In theory, becoming a distributor of financial products is quite easy. All you need to do is clear a few exams conducted by IRDAI (to become an insurance agent) and NISM (to become a MFD). Getting into this profession does not requires extensive study or practice as in the case of say becoming an engineer or a doctor.
This brings us to a very important question — should we consider ourselves as an expert in the subject of investment, given the lack of extensive training?
If your answer is yes, then you need to figure out your specialisation or unique value proposition, which can be one of these or something similar — asset allocation, goal planning or estate planning.
Selling SIP, suggesting funds and analysing fund performances can’t be a specialisation.
Achieving specialisation in any field requires years of practice and the financial distribution business is no different.
What’s value proposition?
Value proposition is an expertise or talent that differentiate you from other MFDs. And once you develop that kind of expertise in any investment related field, it is advisable to stick to offering only those services just like doctors do. A doctor who specialises in heart treats only heart patients and an orthopaedic surgeon deals only with bone and muscle-related problems.
But unfortunately in personal finance, we try to become the jack of all trades and as a result we fail to master even one subject.
At the end, all I want to say is that we assume ourselves to be financial doctors but in practice we concentrate only on selling products. This, according to me, is problematic. As a MFD, we must discover our interest in one of the subset of this profession and become an expert in it.
What, according to you, is your unique value proposition? Please let me know in the comments section below.
