Nimesh Shah, MD & CEO, ICICI Prudential Mutual Fund, on educating the investors about the funds, creating trust.
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NewsTranscript
00:00 We have created a separate team, a separate team across the country which directly reports
00:16 into Bombay called as concept sellers.
00:18 Unfortunately what happens in mutual funds, people sell past performance only.
00:23 If you talk to people, they will, even the product managers of various banks, when they
00:28 sort out products, they sort out based on last 3 years performance, last 1 year performance
00:32 etc.
00:33 Ratings of mutual funds also happen based on last 3 years and 5 years performance.
00:39 Now we ourselves say past performance is no indicator of future.
00:44 So how does one, we have created a team of concept sellers who have been able to, a fund
00:51 which has not done well in the last 1 year but is a good fund, managed by a good fund
00:56 manager, the philosophy is right, is positioned very well, maybe has got a good chance of
01:01 doing well in the future because law of averages always takes, mean reversion always happens.
01:07 So we have been able to sell and promote products which may not have a very good 1 year performance
01:13 but we believe this concept will work well in future.
01:16 So what I would recommend to friends and family, I have been able to recommend to a wider world
01:21 saying that don't look at only that fund performance.
01:24 Overall as a company we have been responsible, we have managed the money well, now trust
01:28 us and give us money in a fund which has not done well in the last 1 year.
01:32 So that, what people are trusting us, what is very heartening for me is people are trusting
01:39 us when we say that put money in this fund, right, that this has not done well in the
01:44 last 1 year but we believe it will do well in future.
01:46 When person puts, when people put in money after hearing that from us, it's very, that's
01:51 where recently what is very, I get very happy because recently there was a wealth forum,
01:57 did a survey of most distributors all across the country, 9 cities of India and what came
02:02 out was we were one of the most trusted brands while investing in equity.
02:06 So that was very heartening for us.
02:09 Trust, trust, trust, there is only one word in this business.
02:11 [Music]