 For all the fuss we make about hating the sight of agents, it appears that most people (96%) choose an asset management company based on the agent’s recommendation. Also, across segments and geographies, 35% ranked fund performance and brand strength as the most important criteria when choosing a fund. Interestingly, the criteria for choosing an AMC remain the same across locations and income classes. |
 The majority of those surveyed preferred buying funds from an AMC. Customers said they would welcome door-to-door visits from mutual fund salesmen, very much like the direct sellers for banks. Over half the respondents felt that buying directly from the AMC would result in better prices. |
 There’s a direct correlation between performance and growth, seen in the fact that the bestperforming funds are also those where the assets under management increased the fastest. This correlation is also seen across time periods. |
 Compared with the affluent and the mass of investors, high networth individuals pay far more attention to the performance of a fund and fund manager. In fact, a good 64% do their own research and analysis before investing in a fund. |
 Indian HNIs invest the most in mutual funds. They also seem to be among the most equity-averse investors in the world, and their investment in alternate assets is among the lowest when compared with their peers in China and Singapore. |
 While awareness of mutual funds has been steadily going up, few investors, even in the HNI category, are aware of global mutual funds. Because awareness is low, there are only few funds offering outbound investments in India. As awareness increases, it is possible that more funds will enter the market. |
Data source: McKinsey survey— "Indian Asset Management: Achieving Broad-Based Growth" |
