In its two-year history, Union KBC Mutual Fund has expanded its footprint predominantly through the Union Bank network. In its experience, this AMC has witnessed an increase in penetration every time it has reached out directly to investors. For instance, as on June 2013, 10 per cent of the AUM and about 35 per cent of the SIPs come from cities classified as B15 by AMFI.
G Pradeepkumar, the CEO, feels that the lack of strong distribution network in cities beyond the top-15 could be addressed by the new cadre of distributors like postal agents, retired teachers, retired government and semi-government officials (as permitted by Sebi). The conviction that technology can play a big role in expanding the mutual fund distribution has led the fund house to introduce online transaction facility through its website and has also enabled transaction through its bank ATMs. Pradeepkumar is a firm believer in SIPs, he invests when he has surplus and redeems when he needs it. This view is also extended in the AMC's investor awareness initiative.
This article was originally published on January 10, 2014.
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