Sai Pragnesh is one of the rare breed who became an IFA following the entry load ban. Jayshree Pyasi finds out the motivations behind Sai’s unique move
Move to Advisory
After the entry load ban, many advisors quit mutual funds distribution and even among the ones staying back, the activity level has reduced. In these conditions, Sai Pragnesh of Chennai become an advisor after quitting his comfortable and safe wealth management job and floated his company Asset Mentors in July 2009. On his unusual career move Sai says, “It was a calculated risk on my part and was a culmination of three key factors.”
He explains what these key factors were:
First - After four years of working in the personal finance sector for others, he wanted to start his own advisory firm. It was a coincidence that he took this decision just when the entry load ban was announced.
Second - Many advisors were quitting and according to Sai it created a void where a capable advisor could find a place. “Investors were increasing and so was the demand for quality financial advice. I worked on the simple principle of demand-supply and supplied the investors with quality advice,” says Sai.
Third - The markets were not doing well in 2009 and he believed that if a market related business survived the initial turbulence, it would achieve great heights. And he would be able to make more money through this profession in the long run.
Early days
After his graduation in Commerce, Sai started working in the insurance sector. His inclination towards investment and personal finances stemmed from his passion to make money work for others. “Helping people to make the most out of their earnings was always close to my heart and thus getting into personal finances was the ideal choice,” says Sai.
After he quit his job as a wealth manager, Sai started Asset Mentors with his earlier clients. These initial clients referred other clients to him. And in the short span of couple of years, despite adversities in the form of market and regulatory turbulence, Sai had a clientele of 40 with an AUM of Rs. 4 crore.
View on SEBI regulations
“Unlike IRDA which works for the development of the entire insurance sector, SEBI is mandated to work solely for investor benefit. So begrudging SEBI for these regulations is the wrong way to look at this business,” says Sai.
Advice to Advisors
Sai believes that every change brings with it a number of possibilities that need to be explored. ‘One should be on the lookout for the proverbial silver lining,’ says Sai
According to him, the industry holds a lot of potential for people who are passionate about the profession and want to do well for themselves and their clients. “This profession is one of the few professions where while serving others, one can make money that would take years in other professions,” says Sai.