With India’s burgeoning young population drawing decent salaries than they were earning few years back, mutual fund advisors can tap the generation next if they plan their strategies well. While a married man in his 30’s would be keener on building a nest egg for his family, youngsters who have just started earning may like to splurge. Just the way needs and risk appetite of various investors differ, IFAs need to provide tailor made solutions for youngsters depending on their goals, as one-size-fits-all strategy might not work.
Advisors say that the best way to reach out to youngsters is through conducting seminars in companies which employ young workforce. “Tying up with rotary clubs, interact club, and conducting investor education seminars in IT parks and medical colleges work. We had offered a good financial deals for Rs 149 in snap deal. This advertisement attracted a lot of young crowd,” said Kanak Jain of Suskan Financial Services.
“Conduct corporate training in office where a lot of youngsters work. Conduct investor education programs in business schools. We can tap young clients by apprising them of online investments. Advisors could get at least ten prospective clients,” says Gajendra Kothari of Etica Wealth Management.
Below are a few tips which could help you reach out to youngsters
- Young clients could be more susceptible to redeeming their money early. Thus, it is important for you to clearly align investments with goals.
- Provide a comprehensive financial plan rather than a piecemeal approach, if possible.
- Demonstrate the benefits of starting investments early (power of compounding, time value of money, etc)
- Ask them to avoid investing by speculating or leveraging
- Focus on short term goals like a car, holiday, etc than a long term goal like retirement
- Communicate to them in an easy to understand manner
- Reach out through social media (for eg :- write a blog and invest in attracting traffic to your blog/website as most youngsters first try to find information though internet)
- Give them convenience of investing online and through SMS
- Recommend auto pilot investments like SIPs which will in a way force them to save
- Give them realistic projections
If you have any ideas which you think have worked well for you, do share them with us.
