WF: Industry AuM reached a new high of Rs. 8 lakh crores in Nov 09 - which few people would have predicted in Jan 09. Do you see the industry AuM crossing the magic 10 lakh crores figure in 2010?

It may not. Given that most of it is in liquid/short term segment the AUMs will fall by March 2010.

WF: One of the biggest challenges that the industry is facing is that despite a sharp recovery in equity markets, net inflows are not coming into equity funds over the last few months. Why is this happening and what can be done to remedy this situation?

   1. the distribution system was in a bit of dilemma but seems to be getting back into action.

   2. the IFAs for some reason are not in the arena-they will need to come back.

WF: 2009 saw two big developments for the industry : the ban on AMCs charging entry loads and the emergence of stock exchange platforms for mutual funds. How do you see these developments from an industry perspective?

The reach will certainly improve because of the trading platforms but will take some time to stabilize.Distributors will be looking at higher volumes to sustain revenues.

WF: What do you see as the big trends for 2010 - from an AMC industry perspective and from a distribution perspective?

1. AMCs will have a challenging period ahead in selling their products.

2. distributors will be looking at a new business model to adapt to the emerging situation.

WF:What are your plans for 2010 - products, investment management, distribution, communication? What are your key focus areas going to be this year?

1. aggressive selling of our existing products .

2. sustain decent fund(s) performance levels.

3. costs management.

4. stay in constant touch with investors/distributors.

WF: A number of distributors have shifted focus to alternative products like company FDs and insurance. What can be done to get them to re-focus on mutual funds?

They already have a infrastructure in place.They will be looking at some new business models to sell MF products.

WF: Some observers believe that flows from Tier II and Tier III cities have more or less vanished and that business is getting concentrated back into larger cities. Is that a trend you see in your business? How adversely have market penetration initiatives been impacted over 2009 and what can be done to enhance penetration into smaller towns in 2010?

1. PSU banks , who have started the cross selling function, will be able to step up business in the tier II and tier III cities.

2. Regional distributors/IFAs will also be playing a key role.

3. Informed buying by investors may also play a role in expanding reach.

WF: Platforms have been one of the big buzz words in 2009. We have seen the emergence of stock exchange platforms, the joint CAMS-Karvy advisor platform FINNET and we have an AMFI platform in the pipeline. In parallel, we have a number of super-distributor platforms meant for IFAs. In 3 years time, what role would platforms have carved out for themselves? Do you see a trend of IFAs gravitating towards platforms?

Platforms will help distributors in facilitating transactions. Investors will still be needing distributors support in investment advice and asset allocation.

WF: What are your key messages for your distribution partners as we begin a new year?

Let us work together.