SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News ‘The 3Ts every advisor must follow’

    ‘The 3Ts every advisor must follow’

    M Damodaran, Former SEBI Chairman has urged distributors to build trust among their clients.
    Nishant Patnaik Nov 27, 2018

    Former SEBI Chairman M Damodaran said that mis-selling is not just about selling products that should not be sold to customers but it is about not selling a good product to them. He was speaking at the seventh Financial Distribution Summit held today in Mumbai.

    Urging distributors to establish trust among their clients, Damodaran said if distribution community does not sell good product to people, they will lose trust and trust is central to all relationships.

    Damodaran said that distributors should rely on 3Ts – Trust, Transparency and Technology to grow business. “You need transparency and technology along with trust. However, if trust is missing, technology and transparency is of no use. While distributors should welcome technology applications that have made life better, building trust is the key to grow,” he said.

    Damodaran urged the industry to develop simple products, which are easy to understand. He said that the industry should recognise that there has been a huge knowledge asymmetry between manufacturers, distributors and consumers. Also, complexity has been increasing because manufacturers want to challenge their own ability to come out with something complex. Hopefully manufacturers and distributors understand this but after that chain, no one understands the product, he said.

    Meanwhile, Sundeep Sikka, Chairman, CII Financial Distribution Summit and ED & CEO, Reliance Nippon Life Mutual Fund said, “With the advent of disruptive innovation model by new ecommerce and fintech players, new-age technologies such as cloud computing, customer-facing artificial intelligence, and big data will continue to evolve and not only drive more competition to the financial sector but also improve the way financial businesses provide customer satisfaction.”

    Talking about the opportunities for the industry, Sikka further said that it is projected that national savings in India will reach US$ 1,272 billion by 2019. Over 95 per cent of household savings in India goes to bank deposits and only 5 per cent in other financial asset classes. But the landscape is changing rapidly at present, he added.

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    1 Comment
    Mathaiyan M · 5 years ago `
    Trust is most important than other two T's

    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.