Meet the Kolkata MFD who has built a Rs.500-crore distribution business using his taxation knowledge
Praveen Khemka, a Kolkata-based MFD, began by offering ELSS funds to his tax clients and grew to managing over Rs. 500 crore AUM. His success stems from client education, referrals, strong engagement, and a deep understanding of taxation. Supported by NJ Wealth’s tools and training, Praveen built a sustainable, next-generation-ready distribution business.
Original article published on Oct 31, 2025 in Cafe Mutual.
(https://cafemutual.com/news/tarraki/36100-meet-the-kolkata-mfd-who-has-built-a-rs500-crore-distribution-business-using-his-taxation-knowledge)
The experience and wisdom of seasoned mutual fund distributors (MFDs) often serve as invaluable lessons for newcomers to the business. One such story is that of Kolkata-based MFD Praveen Khemka of SPK Finserve, who began his journey by selling only ELSS funds alongside his tax consultancy practice. Today, he manages over 1,000 clients with assets of over Rs. 500 crore.
In this candid conversation, Praveen shares how he entered the distribution business, his approach to client engagement and how NJ Wealth played a pivotal role in supporting his growth.
Entering the mutual fund distribution business
Praveen began his professional journey as a tax consultant. However, after seeing many clients suffer due to mis-selling, he decided to start offering mutual funds to guide them in the right direction.
He began by recommending ELSS funds to his tax clients, primarily for their tax-saving benefits and gradually expanded to other asset classes. Along the way, he enrolled with NJ Wealth, where he received structured training on mutual fund products and asset allocation strategies.
"I am deeply thankful to NJ Wealth for their support and guidance throughout my journey," says Praveen.
Though the initial years were challenging due to a smaller AUM base, Praveen's perseverance paid off. Over time, as his clients began to see consistent returns over a five-year period, his business grew steadily.
He adds that his background in tax consultancy gives him unique access to clients' financial situations, helping him design portfolios aligned with their liquidity needs and long-term objectives.
Growing the client base
Praveen attributes much of his business growth to referrals and word-of-mouth publicity. "Satisfied clients are the best marketing asset," he says.
He guides his fellow MFDs to remain patient with clients who have unrealistic expectations and to educate them gradually on market cycles and achievable returns. He also asks MFDs to educate themselves about taxation to understand the opportunity cost of investments in a more detailed manner.
To reach a wider audience, Praveen has also embraced digital marketing. His firm uses SEO tools to rank higher in Google searches related to mutual fund distributors in his region.
He also posts short educational videos on social media, explaining the basics of investing.
How to approach HNIs
About 65% of Praveen's client base is HNIs. When asked about the most important things an MFD should keep in mind while dealing with the affluent investors, he shares that HNIs require more hand holding from MFDs. He asks MFDs to be patient and says that a good connection with an HNI client may sometimes take years to convert to sales. In the meantime, he guides distributors to stay in touch with such clients through WhatsApp, mailers, face-to-face meetings whenever possible.
He shares that adding other services besides mutual fund distribution like tax consultation, preparing for succession can also help MFDs to get in touch with affluent clients.
Referral strategy
Praveen recommends that MFDs should actively ask for referrals during portfolio reviews — especially when clients express satisfaction or when markets are performing well.
"I prefer to ask for referrals orally when clients appreciate our service or portfolio results. That's when they're most likely to recommend you," he shares.
Client retention and engagement
To keep clients informed and engaged, Praveen sends out a periodic newsletter covering market updates, investment insights and educational content such as the do's and don'ts of investing.
He also ensures at least one face-to-face meeting in a year with each client and their family to build stronger relationships and trust.
Need-based investment guidance for business clients
A large portion of Praveen's clients are business owners with irregular income flows. To manage this, he focuses on maintaining SIP continuity while using lump-sum top-ups during periods of surplus income.
"For my business clients, I divide SIPs into different durations to ensure that even during liquidity crunches, long-term SIPs continue — helping them benefit from compounding," he explains.
Portfolio review strategy
Praveen conducts portfolio reviews on a semi-annual basis. During portfolio reviews, Praveen discourages clients from reacting to short-term underperformance.
"I tell them to evaluate the average performance over a medium to long period rather than focusing on short-term fluctuations," he says.
He adds that portfolio reviews should go beyond fund selection — MFDs must revisit client objectives and track progress against them to ensure alignment with life stages and financial objectives.
Role of NJ Wealth
Praveen credits NJ Wealth for providing strong support and value-added tools.
He highlights the "delay calculator", which demonstrates the impact of missed SIPs or delayed investments on long-term wealth building. He also appreciates features such as inflation-adjusted investment and objective calculations, training sessions for MFDs, and succession planning guidance.
"NJ's ecosystem has been instrumental in helping me grow and serve clients better," he says.
Carrying on the distribution legacy
Praveen takes immense pride in the fact that his son has joined the family business, continuing the legacy of financial guidance.
He guides senior MFDs not to pressure their children to enter distribution but to highlight the long-term potential of the profession. "The next generation needs encouragement and mentorship so they don't give up early due to lower AUM in the beginning," he explains.
He also recommends that older distributors register their ARNs under their firm's name to ensure a smooth transition.
As a practical learning approach, Praveen encourages young aspirants to start their own SIPs to experience the process firsthand. "When my son started his SIP and trained with NJ, he began pitching SIPs to his friends — and that's how he developed his confidence as an MFD," he shares proudly.