Investor education programs (IAPs) have become popular among IFAs. IAPs are a platform for IFAs to educate their clients, spread awareness about mutual funds and connect with potential investors. Many IFAs have acquired new clients through these events. Take the case of IFA Gajendra Kothari, Etica Wealth Management - in his initial days, he got 80% of his clients through investor awareness seminars.
Here are a few tips to help you conduct IAPs effectively.
Approach large institutions
Tap large organisations like corporates, associations and educational institutions to run IAPs for their members. Position your IAP as a welfare initiative, which will help their employees or members enjoy better financial health. Approach the HR department (corporates) or secretary (association) or trustees (educational institutions) for permission to conduct the IAP.
The benefit of conducting an IAP for large organisation is that you only need to convince the management not individual investors. Moreover, as the audience will be a homogenous group, you can customise your session to target their concerns for better results.
Request your clients to bring a ‘plus one’ to the IAP
Invite your existing clients and encourage them to bring along at least one friend or colleague to the IAP. IFA Sachin Kharate, Varad Financial Services gives his existing clients two extra passes for the IAP sessions so that they can call their friends and immediate relatives also. This helps him get referrals from his clients as well as have a good audience for the IAP.
Pool your resources
Generally, venue rent is the most significant expense of an IAP. To minimise this cost, a few IFAs can come together to host a joint event. Not only will it lower your cost, you can also cater to a larger audience as each IFA will bring in participants in the IAP. IFA Sudhanshu Sekhar Mohapatra has been conducting IAPs along with his fellow members of Odisha Mutual Fund Association of Advisers (OMFAA) for many years now. According to him, a joint session helps them divide their responsibilities equally and share expenses.
Keep the premise interesting
Investors do not want abstract ‘gyan’; they are more interested in solutions. Sessions on ‘How to retire at 40’ or ‘Five things to remember while planning for your child’s foreign education’ will generate more participants than a presentation explaining investment concepts. In short, do not bombard the audience with financial jargon. Use case studies and anecdotes appropriately so that people can relate to your points. You can also request your clients to share their investment success stories with the audience.
Invite guest speakers
Have expert speakers at your IAP to create more interest. While fund houses cannot conduct their IAPs through IFAs, many AMCs are happy to support advisors through speaker participation. You can invite fund managers and top AMC executives as speakers at your IAP. They can clear investor doubts and share their perspective and experience.
Close the session with actionable ideas
Share some actionable ideas like starting a SIP at the end of the event. For better recall, give each participant an attendee kit, which includes a brief summary of topics covered in the presentation.
Offer a free consultation
Offer the attendees a free 30-minute consultation on their financial health; request them to visit your office for the consultation within two weeks of the IAP when the session is still fresh in their minds. This can be the second touchpoint with the potential client. While the IAP demonstrates your subject matter expertise, in the one-to-one sessions, you can connect with each attendee on a more personal level.
Maintain a database of attendees
Maintain a list of interested investors and follow-up with them after a few months to see if they would like to invest.
Key takeaways
- Keep the IAP topic interesting and relevant for the audience
- Share client testimonials and case studies for greater impact
- Offer actionable ideas to encourage them to invest
- Conduct joint IAPs with fellow advisors to reduce cost
- Offer free financial consultation to attendees to establish a second touch point with them
- After a few months, reconnect with attendees who have not started investing with you
