Though Shalab Gupta Bibhab was born with a silver spoon, he always aspired to carve his independent career which has been close to his heart.
If you have visited Agra, you would have come across many high-rise buildings developed by the Bibhab group. Shalab’s great grandfather Late Deoki Nandan Bibhab was a freedom fighter who ventured into real estate development in 1945. In fact, he was associated with Pandit Jawaharlal Nehru and was a member of the legislative for 20 years. Late Deoki Nandan Bibhab’s legacy into real estate is now being carried forward by their next generation. Over the years, his family has branched out into different businesses like tourism and education. His family operates the prestigious Prelude Public School in Agra.
Shalab’s father Dr. Sushil Gupta Bibhab wanted Shalab to take over the family’s real estate business but Shalab was drawn towards investment management and personal finance. Shalab pursued a Master’s in Commerce from Sydenham Institute of Management Studies (SIMS), Mumbai, and got placed at one of the oldest private sector fund houses in 2007 as an equity research analyst. Many of his college friends are now CIOs, sales heads and have set up their own PMS after successful corporate stints.
Shalab is grateful to his late sister Shelly Shah who convinced his family to allow him to pursue his dream. Shalab floated his mutual fund distribution practice Bibhab Capital in 2019. “My sister was diagnosed with cancer in 2011. She used to live in Ahmedabad. She passed away in 2020 January. I had discussed this idea with my sister when she was in her advanced stage of cancer. She had convinced my family to give go-ahead for his advisory practice,” remembers Shalab.
Differentiated offering
Bibhab family is well known in Agra which helped Shalab with a good base of prospects to start with. However, acquiring clients solely based on the family’s image was not a cakewalk for Shalab. “Some of my friends/acquaintances who know me well did not invest through me at the beginning. But I didn't lose hope as my offering was differentiated and had value add. Once my business was established, slowly more of my acquaintances/friends and business partners started investing through Bibhab Capital,” says Shalab.
In 2019, Shalab vividly remembers that everyone’s portfolios were battered. Shalab thought this would be a good time to handhold prospects. He used to insist on having one-on-one meetings with prospects. In fact, he met eight clients/prospects each day. In 2020, there was a bloodbath in markets with the onset of corona-induced lockdown. Many of his friend’s businesses were badly impacted and they were looking to manage their finances better. This turned out to be the perfect opportunity for Shalab to win the hearts of his prospects. “Many people wanted to consolidate all their investments. They were looking for a new adviser/distributor who could guide them well,” recalls Shalab.
Many of his clients were also investing with banks and realised that bank RMs didn’t have clients' best interest in mind. This also helped Shalab cement relations with clients. “They realised that bankers changed jobs and cities often. They wanted someone who stays in Agra. Everyone knew that my roots are in Agra and he would not shift base to another city,” says Shalab.
Building blocks for business
While Shalab got a good launchpad, his success is largely attributed to his financial acumen, expertise and the professional practice set up by him. He has a team of four equity analysts who keep a hawks’ eye on different sectors. Their scheme selection method is robust which has benefited clients.
Right since inception, Shalab had set up robust processes to take care of client onboarding, transactions and after-sales service. He has a team of 65. His company offers a mobile app and website to clients where they can view portfolios and transact. He has a team of ten in sales and has seven office boys. To educate his clients, Shalab sends a daily financial news snippet to all his clients which keeps them updated with what is happening in markets and the economy.
Shalab’s professionalism is conspicuous by his attire. Come rain or shine, he always visits all his clients in a professional suit and tie. “I carry a natural plant with me which I gift to prospects/clients. I’m supporting an NGO. It has several kids which are studying there in Agra. These students make natural plants in pots for me. My gardeners help these kids. That leaves my brand with clients. When I walk out of the room, my plant stays with clients.”
In less than 22 months, he is managing assets under advisory of Rs 750 crore in mutual funds, making him the biggest MFD in Uttar Pradesh. He has 450 clients, majority of them being HNI, ultra HNI and corporates.
Around 50% of his treasury investments are in debt. Of the equity fund AUM, 50% is in active funds while the remaining 50% is in passive funds. “From the last several months, debt funds are yielding negative returns. Clients may think they are similar to FDs. Lately, returns from long-term debt funds have been in the negative. We are moving treasury investment to arbitrage and equity savings fund,” explains Shalab.
Indian economy poised to grow
Shalab is bullish about the prospects of the Indian economy and believes that markets will only double from the current level. His focus is on educating clients about achieving their long-term goals by helping them avoid market noise. “Rather than focusing on the market level, I ask prospects/clients when they need the money. I ask them a simple question about where they would invest if Rs 2 crore was available at their home. No one has a clear answer. The structural reforms in different sectors and move to digitalisation will build scale and increase efficiency. Everyone is converting their income into white. They have to find avenues in investing. Real estate has not performed well. Clients who stay invested in equities for at least five years will benefit immensely,” says Shalab.
Road Ahead
He is thankful for his parents and family for supporting his decision to branch out of the family business and carve his own path. Shalab attributes his success to his late sister Shelly.
Going ahead, he aspires to build a national wealth management firm that will offer in-house products to clients. Shalab hopes that he will be instrumental in playing a part in changing the image of the country from savers to investors.
