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For Pawan Taneja of K-Secure Finserv, Chandigarh, adding mutual funds to his insurance distribution business in 2021 has been a big boon. With three decades of experience in insurance, he recognized a growing demand among his clients for investment solutions beyond traditional life insurance policies.
Instead of referring clients elsewhere, he took the step to become an MFD himself. In just four years, he has built a monthly SIP book of Rs. 1 crore and an AUM of Rs. 50 crore.
Cafemutual spoke to Pawan to understand his journey:
Tapping into existing clients: Pawan reaches out to his existing set of investors who have bought life, health and motor insurance through him. He approached them through knowledge sessions and one-on-one meetings.
Targeting niche: Pawan targets middle-income young earners in the Rs. 5-10 lakh annual income bracket. With time on their side, they can build significant wealth through disciplined SIP investing. In addition, this income bracket is often entering a stage of life where responsibilities are adding up, making investment even more important.
Keep reminding clients about their goals: Pawan attributes much of his success to the way he structures client meetings. His golden rule? Keep financial goals front and center. “Clients tend to withdraw investments the moment they face an expense, forgetting why they started in the first place. My job is to keep them disciplined and keep their focus on financial goals,” he explains. He uses every meeting to reinforce their long-term goals and the importance of staying invested.
Ask for referrals: A satisfied client is your best marketer. “I ask for referrals as a right, not a favor,” he says, believing that helping others secure their financial future benefits everyone, including their friends and family.
Sharing his experience on becoming an MFD from an insurance broker, Pawan believes that many insurance distributors hesitate to expand into mutual funds due to a lack of product knowledge. His first piece of advice is for them to upgrade skills. “Selling mutual funds isn’t just about selling a product—it’s about managing someone’s money responsibly,” he says. Regular training and certifications helped him transition smoothly.
The second challenge is the mindset shift. Insurance distributors are accustomed to selling protection-first products but mutual fund distribution requires understanding clients’ financial goals. Instead of jumping straight to getting people to invest, he emphasizes that distributor should first understand why the client wants to invest and what their long-term financial aspirations are.
Pawan currently manages AUM of Rs.50 crore in mutual funds.
