Mr. Ashok Shah – self made personality who hails from the Town of Gujarat – VAPI which is known as the largest industrial area in Asia in terms of small-scale industries, dominated by the Chemical Industry. Mr. Ashok Shah who was managing parental garment business after his graduation - which is very far from advisory business – never thought in his life that someday he will be handing and advising people for their Investment needs. He decided to stepped into Advisory business when received suggestion from his friend. Started with Postal Agency and LIC, later he joined NJ as a partner and became the first partner in the VAPI area. He in his advisory business had witnessed the toughest days when he was on the growth path of building the business. Always believes in developing long lasting relationship with clients, he used to take every business decision by keeping customer at the center. He strongly advocates since beginning that for any IFA - a family member should be the choice when it comes to business succession. And when the time comes to decide for his business succession he did the same. Mr. Pratik Shah - his son is now looking after his business.
Nudged by his father (a mentor and guru) for an advisory business, Pratik decided to take this challenge. Pratik – a Certified Financial Planner – is a new blood in this profession who is managing every aspect of the business and firmly going forward to make it a big success for him and his father.
With immense pleasure team e-Saathi presents an interview of Father-Son Duo who are living to bring prosperity through WEALTH CREATION in the lives of their clients.
ES: Please introduce yourself and also share your vision and mission or goals in life.
Ashok Bhai: It is in the early 80s when I came into Vapi after completion of Graduation in Commerce from South Gujarat University. Initially I was involved into our parental textile business meanwhile I took agency of India Post and birth of VIKAS INVESTMENTS took place. Earlier I was doing Post business part time, then took LIC Agency and finally to add to our product basket I took agency of UTI Mutual Fund. But still something was missing and I come across NJ in 2003 and after that I never seen back. In the year 2010/2008 My Son - Pratik joined me in this business and it is due to his dedication & involvement today we are here.
VISION: As VIKAS INVESTMENTS our vision is to make our clients free from financial worry and helping them in realizing their dreams.
MISSION: Our mission to be the most respected Firm in the field of Financial Advisory.
ES: Say something about initial days as we learned that you are here in this space since 1980s.And how you come into this business?
Ashok Bhai: I experienced myself first with the readymade garment business. After graduation, I started looking after family business of readymade garment shop. I had good time while running that shop and it was doing well. I had to have free time especially in afternoon, to run with that time I and my friend used to play Chess. (Even I play today as it always remain my favorite game since childhood). One day he gave me an interesting thought and advised me to look for Investment business – particularly he asked me to take Postal Agency. I impressed with that thought and without wasting so much time I took Postal Agency from nearby post office. This is how I took first step in the direction of becoming a Financial Advisor.
In 1984 I took Postal agency then in 1986 I empaneled with UTI AMC. Now Garment shop was becoming a - Part Time Business for me.
My heartfelt thanks to my elder brother who supported me a lot when it comes to start and develop this Advisory business.
ES: Say about Learning & Challenges you had in your long journey. Ashok Bhai: If we count the no. of challenges then I can say it were there in every aspect of business.
Investor: In those day Investor has very little knowledge about investment. Low income and less saving was the scenario.
Technology: No technological support available even for communication. India was witnessing the new wave of Communication when STD PCO was started opening and Telephone lines started spreading. Forget about mobile. Overall communication was very slow. I used to send application forms to Mumbai, Ahmedabad office of respective agencies though post and angadia services (same like courier service). Everything was manual - no automation.
Definition of HNI Client used to be different at that time: You know what ... People could laugh reading this but someone who invest an amount of Say just 5000/- used to get a status of HNI. We used to give them status of High Net worth Individual.
Now you can imagine how one acquire a new client in such scenario. I used to have mouth to mouth publicity. Used to inform a walk-in customer to my shop about my investment service. I still remember the days when I used to sit outside the GIDV Vapi Post Office for 2-4 hours a day and used to pitch about my services to all Post visitors. I used to visit client’s location to provide them pre and post sell service on my bicycle. Everything was different at that time.
1984 to 2000. Difficult phase: This time period of was bit tough for Investment business. At that time so many NBFC floated like Mushrooms. They started offering good Interest rates to investors & attractive commission to agents. People lured with those schemes and started investing good money with them. But very soon the bubble busted and all those companies got defaulted. At that time I realize that we can guide people about their finances and give them proper investment guidance.
Here would like to share few words with your readers: It was not like that I was not approached to sell those schemes. But being Client at the center of business I had kept my hand a side and never sell such schemes. I did not went with those Great Commission offering, did not allow myself to be trapped with a greed to earn more. The decision was taken so that my clients’ hard earned money did not fly away.
"For a long race you need to have Customer at center for all your decisions. If Investor will survive then you are automatically get survived. Be Ethical do not sell yourself for temporary gains."
But when you have confidence, commitments, dedication and honest intention then every challenge can be faced and at the end you always have smiley days. I used to be a Number one agent for the area of VAPI-Silvasa-Bhilad for UTI. I made a huge business for UTI in those days.
Those days were great learning days. Taught me how to resist every tough situation, how to handle investor in bad times and how to survive.
ES: Memorable Moments to Share.
Ashok Bhai: There are many memorable and learning experiences I had in this journey of 30+ years. But two Incidents would like to share with e-Saathi readers especially for new comers. Both incidents reflects my core business principle "Customer must be at center" of every activity and decisions you take. Believe me Long Lasting Relationship always pay off by one or another way.
Can you believe managing Investment of just Rs. 500/- can bring More Investors & More Investments?
One day I was sitting in my shop and received message from Branch Manager of SBI Branch of my area – informing that he want to invest 500 rs. In postal scheme. I immediately went on my bicycle to manage this call. I filled up form, got his signature and managed to submit it to post office and went back to home.
You could get shocked by knowing that I was getting just 5 rs. As a commission. I could have avoided bank manger’s call by giving excuses but I saw an opportunity and I went to meet him rather than thinking so much about earnings.
Very soon this one call and established relationship with bank manager turned into more investors and more investments for me. All Employees from that Bank branch started investing with me and became my clients.
Takeaway: Every effort to serve & manage client and his investment has long lasting impact on client. Have a positive and none greedy approach. Honest and ethical customer management always works.
Can you believe a Premium of Rs. 162/- can give Rs. 22 Lac for investments?
I am having one investor who bought one LIC Policy from me in 1990. Since then I used to pay his premium on behalf of him. The premium Amount is Rs.162/-. He is typically a very conservative investor. Till his tenure of becoming my client he had done investment of 2000-5000 odd rupees in KVP. But without thinking much about the business he gave me I regularly paid his premium till date.
Now the day came!!! In Month of June 2015, he received his retirement corpus of Rs. 22 Lacs from his organization. Very next day of receiving that Amount he came to my office & gave me full amount chqeue and asked me to invest where I found best to invest.
Takeaway: Do not underestimate the client. Smooth and retentive customer management strategy always work. You should not have a Personal Interest each and every time. I believe this kind of approach appeals to client and provoke them to be with you always.
"BUILD LONG LASTING RELATIONSHIP WITH CUSTOMER"
ES: how did you join NJ?
Ashok Bhai: I was approached by NJ Sales team – Mr. Kulbhusan & Mr. Hemanshu, they met me at my office and invited me to visit Surat Office. As a part of routine work I used to visit Surat – UTI Office. One day I went to Surat UTI office and called Mr. Kulbhusan. He came on his bike, got me to NJ’s Nanavat office. We had a good meeting – got explanation about NJ’s business model & it’s working. That sounded good to me, in fact I got very much impressed with the model and I decided to join NJ. This is how I became NJ Partner.
I was become the FIRST PARTNER of VAPI Center.
ES: In Advisory Business Succession always remains a big Question for every IFA? What made you to choose Pratik - your son for your business succession?
Ashok Bhai: Very good question indeed. As I believe in building and maintaining long term relationship with client the big question always remained with me that what will happen to my clients’ investments & trust they build over the years? Who will take care of all this in my absence? The best answer I found in my son – Pratik. I think Business succession is always to be seen in positive way and succession by family member is the best way out to do it.
There is one well known phrase in Gujarati about this: "Mor Na Inda Chitarva Nai Pade!"
Pratik already gained that aptitude of investments since he associated with me in overall business operation. He showed his inclination interest to carry forward this legacy ahead and this is how it has happened. He is new blood, carries understanding of latest technology and remains in touch with latest happening in the industry. Further NJ Team is also full of young blood from top to bottom that gives a great synergy in overall business operation. Recently He completed his CFP certification that reflects his interest, commitment & Sincerity towards business and our clients.
ES: Pratik, Your say about your learning & experience in your journey till Date.
Pratik: My father told you about how I joined the business. I learned so many things from my father that some of incidents he shared here also. So he always going to remain my mentor and guru.
But sharing about experience the first year it-self had a great challenge. The first year of the business taught me lifetime lesson that I never forget. The year 2008 – Stock market burst. Everywhere I heard same noise of redemption, stoppage of running sip, people started taking turnaround from Equity and MF. Everywhere negative news had made us scared for doing business. It was like a depressing atmosphere and one may decide not to be in this business. However I stepped in with faith in me and of course there was a moral support of my mentor and guru – My Father.
Also in the same time period we had lots of NFO coming in and without understanding the clients’ requirement, risk appetite and thinking so much about it we sold it. I accept bitter truth that I believed we miss sold those NFOs which later gave a pain to investors and eventually to our business. That was also a good learning part for me and I guess it was the first and last mistake we made till date as a part of business decision that did not went in favor of clients.
Sharing with you my changing experience till date was my first PBC. The first PBC that I attended is of GOA. An event - full of inspiration and positivity about the business. It showed me where I was standing at that time in term of business figures and that motivated me to be there where others are standing. I deeply realized that there is so much to do in this business. I have to reach a mile and I have just taken a baby Step. That PBC event gave me an Inner encouragement that only I can feel - No one else. I decided to take my business into manifold where it was during that event. It was and Mesmerizing experience for me!
That day and today. In 2008 I joined the business and the AUM was at around 10 Cr.
Today we are at 70 Cr. You can witnessed the growth we had. Running SIP book of 60 Lac.
ES: Pratik you are more aggressively focusing on MF business so what’s your take on E-Wealth Account & MARS?
Pratik: We believe that E-Wealth A/c is need of the time it has made us more efficient. Due to E-Wealth A/c we are able to give more time to our business, E-Wealth A/c has made our life simpler.
Everything is changing. Every day we are hearing about disruption in business through innovation. I think E-Wealth A/c is such disruptive technology platform. It is the future of business. Everything is going to be digitalized soon. Its next generation technology and only option is that we have to adopt it. The benefits are immense. My father has shared the pain of days he spent without technology and how it was challenging to do business. I believe every partner must change with the time. NJ also remains ahead in that race and brought all technology innovation and support to its partner. We just need to accept it.
Again MARS is a very unique offering & innovative solution to manage the portfolio. It caters need of each client with all different risk appetite and all different time horizon. It’s like a package food– A readymade product to eat. As per the need and risk appetite of the investor you can offer required portfolio. Positively we have started adopting it. The beauty about MARS is re-balancing and monitoring is hassle free as all such headache is taken care by NJ Research Team.
ES: How do you assess /see the future of financial advisory business in India?
Ashok Bhai: The answer lies with the fact that I already have promoted my son for my business succession. And that itself says everything about it. I think no father in the world shows wrong path to his son for his future.
The Future for this business in India is excellent, if you are convince about making money for others and that can become your passion then sky is the limit for you. We witnessed so many new entrants in the game in last few years. See the numbers of ARN holders are increased in last few years. Ecosystem for this profession in India is gaining momentum which is good for Advisors.
Awareness among the people about the various financial products is also increased in last few years, thanks to technology. Efforts made by many players & govt. for Investor Education is also appreciable. This has resulted well, if we say particularly about MF then we saw a tremendous growth in no. of folios, investments in equity schemes as well as increase in new investors in last one year. The credit also goes to govt. We have seen a govt. at center which has strong mandate after so many years. This is also in favors of the country’s economic development. Overall growth will result in more money in the hand of consumers – investors.
ES: Your approach or method for investment for your client?
Pratik: Actually we follows this approach, first we try to understand the family background, liability, responsibility of the investor and then we provide solution that best suits situation and need. We do consider their risk appetite and also do asset allocation.
For first time MF investor we always explain the working of MF and then take them through NJ GAP presentation and explain about importance of financial planning. We also do investor awareness meet for our clients.
As far as insurance is concern, we believe in Financial Planning Insurance comes first so we ensure that all our client have adequate insurance covers as per need and situation. Insurance is Best Wealth Protector.
ES: NJ provides marketing supports to their partner through every growing platform – NJ Bizmall. How you utilize this?
Pratik: Recently I read Mr. Samanvay Maniar’s Interview saying that Bizmall is a part of Business Planning and strategy. Which is absolutely correct. We were benefited from it there is no doubt about it. We purchase almost every product available at BizMall.
You need to pay something to get something. Understood that this business does not require any investment like other businesses but to promote yourself and to make you client understand about your offerings, to be in touch with them and for so many other reasons – I believe one has to invest in such things. In case of marketing one must think and should behave like entrepreneur. Investment in marketing eventually result in effective communication with your customers & helps in brand building. For e.g. recently launched Product - MCS is actually the need of time. You can easily send those images & Videos to your clients to connect with them on WhatsApp. I think this is best and again it’s a good thinking of NJ team for their partners.
ES: What suggestion / advice you would like to give to new Partners?
Ashok Bhai: Our advice and suggestion is to always work in the best interest of your clients and to always have belief & conviction in this business.
As I already said the future is very bright. This is a wonderful profession and personally I believe this is the best Service in Service industry. Come with conviction and passion to make money for your clients and always work with needed transparency.
This is the profession which earns you Lots of Respect but Take extra care to build your image and there should not be a single black spot on you. Wherever you go in society in any occasion people must have best words for you. To have confidence, first get convicted about product and service you are pitching to them.
"Have your conviction then client will get conviction."
To get conviction do your homework well and always spend at least one hour to read about your profession, product, service etc. We learned few things while working with LIC that every day read manual. The knowledge you gained will give you immense confidence.
"Believe me this is a Game of Confidence and Knowledge is power."
Last but not the least.... We also learned that LIC stands for: “Love is Compulsory” but it actually says that
"Love your Profession. Love what you are doing"
ES: Can you please share your short term and long term targets for your business.
Pratik: Short term goal is to build an AUM of 100 Crore & LIVE SIP of 1 Crore by March 2017 And 1000 Crore AUM & 3 Crore Live SIP by March 2025.
ES: Ashok Bhai, having associated with NJ since so long, would you like to say something about this long lasting business relationship?
Ashok Bhai: For sure. First, NJ is really a visionary organization. Powerful technology support since the days they are here in this business. NJ believes in Long term thinking, they have long sight of the business and because of this they grow like this. NJ has very dynamic young team in the industry – the time is for Young People.
I believe to getting associated with NJ was the best decision I took in my life. Also would like to say a special thanks to Mr.Kulbhusan Nandwani, Mr.Hemanshu Mehta & Mr. Sarfaraz Patel to support me from day one. This relationship has started bearing fruits since we joined hands. My good wishes and good luck to All NJ Team. Have a great years ahead !!
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