Here are a few takeaways from Aashish Somaiyaa’s session at the Network FP National Conference in Mumbai:
- Target young investors: Earlier, investors used to believe that government bonds offered better returns than equities. This made it difficult for distributors to pitch mutual fund products because of their inherent risk. As compared to the older generation, majority of today’s investors are young and do not have unrealistic expectations. Thus, financial advisors would do well to focus on people below 40 years of age.
- Go digital: Acquire young clients through the digital medium. For instance, social media and other digital tools will help you reach your target audience more effectively. To stay relevant, reinvent your marketing strategy and constantly try to approach your clients in new ways.
- Educate clients: Market appreciation is not the only reason why the industry is getting good inflows through SIPs. It is also because people have become more financially literate and are willing to take risks. So client education is key to grow your business.
- Don’t fear market downturn: Markets are volatile and discussing such events on a regular basis will only create anxiety and nervousness among your clients, no matter how simply you explain the situation. Instead, get them to focus on their long term goals. It may happen that your clients’ portfolios get affected in the short term due to many of these unforeseen events. Assure them that it would not affect their long term goals and you will review the portfolio at regular intervals.
