In an annual review on fund families, we spoke to mutual fund honchos to get their views on some of the pressing issues facing the industry. This is what Anthony Heredia, the MD and CEO of Morgan Stanley Asset Management Company had to say:
What factors would increase the appetite for investing in mutual funds beyond the top 15 cities?
Increasing Investor awareness would be the key factor. Many investors beyond the Top 15 cities still equate mutual funds with only equity, and creating awareness of the various options available would help. Beyond this, increasing the depth of the distribution network in these cities will also help. Also, we need to make sure the initial experience is positive. To that extent, selling products like FMPs, short term bond funds, diversified equity funds should be the main product focus.
Have the direct plans seen greater retail participation?
Not yet, most of the flows have been from institutional investors. Given that most retail investors will need advice, the volatility of markets, and the overload of product offerings, I don't expect a major shift of retail investors to direct plans.
What investor education initiatives has your AMC taken?
So far, we have focused on activities like investor conferences jointly with our distributors. We will shortly begin an extensive mass media campaign using print and online media, to take our investor awareness initiatives to the next level.
What's the road ahead for your AMC?
Our first priority is to make sure the investment performance of all our funds continues to remain consistent. Our belief is that our acceptance by the right distribution partners, and investors at large is predicated on the investment results we produce. Over the last year in particular, we have seen this play out, with our AUM growing almost 30%. We would hope to continue on this path.
Brief us about your personal investment philosophy?
My personal investment philosophy is to primarily invest in mutual funds. Currently, I have 100 per cent of my fund investments with Morgan Stanley.
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