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In these uncertain times, which three business skills can help MFDs/RIAs accelerate their business growth?
‘Control the controllable’ is always my mantra. Global or local events and their impact on market is definitely outside the “Control” of any investor or MFD/RIA. However, MFDs/RIAs can control these three things to accelerate growth:
Asset allocation
- If an MFD/RIA has got the asset allocation right for his clients, market movements cannot harm his business
Staying focussed on goals
- MFDs should find out why their clients are investing. They should let their clients know the benefits of staying put till the goal is achieved and remaining invested for long term
Managing emotions
- MFDs should not let their clients be influenced by market noises and news
- They should protect their clients from taking a decision due to behavioural biases
The MF industry has flagged off the Rs. 100 lakh crore march. Which three business skills can help MFDs/RIAs to participate in this Rs. 100 lakh crore march?
Three things that MFDs/RIAs should keep in mind to become future ready:
Use of technology
Everything that a machine can do, you must automate. Transaction processing, periodic portfolio reporting, written communication are all processes that must be system executed.
Focus on analytics
As business and number of clients have grown for MFD/RIA, an area that they have least invested in is in research. Existing client base is gold in a mine, one has to invest in smart tech that allows you to extract that gold in the form of opportunities to cross and upsell not just mutual fund schemes but also alternatives like AIFs, PMS, NPS, term / general insurance etc.
Customer engagement
MFDs/RIAs should spend most of their time in meeting with clients physically to manage their emotions and get them stay focussed on their goals. However, many MFDs spend most of the time in managing their office work.
In your view, which are the untapped investor segments that MFDs/RIAs should focus on? Also, could you share some quick tips on how they can reach out to them and make them their clients?
I don’t think there are untapped investor segments, just untapped investors. While one can go on about the youth and newly joined workforce each year, let me elucidate on an alternative opportunity. India is a country of small enterprises (aka mom/pop shops). A simple liquid fund to park money over the weekend (instead of money lying idle in the bank account) can be a very attractive proposition. MFDs can approach them with a solution for paying the salaries of a few of their employees just from efficient cash management. Technology and facilities offered by AMCs can make this a very easily executable idea.
