Unlike most IFAs, Raman, a banker turned financial advisor, has invested his own money in his business.
Raman
Agarwal started his career as an accountant with an audit firm in Lucknow and
later joined a nationalised bank where he spent more than 18 years of his
career.
At 39, Raman was offered a voluntary retirement solution (VRS) with three years’ advance salary by the bank. He had a tough decision to make and finally Raman decided to take up VRS. Though, he had no clear idea of what to do, he wanted to achieve something big in three years.
One of his friends sought his advice on his personal investments. Raman sensed an opportunity in offering advice to people on their personal finances as he had the necessary background in accountancy and banking. In 2000, he started distributing HDFC Ltd’s fixed deposits and took up mutual fund distribution next year.
Unlike other IFAs who build an infrastructure only once they reach a certain size in business, Raman has invested his own money in his business from the beginning. He had bought a small shop near his home with the help of a bank loan but soon realised that he required a bigger office to cater to his growing clientele. He sold this shop and bought three new shops later, again with a loan. Today he owns a 2,000 sq. ft. office in the heart of Lucknow. His son Rahul, a computer science engineering graduate also joined his office in 2008.
Clientele
With assets under advisory of Rs 40 crore (80% in equity and rest in debt) in mutual funds, his clientele includes a mix of HNIs, trusts, companies and NRIs. Raman holds approximately 1% market share in AUM in mutual funds in Lucknow.
He caters to nearly 500 clients currently, all of whom have come through referrals. Raman also caters to companies whom he advises on marine insurance.
Business practise
Raman
has believed in constantly updating himself to meet the evolving needs of his
clients and the industry. Now, he has a certified financial planner (CFP)
certificate under his belt. Raman believes that honesty, customer service and
technology have been the three pillars of his business. Raman also firmly
believes in the power to technology to grow his business. He has tied up with
MF portal called Next Advisors to offer online investments to his clients.
Despite the headwinds facing the distribution business, Raman is determined to scale up his business to the next level. Raman plans to soon carve out his business in two divisions — distribution and financial planning. His son, Rahul will oversee distribution while Raman will focus on spreading the concept of financial planning. He wants to focus on succession planning where he sees a huge gap.