Trends
Name: Roopesh
Kumar Yadav
Age: 37
Location: Meerut
Investment Rationale:
Creating an adequate
retirement kitty, as he
feels his provident fund is
not capable of yielding the
desired performance.
Photo: deepak
cities back these views. “I manage to convert
more enquiries into actual investments these
days—it has gone up 25-30 per cent since
demonetisation,” informs Sachin Uddhav
Chumble, partner, WealthGuru Financial
Services, a Nashik-based mutual fund
distribution firm. “Now that the cash lying in
their house is parked in their bank accounts,
they want the money to earn returns.” While
Sunil
Subramaniam
CEO, Sundaram AMC
People in smaller cities
typically rely on avenues
like real estate and gold,
where the horizon is one
year or more. They are
attuned to longer-tenured
instruments.
52
Manish Mehta
National Head -
Sales & Distribution Alliances,
Kotak Mutual Fund
Digitalisation can be a
key driver for distributors
in smaller cities to
improve coverage and
productivity.
Outlook Money December 2017 www.outlookmoney.com
acknowledging the role of demonetisation,
Jamnagar-based mutual fund distributor Raj
Jivrajani of Money Matrix Advisors also credits
factors other than the disruptive event for the
trend. “Interest rates offered by banks are down.
So, people have realised that mutual funds can
provide better returns. Also, awareness levels
have risen in the last two years,” says Jivrajani.
Chumble is confident that these new investors
are aware of the market risks involved. “Most of
them are recurring deposit investors who can
see that SIPs are better option even if they yield
9-10 per cent returns,” he adds. Technology has
played a pivotal role in deepening mutual fund
penetration, ensuring ease of communication
and execution. “What investors look for is
a mobile-friendly platform to execute their
transactions. Language is not a huge barrier,
as people are conversant with English as the
language of transactions. However, the next
level to be unlocked would be that of region-
specific portals and communication channels,”
says Kunal Bajaj, founder and CEO, Clearfunds.
The Long-term-SIP Fix
It cannot be ruled out that many have jumped
on to the bandwagon purely due to the bull run.
Many investors do recognise the risks and also
the importance of systematic investment over
the long term. “We have observed that people in