In the face of sharp decline in asset base, some mutual fund houses are seeking to gain investor confidence by introducing newer marketing features.

Bharti AXA, SBIMF and Tata Asset Management have come up with business development initiatives to draw investor attention.

Bharti AXA has introduced a product feature called 'Zero Balance Portfolio', where the fund house will feed information about products and services on daily basis either through email or by post. The AMC is offering the service across India through its distribution network free of cost.

"We will not force a subscriber of this service to buy our schemes. The idea is to educate investors about products with their long term return potential. After being fed by veritable facts, an investor will automatically take interest in schemes," said Vikaas Sachdeva, Country Head – Business Development, Bharti AXA Investment Managers.

Laying thrust on the Internet medium, Tata Asset Management has uploaded an audio speech of its managing director Mr. Ved Prakash Chaturvedi explaining investors the pros and cons of market recession with reference to Tata's 'reasonable' scheme returns.

"We always claim reasonable returns from our fund schemes. In this bear market, now we feel vindicated in respect of miserable performance of certain schemes which projected extraordinary returns during bull-run. We now aim to disseminate our trust worthiness in generating reasonable returns and bring back those investors who were earlier misguided," said an executive at Tata AMC.

The fund house has posted meticulous details of its portfolios on the website along with weekly market movements. It is also focusing on brand advertisement with no cut in ad cost even in this tight liquidity.

While Bharti AXA is getting good response in terms of free subscription on zero balance portfolio and expects the subscription to grow manifold by November end, fund houses like SBIMF and Birla Sunlife are intensifying their marketing efforts in increasing its SIP subscription.



"Our marketing blitzkrieg on SIP will continue to intensify through our all distribution networks nation wide," said Achal Gupta, managing director, SBIMF.

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Recovery started since October 27th was halted today as equity markets retreated sharply after opening higher and ended deep in the red. The 30-stock Sensex of the BSE resumed with gains of 300 points in early trades and touched an intra-day high of 10,945. However it could not hold on to the gains and drifted into the negative territory.  The Sensex ended the day with a loss of 511.11 points, or 4.81% at 10,120.01 after touching a high of 10,945.41 and a low of 10,051.52. The broad-based NSE Nifty fell 147.15 points, or 4.68% at 2,994.95 after hitting a high of 3,240.55 and a low of 2,971.00. Index heavyweight Reliance plummeted by nearly 13%, becoming the top loser in sensex followed by Tata Steel, which fell 10% in todays trade. Steel giant Arcelor-Mittal said that it is going to cut production in US and Europe and will reduce supplies to Asia and Africa due to lower steel prices. Bears pulled the market sharply lower in late trade snapping last five sessions of bull dominance.

Barring Healthcare index, which closed with a gain of 1.2%, all the BSE sectoral indices finished in red. Oil & Gas and Metal indices took the sharpest knock, falling 9.4% and 6.9% respectively. Wipro and Satyam were the top sensex gainers, up 2.7% and 0.3% respectively.

 

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