Our diverse reach as a group (with access to retail and HNI clients) allows us to identify the gap investors see in the available product offering and bridge that gap through our unique product offerings. This has enabled us as an AMC to launch differentiated and unique products.
Our key weakness is that as an AMC we are still pretty young and are still building our track record. Currently, this doesn't allow us to target retail investors aggressively. However, we do think that as we grow old and build a track record and scale we will be able to tap that segment and grow ahead of the industry.
Challenges
From a business perspective since we are a new AMC we need to build a strong track record, which we can then showcase to the prospective investors. We also need to launch differentiated and unique products which will get investors to look at us in preference to more established AMCs.
From an investment perspective it looks like that globally the things might slow down and the next few months could see significant volatility in the markets. The ability to generate returns while managing volatility and not making any significant mistake could be the biggest challenge in the coming year.
Competition
We do think that there is enough competition in the mutual fund business but access to diverse products is currently limited. If you scan the mutual fund space, you will see that the products and product categories are broadly similar across mutual funds. Partly because of the regulations and partly because of the unwillingness of managers to stand out of the herd, differentiated strategies and differentiated products are unavailable to investors.
The solution to this is not new AMCs but newer products from existing AMCs. The ability of an existing AMC to draw in investors is significantly higher than that of a new AMC, which will need to demonstrate its performance and build a track record over a period of time to attract investors.
Retail reach
At this point we are looking to build a strong track record, which will enable us to showcase our products to retail clients. We would like to go to the retail market only once we have a clear track record, which will allow us to showcase our strengths and differentiate ourselves from other competing products.
This article was originally published on November 19, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
