At The Wealth Company, we prioritize products with lower volatility: Lunawat

Madhu Lunawat has etched her name in history as the first Indian woman to launch a mutual fund. Just a few days ago, her firm, The Wealth Company, part of the Pantomath Group, received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch its mutual fund business. But resting on her laurels is not in her nature.

Coming from a lower-middle-class background in Assam, Madhu has always known that success is built on perseverance. When we met her on a rainy morning at a hotel in Kolkata, Madhu, who is also the co-founder and executive director of the Pantomath Group, was already in meetings with Mutual Fund Distributors (MFDs) from the region. For the past 20 days, she’s been on a relentless travel schedule. After Chandigarh, she was in Kolkata to train and engage with MFDs. Next, she is heading to Nashik before returning to Mumbai.

Madhu is on a mission to take The Wealth Company to every Tier 2 and Tier 3 city in India. A graduate of Guwahati University and the top ranker in her Chartered Accountancy batch, she has always believed in the untapped potential of India’s hinterlands. The mother of two is equally passionate about encouraging more women to join the financial services sector. Her company is preparing to launch specialized training programmes to equip women with the skills and confidence to build careers in finance. From the weight of being India’s first woman to launch a mutual fund business to the challenge of winning over hesitant middle-class investors, Madhu is all set to reshape how India invests. Excerpts from an interview with Millennium Post.

Congratulations on SEBI’s approval for The Wealth Company to launch the mutual fund business. With this, you have become the first Indian woman to do so. What does this milestone mean to you, both personally and professionally?

Personally, it’s a significant milestone. I come from a lower middle-class family in Assam. I went on to complete my chartered accountancy, securing the first rank in my batch. Starting my career at Infosys, I was among the few women in the field at that time. While the journey has had its share of challenges, those very challenges have been motivating…They’ve pushed me to strive harder. Professionally, this has always been part of my vision. It’s something I’ve carried in my mind and on my vision board for years. Launching a mutual fund business was a long-standing goal, and now, not only is it a reality, but we’ve also become the first women founded fund houses in India to do it. Going forward, we aspire to be the first in the world in what we set out to achieve.

Being a pioneer in a traditionally male-dominated space must come with its own challenges. Do you feel a sense of pressure or responsibility that comes with leading the way for women entrepreneurs in finance?

This journey has taken 11 years… it’s been a step-by-step process. I started in banking, then moved into fund management, integrated other businesses, invested heavily in technology, and only after that did we apply for a mutual fund license. It’s been gradual but deliberate.

Yes, there is pressure, especially when people constantly remind you that you’re the first Indian woman to do this. But I’ve also found immense support from my husband (Mahavir Lunawat, also the co-founder of Pantomath Group) and family. As Kapil Dev once said, “I’m not here just to play… I’m here to win.”

Your career path, from chartered accountancy to roles at Infosys, ASREC, and Edelweiss, has been diverse. How did these experiences shape your approach to launching and running a fund house?

I began working at the age of 16, gaining early exposure to business by working with business families. That helped me absorb the intricacies of entrepreneurship early on. My corporate experiences taught me essential values like teamwork, discipline, service-level adherence, and the importance of timely delivery.

My 11 years at large organizations like Infosys, ASREC, and Edelweiss helped lay the foundation. Then in 2013, we co-founded the Pantomath Group and I felt ready to take on the challenge of building and managing a team of our own.

With SEBI’s nod, The Wealth Company enters India’s Rs 74.41 trillion mutual fund industry. What is your core wealth philosophy and how do you plan to make investing more accessible?

We began with Alternative Investment Funds (AIFs), which are high-ticket, sophisticated instruments with a Rs 1 crore minimum as per SEBI guidelines. We also operate a Portfolio Management Services (PMS) vertical with a Rs 50 lakh threshold. But to complete an individual’s asset allocation, a mutual fund offering is essential. Mutual funds provide liquidity and are simple to understand, unlike AIFs and PMS, which are inherently more complex and suited only for a small percentage of investors.

Mutual funds, especially through SIPs, democratize wealth creation. Anyone can start with as little as Rs 250 or Rs 500, making them accessible to every household. Our responsibility as fund managers is to manage volatility and guide investors through market cycles, rather than pushing high-risk products.

What is your assessment of the current mutual fund landscape in India? Which demographics are leading the growth?

Maharashtra and Gujarat are the top contributors, but we’re seeing significant traction from Tier 2 and Tier 3 cities, particularly in the B30 segment, beyond the top 30 cities. The incremental growth is now higher in these areas compared to T30 cities. West Bengal, too, shows strong potential. In fact, it features in our top five states along with Maharashtra, Gujarat, the southern states, and northern regions.

How are younger investors from these areas responding to mutual funds, and how do you plan to engage them?

Young investors are often drawn to derivatives and F&O trading, lured by the promise of quick returns. This is partly because, for many of them, money has come more easily compared to previous generations who had to be extremely cautious with savings.

However, after experiencing losses, we’re noticing a shift…They become more disciplined and mature. Our focus is on educating them and bringing them into long-term, goal-based investing through mutual funds, where the emphasis is on capital protection and sustained growth.

Many middle-class investors remain hesitant about mutual funds due to concerns over risk and volatility. How do you plan to build trust in this segment?

We aim to simplify investing. Avoiding jargon is key. Banks enjoy trust because of their proximity and visibility. We’re replicating that approach by being physically present in client communities through our Mutual Fund Distributors (MFDs). These distributors speak the local language, have a trusted presence, and can handhold investors. Also, we deliberately avoid offering risky or overly complex products. We prioritize products with lower volatility to ensure that investors stay the course, allowing compounding and growth to happen over time.

For middle-class or first-time investors, what would you recommend: SIPs, lump sum, or a combination?

A combination works best. Start with a lump sum, followed by a disciplined SIP with no breaks. Consistency is key. Every month counts.

Mutual funds are often viewed as long-term instruments. Are there effective short- or medium-term strategies as well?

Mutual funds are ideal for structured planning. For example, if you’re saving for your daughter’s education abroad in five years, this is the well suited vehicle. You can start with a lump sum and follow it up with regular SIPs, taking advantage of market fundamentals and compounding over time.

With increasing competition in the mutual fund space, how will The Wealth Company differentiate itself?

We work closely with MFDs across towns and cities. They act as the face of our company. Being locally available, speaking the regional language, and having personal connections make a big difference in building trust.

We focus on launching simple, easy-to-understand products. With mutual fund penetration estimated at just 8 per cent in India, we need to scale to 15 per cent, then 40 per cent, as China and the US have. To do this, we must manage volatility so first-time investors don’t panic and exit early. That’s our commitment.

What are your goals for the next five years?

We are deeply passionate, hard-working, and have the right mindset. That gives me confidence that we will do well. We’re also investing in strengthening the distributor ecosystem. India has around 1.7 lakh MFDs today.

As investor participation grows, we need trained partners to guide them, especially when markets are correct. Emotional biases often prompt investors to sell during dips, when they should be buying more. Handling that requires empathy and guidance.

To empower MFDs, we’ve partnered with Moody’s and PGP Academy to offer a fully-sponsored programme in international wealth management. We also include sales and personality development training.

Also, we’re offering training in the new Specialized Investment Fund (SIF) product, which has a Rs 10 lakh entry point. We’re committed to growing both our product suite and the people who deliver it.

Also, we want more women’s participation in this space as it will benefit the economy. If you look at countries like Vietnam or China, their female labour force participation is nearly equal to that of men and that’s reflected in their GDP growth. If India can bridge that gap, it has the potential to propel our economy to the next level.