Technology will continue to be vital in all aspects of the mutual fund business, including distribution and investor engagement. On the distribution side, easily accessible web and mobile solutions help reach partners, shared Mayukh Datta, Chief Business Officer, ITI Mutual Fund, in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).
With your extensive experience in sales and business development in the financial services industry, how have you seen the landscape of mutual fund distribution evolve over the years?
The reach of mutual funds has increased tremendously as banks and non-banking distribution companies have used mutual funds as a key product for wealth creation and wealth management. Along with them, there are 2.5 lac mutual fund distributors in the industry who are reaching out to investors. These together with investor awareness has been a key drive of mutual fund distribution evaluation.
Personal finance education is a critical topic today. How does ITI Mutual Fund contribute to improving financial literacy among its investors?
ITI Mutual Fund has been in the asset management business since 2018-19. We have since then made progress in reaching out to investors discussing investment awareness. Every month we conduct sessions on this subject in some parts of the country. We have seen that many investors use the web and mobile to make themselves aware about investments. We have tuned our social media messaging to touch upon relevant investor awareness messages.
With the increasing number of mutual fund options available, what advice would you give to new investors trying to build a well-diversified portfolio?
All new investors should start with why, which is why they want to invest. If it’s a need to have a better future or an immediate goal or just because something looks interesting today. The goal and when the money is needed should guide all investment decisions of investors.
A well-diversified portfolio is supposed to solve all needs one would have in the future. These could be goals which are short to very long-term in nature. One could invest with the purpose of when an investment has to be ready for the requirement. Once an investment and the purpose has been defined, it is required to stay invested and not get wary of the journey but be guided by the destination.
Distribution is a vital part of mutual fund growth. How has the distribution landscape changed in recent years, and what innovations is ITI Mutual Fund adopting to stay ahead in this area?
The distribution space of mutual funds is a prime example of effect of compounding over a long period of time. Distribution has been aided by technology, transaction ease and increase in investor awareness. A lot of work has been done in educating investors about investments and mutual funds. Distributors have seen merit in the long term by aligning their interests with investors’ long term growth.
ITI Mutual Fund has been therefore adopted technology by bringing ease for distributors with distributor app being available on Google play store and Apple Store. Ease of empanelment, transaction ease, call helpline for support are some of the ways by which we have tried to engage with the growing cadre of distributors and better investor service.
How do you view the role of technology in transforming mutual fund distribution and investor engagement? Are there any specific digital initiatives ITI Mutual Fund is focusing on?
Technology will continue to be vital on all aspects of the mutual fund business including distribution and investor engagement. On the distribution side, having easily accessible web and mobile solutions helps reach partners. Ease of access and transactions are the key parameters for success. For investors, the technology especially social media makes it essential to engage with investors, to inform them about ITI Mutual Fund, the products and what the brand stands for. Technology also helps in creating a two-way communication
mode where feedback is also received from the investors.
