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Dr V Anantha Nageswaran, Chief Economic Advisor, Government of India urged advisors to focus on cutting client losses. He spoke at the Association of Registered Investment Advisers (ARIA) conference held today in Mumbai.
Dr Nageswaran said that advisers may have a temptation to create more fees or commissions, but they should focus on maintaining long term relationships. He said, “There is a temptation to generate trails and commissions through constant advise but passivity and inactivity are the important ingredients for successful long-term investment and successful long term investment advisory. So, it is important to recognize when to cut our clients’ losses. The sooner we accept that certain things might not have gone well, will be the best ingredient to formulate a long-term relationship between the investment advisor and the client.”
The CEA said that advisors should prefer delayed gratification over short term gratification.
Nageswaran also emphasized the growth potential of India and talked about the ample opportunities for investment.
