‘Past performance is no guarantee of future results’ - Investing during volatile markets feels like a roller-coaster ride that never-ending. As financial advisors, investors look to us as guides to help see them through these rough times.
It is true that mutual funds are a lot different from what used to be earlier. With the best mutual funds apps for android and other financial planning software India, it is never the same. However, IFAs still continue to be the most trustworthy companion for the investors, who turn to them time and again in the journey with mutual funds.
Main Hoon Na
As cliché as it sounds, this is what an investor wants to hear precisely when trouble strikes. An advisor who has been proactive in keeping at pace with his investors and tracking his investments at regular intervals will be better equipped and updated to handle their queries in these rough times. In most cases, investors are aware that there are certain market risks involved in investments; all they need to hear is that someone is looking into it.
Avoid technical descriptions and complicated jargon that further confuse your investor, rather use simple terms to reassure the investor of the right action that must be taken. This is an ideal time to sit with the investor and reassess his goals or financial plans, understand his risk appetite, and, most importantly, his emotions that may be attached to the investments.
EI with AI
During turbulent times most investors tend to become irrational and panic, which leads to irrational decisions like sell-off in spite of a negative impact on the investment. As an advisor, one must try his best to prevent investors from making such unnecessary exists that could derail their long-term financial plans/goals. The right mix of knowledge with empathy can go a long way here.
In the End
An unbiased financial planner with asset management expertise can handle clients effortlessly even through the most turbulent of times. The key is to equip oneself with the right access to knowledge and market intelligence that enables you to advise investors logically and prudently. Besides, with the Financial planning tools in India, things will be a lot easier these days.
By Rajan Pathak, Co-Founder & MD, Fintso
Rajan is known for his in-depth insight into the financial entrepreneur’s venture with 25+ years of establishing various B2B businesses, which gives him the edge and adeptness to scale the advisory business.
As the CEO of IFAN Finserv (formerly ING), Rajan managed a team of 40+ people, created a wide network serving 1300+ Independent Financial Advisors managing assets over $500 million.