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At the Cafemutual Ideas Fest 2025, Venkat N Chalasani, Chief Executive of AMFI has given some simple yet effective tips on how MFDs can build trust and reputation with clients.
Drawing inspiration from SBI, Chalasani said that trust is essential for any lasting client relationship. "The reason for the existence of this institution for over 215 years is predominantly on account of two things — one change and second, trust," he said.
Here are the five tips to build trust and reputation with clients:
Keep yourself updated
Chalasani emphasized the need for MFDs to stay updated and informed about financial markets and products citing the power of knowledge. He advised MFDs to spend time every day reading about the latest developments to strengthen client conversations. He said, "If you want to interact with your customers, you need to talk with the power of knowledge.”
Be a doctor for your investors
The AMFI Chief recommended MFDs to understand financial goals and aspirations of investors before recommending any mutual fund.
Giving an example of doctors, he said, "Did you ever see a doctor looking at a patient and straight away prescribing medicines? MFDs should listen to clients' goals to know if they want to buy a house, save for education or retirement. Our approach should be that I need to know what my investor’s requirements are."
Stay in constant touch with investors especially during volatility
Chalasani said MFD should be staying in regular contact with clients, especially during market downturns. He recalled the 2008 financial crisis when he directed his team to remain in touch with clients facing market losses. "Not just during good times but even when markets are down, and investors are worried, that is when you have to be with them," he said.
MFDs can give examples of India’s growth numbers estimated by Goldman Sachs and the International Monetary Fund (IMF) and tell clients that volatility is part of the growth journey, he said.
Don’t just talk about returns, make them aware of risks involved in mutual funds
Chalasani said MFDs should have transparency and explain to investors about the risks involved in any product they suggest. "If someone is investing and if I go and inform them about the risk that is there in the product, trust me, he is going to have more trust in you," he said.
He warned against focusing only on returns; instead, MFDs should give clients a comprehensive view of the risks and benefits involved in mutual funds.
Give importance to your integrity
Chalasani also explained the importance of integrity in client relationships. He shared a lesson from his mother: "When you lose money, you lose nothing; when you lose health, you lose something; but when you lose character, you lose everything."
He said that MFDs must recommend products that suit clients' goals and not those that offer higher commissions.
You can watch the complete session below:
