Best Practices for Mutual Fund Distributors to Increase AUM

The first step in scaling AUM is to identify the people you are mentoring for an investment. Every group—young professionals, families, business owners, and retirees—has its own financial needs, risk tolerance, and goals. Take time to understand the full family picture and any business considerations before making long‑term investment decisions.

Best Practices:

• Use comprehensive client‑onboarding forms to capture the client’s life stage, income level, and other crucial details.
• Segment your client lists and recommend product types that fit each segment’s goals and risk profile.
• Create a buyer persona to steer your content, pitches, and service offerings.

In India, a significant portion of potential investors remains uninvested in mutual funds—even when they’ve heard of them—because misinformation keeps them on the sidelines.

Best Practices:

• Arrange online seminars and offline workshops that clearly explain SIPs, ELSS, and the power of risk diversification.
• Send monthly newsletters with market updates and fresh mutual‑fund insights.
• Always obtain the customer’s consent before showcasing a successful investment story to build network credibility.

Pro Tip: Retail clients are rarely financial experts, so simplify complex topics with easy‑to‑understand videos and visual infographics.

Many businesses focus so heavily on transactions that they overlook the long‑term, relationship‑driven foundations of sustainable growth. The true game‑changer is cultivating client trust and loyalty.

Best Practices:

• Review each client’s portfolio every quarter—even when no fresh investments are pending.
• Stay proactive: reach out during market dips or major news events instead of waiting for the client to call.
• Add personal touches like birthday and anniversary wishes to nurture lifelong loyalty.

Systematic Investment Plans (SIPs) are the cornerstone of sustainable asset‑under‑management (AUM) growth. They generate predictable inflows, lower the risk of premature withdrawals, and lay a steady foundation for future wealth creation.

Best Practices:

• Leverage benefits such as rupee‑cost averaging and the power of compounding.
• Use SIP calculators to illustrate various investment amounts and their future value projections.
• Encourage annual SIP top‑ups to steadily increase investors’ contribution levels over time.

In an era where convenience is paramount, MFDs must deliver a seamless, hassle‑free digital experience—from first onboarding to day‑to‑day portfolio tracking.

Best Practices:

• Use digital onboarding tools with eKYC and paperless documentation to speed up and simplify account setup.
• Offer mobile apps or client dashboards so investors can easily track and manage their portfolios.
• Maintain an intuitive, regularly updated website backed by responsive tech support—this is now non‑negotiable for clients.

Customers highly value a personal, all‑inclusive approach from their mutual‑fund distributor. By offering services beyond mutual funds, you strengthen your reputation as a trusted advisor and unlock new income streams.

Best Practices:

• Deliver holistic guidance on retirement planning, children’s education funds, and tax‑efficient strategies.
• Leverage goal‑based planning tools and apps to help clients visualize and track their financial journeys.
• Collaborate with chartered accountants and insurance advisors to provide truly end‑to‑end financial solutions.

Client acquisition can be expensive, while retaining an existing client or reactivating a dormant one is much more cost‑effective and profitable in the long run.

Best Practices:

• Identify dormant clients and re-engage them with personalized strategies to rekindle their interest.
• Introduce new fund offerings or portfolio rebalancing ideas to keep clients invested and aligned with their goals.
• Track SIP drop-offs and follow up promptly to prevent long-term losses and ensure clients stay on track.

Just as clients have financial goals, MFDs should set and monitor business KPIs, such as AUM, SIP book size, average ticket size, and client acquisition cost, to ensure growth and efficiency.

Best Practices:

• Set KPIs that are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART).
• Analyze redemption trends regularly and identify areas where client investments are leaking.
• Use dashboards and tools for real-time AUM tracking and to gain valuable business insights.

Word-of-mouth marketing remains a powerful tool in the financial services industry. Happy clients can become your best promoters, helping expand your reach and build trust.

Best Practices:

• Encourage referrals by offering rewards (compliance permitting) or exclusive access to insights and services.
• Feature client testimonials in "Client Success Spotlight" newsletters to showcase positive experiences.
• Request Google reviews and LinkedIn recommendations to enhance your online presence and credibility.

As a regulated profession, staying updated on compliance is non‑negotiable. Clients place their trust in advisors who demonstrate strong ethics and possess a deep understanding of industry standards.

Best Practices:

• Attend AMFI refresher courses and certifications to stay informed on industry regulations.
• Share regulatory updates with clients in simple, easy-to-understand terms to keep them informed.
• Maintain transparency on commissions, fund expenses, and potential conflicts of interest to build trust and credibility.

Your social image speaks volumes before you even say a word. From your website to your social media presence, your digital brand plays a crucial role in building trust and attracting inbound leads.

Best Practices:

• Invest in a professional website that includes services, client testimonials, blogs, and useful calculators to engage visitors.
• Share market updates and investment tips regularly on LinkedIn, Instagram, and WhatsApp groups to stay top-of-mind.
• Leverage SEO and Google My Business to attract local investors and improve your online visibility.

Data analysis can be a game-changer in identifying customer needs and growing your AUM efficiently, allowing you to make informed decisions and tailor your strategies.

Best Practices:

• Focus on clients who are close to meeting their targets by identifying the necessary funds for them and offering portfolio upgrades as required.
• Take action on underperforming portfolios by providing timely recommendations for rebalancing and improvements.
• Break down your investment behavior into segments and create targeted campaigns for each segment, improving the overall effectiveness of your marketing efforts.

A modern, consistent, and dependable brand identity will not only help you blend in but also stand out in a cluttered financial ecosystem.

Best Practices:

• Define your targeted audience (e.g., millennials, NRIs, HNIs, retirees) and tailor your messaging to resonate with them.
• Ensure consistency in your brand elements—logo, colors, and tone of communication—across all platforms where you are visible.
• Keep your branding simple, memorable, and respectful of your customers’ preferences. For example, a tagline like "Invest Right, Live Bright" could encapsulate your values.

Make the best use of your time by focusing on projects that will generate revenue for your company. Once those are in place, automate the more routine and mundane tasks to free up time for high-impact activities.

Best Practices:

• Set up a specific registration process for meetings, SIP renewals, and follow-ups through CRM software to streamline client interactions.
• Automate routine tasks such as generating reports, sending birthday greetings, and issuing investment memos to save time and increase efficiency.
• Outsource office or marketing tasks when possible to allow you to concentrate on critical business areas like client servicing and revenue generation.

High-performing advisors are well aware that they must capitalize on modern tools and technologies to stay competitive. The latter is one of the cornerstone components of management. Their client portfolios, documentation, compliance, and communication are not only consolidated on a single platform but can also be managed efficiently and effectively by them. Suppose you are engaged in a considerable amount of work on one platform or simultaneously using other online applications, such as WhatsApp, or working on paper and carrying it with you. In that case, it is high time to replace that with a tool.

Use Jezzmoney, an MFD-tailored solution, a shot. From digital onboarding and SIP tracking to analytical and instantaneous report generation, Jezzmoney is your easy button for growing your distribution business without breaking a sweat and doing it faster than your competitors.