11 Mar Hitesh Kakkad
Generally it is said that ‘Given a chance to work in the field you love, then you will fall in love with your work’.
In my case, I was always inclined towards technology from my childhood. But, when it came to graduating, I was not willing to study day & night and ended up completing my graduation in Commerce instead of Science.
After completing my MBA in marketing and a double MBA in Finance, I chose my career as a Financial Advisor way back in 2006
under the banner of Moneyplus Financial Services in Jalgaon.
I had combined my business along with intense use of technology & today, when I look back, I realize that I really love my work.
My wife CA Anuya Kakkad has her passion in numbers. She left Jain Irrigation Systems Ltd. in 2006 to start our firm & her experience as a Chartered Accountant has helped our clients to solve their problems in their financial journey.
Today, after almost 10 years, we have been able to cater more than 1000 families across India as well as bunch of NRI clients from around the world.
With our hard work, discipline, ethical practice & proper knowledge of products, taxation, processes, we are proud to announce that our client retention ratio is more than 98%.
The client who started with us in 2006 is still with us & satisfied.
I would like to summarise some of the points which have led to our successful practice.
- Extensive use of technology. As I said earlier, my passion lies in technology.
- Some of the unique things that we do are
- Keeping a scanned archive of each & every document
- Harnessing NSE NMF II Platform – Our 100% transactions are online on NSE Platform & this platform has been boon to us in growing our AUM
- Extensive use of CRM (Customer Relationship Management) – we have developed our own CRM where we have sort of “Kundli” of our each & every client. All our service requests are tracked for completion & it would be rare if something that client needs is pending after deadline.Converting to 100% online transaction process has saved us a lot of man hours. Earlier our team of 2 back office staff used to handle 300-400 clients. Now, since 2 years after migrating to online platform, we have 3 team members who can take care of 1500 clients & we are seeing addition of almost 30-40 new clients every month.Our annual budgeted expenditure on modernisation of technology & updating the same is always high but it is well worth the effort and expenditure
- Some of the unique things that we do are
- Ethical practice.
In our journey of 10 years, we have always kept client’s interest ahead of ours. I remember, by 2008, we started to understand about Debt products & we aggressively pushed liquid / short term debt funds when no one in our town was even thinking of debt funds since the commissions were less than equity. But, in hindsight, I feel debt has been the biggest contributor to our AUM. Even if we did not earn much commissions by debt funds we earned a lot of trust of our clients along with their satisfaction.In the same way, we have always avoided products like endowment or ULIP insurance plans, Corporate FDs, NFOs, etc. Money / Commission has always been a byproduct in our business. We try to excel in what we do.We also never like to specifically sell the funds just to earn foreign tours or any additional incentive. Our belief is, if we work well, our volumes will scale up & thereby our income would be sufficient enough to take care of our leisure tour.
- Being a Trouble shooter
Being a curious by nature, I have always wanted to know about each & everything around me. That has helped me to become a troubleshooter for my clients & friends in many other areas of life apart from financial advisory. So, even though my help may not be obligatory, but it shows my commitment & my use of skills. This has helped me gain a big amount of trust from my clients & further gain new clients.
- Educating clients
In our experience of we have realised that most of the dissatisfaction at client’s end is because of not educating the clients & selling schemes as if selling some product in super market. At some point, even we have committed this mistake. But, as we gained experience, we understood that it is totally a wrong approach. Once we started educating the clients & making them aware of how long term investing can help them achieve their goals & that they should not look towards investments in short term, it was really easy for us to retain investments. In fact, our redemption rate or sip cancellation rate is very negligible even in falling markets. This strategy has helped us in introducing new comers to mutual funds.What I would like suggesting budding IFAs is, there is really no need to poach existing investors of other IFAs. There is lot of untapped market & if you educate new comers you will keep on converting them to clients & increase your AUM.
- Best Service Standards
Now a days there is lot of ho hulla on direct plans, online platforms, robo advisory, competition among IFAs, SEBI regulations, brokerage going down, etc. Over years, I have realized that these things are going to be there. There is no use of crying & protesting. But, if you have full-fledged knowledge of your business & if you keep highest service standards, then I bet none of your clients would go to direct or to other platforms. We have never feared these challenges. In fact, such challenges have always increased our business because there is someone who has created mess of some client’s money & now that IFA has changed his business. Coming to service part, even our team members follow this rule of giving best service to our clients.
All in all, I would like to conclude that we are in one of the most noble business where we have satisfaction of doing good work & eventually seeing our clients prosper & achieve their goals.