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    Investor Education - New Initiative

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    Arvind Mittal
    The document discusses challenges in widening the mutual fund investor base in India, especially in tier 2 and 3 cities, and proposes a solution called the "n-fap" program. The key challenges are a stagnant customer base, lack of distribution strength in smaller towns, and lack of investor awareness. The proposed n-fap program aims to address this by having business or graduate students conduct one-on-one financial advisory sessions with individuals to educate them about mutual funds and collect leads. Initial programs saw 400 students educate over 15,000 individuals across 5 locations in 45 days. The n-fap program is presented as a socio-commercial initiative that could help mutual funds widen their customer base cost

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    Investor Education - New Initiative

    Uploaded by

    Arvind Mittal
    20 views15 pages
    The document discusses challenges in widening the mutual fund investor base in India, especially in tier 2 and 3 cities, and proposes a solution called the "n-fap" program. The key challenges are a stagnant customer base, lack of distribution strength in smaller towns, and lack of investor awareness. The proposed n-fap program aims to address this by having business or graduate students conduct one-on-one financial advisory sessions with individuals to educate them about mutual funds and collect leads. Initial programs saw 400 students educate over 15,000 individuals across 5 locations in 45 days. The n-fap program is presented as a socio-commercial initiative that could help mutual funds widen their customer base cost

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    The document discusses challenges in widening the mutual fund investor base in India, especially in tier 2 and 3 cities, and proposes a solution called the "n-fap" program. The key challenges are a stagnant customer base, lack of distribution strength in smaller towns, and lack of investor awareness. The proposed n-fap program aims to address this by having business or graduate students conduct one-on-one financial advisory sessions with individuals to educate them about mutual funds and collect leads. Initial programs saw 400 students educate over 15,000 individuals across 5 locations in 45 days. The n-fap program is presented as a socio-commercial initiative that could help mutual funds widen their customer base cost

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views15 pages

    Investor Education - New Initiative

    Uploaded by

    Arvind Mittal
    The document discusses challenges in widening the mutual fund investor base in India, especially in tier 2 and 3 cities, and proposes a solution called the "n-fap" program. The key challenges are a stagnant customer base, lack of distribution strength in smaller towns, and lack of investor awareness. The proposed n-fap program aims to address this by having business or graduate students conduct one-on-one financial advisory sessions with individuals to educate them about mutual funds and collect leads. Initial programs saw 400 students educate over 15,000 individuals across 5 locations in 45 days. The n-fap program is presented as a socio-commercial initiative that could help mutual funds widen their customer base cost

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    A Socio-Commercial Initiative

    Powered by
    Niveshak Mpowered Pvt. Ltd.
    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

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