Swaraj Finpro

Mutual Fund Distributor

What is the role of a mutual fund distributor in your financial journey?

Have you ever taken a New Year resolution on 31st December to become fit, quit smoking, start saving more, etc?
Of course, who doesn’t? But most of us fail to implement it.
Why? There is a potential reason behind it. We are not accountable to anyone.
In contrast, when you have someone who can help you commit to your goals say becoming fit then you have a 65% chance to achieve that goal according to a study.
The number goes to 95 when you have regular reviews/check-ins with your accountability partner.
This is the power of accountability. The concept is nothing new and can be used in other areas of life like investment.
It is evident that when an investor invests with a distributor, they invest for the long term. The industry data shows that 30% of SIP AUM in regular plans is invested for over 5 years as compared to 17% when it comes to SIP AUM in direct plans.
A distributor acts as an accountability partner for the investors who commit to achieving your goals.
Let’s understand the responsibility of a distributor in your investment journey.

Setting goals – We have been advised that having a goal is important. If you set a goal to achieve something then you are 10% more likely to complete it.

A distributor can handhold you and invest your money according to your specific goals whether going on a vacation or buying a new car.

Making a plan – Alright, once the goal is set, you need a plan to achieve it. It is like preparing a plan to reach a destination that involves selecting the right path, right vehicle, and right things.

A distributor can identify your current financial situation, make a budget, and suggest appropriate investments.

Constructing a suitable portfolio – The next step is to invest and invest in a well-rounded investment portfolio. It is like a balanced diet that should contain various assets for good returns.

Mutual fund distributors can help you choose the right proportion of equity, debt, and hybrid funds based on your risk-taking ability and investment time.

For example, if you plan to buy a car in three years, your distributor might suggest a low-risk investment with a higher allocation to debt funds to protect your capital.

On the other hand, if your goal is long-term wealth creation, they might recommend a more aggressive portfolio with a larger portion allocated to equity funds.

Periodic reviews and rebalancing – The investment journey is not a set-and-forget exercise; it requires regular monitoring and adjustments to make sure you stay on track.

A distributor can conduct periodic reviews of your portfolio and suggest changes as required.

This is similar to a car journey where you need to stop regularly to check the tire pressure and refuel.

A well-maintained car can take you to your destination safely and efficiently, just as a well-monitored portfolio can help you reach your financial goals.

Emotional support during market volatility – Investing can be a rollercoaster ride, especially during periods of market volatility. During these times, a distributor can help you stay calm and focused on your long-term goals.

For instance, during the COVID-19 pandemic, the stock market experienced significant turbulence.

A distributor could have helped investors understand that market fluctuations are a normal part of investing and encouraged them to stay invested.

So, having a trusted distributor like Swaraj Finpro, an AMFI-registered and government-approved financial services provider by your side can be the key to achieving your financial dreams.

We have helped more than 5000 clients and managing over 150 crores of assets. Contact us to get help managing your finances.

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