{"id":6209,"date":"2020-07-20T09:15:27","date_gmt":"2020-07-20T03:45:27","guid":{"rendered":"http:\/\/bltpindia.com\/wordpress\/?p=6209"},"modified":"2020-07-20T01:31:26","modified_gmt":"2020-07-19T20:01:26","slug":"interesting-case-of-behavior-management","status":"publish","type":"post","link":"https:\/\/bltpindia.com\/wordpress\/index.php\/2020\/07\/20\/interesting-case-of-behavior-management\/","title":{"rendered":"Interesting case of Behavior Management"},"content":{"rendered":"

Few days back I met One of my MFD client but he was disturb due to his clients behavior. According to him he tried\u00a0 to “Manage Investor Behavior”<\/strong><\/span> and also educate the investor that “Downfall is temporary Growth is permanent” <\/strong><\/span>also tell him “DO not convert your Notional Loss in to Real Loss” <\/strong>but at the end investor has redeemed huge amount of his investment with losses. <\/span><\/span><\/span><\/p>\n

I simply ask to MFD “The money investor has lost was their own the decision taken was also his own, you have done your job properly by informing him all the aspects of the market and would be the results. After all he is the owner of the money why are you worrying?”\u00a0<\/span><\/p>\n

MFD surprisingly with anger ask why shouldn’t I?<\/strong><\/span> My AUM is reduced and my trail will be reduced. My entire office expenditure was managed by the trail income which i was getting from that investors investment.<\/p>\n

MFD replied “My income is reduced that is why i got panic.” I tell him “While disruption your AUM gets reduced and your income is also reduced when market get recovered your AUM will also increased to older level.” MFD reply “Till that how can I manage?”<\/p>\n

I ask MFD “Now tell me what should I do to manage your Behavior?”<\/strong><\/span><\/p>\n

MFD can’t understand my question and reply “What is wrong there in my behavior it is obvious that the person whose money gets erodes will get panic and anger”<\/p>\n

Then I simply tell him “Now you are on the right track, when it comes to you. P<\/span><\/span>ut your self in place of your Investor and myself in place of your self and check conversation between us, you will realised why your client behave like that.” and I stopped and walked out after some other talks.<\/p>\n

Until we find the reason, how can we solve the problem.<\/strong><\/span><\/p>\n

Managing behavior doesn’t comes in picture at the time of disruption only it should be there while approaching a new prospective client. Prevention is always better than cure<\/p>\n

Change in the client’s behavior is mainly related to:<\/strong><\/span><\/p>\n