JM Financial group has had a journey of over four decades and during this time, it has gathered many firsts. It has built its position and has emerged as an integral financial services provider. The company was listed on the Bombay, Ahmedabad and Delhi stock exchanges in the years between 1989-1994, soon after it was established.
- JM Financial was started in 1973 as JM Financial & Investment Consultancy Services Pvt. Ltd. (JMFICS). It is presently led by Mr. Nimesh Kampani- the Group Chairman of JM Financial Limited.
- JM Financial Products Ltd. (“JMFPL”) is the Non-Banking Finance Company (NBFC) of the JM Financial Group. It is a non-deposit accepting non-banking finance company registered with the Reserve Bank of India. The company enjoys the highest short-term credit rating of A1+ from CRISIL.
- JM Financial Services is one of the largest brokerage firms in the country having their presence over 130 cities, partnering with over 480 business affiliates and 36,000 independent financial distributors. As of 2019, there were 68 relationship managers onshore. (Source). Total assets under management are $6.6 billion as of 2019 (Source)
- JM Financial is a financial services group, specialising in providing a spectrum of businesses to corporations, financial institutions, high net-worth individuals and retail investors.
- Mutual fund distribution
- Discretionary PMS
- Structured products
- Mortgage lending
- Investment banking services
Investment philosophy (for firm)
The website talks about their process –
JM Financial undertakes elite and private wealth under their wealth management sector and they have different philosophies for both.
- Private Wealth
- Client First– Providing a compelling value proposition with high compliance as well as acting in the best interests of the clients.
- Goal-Based Planning Approach– Their approach is oriented towards understanding client’s, objectives, priorities and overall financial expectations. They offer a goal based planning approach while providing newer and deeper insight into market trends and opportunities.
- Cohesive Personal & Business Offering– They advise clients on investing in multi asset classes, designing and implementing long term personal financial plan as well addressing the Business expectations of raising capital and corporate financing for our clients.
- Experienced Advisors– Access to the experts that includes wealth managers, product specialists, investment banking teams, industry specialists and analysts who see strategic investment opportunities across and beyond sectors.
- Investment Ideation And Execution Platform– Accurate execution, effective transaction support, regular tracking and timely strategic adjustments to their portfolio, through their investment and execution platform.
- Controlled & Seamless Approach– Adoption of an institutionalized process comprising wealth operations, thorough internal and external audits, compliance, intensive risk management process and comprehensive client reporting.
- Dynamic Opportunities– Creation of new opportunities by matching their capabilities with client needs.
- Trusted By Corporates– Amongst the few firms that offer and hold discretionary portfolio mandates from corporate clients for various investments. They have assisted promoters in increasing stakes in their Companies by creeping acquisition or buy backs along with the Equity Capital Markets Group and Institutional Equity Group.
- Elite Wealth
- Multi-pronged investment strategy- Use of individual or a combination of investment strategies– Goal Based and Asset Allocation – to address investment needs.
- In-house research experts- To identify and recommend viable investment opportunities.
- Comprehensive product variants- Balance of Traditional and Exotic Products ranging from Investment to Trading to Financing.
- Adept Wealth Professionals- Cater to diverse Clients addressing varied demographics, lifestyle goals, investment appetite, etc.
- Hybrid solutions- Offering a combination of personal assisted interactions and technology automations.
- Robust processes- Reliable and scalable systems for execution and seamless risk management.
They have their investment management strategies divided into two categories-
- Goal Based Strategy
- Goal Planning- Identify, prioritise and set goals based on life stage requirements, business requirements, etc.
- Readiness of Corpus- Analysing Existing investments and sources of income as well as liquidity needs.
- Investment Horizon & Frequency- Define Investment Horizon & identify willingness of frequency of investment.
- Return Expectation- Understand returns expectation of clients to achieve goal.
- Risk Profile- Evaluate risk appetite with respect to aggressive, moderate or conservative approach.
- Suitability Matrix- Identify products based on suitability matrix factoring return expectation, investing tenure, risk, tax, planning, etc.
- Investment Recommendation- Devise and overall investment plan with an optimum portfolio design.
- Execution- Establish and implement the suitable investment plan.
- Monitor and Report- Frequently monitor the portfolio and report alignment of performance to achievement of goals.
- Rebalance- Based on changes in personal requirements and market outlook, rebalance portfolio or recommend and exit strategy.
- Asset Allocation Strategy
- Portfolio Analysis- Analyse status of present holdings keeping in view the sources of income, borrowing liabilities as well as tax implications.
- Portfolio Interpretation- Evaluate the portfolio and identify the current risks and dormant funds.
- Investment Recommendation- Devise an overall strategic multi-asset allocation plan with an optimum diversified portfolio design.
- Execution- Seamless and timely implementation of the planned investments.
- Tactical Allocations- Tactical Investment ideas within or across asset classes to capture market opportunities to tackle unfavourable market developments.
- Monitor and Report- Constantly monitor and report the performance of the portfolio and assess alignment with the established asset allocation ratio.
- Rebalance and Exit- Rebalance Portfolio in a systematic manner based on the research outlook and devising an optimal exit strategy when required.
Not found for the private wealth business
- How do you modify your investment strategy to cater to different clients?
- Are the private wealth and elite wealth investment philosophies watertight or can these strategies, in some cases overlap?
Prepared by – Medha Mehta
Date – February 23, 2021
Peer reviewed by – Chaitanya
Date- March 7, 2021