Sharekhan is aiming to achieve 30 percent of its overall mutual fund business through its newly launched online platform InstaMF, said Jaideep Arora, Chief Executive Officer, Sharekhan.
In an interview to Moneycontrol, Arora said that the company is aiming to be among the top 15 mutual fund distributors in the country with Rs 20,000 crore in mutual fund assets under management, while their endeavor is to achieve 90 percent of transactions digitally.
In three steps, InstaMF enables investors to buy mutual funds or start SIPs (Systematic Investment Plan). The InstaMF facility is available to investors without the need of opening a demat account with Sharekhan.
Below are the verbatim excerpts from the interview
What is InstaMF, if you can explain in detail for our readers?
InstaMF is a pure online platform that makes investing in mutual funds as easy as 1-2-3. It provides an easy, fast and seamless experience of investing in mutual funds without the hassles of paperwork. A KYC compliant investor can actually start investing in three steps which takes just 4 minutes.
You have lot of competitors in this space so what are the unique features that will lure investors to register with you?
InstaMF provides a simplified experience of opening an account and investing in mutual funds. Sharekhan believes in an education first approach and empowers the investor to take informed decisions themselves. The robo advisor – NEO - helps investors to plan and implement financial goals in a pre-determined time frame. NEO gives tailored recommendations based on the investor’s risk profile.
It also continually reviews the investors’ portfolios and provides timely recommendations to keep investments in line with their goals. Sharekhan also provides expert guidance in case a customer requires it at any point of time.
The process of investing online is equally time-consuming at every step – verification, transfer of funds etc. How long will it take to buy into a particular fund in real terms?
The entire process of fund transfer and investing happens instantly through partner banks.
What about those customers who are not KYC complaint? How will you help them invest?
In the first step itself, investors will know whether they are KYC compliant or not. In case an investor is not KYC compliant, Sharekhan executive will get in touch with them within 24 hours to complete the KYC process. Very soon, we are introducing Aadhaar-based E-KYC platform where investors can authenticate using OTP sent to mobile number registered with Aadhar.
How can one register for this portal? What are the transaction charges?
An investor can visit instamf.sharekhan.com, provide Pan and Adhaar details, fill in personal and bank details and start investing. Account opening, investing and access to Sharekhan research and ‘Funds we like’ section is absolutely free.
How many fund houses are empanelled with you for this portal?
35 AMCs are empanelled with us for investing. Currently Insta MF customers can invest in 19 AMCs which covers more than 80% of the industry AUM. We are in discussion to onboard other fund houses.
How many transactions are you targeting through this portal?
We are targeting to achieve 30 percent of our overall MF business through InstaMF. By 2020 we are aiming to be among the top 15 mutual fund distributors in the country with Rs 20,000 crore in mutual fund assets under management. Overall, we also aim to achieve 90 percent of our transaction digitally.
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