Mumbai MFD Shares Tips to Create a Rs 1,000 Crore Distribution Business

Anup Bhaiya of Money Honey Financial Services, an experienced MFD with over two decades in the mutual fund distribution business, has achieved an impressive milestone of crossing the Rs 1,000 crore mark and establishing a client base exceeding 50,000 investors. In an exclusive conversation with Cafemutual, Anup generously reveals the three essential ingredients of his recipe for a thriving business model.

Ingredient 1 – Skilled and Motivated Team

Anup emphasizes that while educational qualifications are essential, they need not be the sole criterion for team members. He values an individual’s interest in learning and curiosity about finance. To identify suitable candidates, Anup engages in detailed discussions to gauge their inclinations.

Continuous learning is a priority for his team. They stay updated with daily discussions on current news and industry developments. Regular interactions with fund house representatives cover topics like emerging trends and behavioral finance.

Anup’s organization operates without a hierarchy, giving every team member an equal opportunity to express themselves. This fosters a sense of belonging and unity among the team.

Today, Anup proudly leads a team of 50 professionals, including sales representatives, content curators, accountants, business analysts, and social media experts. This diverse team handles various business functions efficiently.

Ingredient 2 – Strong Digital Footprint

Recognizing the extensive reach of digital media, Anup allocates 1 to 2% of his earnings monthly to establish a robust digital presence. Identifying the target audience and selecting the appropriate social media platforms is crucial.

For instance, Instagram attracts a younger crowd, while Facebook is popular among middle-aged to older users. LinkedIn, on the other hand, hosts a mixed audience. Anup tailors his content accordingly, with visual graphics for platforms like Instagram and Facebook, and long-form articles for LinkedIn.

The content primarily focuses on educating about mutual funds, covering both topical and evergreen subjects such as SIPs, taxation, and compounding. Consistent posting across digital platforms attracts potential clients, who are then converted into clients through structured follow-ups. Anup adds 30 new clients monthly through these digital efforts.

Ingredient 3 – Sound MF Software

Technology is a cornerstone of Anup’s business model. While building an in-house MF software can be expensive, Anup allocated a portion of his earnings from the beginning and invested in technology gradually. Over 15 years, he developed the MF software to its current state.

The advantage of an in-house software is customization to suit specific business requirements and easy upgrades when needed. There is no external dependency, allowing the team to add and modify features conveniently. The software digitalizes critical functions like client onboarding, portfolio reviews, and report generation, streamlining operations for efficiency and client satisfaction.