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June 7, 2012

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

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

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

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




  Cafemutual

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Amfi ppt

  • 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