Digital mode of investment surges at Mirae Asset
Some 4 lakh folios have come through digital mode:
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.”
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?”
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.
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