Track: E-Commerce as a Catalyst for Change
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Asst. Prof. Vel Tech Rangarajan sakunthala R&D Institute of Science and Technology, Avadi, Chennai
Publication date: 2019-03-16
Eurasian J Anal Chem 2018;13(Engineering and Science SP):emEJAC181222
With the growing e-commerce trend, competition heats up among the online market place giants. E-commerce giants look to offer new product offerings by completely redefining the online space. An article by Shashikant Singh in the dalal street, states that a study done by ASSOCHAM-Forrester, Indian e-commerce is growing at an annual rate at 51%. This is the highest in the world and is expected to reach USD 120 billion in 2020. The retail sector is also registering a positive trend of 11% CAGR and this is expected to touch USD 1 trillion by 2020. More and more people are being added to the virtual world daily. The entrance of technology will not only impact the traditional markets like clothes, books, electronic items but also new markets which have remained untouched till now. Online customers enjoy the convenience of shopping from the comfort of their homes for grocery, listening to music. This comfort shopping which customers experience can very soon become a reality for investors of financial services industry. With the digitalization fast catching up the mutual fund industry, investors can choose to make investments conveniently like shopping. This also fulfils the financial inclusion notion of RBI successfully. The initiative assures that mutual fund products become more accessible. The aim of the paper is to trace the growing e-commerce trend in the mutual fund industry and examine the special strategies that need to be adopted given the unique nature of the industry, where investment advice is a prerequisite for most first time investors. The study is descriptive in nature. The importance of extending online market places like Flipkart and Amazon to sell mutual funds to make these products more accessible to people are discussed.