Nippon India Mutual Fund has launched a one-of-its-kind geo-targetting initiative to help distributors identify new investors near their place of residence and thus, enhance their business.

The fund house will start the campaign through release of fresh advertisements on Facebook, and details of the investors who show interest in mutual funds by clicking on the advertisement will be shared with the distributor living in the locality.

The initiative will cover almost 2,000 pincodes and over 90 per cent of the mutual fund business in the country. It is targetting to reach over one crore investors. NIMF has selected about 5,000 distributors who are tech-savvy and execute most of their business through the online mode for this unique initiative.

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Though the assets under management (AUM) have been growing steadily, mutual fund distribution business is getting tougher by the day, especially for new comers, due to payment of commission on trail basis. Moreover, the percentage of commission paid by mutual funds are much lower compared than that of insurance and other financial products.

Saugata Chatterjee, co-Chief Business Officer, Nippon India Mutual Fund, said the move will not only be a goodwill gesture to distributors but also help thousands of small-time, self-employed professionals across the country to get leads on their prospective customers.

“We will soon take the initiative to other social media platforms to widen the reach and attract new investors,” he said.

Asked what is the guarantee that the distributor who gets the lead will sell Nippon India schemes, Chatterjee said, “There is no binding on the distributors to sell only our schemes. The intention is to get new investors into mutual funds and create long-term wealth.”

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Beginning March when the lockdown started, Nippon India has helped scores of mutual fund distributors adapt the digital mode, innovate and scale-up their business.

NIMF receives over 80 per cent of its business digitally and engages with about 10,000 partners, including independent financial advisers, bank employees and the negotiated dealing system.