One of the foremost concerns of IFAs, both new and old, is how to develop a sustainable advisory model. Getting started is one thing but to sustain it and keep growing it is another. We spoke to few successful Mumbai based IFAs to know their success mantra.
Most of the successful IFA follow these three basic things:
- Maintain client relation – Once you acquire a client, the next task is to maintain and develop a relationship with the client. Obvious, right? But the fact is that many IFAs do not bother to stay in touch, particularly with their smaller, retail clients.
Seasoned IFAs will tell you that if you build a rapport with these clients they might turn out to be long term investors.“IFAs should focus on long term small retail customers and try to develop a strong bond with them rather than running behind a HNI client. Most of the HNIs hire two-three advisors and allot each IFA a small part of their portfolio. But retail clients are loyal and the cash flow is continuous,” said Vinod Jain, CEO of Jain Investment. - Knowledge – IFAs need to update themselves continuously with the current happenings in the fund industry because he has to help his client take smart investment decisions. An IFA has to be alert all the time because his one wrong decision due to lack of knowledge can result in losses for his clients. So, he has to follow news and read different reports or surveys available in the industry.
- Servicing - In the current market situation, it’s all about offering door-step or online service. With time being a precious commodity, most investors do not want to go through transaction hassles. So, the successful advisors advise new upcoming IFAs to offer technology to clients so that things can be done quickly. “Most of my investors are technology savvy and I have provided them with the required services at a click. So they can monitor their portfolio from anywhere in the world,” said a top Mumbai based IFA.
- “Facilities such as online viewing of portfolio, sending consolidated portfolio statement, e-mailers should be provided by IFAs to make investments comfortable for investors," said Hemant Rustagi, CEO, Wiseinvest Advisors.
The advisors also need to stand by the client during his hard times. Most of the advisors avoid attending calls of investors during a bear market. “Instead of avoiding calls, try explaining them the situation and give them the solution for the same. Handholding clients in difficult times is a part of advisor’s responsibility,” shares Hemant.
These things, when put in practice, will help the IFAs to gain confidence among investors and also build a sustainable model where investors will not flee away, direct plan or no direct plan.
