Page 18 - Banking Finance April 2019

MUTUAL FUND

Reliance Mutual Fund customers can now carry out ICICI Pru Mutual Fund

voice-based transactions launches Bharat Con-
Customers of Reliance Mutual Fund can now carry out voice-based financial sumption Scheme
transactions, with Reliance Nippon Life Asset Manage-
ICICI Prudential AMC announced
ment (RNAM) partnering with internet major Google.
launch of
For the first time in India, Reliance Mutual Fund for
its customers is introducing a conversational interface the ICICI
that would help customers shop with the fund "just by Pruden-
listening and speaking to your smartphone or digital tial
device through a series of voice commands," RNAM said in a release. In the Bharat
first phase, the functionality would be launched in Reliance Simply Save app for Consump-
the customers and then subsequently in Google Assistant platform for access tion
Scheme. The Scheme aims to benefit
by all existing and potential investor, it added.
from the Indian consumption story,
According to the company, out of all new customers for the fund in a month, considered as one of the fastest grow-
"digital contributes to 50-55 per cent of the new customers". RNAM CEO ing consumption markets globally.
Sundeep Sikka said the company has enabled voice-led financial transactions, The benchmark for the Scheme is
adding that "we are of a firm belief that going ahead, voice is going to be the Nifty India Consumption Index and
primary medium for bringing in digital inclusion across the masses". will be managed by Rajat Chandak
and Dharmesh Kakkad. The overseas
myCAMS crosses 2.5million registered investors for MF investments of the scheme will be
services managed by Priyanka Khandelwal.
IT enabled service partner and mutual fund transfer agency Computer Age "Globally, it has been observed that
Management Services (CAMS) said it has crossed 2.5 the moment a country's per capita
million registered users using the company's mutual GDP crosses $2,000*, there is a dis-
fund platform myCAMS. The percentage of investors proportionate rise in discretionary
signing up from cities beyond the top 30 locations spending and India is poised to cross
this milestone in 2019-20," Nimesh
has been on an increase, making a strong demand
from smaller towns, the city-based company said in Shah, MD & CEO, ICICI Prudential
AMC, said on the launch of the
a statement.
scheme.
"At CAMS, we are committed to delivering convenience and user friendly ser-
"With the largest millennial popula-
vices by leveraging technology and digitization", says Anuj Kumar, company Presi- tion globally, India offers a growth
dent and Chief Executive Officer. "We are happy to see myCAMS grow in strength
potential for consumer markets and
and become the preferred choice of over 2.5 million mutual fund investors. It is
retailers as millennial differ from
interesting to note that the first million registrations took about three years while previous generations by their
next million plus investors registered in half that time", he said.
lifestyle choices, consumption pat-
tern, significant need for conve-
Mutual fund inflows drop by 59% from last year nience and brand preferences," he
The net inflow in Indian mutual funds has dropped by two-thirds on a yearly basis added.
to a six-year low in 2018-19 (till February), owing to higher volatility and low yields. The primary drivers for consumption
According to data available with the Association of Mutual Funds in India (AMFI), are likely to be 1) Rising income and
the net inflow into mutual funds in 2018-19 till now stands at a mere Rs 1,32,058 expansion of the middle-income seg-
crore, down 59.1% from Rs 3,22,549 crore till February last year. ment 2) Diverse population within In-
Mutual fund inflows have consistently dropped for two consecutive years. Dur- dia 3) Increasing Urbanisation and 4)
ing the first 11 months of the fiscal year 2017-18, the net inflow into mutual Improved connectivity owing to tech-
funds had dropped by 18.9% from Rs 3,97,932 crore in 2016-17. nology advancement.

18 | 2019 | APRIL | BANKING FINANCE