Principal Business Champions - Winning Ideas, a joint initiative by Principal MF and Cafemutual provides advisors a platform to share their experiences and business insights with the advisory community.
In the latest edition of ‘Principal Business Champions – Winning Ideas’, we asked MFDs across the country to share how they have managed to rebuild their client’s trust in debt funds.
Here are the entries that received the highest votes.
Winner on website: Kunjan Shah from Mumbai
‘I did zoom calls with all my clients to address their concerns related to debt funds’
I spoke to most of my clients through zoom calls after the industry witnessed heightened redemption pressure and volatility in the debt market triggered due to coronavirus pandemic. I explained to them about risk mitigation strategies deployed by fund houses and RBI’s special liquidity window to deal with the situation. I also shared with them AMFI’s note which says that more than 95% of debt assets of the MF industry has been invested in high rated instruments, which are much safer.
Winner on Facebook: Rajesh Tatia from Jodhpur
‘Increased interaction with clients and conducted webinar on debt funds’
I first made a list of clients having exposure to debt funds and approached them through video calls to address their concerns related to investments. In fact, I reached out to at least 5 such clients every day. I used these interactions to explain to my clients about credit risks funds and what led to the rising redemption pressure in debt market.
Besides this, I also conducted a webinar for my clients in which I invited fund managers and CEOs to address concerns of investors on debt funds.
Winner on Twitter: Rajesh Chedda from Goa
‘I asked my clients not to follow news’
Over the last few days, most media houses have been publishing negative news and articles on debt funds and Indian economy. This has discouraged many investors from putting their money in mutual funds or continuing with their existing MF investments. Hence, I recommend to my clients that they should avoid negative news and focus on the quality of the portfolio of the scheme.
To give confidence to my clients, I conducted webinar on personality development, increasing productivity during work from home and following a passion during lockdown. I also conducted a webinar in which I invited industry’s top fund managers to talk about the impact of coronavirus pandemic on both the Indian and world economy.
