Mutual funds can make an excellent and high-paying addition to anybody’s portfolio, yet like insurance and many other investment concepts, people are usually scared away by these complicate terms. People who are new to this whole market and aren’t familiar with mutual funds can especially be tricky to wrap around the whole concept. So how to do marketing of mutual funds effective enough to make people gravitate towards it as an investment option? 

As a staunch professional and a marketer, your first action should be offering information about the benefits of mutual funds and the way in which these specific products can help the customer or the investor meet their investment goals. Providing the type of information contained in the following marketing techniques and strategies will help you sell mutual funds to even the most skeptical and unsure clients.

The first thing to keep in mind are the main selling points of mutual funds. These are as listed below, 

  • A mutual fund’s main selling point is always the personal customization and diversification it offers to investors.
  • Because mutual funds typically handle a large pool of assets, they have access to many more stocks and other funds that an individual investor will not have the capital to buy into.
  • One of the reasons why investors steer away from mutual funds is their high expense ratios. A 2-3 per cent ratio is hard to justify when investors can choose broad-based exchange traded funds (ETFs) with expenses as low as 0.1 per cent.
  • When selling mutual funds, focus on the total return of investment versus and the mitigation of risk matters the most for clients and investors.

Also Read: How to Find Investors for Start-Up?

Marketing Strategies for Mutual Funds

There are a multitude of marketing strategies for mutual funds, that can help your clients get a better understanding of the whole concept and how it is better for their investment portfolios and make them a lot of money,

Business Accounts

The most common sales and marketing strategies for mutual funds is to sign-up companies as a preferred option for their retirement plans. This provides a simple way to sign-up numerous accounts with one master contract. To market to these firms, sales people target human resource professionals. Marketing occurs through traditional business-to-business marketing techniques including conferences, niche advertising and professional organizations. For business accounts, fund representatives will stress ease of use and compatibility with the company’s present systems.

Consumer Marketing

Consumer marketing of mutual funds is similar to the way other financial products are sold. Marketers emphasize on safety, reliability and performance. In addition, they may also provide information on their diversity of choices, ease of use and low costs. Marketers try to access all segments of the population. They use broad marketing platforms such as television, newspapers and the internet. Marketers especially focus on financially oriented media such as CNBC television and Businessweek magazine.


Mutual funds and their proprietors must be very careful about how they market the fund’s performance, as their progress is tracked and heavily regulated. Mutual funds must market their short, medium and long-term average returns to give the prospective investor a good idea of the actual performance. For example, most funds did very well during the housing boom. However, if the bear market that followed is included, performance looks much more average. Funds may also have had different managers with different performance records working on the same funds, making it hard to judge them.

Advertising Fees

Mutual funds and salesmen associated with the market must be very clear about their fees and report them in all of their advertising and marketing materials. The main types of fees include the sales fee (load) and the management fee. The load is an upfront charge that a mutual fund charges as soon as the investment is made. The management fee is a percentage of assets each year, usually 1 to 2 per cent.

Also Read: 10 Business Ideas for Beginners 2020, Start Out Small to Grow into Something Bigger

Marketing Strategies for Mutual Funds

Following are a bunch of strategies you can use to effectively market mutual funds to customers and investors alike. Some of these are pretty basic and can be used easily and with good results,

Digital Marketing to the Rescue

  • Awareness among the people: In order to raise awareness, you will first need to determine your target audience. People of all age groups, demographics and financial backgrounds can be found using social media or paid search marketing. But all of them are not your target audience. You need to identify the audience you want to concentrate your marketing efforts and tap into this traffic (this can be done through keyword buys, demographic and psychographic analysis to define audiences, etc.)
  • Elicit interest: You cannot force anybody’s interest; neither can they fake it for too long. Interest can only be drawn and nurtured. Additionally, in digital marketing you only have a few seconds before someone can scan past your ad and miss you completely or click the back button on a browser and leave your site.
  • Stoke desire: Knowledge cannot be forced upon a person who is not willing to accept it. Once the desire to learn is there only then you can act upon it to move them further through your sales funnel. Dealing with compliance and regulatory issues makes it trickier to generate desire compared to other business verticals. You might highlight a fund’s performance, its ratings or other various aspects.
  • Action: Now that you have raised awareness, drawn interest and have genuine desire towards the product, it is time to take drive action. You should start with your CTA (Call to Action) on not only your site but also social media platforms and other advertising. Make it easy for someone to buy now or to click to call if they are on the phone. If someone wants to know how to invest, don’t bury that CTA at the bottom of your site or lost in your navigation. Make it apparent and obvious in multiple places in your ads and site.

Using Social Media and Digital Marketing Practices

  • Enlisting social media: As a mutual fund company, you are judged not just by your website but also by your social media sites. If you aren’t staying on top of your presence, your trust factor may be slipping. You need to dedicate time to set up and monitor an active social media page. Keep those pages updated and regularly drop in tid-bits of information that will help others understand your funds more completely.
  • Website blogs/ corporate newsletters: One of the most important sources of inbound marketing are corporate blogs. These help the customers by educating them so that they can make wise and informed decisions. Therefore, it is a must for every mutual fund company to invest in content marketing. Not only that, it’s vital to the item below.
  • SEO: Google can be a gateway to making it big. But the search giant only gives importance to those mutual fund companies who not only practice healthy best habits in their SEO strategies, but actively produce content. How well Google scores you on its algorithm depends completely on how well you are using a combination of keywords, off-site signals, on-site signals and a variety of other related SEO areas.
  • PPC: SEO work often takes time. PPC gets you instantly on search engines and in front of your target audience (people searching for your types of funds). Do it right and you can drive up AUM dramatically. Success is all about winning the moment online.