people first trust the advisor and then the product.

My first client was my father in law's brother who had approached me directly without consulting my father in law. He had never invested in mutual funds till then. When I tried to explain the concept of mutual funds, he just said he trusted me and handed me a cheque without understanding the details.  

I had recommended an equity fund to him. He continues to invest through me even now.

After some time, I asked him what convinced him to invest through me and that too in an instrument which he did not know very well. He said, “My hair has not turned grey playing in the sun, but with experience. I can judge a person by his actions, and felt that you would not be reckless with my money".

Then I asked him whether being related was the factor that swayed his decision, his reply was that he was a businessman and did not make decisions based on emotions.

After hearing this I realised that trust is an important factor and building trust is the basic ingredient for business.
Another thing which I realised was that people first trust the advisor and then the product.

vinay mohanty