The expansion and awareness of mutual funds among retail investors has been greatly aided by NJ Wealth, a prominent mutual fund distributor in India. Reaching out to investors across the nation has been made possible by NJ Wealth, which has a strong AUM of over Rs 1,94,600 crore and an extensive network of over 37,000 sub-distributors. The CEO of NJ Wealth, Mr. Misbah Baxamusa, recently provided insights on the expansion of systematic investment plans (SIPs) and the elements that have fueled the mutual fund industry’s overall growth.
Additionally, he talked about the steps NJ Wealth has taken to empower and educate investors so they may choose mutual funds wisely. He also emphasised case studies and success stories that show how NJ Wealth’s services improve investors’ financial demands and results. NJ Wealth remains a major force in defining the mutual fund industry in India, with an emphasis on long-term wealth development and a dedication to financial awareness.
1. Could you provide some information about the expansion of SIPs, or systematic investment plans, in India? In what ways have SIPs aided in the mutual fund industry’s overall expansion?
Ans.) SIP contributions surged to Rs 19,271 crore in March 2024, for a total of Rs 1,99,219 crore for this financial year 2023–24, as the mutual fund AUM passed the milestone of Rs 50 lakh crore. Additionally, the SIP AUM has grown to Rs. 10,71,666 crore. SIP investments have been on the rise in recent years. There has been a 27.73% increase in SIP contributions during the previous fiscal year. (Refer to AMFI)
Due to their accessibility and simplicity, SIPs are a great option for investing. Investors are now aware that little contributions made through Systematic Investment Plans (SIPs) can grow into a sizeable corpus, which will help them meet their long-term financial needs. It is always appreciated when money flow into the sector in a steady, predictable, sticky, and stable manner as it has been enhanced by the SIP book. This indicates that the industry and investor base are maturing as well.
2. As the biggest distributor of mutual funds in India, what role has your company played in the development and education of the nation’s retail investors about mutual funds?
Ans.) NJ Wealth, a B2B2C platform, is among the biggest mutual fund distributors in India, operating a nationwide network of more than 37,000 sub-distributors known as NJ Wealth Partners. Our monthly SIP book is currently at Rs 1,709 crore, and our AUM is currently at Rs 1,94,600+ crore. We are present in more than 185 places and have investors in practically every state, large city, and town in India.
At NJ Wealth, we provide our network of distributors with the tools they need to successfully manage and expand a mutual fund distribution company that serves a sizable investor base. Even though we already have over 31 lakh investors, we think there is still a huge opportunity or potential left. We have a very plain and straightforward message for these investors. To grow wealth over the long term, we advocate for disciplined investments in the appropriate asset classes. We put a lot of effort into instilling our investment philosophy, and we maintain a highly regular schedule for communications and training with distributors as well as investors. It has been over twenty years since we first spoke the long-term SIP language.
3. In recent years, India’s mutual fund distribution market has experienced notable expansion. What elements have led to this expansion, and how has your company taken advantage of these chances?
Ans.) Over the past ten years, the mutual fund industry has experienced significant growth. According to AMFI, assets under management (AUM) increased from Rs 8.25 lakh crore in March 2014 to Rs 53.40 lakh crore in March 2024. Numerous factors, including as the regulatory guidance given by SEBI and the increasing confidence and knowledge of investors through investor awareness campaigns, can be credited to this exceptional increase. Compared to “traditional” investment possibilities, we can today state that mutual fund investments are becoming more and more commonplace and are no more a cutting-edge or novel route for investing.
We think that the ongoing efforts of mutual fund distributors (MFDs) will also lead to the sustainable long-term channelization of actual savings. During a time when there was little awareness of SIPs and widespread mistrust of anything having to do with the equity markets, the MFD community actively promoted and pitched them. Over the years, we have continued to concentrate on our messaging and on-the-ground operations. The last-mile access issues have been significantly resolved by online onboarding, transactions, and enhanced digitalization. These developments have also provided investors more convenience and transparency, which NJ Wealth has fully benefited from. We have consistently overcome obstacles, maintained consistency in our approach, and attempted to turn chances to our advantage.
4. What steps has your business done to inform and empower investors regarding mutual funds? How can you guarantee that people purchasing mutual funds do so with knowledge?
Ans.) The pillars of NJ Wealth are financial inclusion, awareness, and literacy. We regularly provide NJ Wealth Partners with training programmes that equip them with the necessary information and investing methods. Apart from our routine training programmes, we frequently host seminars and sessions for investors and distributors with prominent figures in the sector. Additionally, our distributors require certain publications and material, which are provided by our internal research and publishing department.
Through enabling our partners, we increase the accessibility of investor education. With the help of the Financial Literacy Awareness Programme (FLAP), investors and students can educate and empower themselves with financial literacy through a free dedicated course. Additionally, we offer relevant material on our NJ Wealth blogs, which allows us to actively contribute to raising public knowledge of mutual funds and financial literacy. We want to encourage financial well-being and assist people in reaching their long-term financial goals by providing them with the information and tools they require as investors.
5. Could you provide some case studies or success stories that demonstrate how your company’s services have improved investors’ financial demands and results?
Ans.) At NJ, we think that maintaining calm and patience is essential to accumulating wealth. Long-term investing can help create wealth in addition to helping meet financial necessities. NJ has always made an effort to prioritise its consumers’ requirements. The market is enormous and offers a tonne of chances to get wealthy. In this kind of situation, investors can truly make big returns by keeping to the fundamentals of investing and right-selling.
Our committed NJ Wealth Partners have gone above and beyond to support investors in keeping their composure during periods of market turbulence. Internal research indicates that investors who have trusted NJ Wealth for over a decade have realised median returns of 13.76%*. Additionally, returns of more than 12% have been received by 72.89%* of investors and more than 8% by 96.23%* of investors. The success of long-term, steady, and disciplined investment is demonstrated by the returns made by NJ Wealth investors.
* Internal source
1. Using the XIRR approach, investor returns are annualised and computed for the period from the first investment to March 31, 2024.
2. Value Research has audited and certified the technique used to calculate the XIRR return on mutual fund investments, and the results are shown in a certificate dated May 31, 2023, which is in NJ India Invest Private Limited’s favour.
By: Namit Pandey
Disclaimer: This post is provided by an agency, our journalists were not involved in writing this article.