Leaving their cushy jobs, many fund professionals have turned financial advisors.
The advisory space is attracting a new breed of talent. Attracted by the opportunities in advisory business, sales and marketing professionals of asset management companies are leaving their 9 to 5 jobs to don the hat of advisors.
Vinayak Sapre who heading sales for western region at AIG Investments (now PineBridge) started his practice three years back. “This market has great potential but many people have not realized yet,” says Vinayak.
Vinayak believes in taking life easy. Vinayak works four days a week and spends a lot of time with his kids. “The reason I started my advisory practice is that we can set our own pace. You may wish to grow fast or grow slowly,” adds Vinayak. He is of the view that since AMC professionals are familiar with the processes of a corporate, they try to implement the same culture in their practice which gives them an edge over others. To share his experience with advisors, Vinayak has also started coaching advisors called Insights.
Deepali Sen who worked with Axis Mutual Fund ventured in advisory business in January 2013. Deepali wanted to connect with investors which gave birth to the idea of floating her own advisory business. “My interactions with clients was less. Thus, I wanted to get closer to investors. I also observed that people were being misguided in the industry by brokers. I wanted to fill this void,” says Deepali.
Deepali entered the mutual fund industry in 2000 by joining Kothari Pioneer Mutual Fund (now Franklin Templeton) where she spent nearly eight years. Later, she joined ICICI Prudential Mutual Fund and was a part of the founding team at Axis Mutual Fund.
Debasish Chatterjee, who was Head of Institutional Sales at Baroda Pioneer left his job last year to start his project financing and wealth advisory practice. “I have partnered with a CA firm. We have started project financing and we have mobilized Rs. 147 crore for various projects. We have been also able to raise money for real estate projects. We have mobilized around Rs. 47 crore in FMPs. Now, we are focusing on building our equity book,” says Debasish.
Most AMC professionals who ventured in advisory have been able to make their mark in the industry. What sets apart these breed of advisors is the focus and industry expertise which bring to the table. “People who have worked for AMCs have certain advantages vis-à-vis others because they have industry experience and know the dynamics of the industry,” observes Gajendra Kothari of Etica Wealth Management. Gajendra was heading UTI’s business development department in UK and European markets. In a span of about four years, Gajendra along with his brother has built a mutual fund book of Rs. 60 crore.
He says that there is immense potential for newcomers like him. “It is the best business to be in and the industry has a very bright future. There is enough space out there for everybody. Not much capital is required; however intellectual capital is essential to succeed in the long run. In the startup phase, things might look a little dull and difficult. But if you hang on with honesty and integrity, in the long run, things will turn out to be beyond expectations,” adds Gajendra.
Amit Bivalkar who worked as Regional Head – Sales,
West & East India with AIG Investments started his advisory business and today
boasts of assets under management of Rs. 750 crore. Amit has also worked for Fidelity
and DSP Merrill Lynch (now DSP BlackRock)."After the market crash in 2008 not many advisors were willing talking to clients. Also many IFAs shut their shops. I thought it would be a good time to enter the advisory space. I think more professionals from the industry will take up this profession because there has been a consolidation in the industry and there aren't enough jobs in asset management companies," says Amit.
Similarly, Rajan Wadhawan who worked with Franklin Templeton’s sales team quit his to start KW Wealth Advisors. Rajan entered the industry at the time when the industry was grappling with the sudden ban on entry loads.
Tanvir Alam quit his job at IDFC Mutual Fund to help channelize the savings of the growing middle class in financial instruments. “Generally advisors tend to chase HNIs but we want to cater to the working population which has been untapped. Catering to this segment has a long gestation period,” says Tanvir.
Like any other business advisory practice comes with its own challenges. One has to build a sizeable AUM to sustain his/her practice. “If you are starting alone then it poses a challenge for the first three to five years. In my case, my brothers Nikhil and Virendra had quit their jobs and started the business. I joined them later. In Gujarati there is saying that your business is successful if you manage to sustain it for first 1000 days,” adds Gajendra.
With
the low entry barrier and increased commission structures, experts believe that
the advisory space is likely to attract more talent going ahead.
