Online Mutual Fund : Untapped Market in India
Mutual fund industry has evolved over the years, growing and maturing with every development that is taking place. Given the current scenario of market volatility
and uncertainty in India, these are challenging times for the mutual fund industry, where the investor perceives investments in the capital market to be risky and unsafe, and hesitates to channelize his savings into mutual fund products.
In such a scenario, the role of the distributor or the financial adviser assumes a lot of importance, as he is the touch point for the investor. It rests upon the advisor or the distributor to encourage the investor to purchase mutual fund products and help achieve his financial goals over a fixed period of time. It is important that the investor understands that mutual funds are not just investment products, but a solution to their financial requirements. It is critical that the distributor undertakes measures and initiatives to educate the investor and increase the level of awareness. Considering the critical role played by the distributor, it is of immense importance that the distributor fraternity is adequately trained and regulated so that the mutual fund product is sold for the right purpose and adequate time period.
Clearly, technology has the potential to increase the depth of penetration and strengthen the distribution network to reach beyond the Tier 1 cities. It is only a matter of time when the asset management companies will realise the need to imbibe the various emerging technologies and leverage the social media platform.
As the mutual fund industry matures, it becomes increasingly challenging to identify the catalysts for growth and implement new measures to achieve profitability. For instance, the mutual fund industry is now looking towards leveraging the pension platform to spur growth of the industry. Also, asset managers are hunting for solutions in the strategy and approach followed by other industries and sectors. This report by PwC titled ‘Unearthing the growth potential
The Indian population is largely under-banked with a very low level of financial inclusion leaving room for further penetration.
Comparing India to other countries, we realise how financial inclusion is yet to be achieved (see Figure 4). While the UK and the US have 25.5 and 35.7 branches per 0.1 million adults and developing countries such as Brazil have 13.8 branches per 0.1 million adults, India is at a staggeringly low figure of 10.9 branches per 0.1 million adults.
Digital strategy enabling sales channels With mobiles or tablets
The rapid growth of usage of mobiles and tablets offers an opportunity to empower sales channels to reach markets with less penetration. This can be especially effective for value added services such as Portfolio Management Services. Enabling salespersons with mobiles or tablets takes the POS to the customer allowing for faster business deals. Our Customer Relationship Executive (Salespersons) are able to capture business critical information, store it in a central secure place (the cloud) and can access it from their devices. They can complete the deal using a tablet, starting from educating customers about products, capturing information and signatures as well.
Increased accessibility to mobile phones and the internet in Tier II and Tier III cities can be used as a platform to educate consumers regarding products and its benefits. Mobiles powered with the internet can be used as an important information source for unit holders and prospective investors. Mobile or tablet applications can act as a touch point for customers where they can perform transactions.
The usage of mobiles or tablets by sales channels and has far reaching effects and can be a facilitator to break down un-penetrated markets.
I require a funding of USD 400K and i would provide equity for the same.