Nilesh Shah
MD, Kotak AMCShah has over 25 years of experience in capital markets. He has managed funds across equity, fixed income securities and real estate. He has studied at the Institute of Chartered Accountants of India. Shah has also co-authored a book - 'A Direct Take'. His dream is to go backpacking with his better half some day.
Raising a toast to mutual fund adviser: In tune with time to make you money
NEW DELHI: Investor-centricity is the core of the mutual fund business. In my career and through my experience, I have come to realise that theory is only as good as the creative practice that you can bring in to bear. It is in the earnest execution of your work that you can deliver your quality of service, trust, communication and knowledge to the investor.
I have observed that the innovative practices that many successful distributors have developed in scaling up their businesses can be broadly categorised as activities for client acquisition, client penetration, client delight and client mindshare.
For instance, I know an IFA who makes it a duty to visit the hospital at the time of baby’s birth in his community to ensure that the new father commits himself to lifelong investment for the baby’s welfare through SIP: be it for education, marriage or foreign studies.
Similarly, another prominent IFA has made it a cause to visit the happy occasions of his clients and their families, such as marriage or house purchase etc. and signs them up for retirement planning solutions or saving for long holidays.
What is common is that a distributor is working to transfer the investors’ commitment of that happy occasion into a tangible financial goal that will prolong the essence of that event.
In another example, I have had the opportunity to visit many investor meets organised by IFAs. I have observed that the best follow-through a distributor can do henceforth is to provide for a closure to the investor. This can be done by as little as providing an investment form at the point of the event to fructify the advice.
Then there is a need to reach out to the underserviced demographics and/or professional groups such as Army, police and paramilitary.
Digital outreach is another important activity through with the distributor community may reach out to the investors and implement product awareness, sales, after-sales and communication. It also matters where a distributor’s office is located. More often than not, a retail investor-oriented distributor may be better off, if the office is located on the ground floor rather than the fifth floor. The situation reverses if the clientele is primarily HNI.
Positive testimonials from your prominent and reputed investors in the local community would also go a long way in establishing presence and preference in minds of other potential investors.
Specialising in the product niche that your investors seem to be liking but have a diversified portfolio across the management style (value, growth, contra, momentum) is important. In one instance, an IFA helped his investors pursue their mutually-shared hobbies more vigorously and was able to create a bond built on trust and sense of belonging.
Finally, advisors are an important keg in the mutual fund wheel. And it is the quality of service and their knowledge that they bring to the table, which drives the growth in the mutual fund industry. It is, therefore, important for all the stakeholders to come together and enable and empower advisor to serve their clients better.
I have observed that the innovative practices that many successful distributors have developed in scaling up their businesses can be broadly categorised as activities for client acquisition, client penetration, client delight and client mindshare.
For instance, I know an IFA who makes it a duty to visit the hospital at the time of baby’s birth in his community to ensure that the new father commits himself to lifelong investment for the baby’s welfare through SIP: be it for education, marriage or foreign studies.
Similarly, another prominent IFA has made it a cause to visit the happy occasions of his clients and their families, such as marriage or house purchase etc. and signs them up for retirement planning solutions or saving for long holidays.
What is common is that a distributor is working to transfer the investors’ commitment of that happy occasion into a tangible financial goal that will prolong the essence of that event.
In another example, I have had the opportunity to visit many investor meets organised by IFAs. I have observed that the best follow-through a distributor can do henceforth is to provide for a closure to the investor. This can be done by as little as providing an investment form at the point of the event to fructify the advice.
Then there is a need to reach out to the underserviced demographics and/or professional groups such as Army, police and paramilitary.
Digital outreach is another important activity through with the distributor community may reach out to the investors and implement product awareness, sales, after-sales and communication. It also matters where a distributor’s office is located. More often than not, a retail investor-oriented distributor may be better off, if the office is located on the ground floor rather than the fifth floor. The situation reverses if the clientele is primarily HNI.
Positive testimonials from your prominent and reputed investors in the local community would also go a long way in establishing presence and preference in minds of other potential investors.
Specialising in the product niche that your investors seem to be liking but have a diversified portfolio across the management style (value, growth, contra, momentum) is important. In one instance, an IFA helped his investors pursue their mutually-shared hobbies more vigorously and was able to create a bond built on trust and sense of belonging.
Finally, advisors are an important keg in the mutual fund wheel. And it is the quality of service and their knowledge that they bring to the table, which drives the growth in the mutual fund industry. It is, therefore, important for all the stakeholders to come together and enable and empower advisor to serve their clients better.
