Top 3 Selling Tools – How to sell Mutual Funds Easily

WHat an IFA (Independent Financial Advisor) Needs to Succeed in a highly competitive business of selling mutual funds

Who are IFAs

IFAs are independent Financial Advisors who advise you where to invest in Mutual products and other financial products. The nearest one comes to a Personal Wealth Manager is an IFA. They are no longer those meek individuals who wait for their turn to sell income guaranteed products. Today’s IFAs are smart authors of one’s fortune who come with a set of qualifications and degrees which they use to a good effect to devise a financial plan for you. IFAs, like personal welath managers make customized portfolios for their clients. IFAs have become very important in today’s context considering that there are more than 2000 Mutual Funds schemes in the market. Each of these schemes has a different option like Direct, Regular, Growth, etc, which makes it all very confusing to the normal investor.

For the IFA to do her job properly, she needs certain tricks and tools of the trade. There are many tools available today for IFAs. Let’s discuss a few tools that the financial advisor cannot do without.

Risk Profiling

The top tool that an IFA needs is a risk profile. One cannot stress the importance of Risk Profiling a client. Indian investors are used to getting assured returns from FDs, Post offices, KVPs and many more. Though the scene has changed considerably, it is always advisable to make a risk assessment and find out the risk profile of an investor before suggesting investment plans.  The Risk profile questionnaire would have questions ranging from age, current asset profile, the percentage of assets in fixed / variable income products. It would also include dependents profile, comfort level with market fluctuations, investment horizon, among other things. Based on this, a score will be generated which will give a broad profile of the investor . This Risk Profile will determine her / his appetite for certain class of products.


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Performance Metrics

The mutual fund’s performance mapping tools on both the buy and sell sides are broadly categorized under this heading. The IFA normally has a chart showing the top performing mutual fund products and their performance in the last 6 months, 1 year, 3 years, 5 years, etc. This comparison chart is the easiest selling tool for the IFA as it is concise and factual and catches the immediate attention of a client. The regulatory non-performance and market risks disclaimers make a way into this chart. This chart should be available for all categories of funds like Equity Funds, Debt, Balanced, Liquid etc.

The second performance chart is for investors who have already invested through the IFA. There are various programmes, websites, and apps which thoroughly analyze the performance of an investor’s portfolio on any given day. Many IFAs take it upon themselves to regularly update the clients. Clients can even have their own login id in to check their investments. The bigger IFAs mostly invest in these category of software. They now come with a plethora of features like email tools, etc.

Social Media

Social Media savvy IFAs engage via the social media to pass on relevant information, and as a client engagement tool. They can reach a number of clients simultaneously, pass on relevant information like new fund launches or market updates. These platforms like FaceBook and Twitter can also act as promotional aspects and IFAs can invest in media promotion tools to boost traffic. Even instagram can be used to post graphic data. It helps for the IFA to have a webpage as the first port of call for clients. It has other upsides like reaching out to a broader audience, including outstation and non-resident ones, with a minimum of investment.

Basic Tools for IFAs

These are the basic tools an IFA needs to acquire and keep clients. However, as every IFA knows or has been taught somewhere, integrity and keeping the client’s benefit as the ultimate goal are the best ways to succeed as an IFA in the long run.

Happy selling!