Wealth-Forum e-zine

Power tools for engaging client conversations

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DSP BlackRock's Power Play tools are aimed at helping distributors build a stronger connection with potential and existing investors by framing the value of investing in an informative way.

What are some of the reasons that prevent investors from seeking equity markets? Lack of information and understanding about equity markets makes many potential investors hesitate about investing their hard earned money. The preference for FD is prevalent because they feel it is safer and secured.

What are some of the reasons that many investors don't reap the benefits? Lack of knowledge about the power of compounding and giving into panic and fear means many investors lose out from the journey. Many also don't understand the impact of inflation on their savings and so are not aware of why investments are important.

DSP BR’s Power Play tools help distributors address these questions in a simple manner through desk top and gif based tools that not take only a short time for investors to view but are easy to understand. They are great conversation starters and can be used by distributors to build on the importance of mutual fund investing. Each of these tools helps address these questions in a different format by asking potential investors to approach investing from a different perspective than what they might have had.

Birthday card is a great tool that distributors can use to not only wish investors on their birthday but also make them realise the importance of starting an investment early and staying invested for a long-term. By drawing data from the past performance of Sensex, the tool presents a figure to the investor that tells them the amount of money they’d have made if they started investing since the sensex was born in 1980. The tool in a very simple format gives investors a long-term impact of investments.

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Visiting card is a leave-behind tool that not only contains the contact details of the distributors but also gives a sense to the potential investor about the power of compounding. Many potential investors are not aware of how small, regular investments can build to become a large corpus over time. Instead, many believe that they cannot invest because they lack the huge funds to invest. By showcasing the power of compounding through this tool, distributors can explain to new investors about where to invest their assets to make the most of them even if they are just starting out with small amounts.

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DF vs FD is a tool that helps the distributors nudge their investors to make the smart switch from Fixed deposit to Debt Funds. For many investors in India, fixed deposit is the trusted investment tool of many generations. Therefore, the strong cultural preference as well as the lack of knowledge about other investment options means many investors routinely choose fixed deposits as their choice of investment. Through this tool, investors are provided with a direct comparison between fixed deposit and debt funds. The tool showcases that Debt Funds yield better returns as they are more tax efficient than FD and helps initiate conversations with investors who are quite risk averse.

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DF vs FD slider is another tool that distributors can use to highlight the opportunity of extra gain lost by investing in a traditional instrument, Fixed Deposit. By highlighting the loss, the tool reminds potential investors that even fixed deposits may have certain drawbacks. With the help of shocking figures, this tool enables the distributors to help their investors make the switch to Debt Funds.

Equity booklet covers the journey of equity funds over a period of 20 years. A lack of knowledge about the equity markets impairs many potential investors about taking a leap. The booklet covers both the negative and the positive aspects of investing in the equity markets and helps investors to gain an overview of the markets. Knowledge is power! The tool helps distributors educate investors and reach out to potential investors with the message to be “be patient” and “stay invested” and the potential returns in the long-term will be great.

Inflation booklet is getting developed as a conversation starter that enables the distributors to have a meaningful discussion with their investors about financial well-being. The tool projects the change in cost of products one uses in their everyday life (for e.g.: milk) over 3 decades. Instead of just focusing on return, the booklet challenges investors to look at the impact of inflation on their savings. By highlighting the importance of financial well-being, distributors can talk to potential investors about the various investment options available that can beat inflation.

Through these tools, distributors have a chance to engage with potential as well as existing clients and address some of the gaps that prevent many from investing in mutual funds.

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