Mr. Tejas Anilkumar Sheth
Vadodara
Tejas hails from a city - Vadodara - which is known for its ruler Maharaja Sayaji Rao Gaekwad. He had completed his graduation in computer science field from Vadodara. After graduation, started a business of plastics nets trading and later he decided to came into financial advisory business. In fin. Advisory he has achieved lot of success with a full support of his wife.
Today, he is managing more then 700+ clients and having MF AUA of Rs. 40+ Cr. Tejas seems to be very much confident about his business targets. For current FY he has target of achieving 50 Cr mark and has set a target of achieving 75 Cr mark in coming 5 Years.
We wish our best to Mr. Sheth and are also glad to bring this interview to our readers...
ES: Please introduce yourself and also share your business vision.
Tejas: I am in the field of financial advisory services since 2003. I became insurance adviser in 2003 and the journey began. In 2005 also started advising on the front of Investment after becoming AMFI registered MF Distributor. Today, I deal almost all products in which NJ does the business.
My Vision is to serve my clients, friends and society by helping them to realize their financial dreams.
ES: What inspired you to choose the career of a financial advisor / distributor?
Tejas: There is such inspiration but reading newspaper made me to be in this field indirectly. One day while reading newspaper I saw an advertisement of HDFC life Insurance regarding insurance agency. After discussing about it with my wife, we have decided to start the insurance agency in her name and she took a code in that company and along with her I also started financial advisor business. Then after passing of one year she took general insurance agency. In 2005 i started my mutual fund business as distributor.
In the year of 2005, one of my friend introduce to NJ and I became NJ partner. NJ Platform has helped me enormously to grow my business. Everything is taken care by NJ as it provides 360 degree supports to its Partners. Because of NJ only I am able to achieve and AUM Of 40+ Cr.
ES:Setting the financial advisory business takes some time. How did you handle the challenges on the financial front in the initial period of the business?
Tejas: It was a tough time while starting initial period of business. It was difficult because I do not posses any such education background as I am a postgraduate diploma in computer application with no background of financial market. Further, I was doing a business of trading of extruded polymer nets since 1993. My business and income was not growing in those days, So I decided to do such a business in which there is no capital requirement.
Let me tell you the fact is - My wife is my Asset. It is she because of her I am today at this stage of my life. Because of her I came into financial advisory business, her dedication and support was remarkable in difficult times in my life. For my business particularly in Insurance & MF where I am today all credit goes to her.
ES: Do you promote the idea of savings through MF SIP in your clients?
Tejas: SIP is the most powerful tool. You buy a basket of businesses through SIP and if you keep it going for over a longer term (min. 10 years) then it can create a wealth for anybody. I keep advising all my clients to have at least one SIP with an amount of Rs. 5000/- towards the goal of retirement and keep it live for at least 30 years time horizon.
ES:Client communications is an integral part of your business. Please share any best practices / services related to communications adopted by you.
Tejas: With surprise, let me tel you that i haven't done any client meet till today. In early days of business I used to send flayers in newspapers. Now a days, I am using e-mail for mass and personalized communications to my clients. I also have created by my website (www.anavifundz.com) on which i host all informations for my existing clients & prospects.
ES: How much importance do you give to Insurance in you advisory practice?
Tejas: Insurance is the most important factor considering comprehensive financial planning. I suggest only Term Plan, Mediclaim and Personal accident Policy for pure protection as per the need and insurance gap. I I also sell ULIPs with a view of long term investments. Further, i have stopped selling traditional plans like endowment, moneyback from last 5 years.
ES:How do you educate and convince your clients for mutual funds, especially the first time investors?
Tejas: There are many common things I do to educate first time investors. However, one important explanation I used to give to them, would like to share with your readers.
First time investors I always say that this is your passive business for you and along with your job you can do it. By investment through SIP and Lumpsum you do business of variety of industry. I explain them, assume that you have appointed CEO of Reliance, L& T, Infosys, TCS and HUL, Nestle, HDFC Bank etc. on salary through mutual fund for look after respective business/company. Now, all these companies would grow at 10% per annum and assume that profit could grow between 10% to 12% per annum. So with volatility of businesses over a 10 year period your mutual fund NAV with go between 12% to 14% which is a very good tax free return. You just have to invest into MF and give time to it. You don’t have to run any business, your saving through mutual fund go into different businesses and you will earn good return out of it.
ES:Your experience with NJ's technology initiatives in terms of various Desks for Clients & Partners ?
Tejas: NJ’s technology offerings have helped me very much. I only use NJ Platform for my mutual fund business. The platform for me is like a full office for me. All data of clients are on NJ Platform and my clients do love the NJ Platform.
On-line desk is excellent after including capital market segment with one used id and password for my clients, it makes life simple for me. Further, E-Wealth platform on one platform using which you can buy mutual fund, equity stocks, NPS, bonds and even a Loan products(Loan against securities). Except will writing other products are only available with very few players in the market. NJ always stay ahead of others in products basket & technology offerings.
I have already opened 119 E Wealth a/c and trying to convert all existing clients on E-Wealth A/c and will see all my clients doing online investments in very near future.
ES: Any important thought you would like to share with other partners.
Tejas: Lot many people are doing Life insurance business from which they earn 5% commission on renewal premium. If I add 1st year commission it comes to 6 to 7% annually in traditional plan for 20 year plan.
But when I see mutual fund trail at 0.5% on AUM which is huge compare to any other financial business. Because I get without collecting premium. Only I have to see that regular fund flow is coming through sip and lumpsum and control on redemptions. Mutual fund product greatest point is, It is very easy to understand for every person and entry and exit is very simple. Charges are transparent so no worry for adviser. The trail gets credited monthly even if you have not done business in that particular month.
“MUTUAL FUND HAR GHAR KE LIYE SAHI HAI”
ES: Winning the trust of a Client is not an easy task. How do you think you can win the trust of the Clients
Tejas: In this business trust is the most important part of life. I used to get business from existing clients and they refer me to their colleagues and friends. Till today I have never taken reference from anybody. I say “Laxmiji comes to only, who have trust in their adviser”.
ES: What suggestion / advice you would like to give to new Partners who have yet not established themselves in the business?
Tejas: For new partners my advise is that Mutual Fund Business has a huge potential. If we compare with the insurance adviser/agent penetration then, there are more then 25 Lakhs insurance advisers exists in the industry against 90,000 mutual fund advisers. Anybody can easily manage Rs. 10 lakhs per family in mutual fund with equity and debt funds.