Satya Bikash Bhuyan, an IFA from Guwahati, has managed to rope in 100 clients in 4 months. The low penetration of MFs in the north-east has turned out to be an advantage for him.
Why did you choose financial advisory services as
your profession?
I started my MF career in 1996 with Kothari Pioneer MF and was based out of Guwahati. My last job in the industry was with ICICI Prudential Mutual Fund where I was IFA Channel Head - East. Having worked in a particular industry for such a long time, I have fallen in love with it! During my career with Kothari and ICICI Prudential, I found that in the north-east, the penetration of MFs was very low. This is a big opportunity. That’s why I went ahead and launched my advisory service in mid-December last year.
What kind of challenges did you face in your initial days?
Though I consider low
industry penetration to be an advantage, even awareness about mutual funds is
very low in this part of the country.
People
have lost money investing in dubious companies and MLM (multi-level marketing) schemes, but investors still get lured by promises of very high returns from these
schemes. I have had to convince investors that investing in products that
guarantee such assured high returns can be very risky. I tell them to invest in
MFs if they want better returns over a period of time.
What is the basis of your product recommendations?
I recommend products based solely on client requirements. For instance, I suggest MIP and STP for salaried investors. I target those from the salaried class who are looking for long-term investments.
What helped you in this business?
My biggest advantage is that I had experience in the mutual fund industry and I headed a team of IFAs. Since I had gone on joint calls with IFAs, most of my clients were already familiar with my functioning. Besides that, I had always guided IFAs on any problem concerning MFs. And like I mentioned earlier, the low penetration of MFs in the north-east has been a big advantage for me as I can cater to a large clientele with minimal competition. I currently serve 100 clients.
What according to you is the recipe for success in the financial advisory business?
You should know your client and your industry thoroughly. The confidence I have developed over the years with different kinds of clients and my knowledge of this industry have definitely helped me. To succeed in the advisory business, you should always recommend products that suit the investor’s needs.
Can you explain the marketing approach that you have adopted to expand your business?
Earlier, I started by approaching some clients I knew from my corporate days. As they were happy with my service, they gave me a lot of references. I have a mix of HNI, retail and institutional clients. I focus a lot on asset allocation.
Are you charging a fee from your clients?
No, not yet, and I haven’t thought of doing so. Right now, I want to concentrate on quality of service.
What are your plans?
I am looking at building up assets under advisory of more than Rs 10 crore by approaching more HNIs and retail clients.