Data shows that more than 70% of Indian investors work with professional advisors, compared to 54% globally, and a majority of these are in the 25-34 age group. Hence, it is evident that your clients are more likely to rely on your services as an advisor while making investment choices.
This completely places the responsibility and accountability on your shoulders. Here are a few things to keep in mind:
- It is all about your Knowledge
Technology has now made it easy to invest from anywhere. Investors no longer rely on advisors for support for paperwork or execution. In such a scenario, what can truly differentiate you from the others is your technical skills and knowledge. An investor will consider you as their best friend if they know that you have the right skill and the ability to recommend the best solution for his or her need.
- Be Available
Keep all communication channels open. Make it easy for your clients to get in touch with you. Send them regular updates and help them separate the news from the noise. Leverage platforms like websites, mobile, instant messaging, CRM solutions, emails, etc., to stay connected to your clients without being intrusive.
- Prioritize Your Client’s Financial Goals
Take the time to learn about your client’s financial situation and goals. This will require you to go deeper than knowing about their cash flows and the kind of investment avenues they are interested in. Knowing your client’s risk appetite and their long and short-term goals is necessary to formulate a meaningful strategy.
- Address Your Client’s Concerns
Investors are constantly bombarded with news, views, opinions, and trends. As they start taking active participation in the decision-making process, it is essential for you to offer them refined insights that work in their interest. Address their concerns by highlighting the impact of the developments on their specific investments.
- Prioritize Your Client’s Interest
To build trust, a fundamental pillar of financial advisory, it is essential to prioritize
your client’s interest over everything else. Never shy away from providing a
holistic picture.
For instance, while your client may prefer investing in fixed-return instruments such as a bank FD, you must highlight that the post-tax returns might not be enough to beat inflation. As an alternative, you can suggest investing in equities that have the potential to generate inflation-adjusted returns over the long term. It takes regular and sustained efforts to win the confidence of a client. It requires discipline and ongoing efforts.
IDFC Mutual Fund has the tools that help you build the trust of your clients. Visit www.idfcmf.com for further details.
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