Rajinder came into investment advisory by chance. He had an automobile spare parts business and had to leave it after he was diagnosed with Non-Hodgkin’s Lymphoma in 1987. He underwent cancer treatment for five years. The cancer had affected his knee which restricted his mobility. But Rajinder didn’t give up. “This was not a death sentence. People do survive cancer,” says Rajinder. After the tumour was removed he had to undergo chemotherapy and radiation to weed out any traces of tumour.
His automobile business required frequent travelling and physical strain, so he could not go back to it. Rajinder used to handle the accounts of his business himself. As he is good with numbers, one his friends advised him to become an investment consultant. Heeding his advice, in 1992, Rajinder took up distribution of company fixed deposits by turning the godown, where his brothers kept supplies for the automobile spare parts shop, into an office.
He called his company Evergrowth Investments. This became the turning point in his career.
Client acquisition
Interestingly Rajinder’s initial set of clients were neither friends, family members nor acquaintances. His Office is located on an arterial road in Mumbai’s Mahim area, and this location brought him great visibility. Thanks to it, the majority of his initial clients have been walk-ins. Over time as walk-in clients increased, he started getting referrals from his existing clients. Since then there has been no looking back.
Service - his utmost priority
A commerce graduate and LLB, Rajinder says that his sincerity has helped him win over the trust of his clients. Customer service is of utmost important to him. “I’m very particular about service. I make sure that every client request (change of bank mandate, transaction requests, dispatching a/c statements, etc.) happens swiftly,” says Rajinder.
Rajinder does not have any marketing or sales staff. He has a three-member team which helps him send applications to R&T offices and make sure his over 600 client base receive the best service. He stays in touch with his clients personally through phone calls and emails. So impressed are his clients with his service that very few have left him.
Many a times he does feel hurt about this, “You keep doing good and give best service people may not remember, but one mistake or misunderstanding, and people do not forget” says Rajinder. He shares a good rapport with clients and they come to meet him from distant suburbs of Mumbai.
Rajinder advises his clients the way he advises his friends or family members. He has a good mix of clientele, but not everyone has the same temperament. Convincing clients can get difficult, but his motto comes to play. Rajinder believes that, “You will come as a customer, but stay as a friend “
When asked about his business goals, he says, “If clients are satisfied, business comes automatically,” says Rajinder.
Conviction in balanced funds
The balanced fund assets under management have jumped 45% from Rs. 34,550 crore in July 2015 to Rs. 49,994 crore in July 2016. As a result, the investor accounts in this category have increased by six lakh during the same period. So why have balanced funds suddenly become popular among distributors? Experts attribute the increasing popularity of this category to the changes in tax structure of debt funds and the comparatively lower risks associated with such funds.
Rajinder has been recommending balanced funds to a majority of his investors since 2005. One of the reasons 
for his conviction in balanced funds is the decent returns posted by the category. “They have performed well over a long term. My clients’ money has grown substantially in balanced funds. I have been recommending balanced funds from a long time,” says Rajinder.
When asked why he doesn’t recommend an equity and liquid fund separately, he says, “If we recommend an equity and liquid fund separately instead of balanced funds, investors might see that the equity fund is not performing well if there is a correction while liquid fund would offer stable returns. Thus, investors can’t differentiate between products. They think all mutual funds are same. Thus, I recommend balanced funds which come with auto asset allocation and are thus able to protect the downside.” So when clients wish to invest lump sum in balanced funds, he spreads their investments in three to four different funds so that the portfolio is diversified.
He recommends balanced funds to investors who typically look for reasonable growth coupled with safety. Since balanced funds also invest in equity, Rajinder only suggests these funds to investors who have a five-year time horizon. Also, Rajinder makes sure that he apprises them about the risks involved in mutual funds well in advance.
As far as fund selection is concerned, he looks at funds which have done well consistently over different market cycles. The AMC brand matters to him as he feels that the pedigree and the brand recall of a fund house helps him connect with his clients.
When asked about his personal investment style, he says that 90% of his investments are in mutual funds. While Rajinder is a long time MF investor, he says that he has to do a lot of convincing when it comes to brining clients in mutual funds. “I deal in company fixed deposits, mutual funds, and a little in life insurance as well. It takes a lot of time to convince clients to move to MFs from FDs. So I educate them that how MFs can give better returns than FDs by showing performance charts. I also show them my personal investments,” says Rajinder.
With over Rs. 184 crore AUA as on March 2016 through his second venture, Rajinder has come a long way. His story is about the triumph of the human spirit. His achievements are built through determination, perseverance, and sheer force of will.
Now having spent over 20 years in MF advisory, Rajinder is looking to pass on the baton to his daughter and nephews who are learning the ropes of this business. We are confident that driven by his values and guidance, Evergrowth Investments will remain the shining star for many an Indian looking to fulfil his financial goals through sound investments.
