You should filter schemes which meet the following criteria (1) Choose AMC which is a good brand, (2) Choose AMC which is big in size, (3) Look for consistent performance. 80% of your schemes selected should be based on above filter. Rest 20% you can decide on your own analysis. Also, maximum allocation should be given to large cap and diversified fund (say 60-70%), some allocation to midcap funds (20-30%) and rest to other funds. Balance funds can also be looked into. You can watch my video on ‘How to select AMCs’ here.

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For each category ( like large cap equity, midcap equity, balance, liquid, debt accrual, etc.) you should identify 2-3 schemes only.

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There are no fixed rules for booking profits. Ideally, you should book profits when clients need money in the near future or if asset allocation is to be re-aligned. Unless there is a clear roadmap of how you or the client is going to reinvest the money, there is no point in just booking profits. Booking profits and trying to buy lower is a myth. Mostly, it doesn’t happen.

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The following list can give you an idea on how to identify prospects:- – References from people you know – References from existing clients – Natural markets (friends and relatives) – Contacts from your previous work place – Contacts from your social contacts – Doing Investor awareness programs – Doing presentations for corporate employees – Members of a local club – Connecting with NRIs you know – Email marketing or cold call.

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For every 3 meetings with prospects, you should expect to make 1 new client. Thereafter, you should start asking for references. For every 2 reference you receive, you should expect to make 1 new client. Thereafter, once clients start referring new prospects on their own, you can expect to make all such references as your clients. Doing the math, if you meet around 600 prospects, you should be able to make 200 clients.

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You must use your time effectively. It’s not about how much time you work but how much productive you are. You should spend maximum time in client meetings, client reviews and making new investment proposals for them. Delegate everything else. Having an office setup will help you save time.

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Never. A client who takes a kickback will never respect you. Such clients will also not be loyal to you and always look for other agents who pay higher kickbacks. Don’t do the business the easy way. Do it the right way. Do it in a way which can be fruitful in the long run.

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My rule of 10/10 says that an IFA should meet 10 clients every week and engage in reading/learning for 10 hours every week. If you do this regularly, you will become a top IFA in a few years.

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You should carry a presentation where you can advise your clients on investment process highlighting the need for health and life insurance, mutual funds, goal based investing, SIP, STPs, liquid funds, etc. Tell them about your experience, what services your offer. You can consider Masterstroke Online Sales Presenters too.

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Value added services means providing timely portfolio statements to clients, providing excellent services within a time bound period, suggesting them goal based planning rather than selling a product, giving them other services like PPF deposit, online term insurance cover, opening NPS accounts, various paper works on their behalf and going extra mile to answer their queries.

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Mutual funds are not only related to equity markets. Tell them that around 70% of mutual fund industry AUM is in debt and only 30% is in equity. Explain them about liquid plans and debt funds.

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DIRECT is a risk in this business but risks are there in all businesses. All clients won’t go direct. Some will go because they may not be happy with your advice/service, or they have a lot of time to do it themselves, or they are knowledgeable investors. Focus on making new clients and explain them about direct and your commissions in advance. This is better rather than they coming to know about it later.

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Meet two clients everyday. Minimum 40 clients every month. Explain each client about SIPs. Have a good presentation on SIPs. Ask for reference from existing clients who are happy with SIPs. It will take time. Keep doing it. To increase AUM fast, you should consider selling STPs. It will bring you a lot of money in debt funds and clients can convert their FDs and post office savings in STPs.

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Talk about financial goals. Explain them about SIPs, STPs and liquid funds. Show them track record of mutual funds.

2

For regular business you should do the following

(1) Meet 2 clients every day, whether new of existing

(2) Sell SIPs

(3) target 200 active clients who invest every year with you.

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You need to do the following

(1) It is your responsibility to identify prospects and meet them.

(2) Use reference from existing clients, friends and relatives. You can also do investor awareness programs.

(3) It is expected that you will make a new client if you meet 3 new prospects.

So the key is to meet new prospects.

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Unless clients want regular income, you should opt for growth option. Under dividend payout option, clients lose compounding benefit and IFAs lose AUM.

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Currently, top 1% IFAs in India have over 100 crores of AUM. In future this figure will increase. So, you will plan your targets accordingly.

3

You should link SIPs to clients goal of education, marriage and retirement goals. Show historical performance and chart of how much money they can have if they continue sip for long period. You can also consider buying Masterstroke Mutual Fund Sales Presenter.

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Your relationship manager of mutual fund companies can help you. They have a lot of marketing material. You can also consider becomeing a Masterstroke Member for Online Sales Presenter.

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