Sam Koshi

05 Feb Sam Koshi

Sam Koshy is one of the most respected IFAs of our country. He lives in Kerala and is a key participant in all national level IFA forums. Today he will share a key strategy to handle the most common objection faced by an IFA which is,” I have burnt my fingers in the past so why should I invest in a mutual fund now?” Let’s read what Mr Koshy has to share. Believe me these are words of wisdom that no training programme will present to you. Sheer words of wisdom drawn from experience.

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I was attending a Mutual Fund session at Calicut yesterday for MF advisors where Objection handling was my presentation. Many were interested in talking about the impact of budget in common man’s lives and their own businesses as budget is the hot topic during that point of time.

Advisors of almost all financial products were there in the audience. Various objections normally investors raise at the time of approaching him/her was discussed. Time allotted for me was minuscule when compared to the time needed to handle the super big point of objection handling . Many requested to join for a bigger session later and I agreed.

I like to make here a note on an objection many MF Advisors face during the course of handling a client.

“Some years back I lost my money by investing in MFs or share markets. Why should I experience it again ?”

Or

“My friend have bitter experience in equity investing. Why should I be too dragged to experience it ?”

We need to ask the investor about his past bad experience . If he agrees to share, study it and present the below point to him/her.

Sir/Madam
Please note that there exist different category of funds which we should be aware of. If I was asked to give you a solution , I would have given you a combination of 3 or 4 schemes. Equity MF investments are meant for long term like 10,15,20 & more years. If you invest for long tenures you will create unimaginable wealth on the go. I assume that earlier you’ve invested in equity and withdrawn your money in a short period like below 3 years and especially during a panic situation in the market . Please note that if you invested in a combination of diversified equity funds of my choice you would have made an average of 20% tax free return for a 15 year tenure. Please see this chart, sir /Madam**. If you wanted to invest for a 5-10 years tenure please join our balanced funds combination and a comparatively higher tax free return than FDs.
Please see the below chart.***

Foreign Institutional Investors invest in India and routes tax free dividends from Indian companies’ shares . Grab this opportunity to invest in a portion of those tax free income which is your right as a citizen , as an investor.

All the best. Thank you.

Sam Koshy,
MF Consultant,
KOLLAM, KERALA.