ICAA will be hosting its annual mega convention inDarjeeling between 29th and 31st Jan, 2025. Two major themes this convention will focus on will be VUCA and succession planning.
VUCA – volatility, uncertainty, complexity, ambiguity –has been a feature of markets for some years, and fund managers and investors continue to come to terms with dealing with this phenomenon. For distributors, there’s an added layer of complexity in the form of product categories like AIFs and GIFT City funds that they have to understand and guide investors on and uncertainty is getting highlighted due to lack of succession planning.
Goutam says HNIs are increasingly being sought out directly by AIFs, which makes it imperative for MFDs to dive deep into these products and guide clients appropriately. This convention will give participants a good understanding of the world of AIFs. Likewise, NRI clients are keen to understand more about GIFT City products.
Succession planning is clearly the need of the hour – in East alone, Goutam estimates that over Rs.4000 cr of MFD AuM is orphaned due to lack of proper succession planning.
For most small and mid sized MFDs, getting their next generation to take interest in this business is proving to be a challenge. Other options including alliances must be explored and acted on quickly.
This convention will have CAs, lawyers and RTAs who will explain how to go about merging firms and building alliances among like minded MFDs.
Goutam asks a pertinent question: if a 65 year old MFD counsels a 35 year old client to start a 25 year SIP for his retirement, and the client turns around and asks him, “I will start this 25 year journey, but how long will you be there with me”, what answer will the MFD give? You need to find this answer NOW.
Goutam invites MFDs from across India to participate and shares logistical details and costs.