Most new IFAs who enter the industry grapple with the challenge of how to develop a sustainable advisory model. It is easy to initiate any business but it is difficult to sustain and be successful. So, we spoke to few successful IFAs to know their success mantras.
Most of the successful IFAs follow three basic steps:
- Maintain client relation - After acquiring a client, the most important job is to maintain the relation with the client. Many IFAs neglect small retail clients. But if you build a rapport with these clients, they might turn out to be long term investors.
“IFAs should focus on long term small retail customers and try to develop a strong bonding with them rather than running behind a HNI client. Most of the HNIs hire two-three advisors and allot each IFA a small part of their portfolio. But retail clients are loyal and the cash flow is continuous,” said Vinod Jain, CEO of Jain Investment.
To develop a strong bond with the client, it helps if the IFA can provide a more comprehensive package of services and holistic advice. Other products such as medical/car insurance, loan products can create greater stickiness.
- Knowledge – IFAs need to update themselves continuously with the latest trends and happenings in the fund industry because he has to take client's investment decisions. An IFA has to be alert all the time because one wrong decision can result in losses for clients. So, he has to follow news and read different reports or surveys available in the industry.
- Servicing - In the current market situation, it’s all about offering quick and convenient service. Now-a-days, investors do not want to go through transaction hassles. So, the seasoned advisors advice upcoming IFAs to offer technology to clients. “Most of my investors are technology savvy and I have provided them with the required services at a click. So from anywhere in the world they can monitor their portfolio,” said a top Mumbai based IFA.
“Facilities such as online viewing of portfolio, sending consolidated portfolio statement, e-mailers should be provided by IFAs to make investments comfortable for investors," said Hemant Rustagi, CEO, Wiseinvest Advisors.
The advisors also need to stand by the client during his hard times. Most of the advisors avoid attending calls of investors during a bear market. Instead of avoiding calls, try explaining them the situation and give them the solution for the same, shares Hemant.
Recently SEBI
has also opened doors for investors to invest directly from next calendar year.
Therefore advisors need to make the investor realize their importance. The
above three things will help the IFAs to gain confidence among the investor and
also build a sustainable model where due to any changes in the industry the
investors will not flee away.
