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What a good financial adviser must do!

By P V Subramanyam
June 13, 2015 11:59 IST
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There are many financial advisers in the world and many are wondering whether they will be replaced by an algorithm! Sure people can create software that can replace financial advisers, but certain things will keep the client with you, if you do them well:

1. Establish a great relationship: If you are the 'Go To' person for your client -- whether it is a change of job, or career guidance for their kids, or changing home... if you establish a good relationship, chances are the client will stay with you and not go dating a computer!!

2. Have the guts to be blunt: You may have enough confidence to predict the future, but do you have the guts to tell the client what can happen and what cannot? The ability to make the client understand the risk-return relationship, the fact that the next 5 years may see a sub-par equity and debt funds run.

Do you have the guts to say that the client has to increase her/his contribution?

3. These days I am seeing IFAs (Independent Financial Advisers) fit too many things because they are afraid that the client will leave. This is funny. If you are an IFA clear the air and tell the client what he can get and WHAT HE CANNOT. Just because he is paying you a fee it does not mean he owns you. BE CLEAR IN YOUR communication.

4. Communicating to each client as per his emotional, psychological understanding is a very important professional requirement. Some clients do not mind discussing their personal life in public, so be prepared to handle such stuff.

5. When a client visits too many websites, he might get a lot of impossible ideas. Be close to the client, to reality, and tell him what to read, what to believe and tell him like porn, do not build wrong expectations. It does not help in the long run.

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P V Subramanyam
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