Working in the Best Interests of Clients

Often we come across articles and blogs talking about tips and strategies on how to become a successful financial advisor. Generally such literature touches upon subjects like personality traits, improvement of communication skills, sales skills, client management, time management, expansion of product basket, getting certifications, etc. All of these, undoubtedly are at the core of financial advisory practice, however, there's one factor which remains at the center of all of the above, which largely directs the growth of the advisor, and that is, his/her clients' well being. There is a direct correlation between the Investor's prosperity and the success of the financial advisor.

So, this article concentrates on the crucial aspect of “Keeping your client at the center”. So how do you go about working in the best interest of your client to grow your business? The answer to this is simple, “It's not about your business”, This can be construed as the sole Golden Rule of Advising. Although, it is not at all wrong to think about your profits and growth, after all you are doing a business, putting in immense efforts for your advancement. However, when your business is financial advisory, your growth is a bi-product of your client's prosperity. When you are suggesting an investment to an investor, always apply the doctrine of substitution, think of it as your own investment, if you would have been in a similar situation as your client, had a similar investment horizon and goal for investing, Would you invest in the product? If yes, then only go ahead with suggesting the same to your client.

| Concentrate on what the

| client needs and not

| what you think they want

Concentrate on what the client needs and not what you think they want: Many times there is a disconnect between clients' wants and our perception of what they want. We tend to anchor on our time tested methodologies and advise our clients accordingly, but what we do not realize at times is there are no uniform investment rules, because investors prioritize their wealth creation and risk minimization needs differently. We may be fabricating our advise trying to get optimum returns for the client while keeping the risk low, considering the client's age and income demographics, however for the client wealth creation may be paramount, he may be comfortable with a certain degree of extra risk for some extra wealth. Hence, we must deal with each client with an open mind, understand his specific needs, as there is no “general” in financial advising. However, we must call for his attention if he is going either overboard or is being over conservative in assuming risk.

| Regaining the

| trust of people

| at large

Regaining the trust of people at large: Many people are possessed by a negative notion about financial planners and advisors, because of the large number of mis-selling instances happening in the country. For this reason, you may encounter people who are unable to trust you, at least initially. Breaking the notion and regaining the trust of people is a challenging task, which can only be achieved by working in the best interests of clients, and creating wealth for them. So every new client is a new opportunity to regain that trust, and strengthen the image of the overall advisor fraternity.

When the client creates wealth, and that's because of you, your business gets a chance to grow since firstly, your trail income is based on the investment value of the client; as the client's investment increases in value, your income increases. Secondly, when the client recognizes your genuineness, when they see the efforts you put for their benefit, you have won their trust, and a client for a lifetime. And lastly, the happy clients are likely refer you to their friends and acquaintances, and the best part is you do not have to work all the way from the beginning, regaining the lost trust in advisors, you have a base built, a reference attached.

At the end, working for clients' well being may not reap immediate benefits, you may have to forego your gains at times in quest to get the best for your clients. And although it may be tempting to sell, especially when you are new in the business, yet working in the best interest of the client is surely the right thing to do, and will pay off eventually.

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