Advisors list down the two most important things they learned in 2013.
While many of us make new plans in our personal and professional lives to start afresh in New Year it is also important to reflect on the past and find out what the year gone by has taught us. Cafemutual asked leading advisors to share two things they learned in their practice which helped them succeed.
Amit Kukreja, WealthBeing Advisors
1. Never be aggressive in client acquisition process. Remember the relationship in this profession with your clients is based on trust. It takes a while to build that trust & comfort before he/she opens up with all financial details seeking guidance. Keep a doctor's or a lawyer's profession in mind, they (especially the good ones) are never after their clients i.e. patients or people with legal troubles. And once the trust is built, ensure that trust is maintained. Soft skills play a very important role in doing so.
2. Establish a strong presence in media to share the prospects & pitfalls of investments, financial products, processes etc. Write for magazines, blogs, journals, newspaper columns, website sections etc. The more visible you are to people through media, the easier the trust building becomes. In fact, you don't need a marketing team at all if your presence is very high across various media.
Deepali Sen, Srujan Financial Advisers LLP
- On the business level, I'm trying to get used to asymmetry in my life. Things don't necessarily happen as per plan and there are both positive and negative surprises. I have understood that inconsistency in revenue is here to stay.
At the client level, I find them to connect better with me when we get talking about money, per say :
- on a philosophical level and
- trying to explore one's behavioral and psychological relationship with money
- Once the connection is established the need for financial planning gets established and the trust starts building. Also, they are keen on knowing how you as a financial planner have fared in shaping your financial life. The latter often serves as a confidence building measure.
Gajendra Kothari – Etica Wealth Management
1. We should always do risk profiling for our investors as it gives great insights into an investor’s behavior. Also, we should always advise a product which is one notch below in risk to the requirement of the investor. An actual return of say 11% instead of the expected 12% is still fine. But a higher volatility product can make the client quite nervous particularly in the initial years of relationship.
2. Critical Illness cover is one thing which I have learnt is very important; every young investor should have this cover. It is very cheap and also helps him in the eventuality of any life threatening disease.
Rajesh Chheda, Finance Factory
1. Compliance pays. I recently got my SEBI Registered Investment Advisor (RIA) status. This has helped me get professional recognition.
2. Collaboration pays. Due to RIA status, a USA based financial planner decided to collaborate with me regarding cross border and India based accounts.
Rajesh Hattangady, THiiNK
1. Keep innovating or else you will perish
2. Short term results don't guarantee long term relationships
