The recent AC Nielsen industry research suggested that the topmost reason for investors not choosing mutual funds is "Mutual funds offer a low rate of return" and another significant reason is "Need huge sums of money to invest"
Kotak MF's new SIP campaign takes both these myths head on and busts them in a very engaging manner that's connecting well with investors. The campaign is multi-lingual to ensure wider reach and has a 360 degree coverage of media covering TV, print, outdoor, cinema and digital.
WF: What were the consumer insights behind your very engaging new SIP campaign "Jo samjhega wohi paayega"?
Kaiyomurz: The recent AC Nielsen industry research threw up a few reasons for not investing in Mutual funds. The topmost reason for not investing in MF's was "Mutual funds offer a low rate of return ". Also another significant reason was 'Need huge sums of money to invest'.
Nothing is further than the truth for the MF industry. Hence we decided to tackle these myths upfront. As a firm we firmly believe that the best way for a retail investor to participate in the equity markets is through the SIP route. Hence we decided to break these myths by helping investors in overcoming the psychological barriers of not considering SIP to be an ideal way of investing.
We even have a punch line which says - Jo samjhega wo hi paayega! Implying that if you understand, then only you'll be at a benefit to use MFs to your advantage. We chose the route of using authoritative figures since we generally don't refute / argue with what they say.
In terms of look and feel, we've deliberately maintained a modern, upmarket and urban look and familiar relationships so that it reaches out people in all parts of the country. We think it stands out in the clutter, because of its warmth, relatable characters and allows people to identify with the brand.
We've even gone a step ahead and developed the campaign in regional languages - Gujarati, Hindi, Marathi, Tamil ,Telugu ,Bengali ,Oriya and Kannada besides Hinglish and English since we believe that talking to investors in their language helps in connect and understanding concepts better. It was a small attempt to reach investors better and in a more fruitful manner.
WF: What are the contours of the campaign? What media are you using and how long will this campaign run?
Kaiyomurz: We are following a 360 degree marketing campaign - television commercials, print, cinema, digital and outdoor. The campaign will run in 8 metro cities and 25 tier 2 cities besides our AMFI adopted cities . We believe this is one of the industry's largest regional focus activity so that investors can absorb the message better. The campaign will run throughout March 2016.
WF: In the last 12 months of market volatility, the industry has seen very few SIP cancellations and new SIP momentum seems to be continuing strongly. What has changed at the margin for this welcome investor behaviour in this market cycle?
Kaiyomurz: Yes this is indeed a very welcoming and encouraging sign for the industry. This change in behaviour is a result of increase in financial literacy and attempt by the industry, distribution partners and regulatory body to spread financial awareness. Even with the recent market volatility, we didn't face redemption pressures or face a situation when investors stopped their SIPs. This shows that the investors are accepting market volatility as a part of their investments and are embracing it with grace- using it as an opportunity to invest- rather than creating panic. Guess the investor awareness attempts are gradually bearing fruits!
WF: How has Kotak MF's SIP book grown in the last financial year and in this one? What is your plan for the next financial year?
Kaiyomurz: Our SIP book has grown by around 100% in this financial year. For the next year with the continued trust and faith shown by our distribution partners in us , we hope to continue doing well.
WF: Is the proportion of B-15 SIPs significantly larger than overall B-15 flows? Are SIPs penetrating into B-15 towns better than lumpsum investments? What is your experience with your own SIP book?
Kaiyomurz: Yes ,B-15 SIPs have grown substantially over the previous year compared to the flows in lumpsum . Our own experience has been very encouraging . Our SIP book in B15 this financial year has grown by 80%
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