Anand MFD travels overseas to talk about mutual funds

Gujarat MFD has taken Indian mutual funds to international territories. Mukesh Patel of Khushi Wealth from Anand, Gujarat regularly conducts knowledge sessions for overseas investors. Interestingly, he conducts at least one such program every year.

Intrigued to know the key elements of these programs, Cafemutual spoke to Mukesh who took us back to 2014 when he first held an international IAP.

This is how it started

Mutual funds hold huge potential in the wealth creation journey but have not yet completely reached Indians staying abroad. Thus, NRIs continue to invest in fixed deposits and real estate and fail to tap the opportunities that mutual funds offer. Thus, I started focusing on this investor category through knowledge sessions.

I held my first session in 2014 in the UK and conducted 7 more thereafter. Additionally, I have executed 4 sessions each in the US and Canada, 1 each in Australia and Muscat and 2 in Dubai. Overall, I have reached out to 1,000+ NRIs in close to 10 years.

Here is what goes behind the preparation

In the world of technology, it is easy to conduct virtual IAPs. However, since I travel thousands of miles to conduct these programs, I am taken more seriously. Also, there is higher trust when you have one-on-one conversations.   

Firstly, I create a list of potential attendees with the help of my existing clients who have acquaintances abroad. My friends and relatives staying overseas also help me here. Next, depending on the residing locality of these prospects, I identify the cities to visit.

International IAPs are a costlier affair and include extensive travel. One wouldn’t want to miss meeting prospects. Hence, I get everything ready 2 months in advance.

I begin by calling potential attendees to tell them about the benefits of attending this program and they get interested in knowing more as soon as I tell them that I am flying specially for it. Most importantly, I never wait to receive a specific number of registrations and I proceed with the preparations.

Further, I spend at least two weeks during each visit to get sufficient time to talk with prospects and resolve their queries. Moreover, the Indian community is scattered across cities and this requires a lot of intercity travel. A mix of stays with friends/relatives and at hotels makes this city-hopping easy.

With regard to expenses, it costs me anywhere between Rs 3 lakh to Rs 5 lakh depending on the selected geography. I look at it as an investment which will reap benefits over the long term.

Here is what I tell NRI prospects     

I speak to NRIs about long term wealth creation opportunities in India. The Indian economy which is currently the fifth largest in the world is on its way to being the third largest. Notably, from the current 3.5 trillion dollar, India is likely to reach 30 trillion dollar in the next 25 years. Thus, there are numerous opportunities in the coming future. Even if an NRI has no plans to shift back to India, India’s strong growth is a good enough reason to invest here through mutual funds.   

Additionally, I talk about the key benefits and power of compounding that mutual funds offer and illustrate their performance in the last 25 years. I also touch upon taxation as depending on the DTAA (Double Taxation Avoidance Agreement) between India and the residing country, the investment gains are taxed only once.

This is why they start investing   

I emphasize the all-digital investing process and my personal involvement which frees them from the worries of having to spend extra time to transact and monitor. This in turn assures them that their money is safe. Additionally, in the case of NRIs who do not have KYC documents, I assist them with relevant applications and even help them schedule a visit to India to finish these formalities.   

While the immediate conversion rate in IAPs is 5-7%, it is important to be patient. A knowledge session is only a starting point and converting a prospect into a client is an ongoing process. After my first call itself, I stay connected with prospects via mailers, WhatsApp and calls.

The way forward from here

Today, I cater to over 300 NRI clients. What has worked for me is constant nudging, giving data-backed illustrations of opportunities in the Indian economy, the strong mutual fund performance as against traditional instruments, tax explanation and digital comfort.

My vision is to empower One lakh NRIs to achieve financial freedom. Many NRIs work diligently but may lack the knowledge and expertise to create a mutual fund portfolio. This is where I bridge the gap by conducting knowledge sessions and handholding them to create a financial roadmap, especially in the context of returning to their home country post-retirement.