The last edition of ‘Principal Business Champions – Winning Ideas’, a joint initiative between Principal Mutual Fund and Cafemutual, received overwhelming response from the IFA community.
Advisors across the country wrote to us sharing their proven strategies to reactivate dormant clients.
Here are the entries that received the highest votes.
Winner on Website: Nitesh Buddhadev, NIMIT Wealth Management, Mumbai
I draw analogies from trending topics to encourage inactive clients to invest.
I share messages on WhatsApp with my inactive clients to encourage them. Recently, I shared an infograhic on Game of Thrones to highlight that if they had invested in equity funds through SIPs from the first episode of Game of Thrones, they would have built their own kingdom (house) by now. The creative captured the opportunity cost of delaying investment.
Another activity I do for inactive clients is to hold an annual event. During this event, I motivate them to continue investing in mutual funds through SIPs to achieve their financial goals.
Winner on Facebook: Sudhansu Sekhar Mohapatra, Subham Capital, Bhubaneswar
Meeting them personally helped me regain their confidence in mutual funds.
Though we were connecting with inactive clients over the last few months, we have speeded things up after SEBI issued a circular asking AMCs to pay withheld commission of distributors within three months subject to fulfilment of requirement such as completion of pending KYC.
Initially, we were only making phone calls to our inactive clients. But most of them had changed their numbers. Hence, we started knocking on their doors to inform them about their investments.
In this process, I met a person who had invested around Rs.3,000 in a gold fund nearly 8 years ago. I helped him complete his KYC and encouraged him to restart investing in mutual funds. Recently, he invested Rs.10 lakh lumpsum and started a SIP of Rs.50,000. His wife and son also started SIPs with me and referred me to some of their friends.
Winner on Twitter: Brajesh Singh, RPL Financial Service, Gwalior
My social media posts helped me connect with inactive clients.
I am very active on Facebook and WhatsApp. I regularly post articles and creatives on these platforms. I share with them how investors can achieve their financial goals such as buying a house or car by investing in mutual funds through SIPs. I use simple and jargon free language to educate my clients. At times, I use metaphors to communicate my thoughts.
Seeing these posts, some of my inactive clients approached me to understand how they can achieve their financial goals. I encourage them to not delay further and restart investing in mutual funds through SIPs.
