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Fidelity Mutual Fund: Par Excellence

A key detractor of AUM growth has been lack of distributor interest in selling equity mutual funds given unfavourable economics versus other investment products.

The bedrock of the Fidelity investment process is research. Reflected not just in its products but also its services, this trait goes a long way into building reputations. “We are growing and strengthening our distributor network to build the last mile access to investors,” says Ashu Suyash, Managing Director and County Head – India, Fidelity International. The fund house’s investor education efforts reflect its serious retail play mindset.

Disappointing AUM growth: We have seen unprecedented regulatory intervention in the last one year and most of it has not been helpful for the business. A key detractor of growth has been lack of distributor interest in selling equity mutual funds given the unfavourable economics compared to other products.

Regulatory changes: Investors benefit over the long term when they are offered investment options which are cost effective, transparent and compare favourably on the basis of investment merit. I wonder though, if abolishing entry loads was the only solution.

The road ahead: We are expanding and strengthening our distribution network as they provide the last mile access to investors. The PSU bank channel remains under-utilised and I also see potential in working with the insurers as a channel. Simultaneously, we will leverage the newer channels like the stock exchanges and online platforms. Our key priority remains servicing and communicating with end investors. We have beefed up our service infrastructure and external communication to address this.

My investing style: I am a firm believer of goal based investing and invest predominantly in mutual funds. For me it is all about time in the market and not market timing!