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At Cafemutual Ideas Fest 2025, Kailash Kulkarni, CEO of HSBC Mutual Fund, shared simple yet effective tips on acquiring new clients through a powerful referral strategy.
Kailash believes that while many MFDs ask clients for referrals, most lack a systematic approach—something essential for building a sustainable and effective referral system.
He emphasized that the purely transactional nature of many MFD-client relationships is a major reason why MFDs struggle to generate referrals.
Benefits of having referrals:
- The retention rate of referred clients is 37% higher than that of clients acquired directly
- Clients who come through referrals bring in 30% to 50% more new clients
- 92% of clients trust recommendations from family or friends
- MFDs with a strong referral system generate 62% of their new business through referrals alone
- Two-thirds of new business in the mutual fund industry comes from referrals
Building a strong referral system:
- Move beyond transactional relationships. Build strong interpersonal connections with clients to ensure long-term retention
- To systematize the process, create a referral card and encourage clients to fill it out
- Demonstrate your expertise to existing clients to become more referable
- Learn to say ‘No’ when necessary. For instance, if a client wants to invest in a high-risk product that doesn’t align with their life situation or risk profile, guide them accordingly
- Maintain transparency at all times by disclosing any conflicts of interest
- Help clients leverage your existing network to grow in their professions or careers—connect them with each other when appropriate
- Educate clients about all the risks involved in their investment portfolio
- Understand each client’s behavior, habits, and thought process
You can watch the complete video by clicking here.
