Millennials involvement in mutual funds is increasing. However, the question that persists is how to tap these young investors?
In an attempt to answer the most sought after question, Cafemutual approached a few MFDs to understand their views and current practices when it comes to youngsters. Here is what MFD Anupama P Juvekar, Suresh Sadagopan of Ladder7 Services and Viral Bhatt of Money Mantra have to say.
- Leverage your existing client relationships - On reviewing your current client portfolio, you are bound to realize that every client in your book is related to or is familiar with some youngster. These youngsters could either be their children, relatives or family friends. As rightly pointed out by Anupama and Viral, referrals can be a powerful tool for tapping young investors. It doesn’t stop here, young investors who experience your positive responsiveness and guidance are bound to refer you to their friends. Hence nurturing your existing relationships can make way for newer and younger clients.
- Reach out to them virtually - Suresh terms the youngsters hyper net-savvy. Hence another way to reach out to them is through the intelligence of internet advertising. This can help you meet the internet friendly youngsters on the pages they usually visit and/or follow.
- Take small steps - Anupama happily helps her clients avail KYC documents for their children. A simple PAN application could see the start of a new relation. It can also lead to a gradual shift from applying for a KYC document to registering for a SIP. Being involved with their little needs lays the foundation for stronger and long-term relationships. The key lies in educating your clients about the importance of doing their minor’s KYC on time.
- Have a direct interaction - Youngsters relish an equal involvement in the decision-making process. Viral feels that you must directly speak to the prospects to bridge the gap between their expectations and your guidance. The idea of dealing with them only through their parents may complicate the process and shall also take away the young investor’s sense of involvement.
- Keep it short and relevant - Viral believes that communication with youngsters must be crisp and relevant. You need to get into their shoes to connect with them better. Someone from the age bracket of 25 to 30 would be keener on planning for a trip overseas rather than retirement planning. Be a guide to them to plan their short-term wants and eventually graduate to educating them on the long-term aspects.
Youngsters are full of ideas and different financial visons. In case you feel they pitched something illogical, don’t offend them by an upright dismissal. Rather, be patient and explain to them the pros and cons of their propositions.
