Home | Register | Sign in | Contact Us | Sitemap |
17 Oct 2012 06:00 PM
AMCs develop strategies to strengthen reach beyond 15 cities 
Pallabika Ganguly

SEBI has recently incentivized AMCs to make mutual funds more popular in locations beyond the top 15 cities.

AMCs are taking various steps to expand their presence beyond the top 15 cities. Most of the AMCs are tying up with PSU as well as private banks for reaching out to investors in these cities. While some are opening more branches, a few other AMCs plan to concentrate the 2 basis points spend for development of the market through investor education and awareness initiatives in these cities.

For instance, Reliance Capital Asset Management has already outlined its expansion plan beyond top 15 cities. It plans to double its current branch network of 200 and add 5,000 new distributors to its current strength of 40,000. Most of the new branches have been planned to be opened in tier 3 and tier 4 cities.  “First-time investors feel more comfortable when a fund house is physically present in their town to meet their servicing needs. By pushing through the recent regulatory changes, SEBI has done what it can to encourage retail investments. Now, it is up to the industry to make products more accessible to investors”, said Sundip Sikka, President and CEO, Reliance Asset Management Company.

The regulator has been continuously nudged fund houses to expand their reach. UK Sinha, chairman SEBI, reportedly said at a recent event, "The industry has to go beyond top 15 cities and if you do so, then you will get good and sustained business.”

HDFC Mutual Fund is planning to convert 15 out of 60 resident representatives located beyond top 15 cities into proper branches. The AMC has 120 branches across the country out of which 75 branches are located beyond the top 15 cities, besides 60 residential representatives in tier 2 and tier 3 cities. It is also planning more strategic tie-ups with private banks and later PSU banks. The AMC wants to educate investors by tying-up with IFAs with experience in conducting investor education program in these cities.

UTI Mutual Fund too is planning to add 100 new points of sale in these ‘non-top 15’ locations. Currently it is present in 532 districts. The AMC wants to stress more on training the employees recruited in these branches rather than expansion.

Cafemutual welcomes your comments. Any disagreements or criticisms must be expressed in a dignified manner. Thank you.
blog comments powered by Disqus
Related Articles
AMCs rush to launch international funds
Cafemutual announces winners of Sundaram Cafemutual Confluence 2014 contest
NISM may introduce online CPE for distributors from September
Their unique achivements get rewarded with MFRT Samman
IFAs bond, network and charge themselves at MFRT Summit
MFRT awards innovative AMCs
Fund houses come up with interval funds to offer liquidity breather to investors
Axis MF launches tab version of Shubhchintak at MFRT Summit
NFOs now open August 23
L&T Mutual Fund launches Business Cycles Fund
ICICI Prudential launches closed end growth fund
Sundaram AMC launches Top 100 Series I Fund
Ratios which Investors should consider while choosing Mutual Fund Schemes
UTI Mutual Fund launches Banking and PSU Debt Fund
DWS launches Inflation Indexed Bond fund and Euroland offshore fund
IDFC to launch close end Equity Opportunities Fund Series 2 & 3
About Us | Media | Advertise With Us | Editorial Policy | Contact Us | Privacy Policy | Disclaimer | Sitemap
© Cafemutal.com. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of cafemutual.com is prohibited.
Best Viewed in I.E 7.0 and above. Resolution: 1024 * 768. Developed & Hosted by Accord Fintech Pvt. Ltd