Private Wealth Management

A process-based approach for accumulating, protecting and growing our Private Clients’ wealth. Some of the ingredients of this process are:

  • Financial Diagnostic
  • Risk Management
  • Sourcing Best Fund Managers & Investment Ideas
  • Execution & Investment Performance Monitoring

Our ideology and experiences of our clients drift us towards a few key takeaways stating Essentials for achieving financial freedom:

1.      Younger the beautiful: There is no right or wrong time to enter the markets if your approach towards investing is to make it disciplined for long term. Frame a covenant at the earliest working age, stating your mindset, goals and the broader framework to manage your portfolio, while also aiming to decide upon the asset allocation, time horizon, liquidity and risk appetite. Also, create your own budget to assess monthly savings and expenditure patterns.

2.      Diversify your portfolio: Choose your investments wisely and build your portfolio taking the help of a professional investment advisor. Build it with a thorough strategy, based on your risk profile, diversifying it appropriately to make it well spread between assets.

3.      Keep it simple: Investors are often seen running after newly launched products, tailor made for individual clients, complex products involving various strategies involving derivatives etc about which they do not have complete understanding about the risks and rewards. Nonetheless, it is seen that in the long term, very rare products are able to score higher than plain vanilla products by very big margin.

4.      School of Patience and discipline: Maintain the discipline to stick to the portfolio allocation for the long term (at least five years) with periodic review. Investors have often shown panic behaviour of pulling money out of equity and shifting the same to safer bets during a downturn. After witnessing a bear market in equities, investors usually get cold feet in deploying new money.  In fact, they miss the bus when it is actually the right time to ride it for achieving superior returns in the long run. Also, investing regularly helps then with rupee cost averaging which is a powerful tool for building long term wealth.

5.      Maintain liquidity: One in hand is better than two in bushIt is advisable to keep some fixed amount as an emergency fund in the bank or in liquid funds. Investments that block your money for over five years (ofcourse barring, ELSSs or PPFs) should be done very carefully. Afterall, if you do not get your money when you need it the most, it doesn’t serve the right purpose.

6.      Repayment before Fresh investments: Make sure you pay off your debts first before starting any investment journey. It is advisable not to take excessive new loans unless until they are really important like student loans, business expansion etc. Getting away from high interest credit card loans etc is a must to avoid getting trapped.

7.      Your life and is more important than your car: Just as we pay the cost of insuring our car till the time the car is with us, we must also not ignore the fact that a life insurance in the form of Term plans is a must have to protect the family in case of a mis-hap.

8.      Health is wealth:  Having health insurance forms an equally important part of your financial plan. This will take care of your medical requirements as you age. It is only your good health which will allow you to take care of all other financial aspects in the future. Invest in it as it is your biggest treasure!