How Does Mutual Fund Software for Distributors Reduce Redemptions with Risk Profiling?
Mutual Fund Distributors (MFDs) often face a common challenge – investors redeeming their funds as soon as the market experiences fluctuations. This can significantly reduce the Assets Under Management (AUM) and, consequently, the trail income for MFDs. It's a problem that has been hampering the finance industry for a while. The Redemption Challenge Investors are often driven by emotions rather than rational financial decisions. When the market faces turbulence, many investors tend to panic and redeem their investments, fearing further losses. This impulsive behavior not only hampers their own financial goals but also affects the earnings of MFDs. Risk Profiling - The Game Changer REDVision Technologies and their Mutual Fund Software for distributors - Wealth Elite, equips a risk profiling tool, to address this issue and simplify the challenge for MFDs. Risk profiling is a systematic approach that identifies an investor's risk appetite and risk profile, ranging from conserv...