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Say NO to unrealistic client expectationsPune Distributors & Advisors Round Table,

Key Take-Aways
  • Define what you want to do. Be prepared to lose clients if they want something going against their client profile. Client expectations should be sobered around GDP + inflation kind of number.

  • Prepare them for losses before taking their money. Showing them history and numbers of down cycles sensitizes them to risk. Have a sign off acknowledging potential risks and expectations they agree to.

  • A quartile performance over 10 years and rolling returns make for visual presentations that are easier for clients to understand and assess.

  • Clients are approaching equity due to lack of alternative investments. While not looking for excessive return, even with 10% return, they are unaware of the risks involved.

  • With clients coming out of pure fixed income investments, ask if liquidity or returns is more important. Show clients the composition of the product. Explain that asset allocation is an all weather approach.

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