WF: Your new Sales Handbook is a wonderful idea, executed very well! What prompted you to put this handbook together?

Shyamali: Knowledge empowers an individual. A famous quote of Albert Einstein goes like “Everything I know is but a drop in the ocean of knowledge” underscores the fact that what we know is only a tiny bit in a vast ocean. As far as knowledge is concerned with respect to mutual fund industry, a lot has been done in the direction of investor education by the industry participants.

The distribution community has been playing an important role in raising awareness amongst investors. On this front, we believe, it would help make the conversation more meaningful if we get empirical data to reinforce our message to give the big picture. This handbook ventures into the area of financial knowledge and attempts to add another drop in the vast ocean of knowledge. We believe, this book will create an impact in easing out the complexities surrounding investing.

Click here to download your copy of HDFC Sales Handbook

WF: Can you take us through some of the salient sales ideas and pitches contained in this Handbook?

Shyamali: Sales Handbook was created with an objective to provide empirical data/solutions to the questions that every IFA or an average investor would have.

Our opening slide covers why one should consider the Mutual Fund route viz-a-viz other routes for investments and the benefits of investing in various asset classes via MF route. Many investors shy away from equities due to their volatile nature and equities, as an asset class has developed a perception of being very risky. We have tried to explain how over the long term, the predictability of returns increases and equities provide returns that are in line with the country’s nominal GDP growth.

We have also covered basic financial concepts like Power of Compounding, how inflation can act as an enemy in wealth creation and why starting early is important in creating long term wealth. The Handbook also covers a case study on how one can pay off home loan early and smartly by extending his loan term and starting an SIP of the difference amount.

The Handbook also caters to investors at different life stages; for example, we have slides that cater to millennials (Slides on Small sacrifices can make huge difference and Guidelines for New Earners), we have also covered guidelines for Married investor with Kids. For investors at the Pre-Retirement stage, along with the investment guidelines, we have also provided an illustration on how investors can plan for their retirement with a combination of SIP and SWP.

WF: While an e-version is available for download along with this interview, how can IFAs get hard copies of this Handbook?

Shyamali: IFA’s can get in touch with the nearest branch to get the hard copy of the Handbook.

Click here to download your copy of HDFC Sales Handbook

WF: Can IFAs get access to individual portions and email them to relevant customers (example – guidelines for investors in pre-retirement stage along with SWP note – for dissemination among their clients approaching retirement)?

Shyamali: The though process behind this exercise was to present all the IAP content in one handbook which can be used as a ready reference while having an investment discussion with the investor. Some of the content is already available in the form of leaflets, tent cards, etc. To cater IFAs who need individual potions, we will be releasing separate videos on various concepts explained in the Sales Handbook over the coming months.

WF: Today, some of the key client issues that IFAs face are poor returns on equity SIPs, and too much volatility in credit funds returns (which were sold as better alternatives to FDs). Which portions of this Handbook would you recommend IFAs to use in these 2 contexts?

Shyamali: We have not specifically covered the above 2 points in the Handbook. However, we will be releasing a separate analysis on SIP returns, wherein we have considered cases where the 2-year SIP return was low or negative. It will be interesting to note that for such cases the next 3-year and total 5-year SIP returns have always been positive. Thus, the key takeaway from this analysis is that investors not get swayed away by short term market movements and should remain invested for the long term to create wealth.

Although investors have turned risk averse after the recent credit events, it is important for an IFA to understand the suitability and risk appetite of the client while making an investment decision. An investor investing in credit fund should also have the risk appetite to digest the volatility from any possible downgrade.

Click here to download your copy of HDFC Sales Handbook

"The opinions expressed in this article are those of the author alone and not of HDFC AMC, and should not be regarded as investment advice. Investors should obtain their own independent advice before taking a decision to invest in any securities."

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

Share this article