Mr. Husaini Kanchwala, Head - Product - Investments. NJ Group
Husaini Kanchwala is the Product Head for Investments, having been a part of sales earlier. With an experience over 10 years in the financial services industry, Husaini is responsible for investment product promotions and tie-ups with manufacturers.
Consider a situation, you are having an appointment at 8 am, with an HNI client whom you had been pursuing since last 6 months. It's already 7.30 and you are yet to have breakfast and also have to drop your son to his school bus stop. You are already nervous about this meeting, your kid is cranky and not ready to have breakfast. Your son, pushes the glass of milk away and it spills on to your shirt. In your tension, you slap him and shout at your wife. Your son starts crying louder irrtitating you further. You change your shirt while fighting with your wife and rush to drop your crying son to his bus stop without having breakfast. As you were late, you only manage to catch the bus at the next stop, 1 km away, but not before scolding your son further for the entire route. Its already 7.55 and clients office is 20 mins away. You speed up and break couple of signals to reach quickly just to realise that you have left your presentation folder and laptop at home in the hurry!!
How could this situation be diferent. Suppose, when your son spills over milk on your shirt, you had remained calm and said, "No problem son, just complete your breakfast quickly" and moved on to your room for change of shirt with a much calmer head. You pick up a sandwich and take your son to drop him off. Your son is also apologetic and says sorry. You drop him to his bus stop with a kiss on his cheek. You SMS the client that you will be delayed by 5-10 mins!
So, what's different in the two situations. The background is the same, its just your reaction which is different. Once you lost your cool, you ended up using your enregy on shouting at your wife and son and in fit of anger, you forgot your belongings and messed up an important appointment. While, when you were calm and composed, you were quick in action and entire situation was in better control with client appointment just delayed by few mins.
In life, be it personal or professional, 90% of things are not in our control, but if we can manage the 10% what we can control well, the resultant impact on ourwork will be enormous. We inadvertently end up spending too much of time on discussing, debating or worrying about almost 90% of the things which are completely out of our control and take no action on the 10% which is under our control. Remember, there are too many variable factors at play and it is next to impossible for you to even think of what factor can affect you, controlling it is way off. What we can do in a situation smartly so as to benefit out of it at our level is most important and smart people spend their time and energy on focussing on the 10% and make the most out of it.
If I talk about MF business, many advisors are worried about the falling markets, work done by government, global scenario, operational or regulatory aspects of the business, competition in the market etc etc. While we may spend lot of time (almost 90%) discussing, debating and worrying about these factors, none of them are actually in our control. The stock markets have their way, you can't do anything on the FII flows or earnings (both on positive and negative side), you don't have much of role in policy making in India (forget about US, China, Japan, Greece, Spain etc), you can't do much about which tax will be imposed when, Service Tax, GST etc or at what rate, or how the regulators are going to deal with expense ratios!! No matter how much you read or discuss or think about above aspects, it is not going to change the way things will pan out.
What you have in control is how you utilise your time. You can spend your time meeting and prospecting new clients, understanding the needs of your clients better, doing more activities for growing your business, utilising innovative technological tools to make your business more efficient, brand building and creating your unique identity. If you have strong conviction that your investors are going to create their wealth by investing in Equity markets in long term than there is no point wasting time on non important aspects. And if your clients are going to make money, you can be rest assured that you will also make ample money in the process, though the ways and means might evolve over a period of time and may be different in future than today.
The opportunity in MF business is so large that even if you were to add 1 customer per day and get Rs. 10,000 SIP from him and work like that for next 10 years, you will be not even close to 1% share of total savings in whichever city/market you are working in. Even if you were to do this experiment through Lumpsum business, the results will be same. This is because
1) More than 95% of investors have never invested in SIP (Only 50 Lac SIP customers PAN India approx)
2) Money lying in FD's in India is Rs. 54 Lac Cr as per RBI (against Rs. 4 Lac Cr of Equity MF) and growing year on year. ( For every 1 Cr of your AUM, there is 12 Cr of FD investment!!)
3) With 7.5% annual growth in economy, the average income of families are rising leaving them with more investible surplus
4) With tightening of regulations around black money, other asset classes like real estate and Gold are not showing signs of high growth for coming years
5) Final and most important reason, there is a dearth of good Financial advisors in the country and investors are always on the lookout for a good customer centric advisor and are willing to pay a fee for right advice.
Isn't it a paradox that investors are looking forward to good advisors but majority of advisors are worried about economy, markets or regulators.The smart advisors meanwhile are utilising the opportunity to the hilt, focussing on 10% controllable factors, reaching out to maximum clients through innovative client engagement and usage of technology. For example, while most people were debating using technology platforms, smart partners have taken the lead and shifted their entire business online, which has not only made them free from operational work but has left them with lot more time in hand which has in turn increased the quantity and quality of their client engagements.
To summarise, the 90-10 principle is applicable on all aspects of our life. We need to focus in the right direction and spend more time on the factors which are under our control rather than being stuck on 90% things which we can't change anyway. Whatever change is going to come, is any which way going to be applicable to everyone else too!! What makes you different is how you respond to it and adapt your self to the circumstances, what we can call as utilising our 10%. The MF industry is at an inflexion point and we will be doing a large disservice to our investors if we can't ensure that most of them reap the benefits of this forthcoming growth. We need to have unequivocal focus on reaching out to maximum customers and creating their welath in long term.
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