You would appreciate that trust is one of the most important factors\nin any relationship. Similarly, when investors approach financial advisors to\nbuild wealth and accomplish financial goals, effectively, they are looking for\na \u2018Financial Guardian\u2019, who is a symbol of Trust and Respect. <\/p>\n\n\n\n
This, in turn, empowers investors to take a calculated risk with\ntheir hard-earned money. <\/p>\n\n\n\n
The CFA Institute, the global association of investment management\nprofessionals, conducted its 4th<\/sup> global trust survey recently. The\nCFA Institute interacted with 3,525 individual investors across 15 geographies\nand 921 institutional investors. The threshold for selecting respondents was\ninvestible assets of US$ 100,000 in case of individuals and US$ 50 million for\ninstitutional investors. <\/p>\n\n\n\n In the Indian context, only HNIs could have qualified to respond to\nthe survey. That said, there is no harm in understanding survey findings even\nif you deal with retail investors. As you know, awareness among retail\ninvestors in India is growing, plus they are equally cautious about the quality\nof service. <\/p>\n\n\n\n Here\u2019s what the survey\nreveals\u2026<\/strong><\/p>\n\n\n\n If you have observed carefully, investors consider trust,\nperformance, and fees (in this order) as important factors to work with an\nadvisor and to obtain their services. <\/p>\n\n\n\n Moreover, a growing number of people are looking to take aid from\ntechnology platforms for advice, investment strategies, and to execute their\ninvestments transactions. However, very few want to run their investments on\nauto-pilot. <\/p>\n\n\n\n Considering the hierarchy of goals, investors are bound to seek\nexpert help in the future, provided they get a trustworthy advisor.<\/p>\n\n\n\n The CFA Institute argues, and rightly so, that trust has two facets:<\/p>\n\n\n\n The second part is largely a function of\ncredibility and professionalism you as a financial advisor follow. If the advisor\nis impeccable at it, willingness to trust from the investors’ side will surely\nfollow. <\/p>\n\n\n\n Do\nyour investors find you credible?<\/strong><\/p>\n\n\n\n You can\u2019t build trust in one day. You\nconstantly work towards building it over a period of time, in such a way that\nit adds to your goodwill. <\/p>\n\n\n\n Trust can only be built on the foundation of\nintegrity and perhaps, that\u2019s the way<\/strong>\nto carve a niche and grow in the investment advisory business.<\/p>\n\n\n\n \u201cTo\ngive real service you must add something which cannot be bought or measured\nwith money, and that is sincerity and integrity.\u201d \u2013 <\/em>Douglas Adams (an English writer, humourist and dramatist)<\/p>\n\n\n\n As an investment advisor, it is imperative to\ndistinguish yourself from the crowd by standing for honest and ethical advice.\nThis is because investors, in general, are fed up of the rampant mis-selling\ntactics.<\/p>\n\n\n\n The regulators are keenly protecting the\ninterest of investors, there are regulations in place of course. But being\nethical has to come from within and is much wider and deeper from the purview\nof the law.<\/p>\n\n\n\n Investors expect you to be transparent,\nfollow the best disclosure norms, hope for confidentiality, and expect valuable\nunbiased advice with superior portfolio performance. Credibility builds trust\nand performance often helps build more credibility.<\/p>\n\n\n\n So, adopt the best business practices and\nfollow high fiduciary standards. Keep engaging and communicate, with your\nclients\/investors to keep them informed on the health of their investment\nportfolio and educate them. Keep this communication very clear, effective, and\nprofessional. <\/p>\n\n\n\n Going by the survey results, specifically, the\ninvestor\u2019s preferences, as a financial advisor, you would be better off adopting\ntechnology in your advisory practice. <\/p>\n\n\n\n Some benefits of embracing\ntechnology to you and your clients\/investors are as under: <\/strong><\/p>\n\n\n\n To become more competitive and effective in\nyour advisory, you may take advantage of Certified Financial\nGuardian<\/a> (CFG) — an online platform presented by Quantum Cosmos (a Quantum\nMutual Fund partner initiative along with PersonalFN). <\/p>\n\n\n\n The CFG platform helps you upgrade your practice management skills\nand offers technological support in important areas of your financial advisory\nsuch as — analysing investors\u2019 needs, risk profile, creating an asset\nallocation, building a new portfolio, access to in-depth mutual fund research\nreports powered by PersonalFN, a mutual fund screener, mutual fund performance\ntrackers, daily market snapshot, comprehensive online portfolio reviewer, a\nhost of other online tools & calculators, downloadable investor education\nguides, infographics, gifs, a mutual news and blog section to keep you abreast,\nand much more!<\/p>\n\n\n\n Offering cost-effective\nfinancial advice<\/strong><\/p>\n\n\n\n Now that social distancing norms are likely to stay longer, you\nshould take this opportunity to conduct online meetings with your clients. <\/p>\n\n\n\n You may also want to grow your digital presence by creating social\nmedia pages of your financial advisory and interacting with potential investors\nmore often. There could be a lot of cost savings which you can pass-on to your\nclients\/investors. <\/p>\n\n\n\n Enrolling to the CFG platform also gives you\naccess to a loyalty program, under <\/strong>Jimmy \u2019s Vision Club<\/strong><\/a>\u2014a Special Partner to CEO connect platform,\nwherein you can write to Jimmy Patel, MD\n& CEO Quantum Asset Management Company, asking queries on the mutual fund\nindustry\u2019s trends, asset allocation, SEBI rules, policies, nomenclature\npertaining to mutual funds, their taxation, GST, quantum products and\ninvestment philosophy and so on.<\/p>\n\n\n\n You must\nhave also observed that investors believe it\u2019s easy for them to trust the brand\npromise than depending on a few people. This poses a big challenge for\nindividual advisors as big brands can invest in advance technologies. To be\nable to compete with them, you might want to take advantage of the CFG\nplatform. <\/p>\n\n\n\n It would\nbe worth devoting some time to fully explore the CFG platform<\/a>, as it can help you to effectively manage and\ngrow your financial advisory practice\/ mutual fund distribution business amidst\nthe COVID-19 crisis. To unlock\naccess to exclusive CFG benefits, register\nyourself today!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" You would appreciate that trust is one of the most important factors in any relationship. Similarly, when investors approach financial advisors to build wealth and accomplish financial goals, effectively, they are looking for a \u2018Financial Guardian\u2019, who is a symbol of Trust and Respect. 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