Direct mutual fund sales via smartphones may be key to tapping India's retail fund market, especially in rural areas.
The prediction, from consultancy Cerulli Associates, may be a useful guide to asset managers hoping to engage a market where an estimated 93% of households do not own funds.
"Consumers in India are known to have leapfrogged personal computers and gone to mobile, and this medium might be key to reaching out to even more retail investors," says a statement by the consultancy's Singapore office.
The growth trends in the Indian market are encouraging for asset managers. Cerulli's data suggests assets under management in the Indian market grew more than a quarter to more than 10 trillion rupees ($160 billion) in 2014, the fastest yearly growth since 2008.
However, sending marketing messages to India's vast population, especially those living in rural districts, presents a challenge. Cerulli says companies such as SBI Mutual Fund, ICICI Prudential and DSP BlackRock are exploring a range of online and mobile channels to reach potential customers.
"Channels already being used include social media, blogs, and online advertisements through third-party websites, as well as webcasts and podcasts," says the consultancy.
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