Shriram Group has significant presence in financial services. Our biggest strengths are undoubted parentage and strong group lineage, strong brand equity and goodwill, and depth and breadth of market reach.
Challenges ahead
From a business standpoint, the greatest challenge remains creating adequate awareness in the minds of the uninitiated investor in a cost-effective manner to further deepen the penetration of mutual funds.
The frequent regulatory changes impacting the distributors and the business model hamper and impede business growth and future commitments of capital to the industry.
It is becoming increasingly complex to design well-differentiatedproducts and adopt an appropriate buy-and-hold, long-term strategy by selecting securities that offer a healthy combination of visible and accelerated earnings growth, strong financial and business fundamentals, superior management quality and fair valuations.
Competition
The required level of diversity in fund objectives, specialisation in asset classes, customised offerings to suit needs for different stages of life are lacking. Competition seems to be limited to the top five locations. So, there is much larger scope in terms of market penetration. This also provides a room for consolidation and opportunities for new players with distinct product differentiation to create a niche for themselves.
Retail reach
Traditionally, our strength lies in strong retail presence. We would be playing on our strong agency force to reach out beyond top ten locations and increase our penetration in B15 cities.
This article was originally published on December 18, 2015.
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