As an RM, our primary objective is to serve clients in the best possible way i.e.

give them products as per

their risk appetite which in turn will help them meet their financial goals.

Additionally, we are also expected to bring some inflows to meet our targets. To achieve this we should
have a fair understanding of the clients’ income, expenses & assets, liabilities, etc. We might not be able
to gather all these data points in the first conversation, but we can strive to gather it over a period of
time. Some clients might not be ok in sharing all this information, in which case we shall not push them
hard. However, it's worth mentioning the importance of this activity: ‘the more we know about our
clients and their finances, the better we will be able to serve them’.

Would also request to fill the Finedge data sheet immediately after the client conversation, reason being
if the client reveals some information during the conversation, which if documented can help us in the
future. Ex: client invests 10k in MF, 20k in FD and incurs a monthly expenditure of 50k. You should try
understanding from the client, if after doing all these investments and expenses, he is left with some
amount or not? If he says he is left with another 20k pm which lies in his bank account, you have an idea
of his income:

Income= Expenses+Investments

In finedge data sheet, the first table talks about the clients’ personal info plus his monthly income,
expenses and investments.
If the client is an existing customer of Finedge, pls prefill his SIP with us in row 7.

Be careful about not taking the same information from clients time and again, hence documenting the
conversation is quintessential.

In the first table, we try to have information on the clients’ investments outside Finedge, reason being
once we have a good rapport with them, we can ask them to do those investments through us.

In this table, we insert all data on a monthly basis ie. if we have the annual data from clients, we can
divide that by 12 to have the monthly data. Similarly, if we have the quarterly data then we can divide by
3 to get the monthly numbers.

The second table is about total assets:

Again here we are taking both: the investments with and outside Finedge. Stock and equity portfolio is
the total investments in direct stocks. Please note we got to note the current value of investments and
not the initial investments. That is if a client invested 30 lakhs in mutual funds 5 years back which has
now become 35lacs, the amount to be inserted is 35 and not 30.
Once we have the data on bank balance, we can check if the client is overinvested in it. If yes and he
doesn't need the funds for immediate use, we can divert the excess amount in MFs.

We should check for EPF only with salaried employees.

Until any other small saving schemes, all investments in the table reflect financial assets. Real assets
are gold and real estate.

The primary difference between financial and real assets is financial assets can be converted to cash
quickly.

However, within financial assets EPF, PPF, and generally small saving schemes aren’t highly liquid as these
instruments usually have lock-ins. Ex: PPF has a tenure of 15 years.

Third table talks about liabilities which can be in the form of vehicle loan, home loan, personal loan, etc.

The summation of table 2 minus summation of table 3 will give us the clients net worth.

Net worth= Assets-liabilities

In the last few tables, we take data on their insurance policies.

You will find a lot of investors invested in LIC or traditional insurance policies which is a mix of
investments plus insurance.

YOUR ADVICE TO THEM SHOULD BE TO TREAT INSURANCE AND INVESTMENTS SEPARATELY.

For investments, they can do MFs, FDs, digital gold, PPF, EPF etc

And for life insurance, they should go for a term policy which provides only life cover at a very low
premium.