B Jitu Dhabari believes in thoroughly researching prospects before visiting them because it improves his conversion sharply.
B Jitu Dhabari entered the financial sector at an early
age of 14 as an intern in a financial firm in Kolkata. During his college days,
he joined the same firm as a sales executive. This early start helped Jitu more
aware about various opportunities in the financial world. So, after completing
his graduation, he decided to be a part of the stock broking industry.
In 1993, Jitu did a one year course of stock broking in Calcutta Stock Exchange before he was offered a sub-broker’s job in the exchange. After working for few months as a sub-broker, he decided to open his own stock broking firm Balaji Wealth Care.
In a year’s time, his business was doing well and Jitu was keen to expand his financial service by adding more products. In 2001, a representative from Max New York Life Insurance approached him to empanel him. Jitu liked it what he heard and joined the insurance firm as its distributor. Meeting with early success in selling life insurance, he also added general insurance in his offering basket.
During 2003-2004, one of his friends suggested him to look at mutual fund distribution as it held tremendous opportunity. Jitu was introduced to Sujata Ramchandran of Franklin Templeton and so impressed was he with her briefing about the products and industry that he quickly got in to mutual funds.
“Sujata made me understand the potential of mutual funds. She also promised to go for joint calls to clients. This boosted my confidence,” said Jitu.
Jitu started the mutual fund business by promoting SIPs. He found that this method of investing had long term potential.
The turning point
In his initial days, Jitu was only able to acquire small ticket investors. It had been two years and he was not too satisfied with his AUM. He tried different advisory techniques but was unable to convince HNIs.
Then, one day his friend referred him to the owner of a big stock broking firm who only invested aggressively in shares and not mutual funds.
Around this time, Franklin Templeton launched a Franklin India Smaller Companies Fund, a diversified equity fund which invested in mid and small cap companies existing in India.
Jitu found out about this prospect’s investing habits through his close associates and then decided a strategy to approach him. One fine day, Jitu walked into his office without any appointment and this is how Jitu narrates the story:
The office has 5-6 computers with BSE and NSE terminals. The owner was seated inside a cubical cabin busy discussing some important matters. After finishing his meeting he asked me about his purpose of visiting him. I introduced myself as a representative of funds. On hearing this, the prospect looked disinterested.
Next I asked the prospect if he had heard about ITC, TATA, HUL shares. The prospect got irritated and said “What rubbish… of course. We trade regularly.”
Then I asked him, “Have you heard about B Jitu’s company, whose shares are currently delivering good returns?”
The prospect was surprised to hear this name and said,” Which is this company? I have never heard of it.”
Then I told him that this was just a fictitious name that I had made up to illustrate the point that there are a good number of mid and small companies who are also currently delivering good returns but most of us may be unaware of the fact. “We all try to chase the big and renowned companies. It is costly as well as difficult to procure data, track records and performances of these small and midsized companies. So Franklin India has launched a fund named – Franklin India Smaller Companies Fund which invests in such companies… Would you like to invest in this fund? This fund will give you the opportunity to invest in a number of booming SME companies.”
After this, the prospect asked me to wait outside his cabin.
Jitu recalls,” After thinking for a while, he called his assistant and me to his cabin. He started instructing his assistant on the mode and style of investment - number of units to be invested and which family member’s name etc. After completing his dictation, he handed over the list with a cheque of Rs 55 lakh for investing in this fund in the name of almost all his family members!”
I jumped with joy as it was the first biggest investment I had cracked.
No looking back
After this instance, Jitu makes it a point to do a detailed research about the investment pattern of any HNI client he plans to visit. This instance taught Jitu to develop a strategy through which he can convince the prospect and turn him into a client.
In future, besides distribution, Jitu also wants to offer complete financial plans to all his clients. He wants to develop an advisory business model rather than distribution. So, he is currently pursuing CFP.