Mutual Fund Distributors (MFDs) must respond and meet fast-changing market trends, client expectations, and technology in general. Finance is dynamic, with digital transformation in full swing across sectors. The major MFD challenges include immense pressure to adapt to changing circumstances and customer expectations.
As a digital platform tailor-made for MFDs and independent financial advisors (IFAs), AssetPlus leads this change with solutions purpose-built to ease the regular pain points of MFDs. It simplifies fund selection and empowers distributors to build stronger, long-term client relationships.
Now, let us understand the five major mutual fund distributor pain points, and how AssetPlus can solve them.
5 Key MFD Challenges and Solutions Provided by AssetPlus
Here are some of the most prevalent mutual fund distributor pain points and how the AssetPlus benefits help distributors overcome them:
Which Funds to Suggest to Their Investors?
One of the most significant MFD challenges stems from the need to propose the appropriate mutual funds to investors. Currently, the marketplace is saturated with various choices- each with unique performance metrics, risk profiles, and fee structures.
The distributor is responsible for sifting through this massive array of choices to match funds with each investor's unique risk tolerances and financial goals.
The complexity of the task is further compounded by changing market conditions, regulations, and the latest technology.
AssetPlus Simplifies Fund Selection with Smart Decision-Making Tools
AssetPlus can make this critical task quite easy by helping MFDs select the best funds based on risk profile.
How to Use Fund Finder:
Distributors get access to the Dashboard, which has an extensive list of their clients. Partners can choose clients and find the best funds for them according to their risk appetite, budget, tenure, and type of investments. They can choose from:
SIP
Lumpsum
The process involves three simple steps:
Step 1: Provide Investment Type, Investment Amount, and Investment Tenure
Step 2: Select Risk Appetite
Step 3: Customize and Share the Proposal with the Client or Add it to the Cart
This tool also helps delete and add funds, adjust the investment amount, personalize messages, and notify the client of the chosen options.
Benefits of Using Fund Finder
AssetPlus' Fund Finder is an effective tool that makes recommending funds extremely simple based on:
✔ Client's long-term goals.
✔ Market short-term trends.
✔ Diversification within the market.
✔ Volatility and rewards related to Equity Investing.
✔ Client's risk tolerance and investment portfolio.
1️⃣ How to Deal with Client Objections when the Market is Going Down?
Market downturns add a level of complexity to MFD challenges because investor sentiment becomes increasingly volatile. As a result, clients tend to become more anxious, mainly due to negative news cycles, market rumors, and social media speculation.
To address this, MFDs must manage their clients' emotional distress while correcting the misconception that a falling market requires an immediate withdrawal of investments. They must also stay informed about any regulatory changes that may impact investment strategies.
2️⃣ AssetPlus Tackles MFD Challenges with Smart Solutions
AssetPlus offers MFDs robust tools to handle objections of clients with confidence in market downturns:
Training - In Person: AssetPlus provides MFDs with insights and research-backed data to help them guide investors effectively. Partners get access to online courses, webinars, upcoming and outreach events, and videos of past webinars.
Webinars: The integrated modules support constant communication with clients. This is where distributors maintain an open discussion. 3-4 webinars are conducted every week, and during weekends, the AssetPlus team travels and meets distributors to help them with their concerns and challenges.
Business Development Resources: Comprehensive market insights help MFDs demonstrate the impact of long-term investing.
Here are some features:
✔ 'Ask me anything' webinar wherein all partners can ask questions and get instant solutions.
✔ 45-day growth plan initiative comprising 10 webinars to assist new partners. This is specifically for partners who have recently joined the platform and have an AUM of less than INR 25 lakhs. A 45-day special training is conducted for them, focussing on content, coaching, and solving challenges.
✔ Channel Plus consists of recordings of past webinars, including investor awareness programs by industry experts.
✔ 100-plus presentations on investment, insurance, and business development.
✔ 900-plus marketing materials available in multiple languages. 3️⃣ Unable to convince UHNIs/HNIs to Invest in High-Ticket SIP/Lumpsum
Convincing Ultra High Net Worth Individuals (UHNIs) and High Net Worth Individuals (HNIs) to invest is challenging. They are generally highly picky and hold a high standard of accuracy, openness, and verifiability.
Also, HNIs and UHNIs are always seeking ways to diversify their portfolio while controlling their risks to achieve higher returns.
AssetPlus Strengthens Relationships with Elite Investors
AssetPlus builds trust and credibility with high-net-worth clients using multiple strong features:
Portfolio Management: Develop and present highly detailed, customized proposals that can be communicated directly to UHNIs and HNIs. AssetPlus offers tools that help MFDs track client investments and manage AUM effectively.
In-Depth Performance Analytics: Deliver long-term historical performance details and projections to let clients visualize the potential of high-ticket investments with data-driven analysis.
Risk Mitigation Strategies: Use sophisticated risk analysis tools that highlight the possible risks and how to avoid them to increase their trust in high-value investments.
Investment Communication: AssetPlus enables MFDs to present investment insights clearly, helping clients make informed decisions.
4️⃣ Difficult to Acquire New Clients
Attracting new clients and linking them to IAPs is challenging. With so much financial information, cold calling and direct mail are less successful. Therefore, IFAs and distributors need to provide honest, ethical advice to build trust.
AssetPlus helps MFDs build their brand and business by offering the following resources:
Partner Meets: AssetPlus organizes partner meets that bring MFDs together with industry experts and peers. These sessions promote internal and external collaborations and invite new business opportunities.
Training Sessions: They have training programs that offer expert strategies and the latest trends to MFDs, which help them enhance their business and branding skills.
Brand Building Resources: MFDs can also benefit from a massive AssetPlus library of customizable digital materials and marketing collaterals, which can further help them build a strong market presence.
5️⃣ Potential Clients Accept Suggestions but Invest Through Direct Mode
Other common MFD challenges are that even if their clients value the insights gained during advisory consultations, they often turn to direct investments through online portals.
Lower fees, perceived autonomy, and convenience of direct-mode investing induce this trend. This downplays the distributor's role as well as revenue from the commission.
How Can AssetPlus Help You
To deal with such challenges, AssetPlus offers solutions through its rich resources like Biz Guru and Knowledge Hub. For instance, a similar question was posed by one of the partners at AssetPlus, and a comprehensive solution with guiding resources, videos, and presentations was offered.
AssetPlus helps Mutual Fund Distributors become successful contributors to the economy.
It comes with a comprehensive dashboard for MFDs and offers several tools to empower them to maintain their engagement and reach their respective clients. MFDs can make the most of tools like:
BizGuru: Your Go-To Knowledge Hub - BizGuru is an interactive Q&A system that helps MFDs deal with objections, situational queries, and conceptual problems. It is a one-of-a-kind list in English and Hindi that can help you with ready-made and crisp solutions to business challenges. Partners can ask any situational, objectional, or conceptual query or refer to questions that have been answered comprehensively.
The Events Page: Valuable information related to seminars and even in-person events that can upgrade the knowledge of MFDs and improve their professional circle.
Resources Presentations: Visuals will help guide their investors better using presentations on market trends, investment strategies, and regulatory updates.
Conclusion
As MFD challenges are multifaceted and constantly evolving, addressing mutual fund distributor pain points needs agile, well-informed, and technologically equipped services.
AssetPlus prides itself on a dedicated, intuitive platform built for seasoned MFDs seeking to grasp modernization head-on with these MFD challenges. The platform offers several innovative solutions that translate into measurable benefits.
Contact the experts now and learn how you can leverage AssetPlus benefits.