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Set client targets on number of units to accumulateRoopa Venkatakrishnan, Mumbai

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Key Take-Aways
  • 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

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Comments Posted
ANJALI saigal ARN NO :10308 Madhubani, 21 Apr 2019

Good thinking

Rajarao ARN NO :Kautilya Jalundhar, 19 Apr 2019

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.

Praful modha ARN NO :33545 Porbandar, 18 Apr 2019

Its a good thoughts

RAGHUNATHAN C G ARN NO :1257 Trivandrum , 18 Apr 2019

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.

Sachin Shukla ARN NO :ARN-130556 Patiala ., 18 Apr 2019

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 .

Rajesh Tatia ARN NO :4874 Jodhpur, 18 Apr 2019

Good Thoughts We all ready doing this

Sanjeev Patil ARN NO :ARN - 84616 Kolhapur, 18 Apr 2019

Weldon madam , great idea for Distributors

Prabhakar Bembalgi ARN NO :85069 Hubli Karnataka, 18 Apr 2019

Great. A new concept of accumulated units is the Crux of long term investment based on goals.


Good an eye opener

R SRINIVASAN ARN NO :5365 Coimbatore, 18 Apr 2019

It is true. SIP is for long term investment, more than 10 years and not for short term. Thank you.

Prabin Agarwal ARN NO :41541 Siliguri, 18 Apr 2019

Simple and effective advice, focus on number of units accumulated will definitely help to reduce termination of SIPs

Vijay Rana ARN NO :ARN NO 92017 Amritsar , 18 Apr 2019

Very thoughtful and a different angle for long term. Thanks for sharing....

Chandramohan S Parab ARN NO :76869 Kolhapur, 18 Apr 2019

Excellent. Great. Needed information to investors who get panic. Thanks

Subramanian ARN NO :113075 Madurai, 18 Apr 2019

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

Chandrashekhar B Metikel ARN NO :91485 Ahmedabad, 18 Apr 2019

Great.....great... Innovative ideas to increase our business.

ashish ARN NO :81 new delhi, 18 Apr 2019

Awesome insights, Roopa is truly an equity rock star whose conviction in the Indian long term story is infectious.

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