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WF : You have created a record in the industry by conducting over 500 investor education programs in the last year. Tell us about the breadth and coverage of this program - the number of towns and districts covered and the number of investors engaged.
K S Rao : Thank you Vijay! Indeed, it is like a passion that became a profession. I remember mentioning during our last interaction that our endeavor is to create a large pool of informed investors and empowered channel partners. We took it as a Mission. We are working with a single-minded focus on education, engagement and expansion. We have reached over 100 locations and connected over 30,000 investors through our out-reach programs. We have adopted 10 districts part of DAP and also adopted 100 schools in these districts. We connected to over 50 Corporate/s and over 50 colleges.
WF : What is the format of these sessions? How long do these sessions last? What are the key messages that you seek to deliver in these sessions? What languages do you communicate in? Do you rely more on audio-visuals or actual face-to-face presentations and Q&A?
K S Rao : Our approach is multi-pronged and customized to various segments of the audience. Let me explain a few of our broad approaches - Goal based Investments and Mutual Funds (for general public) is like a seminar, My First Pay Cheque (For new-joinees in corporates and for college students) is experiential teaching, Money Lab (for school children and parents) is fun-filled workshop. We have developed a wide variety of tools, games and kits. In our experience, NISM's Pocket Money Book has been a great success across our school programs. The pedagogy adopted by us has different approaches so that it can better connect with the audience. Financial Education is a life skill and we made an attempt to work on the behavioral change while communicating Mutual Funds as a tool for every individual at every stage of his life to create wealth. Our presentations are in vernacular languages and facilitators range across professionals who are NISM certified trainers to alumni of IIMs. We have created templates for each of these programs and they are well structured. It's combination of multimedia, interactive and well laid-out process of Q&A at the end of the sessions. We are also developing a follow-up methodology of continued learning through our e-learning platform for Investor Education (e-Nipun).
It needs a specific mention that the audio-visuals (Don't believe in hearsay and question unrealistic returns) developed by SEBI are very impactful at these meetings.
WF : How do you evaluate success of such programs? How has the journey been so far? What has gone down well with investors? What needs to be strengthened, going forward?
K S Rao : When we started our journey, our biggest challenge was to get meaningful number of audience to these meetings. There were times when we ended up with single digit presence at some meets. Now we have surpassed the first challenge and today we get over 80-100 on average per session and glad to mention that we did few programs with 500 plus audience as well. We need to speak to investors on what is more important to them in their life and how we can enable them to achieve their financial goals, establishing a fact that Mutual Fund is their Mutual Friend to accomplish their life goals.
We need to speak jargon-free language and provide them with the executable solutions; present them with relevant content and make financial education available online or at their touch screen.
WF : What are the key insights you have imbibed from this huge investor engagement exercise?
K S Rao : First of all it's just a beginning. It has to be an ongoing exercise with accelerated speed. No short-term approaches for long term investments!
One of the key insights is - The investor is looking for a trusted partner and advisor who can help him in reaching his financial goals. The Indian Investor is looking for an investment advisor. Conversions do happen when you could connect well. We find huge scope for distribution expansion.
Investors are slowly moving away from a myth that Mutual Fund means Equity. SIP is slowly becoming an important word, and it may soon become a philosophy of investments. We probably may have to re-define SIP as Save, Invest and Prosper.
WF : What are the key objections that are coming through from these sessions about why mutual funds are not on the consideration set of most Indian savers?
K S Rao : Simplifying the process of on-boarding is the need of the hour (Operational issues need to be simplified). The second is to make communication simple and to speak his language.
Our combined efforts on financial literacy are yielding results. Investors are attending the awareness meets with pragmatism and they are positive in their approach. They are convinced about mutual funds and are beginning to understand about the risk return trade-off. In the last few months, we could notice the increased conviction and of course conversion. We all (including channel partners) need to be the partners in the mission of wealth creation to billion Indians. As our Prime Minister said - Sab ke Saath - Sab ke Vikaas. We can take this mission as Gyaan Daan to make Jan with lots of DHAN!
WF : Having engaged extensively with so many investors, what in your view are the 3 things you think our industry needs to prioritize and work on urgently to make mutual funds more relevant to Indian savers?
K S Rao : As mentioned above - First is simplified on boarding process, Second - Jargon free communication and walk the talk. Educate, engage, empower and expand. Distribution expansion is key to reach out retail clients.
WF : What is our biggest challenge - product, distribution or communication?
K S Rao : Let me put it like this - our biggest opportunities are to - Communicate rightly, Connect consistently (Empower distribution) and Customize wisely (Products into solutions).
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