It was his clients’ interests towards mutual funds that made Prakash Mahendra Thakkar venture into MFs. In conversation with Paromita Dey, Prakash Thakkar talks about his decision to shift from FDs to MFs, his advisory business and confesses that he has learned from his mistakes
Prakash Mahendra Thakkar started his career with a brief stint in an NBFC called Srei International where he mobilized deposits for the company. He left Srei International to become an independent distributor for fixed deposits.
Realizing that mutual funds would gain prominence and prove to be lucrative over time, he decided to venture into mutual funds. Moreover, the growing interest of his clients also urged him to deal in MFs. His transition to the mutual fund industry happened in 1997 with the creation of Wealth Creators, his independent advisory business, which he began as a distributor for Kothari Pioneer.
He initially approached his previous clients from Srei and Kothari. “I started advising them on mutual funds. There was a certain amount of trust which made my clients invest through me”, says Prakash. His clientele grew through referrals and recommendations from his existing clients, friends and family. He does not believe in direct marketing or cold-calling people.
Prakash advises his clients on products based on an analysis of client needs. Learning from his mistake of selling small funds, he mostly recommends top performers to his clients. He has more faith in the ability of top performers to withstand market volatility.
“Make your money work as much as you work for it” - Wealth Creators has always lived up to this vision. Prakash was managing almost 25 crore of assets in 2008 and is currently managing 57 crore of assets, out of which 20 crore is invested in MIPs and FMPs. “My clients believe in me and my vision. This is what motivates me to do well even if the market is not in my favour”, added Prakash.
When asked about his experiences during the recessionary year of 2008, he says, “2008 was not a problem. Since new money was not coming in, I advised my clients to take advantage of the attractive valuations and invest more.” He never lost confidence in himself and kept advising his existing clients to maintain a positive outlook towards the market. It paid off for his clients, winning him recognition and more clients in the long run.
When asked about his plans to expand his clientele, he says that he is not too keen on attracting more clients. “I am currently dealing with so many clients that sometimes it gets difficult to deal with my existing clients only.”
Prakash is very particular about keeping himself updated about every event in the MF industry. He strives to offer effective and insightful advice to his clients. When asked about what kind of advice he wants to give new budding distributors, Prakash says, “One needs to work devotedly and win the trust of his clients by offering the best of services.”