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WF: What is the thinking behind your new IE campaign "The best thing money can buy"?
D P Singh: I believe it is true indeed. How many times have we thought of investing part of that bonus amount we get or a policy amount that has matured, but instead we have just spent that away? Could we have done better? Just look at a friend or an acquaintance who has created wealth for himself / herself. What have they really done? Have they only spent or have they chosen to invest wisely? Wherever you go, you will find that the ones who have wealth today, had spent on one thing always : buying more money through prudent investing. Hence our campaign thought. Every saver, every person with a disposable income can create considerable wealth for their future and make it secure. They just need to always keep money to invest on their shopping list!
WF: What are the contours of this campaign in terms of media, reach etc?
D P Singh: The campaign is a mix of Outdoor, Print and Online and seeks to reach out to savers and potential investors throughout the country. We are covering close to 70 tier 1 and tier 2 cities through the Outdoor medium on a long term basis. We are very focussed on Social media to reach out to the young audiences. Regional newspapers, personal finance / general interest magazines and financial dailies will form the bulk of our print reach.. In Delhi, we are using the metros and metro stations as key mediums to reach out to audiences.
In order to have the ground level reach and execution to the campaign, we are conducting focused Investor Awareness Camps across these cities during the same period. To help in greater and faster KYC compliance we shall be using Biometric scanners in a big way, thereby attracting a large number of investors.
WF: How are you planning to ensure that this message reaches the specific target audience of beneficiaries of the 7th Pay Commission?
D P Singh: We are looking to focus on those areas which will receive maximum payouts from the 7th Pay Commission. With a focussed approach and an efficient mix of mediums we are confident of reaching out to this majority through our channel partners. We are also reaching out to PSU corporations and their employees through work site camps and initiatives in these areas to make our campaign more effective.
WF: How large is one-time payout in terms of arrears etc from the 7th Pay Commission? Is this campaign mainly targeting the lumpsum payouts or the enhanced monthly salaries as well?
D P Singh: Though it is difficult to state a number, it is expected that the amount will reflect a merger of DA with basic pay and hence it may be less to that extent, but still significantly large. The cost to the exchequer is estimated at Rs. 1.02 lakh crores. Of this, a significant proportion will go towards retirement benefits - PF, pensions etc - which from a flows perspective, is not going to come into the system now. It is estimated that the incremental inflow - which will be available to 7th Pay Commission beneficiaries this year, will be around Rs. 25,000 crores. That's the amount that will either be spent or invested wisely.
Any kind of investment is appropriate as long as one does it consciously. Yes, one can start with putting in a part of the lumpsum payout received in arrears into Mutual Funds but that should be just a start. A healthier habit would be to allocate a part of the increased salary every month into SIP's. We all know the power of SIP's and that can be harnessed by all the beneficiaries for a better and secure future for their families and themselves.
WF: In what way can distributors work with you to take this message to beneficiaries of the 7th Pay Commission and encourage them to invest rather than spend away their gains?
D P Singh: Our partners in fact have a bigger and more crucial role to play reaching out to retail investors. Good advice and guidance is what is sought most by investors. Distributors must convey the crucial message of financial planning. There has been a thought that most of the beneficiaries are in an older age group and hence may not fit in with the regular investment portfolios which is normally suggested. While the age factor may be there, there is no age limit to prudent investing. There are thousands of savers who are planning their retirement and need guidance. They are shy to invest since they think investments are all about the Stock Market. It is our job, together with our partners to dispel this myth. Monthly Income Plans, Balanced Funds, Savings Funds can be perfect options to such audiences and can help in this change of mindset. And this will be such a novel approach, bringing in financial freedom, security and stability to so many people all across.
The other message I would urge our partners to communicate to investors is the changing environment and emphasis around tax compliance in the country. Sharper focus on tax compliance is good news for tax efficient products, and mutual funds score very high on this parameter. We need to reiterate not just the wealth creation potential but also the tremendous tax efficiency of our products.
I urge all our partners to approach this cause with the greatest commitment. Work with us to make people think 'invest before spending' rather than 'spend first'. We would love to support and partner with you in your efforts on ground. Just reach out to our network of branches and our relationship managers throughout the country.
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