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From modest SIP amount of Rs.1800 to a humongous corpus of Rs.8 crore in 20 years. The figure doesn’t look possible, right. But Mumbai MFD Paresh Shah and Charmi Shah made it happen for one of their clients.
This happened when a salaried individual approached Paresh Bhai to invest his money for long term wealth creation. The client could just afford SIP of Rs.1800 then. He also invested Rs.10,000 through lumpsum. Over time, this client gained confidence in mutual funds and Paresh Bhai’s service. He subsequently increased his contribution and has now created a corpus of close to Rs. 8 crore.
Talking about how the duo made this possible, Paresh said that the duo never talks about products and time horizon with his clients. The duo simply tells clients to trust them with their money.
Paresh told Cafemutual that this client wanted to create a solid corpus for future. The MFD asked the client to set aside 30% of his net income for retirement. Paresh said “I told him that he has to invest 30% of his income for retirement which was 20 years from then. I assured him that he will be able to help generate a good regular income in future.”
The client retired in June 2023 after 20 years. His last withdrawn salary was Rs.4.80 lakh per month. Thanks to the father daughter duo, he now withdraws Rs.5 lakh per month. This corpus will last till the life of both – client and his spouse. Also, the client will be able to leave some legacy for his children.
When asked how he dealt with untimely redemptions, Paresh said, “After 10 years, he came to redeem some money. When I enquired about the reason, I came to know that one of his friends recommended him that he should book profits. While I discouraged him to redeem money, he kept on requesting me. As a last resort, I gave him my own money and told him that I will not let him exit midway. The client repaid this money after a month.”
Recognising the duo’s efforts in creating a big difference in clients’ lives, Axis MF and Cafemutual came together to celebrate the extraordinary work and accomplishments of MFDs through Sanjeevani MFD Awards 2023 at Cafemutual Ideas Fest. The awards felicitated eight inspiring MFDs who are ‘Sanjeevani’ for their clients and have become an indispensable part of their lives.
