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MFD Anup Maheshwari of Money-Mantra, Raipur, Chhattisgarh has converted an HNI who invested in mutual fund through direct plans into his client. This HNI had substantial investment in direct plan of mutual funds and he eventually shifted his entire assets to Anup’s ARN.
Let us hear this story from Anup:
I met this client through referral. He had invested in couple of schemes through direct plans without keeping in mind asset allocation and diversification.
When I met him, I gave a brief introduction and asked him some questions to understand his requirement and risk-taking ability.
Next was evaluation of his existing portfolio. While a few of his choices were good, major portion of his investment portfolio has to be relooked to align it with his requirement and risk appetite.
I told him about the value that I bring to the table and told him about my approach to construction of investment portfolio.
Overall, the meeting went out well and I heard from him in a couple of days that he wanted to come onboard.
Today, I manage his entire investment portfolio. This client has given me mandate to manage his company’s investments as well, which was also through direct plans.
Here are a few things that has helped me convert this direct plan client:
Be yourself: Paint a clear picture about your services and scope of engagement. Don’t try to impress clients by promising about services which you cannot offer.
Also, this is cliché but I would say that MFDs should set the right expectation right from the beginning. This helps in cementing a strong foundation for a long-term relationship. Many direct plan investors look at past returns to select funds and most of the time, they do not have good experience due to anchoring bias. This is where MFDs add value.
Another important learning is not rushing to close to deal. Instead of following up, we should wait for clients to come back to us.
Highlight your value: Tell them what you can bring to the table. Talk to about them your fund selection methodology, portfolio construction process and highlight benefits of aligning investment with needs and risk appetite. Focus more on what you can deliver, which can add value to their investment portfolio.
Also, convey that you are accessible for them 24*7. They will have only one touch point for all their personal finance needs to make them more comfortable. They know they cannot expect such a service in direct plans.
Learn to say no: If you do not see merit in a product or service, don’t hesitate to give your opinion. HNIs are more knowledgeable and discussion with them requires different approach. At times, they may seek your views on a product or a service. If you don’t have conviction, tell them frankly along with reasoning. Many clients appreciate this.
Overall, client has to see merit in associating with you. They don’t care whether it is direct or regular plan. Things that matters to them is your knowledge, availability and service quality.
