Goutam Karmakar, who had at one point never imagined pursuing advisory as his mainstream business, is one of the most successful advisors in the East. Pallabika Ganguly traces how he developed interest and thrived in this business. Of late, however, Goutam feels that regulations have impacted his revenues
After graduating in 1986, Goutam was interested in joining administrative services. But he was unable to clear the exams so he gave up hope of a career in administrative services. The other dream Goutam had was to be a part of Indian army from his school days. He was a part of NCC in his school and college days and through it he had completed 18 army trainings. Due to certain circumstances, he could not fulfill this dream either.
Following the footsteps of his friends, he took up an agency of Unit Trust of India in 1986 but was not too keen to pursue it as his full time career. Goutam carried out his agency business as a part-time option and took up teaching as his full time earning source. He used to provide coaching to junior college students.
Goutam’s perception about the agency business took a U-turn in 1991 when UTI launched its Mastershare Plus. He has no account of how much business he did with this product as there used to be queue of investors to invest in that product. In 1992, UTI launched another product - Mastergain which turned him into a ‘lakhpati’. “Mastergain changed my view about the industry completely as I generated Rs 27 lakh business with the product,” reveals Goutam.
From then onwards, he started taking the business seriously and adapted a financial planning approach for his clients. He took up an agency for Canbank Mutual Fund and later SBI. His dedication towards his clients has helped grow his business. Lately, he has also started selling life insurance as he feels he is no longer able to generate the revenue which he used to generate earlier from mutual funds because of the regulations.
Experience and knowledge
Goutam claims that his experience over the years helps him to serve his clients better. “I am well aware which fund house re-launches products with a new label,” says Goutam. His colleagues too benefit from his in-depth knowledge about the products. He studies his clients and their needs before suggesting any products.
Business Model
Goutam focuses mainly on referrals. He has been able to grow his business through referrals and generate a client base of 300 clients from mere 50 clients.
He does not charge his clients and believes in educating his clients about different investment products available in the market. According to him it is difficult to charge a client because nobody values advisory.
Future of the industry
Goutam says that the future depends completely on the regulator because it has been difficult to adapt to the new norms and generate business. Currently, his AUM is Rs 9 crore but he does not see it growing due to the volatile market conditions. He hopes that the golden days return again so that he can generate good amount of business.