Business Development ‘Stuck with his loss in direct equity, the client turned to me for advise’

‘Stuck with his loss in direct equity, the client turned to me for advise’

Ajay Kale and Imran Gilani recall the memories of acquiring their first MF clients and how this experience has helped them in their practice.
Darshita Shah Jan 3, 2017

Ajay Kale, Nashik based IFA

I started my advisory practice at the age of 19. Since I had no experience, very few people took me seriously. But that didn’t deter me.

Besides selling post office saving schemes, I was also providing ancillary services related to investments. I was helping a retired gentlemen claim his insurance policy. He had already invested in a mutual fund through another distributor. He told me that he had incurred some notional loss even after holding the investments for more than five years. I advised him to switch his investments to another fund to avoid further losses.

I patiently explained to him how mutual funds operate and the magic of compounding. Because he had seen negative returns from his past MF investments, he was reluctant to reinvest in MFs. But I managed to convince him to start with a small amount again. Heeding my advice, he invested Rs. 5,000 in a balanced fund. Within a span of five years he not only recovered his previous losses but the scheme performed better than his expectations.

Though he was acquainted with the concept of mutual funds my guidance helped him become a smart investor.   

This experience taught me that I should never give up. I was facing difficulty in getting MF clients. If I had given up during my early days, I wouldn’t have reached where I am today.

Imran Gilani, Palghar based IFA

Before I started my career as an advisor I was a sub-broker at a well-known broking firm. I sensed an opportunity in this field and decided to float my own venture. I informed all my past clients that I have become an entrepreneur.

One such client with whom I used to deal as a sub broker called to congratulate me. During the conversation, he sounded worried as his portfolio performance was stagnant. His portfolio consisted of direct equity mostly. Since he was not able to keep a tab on his portfolio, I offered to help. I introduced him to mutual funds. He had never invested in MFs because some of his friends had a bad experience investing in MFs.

I tried to explain to him about mutual funds and wealth creation through SIP route. But He wasn’t convinced in the initial few meetings so I didn’t push him.

Soon, he grew impatient because his equity portfolio was not performing up to his expectations. To my surprise, I got a call from him. He said he wanted to invest in mutual funds. He regretted not heeding to my advice. I calmed him down and explained to him that he can recover his loses if he followed my advice. He started an SIP of Rs. 10,000 after selling his stocks.

Even though I knew this client previously and shared a good rapport with him, it wasn’t easy to convince him to invest in mutual funds. This experience taught me to be patient. 

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