Listen to this article
The recent conflict between India and Pakistan sent shockwaves through the border regions of Amritsar, Bhuj, Chandigarh, and Jalandhar, among others.
With rising tensions, many investors grew anxious about their investments, fearing market instability and potential disruptions. To understand how distributors in these areas managed their clients during such testing times, Cafemutual spoke to four MFDs who stood strong amidst the chaos, ensuring their clients remained calm and confident in their investments.
Bhuj-based MFD, Ashish Shah of Shah Investments, manages a client base of 700 investors, mostly residing in Bhuj itself. With 38 years of experience, Shah used his expertise to keep his clients calm during the crisis. “The entire tehsil was in lockdown. We often had to rush back home when sirens indicated drone presence. Markets were also declining. So, we reached out to all our clients—not just to assure them about their investments but also to check on their safety,” he said.
He emphasized that while he advised investors not to redeem their funds, he also assured them of quick liquidity if needed, saying, “If they or their families require money, it will be in their bank accounts within four days.”
To strengthen their confidence, Shah shared historical market data with clients. He said, “Investors need to understand that investment should always be viewed with at least a 5-year horizon.”
Chandigarh MFD, Rajeev Kathuria told Cafemutual that he received over 30 client calls daily following the Operation Sindoor, up until the ceasefire announcement. "Many investors wanted to stop their SIPs, fearing that if the war prolonged, they might struggle to continue their contributions. However, I educated my clients, assuring them that they need not worry about their investments and SIPs. Pakistan cannot afford to engage in a long-term conflict with India. Although China supports Pakistan, India’s strength surpasses both nations combined," Kathuria stated.
Jalandhar MFD, Maninder Singh Chadha, shared that he received a flurry of queries from investors requesting SIP stoppages and redemptions. "With ATMs running out of cash, many people panicked and expressed their willingness to redeem money from mutual funds to relocate to safer cities. Also, many investors expressed their desire to discontinue their SIPs until the country returned to normalcy,“ Chadha said.
To address these concerns, Maninder prepared a chronology chart showcasing how equity markets historically rebounded after major events like wars, natural disasters and black swan incidents. He also developed an FAQ document for his clients to help his team efficiently manage the surge in queries.
Another crucial role of MFDs during such tense situations, according to Chadha, is to keep investors motivated. "The first step was to calm their nerves. Many residents of Jalandhar, which has several high-rise buildings, were alarmed by drone attacks. The constant news coverage and social media reels only heightened their anxiety," he explained.
He advised clients to limit their exposure to news and social media during these stressful times and instead focus on spending quality time with family—something they often miss out on. "I recommended they stay positive, enjoy their favorite food and watch movies or web series," he added.
Chadha emphasized that, no matter the circumstances, MFDs must remain motivated and optimistic. "You need to speak with confidence and spread positivity during challenging situations," he concluded.
Jammu MFD, Surbhi Kumari Bharti of BNBFS Associates, operates out of Arnia village, just three kilometers from the India-Pakistan border.
She shared that the ongoing conflict has led to increased client redemptions. Bharti also mentioned that due to the tense situation, she has to return home early every day before the shelling begins, limiting her ability to meet and reassure clients in person.
Despite these challenges, Surbhi remains steadfastly optimistic. “As MFDs, we must stay positive. No matter what happens, our attitude should reflect confidence for the clients,” she said. Bharti and her team maintained continuous communication with clients, assuring them not to fear for their investments and motivating them to remain strong during this difficult period.
Samba (Kathua) MFD Ravi Kumar, who lives 2 km from the Indo-Pakistan border, told Cafemutual that he did not receive calls from 90% of his total investors. While Ravi educated them to stay invested for the long term regardless of any events, he believes that people have confidence in the leadership of Prime Minister Narendra Modi and the strength of the Indian Army. "We saw the Indian Army destroying numerous Pakistani drones. Only two or three drones fell in our town, and even those were neutralized by our Army," he said.
The ones who called Ravi were new investors, and he shared anecdotes of past wars not affecting markets in the long run. To encourage his clients, Ravi advised them not to fall prey to misinformation and to use bunkers if necessary.
To explore the ever-evolving world of Passives, join us on May 23 at Cafemutual Passives Conference at Taj Santacruz, Mumbai.
To know more about Cafemutual Passives Conference 2025, click here!
Team Cafemutual salutes these MFDs for standing by their clients during times of adversity. Jai Hind!
