InCred Wealth is part of the InCred financial services platform that aims to leverage technology and data-science to ease many pain-points and disrupt many segments. The group founder, Bhupinder Singh, has been an investment banker with Deutsche Bank for more than 15 years. He set up an NBFC, InCred Finance in 2016 with the backing of an ex-colleague, Anshu Jain and other investors such as Ranjan Pai, and institutional investors such as KKR, ADIA etc. Singh is now expanding the group with other types of financial services including private wealth management and asset management.
Nitin Rao, CEO of InCred Wealth, says that the group’s vision is not the typical wealth management vision of distribution but involves technology, product expertise, international network and integration with funds management.
Platform for global Indian HNI
The firm is aimed at Indians globally, focused on bringing international standards of wealth and investment solutions while being firmly rooted in the local Indian ethos. The core target segment is HNI and UHNI clients in India as well as abroad who apart from having access to traditional products will also appreciate having access to investment products across the risk spectrum and futuristic avenues. The firm realises that there is a saturated market with a lot of wealth managers, servicing a lot of existing investors but there is a whole untapped market of HNI/UHNI investor base which is coming to the market for the first time. Social media has proved to play well for the customer as well as the team. They also believe in investing for the emerging rich and millennials HNI as a big opportunity.
Products and services offered by InCred Wealth include:
- Investment solutions across equity, fixed income and alternatives
- A sophisticated technology platform for advanced portfolio monitoring
- Financing solutions
- Estate Planning services
- Investment Banking solutions (through InCred Capital)
- Equity Research & Broking (through InCred Equities)
Technology enabler for aggregation
Rao believes in a hybrid model using technology to enable the customer to view aggregated portfolios themselves but also to enable the relationship manager to serve them better. ‘Aggregated views across product types and asset classes is still one of the major challenges in India…and it will take time to bridge this gap’ he said.
The firm has eschewed cookie-cutter solutions in favour of highly customised solutions that are tailor-made to meet the financial requirements of the clients. Ownership, transparency and passion are values they stand by. The strengths of the company are a wide research-backed and innovative product suite, a robust technology platform, synergies of their diversified financial services group and a top-notch experienced team.
Value proposition will show in investment alpha
Rao confirmed the value of ethics and due diligence in the product selection process. This becomes important as the firm focuses on products that can deliver alpha beyond mutual funds. As an example, Rao cited the example of companies that can easily give 3-4% higher returns than conventional debt, yet are rated AA or A; his firm believes in designing debt products around these market pricings. Similarly, in equities, the firm can design ‘futuristic’ themes such as neo banks, edtech, pharma etc which can result in investment alpha.
The product team, currently of 10 people, conducts due diligence on the basis of whether the InCred group would invest its own money while the second part of due diligence is its suitability of inhouse grids and matrices, which decides the correct fund for a specific investor. Rao believes the firm can add 2-3% alpha over actual current investment practices such as mutual funds as opposed to benchmarks.
Number of RMs – 76
Assets under Advice – USD 1 bn (INR 7,500 crores)
Nitin Rao – CEO
Yogesh Kalwani – Head, investments
Revenue -not available
Prepared by Mahek Medh, Anchal Kumar