• On August 31, 2020, on a single day we achieved the highest daily net brokerage as well as client activity when over 100,000 unique clients traded, generating brokerage of Rs.2.82 crore.
• 160,107 branch-mapped customers reactivated so far under FFP since September 2019.
• In August, FFP facilitated the reactivation of 10.9K branch-mapped customers and 5K franchisee-mapped customers.
• The trailing 12-month active customer number has now moved up to a new high of 587.1K, that is ~13K higher than 574.4K recorded in July end.
• The AUM of our MF distribution business touched Rs.4,000 crore in August.
• Our industry ranking in overall MF AUM improved to 40 in July from 43 in January this year.
• Our first ever CSR Week clocked 1,254 volunteer hours and saw participation of over 300 Sherus.
• We have organised a fundraiser campaign to help the poor and needy.

It is the 176^th day of the lockdown. According to the health ministry, “Our COVID-19 numbers are rising — we haven’t stabilised yet. The pandemic is still on and a large population is still vulnerable.” Consequently, Sharekhan is in no hurry to open up. With the safety of the staff remaining our top priority, the working arrangements remain unchanged. We continue to operate with the maximum staff working from home. Business is doing well and in the last month, we broadly maintained the performance of the very successful previous month, ie July. Here is a look at the highlights of August.

In the broking business, the revenue generation in August was comparable with the exceptionally high revenue number of July this year. On August 31, 2020, on a single day we achieved the highest daily net brokerage as well as client activity when over 100,000 unique clients traded, generating brokerage of Rs.2.82 crore. The country’s economy as a whole is reeling under the lockdown, with the gross domestic product contracting by nearly 24% in the June quarter this year. Ironically, our broking business is doing well on the back of the lockdown. There has a been an influx of new retail investors in the market especially in the tier-2 and 3 cities. The lockdown has accelerated the last two years' trend of an increasing participation by retail and high net worth investors in the cash segment of the equity market as working from home has allowed them to study and learn about equities and start investing. Trading activity among the customers has also increased as those who have been rendered jobless are now trading more, perhaps to generate an income.

In the lockdown, our own efforts to reactivate customers under the Front Foot Programme (FFP) are showing good results as stuck at home and with a lot of time on their hands, old customers are returning to the stock market. For the last three months, on an average we have been reactivating more than 500 customers a day. In all, we have reactivated 160,107 customers since September 2019 under the programme. Specifically for August, FFP, which will complete one year this month, facilitated the reactivation of 10.9K branch-mapped customers and 5K franchisee-mapped customers. The Network teams work with a mission to scale the milestone of 6 lakh trailing twelve-month active accounts soon !

Our recently launched fully digital Do It Yourself (DIY) account opening system is just what the people working from home need in the pandemic and the number of new accounts from this channel is growing at a healthy rate. In August, we saw a month-on-month growth of 24% in the number of new accounts opened through the DIY channel, which now contributes 13% of the total client acquisitions. Plus, our state-of-the-art digital platforms make it super convenient for the customers to trade online. The renewed interest in stock trading among the retail customers definitely augurs well for our business and we should aim to win the hearts of the customers by providing the best-in-class products and services to them. We should also use the opportunity to create awareness about the benefits of equity trading among the retail population, given that even more than three decades after the launch of the Sensex only a miniscule percentage of our population invests in equities.

The mutual fund (MF) distribution business is holding up well. Our MF AUM has crossed Rs.4,000 crore. Our industry ranking in overall MF AUM improved to 40 in July this year from 43 in January. Our overall Systematic Investment Plan (SIP) flow rank (excluding the direct players) remains unchanged at 13. With the exception of March this year, when we recorded a contraction in the net sales, we have been able to achieve a net positive inflow on a monthly basis in 2020. Last month, we were the second largest contributor to the Nippon India Multi-Asset Fund in the national distributor category and ranked sixth on an overall basis in terms of value. These achievements can all be attributed to two key factors.

First, we are focusing on growing the net sales and new SIP numbers. The Investment Solutions team is publishing an MIS on a weekly basis which keeps us updated on the status of the business and allows us to respond to the changing trends. They are also providing ongoing support to the front-line to help improve their performance. The second factor that is working in our favour is the adoption of digital technology by investors in the lockdown. Our digital platforms are among the best in the industry and more and more people are using the website and the mobile application to invest in mutual funds to avoid any physical interaction with the sales staff. We should also promote our digital assets more as well as create more awareness about the benefits of mutual funds among the public because faced with financial uncertainty, many are prioritising savings over spending and looking to build safety nets in the medium term as well as wealth portfolios over the long term. Having said that, the lockdown has provided a good business opportunity and if we play our cards right, we should easily be able to end the year with AUM of Rs.5,000 crore.

It gives me immense pleasure to announce that our first CSR Week, ie an entire week from August 31 to September 6, 2020 dedicated to volunteer activities, was a success. More than 300 employees participated in virtual volunteer work during the period, clocking 1,254 volunteering hours. The event had some more firsts to its name. It was the first time ever that Sherus across the country together participated in volunteer work at the same time. It was also the first time that all the voluntary work was done online. I thank Rajesh Shetty, Niharika Vankar, Tanya Aswani and the CSR Committee for collaborating with three non-government organisations to explore and identify a wide range of virtual volunteer activities for the staff to make it easier for them to fulfill their social responsibility in these challenging times. Let us have more CSR Weeks going forward, as such events not only allow us to help the needy but also connect all Sherus across the country. In these remote working times, it is essential that we all stay connected.

We can help the needy by donating time as well as money. The government and various other non-government organisations are working relentlessly to control the spread of COVID-19 in the country and provide assistance to those affected by the disease directly or indirectly. To strengthen their fight against COVID-19, we have organised India Fundraising Campaign 2020 to raise funds from the staff for two local organisations: PM CARES Fund and Womenite. I invite you to participate in this noble initiative. The COVID-19 pandemic is extracting a heavy price in our country. As the death toll continues to rise unabated, numerous families are losing their sole bread earner to the pandemic every day, there are job losses, salary cuts and furloughs across sectors. Donate because the less fortunate people of your country need you. Donate because you can -- you are fortunate to have a job which you can attend to from the safety of your office location or home. Donate whatever you can -- do not hesitate even if it is a small amount. Donate today, don’t wait for the last day. Every rupee you donate will count and go towards providing relief to a needy person.

The threat of COVID-19 persists. Therefore, continue to follow all lockdown rules and the norms of personal safety and social distancing, whether you are working from home or office locations. Stay safe and continue to take care of your loved ones. We are all in this together and together we shall overcome.

Thank you.

Best regards,
Jaideep Arora