If you are a mutual fund marketer in India, you know how challenging it can be to reach and persuade potential investors. The market is highly competitive, regulated and diverse. You need a clear and effective strategy to stand out and achieve your goals. Here are 10 steps to advertise mutual funds in India:
#1 Understand SEBI Regulations
The first step to advertise mutual funds in India is to understand the SEBI regulations. SEBI is the watchdog of the mutual fund industry and it ensures that the investors are protected and informed. It sets the rules and guidelines for advertising, disclosure, fees, commissions, etc. You must follow the SEBI rules for advertising, such as:
- Using standard risk factors and disclaimers in your ads
- Not making any false or misleading claims or promises
- Not comparing your scheme with other schemes or products
- Not using celebrities or testimonials without proper disclosure
- Not offering any guaranteed or assured returns
These regulations are meant to safeguard your reputation and credibility as a mutual fund marketer. If you violate them, you may face legal action, fines, suspension or even cancellation of your registration. You don’t want that to happen, do you? That’s why you should always check the SEBI website for the latest updates and circulars on advertising norms.
Transparency is essential in mutual fund advertising. You need to comply with the disclosure requirements set by SEBI and other authorities. You should disclose all the relevant information about your mutual fund such as objectives, risks, returns, fees, charges, etc. You should also avoid making any false or misleading claims or promises that can mislead or deceive the investors.
#2 Identify your Target Audience
The second step to advertise mutual funds in India is to identify your target audience. You cannot market to everyone. You need to segment your market and identify your ideal customers based on their demographics, psychographics, behavior, needs and preferences. This will help you tailor your message and offer to their specific interests and pain points.
You need to target customers who are interested in global diversification, have a high risk appetite and a long-term investment horizon. You also need to consider factors such as age, income, education, location and lifestyle. These factors will influence how you communicate the benefits and features of your mutual fund, as well as the channels and platforms you use to reach them.
In Google Ads, you can target your audience on a differential basis.
In audience segments, you get to specialize more.
For example, if you are selling a mutual fund app, you can target people interested in financial services, watch finance YouTubers, and use keywords related to the topic. This way, you can avoid wasting your budget on people uninterested in your product or service.
#3 Develop a Compelling Message
Once you know who you are talking to, you need to craft a message that resonates with them and motivates them to take action. Your message should highlight the benefits and value proposition of your mutual fund, address the common objections and concerns of your audience, and include a clear call to action that tells your audience what to do next, such as visiting your website, calling your toll-free number, or downloading your brochure.
You need to communicate how your mutual fund can help them achieve their financial goals, overcome their challenges, and satisfy their needs. Your message should also address the common myths and misconceptions about mutual funds, such as high fees, low returns, or high risk. You should explain how your mutual fund is different from others in terms of performance, features, or fees.
For example, you can look at Groww and their messaging which is ‘Build wealth, SIP by SIP’. This same messaging continues in the Shorts and YouTube videos.
#4 Choose Appropriate Media Channels
You need to select the best media channels to reach your target audience and deliver your message. These can include print, TV, radio, outdoor, online, social media, etc. You should consider the cost, reach, frequency, impact and suitability of each channel for your objectives and budget.
If you want to target young and tech-savvy investors, you might want to focus on online and social media channels. These channels can help you create interactive and engaging content, such as videos, quizzes, infographics, etc. You can also track and measure the performance of your campaigns and optimize them accordingly. On the other hand, if you want to target older and more conservative investors, you might want to use print and TV channels.
You should also consider the cost, reach, frequency and impact of each channel.
- Cost refers to how much you have to spend to run your campaign on a particular channel.
- Reach refers to how many people you can potentially reach with your campaign.
- Frequency refers to how often you can expose your audience to your campaign.
- Impact refers to how memorable and persuasive your campaign is.
You should aim for a balanced mix of media channels that can help you achieve your advertising goals. If you want to learn more, you can look at this article by Wordstream, which concludes that Facebook is still the biggest place the marketers spend their advertisement dollars on.
You can also look at the Hootsuite’s Important social stats article to understand the trends in the market better.
#5 Create Engaging Video Ad
Content is king in marketing. You need to create an engaging video Ad that educates, entertains and inspires your audience. Your Ad should showcase your expertise, credibility and trustworthiness as a mutual fund marketer. It should also provide useful information, tips, insights and stories that help your audience make informed decisions.
Writing is the first and most crucial axis of a good, well-performing Ad because it is responsible for the overall narrative reflected in the final product. Here are some best practices we recommend.
Attention-Grabbing Opening: It’s essential to have an attention-grabbing opening to hook viewers from the start. Begin your ad with a catchy statement or a thought-provoking question that piques the audience’s curiosity. By doing so, you immediately capture their attention and make them eager to watch the rest of the ad.
“Are you ready to take control of your financial future? Do you dream of achieving your goals and securing a brighter tomorrow? Introducing the investment opportunity you’ve been waiting for!
Welcome to ProfitMax Mutual Funds – where your financial aspirations meet their full potential!”
Summarizing the Product’s Utility: After grabbing attention, provide a brief overview of the product. This summary should give viewers a clear idea of what to expect, helping them understand the relevance of the content to their interests or needs. A concise summary sets the stage for the rest of the ad and prepares viewers for the message you want to convey.
“ProfitMax Mutual Funds are designed to address your financial pain points and fulfill your desires. Our team of expert advisors works tirelessly to tailor investment solutions to your unique needs, helping you navigate the complexities of the market with confidence.”
Addressing Pain Points & Desires: Acknowledge the challenges or problems faced by your target audience. By addressing their pain points, you create a sense of empathy and connection. Highlight the desires or solutions they seek, tapping into their aspirations and demonstrating that you understand their needs. This step helps build rapport and establishes your ad as relevant and valuable to the viewers.
“Life is full of challenges and desires. Whether you’re saving for your dream home, planning for your child’s education, or aiming for a comfortable retirement, we understand the importance of financial security at every step.
We know that managing your finances can be overwhelming. But what if we told you there’s a solution that simplifies the process and maximizes your returns?”
Providing Solutions: Now that you’ve connected with your audience, it’s time to present them with the solutions they seek. Showcase how your product or service can address their challenges and help them achieve their desired outcomes. Focus on the unique value proposition and benefits that differentiate your offering from competitors. By positioning your product or service as the answer, you create a compelling case for viewers to consider.
“With ProfitMax Mutual Funds, you gain access to a diverse portfolio of carefully selected investment options. From stocks and bonds to real estate and commodities, our funds offer you a range of opportunities to diversify and grow your wealth.”
Call to Action: No video ad is complete without a solid call to action (CTA). The CTA prompts viewers to take a specific action, such as visiting a website, subscribing to a channel, or purchasing. Make sure your CTA is clear, concise, and compelling. Use action verbs and create a sense of urgency to motivate viewers to act immediately. The CTA should align with the goals of your ad and provide a seamless transition for viewers to engage further.
“Don’t miss out on this chance to secure your financial future. Visit our website at www.profitmaxfunds.com today and start investing with ProfitMax Mutual Funds. It’s time to take control and achieve the financial freedom you deserve!”
Editing becomes the third and final axis of a good, well-performing Ad because it is responsible for how the narrative the writers intended in the first place will be reflected in the final product – the video Ad. Here are some recommendations from our side.
Choose the Right Music: Select energetic and engaging music that fits the mood and theme of your advertisement. Experiment with different songs and arrangements to find the perfect fit. The music should enhance the overall impact and rhythm of the video.
You can go to Pixabay and Shutterstock to get curated music, but you can also go to AI-based platforms like Aiva and Soundraw and generate your own piece of music.
Utilize Typography & Text Editing:
- Incorporate visually appealing and professional-looking text in your advertisement.
- Use tools like rotoscoping to integrate the text seamlessly into the video.
- Consider placing the text behind or before the subject and applying effects like 3D face tracking and electronic camera blur for a more realistic feel.
You can go to Adobe Fonts to check how the texts you want to implement look in different fonts.
Enhance with Sound Effects:
- Add relevant sound effects that complement the visuals and music.
- Consider using sound effects to highlight the action or product being showcased for an advertisement.
- Layer the sound effects with the beat of the music to create a more immersive and engaging experience for the viewers.
BandLab Sounds is the most extensive stock repository of audio effects and relatively small sounds. You can check it out.
Employ Color Grading Techniques: Utilize color grading to enhance the visual impact of your advertisement. Consider the psychology of colors and the desired emotional response. Experiment with saturation, contrast, and color palettes to achieve the desired look and feel. For example, use high contrast and cold color palettes for a more intense or raw atmosphere.
You can use Adobe Color to create, mix or apply new colors or new color pallets.
FAQs
1. What are some key SEBI regulations that mutual fund marketers need to follow while advertising in India?
Mutual fund marketers need to adhere to SEBI regulations, such as using standard risk factors and disclaimers in ads, avoiding false or misleading claims, refraining from comparing schemes or products, and providing proper disclosure when using celebrities or testimonials.
2. How important is it to identify a target audience when advertising mutual funds in India?
Identifying a target audience is crucial for effective mutual fund advertising in India. It helps marketers tailor their message and offerings to specific interests, needs, and preferences, improving the chances of resonating with potential investors and achieving advertising goals.
3. What factors should mutual fund marketers consider when choosing media channels for advertising?
When selecting media channels, mutual fund marketers should consider factors such as cost, reach, frequency, and impact. They should also align the channel selection with the characteristics and preferences of their target audience, choosing channels that offer the best fit for their advertising objectives and budget.
4. How can mutual fund marketers create engaging video ads for their campaigns?
To create engaging video ads, mutual fund marketers should focus on attention-grabbing openings, summarizing the product’s utility, addressing pain points and desires of the audience, providing solutions that differentiate their mutual fund, and including a clear call to action. Additionally, they can enhance their video ads with appropriate music, typography, sound effects, and color grading techniques to enhance the visual and auditory experience for viewers.
In Conclusion
Advertising mutual funds in India requires careful adherence to each and every single small detail. By following these five steps, mutual fund marketers can effectively reach and persuade potential investors. Remember to prioritize transparency, address pain points, and provide solutions that differentiate your offering.
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