13 April 2021 in Debt
Bond markets: issues and implications
This post highlights some issues in the non-sovereign, commercial borrowing markets in India. [Intro to Indian bond markets – data from RBI] 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 in a data vacuum First principles
05 August 2020 in Equities
Share buy-backs in India
A share buyback means a company buys their own shares from the market when they want to reduce their number of shares available in the open market. Share buyback in India – legal provisions In India, buyback of listed shares was permitted by the Companies (Amendment) Act, 1999 by the insertion of Sections 77A, 77AA
05 August 2020 in Equities
Differential voting rights in India – a summary
What are DVRs? Dual Class Shares (DCS) or shares with Differential Voting Right (DVR) as popularly known in India, simply mean that a company has issued more than one class of stocks with different voting rights. In other words, DVRs are shares that give the holder different voting rights compared to someone who owns ordinary
Read more +06 June 2014 in EconomyIntro to Modern Monetary Theory
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.
Read more +15 April 2014 in Business Issues, EconomyRole of credit rating agencies
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,
Read more +10 September 2020 in Portfolio ConstructionGlobal investment consultants eyeing India?
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
Read more +05 August 2020 in Portfolio ConstructionFactor investing 101
Global markets are made up of dozens of asset classes and millions of individual securities, making it challenging to understand what really matters for your portfolio. But, there are a few important drivers that can help explain returns across asset classes. These ‘factors’ are broad, persistent drivers of return that are critical to helping investors
Read more +05 August 2020 in Portfolio ConstructionHow to analyse MF portfolio and performance
Investors see lists of ‘top performing’ mutual funds that have performed well over both long-term and short-term horizons. But will they do so in the future? Researchers believe that good mutual funds have clearly stated investment styles that specify whether the fund manager will invest in large or small companies, whether those companies exhibit growth or value characteristics etc. We
Read more +18 August 2015 in Advisory ProcessDoes robo-advice work?
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
Read more +03 July 2015 in Advisory ProcessChoose your value proposition
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
Read more +03 April 2013 in Advisory ProcessUnderstanding risk profiling
Paul Resnik of Finametrica explains the concept of risk profiling and the stability of the risk tolerance measure over time.
Read more +15 October 2020 in Business IssuesWhat can financial advisers call themselves?
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
Read more +09 June 2015 in Business Issues, Portfolio ConstructionFund managers need the right temperament
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
Read more +15 April 2015 in Business IssuesFactors to consider in compliance monitoring program
Using a tick-the-box approach for monitoring of conflicts of interests will probably lead to regulatory issues and reputational disasters. Wealth firms will need to have code of conduct and conflict of interests programmes adjusted so as to be appropriate for their business model. Conflicts of interests are everywhere. Firms in financial services, especially in wealth
Read more +01 August 2014 in Business Issues, Wealth PlanningFamily offices generating interest
The number of high net worth individuals in the Asia Pacific region has touched 4.3 million, equaling that to that in North America, according to the CapGemini World Wealth Report 2014. Yet the number of family offices in the region, numbering just over 100, ‘does not reflect the boom in regional wealth’ according to CampdenFB.
Read more +21 May 2014 in Wealth PlanningEmpowering rural India
Inspired by the movie Swades, Ronnie and Zarina Screwvala founded the Swades Foundation that operates with the single-minded focus of empowering rural India. Screwvala believes, “India cannot rise to its true potential without a fundamental transformation in the lives of people in rural India”. “For over a year, we met other philanthropists, visited many villages
Read more +06 February 2014 in Wealth PlanningCustomising trusts in India
Abhijit Joshi of AZB & Partners discusses the different trust structures in India, investing abroad, trustee firms and how the Indian Trust Act is different. 1. What are the most common forms of trusts that Indian promoters ask for, or that get set up generally? (1:52) 2. If a client wants to invest overseas, what
Read more +30 September 2016 in Behavioural FinanceConsumer protection takes more than transparency
The principles of transparency and disclosure are visible everywhere from fast-food menus to financial regulation. But if lawmakers don’t consider the behavior of both markets and consumers, better information may not translate to smarter shoppers.
Read more +03 June 2016 in Behavioural FinanceLost money? Re-invest!
Investors sometimes play a psychological trick on themselves when they lose money, research suggests—and that mental accounting trick may help improve their investment performance.
Read more +15 April 2016 in Behavioural FinanceHow to motivate better
How do you know if you are selecting the right motivational strategies to convince your employees, peers, and even yourself to work smarter and harder?
30 January 2014 in Uncategorized
Guide to Wealth Management in India
The Hubbis Guide to Wealth Management in India is a compilation of articles and interviews with industry leaders during 2011, 2012 and 2013. Please email [email protected] to get the guide.
Read more +09 December 2009 in UncategorizedForget track records for responsible investing
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.
ADVT
