Page 47 - Banking Finance November 2019

ARTICLE

compliance, SEBI wants to gain oversight of foreign banks management firms must be perceived as competent,
managing Indian wealth. The capital market regulator has dependable and empathetic. Clients must also perceive
reached out to large international banks and wealth that they are paying a justified price for the value that
managers to register their offshore units with SEBI if they they are receiving.
are soliciting business in India. By registering with SEBI,
Y Invest in advisor technologies reducing time of
private banks would have to admit to managing funds of advisor on administrative & compliance activities.
wealthy Indian clients and may also prompt further requests Advisor platforms that offer lead management,
from SEBI to share information. portfolio management, financial profiling, asset
allocation and transaction management capabilities can
Many foreign banks and wealth managers have already integrate multiple touch points and improve advisor
exited the Indian wealth management business because of experience.
the high cost of operations and regulatory burden. This
might deter foreign players from having any presence in the Y Advisory Relationship: The core of any successful
Indian wealth management segment and offering services wealth management offering is the relationship
to wealthy Indians. developed between the advisor and the client.
Successful advisors develop a relationship with clients
by demonstrating that the clients' interests are the
Going forward, the regulatory environment may further
advisor's paramount concern. In the context of an
evolve and there may be tighter norms around the skill-set
advisory relationship, the wealth management firm can
requirements for advisors, disclosure requirements to ensure
work with the client to develop, implement and monitor
more transparency, stricter rules regarding investment a comprehensive wealth management strategy.
advice and data privacy, etc.
Y Integrated Information: Very few clients maintain all
of their accounts with a single provider; an integrated
Way forward:
view of their overall financial picture is critical if clients
Y We need to build trust for being a dependable wealth are to be able to make informed decisions. Advisors,
management advisor. Promotion of investor education too, should be able to access and analyze customer data
can help in long term relationship building. Investment efficiently. When information is automatically integrated
in advisor training and qualification is a must with a view across accounts and across institutions, advisors can
to make them capable and not just from the point of concentrate on helping customers make fact-based and
view of certification. At the same we need to work out insightful wealth management decisions, rather than
retention strategies for our advisors. To win new focusing on more mundane tasks like assembling
customers and retain existing ones, wealth statements from multiple sources. T

Kotak Mutual Fund brings new Kotak Pioneer Fund

Kotak Mahindra Asset Management Company (Kotak Mutual Fund) has recently declared the launch of Kotak Pioneer
Fund, an open-ended equity scheme that will invest in ‘pioneering innovation’ theme. According to the fund house, the
fund will seek to identify innovators and pioneers with a sustainable long-term growth potential and with a competitive
long-term advantage.
Harish Krishnan will manage the scheme. The scheme will follow a structured investment process to identify such ‘pio-
neering companies’ on a framework. This fund will invest in companies that seek to benefit from newer forms of pro-
duction, technology, distribution or processes that are likely to challenge existing markets or value networks, or dis-
place established market leaders, or bring in novel products and/or business models. The release said that Kotak Pio-
neer Fund can capitalise on global innovation champions through investment in global funds, providing Indian investors
the opportunity of geographic diversification and access to massive technological changes happening around the world.
Harish Krishnan, Senior VP & Equity Fund Manager at Kotak Mutual Fund said, “Kotak Pioneer Fund will follow a the-
matic approach of investing in companies that have a proven track record of multiple revenue streams, resulting in
improved customer salience. The fund is diversified across sectors & stocks to achieve risk mitigation and provides
diversification across geographies as well.”

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