Anand Rathi Private Wealth

About

Founded by Anand Rathi and Pradeep Gupta in 1994, Anand Rathi Financial Services Ltd is an unlisted public Indian financial services group. Anand Rathi operates in 350 locations across India and has an international presence in Dubai, Hong Kong and New York.

Private wealth management services are primarily offered by Anand Rathi through its subsidiary, Anand Rathi Wealth Services Ltd. Additional private wealth services are offered through Anand Rathi Advisors Ltd and Anand Rathi Global Finance Ltd.

Anand Rathi Wealth Services Ltd was registered as a public unlisted company in 1995, and its private wealth management business was set up in 2002 by Amit Rathi, the current Managing Director.

Anand Rathi Wealth Services Ltd has two subsidiaries, AR Wealth Management Private Ltd and Freedom Wealth Solutions Private Ltd.
Anand Rathi has more than 2500 staff as a group, in 2019. Asian Private Banker records a total of 270 relationship managers and $ 3 billion in assets under management for Anand Rathi Private Wealth as of 2019.
The private wealth business caters to both UHNI and HNI.

Anand Rathi Advisors Ltd has both the Registered Investment Advisor (RIA) and Portfolio Management Services (PMS) licences from the Securities and Exchange Markets Board of India (SEBI). Anand Rathi Global Finance Ltd is a registered Non-Banking Financial Company (NBFC).

Key staff

Rakesh Rawal- CEO, Anand Rathi Private Wealth Management (April 2017 to present)- Rakesh has more than 40 years of experience in banking, finance and wealth management. He holds a Master’s of Management Studies degree from Jamnalal Bajaj Institute of Management Studies and is a graduate of Mechanical Engineering from the Indian Institute of Technology, Kanpur.

Feroze Azeez- Deputy CEO, Anand Rathi Private Wealth Management (May 2015 to present)- Feroze has over 18 years of experience and an MBA from SDM Institute for Management Development. He is a graduate of Mechanical Engineering from Mysore university. LinkedIn

Hrishikesh Palve- Senior Vice President, Anand Rathi Financial Services Ltd (July 2018 to present)- Hrishikesh has more than 17 years of experience. He holds a postgraduate diploma in business management (PGDM) focused in Marketing from SIMSREE (Sydenham Institute of Management Studies, Research and Entrepreneurship Education) LinkedIn

Services

  • Investment services – Anand Rathi Private Wealth offers advisory services in equities, fixed income and structured products. It has a digital wealth management solution/platform targeted at the emerging HNI segment. Through Anand Rathi Advisors Ltd, both discretionary and non-discretionary portfolio management services are offered to private wealth clients. 
  • Wealth planning – Anand Rathi’s safety net and estate planning solutions cater to the wealth planning needs of their clients. 
  • Lending- securities lending and other structured products are offered to private wealth clients through  Anand Rathi Global Finance Ltd.

Investment philosophy (for firm)

On the firm’s website, Anand Rathi Private Wealth’s investment philosophy is said to be built around a framework of delivering fearless advisory, that is backed by data and uncomplicated. From a media interview in February 2021 with Anand Rathi, the Chairman and Founder of Anand Rathi, some insight on the firm’s investment philosophy is available. He explains his firm’s belief in long-term investing for equities, as well as a practice of refraining from acting to time the market or giving in to panic due to market swings.

Media

Broadcast1 presents Business Evangelist of India- Rakesh Rawal, Anand Rathi Wealth Management, Forbes India, 9th March 2021
https://www.forbesindia.com/business-evangelist-of-india/anand-rathi-wealth-limited/13
Rakesh Rawal and Feroze Azeez speak about business operations at their firm. Raskesh explains that their aim is to have clients understand investments, related concepts and wealth management solutions. He contrasts this with merely having clients blindly entrust their private banking needs to the firm. Speaking about talent management, Feroze relates a relatively lower staff attrition rate at Anand Rathi to consistency in remuneration, absence of imposed targets on relationship managers and a mandatory program of continuous learning for each staff. Raskesh closes by sharing the employee culture promoted at the firm. He explains their practice of looking into each unique situation, identifying and undertaking suitable lines of action to uphold the long-run goals of the firm.

Anand Rathi says, ‘an Expect 15% CAGR Returns from Market next 10 Years’, Times Now, 12th February 2021
https://www.timesnownews.com/videos/et-now/markets/anand-rathi-says-an-expect-15-cagr-returns-from-market-next-10-years-exclusive/89243
Anand Rathi shares his view on market cycles and his expectations for the Indian market following the 2020 pandemic. He indicates that his belief is in long-term investing for equities and keeping from being swayed by the timing of the market or situational panic. Speaking about stock picking, Anand advises that investors should concentrate more on how well managed companies are and whether their cash flows are positive and regular. He shares that making selections based on industry sectors is secondary to these attributes.

How can you grow and add value to the client? Feroze Azeez of Anand Rathi Private Wealth Management, Hubbis, Jun 26 2019
https://www.hubbis.com/video/how-can-you-grow-and-add-value-to-the-client
Feroze Azeez shares his thoughts on opportunities in the Indian private wealth industry and the unique practices of his firm towards differentiation and creation of client value. He observes that while there is a focus on the amount of AUM from one firm to another, there is a chasm in terms of the average return on a firm’s AUM. He states that Anand Rathi maintains the practice of having the average return on its entire AUM measured, audited and disclosed for clients’ knowledge and better decision making. He shares that at Anand Rathi, every staff member is a private banker, including HR heads, product heads and operations staff. Feroze explains that it is the belief of his firm that everyone in the company needs to be a private banker to fully understand the entire value chain and deliver efficient services.

Analyst questions

  1. What principles do you follow in identifying and recommending investment strategies and products to clients?
  2. Do your clients specifically ask for certain types of products and services? How has this changed over the years?
  3. How practical is it to be a long term investor and yet maintain liquidity in one’s portfolio?

 

Prepared by – Adza Vajime
Date – 11th March 2021
Peer reviewed by – Medha Mehta
Date- 8th March 2021

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