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DSP BlackRock is an asset-management company and has no other associated businesses; asset management is the only business that we are focused on.
The firm has a strong pedigree, robust management processes and an experienced and stable management team.
Not having access to captive distribution is a disadvantage. We are also perhaps not as geographically well represented as some of our larger peers. While this may have resulted in less visibility in the retail segment than we would have liked, we are working on expanding our retail franchise by engaging more with IFAs. Launching innovative products, emphasising training and development and various other value-added programmes have helped us improve our mind share and market share in the retail segment. Digital initiatives such as IFAXpress have also brought us a lot of visibility and appreciation from IFAs.
Challenges ahead
From a business perspective, we believe that there is a great opportunity in the retail segment, i.e., the potential for more flows, especially into equity mutual funds, from retail investors. From an investment perspective, the biggest challenge is the ongoing global market volatility that is contributing to some amount of risk aversion amongst investors. However, we expect this market volatility to subside over the next few months. India continues to attract a lot of investor attention globally due to its relatively higher growth rate, as also stronger macro variables.
Competition
There is already significant diversity and competition in the mutual fund business - be it the number of AMCs or fund products. What is perhaps now needed is expansion of the retail footprint even further so as to achieve more consistent retail flows into mutual funds.
Retail reach
We do have an explicit target that we would aspire to achieve in terms of the market share in the retail segment. This encompasses the market share in the IFA channel, as also the growth in the SIP category.
This article was originally published on November 18, 2015.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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