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You have been heading the sales team in asset management companies for over a decade, which involves interacting with distributors on a regular basis. According to you, what are the three key qualities required to succeed as an MFD?
In my journey across different roles and locations, I have interacted with a host of extremely successful advisors who apart from some basic qualities like passion for the profession, deep expertise in the subject, a segmented approach and clear strategies, work relentlessly to develop a few important qualities for success. Based on my analysis, here are top three key qualities of successful MFDs:
- Being conscious of trust creation. Trust according to experts, available research is empathy, reliability, integrity, competency and credibility
- Institutionalising processes to achieve scalability. MFDs may look at investing in their business processes and systems
- Accepting that the primary job is risk management and not chasing absolute performance/returns
I believe that if one develops these qualities and respond positively to regulatory changes as an opportunity to help gain trust of their clients then the sky is the limit for business growth.
MFDs have always been central to PGIM's distribution plans. How do you go about increasing your engagement with MFDs?
We don’t assume that we know the distribution business better than the MFDs themselves. However, we do have a few very interesting modules that we have been able to put together, which we believe can help develop better business practices:
- The 10 lessons from a successful US advisor
- Z.K.I.T bag - planning business on Army's mission planning framework
- 5 ka Dum
All of these modules are aimed to grow MFDs’ practice effectively whether they be about business planning framework or sharing best practices of other advisors globally. Apart from these, we have engagements around our investment process and products. We firmly believe that the process should be evidence based and hence, focus on the outcomes/differentiations can help MFD achieve the required outcomes for their clients.
We also have tools that we have showcased and introduced to our partners like:
- Syntoniq, a risk assessment tool that focuses on behavior at its heart
- IFA Now, a one-stop solution for business workflows that encourages technology adoption
- Retirement Readiness Certification (RRC) for better retirement conversations with clients
- The Ignite program of Women Financial Advisers Network (WFAN) to encourage woman financial advisor entrepreneurs
PGIM has a very interesting offering for MFDs and RIAs — Syntoniq's client-behaviour based risk assessment tool. What is the rationale for offering this tool to MFDs?
Syntoniq is an exceptionally differentiated and powerful behavior-based risk assessment tool. It empowers to effectively bridge the gap between intentions and outcomes. It empowers to build empathy and clearly can work as a very effective client retention tool.
Can you tell us about this risk assessment tool and why do you think MFDs/RIAs should use this?
As mentioned earlier, Syntoniq’s risk assessment tool not only helps bridge the gap between intentions and outcomes but also helps build empathy which in turn helps with client retention. Beyond this, I firmly believe that suitability of the product in the distribution business is a very key aspect and can be achieved through the use of this tool.
While we have so far only worked with RIAs who find this tool effective on every count, I also firmly believe that usage of such a tool can help scale business very effectively both on distribution and advisory side. Hence, we do plan to introduce this to MFD's soon.
PGIM India MF has another initiative for MFDs titled 'Retirement Readiness Certification'. Why do you think MFDs need a retirement certificate to become a retirement coach?
I believe that trust and investment in self are critical aspects to be able to run a scalable and successful MFD business. Retirement Readiness Certification is a course dealing with a subject as critical as retirement and having a certification for the same does lend authenticity and helps build trust.
India has over 74 million people above the age of 65 years. With increasing life expectancy retirement life can stretch to 25+ years. Retirement oriented business models can be a high value business opportunity.
Tell us about this course and why do you think MFDs/RIAs should appear for this course?
The Retirement Readiness Certification aims to help MFDs by enhancing the quality of interactions they can have with their clients and making the right recommendations relevant to the distribution phase of client's life. The Retirement Readiness Certification (RRC) brought to you by PGIM India Mutual Fund & CIEL is a relevant program that has the power to qualitatively alter retirement related conversations by bringing in retirement concepts in a very practical format. Retirement is the only goal that cannot be funded through a loan. Retirement assets are likely to be invested for a long time. MFDs’ AUMs across other client goals can be redeemed but retirement assets remain intact. Hence, MFD should build a retirement-oriented business for long term AUM growth.
What should distributors expect from this course? How much time would it take to complete the certification?
This Retirement Readiness Certification course is suitable for those who want to prepare themselves to have meaningful retirement conversations with clients and plan to scale up to a higher valuation business model with retirement-oriented assets. This course prepares MFDs to better understand retirement income needs & objectives of clients, integrate understanding of products and strategy and recommend appropriate tax-efficient retirement income options. It is a 2-month online certification course. The certificate is obtained on completion of the study material and appearing for the proctored online exam conducted by NSE IT.
What are the deliverables and course material that distributors get for Retirement Readiness Certification?
The Retirement Readiness Certification course content covers the following:
- The Retirement Mindset: the need and urgency for retirement solutions;
- Retirement Principles and Products: An introduction to retirement solutions, both traditional and modern;
- Execution of Retirement Solutions: Well-rounded retirement solutions encompassing the entire spectrum of products including the distribution phase;
- Financial Dashboard: Covers the Retirement Math and relevant calculators;
- Converting Corpus into Income: Provides insights into designing optimal retirement income streams.
The course material consists of a comprehensive e-workbook, concept building through online self-study modules with interactivities, online videos, infographics, glossary terms and articles, practical and relevant case studies, quizzes and tests to monitor progress, online exam and certification. For more details on Retirement Readiness Certification visit pgimindiamf.com/retirement-readiness-certification.
