling by multi product manufacturer Generate potential sales team of future

Broad outcome
Spread reach and widen customer base at lower cost Spread Equity cult or modern day investment options Impart advisory skills to young graduates Develop trained team of foot soldiers Regulators to bring an orderly development of the markets

Training & Development Resources

The entire process is handled by experts who are passionate about investor education A panel of expert trainers headed by Mr. Yogesh Kushte with around 15 years experience in financial services and training Course ware and material procured from experts

THANK YOU