The financial advisory business is going through a fundamental change in its mode of operation.Almost all financial institutions are looking for certified professionals, not the fresh graduates, for their sales vertical.The positive aspect in this move being a reduction in mis-selling & an increase in customized product selling.
This product knowledge at the time of selling is most important in case of equity selling.Investment in equity offers high return with high risk.The risk varies with customer's age, profession, dependents and investment time horizon.Now it is to be remembered that if properly tracked and rightly reshuffled, an equity portfolio can become an inheritable all rounder in your investment basket giving both capital appreciation and tax efficiency under one roof.The beauty of equity investment lies in the fact that it can enrich your portfolio by beating inflation by quite a large margin.
To increase standard of living after having a high inflation in a country like India,a exposure in equity is must for all young individuals.A middle aged person at his mid 30, can think for a equity as an investment for his retirement. A person aged anywhere between 40-50, should invest a part of his surplus to equity for his/her child's higher education & marriage.A retired person also should have a minimum exposure in shares after assuring his monthly income from other debt instruments, to take care of his vacations and other desires.But , keep in mind that this kind of long term thinking doesn't mean that you are not going to give revenue to your broker by reshuffling his equity basket on a regular basis.Obviously you will do that.
To summarize, if a professional knows the importance of equity in his customer's life and if he can deliver the same knowledge to his/her customer, then the Demat & Trading a/c opening becomes just a mere paper work which relates the client with the equity market.So it is always advisable to sell what equity can do( than selling what your broker can do), and assuring your client that you are going to help him to track his investment and to reach the target return from the investment.
No comments:
Post a Comment