Demand Estimation of Mutual Fund in India

2. India Statistics Asset Under Management (in Billion) 2005 – 2009 AUM Growth Rate comparison across Globe -- Source CII Mutual fund summit 2009

3. India Statistics AUM to GDP Ratio Growth Net Mutual fund Saving of India (value terms) Vs entire globe -- Source KPMG website mutual fund Research paper

4. Demand estimate of Mutual fund when minimum investment amount is = 5000/- INR –IIMS Datawork ~ 45% population is target market

5. Demand estimate of Mutual fund when minimum investment amount is = 1000/- INR –IIMS Datawork ~ 54% population is target market

6. Reasons for slow growth of Mutual fund : Low customer awareness Lack of financial knowledge Inferior distribution and limited banking services in the rural regions

7. Segmentation Flexible Market Offering :SIP Use Psychographic Segmentation Homogeneous Preferences: IT folks ready to take risk ..High Purchasing Power Rural place folks… Assured ROR Niche marketing… HNI and FII, Government Local Marketing … Banners Individual Marketing…finance Professionals , CA…

8. Types of Mutual fund Customers

9. Correlation of GDP Growth Rate with AUM Discounting for GDP Growth Rate association Comparison with US Market 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% 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 Total expenses less than 1% Vast variety i.e. Diamond, currency, metal ETF, Kids MF, bear market fund Indians Investment Profile

10. Action plan Introduce simple products that have features of capital protection with returns that are higher than traditional products and limit market risk Focus on creating a mutual fund for commodity market. Focus should be more on Woman .. Financial decision makers Selling through Post Office and Rural Banks, Retail stores, mutual Fund Inculcate basics of Mutual fund as a subject into school curriculum Introduce Red Bus portal concept

11. $ THE END