I entered the financial market distribution business in 1985. Gradually, I realized that in the long term professional financial advisory held tremendous potential. So to prepare myself for this opportunity, I did my CFP in 2006. After completion, I slowly started promoting it but realized that the concept of advisory was new in India and investors were not interested in making their financial plan. Just when I was struggling to set up my advisory business, SEBI banned entry load and it became difficult for us to survive on the trail commissions. I needed to figure out other ways to survive as well as build a sustainable business model.
So, I decided to create awareness among my clients on financial planning and charge a fee for it. I arranged a discussion with some of my clients who had substantial SIP investment and explained to them the new developments.
I also brought about a few changes – monitoring portfolio through a quarterly review of investments, underlining the importance of a financial plan for a secured life with each client in all interactions. My clients were impressed with my suggestions and understood the importance and necessity to develop a financial plan. After patiently hearing the new regulatory rule and my suggestions, they were willing to pay me a fee.
Prabhakar Ghosh’s personal research on funds helped him to survive and sustain in the industry during downturn.
I got in to fund distribution in 1999. Initially it was difficult to build-up a client base because the concept of mutual fund was new among investors. Just as I was struggling to build clientele during that phase, the tech burst happened in 2000 and as the markets tanked, so did the performance of mutual fund houses.
This created a negative atmosphere among investors. It was very difficult to convince the investors. I decided to do a more exhaustive study of the situation. My aim was to evaluate mutual funds more intensively on my own. I took every opportunity to attend all trainings and seminars conducted by the fund houses to gain mastery over the product. Finally, after many visits to fund houses and a lot of discussions with their team, I narrowed down my selection to three funds that I felt were best equipped to deliver over the long term.
Then, I approached a selective group of clients who I thought, would listen to my explanations about mutual fund industry patiently. This process helped me to build a base of loyal investors, whose investments helped me to survive during the bad phase.
