According to the International Monetary Fund, India’s growth estimate for FY21 is 1.9 per cent from earlier predicted 5.8 per cent. The market uncertainties resulted due to COVID-19 has brought about tremendous challenge for both the financial products and investors. While investors are loosing their confidence in investments products, at the same time financial institutions are looking for a way to revive investors confidence in the market, only financial advisors and mutual fund distributors can be the bridge-of-trust for both the parties.
In these fragmented markets, where person-to-person interaction are of critical importance, advisors can go where larger institutions cannot. With the number of investors rising from B30 section, the deserving credit here goes only to the distributors fraternity. Personal relationship building of distributors has long history of ensuring investors return back to the markets and don’t loose their confidence.
Trust in the market matters the most now knowing the fact that a large investors have suffered losses, also the news of 6 Debt funds winding up, gave a sudden stop to the growing needs of the investors.
In the pre-lockdown era, when physical meetings were widely practiced and appreciated by their clients, which came across as a value-added services or the length which distributors would take to get clients act on their investments. Scaling the present situation, the same role has to be modeled by adapting to digital platforms and supports to get their communication with clients on track . Given the availability of such platforms, many distributors have already embraced this new concept to get back to their work.
The present situation will stay for a some more time. However, advisors leveraging digital platforms have the opportunity today to serve the ever-growing needs of clients which are mostly lead by their sentiments and feelings. Distributors can leverage their long-standing relationship with clients to get back to investments which will be good to both the clients and the financial markets.