Mr. Manish Rastogi, Kanpur
Manish from Kanpur had a dream to become Chartered Accountant, finally became a Financial Adviser. From childhood only he has an inner desire to do something on his own. That inner desire and conviction in equity asset class made him to start Stock Broking business after sudden death of his father. Later he forayed into MF business in 2007 after his meeting with Mr. Vivek Kumar from NJ. Manish believes that NJ India is a Lucky charm for him as he experienced an outstanding growth in his professional and personal life after he joined NJ. He believes that trust and transparency are much needed elements to build a financial advisory business and his 3C principle makes him different and ahead of other IFAs.
Team e-Saathi takes pride to present a short story of Mr. Manish Rastogi in his own words with our readers.
Before He Joined As An NJ Wealth Partner
The Beginning:
After completing graduation I made up my mind to become a Chartered Accountant. In a race to become a CA, I successfully passed an intermediated exam but was not able to appeared for final exam due to sudden death of father. Although there was no such emergency to take a job or to start a business after death of father, the passion of ”kuchh to karana hai jindagi me” never made me to sit quiet. As was a commerce graduate had a working knowledge and establishing a stock broking business requires less capital investment attracted me to start stock broking business.Finally I took franchise of one of the leading stock broker of India.
The business was going well, meanwhile one of my friend suggested me to take an LIC agency. On his recommendation I took LIC agency thinking that it will allow me to engage with existing clients, will be able to explored Insurance business and also a chance to earn more money. It was quite exciting, Today I am running my LIC business successfully. But stock broking business never gave me a level of satisfaction. I always wanted to see a smile of satisfaction on each of my clients' face, wanted to see all my clients wealthy. Somehow stock broking never bring that smile on my face and face of my clients and that always made me to think to look for other business. Meanwhile one of my friend who has already put his hands on selling MF, asked me to take AMFI exam. I hesitated for it & not convinced to take an AMFI but his one sentence forced me to think on it. He told me “ARN certify hoja jindagi me kabhi kam aayega“. Same as the case with LIC this time also with recommendation of friend I decided to appear for AMFI Exam and I cleared it. However, it was a nightmare for me to sell MF due to less understanding, less product knowledge, less support and also very little awareness among investors about MF.
The Defining Moment:
One day I visited my friend’s office. It was just a casual meet like we always have with friends, he was also a stock broker. When I entered into his office,I saw that he was chatting with one young guy who seems to be very confident and enthusiastic while explaining the subject they were discussing on. Interestingly, I started hearing their conversation without disturbing them. Within few minutes I got an understanding that he is explaining about a Mutual Fund Product and a platform that provides a comprehensive supports to IFAs to sell Mutual Fund. In between their discussion I asked few questions and again started hearing them. Now the interesting part of their conversation came when that person started giving explanation on Trail Income Model that MF offers to IFA to earn revenue. The concept of trail income model touched me.(It was easy to understand as already had familiarity with revenue model that LIC offers). As already had an ARN, I started thinking to get associated with this platform. On completion of discussion and getting understanding about the NJ Platform I decided to join as a Partner.
Friends, a young gentleman who inspired me, convinced me to join NJ “vo aur koi nahi lekin hamare Vivek Kumar the“. I always cherish that moment and a meeting with him. Support I received from him was outstanding from every aspect of business and even today when there is a requirement we go together to meet my clients.
Employees like Vivek Kumar & Bipin Singh are really a true wealth of NJ !
After Joined As An NJ Wealth Partner
A Business Journey:
- Initial Days:
Frankly Speaking, a passion, conviction and optimism in me and about business never gave me a feeling of difficulty in establishing the business. Generally financial advisory business takes its own sweet time to go into full swing but existing client base of LIC helped me to stay with MF. So it was not so cumbersome for me to pass the initial phase of business establishment. However, acquiring a new customer in those days was bit challenging due to less awareness of the product and lack of financial literacy. - Dealing with clients:
A known practice among IFAs, I also started doing investors meet to acquire new clients by presenting them the wealth creation opportunity through investment in Mutual Fund. As already shared, I had an HNI client base that I built with my LIC agency helped me to establish Mutual Fund business. But I never tried to leverage client base of stock broking business. In initial days mouth to mouth publicity - a reference of new prospect by existing clients who had faith in me provided with an opportunity to build new client base for MF. Even today reference remains the main source for me that always introduced me with new clients. Thanks to all my clients!- Trust. The trust is an important element that plays a big role in this business and I believe in winning the trust of clients by providing them the best in class services with transparent business approach. Winning someone's trust & trusting someone is always a challenge for everyone and when there is matter of investing it becomes a bit more difficult.
- Transparency. The other parameter is transparency that you have to show while dealing with your clients – a transparent business approach is also a success mantra for me. In a very first meeting with investors, somewhere I feel that it would be difficult to go ahead in building long lasting relationship then I stop myself to go ahead with them even though it could provide me a lucrative opportunity to make more money. I believe that a prospective investor should have a bit of trust in me especially when someone has recommended me. It is well understood that in just couple of meetings nobody would start trusting you but if overall mindset and approach of the investors does not suits me I hesitate to go ahead with them.
- Investment Management Approach:
As far as investment approach is concerns, I prefer to understand the needs of a client and provid them need based and goal based advice. Getting detailed understanding of the clients financial situation and aspiration is vital for me.Explaining MF product is the second most important step I take. To make them understand all about Mutual Fund is also a critical part, I explain them about pros and cons of investment in Mutual Fund and how it provides an opportunity to build wealth, to achieve life goals and fulfill other life aspirations.
- Goal based Planning !
As said earlier after getting all required details and explaining about MF, I used to present them the all time best presentation provided by NJ – The NJ GAP. With this presentation I do explain them why to have financial goals and importance of it to achieve financial nirvana. While building the goal base portfolio I do consider the Risk Appetite of the investor and also where ever it requires to club Insurance. I suggest them with Health Insurance and/or Term Insurance in most of the cases as per requirement.
I believe that “There should not be any investment till you have a clear cut financial Goal”. On the part of communication, I always try to provide quality services to my client such as sending Monthly valuation report , explaining client desk services, regular meeting with them, portfolio reviews and an extra care when there is a case of redemption.
- SIP That Speaks !
As convinced with investment in equity asset class and a specially investment through SIP in Equity Fund, I pitch SIP to every prospects I meet and urge them to start with it once they understand the concept of SIP and get convinced with it. But in case anyone left with any doubt in their mind (which generally happens with the investors who does investment first time into MF) or finds any reservation for investing through SIP or in MF then I recommend my clients to start with investment in debt funds and once they find it comfortable with investing in MF ask them to go with equity funds as per need.Would like to share with readers of e-Saathi that I made all my equity AUM through SIP.
- Let the trust factor established !
Trust factor is the core and heart in our profession of the financial advisory. Winning the trust of clients and my trust on them - with respect to their mindset is critical for me. We know well that Trust never comes all of a sudden when there is a matter of money. A proper guidance & understanding while building their investment portfolios, a timely review of their portfolios and commitment to provide best in class services to my clients are the trust building factors i always bank on.
The 3Cs: I personally believe that there are 3 basic pillars that helped my business to grow into manifold:
- Conviction:
Without having strong conviction in Equity asset class and in Mutual Fund for Long term wealth creation, it would be difficult for me to guide & convince all my clients. As I already said trust is a vital for me and also for the business, from very first meeting I explain pros and cons of investment in Mutual Fund and also make them convince by explaining the risk associated with it and the underlying wealth creation opportunity. Let me tell you its The Conviction and Confidence of clients eventually only that eventually results into long lasting relationship.
Let me put in this way as far as conviction in business is concerns, If Standard of Living of an IFA has not been improved since the time they have started their business then there is no right for them to be in the business. It means they lack with the required conviction with what they are doing, the product they are selling and the product they are advising hence they should stop doing business. My question is: Without having conviction in the business how one can continu with it ? So conviction is the first pillar to build financial advisory business.
- Communication:
I strongly believe that communication plays the most important role in our profession, That’s why I organize client meet on regular basis, carry out other activities to make them aware and give updates on products & services and take care to be in touch with clients at every stage of investment process starting from first meeting.I explain them the usage & importance of Client desk and help them to make it accessible to them. Ask them to enter their other investment details to have a overall view of their investments which might have spread across the various products and different asset classes. Sharing with them MCS Images-Videos & other marketing material which provides product insight and update, regular meeting with them and review of their portfolio is a part of my business practice.
- Commitment:
I am always committed to provide best in class services to all my clients. And always ensure that there would never be a scope of miscommunication and misunderstanding between me and my clients that may result into a broken trust.Would like to share one experience of my life that clearly demonstrates application of these 3Cs.
2007,2008: The Years of an Indian Equity Market:
A period of an Indian Equity Market that everyone wants to forget and never want to experience it again. This time period thought a big lesson to all equity lovers.
Remembering those days ..
The so called Bull Run of an Indian equity market suddenly ended, that made everyone fear to deal with stock say it’s an equity investor, a stock broker, IFA or any entity who has invested their money or advised someone for investment in equity or someone has managed to bring money from investors into equity market either through Direct Equity route or through MF route.
I had witnessed a mark to market loss in the range of 40-60% in my investor’s portfolio. Investment of Rs. 1 Lac went down to a valuation of Rs.60K . No one was able to justify what happened to their investment and why it has happened. This was the time when – A phase of Bull Run before this burst made people to invest heavily without understanding the underling risk of equity, a practice of miss selling and providing misleading information has put all investors at a fix. A greed of investors to make a big money in short time made every investor to learn a lifetime lesson. I still remember, advisers,stock brokers etc. all have started avoiding phone calls from their investors, phone calls from investors used to went unanswered and people even chose to change their contact numbers. Everyone wanted to come out from market by redeeming all their investments and even people started asking to stop their SIPs though they had conviction in the concept.
But I took different path and decided to be with my clients. I started meeting each of my clients, make them understand the situation, explain them concept of long term wealth creation through Equity and decided to be in touch with them. I gave all efforts from my side to make them understand to stay invested and if required advised for changes in asset allocation in their portfolio. Tried to communicate the conviction to them again and again. “Main ne bahot mehnat ki hai use time pe”:) But hard work, faith of clients and the market all rewarded me at the end.
Do you know the out come of all these efforts ? The faith of my clients in me made it possible that not a single SIP was stopped from them though there was no new lump sum investment. You can imagine the valuation of such SIPs which remain continued from that time period.
Answers of below 3 questions will make you understand the importance of these 3Cs.
- Would this have been possible if I did not had conviction in my business and the product that I am selling ? Answer is NO.
- Would this have been possible If I had stayed away from investors and did not face or did not go and communicate with them ? Answer is NO.
- Would this have been possible if I did not had that commitment level to make them understand to stay invested ? Answer is No.
So would like to advice all new NJ partners that please implement these 3c in your business practice.
Sharing with readers, the target I set for coming 2 years is to reach at Rs. 100 Cr. AUM mark.
In the end would like to thank Team e-Saathi for providing with me an opportunity to share my views and experience with other partners!
Thanks and all the best!
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