MUTUAL FUNDS

MOSL MT Training

Assignment II (Part 2)

Presentation of Market segmentation
for Mutual funds

Prepared By: Varun Singh Dewal

9/19/2014
Market Segmentation for MF -
Assignment -2
Market Segmentation ??
Set of potential customers
Who have similar needs
Who reference each other when buying
Are alike in the way they:
Perceive value
View products and services
Purchase products and services
9/19/2014
Market Segmentation for MF -
Assignment -2
Why Market Segmentation is Important For
Mutual Funds Selling
Know your Customer (KYC)

Increase Market Share (Big Fish in Small Pond)

Focus whole solution to a narrower set of customer
needs

To understand Market Potential, Available Market, Target
Market and Market Demand of Various Schemes in
different Segments.

9/19/2014
Market Segmentation for MF -
Assignment -2
How Market Can be segmented for
MF Selling in Pune


On Geographic Basis
&
Demographic Basis

9/19/2014
Market Segmentation for MF -
Assignment -2
Segmentation on Geographic Basis
On the Basis of:

City Size or Localities

Density : Urban, Rural, Suburban
9/19/2014
Market Segmentation for MF -
Assignment -2
Segmentation on Demographic
Basis
Age
Occupation
Income
Time Horizon
9/19/2014
Market Segmentation for MF -
Assignment -2
Reason for Geographic
Segmentation
Pune is a IT hub
It is an Educational City
Corporate World
Huge number of HNI Customers
Individuals
Corporate
Large number of Service Class People

9/19/2014
Market Segmentation for MF -
Assignment -2
Reason for Demographic
Segmentation
Epicenter for Service Sector
Know your Client (KYC)
Selecting Target and Potential Market
Right Scheme for Right Client





9/19/2014
Market Segmentation for MF -
Assignment -2
Basket of MF Customers
Retail investors ( Layman Investors)
HNI
9/19/2014
Market Segmentation for MF -
Assignment -2
Segmentation for Retail Investors
On the basis of:

Income
Age
Time Horizon
Segmentation for Retail Investors
Life Cycle
Stage
Financial Needs Ability to Invest
Choice of Investment
products
Childhood
Stage
Taken care of by parents Investment of gifts Long Term
Young
Unmarried
Stage
Intermediate and short term
Limited due to higher
spending
Liquid plans and short term
investments. Some
exposure to equity and
pension products
Young
Married
Stage
Short and intermediate
term. Housing and
insurance needs.
Consumer finance needs
Limited due to higher
spending. Cash flow
requirements are also limited
Medium to Long term
investments. Ability to take
risks
Segmentation for Retail Investors
Young
married with
children
Medium to long term
needs.Children's education.
Holidays and consumer
finance
Limited.Financial planning
needs are highest at this
stage.Disciplined spending
and saving regularly
Medium to Long term
investments. Ability to take
risks.Portfolio of products
for long term growth
Married with
older
children
Medium term needs for
children's education and
marriage. Need for pension
, insurance and medical
cover higher.
Higher saving ratios
recommended. Requirement
for intermittent cash flows
higher
Medium term investmens
with high liquidity needs .
Portfolio of equity, debt and
pension plans
Retirement
stage
Short to medium term
lower saving ratios. High
requirement for regular cash
flows.
Medium term investments .
Risk Appetite low
Preference for liquid and
income generating
products
9/19/2014
Market Segmentation for MF -
Assignment -2
Segmentation For HNI
On the basis of:

Industry Type
Revenue
Time Horizon
9/19/2014
Market Segmentation for MF -
Assignment -2
Segmentation For HNI
Usually HNI go for Wealth Management Services

In MF they opt Aggressive Schemes which is directly
linked to Equity market

Short and Mid Term Investment

High Risk and High Profit


Bring Investments and Return Closer.. Let Us be you Binoculars
and Let us Make MOSt of your Wealth
THANK YOU
Varun Singh Dewal