Stock markets have witnessed a steep fall due to concerns over the fallout of covid-19. So far, in 2020, Nifty 50 and Sensex have fallen nearly 30%. In fact, the covid-19 threat has wiped nearly Rs. 3 lakh crore from the mutual fund industry.
Naturally, your clients are worried about their investments in these turbulent markets. We spoke to two MFDs to know how they are dealing with client concerns.
Neelesh Shah of Moneydoctor Consulting and President KAMFA, Bengaluru
Stay in constant touch: I ensure that I call at least five clients a day. Also, I stay in constant touch with my top clients. In these calls, I update them on markets and economy and ask them to top up SIPs in equity funds as the current correction in the markets offers attractive valuations.
Arrange interaction with fund managers: The current market turbulence can shake anyone’s confidence. To address concerns of my clients, I arrange conference calls of my top clients with fund managers. These interactions with fund managers give investors a deeper perspective on the market dynamics and reassure them that their money is being managed well by competent professionals.
Uddhav Tulshibagwale of Udyam Investments, Pune
Long-term focus: Many investors who committed to stay invested for the long-term have now turned up saying that they want to redeem their investments. Since clients hear negative headlines quite often, they fear that they would be making a fool of themselves if they do not redeem now. To allay these concerns, I acknowledge their concerns first and then gradually try to show them the big picture. I ask them if their long-term goals or time horizons have changed. If not, I remind them of the reasons for their investment and allocation to an asset class like equity.
Address concerns proactively: On every sharp fall in the markets, I send an email to the entire client base giving them a perspective on the development. I also attach a feedback form to encourage clients to respond with queries. This exercise gives me an idea about how worried my clients are about their investment. Based on these responses, I zero in on clients who need the extra touch and schedule video call with them.
