G Pradeepkumar, CEO, Union MF set the tone for the future at Cafemutual Ideas Fest 2021, where he addressed the audiences on ‘How to grow business multifold by 2025’.
Our national hero Sachin Tendulkar is an inspiration for many. A poll before G Pradeepkumar’s session revealed that more than 50% of the participants believe that longevity is the distinguishing feature of Sachin’s career. While his batting style and the scores clocked are phenomenal, longevity has been a crucial factor. As it is often said in the game of cricket, ‘If you stay at the crease the runs will follow’, G Pradeepkumar believes that MFDs must strive to be the Sachin Tendulkar of the mutual fund industry.
Here is G Pradeepkumar’s important and practical advice from the session.
Stay for long
As per a study, most enterprises that fail, normally fail within the first three years of establishment. Surviving the nascent period is critical as it increases the chances of succeeding. Staying in business and combating the challenges is the key to success. Abolishment of entry load in 2009, declining TER (Total Expense Ratio), entry of direct plans, competition from low-cost platforms, etc have been some of the challenges faced by MFDs. Despite these, businesses can grow and flourish where MFDs can convince their clients about the value they bring in as an advisor.
Win your clients’ trust
As George Shultz, former US Secretary of State once said, “Trust is the coin of the realm. When trust was in the room, whatever room that was - the family room, the schoolroom, the locker room, the government room or the military room - good things happened.When trust was not in the room, good things did not happen. Everything else is details”.
Doing what is right for the clients is the fundamental principle to earning their trust. There may be certain circumstances where other financial products may be appropriate for some clients.
MFDs must not shy away from making such recommendations. They must fearlessly guide their clients in the right direction. Trust lays down the foundation for steady and new business.
Work in collaboration
It is important to know other financial solutions as well. A certain level of understanding will help in guiding the clients appropriately. MFDs can collaborate with advisors from other segments like insurance, NPS (national pension scheme), etc.Collaboration brings together various perspectives and expertise in the best interest of the client.
Acquire more knowledge
Clients respect their advisors for their knowledge. While gaining more knowledge, MFDs must also help their clients to improve their understanding. Client conversations must not be limited to mutual funds. They can revolve around cricket, banking sectors, global warming, or any other topic that is of interest to the client. It requires acquiring a certain level of knowledge at least in some areas. This helps in holding clients’ interest and garnering greater respect.
Allocate resources efficiently
There is limited time at disposal and the resources must be allocated competently. MFDs must leverage technology and focus their efforts on areas where they can make a bigger impact. For example, having a self-managed technology platform is useful to support investors to start a SIP. On the other hand, where the stakes are higher MFDs involvement and advice become crucial. It is important to prioritize and direct the efforts where it really matters. Further, as the future is digital the execution of the transactions must be digitalized.
Involve your clients more
Many clients usually exhibit the urge to get involved. MFDs can adopt a consultative approach for satisfying this urge. Involving the clients a little more gives them a sense of participation. A hybrid model like this helps in creating a happier group of customers.
The session was greatly insightful as it helped many MFDs develop a clear-sighted vision of their business. You can click here and listen to the words of the wise.
