We, at Axis Mutual Fund, believe that asset management, as a business, derives success from three key elements, namely brand, distribution and performance.
Axis AMC has been fortunate enough to have a very strong parent brand in 'Axis', which is one of the top three fastest-growing private sector banks in the country and stands for trust in the minds of the consumer fraternity at large.
Performance of products in our industry is an output of the investment philosophy, risk-management framework and, most importantly, adhering to it.
There have been enough instances in the 22-year history of private-sector mutual funds in India where the sentiment and short-term distractions have got the better out of both fund managers and investors. We are fortunate to have imbibed this powerful insight into our DNA since inception. In our sixth year of existence, markets have thrown enough market, regulatory headwinds at us to test our business and investment acumen and I am happy to share that the superior risk-adjusted performance of our schemes bears a testament for what we have stood for and delivered.
Challenges
In usual circumstances, one will feel challenged by markets and regulatory environment. However, we, at Axis, believe the biggest challenge for us is to get a larger chunk of Indians, who are the second largest savers in the world, start experiencing mutual funds, which are the most superior and consumer-oriented product amongst the various financial products available to any investor. To my mind, there are three things that we need to work on:
- Massively simplifying our orientation and communication with consumers, which should be centered around their financial goals, dreams and aspirations
- For a country as large and as diverse as ours, we need to grow our distribution footprint exponentially. A balanced investment in people and technology will help us build scale.
- The third and the most important thing is convenience. We, as an industry, need to 'leapfrog'. I use this word as time for incremental growth is over; we need to leapfrog and make the consumer-buying experience of mutual funds delightful. Here again automation, internet and social media can help.
Competition
I think there are enough AMCs in the country to offer a fair degree of choice. However, one sees a fair degree of homogeneous thought process when it comes to what we do and how we do it. What we need is a fresh thought process, different thinking and a start-up culture. We need to reach out to a new set of customer through new distributors and mediums.
Retail reach
Our aspirational target is to have Axis Mutual Fund in every household in India.
This article was originally published on November 16, 2015.
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