The Hindu Business Line : `Our aim is to bridge the gap between expectation and reality'

THE ING Vysya group is seeking to shore up its asset base by establishing greater synergy between its banking, insurance and mutual fund arms. Mr Sushil K Sharma, Chief Marketing Officer at ING Vysya MF, dwells on some of the strategies being followed by the asset management outfit. "Funds will have to constantly identify new client segments in order to command more assets", he said.

Excerpts:

What is driving your marketing plans at the moment?

The central issue is to provide investors with the most practical solutions without compromising on security. This forms the core of all our plans. Investors, for whom saving is increasingly becoming a matter of compulsion, will inevitably choose the options that meet their requirements in the most effective way possible.

Our aim is to bridge the gap between what is expected and what is really happening. We are bringing to the table various options in the form of schemes and value-additions. Investors, both retail and wholesale, can work out combinations of such options to reach their goals.

We are watching the market from close quarters, trying to secure feedback from investors and distributors. This has led us to create new schemes. We have, for instance, come up with an MIP, one that reflects our thinking in this direction. It will help expand our product portfolio as well.

Aren't expectations changing too fast for MFs to catch up?

Well, we have to stay in tune with the market at all times. And this has to be done on every front — performance, products, services.

Investors, aware that certain other alternatives are losing sheen, will keep on expecting more in terms of returns and other conveniences. That, one feels, will give rise to fresh opportunities for funds like ours. We will have to cater to up-and-coming classes of investors, each of which will have its special requirements.

The rally we saw in the equity markets in 2003 seems to have fuelled expectations for a section of investors who might be hoping for a repeat performance on the stock exchanges. But one has to live with the feeling that a repetition may not happen so soon. However, there is no doubt that equities are a very unique class of assets.

On the other side, debt investments too have their appeal.

There has been an attempt to change the names of your products...

Yes, this was done to make them more market friendly and ensure greater recall. Names of funds, which are sometimes a sensitive issue with investors, should effectively reflect their nature. The very name of a liquid fund, for instance, should clearly give out a certain message. We used to call it ING Treasury Portfolio earlier. The change that has been brought about on this front has also helped us align more with investor preferences. That is an important consideration, especially for a player that is eyeing a wider presence in a competitive market.

The MIP segment is getting crowded. How will yours be positioned?

We have proposed to offer two plans, keeping in mind the fact that not all investors pursue the same goals. The plan that can allocate up to 20 per cent to equities will cater to investors with a certain risk profile. The one with 100 per cent debt holdings will have a different USP.

Incidentally, we are offering certain other facilities, courtesy our association with ING Vysya Bank.

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