Need based selling..

You often hear people telling you that they do NEED BASED SELLING and nothing else. Well, well.

I have always found this amusing and have wondered ‘whose need’ – and mostly been unable to answer this. So these doubts lingered…

  • does a bank sell more of one fund BECAUSE they have a good banking relationship with THAT fund house?
  • if a MF is using a bank for collecting its aum and parking its funds, will there be a bias?
  • what if a bank acts as a Custodian to a fund house..will it oblige?
  • Will a bank do more sales of a fund and then woo it for custodian services?
  • what if a fund house has one particular bank for its business needs – ifa commissions, salaries,etc.

However, none of these really could be answered except by the bank or maybe by the regulator. In most Indian BFSI groups there is one satrap who is (for want of a better word) the local goonda who decides what the group should do. The bank is largely the distributor (aka wealth manager, etc.).

So what if the satrap says “hello bank I need to beef up the aum of the fund and of course the insurance get going”. Fair enough, we all live for our shareholders (we use a word called stake holder, but I am old fashioned) we will do what is good for the group. Client? OmG gimme a break.

The newest animal in the market is of course the unbiased, washed in dettol, pure white RIA. To think that an RIA is not influenced with trips to Bahamas or ‘educational 12 day trip’ to IIM is something that I refuse to accept or believe. I see 2/3 industries very closely – I refuse to think that there is no bias.

read this nice stuff…from a guy who calls himself mf was forwarded by another MF veteran… 


Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Leave a Reply

This blog is kept spam free by WP-SpamFree.