Indore based Suresh Kakani has been distributing mutual funds for over 25 years. He got his first client who overheard a conversation while he was explaining the concept of mutual fund to one of his friends.
I would like to segregate my first client experience in two parts – pre and post Harshad Mehta scam. Selling mutual funds in pre-Harshad Mehta scam period was not challenging. Though awareness about MFs was low, assured return products helped us to offer mutual funds as a better option against traditional investments like FDs and NSC.
My first client in the pre-Harshad Mehta scam era was a businessman. I was into insurance that time. He wanted to invest Rs.60,000 in NSC to avail tax benefit. I explained to him about ELSS. He wasn’t fully convinced with the idea but he agreed to invest Rs.5,000 in ELSS. Surprisingly, in less than three years, he witnessed good appreciation in his ELSS portfolio. Now, he invests the all his money in ELSS for tax saving. He taught me that even a small wallet share of investor matters a lot for future growth.
However, the actual learning came after the Harshad Mehta scam episode. In 1993-94, I went to a doctor’s clinic to explain him the concept of mutual funds. Another doctor sitting next to him overheard the conversation. He was impressed with the concept of investing in stocks through professional fund managers. That day, he himself approached me and invested Rs. 3 lakh. I advised him to diversify his investments in debt and equity. Now his portfolio in mutual funds has grown to over Rs.3 crore.
I learnt that in order to succeed, one should not lose hope. Also, my first client has taught me that product knowledge and the way you present that product are the two most important aspects in distribution business. IFAs should always try to keep things simple.
My first client advised me to sell mutual funds
Mumbai based Kevin Michael of Money & More narrates how he acquired his first client who was an executive director in a pharmaceutical firm.
Initially, I was into insurance distribution only. A family friend who worked as an Executive Director at a pharmaceutical company had read about mutual funds and advised me to start selling mutual funds.
I started researching on mutual funds and found the product interesting. In 2006, I became a sub broker with ICICI Securities which helped me expand my product basket. The family friend invested Rs. 25,000 in an equity fund becoming my first client for mutual funds and continues to be my client.
My first client taught me that financial advisers should be open to other’s advice. His advice really helped me and my clients. Now, I have diversified product offerings to take care of all financial needs of my clients. Recently, I have started advising in real estate, tax, education and venture capital.
