This is my first note to you as MD & CEO of this great organization. I am humbled by the responsibility to lead SBI MF in a dynamic asset management industry in the world’s most dynamic market that is India.
Though I have been associated with Mutual Funds in my previous roles with SBI, this will be my opportunity to really see how it really impacts retail investors and the choices they make to invest for their goals.
India continues to be the bright spot in the global economy with a strong domestic economy, pro-reform government and well-regulated financial markets. With the recently passed Goods and Services Tax (GST) Constitutional Amendment Bill in the Rajya Sabha which promises to streamline the tax structure paving the path for more consumption and growth across the country, and other strong reforms planned by the elected government, better days await the country.
Mutual Funds have been the beneficiaries of this optimism and over the last few years have emerged as an efficient and strong investment option. We have seen a shift in investments from investors towards equity and equity-based funds to tap into the country’s growth and invest for long-term wealth creation. The industry has seen a lot of active participation and new enrolments in Systematic Investment Plans from investors seeking to invest in mutual funds for their goals.
Also coming from SBI, I have seen the potential of Tier 2 and 3 locations. They are the hidden potential for almost everybody, from soaps and toothpaste to banking and financial products. Over the years, initiatives like UIDAI (Aadhaar) and Jan Dhan Yojna has given accessibility, social freedom and financial empowerment to the masses and smaller locations have been its direct beneficiaries. It is therefore no surprise that mutual fund penetration in B15 cities is expanding and their contribution to the industry AUM increasing at a healthy pace. Our aim as asset managers is also to continue to educate the large masses of savers in the country and convince them that ‘prudent investing’ and not just saving is an effective way to secure financial goals. Mutual Funds are the only investment option which offer products across multiple asset classes like equity, debt and gold.
Our current investor education campaign ‘The Best Thing Money Can Buy? More Money.’ is a step on that front. Wherever you go, you will find that the ones who have wealth today, had spent on one thing always. Buying more money through prudent investing! There lies our campaign thought. Every saver, every earner with a disposable income can create considerable wealth for their future and make it secure. They just need to always keep money to invest on their shopping list!
I look forward to working with all of you and look forward to your continued patronage.
Managing Director & CEO