Listen to this article
Anand manages AUM of Rs.250 crore for 900 mass affluent clients. Anand shares with us his experience in dealing with mass affluent investors.
Anand, tell us about your journey to become a wealth manager?
Despite having years upon years of experience managing HNI clients, I was thinking of the 30-year-olds who are on their way to wealth, why not put them on the right track from day one?
With that in mind, I launched MIRA Money in 2022, a wealth tech platform, to extend wealth management services to the mass affluent. The idea was to provide access to quality wealth management services at a much lower entry point using technology, rather than requiring crore to invest.
Given your experience in catering to HNIs, what are your three key learnings from managing HNIs?
Risk-taking capacity increases with age – I believe contrary to the general perception that as people grow older, they do not take as much risk. I believe this is a misconception, I have noticed that as people grow older and achieve their financial goals, they tend to take more risks with their investments.
HNIs are living poor but dying rich – Many HNIs accumulate wealth but do not enjoy their financial success. Mentally, you may think things are unaffordable but actually most can afford a lot more than they think. People might leave a good legacy but they are not living a good life.
Long-term vision is critical – HNIs generally have a clear vision for their investments, which allows for better planning and decision-making for those who are managing their investments.
Why did you transition from catering to HNIs to focusing on the mass affluent segment?
The moment someone becomes wealthy, many line up to manage their money. However, the people who truly need guidance are those still on their journey to becoming wealthy, why can’t I use my experience to make them richer? My goal is to help mass affluent individuals become HNIs faster.
What are the key opportunities and challenges in serving the mass affluent segment?
One major challenge is the low-ticket size. Unlike HNIs, if you don't have multiple set of these mass affluent clients and giving you multiple lakhs of rupees, it becomes difficult for you to survive.
Another challenge is that mass affluent investors tend to have a short-term mindset. They react impulsively to market fluctuations unlike HNIs who invest with a long-term vision. Around 10% of investors on my app have discontinued their SIPs.
On the other hand, the opportunity is immense. The number of people in India who fall into the mass affluent category is close to 13-14 crore while the number of wealth managers serving them is only a few thousand.
How do you define mass affluent segmentation?
There are two ways to define it. One way is based on income, such as families with an annual income of over Rs. 20 lakh or single individuals earning more than Rs. 30 lakh annually taking care of their family. The other way is based on marital status, such as double income, no kids or double income, single child. These individuals generally have higher disposable income and the capacity to invest in wealth creation.
MIRA Money is an online platform. How do you acquire new clients?
Our primary acquisition method is organic marketing. People consume our content over time, build trust, and then decide to invest with us. We do not spend any money on marketing, we focus on building reputation through informative and engaging content.
What type of content do you create for client engagement?
I focus a lot on storytelling. Since I have been in this industry for so long, I can narrate real-life case studies and past experiences to show market trends and investment strategies. I dedicate 2-3 hours daily on writing and engaging on LinkedIn. Clients relate to stories. Investing is more psychological than just Excel-based calculations, so it is important to educate investors on managing emotions during market ups and downs.
We also use social media to simplify complex financial concepts. Consistency is key in social media marketing, so I ensure that I post at least five times a week and actively engage with comments and queries.
How do you keep existing clients engaged?
We use notifications, blog posts, email newsletters and WhatsApp updates to keep clients informed. Whenever the market sees significant movement, we send updates explaining why it happened and what we foresee. We also conduct live Q&A sessions once a quarter, where clients can ask their questions in real time.
What is your message for MFDs looking to cater to mass affluent investors?
The world has moved online and so have investors. Trust and expertise remain key differentiators but without a digital presence, MFDs risk losing clients to tech-savvy competitors.
What makes MIRA Money unique compared to other platforms?
One major differentiator is that we stick our neck out and take aggressive calls when required. We actively rebalance portfolios and make sure that if we make a mistake, we correct it in a very short span of time.
Another aspect is that many users have told us that our UI/UX is very easy to navigate. Lastly, our research is very strong and practical, which differentiates us from the rest of the wealth management platforms.