I have held many posts in the advisory and investment management business. The posts I have held – I continue to hold some of them – are investor, trader – position trader and day trader, value investor, deep value investor, stag, broker, primary market underwriter, research analyst, research analyst for a merchant banker, personal finance adviser, trainer, teacher, sales of financial products, – and of course a blogger.

So there has been an amazing range of positions from which I have seen the equity market, investor behavior, behavior of exchanges, baboo(n)s, promoters, merchant bankers, wealthy people, wanna be wealthy people…etc. This note is meant for the investor, broker, financial adviser and the IfA selling mutual funds…random thoughts, once again.

So based on all that let me summarize:

  • it may be luck, but one has to spend a lot of time to find a good adviser – he is worth his weight in equity 🙂
  • culturally and emotionally the adviser and the investor must be on the same page
  • most clients do not want to see comparative performance – most of us do not care a damn how our neighbor’s son performed
  • give us complete transparency, that is all
  • tell us about the process, and tell us the bad news before the world tells us – its embarrassing
  • getting /giving good advice is easy – not all of them implement it perfectly
  • financial literacy is very important – and has to start at the regulator’s office – banking, mf, or insurance.
  • write a lot about your investing experience – the best investors in the world communicate well with their investors
  • Indian fund managers are not articulate in describing their strategies. Some of them are good, of course.
  • For financial advisers managing the client is far more important than managing the client’s portfolio
  • If you cannot establish as the ‘go to’ adviser for the client, just give up the client
  • Investors have many advisers. They hear 5 of them, listen to 4 of them, understand 3, thinking of doing 2, end up doing 0.
  • Advice is not just about giving advice. Make sure that it is understood and IMPLEMENTED.
  • Clients may not understand the adviser’s language, but will not admit it.
  • Clients should have only one benchmark – meeting Goals.
  • Clients are sometimes too overwhelmed to say “I did not understand”. Ask, confirm, verify – and then trust.
  • Top advisers manage clients, the money manages itself.
  • I bought Hdfc mutual fund, FT in 2001..and I Pru in 2003/4 – and have stayed in these top few funds for 15+ years
  • To run a good restaurant, being a good cook is necessary, but not SUFFICIENT.
  • Investment managers operate in an area much smaller than Financial Planners.
  • There is a  difference between being a great investor and running a great investment firm.
  • The fact that you can manage your own money does not mean you can manage other’s money.
  • No amount of good advice or strong performance matters to the client who doesn’t implement properly
  • If you cannot make your client stay during the tough times, your advice will not matter



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