Listen to this article
Over the last couple of years, mutual funds have become a household name. As a result, you can find plenty of content about mutual funds across media. Such information overload impacts moods and emotions of clients.
In this context, Cafemutual hosted Navneet Munot, MD & CEO, HDFC MF who shared with us a guide to managing clients’ moods and emotions. Here are some key takeaways from Navneet’s session:
Point 1 - Understand yourself first
Understand your mood and emotion first before approaching investors. If you know that how you react to a particular situation, you can evaluate your clients’ emotion better.
Also, you should not let your clients know what’s going on your head. Even if you have a bad day, you should go with a smile on your face whenever you meet a client.
Point 2 - Invest in investor education
In the current digital era, the ability to react (buy something in haste) has gone up as against the ability to respond (buy after evaluating a product). MFDs can deal with this issue by investing in investor education. Markets will continue to be volatile and investors will have changing moods and emotions. Educate them about staying invested patiently for the longer term to create wealth.
Point 3 - Remind investors repeatedly
While you made your clients aware of the benefits of long-term investments several times, they will approach you to redeem their investments after witnessing volatility and hearing market noises. Keep repeating the message of long term investing and motivate them to stay invested.
Point 4 - Use the power of framing
Instead of simply saying start investing for retirement planning, tell your clients to invest for leading a happy retired life. How you frame your pitch can influence investment decision of clients. Be creative and intelligent and use the power of framing to talk to clients.
Point 5 - Focus on solutions
Focus on offering solutions and not products. Take an example of mobile phone makers v/s Apple. iPhone does not focus on mobile specifications like RAM, processor and battery; instead, it highlights features that really matter like camera quality and privacy to people.
