NJ Wealth CEO, Misbah Baxamusa, Discusses the Growth of SIPs and Empowering Investors in the Indian Mutual Fund Industry

He also discussed the initiatives taken by NJ Wealth to educate and empower investors, ensuring that they make informed decisions while investing in mutual funds. Additionally, he highlighted success stories and case studies that demonstrate the positive impact of NJ Wealth’s services on investors’ financial needs and outcomes. With a focus on long-term wealth building and a commitment to financial literacy, NJ Wealth continues to play a pivotal role in shaping the mutual fund landscape in India.

1. Can you share some insights on the growth of systematic investment plans (SIPs) in India? How have SIPs contributed to the overall growth of the mutual fund industry?

Ans.) With the mutual fund AUM crossing the milestone of Rs 50 lakh crore, SIP contributions also jumped to Rs 19,271 crore in March 2024, for a total of Rs 1,99,219 crore for this financial year 2023-24. The SIP AUM has also reached Rs Rs 10,71,666 crore. In recent years, there has been a rising trend in SIP investments. From the last financial year, the SIP contributions have increased by 27.73%. (Source – AMFI)

The simplicity and accessibility of SIPs have made it an ideal way of investment. Investors now understand that through SIPs, even small investments can blossom into a good corpus, making it easier for them to fulfil their financial needs over long term. The SIP book has added to a consistent, predictable, sticky, and a stable flow of funds to the industry which is always welcome. This is also a sign of a maturing investor base and industry.

2. As India’s largest mutual fund distributor, how has your organisation contributed to the growth and awareness of mutual funds among retail investors in the country?

Ans.) NJ Wealth, a B2B2C platform, is one of the largest MF distributors in India with 37,000+ sub-distributors called the NJ Wealth Partners spread across the nation. Our AUM now stands at Rs 1,94,600+ crore, and our monthly SIP book stands at Rs 1,709 crore. We have an investor presence in almost all states, major cities and towns in India and are located in over 185+ locations.

At NJ Wealth we empower our network of distributors to run and build a successful mutual fund distribution business, catering to the needs of a large investor base. Currently, we have over 31 lakh investors, but believe the potential or the opportunity is still enormous out there. While reaching out to these investors, our message is very clear and simple. We promote disciplined investments in the right asset classes for long-term wealth building. We work very hard on imbibing our investment philosophy and have a very consistant training and communications calendar with both investors and distributors. We have been speaking the long-term SIP language for nearly two decades now.

3. The mutual fund distribution landscape in India has seen significant growth in recent years. What factors have contributed to this growth, and how has your organisation capitalised on these opportunities?

Ans.) The mutual fund sector has witnessed an upsurge over the last decade, with assets under management (AUM) growing from Rs 8.25 lakh crore in March 2014 to Rs 53.40 lakh crore in March 2024 (Source – AMFI). This unprecedented growth can be attributed to a multitude of factors, including the regulatory direction provided by SEBI and the growing confidence and knowledge of investors through investor awareness programmes. We can now say that mutual fund investments are no longer a modern or new investment avenue as opposed to ‘traditional’ options and are now slowly going mainstream.

We believe that sustainable long-term channelisation of real savings is also an outcome of the continued efforts of the mutual fund distributors (MFDs). The MFD community have been pitching and pushing SIPs when there was no awareness, and there was general suspicion about anything related to equity markets. Right through these decades, we have remained focussed on our messaging and on doing on-ground activities. Online onboarding, transactions, and increased digitalisation have greatly addressed the last-mile access challenges and have given investors greater convenience and transparency which NJ Wealth has really capitalised on. We have always worked out the challenges, remained consistant in our process, trying to convert opportunities in our favour.

4. What initiatives has your company taken to educate and empower investors about mutual funds? How do you ensure that investors make informed decisions while investing in mutual funds?

Ans.) Financial inclusion, awareness, and literacy are the cornerstone of NJ Wealth. We hold training sessions for NJ Wealth Partners very consistently, which empower them with appropriate knowledge and the right investment strategies. In addition to regular training, we conduct talks and sessions with industry leaders very often for both investors and distributors. There is also an internal research and publications desk that gives the necessary content and publications required by our distributors.

By empowering our partners, we extend the reach of investor education. The Financial Literacy Awareness Programme (FLAP) is a free-of-cost dedicated course that allows investors and students to educate and empower themselves with financial literacy. Moreover, we post NJ Wealth blogs where we publish relevant content through which we can directly engage in improving awareness about mutual funds and financial literacy. By equipping investors with the knowledge and resources they need, we aim to promote financial well-being and help individuals achieve their long-term financial objectives.

5. Can you share some success stories or case studies that highlight the positive impact of your company’s services on investors’ financial needs and outcomes?

Ans.) At NJ, we believe that the key to building wealth is patience and composure. Staying invested for the long term can not only help fulfil financial needs but also build wealth. NJ has always strived to put the needs of customers first. The market is also huge with vast opportunities to build wealth. In such a scenario right-selling and sticking to fundamentals of investing can really help investors generate good returns.

The handholding provided by our dedicated NJ Wealth Partners has helped investors maintain their calm during times of market volatility. As per internal studies, Investors who have entrusted NJ Wealth for more than 10 years have achieved median returns 13.76%*. Moreover, 72.89%* of investors have received returns of more than 12%, and 96.23%* of investors have received returns of more than 8%. These returns of NJ Wealth investors are a testament to the power of long-term, disciplined, and consistent investing.

*Source – Internal

1. Investor returns are annualised and calculated using the XIRR method for the period from the 1st investment to the 31st March 2024.

2. The methodology for computation of the XIRR return of the mutual fund investments have been audited and certified by Value Research via a certificate dated May 31, 2023, in favour of NJ India Invest Private Limited.

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