The success of a new organisation requires a solid foundation in its formative stage. Planning to implement a series of concrete steps beforehand ensures organisation to get off to a good start. Says Ghosh; “In all our recent campaigns and communications we have been urging investors who seek advice to remember to pay for quality advice and services.” The AMC is taking its role seriously to bring in distributors and investors into an inter-woven platform of engagement, building a specialist model that it hopes to cash on.
Disappointing AUM growth: Yes, the loss in the number of investor folios at an industry level as well as the month-on-month net outflows in equities is alarming. Its testing times - as both investor and market behaviour can be difficult to predict. The inflows through SIPs are the silver lining though it cannot make good for lump sum investments having a 2-3 year time horizon.
Regulatory changes: Every single change brought about has been keeping the investors interest in mind. It is now for the asset managers and distributors to overcome the short term challenges by re-discovering their ground.
The road ahead: As the industry headwinds persist, the key is to stick to the basics and do simple things right, manufacture differentiated products and build performance track records without bothering too much about AUM. As the external variables turn positive asset gathering would be a natural outcome.
My investing style: My investments are primarily into mutual funds and they are for the long term. I also have some SIP investments for my son's higher educational needs.