Do not do anything too much or too little is an old proverb that SBI has adopted. It has the institutional investor in place and is making all efforts to increase retail participation. “We are training IFAs which will help them charge a fee from their customers for the advise they part,” says Achal Kumar Gupta, MD, SBi Mutual Fund.
Disappointing AUM growth: Distribution economics is one of the factors for low AUM growth, but overall appetite for equity mutual funds has been low. It is our challenge to get investors back to these schemes. At this point of time, the market is in the bull phase and many investors are booking profits. Going forward, AMCs, IFAs and distributors need to do things to improve the situation. IFAs need to change from being sellers to advisors.
State of the market:This is a quality rally compared to the rallies of the past. The corporate performances have been good and the risk-return premium in the Indian market is better than that of developed countries. However, small investors must have a longer-term view of the market.
The road ahead: We have taken a lot of steps towards improving customer service, as a result of which our complaint-to-transaction ratio is lowest in the industry. We want to be known as a good quality fund house.
My investing style: I believe in proper asset allocation. I am 57, and so there is a clear bias towards fixed income in my investment strategy
This article was originally published on October 26, 2010.
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