Role of Financial Service Distributors
As mutual funds have become a hot favorite among the people the role of financial distributors have become even more important to act as a link between the investors and the Asset Management Companies.
As mutual fund distributor one need to help the investor with lot of financial planning before he decide where to invest his funds. In today’s scenario in India the saving habit is ingrained in households.
However most individuals have low awareness about the investment options, rarely take an organized approach to their finances and investments and tend to get emotionally carried away by the market sentiment.
Financial markets and investment opportunities are becoming too complex for the average investors to know what to do.
With good investment advice from financial service distributors, the client can take more informed decisions and make right investments that are consistent with their goal.
Sound planning enhances the financial well being of clients and any service that makes peoples life between will always be in demand. The following are the fundamental traits of a successful financial distributor.
• Building trust with client by empathizing with them and understanding their aspirations concerns and needs good listening skills and the ability to ask right questions.
• Good knowledge of financial products and options, their risk-return profile and a strong understanding of the behavior and track record of varies investment and asset classes.
• Familiarity with taxation and estate planning issue.
• An understanding of various stages in a client’s life and wealth cycle and the asset allocations that make sense for each of these stages.
• A specific investment strategy and the progress made towards achieving these objectives.
• Clear focus on financial well being of the client rather than on the individual transactions.
• Regular contact with clients especially during the times when the client’s portfolio has declined in value and they are feeling dillusioned. This is the time to remind the clients that the only measure of a successful investment is how well it helps in achieving clients goals.
• Independent judgment and balanced thinking which is a key value that must be shared with clients when they overreact and get overly elated or dejected based on market sentiment.
Thus the scope of study includes studying the products and services offered by the financial service distributors, weather they are as per the need of investors or not, to understand their challenges of attracting a potential investors.
In ideal sense the financial planner should link his remuneration to the over all achievement of client goals, rather than relying on a fee from each transaction.
As mutual funds have become a hot favorite among the people the role of financial distributors have become even more important to act as a link between the investors and the Asset Management Companies.
As mutual fund distributor one need to help the investor with lot of financial planning before he decide where to invest his funds. In today’s scenario in India the saving habit is ingrained in households.
However most individuals have low awareness about the investment options, rarely take an organized approach to their finances and investments and tend to get emotionally carried away by the market sentiment.
Financial markets and investment opportunities are becoming too complex for the average investors to know what to do.
With good investment advice from financial service distributors, the client can take more informed decisions and make right investments that are consistent with their goal.
Sound planning enhances the financial well being of clients and any service that makes peoples life between will always be in demand. The following are the fundamental traits of a successful financial distributor.
• Building trust with client by empathizing with them and understanding their aspirations concerns and needs good listening skills and the ability to ask right questions.
• Good knowledge of financial products and options, their risk-return profile and a strong understanding of the behavior and track record of varies investment and asset classes.
• Familiarity with taxation and estate planning issue.
• An understanding of various stages in a client’s life and wealth cycle and the asset allocations that make sense for each of these stages.
• A specific investment strategy and the progress made towards achieving these objectives.
• Clear focus on financial well being of the client rather than on the individual transactions.
• Regular contact with clients especially during the times when the client’s portfolio has declined in value and they are feeling dillusioned. This is the time to remind the clients that the only measure of a successful investment is how well it helps in achieving clients goals.
• Independent judgment and balanced thinking which is a key value that must be shared with clients when they overreact and get overly elated or dejected based on market sentiment.
Thus the scope of study includes studying the products and services offered by the financial service distributors, weather they are as per the need of investors or not, to understand their challenges of attracting a potential investors.
In ideal sense the financial planner should link his remuneration to the over all achievement of client goals, rather than relying on a fee from each transaction.