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Pramerica Mutual Fund: Looking for a Foothold

Distribution is a very important part of ensuring that the mutual funds reach out to investors. We will launch innovative products that appeal all investors.

Late entrants in any market have their task cut out. Yet Vijai Mantri, Managing Director and CEO, Pramerica Asset Managers Mantri is confident when he says, “We will help investor's bridge the gap between their current financial situation and their dreams and aspirations by providing them meaningful and identifiable solutions.”

Disappointing AUM growth: Distribution is a very important part of ensuring that the mutual funds reach out to investors. The main reason for net outflows is the distribution apathy towards mutual funds. Distributors have moved away to higher revenue products like insurance, stock broking and PMS. Distributors are the last mile connects between AMCs and customers; by discouraging them, the imbalance is felt. The way forward is to increase investor awareness through sustained product offerings and communication.

State of the market: The market is currently trading at reasonable valuations considering the strong macro economic growth prospects associated with India. There may be intermittent profit booking along the way as we approach the historic highs but we believe that as long as the global situation remains stable, the Indian markets may see new highs in 2011.

The road ahead: As an AMC, we plan to offer innovative products that will help investors preserve and grow their wealth. We will be reaching out to retail investors and bringing to them meaningful investment solutions, rather than just products.

My investing style: I invest in diversified equity funds through systematic investment plans (SIP) and systematic transfer plans (STP). This simple and easy strategy has delivered for me over the past many years.