R.C.Rawal | New Delhi

R C Rawal (64) is a New Delhi-based mutual fund distributor who manages investor assets worth ₹ 204 crore, catering to nearly 2,000 clients , Rawal has a monthly SIP book of ₹ 60 lakh. Making investor wealthy is his passion and he focuses on how to add value to their successful investment journey.

Life Before Distribution

A commerce graduate in 1977 and a student of LLB, Rawal pursued CA, which he finished in 1986. Post that, he joined a business group and worked as an accountant at different companies and got promoted to a Senior Vice President position. Rawal had an interest in the capital market, which is why as soon as he started earning, he started investing a certain portion of his salary in stocks. Post 2000s, he started contemplating starting some business.

Entry into Fund Distribution

Since Rawal was a long-term investor in the stock market, he had developed quite a fair understanding of the market cycles. In 2003, he decided to call it a day at his job as he desired to create wealth for investors at large. He cleared the AMFI certification and commenced into mutual fund distribution.

Initial Phase

Since he was naive in the business, client acquisition was initially a challenge. The market was in a bull run, but the subsequent crash of 2008 impacted whatever business he had done. “That was a testing time, but the best part was that I could convince many investors that the more the investments during such times, the larger the wealth creation,” he reminisces. He maintained calm with his clients and told them not to stop SIPs.

Strategy and Approach

Investments need to be long-term and goal-based, acknowledges Rawal. “Development of trust and strong relationships is the base of this business. I ensure I maintain transparency and can say no to undue expectations of investors,” says Rawal.

Regulatory Changes Make You Stronger in the Long-term

Continuous regulatory changes did not unsettle Rawal. “I was clear that when regulations are good for the industry and investors, your business will emerge stronger than before,” narrates Rawal. So, be it the entry load abolition, trail-based payout model or the direct plans, he moved ahead with a focus on his work.

Rawal considers himself a service provider. “Unless I add value to my investors, am I eligible to earn commission? No way,” pinpoints Rawal. “My growth is built in my investors’ growth. If they do good, my business would grow,” he adds. As a result, barring the few initial years, Rawal’s entire business turns out to be referral-based.

Digital Evolution

With nearly two decades in mutual fund distribution, Rawal has evolved from a fully physical setup to a completely digital one. “As and when technological support was available I did not hesitate to utilise the same for better productivity and efficiency. My team kept upgrading the software and platform to remain relevant in the fast-changing scenario,” explains Rawal. This approach boosted Rawal’s business and he acknowledges the importance of digitally-enabled operations.

The 2020 Pandemic

The steep market crash during the pandemic was yet another market cycle in Rawal’s overall experience. Though some of his investors did ask him to redeem their money, he managed to convey and convince them to stay put. “Some who had genuine reasons for redemptions, I encouraged them to take the money out and settle their liabilities like home loans, etc.,” recalls Rawal. Within a few months when the market stabilised and later recovered, his investors were more than happy to stay put.

Growth Prospects and Suggestions to Newcomers

Rawal is highly confident that the mutual fund industry has to go a long way from here, given the huge potential. He foresees himself touching ₹500 crore of AUM in the next five years. He encourages newcomers to join MFD but advises them to first think thoroughly about what they want to do. “Just seeing others making money in distribution should not be the reason for them to enter. Interest, passion, knowledge and desire to do good to investors are very important in this business,” he explains.

Success Mantra

There is no alternative to hard work, passion, patience and customer centricity in this business. “If you can make your investors happy, they will help you be in this business,” he sums up his journey.