A Mechanical Engineer, Baroda based adviser Chirag Shah worked for a chemical factory for seven years before striking out on his own.
A family member who was into distribution of initial public offerings, or IPOs, encouraged Chirag to pursue his entrepreneurial dreams. In 1990, he became a sub-broker to Mumbai based adviser Merchant’s (Uday Merchant & Piyush Desai) broking firm. As a sub-broker, he has participated in IPOs of leading firms like ICICI Bank, State Bank of India and Indian Petrochemicals Corporation Limited.
Manan Shah (L) with Chirag Shah (R)
In his career spanning over three decades, Chirag has seen it all. From Harshad Mehta/Ketan Parekh scams, Asian crisis to the 2008 market crash, Chirag has handled clients during every ups and downs. No wonder none of his clients have left him so far. His effort was recognized when he won the CNBC Optimix Best Financial Adviser of the Town Award in 2008.
Upgrading skills
To stay on top of his game, Chirag constantly upgrades his advisory acumen by taking up industry certifications and attends most trainings held by fund houses. He pursued AMFI examination when it was not even mandatory. Chirag makes sure he pursues every industry course relevant to his practice. Further, he makes it a point to meet the fund managers of his recommended schemes twice a year to understand how they are running the portfolio. This helps him understand fund manager’s philosophy and communicate the same with clients.
Word of mouth
Chirag has not advertised or marketed his business to acquire clients. Instead, he believes in building a personal connect with prospects. Most of his clients have come through referrals but now he is entering in to aggressive mode to acquire new clients. Chirag believes that quick turnaround in responding to client queries and communicating with investors in their language has helped him win their trust. He never uses mutual fund jargon during his client interactions.
Further, Chirag keeps in touch with clients every day. “I have been sending motivational messages every morning to my network, including clients. Earlier, I used to send text messages and now have starting using WhatsApp. None of my messages are repeated. I make sure I send one message to clients every morning even when I’m out of the town,” says Chirag.
Chirag is now adopting digital strategies to keep pace with clients evolving tastes. His son Manan has started taking an active role in preparing the practice for new challenges and opportunities. They are currently revamping their website and working on developing an app which will provide seamless experience to clients.
Tapping retail
Though majority of his 200 clientele are high net worth individuals, he is now looking to tap retail. A chance meeting with Navi Mumbai based distributor Sanjay Khatri made him realize the importance of building a retail systematic investment plan, or SIP, book. “I look up to Sanjay. He is a source of encouragement for us. He gave me invaluable tips on building my SIP book,” says Chirag. After implementing Sanjay’s ideas, his firm’s SIP book has increased from Rs 5 lakh Rs 45 lakh in a few years.
Prospecting through Morningstar Advisor Workstation
He actively uses Morningstar Advisor Workstation while prospecting and servicing his existing clients. “Just like a doctor evaluates your health with tests and prescribes medication, AWS helps me evaluate prospects existing portfolio and make sound recommendations. I frequently use the hypothetical tool to compare two products (stock versus mutual fund, FD versus debt fund) to make a case for mutual funds. Prospects as well as clients are impressed with the quality of reports. Using AWS has been helping me convert clients faster,” explains Chirag. Chirag says that AWS has helped him get business worth five crore in the past six months!
Chirag has a team of five who operate from his Baroda office. His firm manages assets under advisory worth Rs 125 crore in mutual funds, majority of which is in equity.
When he is not advising clients, he likes to immerse himself in books, travel with family and catch up with his old friends.
