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All of us know about a tale of thirsty crow where he puts hundreds of pebbles in a water container to quench his thirst. Karnataka MFD Srinivasa BH reminds us of a similar story.
While investing Rs.10,000 monthly is a SIP may be daunting task for many, setting aside Rs.335 per day for a better financial future looks manageable for many. With this belief in mind, Srinivasa who is based in a town called Holenarasipura in Karnataka collects SIP contribution daily in cash and deposits it in the bank account of client just a day before the SIP date.
Let us hear this story from Srinivasa.
SIP in cash instalments
I belong to a small town where financial literacy is very low. I have to put a lot of efforts to convince prospects to invest in mutual funds.
Since most of my clients are small business owners, I observed that these individuals are not comfortable with committing monthly contribution through SIPs due to unplanned withdrawals. This made me come out of idea of a daily SIP contribution.
I urge small business owners to open a separate savings account dedicated to investment. I give them an option of depositing small amount through cash daily. We mutually decide the amount and frequency of payment. For example, for a monthly SIP of Rs. 10,000, I may collect Rs. 1,000 in cash on ten different days of the month or Rs.333 every day. Through this, these individuals don’t face any constraints to commit SIP contribution.
I deposit the total amount in the bank account before the SIP date. Thanks to this approach, I have grown my monthly SIP book substantially.
Every client is important
Irrespective of the amount of SIP, I believe every investor is important and deserves equal attention. I cater to clients having a monthly SIP of Rs.200 with the same passion as I cater to those having a monthly SIP of Rs.2 lakh. In fact, I have travelled 100 kms one side to acquire a single client.
At times, I feel exhausted due to extensive daily travel to collect cash but my passion to grow business keeps me motivated.
Another thing that I love to do is to meet fellow distributors to gain knowledge and learn from their experiences.
Currently, I cater to 400 plus active self-employed clients. I manage a SIP book of Rs.23 lakh of which Rs.10 lakh is in the form of cash collections. My current AUM comprises solely equity and stands close to Rs.22 crore.
Srinivasa B H’s story sets an example for many. Do you also have a story to share with us? Write to us at newsdesk@cafemutual.com and stand a chance to feature on our website.
