Sales Executive student handbook (2)

Sales Executive (BFSI) VILT long and short-term performance. When evaluating performance, investors must look at the track record of a fund over a time period that matches their own investment goals. They must check that the benchmark chosen by the fund to compare its relative performance is appropriate. Sebi is doing a fine job of ensuring this as well. In addition, investors should keep in mind that many of the returns presented in historical data don't account for tax. They must look at any fine print in these sections, as they should say whether or not taxes have been taken into account. Fees and expenses Mutual funds have two goals: to make money for themselves and for you, usually in that order.- Quote from Fool.com. Entry loads, exit loads, switching charges, annual recurring expenses, management fees, investor servicing costs these all add up over time. The OD lists the limits on these fees and also shows the impact these have had on the fund investment historically. Key Personnel esp Fund Managers This section details the education and work experience of the key management of the fund company, including the CEO and the Fund Managers. Investors get an idea of the pedigree and vintage of the management team. For example, investors need to watch out for the fund that has been in operation significantly longer than the fund manager has been managing it. The performance of such a fund can be credited not to the present manager, but to the previous ones. If the current manager has been managing the fund for only a short period of time, investors need to look into his or her past performance with other funds with similar investment goals and strategies. Only then can they get a better gauge of his or her talent and investment style. Tax benefits information Mutual funds enjoy significant tax benefits under Sec 23 D and Sec 115 .For example, Equity funds enjoy nil long terms capital gains and nil dividend distribution tax benefits. A close reading of the tax benefits available to the fund investors will enable them to plan their taxes better and to enhance their post-tax returns. (Also read - How to ride the rising interest rate tide?) Investor services Shareholders may have access to certain services, such as automatic reinvestment of dividends and systematic investment/withdrawal plans. This section of the OD, usually near the back of the publication, will describe these services and how one can take advantage of them.  Mode of Payment: SIP, STP, SWP Understanding SIP, SWP and STP 100

Sales Executive (BFSI) VILT We all come across the terms SIP, SWP and STP very frequently while dealing with mutual funds. SIP, SWP and STP are all systematic and strategic investment and withdrawal plans in Mutual Funds. Depending on the requirements of an individual, one can opt for either of the methods. In a nutshell, SIP, SWP and STP are systematic ways to do a transaction in mutual funds. SIP is to invest. SWP is to withdraw. STP is to transfer. Given all these options, what should you choose for? Let us understand each of these in detail. Systematic Investment Planning SIP is a method of investing small sums of money on a regular basis in mutual funds to build a corpus over time. Investors buy units at regular intervals. Here, the money gets transferred from your bank account to Mutual fund investment every month or any other frequency that you opt for. The frequency of SIPs can vary – you can do a quarterly, monthly, weekly or daily SIP. It can help an individual to do goal based investments. It ensures effective planning as you can start an SIP for each goal. The goal could be children’s education, buying a house, wedding etc. One can start investing with as little as INR 500. SIPs not only instill a good saving habit in the investors but the power of compounding also helps amass wealth. By spreading out the investments an investor can average out his purchase cost. In more technical terms, it is called rupee cost averaging. SIP is more suitable for investors who earn a salary and is a bit difficult for them to invest a lump sum amount in Mutual Funds. But at the same time, investing a part of salary every month is convenient. It also prevents you from committing all your money at a market peak, and hence maximizes returns. SIPs have limited use in debt schemes as they are not as volatile or risky as equity schemes. In Fact, investing in Equity linked Saving schemes can help you get deductions upto INR 150000 under 80C. When should you opt for SIP? If you are in the earning phase of your life, then this is the time to accumulate wealth. What better way to accumulate wealth than SIP? SIP is a useful strategy in the accumulation phase. Systematic Withdrawal Plan An SWP allows you to withdraw a specific sum of money from a fund at regular intervals. An investor first accumulates the money in a Mutual Fund scheme in some number of years. Then, the investor starts to redeem the money from the Mutual Fund scheme at regular intervals depending on the requirements. The frequency of SWP can be weekly, monthly, or quarterly. 101

Sales Executive (BFSI) VILT Basically, we can say it is the opposite of SIP. Here, the money gets transferred from your Mutual fund investment to your bank account. But SWP attracts tax as every withdrawal is considered a redemption and capital gain is applicable. Considering one will be accumulating for a long period of time, so at the time of withdrawal, LTCG tax needs to be paid. SWPs provide the investor with a certain level of protection from market instability and helps avoid timing the market. When should you opt for SWP? It is generally suited for retirees who are typically looking for a fixed flow of income. So instead of lump sum and adhoc withdrawals, it is best that you give SWP instructions to the mutual fund that a fixed amount, say, 30,000 should be withdrawn from the mutual fund every month and gets credited to your bank account. Not only for retirement, one can use SWP to meet education expenses of children which are required at regular intervals. Systematic Transfer Plan STP is a method through which an investor agrees to give permission to the AMC to transfer money from one scheme to another in a systematic and periodic manner. Generally, an investor invests a lump sum in one scheme and transfers a fixed amount to another scheme within the same AMC. In STP, funds are transferred, so each transfer is treated as a redemption and does attract a capital gains tax. One of the major advantages of STP is that an investor can earn a little extra on the lump sum in a debt mutual fund while it is being deployed in equity, since debt funds provide better returns than a normal savings bank account. It also helps to rebalance the portfolio regularly. Systematic Transfer plan is of three types namely – 1. Fixed STP – Here, the investor decides the fixed sum of money to be transferred from one fund to another. 2. Flexible STP – In this type, the investor has a choice to transfer a variable amount. The fixed amount will be the minimum amount and the variable amount depends upon the volatility in the market. 3. Capital appreciation STP – Here, the investor takes the gain part out of one fund and invests in the other. When should you opt for STP? One opts for an STP when there is a lump sum amount to invest. It is suitable for individuals who have excess idle money lying in their account and are reluctant to invest the entire amounts into 102

Sales Executive (BFSI) VILT equity funds. As investing a lump sum in the equity market is not recommended looking at its volatility. In this case, the money is invested in a debt fund preferably a liquid debt fund and instructions are given to the mutual fund that a fixed amount should be transferred from debt mutual fund to equity mutual fund. That’s one way of using STP. A person can also do an STP from equity mutual fund to Debt mutual fund. This will be used when a person is investing in an equity MF for a long term goal, say for Children education. But when a person is near to the goal, it is suggested that you start moving your money from equity funds to debt funds to reduce risk because of short term market volatility. This can be done by STP. I hope that the difference is now clear among each of these options. With every method having their own set of features and advantages, an investor has to be careful while choosing the best option for him by considering the modalities and the suitability of the scheme and his goals.  Taxation On Mutual Fund Products Taxation of Mutual Funds: How mutual funds are taxed in India Taxation on mutual funds is a complex topic. Taxes paid on your mutual fund investments vastly depend on factors such as what kind of funds you have invested in, the duration of your investment, and which income tax slab you belong to. If you have read any of our blog posts here on Scripbox, you are no stranger to our suggestion of investing in mutual funds. We have always suggested that mutual fund investments are a great way to get started with your investment journey. While you carefully plan your mutual fund investments, the one variable that tends to get overlooked is mutual fund taxation. Tax on mutual funds can get slightly confusing. Taxes paid on your mutual fund investments vastly depends on factors such as what kind of funds you have invested in, the duration of your investment, and which income tax slab you belong to. tax on mutual funds. Types of Mutual Funds in India You may have heard of words like Debt funds, Equity funds, ELSS funds, Index funds, Liquid funds, Income funds being used often. However, mutual funds are broadly categorized as Equity funds, Debt funds, and Hybrid funds. In this article, we want to discuss mutual fund taxation and help you understand how your mutual fund returns are taxed. 103

Sales Executive (BFSI) VILT investing in mutual funds is one of the best ways to make sure that you have enough money for all your financial requirements for years to come. Hence, to have a clear picture of the returns on your mutual funds, you need to know how much you will be paying in taxes. If you ever wondered if income from mutual funds is taxable or exempt from taxes, we hope you find your answers here. Capital Gain Tax on Mutual Funds When you sell your assets at a profit, the total profit earned is called a capital gain. Capital is nothing but the principal investment that was made to purchase your mutual fund units. Let’s look at an example to understand what mutual funds capital gains mean. Let’s assume you purchased a few units of a mutual fund for Rs. 1000. Your capital expenditure, in this case, is the principal amount of Rs. 1000. If the fund generated a return of 10%, the value of your investment is now Rs. 1100. So the capital gain on this investment is Rs. 100. Therefore, the capital gain is total income minus the initial capital. The capital gain, Rs. 100, in this case, will be the taxable income. Also, it is important to note that one incurs capital gain tax only when it is sold. If you continue to stay invested, you will not have to pay mutual funds capital gains tax. Capital gains tax in India depends on the mutual fund scheme and the tenure of the investment. Based on your choice of investments, you will have to pay short-term capital gains tax (STCG) or long term capital gains tax (LTCG). We will delve into both of these momentarily. In the meantime, let’s look at how a mutual fund dividend payout impacts your taxes. Tax on Dividend Income If you invest in a mutual fund with a dividend payout option, you will receive timely payments in the form of dividends. Whenever a dividend option mutual fund makes a profit, that profit gets distributed among investors (as per the number of units held by each investor) as dividend payments. In the Union Budget 2020, the finance ministry has changed the mutual fund’s dividend tax rules in India. Dividends will now be taxable in the hands of investors and DDT os scrapped. Hence, fund houses need not pay the Dividend Distribution Tax DDT on equity mutual funds and debt mutual funds starting April 1st, 2020. Before scrapping the Dividend Distribution Tax (DDT), this is how dividends on equity mutual funds and debt mutual funds were taxed in India. 104

Sales Executive (BFSI) VILT Fund DDT Base Rate Surcharge Cess Effective DDT Equity Mutual Funds 10% 1.2% 0.448% 11.648% Debt Mutual Funds 25% 3% 1.120% 29.120% A surcharge of 12% on base rate and cess of 4% on base + surcharge rate is included in DDT. From April 1st, 2020, mutual funds dividends are taxed in the hands of investors at their income tax slab rate. This is done to reduce the burden on small investors. Dividend income will be treated as normal income and added to the total income and is taxable at the income tax slab rate. Additionally, mutual funds dividends paid out to a person is more than INR 5,000 is subject to TDS (tax deducted at source) of 10%. If the PAN is linked to Aadhar, this rate is applicable. In its absence, the TDS will be 20%. The new mutual fund’s dividend tax rules have made dividend plans less attractive. This change will now boost the sales of growth and SWP plans. Difference between Growth Option and Dividend Option in Mutual Funds There is one significant difference between mutual funds that offer a growth option and mutual funds that offer a dividend payout option. And that is the option of reinvesting your returns. Growth Option In the case of growth funds, your return on investment is automatically reinvested back into the fund. These mutual funds don’t offer any payouts in between. Over a period of time, this significantly increases the net asset value (NAV) of your investment. Dividend Option In the case of dividends, you can opt for dividend payout or choose to reinvest your dividends back into the fund. If you choose to receive dividend payouts, the NAV of your plan reduces the extent of dividends paid. It reduces the overall NAV of your investment. If you choose to reinvest your dividends, the mutual fund purchases additional units to the extent of dividends declared. If you want to invest in mutual funds for the long-term, and for wealth generation, growth option mutual funds are your best bet. For this very reason, Scrip box recommends only growth option mutual funds. You can learn more about it here. Key Factors that Determine the Taxation of Mutual Funds in India 105

Sales Executive (BFSI) VILT Two essential factors determine how mutual funds are taxed in India. One of them is the type of mutual fund scheme, and the other is the duration of your investment. Type of Mutual Fund Scheme Income tax on mutual funds in India depends on the type of mutual fund. You might already be aware that mutual funds are broadly categorized into equity mutual funds and debt mutual funds. Since we have extensively talked about the differences between these two types of funds on our Scripbox blog, we’ll keep this brief. Equity mutual funds mostly invest in equity shares and stocks trading in the stock market. Since they are subject to market volatility, they carry a higher degree of risk. Within equity funds, the popular ones are large caps, mid-caps, and small-cap mutual funds. You can also learn more about equity mutual funds here. On the other hand, debt mutual funds invest in relatively safer investment options such as government bonds, corporate bonds, etc.that offer a fixed return. Liquid funds, short-duration funds, and income funds are just a few types of debt funds. You can also learn more about debt mutual funds here. Duration of Your Investment The duration of your investment, also known as the holding period, largely determines how income tax on mutual funds is calculated. The holding period of your investments can either be short-term or long-term. In the case of equity mutual funds, an investment tenure less than one year (12 months) is considered short-term. Any investment over one year is considered long-term. In the case of debt mutual funds, an investment tenure of up to 3 years (36 months) is considered short-term. Any investment over a period of 3 years is considered long-term. Tax on Equity Mutual Funds If equity investments are sold under one year, the fund returns are treated as short term capital gains (STCG). These are subject to short term capital gain tax of 15% (plus 4% cess). Equity investments that are redeemed after one year are considered long-term capital gains (LTCG). The LTCG of up to Rs. 1 lakh is tax-free, whereas gains over Rs. 1 lakh is subject to LTCG tax of 10% (plus 4% cess) without any indexation benefit. Equity-Linked Saving Scheme (ELSS funds) is another equity scheme that deserves to be mentioned here. It is the most efficient tax saving scheme under Section 80C. ELSS mutual funds have a lock-in period of 3 years. 106

Sales Executive (BFSI) VILT Equity oriented balanced, and hybrid funds, in which at least 65% of the assets are invested in equities, are also taxed the same way as equity mutual funds. Tax on Debt Mutual Funds Taxation on debt mutual funds is very different from that of equity mutual funds. As previously mentioned, If debt investment is sold under three years, they are considered as short term capital gain. This short term capital gain is then added to the investor’s income and taxed as per the income tax slab applicable to the investor. The debt investments sold after three years will be considered long-term capital gains. These are subject to the LTCG tax of 20% with indexation benefit. The indexation benefit makes investing in debt mutual funds particularly attractive for investors looking for tax-efficient investment options. In short, indexation helps in reducing tax as it inflates the purchase cost. Indexation achieves this by adjusting capital gains to the cost inflation index (CII). It is important to note that indexation applies only to long-term capital gains earned on non-equity oriented mutual funds. Indexation can be slightly tricky to follow. Please read the detailed explanation provided here to understand how indexation works. In addition to all of these, you also need to be aware of the Securities Transaction Tax STT. The fund manager will charge you an STT of 0.001% if you decide to sell your equity fund units. Securities Transaction Tax STT does not apply to the sale of units in debt mutual funds. How to Declare Mutual Fund Investments in ITR Declaring your investment returns while filing your income tax returns is not as straightforward as it may seem. Let’s look at how tax filing of capital gains can be done seamlessly. If you are a salaried person with no accumulation of capital gains yet, you will need to fill in Form 1 along with Form 16 provided by your employer. If, on the other hand, you are a salaried individual who has accumulated capital gains over the years, you will need to fill in Form 2. ITR Form 2 is for individuals not conducting any other business under proprietorship but receive additional income from other sources apart from salary. While filing your income tax returns, mutual fund investments have to be declared. However, investments in tax savings funds like ELSS mutual funds help save tax under section 80c. 107

Sales Executive (BFSI) VILT Also, Scripbox Income tax calculator can be used to determine the taxable income and makes the tax filing process easy for an investor. It also suggests investment plans in case there is scope to save tax. Additional Important Points to Keep in Mind Before we proceed to conclude, we wanted to include a few essential points to keep in mind when it comes to taxes paid for your mutual fund investments. If you decided to invest in mutual funds via a systematic investment plan (SIP), it is essential to keep in mind that each SIP is considered as an individual investment. And, if you decided to redeem your investment after 12 months of SIP payments, all of your gains would not be free of tax. Only the gains earned on the first SIP will be tax-free as only that investment would have completed one year. The rest of the gains will be subject to short-term capital gains tax. Also, you can calculate your SIP returns using the Scripbox SIP Calculator. It is also important to remember that tax is collected on the entire value of redeemed funds and not individual funds. If, for instance, the gains from your entire portfolio exceed Rs. 1 lakh, only then will your income be subject to LTCG of 10%. It might help if you can avoid frequent purchase and redemption of mutual fund units. Each redemption will be treated as a withdrawal and will be taxed as per the holding period. This is just an unnecessary expense that can be easily avoided. Your entire investment strategy should revolve around your financial goals. Any of the investments that do not align with your goals should ideally be redeemed promptly and moved into funds that can serve your financial goals better. Concluding Remarks We hope you found this information useful. Understanding how taxation of mutual funds works can be intimidating in the beginning. However, as you continue to learn and invest, you will get a better picture. Just make sure that you thoroughly understand a product before you begin your investment. This will ensure that you avoid expenses that come in the form of exit loads and other tax liabilities. Also, you can always use online mutual fund calculators like SIP calculator and lump sum returns calculator to determine the potential returns from mutual fund investments. And use an income tax calculator to find out what might be your tax liability while filing income tax returns. 108

Sales Executive (BFSI) VILT If you have any further questions, please feel free to browse through our blog. We try our best to provide as much information as possible by discussing many relevant topics that can help you make the right investment decisions.  Investor Services Investor Relations (IR) What Are Investor Relations (IR)? The investor relations (IR) department is a division of a business, usually a public company, whose job it is to provide investors with an accurate account of company affairs. This helps private and institutional investors make informed decisions on whether to invest in the company. Understanding Investor Relations (IR) Investor relations ensures that a company's publicly traded stock is being fairly traded through the dissemination of key information that allows investors to determine whether a company is a good investment for their needs. IR departments are sub-departments of public relations (PR) departments and work to communicate with investors, shareholders, government organizations, and the overall financial community. Companies normally start building their IR departments before going public. During this pre-initial public offering (IPO) phase, IR departments can help establish corporate governance, conduct internal financial audits, and start communicating with potential IPO investors. For example, when a company goes on an IPO roadshow, it is common for some institutional investors to become interested in the company as an investment vehicle. Once interested, institutional investors require detailed information about the company, both qualitative and quantitative. To obtain this information, the company's IR department is called upon to provide a description of its products and services, financial statements, financial statistics, and an overview of the company's organizational structure. The IR department's largest role is its interactions with investment analysts who provide public opinion on the company as an investment opportunity. Special Considerations The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act, was passed in 2002, increasing reporting requirements for publicly traded companies. This expanded the need for public companies to have internal departments dedicated to investor relations, reporting compliance, and the accurate dissemination of financial information. Requirements for Investor Relations 109

Sales Executive (BFSI) VILT IR teams are typically tasked with coordinating shareholder meetings and press conferences, releasing financial data, leading financial analyst briefings, publishing reports to the Securities and Exchange Commission (SEC), and handling the public side of any financial crisis. Unlike other parts of public relations (PR)-driven departments, IR departments are required to be tightly integrated with a company's accounting department, legal department, and executive management team, such as the chief executive officer (CEO), chief operating officer (COO), and chief financial officer (CFO). In addition, IR departments have to be aware of changing regulatory requirements and advise the company on what can and cannot be done from a PR perspective. For example, IR departments have to lead companies in quiet periods, where it is illegal to discuss certain aspects of a company and its performance. The IR department's largest role is its interactions with investment analysts who provide public opinion on the company as an investment opportunity. These opinions influence the overall investment community, and it is the IR department's job to manage analysts' expectations. 110

Sales Executive (BFSI) VILT Chapter 5 WEALTH MANAGEMENT AND FINANCIAL PLANNING  Financial Statement Rations and Calculations Financial Statement Ratios and Calculations Listed below are just some of the many ratios that investors calculate from information on financial statements and then use to evaluate a company. Debt-to-equity ratio compares a company’s total debt to shareholders’ equity. Both of these numbers can be found on a company’s balance sheet. To calculate debt-to-equity ratio, you divide a company’s total liabilities by its shareholder equity. Debt-to-Equity Ratio = Total Liabilities / Shareholders’ Equity If a company has a debt-to-equity ratio of 2 to 1, it means that the company has two dollars of debt to every one dollar shareholders invest in the company. In other words, the company is taking on debt at twice the rate that its owners are investing in the company. Inventory turnover ratio compares a company’s cost of sales on its income statement with its average inventory balance for the period. To calculate the average inventory balance for the period, look at the inventory numbers listed on the balance sheet. Take the balance listed for the period of the report and add it to the balance listed for the previous comparable period, and then divide by two. (Remember that balance sheets are snapshots in time. So the inventory balance for the previous period is the beginning balance for the current period, and the inventory balance for the current period is the ending balance.) To calculate the inventory turnover ratio, you divide a company’s cost of sales (just below the net revenues on the income statement) by the average inventory for the period. Inventory Turnover Ratio = Cost of Sales / Average Inventory for the Period If a company has an inventory turnover ratio of 2 to 1, it means that the company’s inventory turned over twice in the reporting period. Operating margin compares a company’s operating income to net revenues. Both of these numbers can be found on a company’s income statement. To calculate operating margin, you divide a company’s income from operations (before interest and income tax expenses) by its net revenues. Operating Margin = Income from Operations / Net Revenues 111

Sales Executive (BFSI) VILT Operating margin is usually expressed as a percentage. It shows, for each dollar of sales, what percentage was profit. P/E ratio compares a company’s common stock price with its earnings per share. To calculate a company’s P/E ratio, you divide a company’s stock price by its earnings per share. P/E Ratio = Price per share / Earnings per share If a company’s stock is selling at $20 per share and the company is earning $2 per share, then the company’s P/E Ratio is 10 to 1. The company’s stock is selling at 10 times its earnings. Working capital is the money leftover if a company paid its current liabilities (that is, its debts due within one-year of the date of the balance sheet) from its current assets. Working Capital = Current Assets – Current Liabilities 7 ratios which will reveal your current financial health As you seek to improve your money management skills and make plans to strengthen your future financial position, preparing a family balance sheet would be a logical start. Balance sheet is a common tool used to analyze the net worth and expense management techniques of companies. Adopting these corporate management techniques to manage your family's finances would help you by giving a specific direction to your thought process by identifying the weak areas. Here are seven ratios will help you understand you current financial health better and should motivate you to take corrective actions: 1. Liquidity ratio Liquidity ratio represents an individual's ability to meet committed expenses when faced with an emergency. LIQUIDITY RATIO = CASH OR CASH EQUIVALENTS / MONTHLY COMMITTED EXPENSES While some financial planners define this ratio as the ratio between liquid assets and net worth, the basic liquidity ratio (given above) is used in terms of analyzing existing emergency funds. It is a prescribed practice to maintain 3-6 months of expenses as your emergency fund, which means that the ideal levels of liquidity ratio range between 3 and 6. 2. Asset to debt ratio This ratio compares the assets accumulated by an individual against the existing liabilities. ASSET TO DEBT RATIO = TOTAL ASSETS / TOTAL LIABILITIES 112

Sales Executive (BFSI) VILT Total assets include both liquid and illiquid assets accumulated over years. Total liabilities include all forms of liabilities such as home loan, car loan, outstanding credit card balance and so on. The ideal figure of this ratio may vary depending upon the individual's situation. For a middle- income person in his/her early thirties who has just bought a new home, this ratio is recorded lower. Similarly, for a person in his peak earning phase, the ratio is recorded higher. This ratio stands as relative measure which helps in determining what you own vs. what you owe. 3. Current ratio This ratio represents the ability of an individual to service short-term liabilities in case of any financial emergency. CURRENT RATIO = CASH OR CASH EQUIVALENTS / SHORT TERM LIABILITIES Cash or cash equivalent component includes assets such as cash in hand, cash in bank and other such assets which can be liquidated immediately. Short-term liabilities include all your debt repayments that are to be made in the current year. Total EMI payments that are to be made in the current year, credit card outstanding balance and other such obligations, which are to be met in the current year, are also considered when calculating short-term liabilities. 4. Debt service ratio This ratio defines how comfortable one is making his/her EMI payments. DEBT SERVICE RATIO = SHORT TERM LIABILITIES / TOTAL INCOME This ratio indicates the percentage of income being accounted for debt repayment and the percentage of income left over for other mandatory household expenses and savings. Lower the ratio, better the debt management state of an individual. 5. Saving ratio This is one of the most common and simpler financial ratios. It compares the monthly surplus being generated by an individual against total cash inflows. SAVING RATIO = MONTHLY SURPLUS / MONTHLY INCOME Though the ratio looks familiar and simple, it will give you valuable insight on how well your finances are being managed. It also represents one's ability to achieve his/her future goals. A higher saving ratio translates to better money management skills. 6. Solvency ratio Solvency ratio compares an individual's net worth against total assets accumulated by him/her. SOLVENCY RATIO = NET WORTH / TOTAL ASSETS 113

Sales Executive (BFSI) VILT Net worth of an individual is the difference between his/her total assets and total liabilities. Net worth is positive if the accumulated assets are worth more than the liabilities. This ratio indicates the ability of an individual to repay all his/her existing debts using existing assets in case of unforeseen events. 7. Investment assets to total assets This ratio compares liquid assets being held by an individual against the total assets accumulated. INVESTMENT ASSETS TO TOTAL ASSETS = LIQUID ASSETS / TOTAL ASSETS Investments in stocks, mutual funds or other such investments, which can be converted to cash easily, are considered as liquid assets. Apart from these liquid assets, total assets also include illiquid assets such as real estate or other such investments which require more time to convert to cash. One should hold at least 20 per cent of his/her total assets as liquid assets.  Portfolio Construction Portfolio Construction Introduction Portfolio construction is a process of selecting securities optimally by taking minimum risk to achieve maximum returns. The portfolio consists of various securities such as bonds, stocks, and money market instruments. What is Portfolio Construction? To plan for the portfolio investment, you must take an in-depth look at all current assets, investments, and debts if any. Now, you can define your financial goals for the short and long terms. To establish a risk-return profile, you have to decide on the extent of risk and volatility you're willing to take, and what returns you want to generate. Now, the benchmarks can be set in place to track portfolio performance. With a risk-return profile in place, the next step is to create an asset allocation strategy that is diversified and structured for maximum returns. Now, adjust the plan to consider significant life changes, like buying a home or retiring. The investor has to choose whether to opt active management, which might include professionally-managed mutual funds, or passive management, which might consist of ETFs that track specific indexes. Once a portfolio is in place, it's crucial to monitor the investment and ideally reevaluate goals annually, making changes as needed. Conclusion 114

Sales Executive (BFSI) VILT When the investor is investing for a lifelong goal, the portfolio planning process never stops. With advance in time, there may be changes in the goals. Events such as job change, childbirth, divorce, death, or shrinking time horizons may require adjustments to their portfolio plans. As changes occur, or as market/economic conditions dictate, the portfolio planning process begins afresh. What is the current situation? Portfolio analysis has been the latest trend in the field where investment opportunities are identified, portfolios are aligned with investment objectives, and portfolio risk and performance are monitored. The technology lets investment managers filter information quickly, take advantage of statistical arbitrage opportunities, and deal with inefficiencies, such as transaction costs incurred during trading and tax consequences of investment decisions. How to implement Financial Planning in different scenarios? The management of the portfolio begins once the portfolio plan is implemented. Portfolio management is carried out by monitoring the investments and measuring the portfolio's performance relative to the benchmarks. It is essential to report investment performance at regular intervals. The reporting will be done quarterly and the portfolio plan will be reviewed annually. Once a year, the investor's goals get reviewed because there might be significant changes. The review then determines if the allocation is still on track with the investor's risk-reward profile. If it is not, the investor should rebalance his portfolio. Rebalancing includes selling investments that have reached their goals and buying investments that offer more significant upside potential.  Portfolio Monitoring and Re-Balancing Portfolio Rebalancing – What Is It and Why You Should Do It? Rebalancing is the process by which an investor restores their portfolio to its target allocation. Rebalancing brings your portfolio back to the desired asset mix. This is done by divesting in underperforming assets and investing in the ones that have the potential to grow. 1. Why is Rebalancing important for you? The primary objective of portfolio rebalancing is to establish better risk control, and ensure that your portfolio isn’t singularly dependent on the success or failure of a particular investment, asset class, or fund type. Example: Let’s assume that you invested Rs 10,000 in mutual fund A and Rs 10,000 in mutual fund B in January 2018. At the end of one year, your investment of Rs 20,000 doubles up and turns into a dividend of Rs 41,000. Due to market forces, it may happen that both the funds may not perform equally. So, while fund A gives you Rs 17,000 at the end of the year, fund B returns Rs, 24,000. 115

Sales Executive (BFSI) VILT When you began your investment, both the funds had the same weight. At the end of 1 year, one fund dominated your portfolio with a roughly 60% share. If in the coming years this fund were to perform badly, then your investments would see a downward turn in no time at all! Invest in the Best Mutual Funds 2. How can rebalancing help you as an investor? Rebalancing works as a risk-minimizing strategy for you as an investor. It allows you to line up your investment with your goals by periodically rebalancing your portfolio. If your risk tolerance or your investment strategies change, then you can rebalance the weight of the asset class in your portfolio by reassessing and devising a new asset allocation. 3. How can you rebalance your portfolio? When you invest in mutual funds, you are investing to achieve a single goal via various vehicles. So when you rebalance, the shift must occur across all of these funds at the same time. Here’s how you can rebalance your portfolio in 5 simple steps: Step 1: Primarily, have an asset allocation plan by considering your income, the expected time of retirement, and so on. Create an asset allocation framework, but if you are unsure speak to an expert – Clear Tax can be of help here. Step 2: Assess your current asset allocation by identifying where and how your current investments are placed in stocks, cash, bonds, or any other form of investment. After this, make a comparative analysis of asset allocation target and its present state and make adjustments accordingly. Step 3: Chart out a rebalancing plan is your asset allocation target does not align with your current portfolio. This step can be tricky where you have to decide on the securities to retain and in what numbers. Speak to our experts at Clear Tax to get clarity. Step 4: Be mindful of the tax implications, especially on capital gains. Avoid the short term taxes on capital gains by holding on to your equities for over a year. In the case of debt funds, the short- term capital gains will qualify for taxes based on the individuals’ income tax slab. For long-term capital gains, the tax is 20% with indexation. If you need to scale back, aim to sell the securities in the tax-exempt accounts first. In this way, you can limit the taxes you pay in capital gains. Step 5: Review your portfolio at least once a year or maybe once in six months to assess your position but rebalance it only when you feel that the allocations are significantly out of the track to reaching the target. 116

Sales Executive (BFSI) VILT 4. What is the cost involved with Rebalancing your Portfolio? There are certain expenses involved with rebalancing your portfolio, and as an investor, you must be aware of the following: a. The cost of brokerage and Securities Transaction Tax (STT) is one of the expenses you will incur as an investor. This includes the transaction cost of buying and selling securities like stocks and bonds. b. Charges of exit load of about 2% in the case of mutual funds can be levied if you sell your investment within a specific period. c. You will incur taxation on capital gains on the sale of equity investments within a year. There will be a marginal tax rate for debt investments that you sell within three years. Rebalancing of a portfolio is more about identifying and implementing a system that works best for you as an investor. It must never be about merely adopting what works well for someone else. At the same time, it also entails reviewing and making informed adjustments, keeping in mind the tax and other consequences. If you seek further assistance in rebalancing your portfolio, then get in touch with us at Clear Tax to know more.  Need of Financial Advisory Services Financial adviser A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete specific training and be registered with a regulatory body in order to provide advice. In the United States, a financial adviser carries a Series 7 and Series 65 or Series 66 qualification examination. According to the U.S. Financial Industry Regulatory Authority (FINRA), qualification designations and compliance issues must be reported for public view. FINRA specifies the following groups who may use the term financial advisor: brokers, investment advisers, private bankers, accountants, lawyers, insurance agents and financial planners. Role 117

Sales Executive (BFSI) VILT Financial advisers typically provide financial products and services, depending on the qualification examinations they hold and the training they have. Financial advisers are registered; they are not licensed. For example, a licensed insurance agent may be qualified to sell both life insurance and variable annuities, because the insurance agent holds an insurance license and holds the Series 7 qualification examination. A broker (Series 7) may also be a financial planner. Any advisor can say they are a financial planner; they do not have to hold the CFP (Certified Financial Planner) designation to do so. A financial adviser may create financial plans for clients or sell financial products, or a combination of both. They may also provide insight on savings. Compensation A financial adviser is generally compensated through fees, commissions, or a combination of both. For example, a financial adviser may be compensated in one or more of the following ways:  An hourly fee for advisory services  A flat fee, such as $3,500 per year, for an annual portfolio review or $5,000 for a financial plan. This is often referred to as \"flat fee advisors\"  A commission on the securities bought or sold, such as $12 per trade  A commission (sometimes called a \"load\") based on the amount invested in a mutual fund or variable annuity  A \"mark-up\": when one buys \"house\" products (such as bonds that the broker holds in inventory), or a \"mark-down\" when they are sold  A fee for assets under management (AUM), such as 1% annually of assets managed Advisor vs. adviser Both spellings, advisor and adviser, are accepted and denote someone who provides advice. According to one textbook, adviser and advisor are not interchangeable in the financial services industry, since the term adviser is generally used \"when referring to legislative acts and their requirements and advisor when referring to a practitioner. Since [a financial advisor's practice] is never described as an advisory practice, advisor is preferable when not referencing the law.\"[5Congress and the Securities Exchange Commission refer to \"investment advisers\" when discussing regulation of them in the Investment Advisers Act of 1940. Regulation Registration A Registered Investment Adviser (RIA) refers to an IA that is registered with the SEC or a state's securities agency and typically provides investment advice to a retail investor or registered investment company such as a mutual fund, or exchange-traded fund. Registered Investment Advisors are regulated by either the SEC or by the individual states, depending on the amount of assets under management. 118

Sales Executive (BFSI) VILT India The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992. In India, SEBI registered investment advisor is referred, when an investor who would like advice on where to invest in share market or an investor. SEBI has put certain guidelines before giving RIA license to any individual, corporate or firms. In India, there are 1160 RIAs as of 31 January 2020, who are registered with SEBI as registered investment advisor (2013) regulations.  Financial Advisory and Execution The differences between discretionary, advisory and execution-only investment management Discretionary, Advisory and Execution-only are different types of investment services. It’s important you understand the characteristics so you can select the option that is relevant to your needs. Most wealth managers offer their investment services under three different labels: discretionary, advisory, and execution-only. These terms simply refer to the level of involvement the client is going to have in the management of their investments – how much control they are willing to cede to their investment manager when it comes to decision-making. Execution-only stands at one end of the spectrum, as the most hands-on option for the client, while discretionary stands at the other. In this guide we explain the differences between discretionary, advisory and execution-only investment management styles. How it works Discretionary investment management services Discretionary investment management services are a popular option for those who have little experience in investing, or lack the time or inclination to be involved very much. If you opt for a discretionary service you and your wealth manager will start your relationship by working out your investment objectives and risk appetite, and then devising an investment strategy that precisely fits your profile and requirements. How much investment risk you are willing to take on, the level of returns you aim to receive for taking on that risk, and the asset classes and markets you do or don’t want be invested in are questions which will all be addressed. Your wealth manager will then take charge of all investment decisions and will not require consent for individual transactions (you having signed over permission for this). Discretionary investment management is offered by most wealth managers and is the most common choice for private clients. This option frees you from involvement in day-to-day investment management decisions 119

Sales Executive (BFSI) VILT and makes it a lot easier to get the most out of long-term investments like trusts, ISAs and, increasingly now, pensions. Your wealth manager will talk you through a wide range of investment strategies, or if you meet a minimum investment threshold, tailor a bespoke portfolio aligned with your unique requirements. Revising your investment strategy regularly as your needs evolve will form a core part of your service. Advisory investment management services Advisory investment management services tend to be offered by the larger private banks and investment management firms, along with specialist advisory boutiques. With an advisory investment management service, your wealth manager will advise you on investment strategy but you will make the final decisions (or at least approve ones that they suggest). This is a very labor- intensive style of wealth management, which requires a large amount of investment expertise and gives the wealth management firm a far less stable income stream from your business. For this reason, most investment managers ask for clients to open an account with a minimum of around £1 million to access advisory services. Execution-only investment management services Execution-only, as the name indicates, means that the investment firm only carries out the investment decisions of the client: here, you directly instruct your wealth manager to buy and sell assets on your behalf. You may be provided with market insights and news, but you will have to arrive at your investment decisions without the advice of a professional investment manager. Because execution-only is fully determined by the client, it is only really suitable for highly- experienced investors and financial professionals. Execution-only services are typically offered alongside advisory services by private banks and boutiques (but rarely by investment managers). Clients are unlikely to come to a wealth manager purely to have transactions carried out for them. The real value a wealth manager adds comes from providing robust advice based on deep investment expertise and a thorough understanding of your situation. Summary There has been a real proliferation of what are variously called self-directed or DIY investment platforms in recent years. They hold out a low-cost investment route for the confident, technologically-savvy investor and some clients like to run such an account for smaller, less crucial pots of money, while entrusting the more important parts of their investment strategy to the professionals. When it comes to serious amounts of assets most people want a professional very much involved. 120

Sales Executive (BFSI) VILT  Financial Planning Delivery Process How the Financial Planning Delivery Proceeding? How the Financial Planning Delivery Proceeding? Whether you are going to the doctor or taking self-remedy, but the Financial Planning is so more important today. Rich Dad Poor Dad – Robert Kiyosaki tells, ‘It’s not how much money you make, but how much money you keep, how hard it works for you, and finally how many generations you keep for it ‘. So, earning high is not a thing to build your wealth, but the proper planning on your money – The Financial Planning. The Financial Planning Delivery proceeds itself by two ways. The First way is the hard one, that you can do as a self-process. By attaining knowledge on Financial Planning, so that you can make this process step by step – Remember, it’s not a easy task, you have to be work hard on retrieving data (Inflation rate, Retirement Corpus, Rate of Returns, CAGR / XIRR). Second way is the easiest one, you can choose a Financial Advisor or Investment Advisor, he would help on your account. The Financial advisor who is a professional, helps you on personal finance based on your current Financial situation. There is a Six (6) step process used by the Well Written Financial Advisor,  Establish and define the Client-Financial Planner relationship  Gathering Client data, including their goals  Analyze and Evaluate the financial status  Develop and Present planning recommendations  Ask to Implementing the financial planning Recommendations  Review the Planning recommendations. RII Advertisement There is an agreement between the client or customer and the Financial advisor (Planner), what the service to be render. For that the financial advisor would charge a fee (in small) and the agreement abide by both persons (Client – Planner Relationship). The First and Foremost task is understanding the Client’s Financial Situation while going to prepare for Financial Planning. Finding the Client’s current income and future needs and wants. 121

Sales Executive (BFSI) VILT Needs are the mandatory expenses like House Rent, Electricity, Food, transportation, etc. Wants are the personal desire like Marriage, Foreign Trip, Buying a car. Current Income should be used to meet the current expenses and also support the future expenses. Identifying the surplus on income, so that one can save and invest for the upcoming expenses. It would also helpful for Wealth Creation. Assets and Liabilities numbers should be clearly examined. Income, Expenses, Assets and Liabilities are the four elements were in a table. Wants are used to identifying the Client’s Financial Goals. For full-filling the financial goals, the amount of money required, that will be derived from Savings and Investing. Financial Goal(s) must be come with two elements – The Value and time for the Goal. For example, Mr. X needs the amount of Rs. 10 Lakhs after 5 years for his daughter’s higher education. Daughter’s higher education is the Financial Goal, the amount of 10 lakhs required is a Value and 5 Years duration is a time to the Goal of Mr. X. Prepare for the Risk Profiling is an essential task for the Client. The Financial advisor should consider the recommendations on Investing, based on Client’s Risk Profile. It can be rending into two things – Risk Capacity and Risk Attitude. Risk Capacity is nothing but, the client’s ability to take risk. Generally, a high risk leads to high reward, on the other side – it depends on client’s ability. Risk Attitude is the way, the willingness to take Risk. It depends on Client’s personal mentality. Risk Profiling can be measured by collecting information through Questionnaires. On submission of Questionnaire by the client will help the advisors to plan accordingly. After execution of Financial Planning recommendations for the Client, then it should be reviewed regularly in an interval. So, that a change may need on Client’s financial situation over the period of time. By reviewing once, a year, is a healthy one for the Client’s Financial Planning delivery process. 122

Sales Executive (BFSI) VILT Chapter 6 ROLE OF BUSINESS FACILITATOR/CORRESPONDENCE  Various Risk Faced by Investor What Is Risk? Although it is often used in different contexts, risk is the possibility that an outcome will not be as expected, specifically in reference to returns on investment in finance. However, there are several different kinds or risk, including investment risk, market risk, inflation risk, business risk, liquidity risk and more. Generally, individuals, companies or countries incur risk that they may lose some or all of an investment. In an investor context, risk is the amount of uncertainty an investor is willing to accept in regard to the future returns they expect from their investment. Risk tolerance, then, is the level of risk an investor is willing to have with an investment - and is usually determined by things like their age and amount of disposable income. Risk is generally referred to in terms of business or investment, but it is also applicable in macroeconomic situations. For example, some kinds of risk examine how inflation, market dynamics or developments and consumer preferences affect investments, countries or companies. Additionally, there are many ways to measure risk including standard deviation and variation. But, what is risk in investing? Risk in Investing In investing, risk is measured by the standard deviation equation (commonly used in statistics) - and, logically, it makes sense. The equation measures how volatile the stock is (its price swings) compared to its average price. The higher the standard deviation, the higher the risk for a stock or security, and the higher the expected returns should be to compensate for taking on that risk. Low-risk stocks tend to have fewer swings in price and therefore more modest returns on investment. However, high-risk stocks typically swing dramatically (or are expected to) in price and can often see huge returns. However, because they are riskier, the investor is taking more of a chance that the return on their investment won't be what they expect (and may in fact cause them to lose their entire investment). A major concept that comes into play when evaluating risk in your portfolio is your time horizon. Essentially, a time horizon is how long you are able to keep your money in the market or the individual stock. If you have a long time horizon, you can generally invest in higher risk stocks 123

Sales Executive (BFSI) VILT because you have more time to ride out any dips in the market. However, if you have a short time horizon (meaning you can only keep your money in the market or the stock for a short period of time), you may need to pick lower risk investments that have less of a chance of dipping dramatically. For example, a U.S. Treasury bond is considered one of the safest (low risk) investments, while some stocks like Lyft (LYFT) - Get Report , for example, might be considered more risky due to their fluctuations. Different Types of Risk While the term \"risk\" is fairly general, even verging on vague, there are several different types of risk that help put it in a more concrete context. So, what are some of the kinds of risk, and how do they affect investors or businesses? Business Risk In a nutshell, business risk is the exposure a company has to various factors like competition, consumer preferences and other metrics that might lower profits or endanger the company's success. When entering a market, every company is exposed to business risk in that there are various factors that may negatively impact profits and might even lead to the business' demise - including things like government regulations or the overall economy. Within the general blanket of business risk are various other kinds of risk that companies examine, including strategic risk, operational risk, reputational risk and more. In a larger sense, anything that might hinder a company's growth or lead it to fail to meet targets or margin goals is considered a business risk, and can present in a variety of ways. Volatility Risk Particularly in investment, volatility risk refers to the risk that a portfolio may experience changes in value due to volatility (price swings) based on the changes in value of its underlying assets - particularly a stock or group of stocks experiencing volatility or price fluctuations. Volatility risk is often examined in reference to options trading, which tends to have a higher risk of volatility due to the nature of options themselves. Stocks are often given ratings, called \"beta,\" which help investors detect which stocks may be more of a risk for their portfolio. The beta value measures a stock's fluctuations compared to the overall market or a benchmark index like the S&P 500. 124

Sales Executive (BFSI) VILT Inflation Risk Inflation risk, sometimes called purchasing power risk, is the risk that the cash from an investment won't be worth as much in the future due to inflation changing its purchasing power. Inflation risk primarily examines how inflation (specifically when higher than expected) may jeopardize or reduce returns due to the eroding the value of the investment. In general, inflation risk is more of a concern for investors who have debt investments like bonds or other cash-heavy investments. Although inflation risk may not be the primary concern for investors, it definitely is and should be on their minds when dealing with cash flows over a long period of time in investment vehicles or when calculating expected returns. The longer cash flows are exposed, the more time inflation has to impact the actual returns of an investment and eat away at profits - specifically if inflation is at an accelerated rate. Market Risk Market risk is a broad term that encompasses the risk that investments or equities will decline in value due to larger economic or market changes or events. Under the umbrella of \"market risk\" are several kinds of more specific market risks, including equity risk, interest rate risk and currency risk. Equity risk is experienced in every investment situation in that it is the risk an equity's share price will drop, causing a loss. In a similar vein, interest rate risk is the risk that the interest rate of bonds will increase, lowering the value of the bond itself. And currency risk (sometimes called exchange- rate risk) applies to foreign investments and the risk incurred with exchange rates for currencies - or, if the value of a certain currency like the pound goes up or down in comparison to the U.S. dollar. Liquidity Risk Liquidity risk is involved when assets or securities cannot be liquidated (that is, turned into cash) fast enough to ride out an especially volatile market. This kind of risk affects businesses, corporations or individuals in their ability to pay off debts without suffering losses. As a general rule, small companies or issuers tend to have a higher liquidity risk due to the fact that they may not be able to quickly cover debt obligations. Essentially, if an individual or company is unable to pay off their short-term debts, they are at liquidity risk. But how do you manage risk? And what is risk management? Risk Management 125

Sales Executive (BFSI) VILT Risk management is the process and strategy that investors and companies alike employ to minimize risks in a variety of contexts. Risk management can range from investing in low-risk securities to portfolio diversification to credit score approval for loans and much more. For investors, risk management can be comprised of balancing or diversifying portfolios with a range of high- and low-risk investments, including equities and bonds. The general rule seems to go that the wider range of investments that are deemed more or less risky (based on how volatile the security is or how drastic its price swings are), the more risk-managed the portfolio and less risky the investment. There are various strategies companies and individuals alike employ to avoid incurring too much risk. Avoidance of risk is a commonly used strategy by businesses to, well, avoid risk. While the strategy is rather vague, avoidance of risk includes things like opting not to purchase a new factory if the risks to the business outweigh the benefits (which, presumably, the company has determined through cost benefit analysis). Additionally, strategies like risk mitigation seek to minimize the effects of risk instead of avoiding them entirely. For example, a beverage company like Coca Cola (KO) - Get Report could avoid having to recall a product for health reasons by conducting an inspection of their product before it goes into the retail space and into consumers' hands. Transfer of risk is also a strategy employed to minimize risk by transferring it to another party - a common example of which is insurance. A company or individual could transfer the risk of damage or loss to a building (or similar asset) by paying a premium for insurance and protecting themselves from having to pay in full if the property is destroyed. And while there are many other examples of risk management - both for individual investors and companies - what are some actual examples of risk?  Borrower Profiling Skills 10 Sales Tips from One of Banking’s Top Loan Officers Lending is a competitive business. While there are many good lenders, there are fewer good lenders that are superior salespeople in banking. We know one of the best that we reported on back in 2014 and thought we would update his production and techniques. We will call him “Jim” to protect his identity as his bank is afraid Jim will be lured away. Jim does between $15 and $20mm consistently per month which is about the total production of your average small community bank. Aside from being highly productive and working 15 hour days, there are a couple of clear items that separates him from the average loan officer. 126

Sales Executive (BFSI) VILT We spent the day with him and learned the following techniques: Add value – Aside from being able to structure and underwrite a loan, Jim is constantly adding value to his clients by giving them information on the economy, helping with marketing, providing calculators (like this one on ROI found HERE) and connecting business owners to his vast network of business experts. Intellectual property lawyers, tax accountants, real estate brokers, business valuation experts and others are all on his iPhone and just a v-card away. Loans Need to Be Sold – Desperate borrowers will take almost any loan. However, the type of profitable borrowers Jim wants have many options, which is why he is constantly selling the bank, selling himself and selling the loan. Loans to good borrowers rarely sell themselves which is why Jim understands his sales technique is essential to his success. Respect the sales process and understand the borrower – Right from the start, Jim asks a series of qualifying questions to determine who the decision makers are, what are their objectives, what their time frame is and what is important to determining what bank the borrower will ultimately choose. Jim is also careful to understand the potential borrower’s view of interest rates and view of the industry. From this information, Jim creates a literal roadmap to success and not only understands what needs to be done to move the borrower along but understands the borrower’s goals, pain points and views in order to best craft a future solution. It Takes at Least 5 Times – In looking over Jim’s customer relationship management system, it takes an average of five meetings with a business owner or manager to earn the sale. Jim commented that many banks give up after two meetings and then “forget about the prospect.” If a potential customer is happy with their current bank, Jim plays the long game and knows that it may take years to bring the customer over. However, in these cases, Jim is quick to understand that target’s existing loan /line of credit maturity and renewal dates as well as the sales activity of the customer so he can benchmark it for potential expansion. Ask for the Loan and then ask again – It is not enough to just show a term sheet; you have to ask for the business. While this is an old sales cliché, Jim swears it’s true – “There gets to the point where the borrower has a term sheet and all the information to make a decision. My job is to ask for the business.” If a potential customer does not have a transaction in front of him, then Jim drives home the message about “wanting to be the first call” when the prospect is ready. Speed – “Responsiveness and short approval times will get the borrower’s respect every time,” says Jim. I look for ways to save the customer time while making sure his bank is doing everything possible to automate and streamline the loan administration process. Track Next Steps – Jim links each meeting or phone call with a set of action items or next steps complete with the responsible party. At the end of each encounter, Jim confirms and updates the 127

Sales Executive (BFSI) VILT path. Jim also provides both a checklist for loan closing documents needed and a customized timeline with each transaction. Be positive and confident – In watching Jim around borrowers, he keeps it light, fun and always positive. Jim usually comes up with a solution for almost any challenge or problem. The borrower wants to put off that refinance decision – no problem as Jim knows he needs to make the borrower feel good about the decision in order to build goodwill. It was also noted that not only did Jim not disparage other banks; he usually talked them up as if to frame it as these banks are good, but his bank is the better choice. Follow-up in writing – Jim is extremely consciences about follow up particularly changes in terms or timing. While Jim may not produce an updated term sheet, he always follows up in writing so as to build trust. Odd Hours – Jim gets a sense for if an account works early, late or weekends and then makes sure they know he is able to provide service (run loan docs over, etc.) during those hours. Jim reports that these off times allows him to build a faster working relationship and provide superior service that other banks may not be able to. Finally, we will note that Jim is one of the most well-organized bankers we know. He works “to do” lists, CRM action items and email automation with the best of them. Jim never stops learning and never stops trying to improve. Such is the methodology of a top producer.  Debt Management Skill Debt Management: Definition, Types & Examples Tammy teaches business courses at the post-secondary and secondary level and has a master’s of business administration in finance. In this lesson, we'll define debt and interest. You'll also learn three debt management strategies: budgeting, paying early and reducing high interest debt first. Define Debt Judy graduated from college a few years ago. She was immediately hired by one of the top technology firms in the United States. Her nice, plush job was accompanied by a six figure annual salary. Unfortunately, Judy did not take any financial literacy or planning classes in college, and she is in debt. Bill collectors are calling her every day, threatening to sue. Debt is money owed to a lender. 128

Sales Executive (BFSI) VILT Judy decides to meet with a debt management counselor to assist her in paying off her bills. For the rest of this lesson, we'll discuss debt management strategies such as: budgeting, paying off debt early and reducing high interest debt first. Budgeting One of the cornerstones of financial management is to budget your monthly income and expenses. Judy tells the counselor that she's never made a budget and asks if she can show her how the process works. The counselor explains to the Judy, making a budget does not need to be a complex process using complicated software. Simply purchasing a notebook and writing down monthly income and expenses will suffice. The counselor asks Judy to complete information about her monthly income and expenses. Expenses can include: a house payment, utilities, insurance, car payment, and student loan payments. After the counselor subtracts Judy's expenses from her income, she derives at her discretionary income. Discretionary income is money left over to spend on clothes, entertainment, savings and food. Judy's discretionary income was $1,000 monthly. The counselor explains to Judy, she may need to reduce her shopping sprees and apply some of the monies to reduce her debt. Pay Early As the counselor reviewed Judy's financials, she noticed she was paying more interest on her loans because of late payments. Lenders must make money when they loan money. Interest is a fee lenders charge to loan money. Payments to lenders are comprised of two parts: interest and principal, which is the amount borrowed. In the beginning of the loan, a large percentage of the payment will go toward interest. For example, Judy borrowed $50,000 with a seven percent interest rate to be paid back in six years, her payment was $852.00. $560 is applied to the principal to reduce the amount she borrowed. Therefore, $49,440 ($50,000 - $560) is her new balance after making the first payment. The other amount of the payment, $292, goes to the lender. Since interest is accrued periodically (sometimes daily or monthly), if she made her payment earlier than the due date, she could reduce the interest and therefore reduce the total amount owed over the life of the loan. Early payments will also decrease the time she pays on the loan. Pay More 129

Sales Executive (BFSI) VILT The counselor explained to Judy that if she made the payment on time, she could use the money she typically pays in late fees and apply it to the payment. Judy's automobile lender charges $50 each time she makes a late payment. The counselor tells her if she applies that $50 to each monthly payment, she can pay off her loan six months early and save $808 in interest.  Credit Counseling and Financial Advice Skills What is credit counseling? Credit counseling is a professional service that assists people in getting out of credit card debt. The process starts with a financial consultation. The counselor reviews your finances and helps you understand the options you have for getting out of debt as quickly as possible. If you can’t pay off your balances on your own, they can also help you enroll in a debt management program (DMP). In this case, the credit counseling agency acts as a go-between for you and your creditors. They set up a repayment plan that everyone can agree on. Then they negotiate to reduce or eliminate interest charges. These services are also called debt counseling and financial counseling. The terms are roughly interchangeable. Types of counseling services There are two types of credit counseling – for-profit and non-profit. The difference between the two is how they earn revenue. For-profit agencies earn revenue through fees. That means their plans tend to be more expensive for the consumer. By contrast, non-profit agencies are supported through grant money. Credit card companies provide grants to non-profit agencies can help their customers get out of debt. This means lower fees for the consumer. In fact, non-profit agencies offer a one-time evaluation entirely for free. They only apply fees to set up and run a debt management plan. For most people who are struggling to achieve stability, non-profit counseling is the better option. You pay fewer out-of-pocket costs, which can be helpful. That last thing you need right now is a big bill. If you’re looking for a non-profit counseling organization, we can help. Debt.com only refers people to the best accredited non-profit consumer credit counseling services. Connect with a certified credit counselor from a nonprofit organization now to get a free debt analysis. How does credit counseling work? The nonprofit version. Step 1: Take advantage of your free credit counseling session 130

Sales Executive (BFSI) VILT A common problem when people face financial challenges is that they don’t know what solutions to use to overcome them. Until you get into debt, you don’t know all the options available to get out of it. Certified credit counselors understand all the solutions available. So, they can help you assess which one is right for your unique financial situation. Although you can start the process online by filling out a form detailing your situation, a credit counseling session is usually done over the phone. First, the counselor will gather the information about your financial situation To start the process, the counselor will ask for some basic information about your financial situation. This includes: a. Your income b. Current debts, including secured loans like your mortgage or auto loan c. Monthly expenses – i.e. groceries, gas, entertainment, subscriptions… everything in your budget d. Current balances on your credit cards, as well as the APR on each account e. Other obligations, such as payday loans and unpaid medical bills Next, you’ll authorize a credit check To complete the picture of your finances, the counselor will aks to run a credit check. This allows them to review your report to see if you have collections or other items of note. This is a “soft” inquiry, so it does not impact your score. Then they’ll review your options Once they have a good picture of your finances, the counselor makes recommendations for debt relief. This can include: a. Balance transfers b. Consolidation loans c. Debt management programs d. Debt settlement e. Bankruptcy Nonprofit counselors are required to review ALL your options. Finally, the credit counselor will make a recommendation They only recommend the best solutions for your situation. In other words, nonprofit agencies don’t try to “sell” their program. This makes counseling the best way to find a solution that fits your needs. You can get an unbiased, expert opinion about what you need to do to take control of your finances. You can ask questions about different solutions and learn how to minimize things like credit damage. Step 2: Debt management program enrollment 131

Sales Executive (BFSI) VILT Both for-profit and nonprofit agencies can help you enroll in a debt management plan. Nonprofit organizations only recommend a program if it’s the best option for you; otherwise, they tell you where to go. If a DMP is the right option, you can enroll through the same agency that evaluated you in Step 1. Here’s what you can expect: First, you decide which accounts you wish to include in your plan Enrollment in consumer credit counseling is 100% voluntary, so there’s no requirement to include all your cards. Most counselors will tell you to include everything. However, some people decide to leave a card out of the program for emergencies; if you decide to include that account later, you can talk to your counselor to add it in. All accounts included in the plan will be frozen during your enrollment. Find a monthly payment that works for your budget Together, you set a monthly payment you can afford to make. This single payment will cover all the accounts that you include in your DMP. The counselor will also help you set up a formal budget if you don’t have one already. The goal is to ensure you can comfortably afford your monthly payments and your other expenses, so you won’t have any issues living without relying on plastic. Next, the credit counseling team negotiates with your creditors Your counselors will reach out to each of your creditors. They have three goals: 1. Make sure your creditors agree to accept payments through the counseling organization. 2. Reduce or eliminate APR applied to your account. 3. Stop all penalties and fees. This will help prioritize which balances get paid off first. Each creditor must sign off to include their account in the program. You will receive acceptance letters from each creditor saying they agree to the terms of your plan. Once all creditors sign off, your DMP officially starts You make one monthly payment to the counseling organization, then they distribute the payment to your creditors as agreed. Payments are usually handled through Direct Debit from your checking account. It’s rare that an agency will accept payments online or by check. However, you usually have access to an online portal that tracks your progress and provides more information if you encounter any trouble. You still Stop struggling to pay back everything you owe! See if a DMP can help you get out of debt fast to save your credit and minimize interest charges. Step 3: Helping you learn better financial habits during enrollment 132

Sales Executive (BFSI) VILT Your organization should also provide free resources you can use to build financial literacy. The goal is to help you learn how to avoid financial hardship in the future and plan for long-term financial stability. You should receive information on how to budget, save, plan for financial challenges. The idea is that the counseling team helps you become a better money manager. That way, once you get out of debt, you can stay that way. If you run into trouble during your program, you can talk to the counseling team to make special arrangements. They may be able to help you make arrangements to delay your payment without jeopardizing your plan entirely. They are basically there to be a financial coach and provide assistance to ensure you can graduate from your plan successfully. What do credit counseling services do? What can a credit counseling organization do? 1. Answer questions about various options for relief 2. Assist you in identifying the right solutions for your needs 3. Help you eliminate your existing credit card balances a. This also includes other unsecured debts, such as unpaid medical bills and payday loans 4. Eliminate the hassle of collection calls. Once you enroll, you can pick up the phone and tell them you’re working with an agency. Collectors must then go through the agency. 5. Provide resources to build financial literacy 6. Teach you how to budget and manage credit effectively 7. Help you establish long-term financial stability What can’t it do? 1. Repair your credit (that’s a different service) 2. Provide immediate debt forgiveness – DMPs take about 36 to 60 payments, on average. 3. Settle your accounts for less than you owe; they can direct you to debt settlement services, but they can’t help you enroll in a settlement program. 4. Provide direct assistance for other types of debt – mortgage, back taxes or student loans; however, they can refer you to other service providers. 5. Stop existing court actions regarding your debt – if a collector already sued you and won, the ruling stands. When would you use credit counseling? Enrolling in a DMP through a credit counseling agency is not a magic cure-all. It won’t work in every situation for every type of debt. Even when it comes to unsecured debt, you need a specific set of circumstances for this to work. Those circumstances are pretty broad, but they don’t apply to everyone. 1. You must have at least $5,000 in unsecured debt. If you owe less than that, use a DIY solution. 133

Sales Executive (BFSI) VILT 2. You must have at least some income to make a reduced monthly payment. If you’re unemployed, this solution won’t work. 3. Most of your accounts need to be with the original credit issuer. In other words, if all your balances are charged-off, you may be better off with settlement. Although you may be able to include collections in a DMP, collectors are less likely to sign off. In addition, collection accounts have no interest charges, so you lose one of the benefits of counseling (interest rate negotiation) 4. Most of your financial challenges should be caused by credit cards. So, for instance, if most of your debts are unpaid medical bills, you don’t get any benefit from interest rate negotiation. In this case, you should work out repayment plans or settlements with the original service providers. Will credit counseling hurt my credit? Your credit score is not a factor in qualifying for credit counseling. The initial consultation, even with a credit check, won’t affect your score. There is no minimum score requirement to enroll in a debt management plan. In addition, when done correctly the program has either a neutral or positive effect on your credit. In other words, if you still have good or excellent credit, this program won’t set you back. It’s also worth noting that working with debt counselors won’t negatively impact your ability to qualify for new financing. Even if you enroll in a DMP, you can still get approved for loans, such as a mortgage or an auto loan. You can’t open new credit accounts during enrollment. How to spot a nonprofit credit counseling scam? 1. They charge upfront fees before they perform any actual service – this is how you spot any relief scam, even for settlement. According to federal regulations, companies cannot charge fees until they provide some form of actual relief. 2. They guarantee to improve your credit score by a certain number. Although data shows successfully completing a debt management program can improve people’s scores, there is no guarantee. Results vary based on where you started when you enrolled and what negative penalties you incurred prior to enrollment. 3. They tell you to do something illegal. A certified credit counselor will never tell you to try and create a new identity to get away from your old debt. Companies that advise people to get a new social security number or Employer Identification Number (EIN) are scams! Counselors won’t even advise that you run or hide from creditors or collectors; they help you find ways to face your challenges directly. 4. They try to drive you into signing up for a specific solution. Nonprofit agencies must advise a client of ALL the available paths to take to become debt-free and only recommend the best solution. If an agency pushes you to enroll in their DMP, they’re not following nonprofit counseling organization rules. 134

Sales Executive (BFSI) VILT Is there any advantage of for-profit counseling services? This really depends on the agency you work with and what they offer. In some cases, a for-profit company pairs counseling and credit repair. To do this legally, that means that they have both certified credit counselors and state-licensed credit repair attorneys on staff. In this case, they help you eliminate your debt and then help you dispute any lingering mistakes in your report. Other for-profit agencies may continue to work with you to improve your financial outlook. These agencies trend more towards financial counseling, rather than just credit or debt counseling. They add components of financial planning into the mix, which help you build better long-term strategies. However, outside of these types of package services, there is little difference with the actual debt management service provided. If money is already tight and you can’t afford the bills you have now, there’s little reason to add another. You’re usually better off going through a nonprofit organization to keep fees low and ensure your plan is affordable.  Marketing Skills What are Marketing Skills? Promoting any product, service, or idea encompasses many different marketing skills and personal qualities:  The process begins with analyzing your audience and defining their perceptions of your product, service or idea.  Identifying those features or aspects of what you are marketing that will be most appealing to your audience is essential.  Verbal, writing and public speaking skills, when refined, will help you to convey your pitch clearly, and creativity will help you to capture the attention of your audience. Types of Marketing Skills Here are some of the most important marketing-skills clusters. Consider how you can incorporate more of these skills into your marketing efforts in order to enhance your value to an employer. Communication Marketing is a form of professional communication since it consists of communicating to the public why they should buy or otherwise engage with whatever is being marketed. Often, this will take the form of writing, from crafting ad copy to creating scripts for TV spots or phone conversations. It might involve creating multimedia campaigns, understanding design, and having a general sense of who the end user is and what they want. 135

Sales Executive (BFSI) VILT Verbal communication is important as well, both for positions that involve speaking directly with potential buyers and those that do not. Since marketing is often a team effort, marketers must be able to communicate effectively within their own team and within their company.  Collaborating with designers to create logos  Composing concise promotional copy  Composing marketing emails  Composing direct marketing communications  Constructing consumer surveys  Developing rapport with clients  Interviewing sales staff to gauge customer responses to brands  Listening  Proposing new products and services  Sales  Selecting and training brand ambassadors  Soliciting feedback from customers  Storytelling  Writing reports  Writing executive summaries  Writing press releases Public Speaking When coming up with a new campaign or marketing initiative, you likely will need to pitch your ideas to your clients or colleagues by making a presentation at a meeting. Some forms of marketing also involve making presentations to large groups of potential buyers. You must be comfortable speaking in front of groups, and you should be able to handle questioning on-the-spot and to manage presentation software, such as PowerPoint or Prezi.  Attention to detail  Conducting focus groups  Demonstrating products  Educating sales staff regarding brand viability  Facilitating focus groups  Facilitating meetings and discussions  Leadership  Pitching marketing plans to group  Presenting to groups Analytical Thinking Marketing requires a lot of research-based analysis to determine what the audience wants and needs, and a lot of careful strategy crafted around that analysis. Marketers often have to change 136

Sales Executive (BFSI) VILT course based on new information, and should be able to draw logical conclusions based on data and other information received.  Analyzing consumer survey data  Analyzing consumer demographics and preference  Applying principles of differentiation to marketing plans  Applying principle of segmentation to marketing cases  Applying strategies for targeting to marketing projects  Calculating appropriate retail pricing for products  Completing analyses of competitors / competitive analysis  Conducting market research  Conducting media research  Conducting SWOT analyses  Critical Thinking  Defining target audiences  Devising marketing plans  Evaluating the validity of research  Financial analysis  Monitoring industry trends  Planning promotional events  Planning distribution of products  Quantitative Skills  Researching and selecting media outlets for advertising / promotion  Retail site selection  Solving marketing problems using qualitative analysis  Statistical skills Creativity Marketers need to be able to think of new and exciting ideas to appeal to their clients and to the target demographic to keep from becoming stale. From having an eye for design to coming up with amusing concepts, the ability to think outside the box is crucial.  Aesthetic sensibility  Brainstorming themes for advertisements  Developing concepts for new products  Devising press releases  Devising rewards and loyalty programs  Evaluating product packaging options  Event planning  Writing advertising copy Negotiation 137

Sales Executive (BFSI) VILT Negotiation is an undervalued skill in marketing. From negotiating with clients on budgets, timelines, and expectations, to working with designers and vendors, the ability to drive a hard bargain is a big part of success as a professional marketer.  Cutting costs  Evaluating advertising proposals  Evaluating the effectiveness of advertising campaigns  Evaluating the performance of agencies and contractors  Influencing others  Managing budgets  Negotiating rates and terms  Results-oriented  Setting prices to maximize profit and sales volume Stress Management Marketing is one of the most stressful career options you can choose; deadlines are demanding, and many things can go wrong at the last minute. To be a good marketer, you need to be able to handle stress without panicking.  Conforming to deadlines  Organizational skills  Problem-solving  Processing criticism about campaigns  Resiliency  Responding to threats to brands  Time management Technology Finally, technology skills are essential for your success. From using project management software to track the progress of a key campaign to using analytic programs to measure the success of social media campaigns, comfort with complicated suites of varying programs is required. You'll also likely be required to use certain systems to create marketing campaigns, depending on how digital and/or mobile your marketing will be.  Determining keywords for search engine optimization strategies  Developing social media strategy  Email marketing  Facility with customer relations management software  Manipulating statistical packages  Microsoft Excel  Reviewing websites for examples of promoting products / services  Utilizing presentation software 138

Sales Executive (BFSI) VILT More Marketing Skills Here are more marketing skills for resumes, cover letters, job applications, and job interviews. Required skills will vary based on the job for which you're applying, so also review our list of skills listed by job and type of skill.  Aesthetic sensibility  Analyzing consumer survey data  Collaborating with designers to create logos  Completing analyses of competitors  Composing concise promotional copy for Twitter  Composing marketing emails  Conducting focus groups  Conforming to deadlines  Constructing consumer surveys  Creative  Critical thinking  Cutting costs  Defining target audiences  Demonstrating products  Detail oriented  Determining keywords for search engine optimization strategies  Developing social media strategy  Developing concepts for new products  Devising press releases  Devising rewards and loyalty programs  Educating sales staff regarding brand viability  Evaluating advertising proposals  Evaluating the performance of agencies and contractors  Evaluating product packaging options  Facilitating meetings and discussions  Facility with customer relations management software  Financial analysis  Influencing others  Interviewing sales staff to gauge customer responses to brands  Leadership  Listening  Managing budgets  Manipulating statistical packages  Microsoft Excel  Monitoring industry trends  Negotiating rates and terms 139

Sales Executive (BFSI) VILT  Organizational  Planning promotional events  Planning distribution of products  Problem Solving  Processing criticism about campaigns  Presenting to groups  Quantitative  Researching and Selecting media outlets for advertising/promotion  Resiliency  Responding to threats to brands  Results oriented  Retail site selection  Reviewing website models for promoting products/services  Sales  Selecting and training brand ambassadors  Setting prices to maximize profit and sales volume  Soliciting feedback from customers  Statistical  Stress management  SWOT analysis  Storytelling  Time management  Utilizing presentation software  Writing reports  Writing advertising copy 140

Sales Executive (BFSI) VILT Chapter 7 SALES ACCELERATION STRATERGY  Getting Started What is sales acceleration and the best tools to use? Today’s sales cycle is complicated regardless of the product or industry. And as a result, it’s increasingly more challenging for sales reps to create engaging experiences on the behalf of the customer. Fortunately, sales teams and organizations have sales acceleration tools and processes on hand to boost and simplify their sales cycles. And ultimately, these types of tools and processes are designed to help sales reps have better sales conversations and close deals faster. In this article, we’ll take a comprehensive look at the definition of sales acceleration and the tools your sales team needs to close more deals and win the hearts of customers. What is sales acceleration? Sales acceleration is a function of sales enablement — sales acceleration utilizes data and other statistical insights to lay the groundwork for sales reps so they can navigate sales cycles and funnels more efficiently and effectively. In turn, this boosts and “accelerates” the productivity of your sales team, and of course, this accelerates the revenue of your company. One of the most essential factors in sales acceleration is sales enablement. Rather than monitor the overall activity of sales, sales acceleration (as well as enablement) instead shifts focus to building and nurturing relationships with buyers. Because when sales reps build relationships with customers, they’re able to identify patterns and preferences — and then translate this information into tangible data, so your customers can then be documented accordingly within your CRM, so you can deliver the best, most tailored experience. To make your sales acceleration strategy feasible, your sales team needs integrated technology solutions that are versatile, comprehensive, and effective. Sales acceleration technologies To make sales acceleration effective, you need technology and software that will help sales reps close deals at a faster-than-average pace. These types of solutions ideally should provide detailed insights that both the sales and marketing team can leverage to create memorable 141

Sales Executive (BFSI) VILT content and customer interactions. Plus, you want the software solutions to connect the insights with customer indicators (e.g. search results, queries, or demo requests) and use this to seal the deal. When push comes to shove and you need to select the best acceleration platform for the job, be sure to consider the following:  Email service — One of the most invaluable tools you have at your disposal is email, and email is a crucial component of sales acceleration and automation. It’s important to know that a majority of automation software today will provide an automatic email sending service. The service itself will automate campaigns that are based on predetermined events that act as a trigger. From there, you can track all levels of engagement, and strategies can also be built and elaborated on based on the success of email campaigns.  Research tools — While the value of quantitative data should never be underestimated, qualitative information (like research findings and supportive articles) also has its place in space. Having access to qualitative data will arm sales reps with everything they need to prepare for productive communications.  Quote-to-cash solutions — Quote-to-cash solutions help sales reps efficiently create sales quotes based on a pre-determined pricing structure or guideline. Having a quote-to-cash solution helps reps overcome any sales-related hurdles by showing them potential customer savings early on in the sales process, removing the risk factor for slower-moving customers.  Real-time alerts — In today’s world, arming your sales reps with real-time alerts is essential. Having something as simple as this helps alert your reps to customer events as they happen, so they can make the most of the work hours in their day.  Lead databases — Most companies collect data in a CRM system, but nowadays you have to dig as deep as possible in order to drive future lead generation. Lead databases can help bolster your CRM system and convert more customers. Plus, this type of sales acceleration software will qualify prospective customers based on your reps’ actual, tried-and-true criteria. So once the potential customer has gone through the qualification process, the data is then double-checked and filtered so that only the highest qualified leads remain.  Content creation — No matter who your prospect is, you want your content to look and feel as though it’s custom-made to fit their wants and needs. So you’ll need a program or tech that provides customization (without going off-brand). Because whether the content is as simple as an infographic or long and detailed like an ebook, your reps need it to reflect the customer accurately. What is the best sales acceleration solution for B2B & B2C industries? Keep in mind, (with sales acceleration tactics) the faster your sales reps can establish a connection and build a relationship with a prospect, the quicker the sales journey will be, which can also increase the chances of a repeat customer. 142

Sales Executive (BFSI) VILT At a granular level, what’s best for your business likely changes on a daily basis. However, from a high-level overview, it’s easy to see the overlap and recognize that, well, content is king as it helps bridge the gap between communication styles and preferences no matter if you’re B2B or B2C. Content helps you build trust and reinforce your authority. So, when it comes to choosing the best solution that will absolutely work for both businesses to business and business to customer sales acceleration, you should always be looking toward content-based solutions. The best sales acceleration software Now we are going to look at some of the best solutions when it comes to sales acceleration software. On this list, you will find everything from CRM systems to sales enablement tools. While alone these tools are great, in the hands of an amazing sales and marketing team, the possible increase in sales figures is unimaginable. Lead Connect Lead Connect is a great piece of software as far as sales acceleration tools go. Lead Connect is a tool that unifies your LinkedIn workflow, and it allows you to produce leads from LinkedIn by automatically searching through the catalog of profiles. Using Lead Connect has been shown to increase productivity with sales reps as it generates warm prospects with ease. Lucidpress With over 7 million users, Lucidpress is a brand templating platform that empowers teams or individuals to easily create professional marketing content and sales enablement collateral. If you are looking for a solution to develop templates and customizable content (both for digital distribution or print), Lucidpress could be the right solution for you. While the concept is simple, the solution is beautiful — Lucidpress helps reduce pressure and work requests from your creative team and really gives your content a new lease of life. Tout App Looking at an email tracking tool that helps sales reps nurture leads? Check out Tout App. Tout App provides users with real-time insight and data regarding the engagement of all email campaigns. Tout App lets you know whether the email has been opened, deleted, clicked, or even marked as spam. This handy piece of software offers analysis on client calls, calendar events, and your CRM data — and can then be converted into raw data. Groove Groove helps you analyze all of your Salesforce data in one location. The great thing about Groove is compact and can be easily integrated with Gmail. So you don’t need to go anywhere but your inbox to access important information. 143

Sales Executive (BFSI) VILT Lead Squared Lead Squared takes your lead creation efforts and ensures that they won’t go to waste. The tech utilizes automation, customer relationship management (CRM) integration, and AI prediction data to help your reps make the most of the leads you’ve got. The Lead Squared software has a large suite of features, including lead tracking, nurturing, and lead management. So, if you’re looking to convert leads to sales quickly, look to Lead Squared to help you get on your way. Xant Playbooks Xant Playbooks is an AI-application that assists sales reps by increasing their efficiency through predictive analytics. The technology uses pattern analysis and walks sales reps through a pre-set group of custom strategies. From there, reps are able to gain insights that assist them in closing — the important sales cues of who, what, when, where, and why, allowing reps to engage customers more effectively and efficiently. Data Fox When it comes to B2B selling, not all of the companies out there will fit your ideal customer profile — which is where Data Fox comes into play. Data Fox finds the best customer matches for your reps by leveraging artificial intelligence and advanced machine learning. Data Fox searches a smattering of data sources to identify prospects that are most likely to respond to a sales rep’s outreach. Sales acceleration: the wrap-up Well, that was an ear-full, to say the least. But if there’s one thing takeaway you should glean, it’s that the right tools can make all the difference in ensuring the success of a sales acceleration strategy. So whether you need a brand templating platform to equalize the workload between teams (not to mention give your sales team the enablement collateral they need), or you’re in need of an AI solution to help you analyze leads, let our guide lead the way.  Active Listening Skills - Listen with A Purpose Active Listening Skills: Definition and Examples Communication skills are beneficial in and out of the workplace. Having the ability to clearly communicate instructions, ideas and concepts can help you find success in any career. With practice, anyone can develop their communication skills. One of the most critical skills in effective communication is active listening. Developing this soft skill will help you build and maintain relationships, solve problems, improve processes and retain information such as instructions, procedures and expectations. 144

Sales Executive (BFSI) VILT To help you understand active listening skills and learn how to improve your own, consider the following background and examples. What is active listening? Active listening is the ability to focus completely on a speaker, understand their message, comprehend the information and respond thoughtfully. Unlike passive listening, which is the act of hearing a speaker without retaining their message, this highly valued interpersonal communication skill ensures you’re able to engage and later recall specific details without needing information repeated. Active listeners use verbal and non-verbal techniques to show and keep their attention on the speaker. This not only supports your ability to focus but also helps ensure the speaker can see that you are focused and engaged. Instead of thinking about and mentally rehearsing what you might say when the speaker is done, an active listener carefully considers the speaker’s words and commits the information to memory. Why is active listening important in the workplace? Whether you’re seeking a new job opportunity, striving to earn a promotion or working to improve in your current role, improving your active listening skills will help you succeed. Much like critical thinking and conflict resolution, this soft skill will help increase your value as an employee. Here are several benefits of being an active listener: It helps you build connections Active listening helps others feel comfortable sharing information with you. When you demonstrate your ability to sincerely listen to what others have to say, people will be more interested in communicating with you on a regular basis. This can help open up opportunities to collaborate with others, get work done quickly or start new projects. All of these things can help lead you to success in your career. It helps you build trust When people know they can speak freely to you without interruptions, judgment or unwelcome interjections, they’ll be more likely to confide in you. This is especially helpful when meeting a new customer or business contact with whom you want to develop a long-term working relationship. It helps you identify and solve problems Actively listening to others will help you detect challenges and difficulties others are facing or problems within projects. The more quickly you’re able to spot these issues, the sooner you can find a solution or create a plan to address it. 145

Sales Executive (BFSI) VILT It helps you increase your knowledge and understanding of various topics Great employees are always striving to learn something new and grow their knowledge base. Because active listening helps you retain information, it will also help you better understand new topics and remember what you’ve learned so you can apply it in the future. It helps you avoid missing critical information Because active listeners are highly engaged with the speaker, they’re able to recall specific details. This is especially important when the speaker is proving instructions, training you on a new process or delivering a message you’re responsible for passing along to others. Examples of active listening skills Here are a variety of active listening exercises you can use to help improve your interpersonal communication skills. Verbal active listening skills  Paraphrase. Summarize the main point(s) of the message the speaker shared to show you fully understand their meaning. This will also give the speaker an opportunity to clarify vague information or expand their message. Example: “So what you’re saying is that your current content management system no longer meets your teams’ technical needs because it doesn’t support large video files.”  Ask open-ended questions. Ask questions that show you’ve gathered the essence of what they’ve shared and guide them into sharing additional information. Make sure these questions cannot be answered with a simple “yes” or “no”. Example: “You’re right—the onboarding procedure could use some updating. What changes would you want to make to the process over the next six months?”  Ask specific probing questions. Ask direct questions that guide the reader to provide more details about the information they’ve shared or narrow down a broad subject or topic. Example: “Tell me more about your current workload. Which of these projects is the most time consuming?”  Use short verbal affirmations. Short, positive statements will help the speaker feel more comfortable and show you’re engaged and able to process the information they’re providing. Small verbal affirmations help you continue the conversation without interrupting the speaker or disrupting their flow. Example: “I understand.” “I see.” “Yes, that makes sense.” “I agree.”  Display empathy. Make sure the speaker understands you’re able to recognise their emotions and share their feelings. By showing compassion rather than just feeling it, you’re able to connect with the speaker and begin establishing a sense of mutual trust. Example: “I’m so sorry you’re dealing with this problem. Let’s figure out some ways I can help.”  Share similar experiences. Discussing comparable situations will not only show the speaker you’ve successfully interpreted their message but it can also assist in building relationships. If 146

Sales Executive (BFSI) VILT the speaker has shared a problem, providing input from how you solved similar challenges is valuable to others. Example: “I had a tough time getting started with this programme too. But it gets much easier. After just a few weeks, I felt completely comfortable using all the features.”  Recall previously shared information. Try to remember key concepts, ideas or other critical points the speaker has shared with you in the past. This demonstrates you’re not only listening to what they’re saying currently, but you’re able to retain information and recall specific details. Example: “Last week you mentioned adding a more senior coordinator to help with this account, and I think that’s a great idea.” Non-verbal active listening skills  Nod. Offering the speaker a few simple nods shows you understand what they’re saying. A nod is a helpful, supportive cue, and doesn’t necessarily communicate that you agree with the speaker—only that you’re able to process the meaning of their message.  Smile. Like a nod, a small smile encourages a speaker to continue. However, unlike a nod, it communicates you agree with their message or you’re happy about what they have to say. A smile can take the place of a short verbal affirmation in helping to diffuse any tension and ensure the speaker feels comfortable.  Avoid distracted movements. Being still can communicate focus. To do this, try and avoid movements like glancing at your watch or phone, audibly sighing, doodling or tapping a pen. You should also avoid exchanging verbal or non-verbal communications with others listening to the speaker. This can make the speaker feel frustrated and uncomfortable.  Maintain eye contact. Always keep your eyes on the speaker and avoid looking at other people or objects in the room. Just be sure to keep your gaze natural, using nods and smiles to ensure you’re encouraging them rather than making the speaker feel intimidated or uneasy. By implementing the above verbal and non-verbal techniques into future conversations, you can work towards developing stronger relationships and retaining more information from your workplace interactions. Active listening takes practice to improve and maintain. The more you use these techniques, the more natural they’ll feel.  Listening V/S Hearing Listening vs. Hearing 147

Sales Executive (BFSI) VILT Listening or Hearing Hearing is an accidental and automatic brain response to sound that requires no effort. We are surrounded by sounds most of the time. For example, we are accustomed to the sounds of airplanes, lawn mowers, furnace blowers, the rattling of pots and pans, and so on. We hear those incidental sounds and, unless we have a reason to do otherwise, we train ourselves to ignore them. We learn to filter out sounds that mean little to us, just as we choose to hear our ringing cell phones and other sounds that are more important to us. Figure 4.1 Hearing vs. Listening Listening, on the other hand, is purposeful and focused rather than accidental. As a result, it requires motivation and effort. Listening, at its best, is active, focused, concentrated attention for the purpose of understanding the meanings expressed by a speaker. We do not always listen at our best, however, and later in this chapter we will examine some of the reasons why and some strategies for becoming more active critical listeners. Benefits of Listening Listening should not be taken for granted. Before the invention of writing, people conveyed virtually all knowledge through some combination of showing and telling. Elders recited tribal histories to attentive audiences. Listeners received religious teachings enthusiastically. Myths, legends, folktales, and stories for entertainment survived only because audiences were eager to listen. Nowadays, however, you can gain information and entertainment through reading and electronic recordings rather than through real-time listening. If you become distracted and let your attention wander, you can go back and replay a recording. Despite that fact, you can still gain at least four compelling benefits by becoming more active and competent at real-time listening. You Become a Better Student When you focus on the material presented in a classroom, you will be able to identify not only the words used in a lecture but their emphasis and their more complex meanings. You will take better notes, and you will more accurately remember the instructor’s claims, information, and conclusions. Many times, instructors give verbal cues about what information is important, specific expectations about assignments, and even what material is likely to be on an exam, so careful listening can be beneficial. 148

Sales Executive (BFSI) VILT You Become a Better Friend When you give your best attention to people expressing thoughts and experiences that are important to them, those individuals are likely to see you as someone who cares about their well- being. This fact is especially true when you give your attention only and refrain from interjecting opinions, judgments, and advice. People Will Perceive You as Intelligent and Perceptive When you listen well to others, you reveal yourself as being curious and interested in people and events. In addition, your ability to understand the meanings of what you hear will make you a more knowledgeable and thoughtful person. Good Listening Can Help Your Public Speaking When you listen well to others, you start to pick up more on the stylistic components related to how people form arguments and present information. As a result, you have the ability to analyze what you think works and doesn’t work in others’ speeches, which can help you transform your speeches in the process. For example, really paying attention to how others cite sources orally during their speeches may give your ideas about how to more effectively cite sources in your presentation.  Telephonic Etiquettes A Guide to Phone Etiquette: Definition, Tips and Impact Communicating over the phone remains an important tool for businesses. Despite digital customer service communication advancements including email, texting and automated answering services, customers continue to use the telephone as their initial point of contact. Phone calls are often the first positive impression a client or customer will have of your business. This article will discuss tips to improve the quality of your phone calls and why phone etiquette is important. What is phone etiquette? Phone etiquette is the way you use manners to represent yourself and your business to customers via telephone communication. This includes the way you greet a customer, your body language, tone of voice, word choice, listening skills and how you close a call. Why is phone etiquette important? Identifying the tools to achieve proper phone etiquette can help your business to:  Show professionalism: Whether you are a start-up or a well-established business, you and your representatives know your business best. Communicating your working knowledge to your callers using telephone manners should establish you as professionals worthy of repeat business dealings. 149