During the Mutual Fund Distributor’s Summit 2017 held recently at the NISM campus near Mumbai, a panel was set up to discuss the role of investor education in business growth. The panelists were :-

  1. Shri Manish Mehta, National Head of Sales & Distribution Alliances, Kotak Mutual Fund
  2. Shri K S Rao, Vice President, Birla Sunlife Mutual Fund
  3. Shri Premal Pampaliya, Head-L&D, Reliance Mutual Fund
  4. Shri Gaurav Suri, Sr. EVP and Head-Marketing, UTI AMC
  5. Shri Akhil Chaturvedi, National Head-Sales, Motilal Oswal MF

The 5 key takeouts from the panel discussion were:-

  1. Investor Education is a very powerful tool for acquiring new customers and hence for genuine business growth and industry sustenance.
  2. Distributors need to invest in themselves by learning the skills needed to conduct investor education. Depending upon AMCs and Trainers alone would be grossly insufficient.
  3. There is huge business growth potential but unless we harness the power of education we won’t be able to realise this potential
  4. While the popular campaign “Mutual Fund Sahi Hai” will get people positively inclined towards “Mutual Funds” and is necessary but the campaign by itself isn’t sufficient. It needs the support of IFAs who have to act as the foot soldiers to reach out education to the people on the ground
  5. Investor education isn’t a sales presentation. Never expect immediate returns from investor education. Make investor education a way of life. Enjoy the process of educating people and rise in the eyes of those you educate. Over a period of time the education efforts would certainly bear fruit and a large percentage of people whom you educate would approach you for their investment needs.

  • Jayant chaudhari
    Posted at 04:29h, 06 December Reply

    IFAs should be rewarded with reasonable commission.
    He has to do lot of work before and after getting small investment.
    AMC are interested in direct selling.

  • Nitin Chandra
    Posted at 05:44h, 06 December Reply

    As an IFA I am always hungry to get knowledge related to financial planning etc. But unfortunately there isn’t any platform for us to approach, Even AMC’s are not interested in teaching or training IFA’s which is not correct.
    The initiative you all taking is marvellous and steps in right direction.

    Posted at 07:02h, 06 December Reply

    All points r correct. Well said sir.Me too agree with Nitin sir’s comment. AMC require only business from us but they takes lot of time to solve our queries. Some AMCs ignores new IFA .

    Posted at 19:04h, 06 December Reply

    I also agree with Shri. Nitin’s Comment. From higher level, AMCs provide so much knowledge, but AMC’s employees, RM, Branch In charge gets empower by using this knowledge. They don’t pass on this to IFA. They also collect client data and after few years, they start their own MF distribution business. AMCs use as a tool to achieve their target. Also entertain some selected groups and offers attractive brokerage to these groups. Each AMC should take training programme for CFP, WEALTH MANAGER & INVESTMENT ADVISOR – LEVEL 1 and 2. AMCs should empower thexifa community by providing the knowledge.

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