Manage your MF Business with Mutual Fund Software

Indian mutual fund industry has great potential; the chairman of AMFI has estimated that the mutual fund industry has the potential to reach Rs. 100 trillion much before 2030. The AUM size of the industry was Rs 10 trillion in 2014, which has rise to Rs 40.49 trillion in Nov 2022. Despite all these facts and figures, the industry has only individual 60,000 mutual fund distributors. The main challenge of such low participation of individual MFDs is that they are not able to effectively manage their business.

Despite all the hard work, MFDs are not able to improve their client conversion rate and grow their AUM effectively. It is difficult for MFDs to accumulate a solid client base of clients. The main problem is that there is no reliable and advanced mutual fund software for distributors that can manage their business.

Managing Information

Generally, MF distributors and advisors get caught up trying to stay abreast of the ocean of information that’s available online and elsewhere. Competent advisors focus more on client behavior instead of reacting to the latest news. Advisors also need to be able to direct their clients to reliable sources of data that have stood the test of time in terms of accuracy. This can help to prevent misunderstandings and prevent clients from making mistakes based on misinformation.

The breadth of information to manage can include but isn't limited to:

Clients: Client desires, goals, and financial circumstances change. Advisors must be comprised of what is going on in their client's life and how to develop a roadmap to their dreams.

Regulatory Bodies: Advisors must be aware of regulations and changing laws in their profession. This may require them to maintain licenses needed to transact certain securities.

Economics: Macroeconomic conditions are out of the advisor's and client's hands. However, global economic circumstances drive portfolio balances. As the world shifts and changes, advisors may be aware of broader consequences for investments.

Politics: Government action (or inaction) had broad financial implications for almost all investors. Advisors must be aware of upcoming legislation to position their clients favorably.

Taxes: Specific government action on taxes often has direct consequences on investment strategy. Changes to capital gains tax rates, tax brackets, tax credits, treatment for alternative investment assets, or treatment for foreign investments change the trajectory of your client's portfolio.

The Solution

The solution to the problem is automation, which means they need good Mutual Fund Software, which can help MFDs in providing services in accordance with the investors’ needs. The reduction or the cuts in the mutual fund distributors’ fee (squeezing distributors’ commission)