What Should You Look In Your MFD?

Mutual Fund Distributor (MFD) is there to help you in managing your personal finance better. It is therefore quite an important factor that your MFD fits the bill perfectly. Here, I am assuming that you understand the need of an MFD at the first place and you are not a full-time investment expert knowing all your behavioural finance pitfalls and still being able to take unbiased financial decisions over and again. The following 6 important factors are among the top few qualities that you must expect in your MFD:

Trust and confidentiality: Your MFD must be trustable enough that you can freely discuss with him/her all your financial (and sometime non-financial) aspirations and concerns. If your MFD is referred by someone whom you know quite well – then your job becomes easier. Otherwise spend some time, do some transactions with your MFD and see how things are going. Remember, this factor outweighs every other factor.

Backed by someone: Preferably, by your MFD, you must also be introduced to a second person or an organization whom you can approach to, in absence of your MFD. This gives lots of comfort to you as you and your family are never without support, at any situation whatsoever.

Service and approachability: Most of the times your investment and insurance go smooth without any hiccups. But there are times, when you require quick help regarding financial (payment and portfolio related) or non-financial (holding pattern, nomination, change of details etc.) transactions. Your MFD, in such cases, must be contactable and forthcoming with timely solution. This can even be made way simpler with right technology platform support offered by your MFD.

Technology handholding: Your MFD must be equipped with best of technology. Be it making transactions or checking your portfolio – should be done through an easy-to-use and trustworthy technology platform. Your MFD must be well-connected with the technology service provider and the technology platform must have proper offline presence as well.

Multi-Products offering: Your MFD must also be well-connected to be able to offer multiple products based on your need and choice. The list of products can include – Mutual Funds, Insurance, Stock Broking, Fixed Deposit, Secondary Bonds, PMS, AIF, P2P Loan Product (LiquiLoans), Curated Portfolio Service (smallcase), Unlisted Equity, NPS, Sovereign Gold Bonds, Loans etc.

Always up to date: We are well aware that getting information about anything and everything is no longer an issue. But the real issue is to get exactly what you need in your own way without any noise and distraction. Here, your MFD should be able to help you if he is always up to date with products and processes.