> AnandRathi:
Redefining Private in India’s Wealth Management Sector THE ANANDRATHI WAY AnandRathi private wealth management’s unique approach towards its clients is reflected in its CEO, Mr Rakesh Rawal’s statement that, “private wealth management is less a business of financial services, than one of building relationships.” In this, the company has been consistent. It continues, as in previous years, to deliver fearless advisory backed by robust data, in an uncomplicated manner for high net worth individual (HNI) clients. Driven by a mandate to advise clients on their needs rather than their wants, AnandRathi has been employing some rather interesting techniques to help clients achieve their wealth management goals. The company has decisively moved towards a model that goes beyond short-term wealth creation, where a client-centric approach ensures that the needs of HNIs form the focal point of the entire wealth management process. A unique, holistic strategy is crafted for each client based on their specific requirements, and aimed at achieving the three main goals of effective wealth management: generating sensible consistent returns for creating longterm wealth; creating safety-nets to protect wealth from unforeseen circumstances; and building an estate plan to ensure near-zero transmission loss while distributing/transmitting wealth to the next generation. AnandRathi’s refreshing emphasis on simplifying wealth management can be summed up in a single statement: Why rely on English when math – a far more accurate and efficient language – gets the job done? FINANCIAL STRATEGISTS AS RELATIONSHIP MANAGERS All business endeavours begin with a vision. A businessperson knows how to set goals, evaluate risks, employ resources, and monitor progress as success is largely contingent on this
“The company has decisively moved towards a model that goes beyond short-term wealth creation, where a clientcentric approach ensures that the needs of HNIs form the focal point of the entire wealth management process.” process. Wealth management is no less detailed a process. However, one finds that wealth is seldom managed this way. While, to make a business grow, one would hire good managers; when it comes to private wealth, it is an irony that, for the most part, one does not pay much attention to the skills the manager ought to have. At AnandRathi, relationship managers consciously avoid being product-pushers, focusing instead on being strategists and planners. Over the years, and especially in the year gone by, a lot of energy has been expended towards the transition of good relationship managers into expert financial strategists. The company promotes an entrepreneurial model over the traditional top-down one, where the financial strategists are regarded as drivers of business. With the freedom to set their own targets, the number of clients they manage is up to them. They are encouraged to function as independent business units, expanding their operations, reach, and support teams as they deem fit. Furthermore, financial strategists are not limited by any norm or policy imposing geographic limitations on where they may and may not develop client relationships. Given the manner
in which the firm works, it makes perfect sense for its strategists to flexibly engage with clients across regions. Business is not allowed to govern relationships; instead, they ensure that a strategic, data-driven plan is at the heart of every relationship that defines their business. Through comprehensive strategy meets, financial strategists work with their clients, mirroring the manner in which a successful businessperson or effective CEO would – starting with a vision and going on to set a goal; defining no-regret objectives for one’s wealth over a period of time. The strategists are empowered to create their own business plans for the client’s wealth, supported by a team specialised in the areas of trust & estate planning, taxation, structured products, and mutual funds. Checks and balances are built in to maximise returns and minimise chances of loss. As the CEO himself contends, “the key for asset growth among HNIs is to let the destination decide journey, not the other way round. That is to say, why hope to do well by accident when one could do so by design?” RELATIONSHIPS THROUGH RESEARCH Unnecessary extravagance and showy flamboyance are commodities that AnandRathi prefers not to trade in. Unlike competitors, the organisation continues to maintain a low profile and avoids heavy-duty marketing. Rather, all that the company spends is directed towards strengthening relationships with clients. Recently, AnandRathi has introduced an intriguing way of connecting with HNI’s – the focus group discussion. The firm’s financial strategists reach out to clients – prospective as well as existing – inviting them for a session crafted to address some of the highest priority issues faced by the HNI community in India and touching upon some of the options available to them for the efficient and appropriate management of their wealth.
“It requires knowledge, data, and an uncomplicated approach to evoke client conviction to act. We must always be unwavering in delivering uncomplicated and fearless advice, for our clients to truly experience the unmatched value of the AnandRathi proposition.” Mr Anand Rathi, Founder and Chairperson, AnandRathi Group, on the key to building business
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