New initiative on Investor Education. This approach focusses on one to one communication to spread the equity cult. The seminar format of educating potential investor has limitations, since it allows only dispensing with information but fails to influence people. This new approach is fresh, economical and has multiple benefits to the society at large.

1. A Socio-Commercial Initiative Powered by Niveshak Mpowered Pvt. Ltd.

2. Investor Empowerment through Education = Widening MF Investor base

3. MF Retail Sales - Challenges Customer base is virtually stagnant. More so in tier II & III cities where the penetration is sparser. Absence of distribution strength in smaller towns. Cost compulsions compound incapacity of MFs to widen reach. Despite good work, miles to go for building investor awareness, which is essential for creating own base of investors IFAs’/Distributors’ apathy to sell MF products due to reduced commission further dampened penetration in retail segment. Industry Regulator encouraging development of Retail segment Higher marketing cost demands cost effective ways to market/ proliferate/ spread the MF products

4. The Real Issues Lower commission is not an issue. Rather smaller customer base is. Let it be a volume game. Investor apathy is not due to fear or negative views but rather due to lack of awareness/ knowledge about MF

5. Central Challenge Communicating the benefits of MF effectively remains the central challenge MFs to take public leadership role with the Governments, Regulators, the media and Industry Association to inform & educate all parties about the role of mutual funds in the investment process is very much desired “Global Fund Distribution – Best Practices, Key Trends, & Operations Models to Grow Sales Worldwide” by Strategic Insight Or Replicate what Charles Merrill did after great depression in USA to bring back the investors to equity

6. The way reach is build currently ... Tele-calling Mass mailing On-line or mass e-mailing Group meetings or seminars Product Literature Advertising campaign Events and trade show campaigns

7. What could be ideal way .. Mass communication has a flip side whether influence is measured immediately or over a period of time Savings and Investment are sensitive and very personal issues – one to one talk Personalized communication delivered personally is the best way to influence investment behavior

8. The Best way to predict the future is to invent it. Alan Kay

9. Investor Education: one to one In a Group meeting the participants may get information but may not get influenced One to one personal meeting on important and sensitive issues like savings & investment helps in making lasting impact and influencing individual behavior Niveshak’s Financial Advisory Program (n-fap) provides the answer

10. n-fap B-School or Graduation students are roped in as interns Undergo 2-3 days class-room training. Training comprises of all investment/ savings products, financial planning, income tax and presentation skills Visit individuals randomly within their family/ friendly circle or arranged by us. Take them through Investor Awareness Program, which lays greater focus on equity as an investment tool Collect valuable information on a questionnaire Upload the information through web-based program Develop individual’s financial profile, suggest an indicative portfolio

11. Approaching Mgmt Institutes /Colleges for Interns Process Flow : Potential future employees Selecting students for internship program from B-Schools & Grad. Colleges telecalling Imparting 2-3 days training program on MF, Insurance, Taxation & Financial Planning Outcome Immediate business Potential investor base Brand building Providing the interns with lucid Investor Awareness Presentation & Questionnaire Presentation by interns, collection of quality data & leads . Questionnaire filled online. Potential Hot Leads passed on to Sales Team for conversion. Rest can be converted in foreseeable future

12. Advantages of the program to sponsor Building/ strengthening Brand awareness and recall Meet the target of Investor Education Study Investor Behavior about a brand or product Enhance retail participation Generate pull effect Active marketing Higher success rate in selling efforts Multi product selling by multi product manufacturer Generate potential sales team of future

13. Outcome of initial programs 400 students roped in across 5 locations In a period of 45 days, these students gave presentations to more than 7000 individuals (with potential to save/invest)

14. A Socio-commercial initiative .. …… that would help… Mutual Funds/ Insurance Companies etc. to spread reach and widen customer base at lower cost Spread Equity cult or promote modern day savings/ investment instruments Young graduates to hone advisory skills and build career prospect Manufacturers of financial products or Brokers or Distribution houses to develop trained team of foot soldiers Colleges to place their students for better career Regulators to bring an orderly development of the markets

15. THANK YOU