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Goa-based Mutual Fund Distributor (MFD) Hari Kamat, who runs HGK Investment Avenue, has achieved a significant milestone by crossing AUM of Rs. 1000 crore. His business serves more than 5000 clients.
Hari started his career as a Public Provident Fund (PPF) agent but shifted his focus entirely to mutual funds in 2003. He has successfully converted many fixed deposit (FD) clients into disciplined mutual fund investors.
Hari Kamat shares seven timeless lessons that have helped him build a strong distribution business. Let’s hear from him:
Go with the flow: One thing that will surely work is keeping faith in your business. While many of us have witnessed a lot of temporary disruption due to regulatory headwinds like introduction of direct plans, rationalization of TER, upfront commission ban and so on, those who have stayed the course and focussed on growing volume saw their business grow multiple times. You simply need to trust what you do and go with the flow.
Invite clients to office: When I started my distribution business, I used to visit clients to seek business. I did this for five years. However, eventually I realized that clients are more comfortable coming to my office to discuss their finances.
Also, if a client comes to your office, he is serious about investments. Hence, I don’t visit any clients. People can simply walk-in to my office without taking any prior appointment to discuss their investment.
Focus on relationship building: I am a finance guy and I like to help people with all their financial matters. Even if it is not related to mutual funds, I try to help them deal with their issues related to finance. For instance, I recently helped a client to comply with taxation with the help of a CA. These things are beyond my scope of engagement but still I do it to strengthen my relationship with clients.
Pay attention to small things: Many clients often want their MFDs to send them reports like account statement or capital gains statement. You should keep these details handy. Once you get a request for such a statement, you should generate such reports and send it to them immediately. Clients value these small things and are more likely to give you referrals.
Never stop prospecting: Many MFDs do not take new clients after reaching a certain scale. However, MFDs should always focus on acquiring new clients. I get most of the clients through referrals. I make it a point to meet new prospects daily. MF distribution business is a function of two things - incremental inflows and mark-to-market changes. While you cannot do anything on market gains or losses, you can certainly take charge of incremental business from new and existing clients.
Focus on mutual funds: I don’t offer any product other than mutual funds. While I recommend people to buy term and health insurance, I don’t facilitate services in these instruments. I am an expert in mutual funds and I will continue to focus on mutual funds only as it offers great business potential.
Never stop learning: I regularly upgrade my knowledge by reading articles on www.cafemutual.com daily and attending webinars, conferences and training programs. When you read articles on Cafemutual and attend various webinars, you learn practical business tips that you can implement in your business.
Team Cafemutual congratulates Hari on this achievement and wishes him all the best for his future endeavour.
