In Finance there are more than one sub
sections under one word, like Banking finance, corporate finance, Accountancy,
Investment finance and so on.
Since the beginning of my professional
finance course at PG class, I was passionate to choose Investment finance over
other finance fields. It is not only about numbers and profits; it’s beyond
numbers - more I dig in more treasure I earn.
The most difficult hurdles in
investment profession are NOT technical knowledge, or valuations, or inflation &
tax adjusted returns from particular instruments. The most difficult hurdle for
an investment advisor is, How to convert her understanding about financial
markets and related products into very simple language so that client can
understand about her next investment move.
In today’s investment market I have
seen, investment advisors are not very much trustworthy for only one reason.
And the reason is that they have failed to communicate with their existing or prospectus
clients in layman language.
How can a professional advisor expect,
a client having three to four timber factories would understand that when the
interest rate goes up and market finds hard times in liquidity positions, ultra
liquid funds are going to fall – which could be used for working capital etc.
Or how can a professional advisor expect, a retired school teacher would
understand that falling rupee is good sign to add export oriented funds into a portfolio
– which could be used as monthly income from high dividends.
I sincerely believe that if we as
professionals would not adapt new ways – especially creative ways to make our
clients understand what they are investing in and why it is important. We need
to remove technical jargons and fancy talks covered with finance phrases.
I tried to come up with a story in my
blog [Why my batchmate should know this money management secret?] and tried to
explain retirement concept of Personal Finance. In one of my other blog [India needs second wind phenomena] I tried to explain inflation and debt issues with
my personal experience examples.
Talk to your client in its language.
Put it very straight and simple.
And above all, it’s time to use our
right brain. Investment is an Art.
