In this part, we share findings from the AMC confidence section of the survey. We asked leading IFAs from across the country, who were invited to participate in this survey, to list out their top 5 AMCs on each of these parameters:
Ability to deliver superior long term returns from equity funds Ability to deliver healthy returns from debt funds, with lower volatility Distributor engagement and support Distributor training Innovate new products and services and new sales ideas Impactful and relevant investor education initiatives Convenient, investor friendly processes and approach
We asked participants to name and rank only their top 5 in each category - as mindshare rarely goes beyond 5 names for each parameter. In the tables below, we have listed out and ranked the top 10 AMCs that featured the most in the lists provided by the 213 leading IFAs who participated in this survey. Each of the names mentioned here across each region therefore features in the top 5 list of some, many or most of the leading IFAs in each region. Below each table, a reference table has also been provided that compares ranks on each parameter in this survey with the previous three annual surveys.
Equity Champions
ICICI Prudential continues to be the No.1 choice of advisors for equity funds for the second year in a row, and has consolidated its position by emerging as the favoured choice across all four regions. Franklin Templeton has strengthened its position from No.3 last year to No.2 this year. Birla Sun Life continues its upward march, from 6th position in 2013 to 5th in 2014 and now to 4th position in 2015. Motilal Oswal has muscled its way into the top 10 for the first time, with a very creditable No.6 position in the All India rankings and a 5th/6th position across all 4 regions. Mirae Asset made it into 2 regional top 10 lists, but missed out on the All India top 10 list. Presence of smaller fund houses known for their equity expertise reiterates the point that size alone is not what matters - at least to the leading IFAs in India.
Debt Champions
There is no change in the pecking order of the top 3 from last year. Franklin Templeton extends its domination at the No.1 position for the 4th consecutive year and Birla Sun Life maintains its No.2 position for the 3rd consecutive year. ICICI Prudential maintains its No.3 slot for the second year running while Reliance and HDFC swap positions in 4th and 5th place. Kotak makes a comeback into the top 10 list after missing out last year.
One striking feature across both debt and equity is that the top 5 names in both lists are the same: they include the "Big 4" of the industry: HDFC, ICICI Pru, Reliance and Birla Sun Life, with FT completing the list of 5. It appears that as far as mindshare of leading IFAs is concerned, we have a "Big 5" list, which has remained unchanged for the last 2 years.
These mindshare rankings are often a good indicator of likely business flows over the coming quarters, as market share inevitably follows mindshare. The message from this pecking order seems to be that this "Big 5" set can perhaps look forward to consolidating their business momentum in the coming quarters, but need to be watchful of emerging competition from agile and hungry players in these top 10 lists.
Distributor engagement champions
Until last year, we had clubbed distributor engagement, support and training under one question. This year, we carved out training as a separate question, given the huge focus that many fund houses are putting into distributor training.
On distributor engagement and support, leading IFAs have maintained ICICI Prudential's top rank as also Reliance MF's rank at No.2 position. Birla Sun Life and FT swap places at 3rd and 4th positions, and DSP Blackrock retains its No.5 position. There is only one change in the All India top 10 list - with Motilal Oswal coming into 10th place, replacing JP Morgan.
Speaking of distributor training, Reliance has an "Edge" over others, making it to the No.1 position. FT and DSP Blackrock take the next two slots, with ICICI Pru and Birla Sun Life completing the list of the top 5 distributor training champions.
A word of caution in interpreting these findings: some AMCs focus more on training smaller IFAs, some on training the bigger IFAs and some on training all. Since our respondents are largely the bigger IFAs, the rankings reflect perceptions of leading IFAs and not all IFAs.
Innovation champions
ICICI Prudential retains its pole position as the innovation champion, with Reliance strengthening its position from the No.3 slot last year to No.2 this year. DSP Blackrock jumps up two slots to 4th position - perhaps IFAXpress has a role to play in this move. Two companies that have dared to be different - Motilal Oswal and Edelweiss - are both recognised by leading IFAs here in the innovation champions list.
A word about Axis - its perhaps the only fund house outside the top 10 by AuM, which has made it to 6 out of 7 of these top 10 lists on different business parameters. By capturing distributor mindshare on most business parameters, Axis seems set to maintain its high growth momentum and make its way into the top 10 list by AuM.
Investor education champions
With a flurry of high impact initiatives including the web and social media presence of Jaano Toh Maano, its well received "My First Pay Cheque" program for new salary earners and its high impact regional media partnerships in B-15 towns, its no surprise that Birla Sun Life makes it to the No.1 slot as the investor education champion. ICICI Prudential and Reliance join Birla Sun Life to make up the top 3 on a parameter that is perhaps closest to the regulator's heart, and an initiative that will in due course become the largest business driver for our industry in the years and decades ahead.
Investor Service Champions
Reliance takes No.1 position on this critical parameter, up from the No.3 slot last year. The top 3 remain the same, with positions being swapped between Reliance, ICICI Prudential and FT. DSP Blackrock moves up 2 positions, and Axis makes its debut into the top 10 list this year.
To conclude
Wealth Forum congratulates all fund houses that have been named in these lists by India's leading IFAs. It's a competitive world, and with over 40 fund houses in the market, getting into the top 5 of mindshare among distributors on diverse business parameters, is indeed quite a challenge. Mindshare today is market share tomorrow - that's an old adage in the sales world. What our leading IFAs have given us is a peek into who's likely to win market share in the coming quarters.
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