Kunal Doshi was relatively new to this city but he fruitfully built an advisory business using the power of email
A Mumbai-based independent financial advisor (IFA) has demonstrated that the ubiquitous email has the power to build the foundation of a financial advisory business.
Kunal Doshi, an IFA based in Mumbai’s western suburb of Borivali, used the force of email marketing to entrench himself as an IFA in a short period of time. He worked hard for the first six months to build a robust financial advisory business.
An MBA in finance, Doshi was working with Birla Sun Life Mutual Fund when he decided to quit and start his own advisory business. That was at the peak of the global recession triggered by the financial crisis in the US.
He was exposed to the world of investments while at Birla Sun Life for about two years. He knew the practical knowledge he gained while at the mutual fund house would stand him in good stead while building his own investment advisory business.
He started building his own advisory working from his residence. He was new to this metropolis having shifted here from his home town in Gujarat. The first thing he did was to buy a database of 10,000 mobile phone numbers and email ids of affluent prospects. Of the first 1,000 prospective clients he had sent emails to, only 10 responded. Of these 10, just three got converted into his clients.
Doshi had his first client after six months of hard work. The client conversion ratio was very low but he felt he had a strong beginning. Doshi had set a floor for the minimum amount of investments he would want to advice for every client.
In the one year since he got his first client, Doshi has built assets under advisory of Rs 15 crore from 70-80 clients.
He advises clients based on their financial goals. He says he would never advice investment in a product if he himself did not believe in it.
He now has a small office of his own, which is across the road from his residence. He does not want to restrict himself to certain investment products. His aim is to be a one-stop-shop for all investment needs of his clients spread across Mumbai.
Doshi also advises his clients to invest in fixed maturity plans and other debt products and constantly seeks information on market yields and interest rates. He looks for stable performance when he chooses a mutual fund scheme for recommending to his clients.
He is now also creating a corporate desk. He sees a big opportunity in serving the investment needs of companies. He has already enlisted a few companies as his clients. The amounts invested by companies are large and hence the revenue flow from corporate advisory is substantial despite lower margins.
The rise of Doshi as a successful IFA is a case study. It is also a reminder of the power of email marketing.