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Mutual funds can do wonders for people provided they stay invested for long term. While most MFDs/RIAs encourage clients to stay put, several investors exit mid-way after seeing volatility or booking profits.
Team Cafemutual spoke to Celso Fernandes and Mukeshbhai Jetani who have inculcated sound investing discipline among their clients. Let us look at what they have to say:
‘The Art of Storytelling’ by Celso Fernandes, Nave Marg Financial Consultant, Goa
Every week, I identify a particular theme and weave a story around it. The theme could be anything that you want your clients to know. For example, I have written stories that bring out the importance of investing for children and the need for exercising patience and discipline. At times, I also pen down success stories of my existing clients on how they achieved their financial aspirations by investing in mutual funds for long term. This inspires other clients and also teaches them some financial lessons.
Most importantly, I keep my story short with a reading time of under 3 minutes. Also, to make them more relatable, I narrate real-life experiences of my clients while maintaining their anonymity. Such stories highlight both, difficulties as well as solutions.
Another important thing is consistency. I share these write ups every Thursday through WhatsApp, which has now become the most convenient medium to stay connected.
Overall, storytelling has helped me create many disciplined clients.
‘Long Term commitments and Thought-provoking messages’ by Mukeshbhai Jetani, Rajkot
I follow 10-15 rule i.e. I only take equity money if client gives me commitment of 10 years through lumpsum and 15 years through SIPs. Otherwise, I recommend them to look at hybrid categories or debt funds. A commitment like this increases their seriousness in investment.
I also send them thought-provoking WhatsApp messages. Let me share an example, I once asked my clients to jot down the names of five individuals whom they think will extend monetary support during their retired life. My next message was, ‘If you can’t think of these names, you should start looking at retirement planning seriously.’ Usually, clients reach out to me after reading such stimulating messages. I recommend them to start savings for their retirement through long term SIPs.
Hope you have drawn important lessons from these stories. We look forward to hearing from you on how you have inculcated long term investment discipline among your clients. Do write to us on nishant@cafemutual.com and karishma@cafemutual.com.
