internet based tools used mutual fund distributors in india
TRANSCRIPT
Prepared by Kaushal Sharma
Internet based Tools used Mutual Fund Distributorsto promote Mutual Fund Investments
Summer Internship Project
Table of contents:
• Introduction
• Data collection – Sample size & method
• Data analysis
• Research Findings
• Suggestions
Introduction
Objective: • To identify tools used by ***********.com to promote MF Investment
• To identify the different tools used by websites of other MF distributors, AMC’s & ranking agencies
• To record those tools which are not present on ICICIDirect.com
• To suggest tools that can be incorporated on ICICIDirect.com
Research Methodology:• Observational research conducted on websites of Mutual Fund
Distributors, AMC’s and Ranking Agencies
• The research projects the findings resulted after analyzing freely available information from websites i.e on the NON-LOGIN PAGES of the above mentioned institutions
Data Collection
Distributors/Brokers AMC’s Ranking Agencies
IndiaInfoline.com AngelMF.com UTIMF.com Valueresearchonline
AxisDirect.in Mututalfundindia.com SBIMF.com Morningstar.in
KotakSecurities.com Religareonline.com MutualFund.Birlasunlife.com
Moneycontrol.com
Njfundz.com Bajajcapital.com RelianceMutual.com
Ask Wealth Investors Rsec.co.in (Reliance securities)
LnTMF.com (L & T MF)
HDFCSecurities.com Karvyonline.com HDFCfund.com
Sharekhan.com Standardchartered.co.in
SMCtradeonline.com SBIcapsec.com (SBICapSecurities)
Fundsupermart.com Fundsindia.com
Distributors/Brokers - 18
AMC’s - 6
Ranking Agencies - 3
The below mentioned websites were used for collecting data which was publicly available (non-login access)
Analysis
• Tools or Methods which were not present on ******* but used on other websites were tabulated
• These tools were classified into 5 sections– Educating/ Information Sharing tools
– Finding Funds
– Evaluation & Tracking
– Investing Tools &
– Others (Promotion, Website usability etc.)
• Tools or Methods which were widely used formed the base for recommendation
Research Findings
• SIP plans & Gold ETF plans are the top plans being promoted within their websites by distributors (flexi SIP by HDFC)
• ‘Alerts’, ‘Watchlist’, ‘Start SIP’ buttons are extensively used
• Majority Tools & Reports are used for to facilitate ‘evaluation & tracking’
• IndiaInfoline.com, MoneyControl.com, SBICapSec.com, RSec.co.in, Reliageronline.com & AxisDirect.in use the maximum no. of tools & reports(more than 7 out of the measured 13 ) – ICICIDIrect has 6– All of them have a ‘News’ Section
– 4 of them have a SIP related calculator
– 5 of them have a sector related report
• Most common tools– Retirement Calculator - Child Education Planner
– Marriage Savings Calculator - Millionaire/ Crorepati Calculator
– Mobile/Desktop applications & e-trading platforms
– Forward Compounder - Returns calculator
Continued…
Category Tools/ Reports ICICIDirectOthers (only Brokers )
Others (all)
Educating/ Info Sharing
News 15 18
Discussion boards/forums 2 4
NFO Y 13 13
Investment Tools
SIP 10 17
SWP/STP 1 2
Risk Profiler Y 4 8
Evaluation & Tracking
Sector Y 9 12
Fund Ranker Y 15 18
Scheme Comparison Y 12 15
Fund Activity 6 6
Latest Dividend Y 11 12
Continued…
• Out of the 18 distributors taken in the research sample:– 15 include a ‘News’ section pertaining to MF on their website
– 10 have a SIP related calculator
– 13 provide NFO/ Upcoming NFO reports via widgets
– 9 provide reports related to Sectors (top sectors favouring MF investments, % allocation in different sectors)
– 6 provide reports related to daily transaction in equity & debt investments by Mutual Fund Schemes
Continued…
• Out of the 6 AMC’s taken in the research sample:– 5 have a SIP related calculator
– All have the Goals (education, marriage) calculator
– 2 have a Future Value calculator
– 3 have a risk profiler & asset allocator for investors
• Out of the 3 Ranking agencies:– All the three display News & Sector Reports
– They emphasize more on displaying top funds according to different categories
– 2 have discussion boards (Blogs & Forums both) which can be used for research purposes as well as promoting schemes
Suggested Tools & Reports
• After analysing the different methods used by competitors the following methods/tools/reports can be incorporated on ********
– A more focused search box for finding funds
– Discussion Boards /Forums*
– MF related latest News Section
– SIP, SWP and STP Calculators
– Fixed Footer Bar on website with quick links & collapsible banner ad slot
– SMS Alerts Plan for MF
– Sector Tracker Search & Fund Activity Reports
Searching New Funds
• A more focused search
• Schemes can be searched using performance, sector weightage, asset size, age & minimum investment
Finding Funds
as seen on moneycontrol.com
Discussion Boards
• Discussion Boards, Forums, Blogs (Fund Manager Speak –Articles/Videos) can be used in the following ways– Myth Buster Articles– Address investor queries– Adds a personal touch– Increase participation of investors on website
Used by – ValueResearch (Ask Value Research),– FundSupermart.com, – MoneyControl (Interact), – IIFL – HDFC Securities (Analyst Videos, Learning Curve Series - articles)
Educating/ Information Sharing
MF News
• MF related recent news articles to keep investors updated
• Can increase investor participation through commenting system
• Used by:– IIFL – Angel MF– SMC Online– Karvy Stock Broking– Axis Direct– Reliance Securities– Standard Chartered Securities– Bajaj Capital– MoneyControl– JM Financial Services
Educating/ Information Sharing
as seen on indiainfoline.com
SIP/SWP/STP Calculators
• To calculate:
– the monthly SIP required to attain a specific goal
– the long run worth of an SIP
– the gains via investment made in an SIP plan (historic data)
– Returns & cashflow after a SWP or STP
CalculatorsInvesting Tools
• Presently used by IIFL : indiainfoline.comHDFC SecuritiesMutualFundIndia.comRelianceMutual.comAxisDirect.inMorningstar.inSharekhan.com
Example: SIP as per
need calculator
Source: Indiainfoline.com
CalculatorsInvesting Tools
Example: Long run worth of an SIP
Source: Indiainfoline.com
Investing Tools
SWPCalculator
Input
OutputSource: reliancemutual.com
Investing Tools
Static/ Fixed Footer Bar
• **********displays a pin up ad on arrival on the homepage
• A opening banner can also be used at the MutualFunds page
• Can be used to promote new schemes/offers
• Links can be easily viewed and accessed
Source: UTIMF
Continued..
• Mouseover Links
Displays direct links to performance, charts etc when a user hovers the mouse cursor over a scheme name
• Footer & Links used by:
• Utimf.com
• Axisdirect.in
• Hdfcsec.com (also used a fixed sidebar)
• MoneyControl(mouseover links)
Source: moneycontrol.com
SMS - Alerts Plan
• Users can be charged to receive real-time alerts pertaining to their portfolio– Real time NAV changes
– News
– Rank updates
– NAV trigger alerts
• Alerts can be delivered across SMS’s, Desktop Apps, Mobile Apps
• Users can customise the alerts
Continued…
Currently being used by:
- MoneyControl
Sector ReportA report that displays the aggregate sector exposure of schemes in the industry
Source: moneycontrol.com
Evaluation & Tracking
Sector Tracker
• The tracker lists all the schemes investing in a particular sector
• Identify the top 10 funds investing in a particular sector
• Investors who anticipate growth in a sector can track & invest in the respective funds
as seen on valueresearchonline.com
Evaluation & Tracking
Used by: ValueResearch, Sharekhan, AxisDirect, SMC Online, MorningStar.in, MoneyControl, Reliance Securities, SBImf.com, Angel Broking, Standard Chartered, IIFl
Fund Activity Reports• Displays the net
transaction of funds in debt and equity investments
• A search function can be added to identify fund activity across different periods
• Used by 6 out of 18 distributors
• Indiainfoline
• AxisDirect
• SBICapSec
• SMC Online
• RelianceSec
• Standard Chartered Sec
Evaluation & Tracking
as seen on indiainfoline.com
Fund Manager Tracker• Fund Manager Search - Search
for fund managers on basis of performance over a period of time
• Fund Manager Compare –Displays a comparison report (compares two fund managers only)
• Top performing fund managers – Report
• Used by myiris.co.in
Evaluation & Tracking
as seen on fundmanager.myiris.com
Reports in widgets
• Certain reports can be displayed on the Mutual Fund page of ICICIDirect, they are:
• NFO Reports
• Sector Report
• Sector Tracker
• Fund Activity Report
Source: hdfcsecurities.com
Why reports in widgets?
• Facilitates sharing of information in concise & arranged manner
• The homepage looks clean
• Easy access to information
• Who’s using such reports ?• Indiainfoline.com
• Axisdirect.in
• Morningstar.in
• Moneycontrol.com
• HDFCSecurities (hdfcsec.com)
Mobile App for MF
• Mobile App that delivers– Top 10 schemes, NAV and other
such reports
– Performance Charts
– Mutual Fund related news
– In-App Purchases • Daily Alerts
• Recommended Portfolio
– Includes MF related calculators
– Chat Function
– Investor Education via App (Daily Article, Facts etc.)
Why?
• MoneyControl.com app 500000+ downloads (Android)
• Indian Mutual Funds Tracker 5000+ downloads
• Many more such apps
• Users can track portfolio
• In-App purchases can generate revenue
• In-App ad slots can be used for promotion or generating additional revenue
Personal Finance App
• A personal finance app that facilitates– Recording Daily transactions
– Recording Investments
– Budget
– Planning Finances
– In built SIP, Returns calculator
– Displays the returns that can be earned by investing in different products
– Access to data
– Ad Revenue, In-app purchases etc. for revenue generation
Fund Manager - Game
• The user is the Fund Manager with a certain corpus
• Competing with other users for the top spot
• Can invest the corpus using the app
• Access to ******** reports (top stocks, top 10 schemes etc.)
• Similar games: – Stockopedia.co.uk/fantasy-funds
– Ffm.fantasyleague.com : JP Morgan
– Fantasyfundinvestor.telegraph.co.uk : The Telegraph & Skandia
Why?
• 75% of apps downloaded are games
• 48% of cell phone users are between 18 – 24 years (~19.2 million)
• Youngsters are the future investors
• Gaming Platform can be used to educate & thereby attract investments
• Facilitate Brand Recall
Source: Nielsen Informate Mobile Insights
Thank You
References
• http://www.nielsen.com/us/en/newswire/2013/smartphones-keep-users-in-india-plugged-in.html
• http://www.appbrain.com/app/mutual-funds-india/com.rhomobile.mutualfunds
• http://www.businessworld.in/en/storypage/-/bw/not-without-my-smartphone/603065.0/page/0
• http://indiatoday.intoday.in/story/smartphones-social-networking-sites-technology-android-blackberry-youngsters/1/249994.html