The Great Mutual Fund Business Opportunity

Presenter:
<Parag Kabra>
ICICI Prudential Asset Management Company limited.

Private&confidential(For distributors only)

MF: Industry Trends

Rapid growth in the MF Industry due to increasing MF

awareness
MF Market AUM

INR Bn

= 46%
R
CAG

Source: AMFI
 India: Opportunities for AMC
Growth in personal financial assets coupled with low penetration
of mutual funds offers a huge opportunity to convert cash &
deposits into MFs

Source: Indian Asset Management:Achieving Broad based Growth, Mckinsey & Company,Inc.
Low MF Penetration

Growing economy and low penetration of MFs offers a

significant opportunity for AMC business in India

AUM % to GDP

Source: RBI report & Mc Kinsey

report
 Sustained economic growth
& rising income levels
Wealth generation is driven by strong economic and market
capitalization growth
Strong Economy & Rising Growth in Household Financial
Market Assets
INR Bn
INR Tn YoY incremental flows
GR=
CA 12%

G R=
C A
14%
Strong
Economic
(GDP) Growth

INR Tn
=
R %
+
G
CA 43

Growing
Market
Capitalization
Source: RBI reports
Increasing Working Population

2006 2026

Source: Census of India

 Low Penetration of Mutual Funds
in Household Savings

Distribution of Household Financial

Assets

As on 2006-2007

Share&Debentures 3%
Others 17%

Cash&Deposit
41% PF &Pension
19%

Others 17%
MF 4%
Source:RBI Report
Where is the opportunity?
 Where is the Opportunity

l Addition of nearly 9 million first time retail customers

expected in the next 5 years
l AMC growth of retail segment is expected at a CAGR between
35% to 42% in next 5 years

l Large untapped Client Segment

-32% saving rate-one of the highest rate worldwide

- Retail penetration is as low as 4%
- Huge Potential in the semi urban & rural markets
l Wide range of products across various asset classes
-Flexibility to offer schemes at every stage in an individual’s life

l High Scope for Value addition to Clients to Increase Client

Loyalty

Source:”INDIAN ASSET MANAGEMENT :ACHIEVING BROAD –BASED GROWTH”Mckinsey&Company

Mutual Funds Sounds interesting
But……

Does this help me

to increase my earning?
 MF Earnings potential

Simple ! You earn 3.65 times more

Comparison of earning of advisors for Rs 1 lakh invested for 6 yrs

DISCLAIMER:The Brokerage/Incentive structure mentioned hereinabove is solely payable to AMFI certified agents –IFAs of ICICI prudential
Asset Management Company LTD(AMC.)and can be changed by the AMC at its discretion without any prior intimation or notification.The
AMC shall not be responsible for any losses incurred by any one due to change in the Brokerage/incentive structure.The AMC can at its
sole discretion also change the cities falling under various classes.All agents /Distributors should abide by the code of conduct and
rules/regulations laid down by SEBI and AMFI .Also ,it is specifically mentioned that the Agents/Distributors will neither pass on or rebate
Brokerage ?incentive back to Investors nor tempt them with rebate /gifts.The AMC will take disciplinary action against any
Agent/Distributor who is found violating the rules ,regulations and Code of Conduct
 Beauty of trail brokerage

Trail is the route to long term regular income

ØSurprised ! Fact is you earn 6.90 lac instead of 1.80 lac i.e. almost 300% more

ØIf one starts his Career at age 23 and starts with 20 lac of equity assets which grows by 10%
every year then at retirement age of 60 he would be drawing 1 cr. Trail commission
every year.
DISCLAIMER:The Brokerage/Incentive structure mentioned hereinabove is solely payable to AMFI certified agents –IFAs of ICICI prudential
Asset Management Company LTD(AMC.)and can be changed by the AMC at its discretion without any prior intimation or notification.The
AMC shall not be responsible for any losses incurred by any one due to change in the Brokerage/incentive structure.The AMC can at its
sole discretion also change the cities falling under various classes.All agents /Distributors should abide by the code of conduct and
rules/regulations laid down by SEBI and AMFI .Also ,it is specifically mentioned that the Agents/Distributors will neither pass on or rebate
Brokerage ?incentive back to Investors nor tempt them with rebate /gifts.The AMC will take disciplinary action against any
Agent/Distributor who is found violating the rules ,regulations and Code of Conduct
Why tie-up with us?
Successful AMC Business

Wide geographic footprint

Large & diversified customer base

Products with strong customer proposition

Established distribution relationships

Strong fund performance with risk controls

Quality people & systems with strong brand and service

Economies of scale with strong risk management framework

Managing assets of Rs.59,573.08 Cr +

Presence in more than 240 locations
SOURCE:ICICIPruAMC websites
Partner Support …..

l Dedicated Relationship Manager

l Daily Market SMS.

l Bandhan – Agent Monthly News Letter.

l Regular meetings & Product Updates.

l Rewards and Recognizations

l Super Starter

l Chairman Circle
 BE A SUPER STARTER

Procure any ICICI Prudential Mutual Fund Schemes

5 Purchase Application
OR
Investments of Rs.1 lakh

Within One Month of Your Empanelment

&

Win a Super Starter Advisor Memento

DISCLAIMER:The Brokerage/Incentive structure mentioned hereinabove is solely payable to AMFI certified agents –IFAs of ICICI prudential Asset
Management Company LTD(AMC.)and can be changed by the AMC at its discretion without any prior intimation or notification.The AMC shall not
be responsible for any losses incurred by any one due to change in the Brokerage/incentive structure.The AMC can at its sole discretion also
change the cities falling under various classes.All agents /Distributors should abide by the code of conduct and rules/regulations laid down by
SEBI and AMFI .Also ,it is specifically mentioned that the Agents/Distributors will neither pass on or rebate Brokerage ?incentive back to Investors
nor tempt them with rebate /gifts.The AMC will take disciplinary action against any Agent/Distributor who is found violating the rules ,regulations
and Code of Conduct
 Chairman’s Circle - Outline

ICICI Prudential Chairman Circle

A special Programme for

most Valued Partners like
you

Opportunity to win

Gift Vouchers Gift Hampers

Trips at some exotic
locations world over
For terms and conditions kindly refer to
icicipruchairmancircle .com
WHAT NEXT FROM HERE

l Enroll for free AMFI training.

l Attend ICICI Sponsored AMFI training

l Appear for AMFI exam

l Get your ARN Code

l Empanel with ICICI Prudential Asset Management Co.

You are a Complete

Financial Consultant
Risk Factors
For terms and conditions kindly refer to icicipruchairmancircle .com
THANK YOU