20 Mar Trust in Unit Trust
What is Unit Trust ?
Also known as Mutual Funds, Unit Amanah. It is an investment mechanism to achieve medium to long-term financial goals. Just today I met an investor who invested sometime in year 2005/2006 in our moderate Islamic fund (Dividend) and aggressive Islamic fund (small capital) – profits are 89% and 117%. Awesome kan ? (Well, don’t ask me what happened to the Unit Trust Agent)
Memang benar Unit Trust is designed for investments beyond 3 years. But don’t overlook Unit Trust potential of short-term untung. Highest I’ve seen is around 40% for 1 year investment. And 360% profit over 10 years (with Dollar Cost averaging strategies). Peliknya, most investor and some unit trust consultants “Believe” such high profits are forever and one of the best features of unit trust investment ! Come on, be real… mana ada investment yang realistically, legitimately able to generate such high returns every year ? (Investments yang ada high profit usually untuk tempoh jangkamasa yang pendek, and can be taken advantage. But perlu bertindak segera). Sebab itu, ramai investors terjebak in scheme and scams ! Sebab itu juga, ramai unit trust consultants (or rather AGENTS) sell the PROMISE of “High Returns”. Why ? Sebabnya investor tamak untung, whilst unit trust AGENTS tamak commission !
Soalnya sekarang – where is the TRUST in unit trust if each party tamak and fikir kepentingan diri sendiri. Both investor and unit trust CONSULTANT must have a win-win attitude. Sama-sama untung dan berjaya. Apa pula beza agent and consultant ? I like to believe consultants provide need-based solutions, upon diagnosing and analysing each investor’s circumstances. Thereafter, consultants provide quality and professional after-sales services with the objective of long-term relationship. Agent ? Hampeh… mata duitan, product pushing and kaki klentong.
The crux in unit trust investment or plans lies in the TRUST itself. Unit Trust Consultant transfer believe in the investment to investors. Investors will embrace the believe by putting trust in the consultant. So one party transfer believe, whilst the other party accepts the believe/faith by giving trust. So what actually are we selling ? As unit trust consultants, we sell BELIEVE in unit trust investment. That’s the product and that’s why I say, everyone can sell unit trust (with some guidance on features, financial plans off course).
A recent radio show I heard, equate TRUST like a bank account. If there’s deep trust in the account, means balance positive yang besar – its easy to drawdown and give trust to another. But what happens when there’s negative or marginal balance in your trust account. Tu yang jadi susah !
To build a relationship, requires huge, large positive balance in your Trust account. And in that Trust account, mesti ada sincerity, openness and menyeluruh. Have you had experience selling unit trust plans to a highly intelligent prospect investor ? Such investors are usually labelled as “difficult” as they may appear to be very resilient to new ideas, they are more careful, knowledgeable and resourceful.
What is the Unit Trust Consultant’s strategy here ? Approach such investor by acknowledging his/her intelligence, keep an open mind and perhaps learn from the investor. Do not try to proof you are better than them, but be a good listener. When there are issues, be empathetic (simpati & faham) and address these issues sincerely. Do not argue ! Perhaps talk less and listen more to such prospect investors.
If prospect investor have invested, do not say you have something better, but say “Great ! Lets explore and see if we can make it better”.
What about facing an investor with bad experience, whereby his trust in unit trust is misplaced ? Hmmm… memang ramai. Sebab tu tag line “Unit Trust, I don’t Trust” is common. Salah siapa ?
What is the unit trust consultant’s strategy here ? Approach the prospect (with bad unit trust or investment experience) by ACCEPTING the issue. Biar prospect lepas geram and luahkan dissatisfaction and mistrust dia. A clever unit trust consultants will accept and acknowledge the frustration. Then fikir apa yang kita nak achieve – nak investment or tak nak ? If nak investment prospect tersebut, kita perlu “Level” with investor. Ask for a second chance, the peluang to rekindle. Empathize and be sincere “I am very thankful and I understand…… you feel …… and hope that we can …….” Dont push aside the investor’s frustration.
So ingatlah kawan-kawan, TRUST in selling unit Trust is the main ingredient why investors invest with you. It is the baja for lasting and growing relationship. Off course it cannot be achieved overnite but it can start anytime – be it new or old relationships.