22nd December 2016
Mr. Dhansukh Shah
Bhilad - Vapi
Mr. Dhanshukh Shah holds Bachelors Degree in Science and has also completed his Diploma in Electronics. He joined Sony Corporation after his college and started working with it as a Junior Production Engineer. He left his job within very short time and started Sales and service business for electronic & appliances in his home town – sarigam – Vapi. Electronic business did not remain a very satisfactory one for him for a long time and he decided to shift the focus into some other business area. After 13 years - he sidelined from the Electronic business and decided to foray into the Financial Industry.
He took first step in this journey of wealth creation for his clients in the year 1998 when he became an agent for selling Life Insurance under LIC. In 2005 he started selling MF after becoming partner of NJ. The best thing happened for him in this business shift is that – his natural market turned – clients who use to buy electronics products from him has started investment with him. Mr. Shah has never looked back since he became NJ partner, he is working with a vision to get more and more clients and with ideas of equity investment make them earn more and more. He wants his clients to upgrade themselves regularly from where they are now with the use of technology and accept changes in the business.
Team e-Saathi takes immense pride in bringing his success story to the readers of e-Saathi. We wish him luck for all his future endeavors.
ES: Please introduce yourself and also share your Vision.
Answer: I completed my B. Sc in 1984 from Mumbai University & Diploma In Electronics in 1986. I worked with Sony Corporation in Mumbai in as a Junior Production Engineer for one year. To start my own business in the Electronic Industry, I shifted to a newly developed GIDC at Sarigam (Gujarat) and started sales and servicing of electronic and appliances.
In 13 years of Business, it was difficult to earn money and also had a though to do something else. Also the most important take away I had from this from this business is that I earned respect ,name and trust from all my costumers. All my customers of old business remained with me in new business also. In 1998 I got agency of Life Insurance Corporation Of India and good fortune started to flow, qualified for MDRT in 2001 and found this field more interesting. To grow the business and to offer more products I started offering Non Life Insurance products by taking agency.
In 2005 an executive form NJ visited my office and explained MF, which always remains interesting topic for me which I learned since 1985. I associated with NJ and started selling Mutual Fund, in a very short span of 10 years I accumulated AUM of 30 Crs. I am also enjoying Chairman Club Agency in LIC. And also successfully completed CFP.
ES: Do you promote the idea of savings through MF SIP in your Clients ??
Answer: Yes. SIP is the most easiest way to start with, easiest way to operate and easiest way to create Wealth.
ES: Client Communication is integral part of your business. Please share any best practices ??
Answer: Advertisements – that is what i bet on. For me the best way to acquire client is by using proper Advertisements. People should know about you and your services and when it comes to approaching mass then I believe this can be achieved very easily and effectively by advertisements. Also we do use social media platforms such as WhatsApp & FB for promotions. Sending Lief-lats, Pamplates and doing client meets, corporate meets etc are also the ways we use for acquiring new clients and retaining existing one.
ES: How much importance do you give to insurance in your advisory practice ?
Answer:Insurance is the highest priority in my list. Life insurance is the first thing we take into consideration while doing FP for any client. I recommend my clients to go for Term Plan & Mediclaim as per their need.
ES: How do you educate and convenience your clients for mutual funds ??
Answer: My way of convincing client is mostly through story telling. Educating them on the subject of financial planning, explaining and migrating them from from conventional investments to Equity and related instruments are the core part that I always do and look for all my first time clients. Explaining them the benefits of Power of Compounding, the benefits that equity bring in with respect to Tax Saving etc are also important for me.
I always advice my clients to spend quality time with with me for identification of their financial goals,prioritizing and planning for them. Generally I convince and explain the power of equity by narrating my own story of Wealth Creation from WIPRO and also a story of Asian Paints, in which my Investment grew from Rs. 10,000 in 1990 to 40 Lacs in 2016.
ES: Your experience with NJ technology initiatives in terms of various desk for clients & partners ??
Answer: Sometimes i think that a good qualification is sufficient to earn and grow business easily. But for for last 10 years my association with NJ have changed my thinking. Without technology you can grow with baby steps, but for large scale growth with ease and comfort it is not possible without technology. I believe NJ has played a very prominent role in giving superb platform for growing business in this industry. They are providing all possible product and service along with much required Online desks, mobile apps etc which one require to have to grow in this industry.
ES: Please share with us any standards/practices related to client segmentation ??
Answer: Differentiation of client is necessary…. Some clients invest and forget where some clients invest less and harass more… since they do not have financial planning and knowledge about equity the regularly visit the office and disturb the atmospheres… we recommend financial plan and give more priority touch a client… we categorize in 3 ways where HNI is always the priority where service and meeting are as on need based. Where as young and technology driven clients and wel come to our office as a best client as they are ready to accept new investment avenues. Apart from the traditional investment options. We communicate with them on Whats App and FB only.
ES: Can you share any incident/event which has had a lasting impact on you or your business as a financial advisor ??
Answer: Just after starting business of mutual funds in 2005 , Reliance has launched NFO of RELIANCE NATURAL RESOURCE and I was told to give at least 5 to 10 applications of 10000 each. We did NFO Client Meeting They also were ready to do client meet we invited 125 clients and to my surprise 300 clients visited the meet….My ultimate advice to client on that day was to forget this investments for 10 years .. People were so attracted about equity that they invested 88 lacs in less than 15 days of time.. today I could not believe how we collected such huge cash…Taken Demand Drafts…Filled the forms and every thing got right for me but market went down by more the 50 % and 88lacs was reduced by 50 lacs in 2 years time….my advice work wonders when after 10 years clients has not booked loss…..but less returns…..but experience was terrific…
After completing CFP ,my approach towards investments changed drastically from selling products to Goal Based Investing. After advising clients about financial planning and CFP degree , clients see me with different angle with confidence and clients has started referring ……
ES: How do you see the future of financial advisory in India ??
Answer: In india we see tremendous business opportunity as clients has no knowledge about products , needs , goals and taxation… we see huge opportunity in next 10 to 15 years despite large changes in regulation and industry we are confident of accumulating AUM of 300 crores and above in next 10 years..
ES:How much importance do you give to Asset Allocation & Risk Profiling while offering solutions to clients' needs?
Answer: Asset allocation is a key to survival and at every financial year your investments are to be reviewed and assette allocation in Debt… Equity ….Gold and Real estate and cash to be done… this asset allocation will make goals more easy and effective…
ES: Winning the trust of a Client is not an easy task. How do you think you can win the trust of your Clients?
Answer: Market is full of TRUST DEFICIT and what is necessary to grow business is TRUST. I have created since 1987… in our electronics business I could not earn money but I have clients who has trust & Faith in me…..they invest in me( trust). After investments is over customer say that in have not invested in hdfc or reliance but I have invested in YOU…this is trust… Now a days I take utmost care to maintain the level of trust ,faith and respect which I have earned in last 25 years..
ES: What suggestion / advice would you like to give to new Partners who have not yet established themselves in the business?
Answer: In this profession to become successful for anyone the fundamental requirement is that one must have a courage to stay at least min for 10 years. Take domain expertise, use technology, build trust of clients by giving them your 100% and Success is Yours !
ES: Can you please share your short term and long term targets for your business.
Answer: Short term target is to build AUM of 100 Crs by 2020 and live SIP of 1 Crs. Long term goal is to retire in the next 10 years with AUM of 250 Crs and not do any new business, and give only advisory consultancy to my clients.