Dig­i­tal mode of in­vest­ment surges at Mi­rae As­set

Some 4 lakh fo­lios have come through dig­i­tal mode:

Banking Frontiers - - Mutual Funds - Me­hul@bank­ingfron­tiers.com

The year 2017-18 has been a land­mark year for Mi­rae As­set Global In­vest­ments (In­dia). The com­pany saw its AUM grow­ing more than 100%, from `8300 crore in March 2017 to close to `17,350 crore as of March 2018 with very good mar­ket share growth across all its funds. The com­pany has been able not only to es­tab­lish its 2 flag­ship prod­ucts (Mi­rae As­set In­dia Eq­uity Fund and Mi­rae As­set Emerg­ing Bluechip Fund), but it has also grown the AUMs of its other eq­uity prod­ucts - Mi­rae As­set Hy­brid Eq­uity Fund, Mi­rae As­set Tax Saver Fund and its liq­uid fund Mi­rae As­set Cash Man­age­ment Fund.

Ac­cord­ing to Swarup Mo­hanty, CEO, the com­pany has launched 2 new debt prod­ucts in the last one year – Mi­rae As­set Dy­namic Bond Fund and Mi­rae As­set Short Term Fund and it is now strength­en­ing its debt side of the busi­ness.

NOW NEXT PHASE

With Mi­rae As­set now stand­ing in the 10th year of fund man­age­ment in In­dia, its story is be­gin­ning to take a strong shape. It has com­pleted the first phase of its busi­ness in In­dia where it has added track record to its funds and has been able to set up a sus­tain­able busi­ness model. Says Mo­hanty: “We now em­bark upon phase two of our busi­ness where we would want to grad­u­ate from be­ing known as an eq­uity bi­ased fund house to be­com­ing a com­plete fund house, demon­strat­ing strength in all as­set classes - eq­uity, debt and real es­tate.”

DIG­I­TAL STRAT­EGY

Mi­rae As­set is ex­pand­ing its dig­i­tal pres­ence in In­dia. Its web­site at­tracts very good traffic and pro­vides seam­less way of trans­act­ing on­line for in­vestors. For dis­trib­u­tors, the com­pany has launched Mi­rae As­set D.I.T. (Dis­trib­u­tor Ini­ti­ated Trans­ac­tion) in Novem­ber 2017. Through this plat­form, a dis­trib­u­tor can ini­ti­ate trans­ac­tions on be­half of in­vestors. The com­pany has also tied up with MF Util­ity in Fe­bru­ary 2018 to give fur­ther fil­lip to its dig­i­tal jour­ney and to pro­vide its dis­trib­u­tors a seam­less trans­ac­tion path. The com­pany’s schemes are al­ready avail­able on NSE and BSE plat­forms.

Elab­o­rates Mo­hanty: “It is our en­deavor to pro­vide mul­ti­ple av­enues for our part­ners and in­vestors to in­vest in a seam­less man­ner. These ini­tia­tives are on our web­site and will help us serve the re­quire­ments for our part­ners and in­vestors across the coun­try. We must sig­nif­i­cantly add to this and strengthen our on­line of­fer­ing. We are happy to share that more than 1 lakh SIPs have been reg­is­tered on­line. Our AMC has over 9 lakh in­vestor fo­lios, out of which over 4 lakh fo­lios have come through the dig­i­tal mode, which in­clude BSE, NSE, MFU, Mi­rae web­site and its on­line chan­nel part­ners.”

MATCH­ING RISK PRO­FILE

The key to in­vest­ing al­ways lies in match­ing one’s own risk pro­file to that of the in­vest­ing in­stru­ment and it is no different while choos­ing a mu­tual fund scheme. Says Mo­hanty: “We al­ways say in the much-dis­cussed part of mu­tual fund ad­ver­tise­ment: ‘Read of­fer Doc­u­ment care­fully’ and there is a rea­son for that, which is far be­yond the reg­u­la­tory re­quire­ment. If one reads it, then one would know the ob­jec­tives of the scheme and whether they match the in­vest­ment ob­jec­tive of the in­vestor. The ques­tion is how many peo­ple ac­tu­ally know the real in­vest­ment ob­jec­tive of the scheme?”

ROBO AD­VI­SORY

Mu­tual fund dis­tri­bu­tion mod­els are likely to see dis­rup­tions in the next 2-3 years. Re­cent sur­veys re­veal that fi­nan­cial lit­er­acy is still very low in In­dia and in­vestors need to be ed­u­cated on how they should in­vest in var­i­ous fi­nan­cial prod­ucts.

In­vestors need to be more ed­u­cated in risk pro­fil­ing and im­por­tance of risk ad­justed re­turns (not ab­so­lute re­turns). Mo­hanty says in­vestors want to talk to ad­vi­sors to take their opin­ion on in­vest­ing and they do need a lot of hand hold­ing. “Goal-based in­vest­ing or fi­nan­cial plan­ning has just started in In­dia. In this en­vi­ron­ment the role of the fi­nan­cial in­ter­me­di­ary be­comes ex­tremely crit­i­cal. I be­lieve e-com­merce and robo ad­vi­sory will help en­large the pie for mu­tual funds and pro­vide plat­form for ease of trans­ac­tions for in­formed in­vestors, who know where and how to in­vest,” says he.

GOAL SIP

The MF in­dus­try’s monthly SIP book has crossed `7000 crore. Cur­rently, a boom is seen in SIP in­vestors. Mo­hanty says the com­pany has crossed 9 lakh fo­lios with more than 5 lakh SIP in­vestors. “Our SIP book has grown to `250 crore monthly, which we be­lieve is a sig­nif­i­cant milestone for our AMC. I do not think many of them have in­vested with any par­tic­u­lar goal in mind, so it would be dif­fi­cult to judge whether the hold­ing pe­riod is suf­fi­cient or not. We at Mi­rae As­set have started ‘Goal SIP’, through which in­vestors can make in­vest­ments based on a par­tic­u­lar goal and track how far they are from achiev­ing their goals,” he adds.

Swarup Mo­hanty is driv­ing Mi­rae into phase two where the com­pany would grad­u­ate from be­ing known as eq­uity bi­ased fund house to be­com­ing a com­plete fund house

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