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After corporate tax cut, Modi government likely to reduce personal income tax

Team Cafemutual, Oct 23, 2019

Bibek Debroy, Chairman of the Economic Advisory Council to the Prime Minister has said today that after the recent corporate tax cut, the Narendra Modi government is likely to reduce income tax for individuals. He was speaking at Cafemutual Confluence 2019.

Here are some key highlights of the event:

Randall Bachman, Head of Business Development, Principal International USA

Top things that investors across the globe are looking at:

• Less volatility and more consistency
• Customized financial products
• Simplified investment process and less paperwork.
• A better life, not just better finances.
• In their advisor, investors look at qualities such as trustworthiness, confidence, consistency and reliability

Takeaways from a panel discussion on attracting millennials

D.P. Singh, ED & CMO, SBI MF

• Merge the narrative of saving with investments through mutual funds

Nikhil Naik, MD, Naik Wealth Planners

• We have recruited people below 30 years of age to interact with millennial investors.

Mohit Gang, Co – founder & CEO, Moneyfront

• IFAs can post videos and write blogs to reach out to millennials. This is one of the most cost effective ways to acquire young clients

Arpita Vinay, Whole Time Director, Centrum Wealth on attracting millennials:

• Being relevant in the circle of influencers helps attract millennials

Jignesh Desai, Promoter, NJ India

• Average cost of acquiring a customer is more than Rs. 1000

Raghuveer Sampath, Director, Citibank on attracting millennials

• Millennials do not care a lot about big brands. For them it is more about the moment of engagement.

Panel on what the retired need in their golden years

Amit Bivalkar, Director, Sapient Wealth

• IFAs can use metaphors to create awareness about mutual funds. I personally tell people that no one is going to give you a loan once you retire. I also tell them to plan retirement because you do not want to die rich. Instead, you want to live rich

Rajesh Sodhani, Founder – Sodhani Investments

• Retirement is also a pitch for young people. We are planning retirement even for children of our clients!

Gaurab Parija, Head – Sales & Marketing, IDFC MF

• IFAs have to change investor’s mindset about retirement. Currently, most investors do not think about retirement

P V Subramanyam, Author & trainer

• Fund houses should give more emphasis on retirement planning

Panel on how to woo the rich

Karan Bhagat, Founder, IIFL Wealth & Asset Management:

• Product innovation opens the door to woo rich clients. Hence, product innovation is to us what Sacred Games is to Netflix. However, you need to keep coming with good results to ensure the client stays with you

Ankur Thakore, National Head – Sales & Distribution, L & T MF

• Trust is a bigger factor than product innovation to get a higher wallet share of rich clients

Raghavender Ganta, Segment Head, Nippon India MF

• ETFs could attract HNIs due to its low cost

Shiv Gupta, Founder & CEO, Sanctum Wealth

• Introduction of digital mediums has changed the advisors business and it will continue to evolve in the near future.

Tarun Birani, Founder & CEO, TBNG Capital Advisors

• If you cannot understand a product in 60 seconds, then there is a challenge in the product

Address by Bibek Debroy on economic priorities and challenges of Modi 2.0

• Modi 2.0 is a continuation of Modi 1.0. Modi 3.0 will be a continuation of Modi 2.0
• Let us not get swayed by the quarterly growth numbers
• India has a federal structure. Hence, for India to grow at a faster pace, states need to grow at a faster pace
• After corporate tax cut, personal tax is also likely to reduce
• India’s growth rate to inch up to 7% by next year.

Mutual Fund CEOs’ panel on the top 5 drivers of growth

Saurabh Nanavati, CEO, Invesco MF

• MF industry need to collaborate with other industries for seamless transaction

Sanjay Sapre of Franklin Templeton Investment

• For MF industry to grow, the number of investors should be given more emphasis than AUM

Sunil Subramaniam, MD, Sundaram MF

• Increase the wallet share from your clients – Get more of customer’s safe money than their risk money

Swarup Mohanty, CEO, Mirae Asset MF

• In all industries, the war is on the product and it is AMCs’ responsibility to maintain product sanctity.

Kailash Kulkarni, CEO, L&T MF

• We need to show investors relevant data during tough times. This will help them understand the need to stay invested during tough times

Prathit Bhobe, MD and CEO, Tata MF

• IFAs should look at products like PMS and AIFs as well

Panel on serving the underserved

Nishant Patnaik, Associate Editor, Cafemutual

• Underserved investors is an untapped opportunity for the MF industry

IFA Ritesh Sheth

• Underserved investors need safety of capital, liquidity and a face (distributor) who is representing the product

Debashish Mohanty, President & Country Head, Retail Business UTI MF

• Fund houses should mentor IFAs in small cities and towns so that they can grow their business by reaching out to underserved

Jatinder Pal Singh, Mahindra MF

• Of the 1 bps with AMFI, half of it should be allocated for the grooming of distributors

Saugata Chatterjee, Co- Chief Business Officer, Nippon India MF

• Every IFA should introduce at least three members from their circle to the MF distribution industry. This way we will have 2.50 lakh distributors joining the industry

IFA Paresh Shah

• I don’t have command over English, so I looked for investors who don’t know English

Biju Dominic, Co-Founder & CEO, FinalMile Consulting addressing a session on using the power of persuasion to increase adoption of mutual funds

• Stop throwing numbers and jargon to make mutual funds more popular

• Need to work persistently to build trust

A panel of mutual fund industry’s top fund managers on the current market scenario

Prashant Jain, ED & CIO, HDFC MF

• There are many reasons to remain optimistic about the Indian economy. For equities, positives like corporate tax cut and decline in interest rate outweigh concerns over GDP slowdown

Navneet Munot, CIO, SBI MF

• Average is one of the worst human inventions. It hides a lot of things

Anoop Bhaskar, Head – Equities, IDFC MF

• Today, for a 3-year horizon, small cap funds could be a good bet

S. Krishna Kumar, CIO – Equities, Sundaram MF

• Valuation in small and mid-cap funds are currently attractive

Amandeep Chopra, Head-Fixed Income, UTI MF

• Incremental rate cuts from current levels is not going to help growth

Avnish Jain, Head – Fixed Income, Canara Robeco MF

• I don’t see aggressive rate cuts from now