Mr. Arun Singh
Mumbai
Born and brought up in Mumbai, Mr. Singh has completed his B.A. in Economics and also completed his M.B.A. in Mumbai. After his education, he started looking for a job and grabbed one. He is doing well in job and suddenly the employer asked for all the employees to opt for a Compulsory Retirement Scheme (CRS). His days of struggle started after he had to opt for retirement, he tried his fortune by trying his hands into 3-4 businesses and one of them was to become an insurance advisor (LIC agency). His defining moment came when one of his friend decided to move from the India to US and he started MF Investment advisory in 2005 by becoming NJ Partner. His success lies in maintaining rapport with clients, he believes in relationship building. Being an Investment advisor he also runs an NGO to bring a change into society.
NJ E-Saathi, happy to share an unique story of Mr. Singh, who has started investment advisory with clear cut focus on SIP and today all his efforts are visible by having 2+ Cr. SIP Book.When we called Arun for asking his time of an interview, he gave a big yes and asked us to start at the same moment only and the conversation took place. (His assertiveness and tone clearly indicating that he something to share with us.)
We began with a formal introduction and then we walked through with the success story of Mr. Anil Singh.
Struggling 90’s And “Vo 2 Yaar - Motwani Sir & Anil Sir”
After completing my MBA, I started looking for job and I got it immediately (Remembering those days, he said, he never thought one day will become financial advisor). I got a job and became happy salaried employee. But God had written something else for me as far as doing job is concerned. One day we were asked to opt for CRS (Compulsory Retirement Scheme) and because of that we lost the job (technically) and that’s the end of a salaried Anil Singh.
I started looking for business opportunities to earn my bread, ventured into small businesses and touched my hands into mineral water distribution, LIC agency and some other part time stuff, and life started moving.
A Defining Moment (Meeting a stranger in BEST Bus):
I needed to visit LIC office in Borivali and for that I used to travel in BEST (The city bus service of Mumbai), while traveling meeting new people in bus was a usual situation and experience for me. On one odd day, when I was travelling from my place - Worli to Borivali and was reading a newspaper (I used to read newspaper, magazine, study material etc. in bus) one guy sitting next to me asked: are you an insurance agent? (I was reading some LIC material at that moment) and conversation started with that person. After that we had many such conversations and who knew that one day that stranger will become my best friend, family friend and eventually my GOD Father (I call him my God father). He’s none other than Mr. Motwani.
Mr. Motwani, an insurance advisor (LIC agency), was in the business since many years and friendship with him gave me many opportunities to learn and grow myself. His trust in me allowed me to conduct meetings with his clients and explaining them the insurance product.
My First time investment in Mutual Fund:
In those days, there was one more LIC colleague Late Shri Anil Tunge (Mr. Tunge was a NJ Partner at that time) who also became my close friend. Me and Mr. Tunge many time used to discuss business development related stuffs. But one day another important thing took place, (as he was an NJ Partner advise on MF investment also) he explained me Mutual Fund product and made me to invest in MF (my first investment in MF ever). Because of him I made my first investment (amounting Rs. 35,000/-) and I also made very good gain/return on that investment - within 14 months the valuation rose to Rs 46,000/-.
My first experience in MF investment and impressive gain/return made me to think about MF for investments and this is how I started liking it and I got curious about the product. This is how I learned the M of Mutual Fund.
The period: 2005-2008: In thoses days, I used to advice clients of my close friends Mr. Motwani and Mr. Tunge. Meeting new clients and advising them about investments and insurance became a very usual activity for me. (But it was very much clear between us that whatever business came from the clients I advised and convert, the business will go in their code only). This support from both of my friends and the experience of educating their investors on investment and insurance gave me an opportunity to excel in all the aspects of client management and business development. This increaseed my conviction and confidence for the investment in Mutual fund by leaps and bound.
Sharing his business Journey:
Meanwhile in 2008, Mr. Motwani has decided to shift to US and after this event, in the same year Mr. Tunge asked me to join NJ as a partner and to start my own investment advisory service. (They both have many times asked to take my own code and do business in that only but I always denied.)
On the advice of Mr. Tunge I made up my mind and gave AMFI Exam, I failed in the 1st attempt and then went for 2nd attempt. Finally I had my AMFI code. Motwani Sir transferred assets of those clients I had advised to my code, also the same thing happened with Tunge sir.
Started My Journey:
In the year 2008, I started my journey as an investment advisor in a true spirit. I started reading magazines, financial newspapers and other study material related to investments. The year 2008 is also remembered for the stock market crash in the India. Even though there was crash in the market I did not experience any pressure from my clients, because those clients were with me for long time and my education for long term investment has also helped me and my clients to stay on the course.
I believe in relationship and rapport building with my clients. (His inclination towards social side is clearly evident). The client base started increasing day by day, I used to do lot of IAP and also M to M has helped me to increasing it. Slowly and steadily increased it and today I am managing approx. 3000 investors. The majority of the clients are from police and railway. In the initial days, I focused more on retail clients and thus the retail client base is higher than the HNI base. However, a good number of HNI clients have also joined in the last 2-3 years.
The winning strategy that worked well for me to get on board so many retail clientswas explaining them the power of saving. Focusing on saving rather than showing return on their investment was important for me, because to the class of people to whom I used to pitch about investment it was difficult to get business based on the return. Explaining and convincing them to save in small amounts (a very small amount) regularly gave me big success. From day one, I have focused on SIP and advised each of my investor to have SIP and it worked well for me and today my SIP book is at Rs 2+ Cr.
I have told my team that “har roz ek SIP to lana hi hai”. Do not focus on an amount rather focus on getting the SIP.
How’s business going? What new thing is happening?
Focus on existing clients: Focus on existing clients and then on acquiring new clients.
“Bahot shukun mila hai is business main” This statement of him clearly expresses the level of satisfaction he gets in this business. His friends were part of his life changes. He gives all credit to God that he met such people.
“Sir, me thoda social hoon, business se jyada time society me jata hai” When we asked about this and tried to know what does it mean, We came to know about the other side of the Anil we came to know. Anil is running an NGO with his friend.
NGO: He is running an NGO with his friend with a rational of giving back to society. He believes that he is here only because of the society and the thought of starting an NGO came up in early days only and even though they were in struggling phase of life. I don’t believe in an ideology that one should do social work in retirement life, rather one should do it in his entire life. We publish books, arrange seminars & discussions on social issues like Bharat Jodo Abhiyan – To stop dangas among the society.
When asked how this business gives you satisfaction? Or how do you find an element of satisfaction in this business?
My clients are my strength. I can say with full conviction that
“You won’t find even 30 clients among my client base of 3000, who will say that I made any mistake while making investments decisions for them”
All are happy investors and are satisfied with their investments. There are many success stories but there are 2 which I will share with e-saathi readers.
Real Success Stories:
[1] A Police Constable: He is one of the investors that belongs to the police department. Being at lowest level of the hierarchy he gets very less salary and according to his current salary he could have received Rs 10 Lakh. But the way I planned and managed his investments, he will retire with Rs 1+ Cr. retirement corpus, in addition to the Rs 10 Lakh what he will get from his employer. Imagine the level of happiness he will have! He will be able to fulfil his and his family's aspirations after retirement.
“Making a police constable Crorepati gives you a different level of confidence and conviction into the work you are doing”.
[2] A Railway Lady: I have many clients who work in Railway same as police department. One of my client worked with the railways and I am advising her from last 10 years.
When I started advising her, 10 years were left for her retirement and today she has retired. When she retired she got Rs. 50 Lakh as a retirement corpus. She called me for the investment and we met for that purpose. After discussion with her and knowing the amount she has got, I presented the case about her investment journey with me. When I gave her an insight and understanding that she has made Rs. 45 Lakhs on an investment of just Rs. 10 Lakh in a span for 10 years she got shocked.
I still remember her face and her behaviour. She was like what I received after my service of 35 years, almost the same amount I am getting on MF Investments. She realised the there was delay in choosing MF as an investment but time gone is gone.
Our meeting ends with happy notes, she asked me for the Rs. 50 Lakh that she received as a retirement corpus for the investment and our meeting ends.
Meanwhile when we were interacting, a friend of Anil suddenly came to his office and we came to know one more story:
[3] Investment for a widow:
These are the very initial days of my independent advisory. My friend called me to meet me, I went to meet him and after formal discussion he presented me one case and asked me to manage her money and provide her investment solution.
It was a case of his friend. His friend who was working in BEST (Mumbai sub urban bus service) died due to some medical problem, because he was a driver, his pay was not enough to run the home and he has 3 children. BEST gave Rs. 6 Lakh to his family as part of the full and final settlement. But unfortunately what his wife got in her hand was just Rs 3.80 Lakh.
My friend asked me to provide her investment solution so that she can live at least some respectable life and don’t have to look for funds for her and family’s needs.
As I was new to the MF investments and taking such case into hand could backfire for me as I don’t want to play with her money, between bit of excitement and nervousness I accepted that opportunity and gave her investment advice. Today her portfolio stood at around Rs. 8 Lakh after withdrawal of Rs. 3 Lakh. The investment started in 2006 with Rs 3.80 today she is living a happy and respectful life, has managed to fund her children's education and wedding as well.
A first such incident which I will never forget and which always gives you motivation and the inner inspiration to serve the society increases day by day. Thanks to my friend.
We asked him to provide his suggestions and advice to other NJ partners and new advisors joining this industry:
For new comer: There is a good revenue in long term. Tell me, where you can get such a business which you can start without any capital investment and you can still earn good amount by doing nothing.
By saying that you can still earn good amount by doing nothing means, I mean to say, that if one has managed bring to in investment of Rs 1 Lakh in Reliance Growth or Vision fund during its inception and just by managing that corpus one would have earn a good amount as a trail.
And finally it’s all about Passion, you must be passionate about the work you are doing.
Suggestions to NJ Partners:
Go for E-Wealth A/c: E-Wealth is the only option for one to survive in coming days and is the only scalable option that exists today for the investment advisory business. I have managed to maintain the highest E-Wealth Ratio per account amount the NJ Partners. Doing this business in physical is not viable in these days, you can’t bear the cost of getting application and submission of it and other related activities. In days to come we will see that almost all types of assets will be in electronic mode. SEBI’s new circular also speaks something in this direction as physical allotment of Equity Shares will not be allowed.
I have been asked to come and share my success stories on E-Wealth Conversion many times in Mumbai but let me tell you that you have to explain the clients – the benefits of the E-W in consideration of the operation and future of it. I managed to convince almost all my existing clients and for new clients we have made a simple rule of on boarding client with E-Wealth Ac only.
The answer to all the partners who are finding it difficult to convert existing clients, the only option is to convince them.
Go For MARS: MARS is the best thing we have today in the industry. I have seen many people merely talk about the concept of asset allocation and risk based investment approach etc. but NJ has set a standard and made all such concept a reality by bringing such beautiful investment solution – NJ MARS.
For an advisor, it’s the best way to manage MF investments for any type of investor with regular re-balancing of asset allocation.
Succession planning: My son has also started helping me into this business and slowly I have started handing over to him – daily business operations and investment decisions. He is pursuing CFP and the best thing is, he is tech savvy and has more passion than me in doing business.
My clients have shelter on their head as my son will take over the bus.
My target is to reach double the AUM in 2 years and to add Rs 1 Cr SIP book in next 2 years.
Thank you NJ and thank you team e-Saathi for providing me an opportunity to share my thoughts through this platform.