For private circulation only

August 23, 2019

July was another tough month. The stock market was extremely volatile and stocks fell like ninepins. But thanks to more trading days in the month compared with June, our relentless efforts and an external event, the report card shows an improvement in various pockets. Overall, the performance was largely stable despite market volatility.

The highlights of the report card

Broking

• The overall revenues increased month on month due to more trading days in July compared with June.
• The new customer accounts recorded a double-digit growth due to improved productivity.

Mutual fund distribution

• The SIP Kar, Record Kar contest and Reliance Mutual Fund’s CPSE Exchange Trade Fund helped us withstand the pressure of a falling stock market.
• The total assets under management (AUM) and the SIP book remained stable despite plunging mid-cap and small-cap indices.
• The company’s industry ranking improved in all categories.

LAS

• The highest monthly loan disbursal in Sharekhan’s history was recorded in July at Rs.60 crore.
• Another record was created when in a single day we disbursed Rs.18 crore.
• Notably, nearly 50% the total disbursals came from the newly launched business of ESOP financing.

The results of the SIP Kar, Record Kar campaign have been declared. In terms of the mutual fund distribution business, we have done good. Our industry ranking has visibly improved in all categories. From the campaign perspective, we could have done better. Even though we registered over 30,000 new Systematic Investment Plans (SIPs) during the campaign, only less than one-third of these qualified for the campaign as per the terms and conditions. Having said that, it was a good attempt. I congratulate all the winners, participants and organisers of the campaign.

What went well

• For the first time, Sherus across functions and ranks participated in a business campaign.
• The reach of the mutual fund distribution business increased as 14,036 new customers started a SIP during the campaign.
• The monthly SIP flow grew by Rs.3.6 crore during the campaign.
• The Bombay Stock Exchange (BSE) recognised our achievement on Twitter.
• Sharekhan’s industry ranking improved significantly (source: CAMS):
  • From 15 in May to 8 in July in the New SIP Count category
  • From 18 in May to 11 in July in the New SIP Amount category
  • From 45 in May to 42 in July in the Total AUM category

What could have been done better

• Against a target of 25,000 SIPs we achieved only 9,154 SIPs.
• We are a family of over 4,500 Sherus but only 1,016 participated in the campaign.
• We registered 31,441 new SIPs but could execute only 21,992 SIPs during the campaign, read that as “lost opportunity”.

Kudos to the Investment Solutions team and their leader Gautam Kalia for promoting the SIP method of investing among customers well. Diwali is just a couple of months away. The festival can be used as an opportunity to promote the lump sum method of investing in mutual funds too, given that many a customer would be flush with funds from his Diwali bonus.