As an AMFI registered Mutual Fund Distributor, the process is as follows.

Risk Profiling

The starting point in our process is to help the clients understand their risk profile through answering a questionnaire and then discussions on the questions therein.

Its more than just a faceless questionnaire. It’s a simple discussion where we do more listening than talking. We work on the premise that the more detail we get in the beginning, the better our understanding of your requirements which will enable us to add genuine value going forward by giving appropriate and suitable suggestions.

Investment Execution

A clear understanding of the client’s investment objectives and risk tolerance is at the core of our investment execution process.

How could we possibly make appropriate and suitable investment suggestions to anyone without fully understanding the context? This is probably the most unglamorous stage of the process, but it may also be the most important. We educate the clients regarding the tradeoffs between risk and reward, the investment environment and the forces that may impact the clients’ investments along with adequate disclosures on market risks and costs.

After an understanding and agreement on the risk profile, mutual fund schemes are suggested to the clients along with their factsheets. The clients are also encouraged to refer to the SID/SAI/KIM of the schemes for detailed information.

The on-boarding of the clients is mostly a physical process and the future transactions these days are mostly done online through AMCs / RTAs distributor mobile app/website and it’s a hassle-free process.

Communication

Communication is a hugely important aspect of our relationship with the client

So how exactly do we interact? Clearly with such a range of different clients, communication approach also needs to be customized. Some clients want lots of interaction and some want very little. Some prefer emails and some prefer to chat on weekends. Our job is to make judgements on what level of communication you need and how best to deliver it to you. This communication can take the form of face-to-face meetings, phone calls, emails etc., all as per the client’s requirements.

Review and Monitoring

If there’s one thing we feel is vital to ensure a positive and enduring relationship, it is regular face-to-face meetings, but with clients spread over all over the globe, it now includes zoom/whatsapp calls etc. also

We aim to conduct a thorough review with our clients where we review all aspects of the portfolio performance versus objectives at time frames relevant to each individual client. We also review elements of our service promise including communication to transaction processing and portfolio reporting.

This regular review might indicate that we need to refine our investment strategy for the client. This is determined through a risk profiling again after major financial events, wherein the clients reassess their future income and capital needs, identifying changes in their risk tolerance, investment preferences or indeed market conditions.