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Financial Planning ‘SIP helped my client cover his father’s heart operation cost’

‘SIP helped my client cover his father’s heart operation cost’

In this series, we feature interesting case studies of advisers’ clients and what role these advisers played in helping their clients achieve financial freedom.
Banali Banerjee Sep 6, 2016

Paresh Shah, Shah Wealth Creators

I was a frequent visitor to this friend’s office where I happened to meet the receptionist Denzil Rebello who was disabled with permanent blindness. He used to ask me a lot of questions pertaining to my business and eventually we developed a good rapport.

Back when I had first met him in 2001, MFs were not as popular among investors as they are today. He sought my advice on investments which could yield higher returns to provide for his child’s education.  Back then, he merely earned Rs. 5,000 per month. On my advice, he started with an initial lumpsum investment of Rs. 2,000 in mutual funds. Later, as SIP became popular, I advised him to start SIPs.  

As a client, I found him very receptive and even though he did not earn much, he was willingly to take risk.

After his father retired, Denzil started taking care of his family. He faced a crisis when his father met with a severe heart attack and he required money for operation. He came to borrow money from me.  I assured him that his investments in MFs could easily bear the cost of operation. He was very happy to hear this.

Today, Denzil and his wife both earn well and he does an SIP of Rs. 25,000 monthly through Paresh.  

Anup Bhaiya, Money Honey Financial Services

In 2012, a General Manager of a public sector undertaking came to my office to do his retirement planning. But the problem was he approached me just three months before his retirement! He told me that he had investments in 14-15 policies, FDs and direct stocks.

Initially, I took a few meetings to make him understand the pros and cons of his existing investments. Since he was looking for a retirement plan, I advised him to go for 60% equity for a longer term horizon and 40% debt to have enough liquidity in case of any contingencies.

But here comes the twist in the tale. His family, friends and relatives strongly opposed this decision to trust an outsider and invest in equities. They thought he was ‘wasting’ his retirement money by investing in risky products. So I had to persuade his family by showing them the past performance of funds. I also shared with them success stories of other clients to gain their confidence.

However, my efforts to convince his family failed miserably. But the credit goes to my client who went against the decision of his wife and daughters and started investing in mutual funds. Today, after five years, he is happy with the returns he has generated through MFs which have enabled to secure his retirement.

Later, I not only got the support of his family members but also his friends from other parts of the country. Today, I manage the investments of his relatives as well as of his friends many of who I did not even meet once! 

Do you have a story to share? Write to banali@cafemutual.com

1 Comment
Surabhi · 4 months ago
Very Inspiring. SIP can work as wonder if done properly. Investing in SIP is like planting a tree, one has to be patient to avail good results. SIP investment for a long term can yield great overall returns. https://goo.gl/5KEfVi
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