What inspired you to get into financial advisory?
In my early 20s when I was an aspiring Chartered Accountant, my family got into deep financial trouble. Due to some unfortunate turn of events, we got embroiled in a big financial mess. From good lively days to really troublesome days, I saw a u-turn in my family’s life. This left a long lasting impact on me about how money can change everything. It changed my perception and gave me an insight that money which can give you immense happiness can even leave you in deep despair if you do not manage it well.
What is your background? What were you doing before venturing into financial advisory?
I am Chartered Accountant and a Certified Financial Planner. After I cleared my CA, I joined Security Investments where I worked for nearly two years. During these two years, I learnt some basic marketing techniques. I left the organization in early 2004 to start SLA Financial Solutions.
How were the initial days of your business? What kind of challenges did you face? How did you overcome them?
Honestly, when I started my entrepreneurial journey way back in 2004, I really did not know much about financial advisory. All I knew was that there was a need for people to plan their finances ahead of time and the best way to do so was to be regular and disciplined. And the best way to do so was SIP which even I did when I started working at Securities Investment. Since I started at the beginning of a bull market, there were not many challenges. But the real challenge was the prolonged bear phase of 2008-2013 which taught me some lessons on what is actually required to be a good financial advisor.
How did you acquire clients?
My initial set of clients were family, friends and acquaintances. Later on, clients came through referrals. Though we did have not any formal referral seeking model our consistent and uncomplicated advice helped us expand. Right from 2005, we started holding investor awareness programs which further strengthened our client base. Recently, we have started Corporate Connect – a Financial Education in Workplace initiative which helped us to reach out to masses.
How much do you manage in mutual funds?
At the end of March 15, SLA Financial Solution has assets under advisory of close to Rs. 290 crore. A major component of the AUM comprises disciplined savings (SIP).
What were your biggest learning as a financial advisor?
Financial Advisory is not about managing investments, it’s about managing client behavior. The biggest hindrance to a client’s financial success can be the client himself! We have great fact sheet returns (scheme return) but no folio returns (investor return). Had we been able to showcase folio returns, we would be the most loved industry. Another biggest learning is that it’s best to focus on what you can control and not on what you cannot. Markets direction, best sector, best funds, etc. are not in our control and hence we do not talk about these things. Remember the client will believe only what you believe. It’s your own conviction that matters the most.
Please share a memorable moment in your financial advisory journey
There are many. The best moments are when clients (who invest through SIPs) tell us that “Oh god, when did I invest so much amount with you… I can’t believe I have saved so much… hope there is no mistake in your report…”
Satisfaction comes when you have been able to do your job reasonably well, if not perfectly. Also, my investors made good money in 2014 as I had convinced them to stay put during the bear phase of 2008-2013 for which clients appreciated me. These feelings are hard to describe in words.
What is your key to success?
Simplicity and consistency are key virtues of SLA Financial Solution. We try to seek simplicity in whatever we do. Another reason for our success is our consistent and passionate team which looks forward to come to office on Monday.