How Mutual Fund Software for distributors in India Can help Unlock Rural Potential?

Author : REDVision Redvision | Published On : 16 Jan 2024

Over the last decade, the mutual fund industry in India has seen an unprecedented growth by reaching to Rs. 50 lakh crores assets under management (AUM) as of December 2023. However, the penetration of mutual funds in rural areas is still very low, with only 18% of the AUM coming from beyond the top 30 cities.

This indicates a huge untapped potential for mutual fund distributors to expand their reach and client base in the rural markets. Rural markets are the new frontier for mutual funds, as they offer several advantages for both the investors and the distributors.

Why mutual funds are preferred by investors?

Because they offer diversification, professional management, and tax-saving, also help investors achieve their financial goals.

For the distributors, rural markets offer a large and loyal customer base, lower competition, and higher margins.

However, acquiring and servicing rural clients is not without challenges. Some of the problems are:

- Low awareness and financial literacy in rural areas

- Regulatory and compliance needs

- High logistics cost How can MFDs overcome this challenge? Mutual fund software for distributors in India can play a vital role here.

Wealth management software is a comprehensive and user-friendly platform that enables distributors to manage their entire mutual fund business online. It helps them to:

- Create and maintain a digital presence and attract new clients through websites, social media, and online campaigns

- Educate and inform rural investors about the benefits and features of mutual funds through presentation, and calculators.

- With customized mobile apps, investors can access Provide online access and convenience to rural investors through mobile apps

- Offer personalized advice to rural investors based on their risk profile, goals, and preferences - Automate the transaction and reporting to reduce the paperwork and manual errors

- Monitor and track the performance and portfolio REDVision Technologies offers robust and reliable fund management software that helps distributors grow their businesses and serve their clients better.

Some of the features and benefits of investment software are:

- Easy and quick setup and integration with multiple AMCs and platforms

- Access to real-time and historical data and analytics of mutual funds and markets

- Ability to create and manage multiple portfolios and schemes for different clients

- Support for online KYC, SIP, STP, SWP, and other transactions and modes of payment

- Generation of various reports and statements for the clients and the regulators

- Provision of training and support to the distributors and the clients

- Compliance with the latest rules and regulations of SEBI and AMFI To conclude, fund tracking software is a powerful and essential tool that can help distributors tap into the lucrative and growing rural markets.

It can help them to overcome the challenges and leverage the opportunities that the rural markets offer. By software, the distributors can increase their revenue and profitability and positively impact the financial inclusion and empowerment of rural investors.