NIMF has crossed Rs. 6 lakh crs in AuM on the back of sustained gain in market share and customer base by focusing across all asset classes and investor segments including retail debt – which is often ignored.
NIMF has been consistently advocating a strong retail debt push by distributors to not only serve their clients more holistically but also enhance their wallet share and turbo charge AuM growth as debt ticket sizes are a lot higher than equity.
Launch of its Income Plus Arbitrage Active FoF is a big step forward in pushing the agenda of building a retail debt book as the product clearly has the potential to emerge as the industry’s flagship retail debt offering.
Tax efficiency, lower volatility and therefore higher predictability of returns and liquidity make this product category the industry's best foot forward to compete with traditional fixed income instruments.
The industry has over 18 cr equity folios from over 4 cr unique investors – giving an average of around 4.5 equity folios per investor. In sharp contrast, the industry has less than 70 lakh debt folios from the same investor base – meaning that only 1 in 6 investors has just 1 debt folio in their portfolio, and the rest have none.
NIMF’s success in growing its retail debt book over the last financial year is ample proof that there is a large available market opportunity for those who seek it out actively and work purposefully on it.
NIMF’s Income Plus Arbitrage Active FoF will intentionally restrict the range of its debt funds that this new fund can invest in only to short and medium duration funds. Cutting out long duration funds helps cut down volatility in returns – which is the primary ask if you want to target traditional fixed income instruments.
With a product that competes very well against bank FDs and with the knowledge that your own clients are heavily underinvested / not invested at all in debt funds, there is a massive opportunity for MFDs to take this product to every client of theirs, offer them a better alternative, increase wallet share from clients and spur AuM growth.