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SIPs in equity must only be set up when clients understand that these are vehicles for long term wealth creation - over a period of at least 10-15 years
It is important to set expectations right upfront. The goal should be to accumulate as many units as possible in the next 5-7 years so that these units can provide healthy returns over 10 years when markets go up
Unfortunately, many distributors and advisors continue to sell SIPs on returns - which then gets clients to focus on returns on a 1 year basis - and which leads to disappointments
Rather than focusing on SIP returns, set targets with your clients on number of units to accumulate. Set a target of say 5 lakh or 10 lakh units and track that progress instead of focusing on SIP returns in the short term
Distributors should get their reporting done in terms of units accumulated vs target rather than SIP returns on a month-on-month basis. That is what will get behaviour aligned towards long term wealth creation
Great . That means that there is an important role for the IFA. That said, every IFA has ones own creative ideas of adding value for the clients aswell as the industry( by the way all these teachings on how to do good sales for the industry.) But where is cake? Nowhere they talk about stability for the IFA in terms of revenue. If an AMC can sell directly , is it not conflict of interest that they also decide the remuneration of the distributor.
Its a good thoughts
Very true . Simple logic. When the market goes up, an increase of Rs. 1 or 2 will be reflected on whole units . If an investor holds 1 lac units, he will be benefited Rs. 1 lac by an increase of Rs. 1 in NAV. Got
this idea from ABSL recently.
Roopa Mam said it right ,Its just to give a broader vision to clients,That takes them away from market movements to keep adding and stay invested zone .
We all ready doing this
Weldon madam , great idea for Distributors
Great. A new concept of accumulated units is the Crux of long term investment based on goals.
Good an eye opener
It is true. SIP is for long term investment, more than 10 years and not for short term. Thank you.
Simple and effective advice, focus on number of units accumulated will definitely help to reduce termination of SIPs
Very thoughtful and a different angle for long term. Thanks for sharing....
Excellent. Great. Needed information to investors who get panic.
Pretty Good thought. So far i have been emphasizing them on their Goals Planned
I would take this new idea and starting implementing right from today
Great.....great... Innovative ideas to increase our business.
Awesome insights, Roopa is truly an equity rock star whose conviction in the Indian long term story is infectious.
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