Client Objections

There could be two main hurdles in the investment process which most investors play across.

1) Procrastination - not yet motivated  (lack of urgency)

Procrastination is the human tendency to get anything delay. We keep on postponing unless important becomes urgent. Probably we design in a way to work under pressure only. But we must understand that time lost is an opportunity lost and can never be retrieved again ever. Therefore taking daily some small action like a baby step is much better than no action or taking big step afterwords. 

2) Objection Raised - not finding purpose why to invest (lack of need)

Many times objections are raised, some of them are genuine and some are baseless just to keep the matter pending without any particular reason. Some of the objections could be...

• The equity market is risky
• I want safety first
• Can you give a guarantee like FD
• The market is very high
• Will invest after correction / I will wait for a correction
• The market has corrected and it will correct further. I will wait till things ger settled down
• Market sentiments are not good. Just look at the newspaper
• Analyst are predicting a bear market
• No one is investing in the stock market now
• The economy is not doing well
• FII are selling from the equity market
• There is a global uncertainty/recession period
• I don't need mutual funds. They also go down with the market
• I can hardly portfolio my own. I am educated, intelligent & expert
• I want to stop my SIP as returns are not good in the last 5 years
• I am already investing in PPF. Why should I invest in ELSS?
• Its too expensive
• I don't have a budget/money/funds to invest
• Why should I trust you
• I don't think this will help me
• It is not a good time to invest
• There is plenty of time for my child education/retirement
• I can not afford it
• I will invest directly. I don't need a financial advisor
• I will think & get back to you
• Call me after a month time

Managing objections requires practice. Don't sell the product, present your solution in terms of value and benefits that will uniquely help the clients in the future.