If you depend on product brochure or fact sheet to sell a scheme, you surely need to revisit your approach.
Biju Dominic, Co-Founder and CEO, FinalMile Consulting believes that the IFAs should change their pitch i.e. from highlighting scheme returns to giving social proof. He was speaking at the Cafemutual Confluence 2019 held recently in Mumbai.
He said that a story on number of investors in a scheme and how they have benefited from the scheme would encourage many investors to invest in mutual funds with you. He said, “Human beings need reassurance rather than promises of some returns, if people always hunted for returns they would have never invested in gold. More people invest in gold than in mutual funds. Remember, not even a single investor researches thoroughly about gold prices and returns on a daily basis.”
Here are other key highlights of his speech:
- IFAs should be able to explain to investors about concept of mutual funds and SIP in a simplified manner without using numbers or jargon
- To persuade clients and get them to invest more in mutual funds, the key is to speak the language that they understand
- Willingness to invest in mutual funds depends on expectation set by advisors
- IFAs should be able to develop trustworthy relationship with clients, similar to that of a jeweler whom people trust for buying gold for generations
- IFAs need to enhance human touch, fill the emotional gap and psychological distance to penetrate this market
