The Idea Behind Paise-Vaise (An initiative of FinRise Investment Services)

The budget for the year 2020-21 was tabled in the parliament on 1st Feb 2020. Markets expected relief measures in the form of tax cuts, big bailouts, LTCG write off to just name a few items. But, the budget speech, though the longest in history didn't have any of the much-expected relief measures. The stock markets which are ready to fall at slightest of the news nosedived, falling almost 1,000 points, a figure that you don't see quite often. Lakhs of crores of rupees got wiped off on the day of Feb 1, 2020.

That day, investment advisors (like FinRise) got almost 3x-4x the number of calls we receive on a normal day. The content of the conversation on any other day is to enquire about the general market mood or to invest/redeem/switch money from one or more financial products. But on that specific day, we attended to agitated investors who were facing a portfolio level loss of ~2% in a single day (for an aggressive investor). Investment advisors had to talk to this set of agitated clients and soothe their nerves. Some tried to remind them of the investment horizon for which the investment has been made (5 years is the favorite), while others asked the investors to be patient as the said reaction is a knee jerk reaction and markets are going to stabilize soon. A bunch of advisors blamed it on Coronavirus in China and the impending slowdown in world trade due to the virus while a set of advisors teamed up with the clients to criticize the government of its regressive steps!

In all this cacophony we, at FinRise believed that all this is definitely a knee jerk reaction and knew that sooner or later the markets will stabilize. But, we also realized that investors, in general, are less informed about the happenings in the financial world. They tend to invest without having a knowledge of what they are putting their money in. Goal-based planning is targeted and investors do agree to stick to their goal based timelines but in periods of 1000 point fall they forget this basic principle and panic.

On the advisor side, selling is pretty easy during favorable market conditions but in tough market conditions, investor retention in itself becomes a challenge, leave alone generating new leads.

Why does this happen? Why does an investor panic during the period of fall and get ready to book losses running in thousands of Rupees even when he has the guidance of a qualified investment advisor? (we assume we are qualified 🙋) Although there are some obvious answers to this question like, not doing focused goal-based selling, not informing the client of portfolio performance, mis-selling products, etc. What we believe is the reason for this behavior is the inability of the advisor to be in constant touch with the client and not putting in efforts to impart knowledge of the financial products to the client.

Through this blog, we aim to reach out to all the people who want to know about various financial products, their features, ways to invest and a lot more that will excite them. We aim to be in constant touch with our clients through our posts. We are not going to use that high-end investment jargon and would talk about the subject that matters to the general public which is always in the search of earning some "PAISE-VAISE".

So, welcome to our initiative and be ready to be indulged in a new, desi yet impactful way of knowing about the investment products that we come across in our normal course of life. We would request you to read these short articles, share them with friends & family and finally contact us in case you would want to hop on the investment journey to earn 'PAISE-VAISE".

Meanwhile, the markets were up by around 1000 points on Feb 4 and we didn't receive any calls that day! Happy reading!

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