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Seven colleagues-cum-friends recently demonstrated the power of collaboration and partnership that was instrumental in setting up a Rs 1,720 crore distribution business.
This is the story of Bharat Raj Sikri, Mayank Kaurav, Mohit Agarwal, Mohit Tandon, Rahul Kukreja, Surjit Singh and Vishal Rai who came together in 2019 to set up Pine Wealth.
Taking us through their business journey, Vishal said, “We had earlier worked together as salaried employees. But our passion for mutual funds and like-mindedness brought us to the entrepreneurial path. Also, leveraging on each other’s unique strength, we created powerful synergies.”
He also spoke about the seven small yet powerful things that created the ‘satte pe satta’ effect and an asset base of Rs 1,720 crore and monthly SIP flows of Rs 2.67 crore for 1,642 clients which include retail, HNIs as well as corporate investors.
#1 Keeping aside assumptions and having an objective discussion - We directly deal with facts to give investors a clear direction of what they should do to achieve financial aspirations in the light of their current situation. A close examination of the actual scenario like this makes them more serious about their investing journey and paves the path to a sound financial roadmap.
#2 Aligning portfolio risks with investors’ appetite - At times, investors fail to identify their risk appetite and thus make poor investing decisions. Hence, we pose introspective questions to them that make them discover their traits better. Some examples are - What will your first reaction be if your portfolio value reduces? What does market volatility mean to you? Also, it is a good idea to gradually increase the proportion of riskier assets to make them comfortable with market volatility.
#3 Being foresighted and taking corrective measures in advance - We started Pine Wealth in 2019 and the pandemic hit India the following year. As soon as the initial news of covid-19 made way, we foresaw the need for a digital business model and immediately worked towards it. Thus even before the first lockdown, we were ready to work remotely. Most importantly, we also kept our clients informed about this transition.
#4 Sharing relevant views along with portfolio statements - Every time we share portfolio statements with clients, we compare their performance with the previous statement. In case the changes are significant, we also outline the probable reasons behind this change. This helps them understand their portfolio performance holistically and also instils in them patience to stay invested.
#5 Knowing the right time to connect with investors - We have observed that while certain investors want monthly portfolio reviews, others are happy with quarterly reviews. To ensure we do not miss these dates, we have set reminders in our CRM system. Likewise, we have set the system to generate alerts as soon as NAV increases or decreases drastically. As soon as this alert pops up, we reach out to respective clients. Such proactive acts not only increase their confidence in us but also encourage them to stay invested.
#6 Using ordinary acts to create an extraordinary impact - While we have digitalized the business model, some clients still seek physical documents. For them, apart from e-statements, we send statement printouts at their preferred periodicity. Additionally, we keep them posted about bank holidays/non-transaction days so that they can plan their financial transactions accordingly.
#7 Asking for references at the right time - As against cold leads, referrals usually have a high conversion rate. Clients are typically happy to share referrals when they experience a smooth investing journey. Thus, we normally ask for references once we close any financial or non-financial transaction successfully. For instance, we reach out to them after submitting requested portfolio details, reaching a certain corpus amount, etc. Also, we believe, it takes 3 to 4 years to create experiences which encourage clients to share references voluntarily.