‘MFD business could grow 7-8 times over the next ten years’

Rohit Sarin, Co-founder of Client Associates, explained in a recent webinar how MFDs can attract and retain HNI clients. He also shared his insights on setting up a family office like set up for wealthy clients.

Sarin believes that India is entering a golden decade. In this period, businesses, including MFDs, could grow 7 to 8 times if they focus on building trust and delivering value.

The wealth manager highlighted that even senior citizens can sometimes take higher risks due to their experience and accumulated savings, while many younger investors may be more conservative.

Sarin also said that wealth creators are true nationalists if they help grow India’s economy. However, wealth lying in unproductive assets like idle real estate loses value over time. HNIs who are not growing their wealth are, in fact, "wealth eroders”.

Here are some other key highlights from the webinar.

·         94% of Indian investments are still outside mutual funds, showing a huge opportunity for MFDs to educate and bring in new investors

·         In a family office, it is not only about investments but also about handling day-to-day matters, such as property taxes and post office deposits. Intermediaries who want to enter the family office space must be ready to take care of all aspects of a client's financial life.

·         MFDs should focus on long-term trust rather than chasing quick profits. Just like a good doctor is focused on treating patients, MFDs should focus on their clients’ financial well-being, not on higher fees or commission

·         Health insurance is a must, especially when travelling abroad. Without insurance, even basic healthcare can be difficult to access in other countries

·         MFDs can convert clients from direct plans to regular plans by sharing real data, such as how markets bounced back after COVID-19, to show why staying invested is better than exiting during market falls.

·         Like doctors using science to treat patients, MFDs need to deliver real value, like higher returns than market averages. But beyond that, it is also about building a relationship and understanding the client’s goals and life situations