The Hindu Business Line : ICRA Online launches fund management tool

Service drive
Tool, named Mpower, aimed at making business more cost-efficient.
Support by way of research reports, fund performance analysis.
Can create appropriate asset allocation for clients.

Our Bureau

Kolkata, Sept. 27 ICRA Online Ltd has introduced an Internet-based platform for mutual fund distributors and financial advisors, aimed at making their business more cost-efficient.

ICRA Mpower, as the tool has been named, will provide users a range of financial tools needed to cater to both pre- and post-investment requirements of investors.

A press release issued by ICRA quotes Mr P.K. Choudhury, Vice-Chairman and Group CEO, as referring to the rapid growth of the wealth management industry in the country.

The advances recorded by the equity market have resulted in a lot of interest in mutual funds among retail investors, he said, adding that the number of distributors has also increased sharply.

Asset allocation

The new tool provides intermediaries with a “decision support system” by way of research reports and fund performance analysis, all of which can be used to offer the right recommendations. It can also be utilised to create the most appropriate asset allocation for clients.

For a user, ICRA Mpower can lead to a CRM tool, aimed at tracking a client’s portfolio and generate reports on portfolio performance. Further, it can offer a back office solution, thanks to import of all clients’ transactions directly from the Registrar’s files and computation of brokerage (as well as reconciliation of the same with entitlements).

“As a distributor, one needs to produce high quality research reports, guide the investor through a proper financial plan, and provide regular service by way of periodic portfolio performance and valuation reports. Over and above this, a distributor also needs to manage his back office operations well,” Mr Choudhury has maintained.

Fund point

A distributor has to direct substantial resources in building the infrastructure, complete with technology and people. This necessitates a heavy investment, often too high for a small player.

ICRA Online, which caters to about 250 clients in the country, has among its clients a number of intermediaries already. One of its earlier products, MFI Explorer, facilitates mutual fund research and analysis.

ICRA’s participation allows the company – it is a 100 per cent subsidiary – to leverage the rating agency’s knowledge base in conducting research and assessing market requirements.

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