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Mutual fund advisors phone, email, video call... try everything to calm investors

Mutual fund advisors are trying their best to reach out to investors to educate them about the markets and convince them to continue with their investment to meet their various financial goals.

, ET Online|
Last Updated: Mar 31, 2020, 12.04 PM IST
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The Covid-19 pandemic and the stock market mayhem that followed have erased gains of several years in many mutual fund portfolios. Mutual fund advisors are trying their best to reach out to investors to educate them about the markets and convince them to continue with their investment to meet their various financial goals.

Some mutual fund advisors have been calling up their clients to ask them to stay calm. Many mutual fund advisors send regular emails with portfolio returns and performance to their clients, explaining the whats and hows in the market. Advisors say that since they started communicating often, the number of anxious calls has dropped significantly.

“I am personally calling up my clients and sending mailers. Calling investors who need to rebalance their portfolios is a good way of knowing what they think about the present situation ,” says Gaurav Monga, Director, PxG Consultants, a wealth management firm based in Delhi. "In the last couple of days, I called up some clients and advised them to add allocation to equities as their equity allocation has gone down in the recent market fall,"adds Monga.

Monga says he insists on calling clients personally because he fears that many investors might jumpt the gun if he speaks about rebalancing and tactic al allocations in an email. "All advice is not meant for all investors. Over an email I am sending general market information and fundamentals to stick to,” says Gaurav Monga.

Some financial planners and mutual fund advisors are also using video conferencing as a tool to do meetings with clients. Dilshad Billimoria, Founder, Dilzer Consultants, an advisory firm based in Bangalore, says she is using this time to discuss rebalancing and reviewing portfolios. “Generally , investors prefer to do the review exercise at the end of the financial year or the calendar year, but many are either busy with holidays or work. We are utilising this time, when investors are actually focusing well on these issues and giving time for meetings,” says Dilshad Billimoria.

Mutual fund advisors are making it a point that whenever the market goes up or down significantly, they have a chat with their clients. Rushabh Desai, an independent Financial Planner based in Mumbai, says that he tries to talk the investor through both “greed and fear”.

“At this point I am telling my clients to focus on two things. One, asset allocation. Two, patience, this is for investors who have already deployed monies. For investors who have investable surplus amount, I am suggesting to spread their money over two to three months as this is an extraordinary opportunity to generate higher alpha. However, I strictly don’t encourage adventurous behaviour in such times. So, I do tell that to my clients as well,” says Rushabh Desai.

These advisors also say that they have been available on whatsapp chats for investors who get too anxious and want to talk at any point. There are whatsapp groups that these advisors manage where they post advice on how to keep calm and not make mistakes at this point. “Apart from phone calls and mails, I am always available on whatsapp. I have told my clients this. They can message whenever they want. This is a difficult time for all of us and these measures are being taken to tide through this with ease,” says Gaurav Monga.


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