Salim Momin believes that advice should not be given free and caters only to clients who pay him a fee.
Salim
Momin, a BA - Economics from Gujarat University, started his career with a
private bank in the recovery department in 1998.He
later worked with Development Credit Bank for seven years.
Bit by the entrepreneurial bug, Salim left his job and started Intergrowth Investment Services in January, 2006. From the very beginning, Salim prepared himself to be an advisor as he was convinced that SEBI would push for an advisory model in the years to come. Thus, merely distributing products was never in his mind. He got a CFP certification in January, 2010 which helped him understand the nuances of financial planning. Salim started with mutual funds and slowly got into life and general insurance, company fixed deposits and NCDs as he wanted to offer his clients the entire suite of products to meet their financial goals.
His initial client-base was built through immediate family friends, colleagues, relatives and neighbors. Most of his clients have come through referrals.
Salim today caters to 300 odd clients, 15 of which have enrolled for financial planning. He hopes to sign up more clients for comprehensive financial plans soon.
No free lunches
Post the entry load ban, Salim explained to his clients how the regulation affected his business. Some clients agreed, while others didn’t. Today, he works only for the clients that pay him a fee. Salim charges 2-2.25% for SIPs and lump sum investments from his clients. However, Salim does agree that his client-base has shrunk after he started charging a fee, but he has no regrets about it. “There are no free lunches and no free advice,” says Salim.
Honest advice
Salim is very passionate about educating his clients how insurance should not be considered as investments. Many of his clients have come back to him for advice after being sold ULIPs by banks. He often uses excel to compare the potential returns from various asset classes.
Road ahead
It has been a slow start for Salim in building his mutual fund AUM since his start in 2006. Currently, he manages Rs. 8 crore in mutual funds.He is keen on adopting new methods to expand his business.
From here on, Salim has set a modest target of increasing his AUM to Rs. 25 crore by 2017 in mutual funds alone. He is in the process of developing a website and has tied up with the online platform of Next Advisors, so that his clients can invest seamlessly. He also wants to adopt social media to increase his brand visibility among his clients.
Salim is confident about his business prospects and financial planning profession despite the regulatory uncertainty revolving around distributors. He is here for a long haul.