Gagan pareek mutual fund_market reserach

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Demand Estimation of Mutual Fund in India

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Gagan pareek mutual fund_market reserach

  1. 1. Demand Estimation (Mutual Fund [India]) <br /><ul><li>Gagan Pareek</li></ul>-- WE School PGDM 09-11<br />
  2. 2. India Statistics<br />Asset Under Management (in Billion)<br />2005 – 2009 <br />AUM Growth Rate comparison across Globe <br />-- Source CII Mutual fund summit 2009<br />
  3. 3. India Statistics<br />AUM to GDP Ratio Growth <br />Net Mutual fund Saving of India (value terms) Vs entire globe<br />-- Source KPMG website mutual fund Research paper<br />
  4. 4. Demand estimate of Mutual fund when minimum investment amount is = 5000/- INR –IIMS Datawork<br />~ 45% population is target market<br />
  5. 5. Demand estimate of Mutual fund when minimum investment amount is = 1000/- INR –IIMS Datawork<br />~ 54% population is target market<br />
  6. 6. Reasons for slow growth of Mutual fund : <br />Low customer awareness <br />Lack of financial knowledge<br />Inferior distribution and limited banking services in the rural regions<br />
  7. 7. Segmentation<br />Flexible Market Offering :SIP<br />Use Psychographic Segmentation<br />Homogeneous Preferences: <br />IT folks ready to take risk ..High Purchasing Power<br />Rural place folks… Assured ROR<br />Niche marketing… HNI and FII, Government<br />Local Marketing … Banners<br />Individual Marketing…finance Professionals , CA…<br />
  8. 8. Types of Mutual fund Customers<br />
  9. 9. Correlation of GDP Growth Rate with AUM<br />Discounting for GDP Growth Rate association<br />Comparison with US Market<br />Mutual funds AUM grew by 96% between the end of 1997 and June 2003 and as a result it rose from 8% of GDP to 15%<br />Considering the GDP correlation and corporate investment from both Indian as well foreign investors, growth is expected 15% to 22% depending for lower to higher side of economy growth<br />Total expenses less than 1%<br />Vast variety i.e. Diamond, currency, metal ETF, Kids MF, bear market fund<br />Indians Investment Profile <br />
  10. 10. Action plan<br />Introduce simple products that have features of capital protection with returns that are higher than traditional products and limit market risk<br />Focus on creating a mutual fund for commodity market.<br />Focus should be more on Woman .. Financial decision makers<br />Selling through Post Office and Rural Banks, Retail stores, mutual Fund<br />Inculcate basics of Mutual fund as a subject into school curriculum<br />Introduce Red Bus portal concept<br />
  11. 11. $<br />THE END<br />

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