Some good insights by Shri.Himanshu Pandya, Head - Products, Franklin Templeton Investments - India
- Five important traits of a product to be successful in the long run : (a) Relevance (across market cycles), (b) Genuine differentiation (in terms of Risk-Return-Liquidity matrix), (c) Viability for all stakeholders, (d) Structure that is efficient and (e) Fund house's ability to add value
- No product is right or wrong, but there is an important factor of suitability, which must be highlighted
- Capital Protection funds in the prevalent form, ignore the time value of money, and lead investors to look at only the dictionary meaning of capital protection, not economic.
- In order to serve investors better, fund houses must be able to create solutions for advisors that help them in client engagement and product selection
- Complexity in product structure cannot be a sales proposition in itself, and should be strictly seen as a means to achieve an end
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