CFA Institute, the global association of investment management professionals, is enthusiastic about prospects for the investment industry in India.
"The Indian investment industry is going to see a lot of growth in the coming years, and companies in the ecosystem will have to compete hard to get their share of this growth," said Margaret Franklin, CFA, President and CEO, CFA Institute, during a recent visit to India.
Marg Franklin, the first female President and CEO of CFA Institute, who assumed her role in September 2019, flagged off 'Jan Nivesh Abhiyaan', a 15-day cyclothon organised by CFA Society India to promote financial literacy across India, and to highlight the importance of educating investors about financial products.
"I believe the investment industry must meet the needs of our end customers. The industry has rightly been criticised for mis-selling and putting short-term profits ahead of customers' interests. We need to pay more attention to professional competence and ethical behaviour. If we do this in every market in which we operate, we will gain investors' trust and contribute to their long-term financial well-being, as well as to fair and transparent markets," said Marg Franklin.
"The fundamental concerns of investors everywhere are the same, whether they are in emerging markets or developed markets. They want to make sure that their savings are being taken care of properly. They want to provide for their old age, their children's education and for emergencies. Ideally, the industry's concerns should be the same as the investors' concerns," she added.
"One of the key reasons for embarking on the mission is the growing realisation that despite the rise in GDP and the high individual savings rate the level of financial literacy in India is amongst the lowest in the world. This creates a great degree of dissonance as the nation embarks on an ambitious plan to become a $5 trillion economy, said Rajendra Kalur, Director, CFA Society India, speaking about 'Jan Nivesh Abhiyaan'.
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"As the economy grows larger, it also becomes more complex and hence the urgent need to not only increase penetration of banking and other financial products but also raise financial awareness levels. While SEBI has mandated that a certain portion of the fund TER be allocated for investor education, there also exists a need for greater financial education among segments who are currently not Mutual Fund investors or are out of the pale of regulated products, since a lot of the financial mistakes occur in this segment," Kalur added.
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