A Socio-Commercial Initiative

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Investor Empowerment through
Education
=
Widening MF Investor base
 MF Retail Sales - Challenges
• Customer base is virtually stagnant. More so in tier II & III cities
where the penetration is sparser.
• Absence of distribution strength in smaller towns. Cost
compulsions compound incapacity of MFs to widen reach.
• Despite good work, miles to go for building investor awareness,
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
• 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. Let 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

Or Replicate what Charles Merrill did after great

depression in USA to bring back the investors
to equity
 The way reach is build currently ...
• Tele-calling
• Mass mailing
• On-line or mass e-mailing
• Group meetings or seminars
• Product Literature
• Advertising campaign
• Events and trade show campaigns
 What could be ideal way ..
• Mass communication has a flip side whether
influence is measured immediately or over a
period of time
• Savings and Investment are sensitive and very
personal issues – one to one talk
• Personalized communication delivered
personally is the best way to influence
investment behavior
THE BEST WAY TO PREDICT THE
FUTURE IS TO INVENT IT.
Alan Kay
 Investor Education: one to one
• In a Group meeting the participants may get
information but may not get influenced
• One to one personal meeting on important
and sensitive issues like savings & investment
helps in making lasting impact and influencing
individual behavior
• Niveshak’s Financial Advisory Program (n-fap)
provides the answer
 n-fap
• B-School or Graduation students are roped in as interns
• Undergo 2-3 days class-room training.
• Training comprises of all investment/ savings products, financial
planning, income tax and presentation skills
• Visit individuals randomly within their family/ friendly circle or
arranged by us.
• Take them through Investor Awareness Program, which lays greater
focus on equity as an investment tool
• Collect valuable information on a questionnaire
• Upload the information through web-based program
• Develop individual’s financial profile, suggest an indicative portfolio
 Approaching
Mgmt Institutes Process Flow :
/Colleges for
Interns

Selecting students for

Potential
• telecalling
internship program from B-
Schools & Grad. Colleges future
employees
Imparting 2-3 days training
program on MF, Insurance,
Taxation & Financial Planning
Outcome
Immediate business
Providing the interns with lucid
Potential investor
Investor Awareness
base
Presentation & Questionnaire
Brand building

Presentation by interns, Potential Hot Leads passed on

collection of quality data & to Sales Team for conversion.
leads . Questionnaire filled Rest can be converted in
online. foreseeable future
 Advantages of the program to sponsor
• 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
 Outcome of initial programs
• 400 students roped in across 5
locations
• In a period of 45 days, these students
gave presentations to more than
15,000 individuals (with potential to
save/invest)
 A Socio-commercial initiative ..
…… that would help…
– Mutual Funds/ Insurance Companies etc. to spread reach
and widen customer base at lower cost
– Spread Equity cult or promote modern day savings/
investment instruments
– Young graduates to hone advisory skills and build career
prospect
– Manufacturers of financial products or Brokers or
Distribution houses to develop trained team of foot soldiers
– Colleges to place their students for better career
– Regulators to bring an orderly development of the markets
THANK YOU