Individual investors and firms do not want to spend time doing research. Instead, they rely on fund managers and investment institutions to do it. They also look for investment funds and free themselves from the decision-making altogether. The only decision investors need to make in investment funds is choosing the right one.
After that, money managers, ETF providers, fund consultants, asset managers, and other intermediaries collect and invest their capital into different opportunities and provide returns.
Asset managers and fund consultants need to invest in marketing to attract investors. They have to prepare brochures, factsheets, presentations, and other marketing materials.
Read on to understand the right strategy for the fund marketing process.
Understand the type of fund required by the investors
Money/asset management firms contact numerous investors and corporations. Some might have already done business with the firm in the past, or some might be new. The idea here is to know a prospective investor’s requirements.
For example, investors in contact with an asset management firm might be experienced in hedge funds. As a result, the investors will look for more hedge fund opportunities.
In such a case, asset management should provide hedge funds to meet the investors’ expectations.
Investors look for ESG (Environmental, Social, and Governance) metrics before choosing a fund. Sustainable funds that positively impact the environment and society help get better returns.
Just as investing funds in companies that pollute the environment might be a loss, investors might not invest in companies with poor internal controls.
This is why asset management firms should understand investors’ preferences and advertise investment funds accordingly. When an asset management firm understands how fast investors want returns, they can meet their requirements.
Some investors might be picky and prefer immediate returns. In such cases, marketing a hedge fund with immediate returns would be ideal for them.
On the other hand, some investors are patient and want to invest in venture capital funds for higher returns. The more a money manager understands the investors, the better will be the marketing strategy.
Increase focus on marketing materials for funds
Marketing materials back the fund marketing process. An asset/money management firm has to provide investors with marketing materials to choose the right fund. Investors will take time to know more about a fund before giving their money to invest. They like to spend time researching the fund, its risks, and its goals. Here the money managers must provide investors with marketing materials to help them with investment fund research.
A money management firm can start by handing out fund factsheets to investors. Factsheets can help investors know the risks and objectives of a fund and also convey basic information about an investment fund, like –
- Base currency
- Fund’s ISIN
- Share class currency
In addition, investors can compare the sector-wise breakdown of funds with factsheets and analyze the historical performance of the funds.
Fund factsheets aren’t the only marketing material offered to investors. An asset/money management firm should also offer presentations, brochures, pitch books, fund lists, and laminates.
With the right marketing materials, an asset management firm will ease the task for the investor, who will have the information they need at their fingertips.
Seek support for better fund marketing
Fund marketing might get trickier at times as you have to meet investors’ expectations. Also, there are several cumbersome processes associated with marketing for fund consultants. For example, fund consultants have to update factsheets at regular intervals to provide clients with the latest information. Similarly, other cumbersome marketing tasks exist for asset managers.
To implement the right marketing strategy, asset/money managers must look for outsourcing partners. A reliable outsourcing partner will help money managers distribute informative factsheets, presentations, brochures, and other materials. Also, outsourcing partners will help out asset/money managers with research processes for fund marketing. Advertise your funds effectively to attract investors now!