The fifth ‘Principal Business Champions’ contest got an overwhelming response from the IFA community.
‘Principal Business Champions –Winning solutions’ is a joint initiative of Principal Pnb Mutual Fund and Cafemutual to help advisors learn from the best practices of other IFAs.
Here are the ‘Winning solutions’ that got the highest votes.
Winner on website: Sandeep Bhushetty of Chatur Investments, Pune: Recommend a product that can give me the best returns
It is difficult to predict the future returns of a product or fund on the basis of its past performance. We, therefore, tell clients not to chase returns; instead, focus on the goals.
Also, clients worry about how their heirs will receive the investment returns once the client passes away. We educate them about the nomination facility and discuss their succession when we onboard clients. We also assure them that we will always be there for their loved ones even after their demise.
Many times, clients are confused while setting their investment goals and time frame. We make clients understand that investments goals depend on their priorities and needs. We ask them to have clear segregation between their needs and aspirations and encourage them to stick to the investment plan to achieve their financial goals.
Winner on Facebook: Rajesh Kumar Sodhani of Sodhani Investments, Jaipur: Is the market overvalued?
Market volatility can trigger emotional responses in clients, causing them to feel upset or worried. Therefore, we stay in constant touch with our clients, helping them adhere to their financial plan, and stay focused on the long term during turbulent times. In fact, at times, we even arrange for fund officials to share their views on the market.
Queries related to investment redemption are also popular among first time investors. When clients ask such questions, we first remind them about their financial goals for which they started this investment. We also highlight benefits of investing long term in mutual funds and the power of compounding.
Clients have now got tech savvy and want us to use the latest technology for their benefits. Hence, we upgrade services and update our website constantly to match with the latest development in technology space. In fact, we have a 3-member team which looks after technological advancements that can help our clients simplify investment process.
Winner on Twitter: Dhiren Gala, Moksh Consulting, Mumbai: Have you invested your money in the schemes you recommend?
I show my account statements and holdings in various mutual funds right away when this question pops up.
Clients are often reluctant to pay fees to financial advisors as most of them believe they are entitled to free financial advice. During such times, I show the client the value he derives from our expertise in comprehensive financial planning and investment management by paying fees. I also cite relevant examples and discuss real life case studies of clients that have benefited from our service.