No one knows budgeting better than homemakers do – they are experts at making the rupee go a long way. It is no surprise then that anecdotal evidence suggests that most homemakers set aside money from the household expenditure kitty and save it for a rainy day. While earlier these savings were deployed in gold, fixed deposits, etc., they are now shifting their focus and are trying to park these savings in mutual funds through SIPs.
Veteran IFAs say that this is a new set of clients who need to be educated as they can save much more; once they understand the concept and are convinced that MFs can deliver better returns compared to gold or fixed deposits, they will be loyal and profitable customers of IFAs.
CK Vanitha of cProfit Investment Centre feels it is a great idea to insist on the wife’s presence while advising a family. That way, the IFA can shift the conversation and involve the wife to educate her on the risk and returns. “I have convinced many such housewives who are now comfortable with investing in mutual funds. They are happy as they are respected in the household as they become capable of taking financial decisions,” she added.
In fact, IFAS would do well to conduct seminars for the wives of existing clients where they can be educated about investing in mutual funds.
Suchita Ambardekar, founder of Tecwealth told Cafemutual that an ideal pitch to homemakers should be very simple and should not involve jargon.
“Homemakers are mostly interested in investing in mutual funds through SIPs. They are comfortable with the fact that they can withdraw the invested sum at any given point,” she added.
