During the colossal market crash of 2008, many investors lost their wealth. That phase led to negative sentiment towards equities in most Indian hearts. People lost their conviction towards equities, they sold off whatever shares they had, booked huge losses, and directed their money towards fixed income securities.

But then slowly, the bruises started to heal, the markets started to revive, and people gradually developed confidence in the markets once again.

And in the mid of all this chaos, the ones who were calm, who did not sell when the prices went down, who waited for the storm to pass, who were optimistic about the future, were the ones who gained.

The Sensex is celebrating the Indian economy's success and is at its all-time high. And amidst this air of positivity, there are two types of pessimist investors, you have to deal with. Their bruises have healed, but the marks are still there which makes them panic at every other news in the market.

1. Those who want to sell, because they have made profits on their investments: These are your existing clients, who invested some time back, they are super happy to see their gains since the markets took a steep upsurge recently. They might or might not have invested in equity or mutual funds for certain goals, but now since they have made profits, they want their money back, they want to feel the contentment which has been bestowed onto them by the harvest on their investment. They believe that this is the peak, and if they do not redeem now, they may not be able to yield this much tomorrow.

So as their advisor, you must hold them from falling prey to their emotions. You should explain to them that:

• Until they are not in dire need of money or it's time for a goal to be fulfilled, they shouldn't encash their investment.

• Lastly, make your clients realize they are investors and not speculators. They are here for the long haul. They are not the ones who dived in to be gratified by short term nominal gains, rather they should crave for more by being invested for the long run.

2. Those who do not invest, because they believe that it would be expensive to invest at market highs: Many of your prospective clients or existing clients may also be of the view that “since the markets are so high, the cost of acquiring investments would also be high, so let's wait for some time for the markets to fall and we'll invest then.”

So, for these investors, you have two options:

• One, you explain to them that there is no right or wrong time to invest. You never know, the markets may never take a U-turn, so if that happens and the investor procrastinates his purchase decision to purchase on the notion that markets will fall, will end up paying extra money later.

• Two, SIP is the solution to all problems. Whatever happens in the world, just keep paying your SIP installment. At the end, your total cost will be averaged out, no good or bad will have a significant impact on the acquisition cost. The Power of compounding will help your money multiply of the years.

Your clients panic because they have had a bad investment history, they panic because they get influenced by the TV anchors who propagate that markets are at their peak and a fall will begin very soon. The true role of a financial advisor comes to play at such times, your clients need the right advice. You cannot ask them to not watch the TV, or forget the past, but can definitely hold them back, ensure them that the right thing to do is wait and watch their small money create huge wealth for them.

What a fantastic journey it has been. India has made enormous progress in the last 73 years since Independence. Education levels have gone up, standard of living has gone up, we have access to better health care. We have better roads, some of the world's best airports, lowest cost digital connectivity. Pharma, IT, Banking are some of the sectors where we are leaders in the world. We have reached MARS, created our own Silicon Valley. From Sports to Bollywood, we continue to grow across all spheres. From a power deficient nation to clinching the leadership position in solar power. Your grandparents are living testimony to the evolution of India from a land which was once stripped of all its riches, to a flourishing nation now, look around North, South, East, West, you can see the prosperity everywhere. India is a land of entrepreneurs who have created world class businesses in different segments. Indian Diaspora spread across the world is enhancing our soft power. Not only do we get highest remittances from them, but Indians abroad are leading world's top most companies too.

We have come a long way and yet this is only the beginning, there are areas where we continue to be in the work in progress status. Still many people continue to live in abject poverty, our education system churns out new unemployable youth year on year, medical facilities are yet to reach every nook and corner of the country. Corruption still continues, we remain on tenterhooks at our borders, with poor air quality and high pollution we continue to treat nature shabbily and the pandemic above all, continue to be our challenges.

Yet as Madhavan said famously in Rang de Basanti, “Koi bhi Desh Perfect Nahi Hota, Usse Perfect Banana padta hai” As Indians it is our duty to work together to reach this goal of perfection for our country. There is always scope to do better.

We, Financial Distributors, can do our part in changing the fortunes of our country, through our little contribution in the financial services industry. While India and Indians continue to grow, we are going to play a pivotal role in the growth of the country for years ahead. With our right advice, we need to motivate more and more traditional investors to channelise their savings into modern and better financial products. This not only ensures that we will help them prosper and achieve their dreams, they will also benefit maximum from the tremendous growth story waiting to unfold in the years to come. On the other hand this money invested in financial assets, takes care of the needs of our dynamic entrepreneurs hungry for capital. A win win situation overall. With proper risk coverage, we can ensure millions of families do not get financially affected when an unforeseen crisis hits them.

Just imagine, if in the next 10-15 years, you are able to reach out to 1,000 investors and lets assume they are going to create wealth of Rs. 1 Cr each, it will be you who will play an instrumental role in creating wealth of Rs 1,000 Cr for the country, changing the lives of 1000 families. If one partner can do that, think about the power of thousands of partners doing it together. A steady, consistent effort from our end, can have such a huge impact in forthcoming years that we cannot even imagine today. Let's bring about a wave of change which will free our fellow citizens from financial shackles and lead us to becoming a developed nation,

Another dialogue from Rang De Basanti, this time from Amir Khan is apt for the situation, “Zindagi jeene ke do tareeke hai, ek, jo ho raha he hone do, bardasht karte raho, Ya phir duja, Zimmedari Uthao usse badalne Ki”. So, come on all the partners. Lets take the responsibility this independence day to pass on this “amrit” of financial independence each day every day to at least 2 of our fellow Indians and help them reshape their lives and dreams. Let's all do it together to build a better, stronger, beautiful India.

Vande Mataram. Jai Hind.

Written by: Mr. Husaini Kanchwala, Head of Investments, NJ Group.

For any suggestion & feedback, write to him at This email address is being protected from spambots. You need JavaScript enabled to view it.

When it comes to investing their hard earned money, investors are always skeptical. They fear taking the wrong decision for their investment, which might result in loss of value. To overcome this fear, they will either try do some research on their own, seek tips from friends or rather follow a friend like Eklavya, investing on the basis of ideas overheard. Even if the investor asks a friend about investment, very few people actually share with friends whether they have invested or not. Reasons are twofold, One, you don't want to be laughed at for making bad choices in your circle of friends and family, Two, financial matters are closely guarded, you don't want to divulge your investment details to anyone.

In comes the Financial Advisor. Every investor is looking out for someone dependable, knowledgeable to guide them through these financial troubles. But there is a problem. How do I trust the person with my money? Is he having sufficient expertise to manage my funds? Will he give me the right advice? Will he be available in my hour of need?

As an advisor, it is critical that we understand and address all these concerns of the investors. Some investors might come forward and state these concerns clearly, however many will hesitate. It is our responsibility as an advisor to comprehend the unsaid, and give comfort to the investors through our conduct, understanding their expectations and communicating what we are going to deliver in a clear and direct manner.

Trust is the most important ingredient of an investor advisor relationship. It is going to be built only over a period of time. You can't say “Trust Me” to an investor to induce trust in you. So how to develop a strong dependable relationship with a new client.

1. Right Introduction

Sample this, If you meet a new client and introduce yourself as, “Hello, I am XYZ, Currently managing assets worth Rs. 50 Cr from more than 400 families since last 10 years. Me/my team has helped our clients in settling insurance claims worth Rs. 50 Lac in the last 3 years. We operate completely online and try to provide best possible solutions related to investments and insurance based on specific needs of the client. Please feel free to ask me any questions you might have in your mind”

Even if you are new in the industry and do not have big figures to vouch for you, you can share your association with NJ, your certifications, your own investing experience, your differentiating points, the online platform, and most importantly your intentions of creating wealth for people.

You have given a fair idea of your experience in this short introduction. Also, you have given an opening to the client to freely ask whatever questions he may have. To have a more professional look, you can either share your printed profile containing the above information or have a video profile. Though, a small step, but gives a clear indication to the investor that he is dealing with a professional.

2. Do your homework

Know your Customer, and not just from the mandatory documentation point of view, find out which field the prospective client belongs to and try to give examples or references of clients handled by you having a similar profile. Example, with a doctor client, you can talk about some doctors known to you or may be your clients. For an IT industry person, talk about your IT clients, if any. For a retired person, you can add, total number of retired clients handled by you. This helps in breaking the ice. One word of caution, do not divulge investment/portfolio details of any of your existing clients. Not only does this constitute as breach of privacy for your existing clients, but also gives impression to prospective investor that his investment details might not be safe with you.

3. Ask Right questions

Once investor is comfortable with you, be ready with your questions. Remember first couple of meetings are about understanding the investor better. Don't be in a hurry to sell your products. Ask about his goals, investment pattern, Direct Equity/MF investment experience (if any), insurance coverage, pending loans, working members/dependants in the family, his expectations from his investment, Job/business, monthly expenses, etc etc. You should preferably have a ready questionnaire with you for collecting all these details. You need to be clear in communication that you will be in a position to give right advice only when you have right and complete details. The detailing in your work also gives right impression to the investor.

4. Keep Expectations in Check

Be clear what you are going to deliver and what you aren't. Always under promise and over deliver. Apply this to return and servicing expectation of clients. Talk about volatility in returns from market in short term and how it can affect performance. Share how frequently you will meet and review the portfolio. The client needs to update you in case of change of job, salary, inheritance, etc. Also, client needs to rebalance his portfolio periodically, if invested in MARS. Clients should not expect advice/meeting every few months.

5. Use Client Networking

Best way to gain the trust of clients is to utilise client networking. A doctor client will be happier if you sent some patients to him. A client looking to refurbish his house can be connected with a client having paints/hardware/interior design business. One connection gives you two happy clients. The more you are in touch with your clients, higher will be the chances of discovering such needs. Keep your eyes and ears open during client interactions to discover such opportunities.

6. Trust takes years to build but can be lost in a second

It takes multiple meetings over the course of years to build a strong relationship with the client. You need to have your patience and take it step by step. Your conduct has to be in the best interest of the client at all times. One mistake and a relationship of years can be ruined. Keep your communication clear and client expectations in control. Your greed for an extra percent of income some times can cost you the client for lifetime.

7. Annual Meeting

Have an annual meeting with all your clients. Think of it as your AGM. You can discuss how your business has grown, how your team size has grown, new products and services on offer. Above all you can utilise the event to say Thank you to all your clients. Everyone likes to be associated with an advisor who is growing and prospering.

8. Hand-holding during difficult times

You are in a business which revolves around the thing which is most dear to your clients, Money. Their expectation from you is managing their money in a way that it's always moving up. However, there are times, beyond your control, where the wealth creation journey takes a U-turn and gets back on track, only after a while, with a lot of difficult trenches in between. This is a very critical time, because no one wants to see his/her wealth depleting. One of the most important roles of your advisory relationship is to face the client during the downturn, support him emotionally and guide him towards the right path.

Trust is something which can not be shown or communicated. It can only be demonstrated through conduct. A partner needs to be a friend of the investor for having deeper connections. Trust is also fickle in nature and doesn't remain constant. Market fluctuations, a non performing fund, non courteous support staff, many factors can affect your trust with the client. Sound knowledge, high service standard, regular portfolio review and above all advice in best interest of the client are some important ingredients to build trust. High trust will automatically yield better references. It also releases lot of stress of the client as he knows there is someone to guide him in the right manner.

Written by: Mr. Husaini Kanchwala, Head of Investments, NJ Group.

For any suggestion & feedback, write to him at This email address is being protected from spambots. You need JavaScript enabled to view it.