Mr. Apurva Shah
Investment Product Head - NJ Wealth
Rethinking Mutual Fund Distribution: A Strategic Step Forward with NJ Recommended MF Portfolio.
Every few years, a transformative development redefines how we operate, realigning our focus, simplifying our work, and amplifying our impact. The relaunch of NJ MARS as NJ Recommended MF Portfolio is precisely one such turning point. This is more than a name change; it's a strategic evolution-a new framework built for smarter engagement and simplified execution.
At NJ, we've always believed that mutual fund distribution should be driven by clarity, consistency, and care. This relaunch empowers Partners to lead with confidence, reduce operational load, and enhance client trust.
Why This Change Matters
Let's be honest-selecting mutual funds and building portfolios from scratch is time-consuming. It requires ongoing fund tracking and regular discussions. The NJ Recommended MF Portfolio is designed to streamline this effort. These are ready-to-invest portfolios, built by NJ's in-house research team, tailored to different investor profiles. Whether your client is a conservative first-time investor or a seasoned equity participant, there's a pre-built portfolio suited to their needs.
The significant advantage is that you don't need to justify every individual scheme. These portfolios are constructed using robust principles like rolling returns, drawdowns, and consistency, making them easier to explain and communicate.
A Simplified Approach. A Smarter Outcome.
When schemes are recommended individually, the engagement can feel fragmented. Worse, selections may be influenced by short-term trends or popularity bias. With NJ Recommended MF Portfolios, the conversation shifts to "Which portfolio suits your needs and risk profile?"
This strategic shift allows Partners to:
-
Save time on fund-level research and discussions.
-
Ensure consistency in recommendations across team members.
-
Focus on understanding client needs and suitable allocations.
-
Communicate with clarity, even during volatile markets.
What Makes These Portfolios Effective?
One of the most common pitfalls in fund selection is relying purely on past point-to-point returns. Market cycles show that a top performer one year can underperform the next. Instead of screening schemes based on past point-to-point performance, we follow four core strategies to build NJ Recommended MF Portfolios:
-
Selection Based on Consistency: Every scheme within the portfolio is chosen based on sustained performance, not just recent highs. Rolling return analysis across multiple timeframes ensures long-term stability.
-
Risk Assessment Beyond Returns: Performance is vital, but so is risk. These portfolios are evaluated using metrics like drawdowns (the largest historical dips) and negative observations (frequency of negative returns) for a more complete picture.
-
Diversification by Design: Portfolios include a mix of investment styles and market capitalizations-large, mid, and small. This helps smooth out short-term volatility and supports better long-term outcomes.
-
AMC Screening: Only fund houses with a clearly defined process, research depth, and consistency in execution are considered, ensuring clients are exposed to disciplined investment frameworks.
Scale Through Structure
In my 21 years at NJ, I've seen firsthand that Partners who use structured portfolio recommendations:
-
Improve client onboarding speed.
-
Have clearer communication during review discussions.
-
Grow their SIP book and AUM more consistently.
-
Reduce back-and-forth over scheme selection.
By making structured portfolios your standard offering, you shift from one-off transactions to process-led distribution.
Integration is Key
Success with NJ Recommended MF Portfolios doesn't come from a one-time usage; it comes from making it a habitual practice. Here's a practical approach:
-
Offer to New Clients: Make it your go-to for every onboarding.
-
Review Existing Clients: Evaluate if scattered portfolios can be streamlined.
-
Train Your Team: Ensure everyone knows how to present and explain the portfolios clearly.
-
Track Monthly Trends: Monitor how much of your business is done through these portfolios. High adoption leads to better process efficiency.
The Business Impact is Real
Partners using NJ Recommended MF Portfolios report 20-30% time savings during client conversations. This means:
-
Client discussions stay focused on long-term suitability, even when markets are volatile.
-
Portfolio retention improves as clients understand the structure behind the recommendation.
-
SIP books grow consistently due to process-oriented communication.
In Closing
This relaunch is more than a branding change-it's a shift in how we work. The NJ Recommended MF Portfolio is a time-efficient, research-backed, and process-led solution that helps you stay focused on identifying needs and recommending aligned solutions.
If you haven't adopted it yet, now is the time. And if you're already using it-refine the process, align your team, and deepen its usage. Let's use this opportunity to serve our clients better, work more efficiently, and grow more consistently.
Let's make this financial year count - with clarity, structure, and focus.