1. June 7, 2012
Nexus
A study of the client-distributor
relationship and its impact on
MF industry

2. Context
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

3. The Industry Linkages
AMC
Distributor
Client
Most clients have no or little interaction with the AMCs
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

4. The Knowns and the Unknown
AMC
Distributor Client
Not understood
well
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

5. Distributors shape client
perceptions
• Most clients experience the mutual fund product through
the distributor
• Their experience with the distributors shapes the client
perception about the industry
• Regulator is keen on promoting client – distributor
alignment
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

6. Research Proposal
-Outline
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

7. Why do this research?
• Gauge the current levels of client
satisfaction/dissatisfaction with distributors across
channels – IFAs, banks, NDs, online, direct
• Identify areas of improvement
• Based on findings, formulate strategies and action
plans
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

8. What is to be researched?
• Perception of alternate channels of distribution
(services, value adds, integrity, expertise, pricing)
• Purchase behavior of clients across alternate
channels of distribution
• Specific concerns and dissatisfactions with each
channel
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

9. What is to be researched? …2
• Understand the parameters used to evaluate alternate
channels
• Map the relationship between investor and the
distribution - from initial contact to termination of the
relationship
• Identify critical aspects of the investor - distributor
relationship
• Across client profiles
• Across distributor categories
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

10. What is to be researched?…3
• How is the client relationship with the distributor
shaping the client perception of the industry?
• How well is the distributor equipped to deal with the
changing client needs and expectations?
• How well is the distributor equipped to deal with the
regulatory changes?
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

11. Who is to be researched?
• 2000-5000 existing mutual fund clients across the
country
• 100-250 ex-clients
• Characteristics
• Age
• Education
• Income
• Amount invested
• Length of experience with mutual funds
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

12. How is to be researched?
• A mix of Qualitative and Quantitative techniques
• Qualitative - Group Discussions in 2 or 3 centers
• Quantitative - Structured Questionnaires to be
administered in person
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

13. Why Cafemutual?
• We have in-depth industry understanding
• We offer bespoke solutions
• We work with ‘best-in-class’ experts
Nexus - A study of the client-
distributor relationship and its
impact on MF industry

14. Thank You.
Nexus - A study of the client-
distributor relationship and its
impact on MF industry
Cafemutual