Reliance Nippon Life Asset Management has more than 20 years of wealth-creation experience. We have always been a retail-focused AMC and serve the second-largest investor folios in the industry. Apart from launching innovative services like the recent 'Simply Save' app and products like ATM Card, we have always tried to keep improving investors' experience. Although we have one of the highest assets in the B15 category, there is tremendous potential to improve in this area.
Challenges ahead
The big challenge at any point in time is to match investors' expectations of generating consistent returns in the short term and simultaneously creating alpha in the long term. While our funds have created significant wealth in the longer term, we are also working on generating consistent short-term returns.
Growth strategy
We try to keep customers in the fore while taking business decisions. Over the last couple of years, we have created one of the most digitally integrated service platforms in the industry. Over time, we have introduced a number of virtual platforms that converge every solution on the customer's mobile. All our digital platforms are integrated with our contact centre. These help customers to transact 24/7 and get their queries resolved.
Fund costs
When we compare the costs of Indian equity and debt funds with global peers, Indian-fund costs are not that high. In India, the ticket size of investments is small and we have a comparatively higher churning rate, which increases costs. A majority of our retail investors are not ready for direct plans since they need support from advisors to pick appropriate schemes that meet their investment objectives, thus increasing fund-distribution costs.
We believe technological platforms will help us to reduce our costs substantially and pass maximum benefits to our investors.
Technological initiatives
We have launched many industry-first initiatives such as straight-through processing of corporate-customer payments through a tie-up with specific banks, which allows our corporate customers to not only book mutual-fund transactions but also payments. Similarly, we have made specific arrangements with many large private banks where SIP payments on a monthly basis have been automated without the customer having to fill the physical forms.
Outlook for equity and debt
Indian equities and fixed income are well placed to do well in the near future as well as in the long term.
This article was originally published on January 06, 2017.
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