Financial Services _Çô Client Services RFC223 Lecture Notes - Lecture 11: Mass Affluent, Tax Shelter, Mutual Fund
17 Nov 2016
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Document Summary
Overseen by the mfda, mutual funds dealers association, bank branches and insurance companies. Full scale financial planning includes the following, as well as variations of: The product offering: full services firms offer the same advice, but sell products to go along with it. Bank branches increased market share of investment funds in last 5 years. Moving from mass market to mass affluent. Assets at 37b now surpassing the private sector: wraps increasing in popularity , banks succeeded in vertical integration with the inclusion of 90% proprietary products. Client life cycle they want to retain their client for life, as their investment decisions change. Segmentation strategy diversified product offerings for mass market, mass affluent, and affluent. Managed products wraps with lower prices and higher asset mixes designed to retain the affluent. Reduces tendency of clients to redeem funds in down markets. Wraps are much quicker to allocate to clients as they are done through an automated system: greater staff efficiency.
