my BAD?!?!?

So a client makes a notional loss of 0.26% on one of the investments I advised to him. He fails to see the 15% absolute gain on the other investment he's made from my advise. What does he do? He pooh poohs me and goes about redeeming the loss making investment & buys a ULIP!!!!

My bad... Right!

It's more frustrating to note that this ULIP sale comes from a colleague who has absolutely made sure his / her bancassurance targets are overhauled! And the client says I have failed to advise him properly. For the seasoned advisors who are reading this blog, here is the actual lowdown:

My suggestion to the client was Rs 3 Lacs each in Sundaram BNP Paribas Select Midcap Fund (investment horizon of 2 to 3 years) & ICICI Prudential Infrastructure Fund (at least one year; being a thematic fund). Needless to say, the cash component in the Sundaram Fund, albeit a cautious strategy meant a drain on the returns. The Infrastructure fund however, true to market movements, cashed in big time. Both investments were made in Mid January 2007 and the client actually thought I was not advising him properly because I wasn't churning the portfolio!!! Beat that.

Sometimes I wonder if my self righteousness is actually impeding my so called performance. But then, if I would start doing what every other unscrupulous advisor is doing today, I would soon quit this profession. I do what I do because I love advising clients on their money. Not because I want to win every other incentive contest at the risk of murdering my clients' portfolio. Its another matter if I qualify for a contest or two after I've done my duty for my client.

I really am worried how my work shapes up in the future. What I'm sure of is that I will always do whats right for my client in whatever profession I choose at whichever step in my professional life.

As for my client, I sincerely wish someone like me runs into him and tells him what a foolhardy decision he has made, not because then he will understand what I did for him was right, but so that he doesn't make such mistakes again.