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Hansi Mehrotra is the current editor of Money Management India. Hansi has been writing and editing investment content for over 20 years. She writes for CFA Enterprising Investor. She has also been a member of the CFA Institute since 1999.
the private wealth issue
10 December, 2021
by MMI Editor
Private wealth….the wealth of private clients. The term ‘private client’ implies there is something private about them. The term has become synonymous with ‘high net worth’ investors. They are different from ‘individual or retail investors’ who may need help with making financial decisions. They are also different from institutional investors, which are sophisticated but may
- Published in Business Issues, WM firm profiles, Featured
Delivering private wealth services
28 October, 2021
by MMI Editor
Having decided which products & services will be offered and then done some high level marketing activities, private wealth firms deliver these services in a ‘high touch’ way – through very senior private bankers (PBs), wealth managers (WMs) and relationship managers (RMs). We now look at the ‘final mile’ – the sales, advice and relationship
- Published in Advisory Process
Marketing luxury advice
28 October, 2021
by MMI Editor
Private wealth caters to high net worth individuals, who are also consumers of luxury goods and services. So is private wealth/banking a luxury service? Does the private wealth industry use luxury marketing techniques and do they work? We explore. Defining luxury services Defining luxury services should be easy – ‘turns out it’s not. Apparently, the
- Published in Marketing
Private wealth product platform
28 October, 2021
by MMI Editor
Having decided on the value proposition, let’s look at the specific products & services (features in a tech context) that the Indian wealth management industry has decided to offer. Firms were very clear that they can help ‘manage and grow’ wealth, not ‘create’ wealth. Their clients, whether entrepreneurs, inheritors or professionals, were better able to
- Published in Advisory Process
High net worth investors – client segmentation & needs
28 October, 2021
by MMI Editor
Having established that there is a reasonably large, and growing, number of potential clients with wealth, we need to ask what their needs are. What does ‘managing wealth’ actually mean? Client segmentation – beyond source of wealth We can safely assume that all potential clients – the high net worth individuals – are not the
- Published in Advisory Process
Private wealth industry – size & players
28 October, 2021
by MMI Editor
As outlined in the value proposition article, it is hard to estimate the size of the private wealth management industry for a number of reasons. Some firms include their affluent customers in their publicly available figures for AUA and revenue which is a bigger and more crowded segment. Private wealth firms compete with numerous other
- Published in Business Issues
Bond markets: issues and implications
13 April, 2021
by MMI Editor, Anubhav Srivastava
This post collates some of the issues being highlighted by experts regarding the Indian corporate bond markets, and the implications for debt mutual funds. Debt funds are risky… Suyash Choudhary, head of fixed interest at IDFC AMC, outlines the market structure and issues – The macro Markets for financing in India Behavioural thinking and operating
- Published in Debt
What can financial advisers call themselves?
15 October, 2020
by MMI Editor
I used ‘educator’ on my LinkedIn heading before being told it sounds like a professor. Not that there is anything wrong with being a professor – I would love to be one, in fact – but it just intimidates my audience of mostly women and young people (for The Money Hans initiatives). I could tell
- Published in Business Issues
Tagged under:
wealth management
Global investment consultants eyeing India?
10 September, 2020
by MMI Editor
India has been wooing foreign investments, both directly as foreign direct investments (FDI) into companies as well as indirectly as ‘foreign institutional investors’ (FIIs) or ‘foreign portfolio investors’ (FPIs) into its capital markets and alternative investment funds (AIFs). FIIs already hold a significant portion of India’s listed equity market, affecting daily market fluctuations. However, the
- Published in Portfolio Construction
Does ETF liquidity matter for investors?
03 June, 2020
by MMI Editor
The Indian asset and wealth management industry laments the lack of liquidity in ETFs, encouraging investors to buy passive funds instead. But what is liquidity and does it matter? In the recent past, two papers have been issued to address this topic – The CFA Society India issued a report on ETFs generally with some recommendations
- Published in Portfolio Construction, Equities
Making information flow more efficient
30 March, 2020
by MMI Editor
Finance is the nervous system of the world. However, many parts of the finance industry are inefficient, which has significant repercussions. The world gets major mood swings, at times throwing up excesses. I believe we could alleviate some of the symptoms by making some information more transparent so that it travels more efficiently. Let me
- Published in 3_Communication
Do you need an investment philosophy?
03 February, 2019
by MMI Editor
Recently, I was invited to participate in a panel discussion on the ‘Art & Science of Stockpicking’. I was fascinated by the topic because I had studied both art and science (actually literature and biology) at undergraduate level and then had chosen finance as a career. I had researched investing somewhat (remember this was 25
- Published in Portfolio Construction
Fund categorisations: confusing segments and style
07 November, 2017
by MMI Editor
The Indian media has been discussing SEBI’s circular on categorisation and rationalisation of mutual funds ever since it came out in October 2017. I had written about the need for better fund classifications last year, so I didn’t comment further. But the news that AMFI has asked SEBI to reconsider has prompted me to share
- Published in Portfolio Construction
Can better fund research fix capitalism?
21 October, 2017
by MMI Editor
“We have met the enemy and he is us.” — Walt Kelly We blame capitalism for most of our modern ills, from climate change to iPhones that die every two years. Yet we rarely bother to read the sales pitch our accountant, banker, or adviser gives us for the mutual funds to invest our hard-earned
- Published in Portfolio Construction
Tagged under:
fund research
The value of dumb questions
24 April, 2017
by MMI Editor
Being an outsider, as I have been for most of my life, brings with it a feeling of inadequacy. To hide this feeling, I did what many others do – I would preface questions with ‘Hey, I am new here….may I ask a dumb question?’ Today, I care less about what people think of me,
- Published in 3_Communication
Tagged under:
fund research
Has goal-based investing ruined Modern Portfolio Theory?
18 November, 2016
by MMI Editor
Modern or mean-variance portfolio theory (MPT) is an important financial concept. But it has little practical value for retail investors when it to comes to asset allocation. Recently, goals-based investing has grown popular with both financial advisers and robo-advice tools. Financial advisers continue to apply an ‘”asset allocation overlay” check to ensure goals-based portfolios are
- Published in Portfolio Construction
What can blow up in your portfolio?
30 July, 2016
by MMI Editor
That’s the question investors should ask when assessing portfolio risk, rather than focusing on volatility. Speaking at a speaker event organised by Indian Association of Investment Professionals (IAIP), Raj Manghani, the Managing Director – Financial Analytics for MSCI, explained scenario analysis and stress testing. Testing the ability of a portfolio to withstand shocks in liquidity, markets and
- Published in Portfolio Construction
Classifying funds
24 April, 2016
by MMI Editor
Investment decisions rely on performance of funds universe including that of the median and various quartiles. Hence, the universe category definitions and classifications are very important. Unfortunately, AMCs have multiple funds in the same category with significant dispersion in returns. To make it worse, leading rating houses have different classification methodologies resulting in different classifications.
- Published in Portfolio Construction
Funds research…deconstructed
18 February, 2016
by MMI Editor
I love watching cooking shows. It doesn’t matter that I don’t cook. I watch for enjoyment sake, and perhaps for the comfort of knowing that in a cooking emergency, I will be able to put something together. One concept that I always get fascinated by is that of ‘deconstructed’. Chefs separate or deconstruct the ingredients
- Published in Portfolio Construction
Tagged under:
fund research
Why we need active funds
03 February, 2016
by MMI Editor
The active versus passive debate rages on. The passive camp points out that active funds, in general, don’t do what they are supposed to do – outperform the passive benchmark. They charge high annual management fees, even in the years they underperform. They encourage intermediaries to charge fees or commissions to select amongst them (or
- Published in Portfolio Construction
Why good mutual fund research is hard to find
12 January, 2016
by MMI Editor
There are many brilliant books on stock picking, from simple beginners’ guides to classic textbooks like Ben Graham’s Security Analysis and The Intelligent Investor. I could find only one credible book on mutual funds: John Bogle’s Common Sense on Mutual Funds. Bogle’s advice? Investors should put their money in index funds. A number of finance luminaries — Warren Buffett,
- Published in Portfolio Construction
Tagged under:
fund research
Why you shouldn’t invest in 5-star rated mutual funds
18 December, 2015
by MMI Editor
Ask any investor how they select mutual funds (MF) – the most common answer tends to be on the basis of star ratings. Such is the allure of stars that it doesn’t appear to matter whose stars. I know so, because I spent my career in fund research. And no matter how different my firm’s
- Published in Portfolio Construction
Tagged under:
fund research
Role of financial ratings
30 October, 2015
by MMI Editor
When people hear the leader of a country comment on how a credit rating agency should rate its debt, they realise credit ratings are important. When they read about the role of credit ratings in the global financial crisis, they get angry about the finance industry being responsible for their misery, but figure they must
- Published in Portfolio Construction
How Nobel prize winners invest
30 October, 2015
by MMI Editor
Everyone in finance would know about the efficient frontier… it’s a concept from Modern Portfolio Theory put forward by Harry Markowitz in the 1950s. So Markowitz is like God in the world of portfolio management. I was always curious about how Markowitz invests his own portfolio. Imagine my delight when I found the answer in
- Published in Portfolio Construction
Making sense of too many products
03 October, 2015
by MMI Editor
Like in many other markets, the mutual fund industry the world over seems to have a dazzling choice of products, but with the top few dominating assets under management and inflows. In the US, there are more funds than stocks. Even in a nascent market like India, there are more than 1,000 choices, and that’s
- Published in Portfolio Construction
Does robo-advice work?
18 August, 2015
by MMI Editor
Tech start-ups are hot. Within that, ‘fintech’ is hot. And within that, ‘robo-advice’ is a term that’s starting to be bandied around even in the Indian market. What do these terms mean and why are they relevant to anyone associated in the asset/wealth management industry? (By the way, I have combined the wealth and asset
- Published in Advisory Process
Choose your value proposition
03 July, 2015
by MMI Editor
Unlike medicine where there is a clearly defined distinction between the general practitioner and various specialists, wealth management is a grey area the world over. While global regulators are increasingly separating brokers/distributors from advisers based on compensation source, wealth managers can still choose their own business model and area of focus based on their own
- Published in Advisory Process
Tagged under:
financial planning
Fund managers need the right temperament
09 June, 2015
by MMI Editor
What kind of people make good fund managers? While everyone should be interested in this question, there is surprisingly little research on this topic. Dr Jack Gray talks to Hansi Mehrotra about his efforts and findings. While the general perception may be that investments is about numbers, investment professionals everywhere agree that money management is
- Published in Portfolio Construction, Business Issues
Tagged under:
fund research
Intro to Modern Monetary Theory
06 June, 2014
by MMI Editor
Being a professor in risk management, Professor Frank Ashe had to explain the biggest risk event in recent history – the global financial crisis. He went back to basics to understand the genesis of the credit bubble, in the process discovering Modern Monetary Theory and how government deficits are not as bad as people think.
- Published in Economy & Markets
Tagged under:
Modern Monetary Theory
Role of credit rating agencies
15 April, 2014
by MMI Editor
Credit rating agencies have been criticized for their role in the 2007 sub-prime crisis, which led to the global financial crisis, but it wasn’t until a recent lawsuit exposed their internal emails that it became clear to what extent they were responsible. While the global financial crisis can’t be blamed on any one in particular,
- Published in Economy & Markets, Business Issues
Demand for wealth planning
15 December, 2013
by MMI Editor
There is an undisputed need – and opportunity – for wealth planning structuring in India for the ever-growing number of wealthy entrepreneurs, families, and other individuals. The challenge for wealth managers continues to be how to make the most of this new “once in a lifetime opportunity”. There are numerous drivers for the increasing importance
- Published in Wealth Planning
Forget track records for responsible investing
09 December, 2009
by MMI Editor
The United Nations Principles for Responsible Investment now claims over 550 signatories with more than USD 18 trillion in assets. UNPRI provides a framework for institutional investors to integrate environmental, social and governance (ESG) factors into investment processes. Also, the International Finance Corporation has sponsored a study on the prevalence of RI in emerging markets.
- Published in Equities