In an interview with Pooja Chopra Goel of Myiris.com, Aadesh Kumar Jain S, Proprietor, Signature Financial Services opines it is more important than ever to get sound financial advice in these times of information overload.
Can you tell us about `Signature Financial Services` and its mission & services? What services do you offer?
Signature Financial Services works towards serving clients, making their lives better and helping them make informed decisions. Our motto is to transform the client`s good life to great life. We offer comprehensive financial planning, child education & marriage planning, retirement planning, tax and wealth advisory services.
How would you differentiate your services from that of competitors? Do you think there is enough potential in this wealth management for HNIs market to sustain as many players?
Let me answer the second part of the question first, every advisor, fund house, insurance company, bank, etc is after the HNIs. There are too many people fighting for the small share of the HNI market. For advisors like us, it becomes a challenge to meet the expectations of the HNI client, as they are being approached by so many of them.
Every advisor, to get this chunk of business, makes promises some realistic and many unrealistic or unreasonable commitments. Market is yet to understand the concept of real financial planning and the role of a certified financial planner. The difference we bring to the table is the approach towards the wealth creation of the client. We are no magician to promise a return above market, but our objective is to plan for the life events of the client and make sure that the goals are achieved.
In financial planning, client & advisor relationship is similar to that of marriage. Since it is a long term relationship, there will be some sweet moments, some not so sweet, some issues, which will require course correction; some would need drastic steps, both on part of the client and the planner. If the client is willing to walk this journey, we are ready to walk the extra mile for the client by keeping ourselves updated with the latest information in the market and suggest the right solution to the client.
What is the AUM that you have now? How has the last two years been in terms of client acquisitions and AUM growth?
How do you define the AUM of the financial planner, amount of mutual fund acquired, property purchased by the client, insurance bought the client or bank and cash balance of the client. I really feel sorry for the advisors (even I was one of them before I really understood the concept of financial planning & the wonders it can do to the client in long run) who are in the race to increase the AUM.
Our objective is to help the client increase his wealth and if the risk profile of the customer demands that he has to keep all the money in the bank fixed deposit, we respect the clients` demands and aspirations. The real AUM for the financial planner is the clients acquired, clients retained and respect for the client. Due to the client planner agreement I will not be able to share the number of clients and the AUM I control.
Has the no-load regime affected your business?
Our business model has been a fee based model and the no load regime has not affected us. Even prior to the no load regime, we had advised the client to invest directly to take benefit of the zero entry load for direct investment.
How much longer will it take for the market to take out its all time high? We went very close to it but retraced from there a couple of times. What is your best guess of when the markets will be ready for it?
As a financial planner, I would choose to not answer this question. Our advice to the client is to stay invested long, long enough to achieve the goal. As the goals are fixed based on the risk profile of the client, daily upward or downward movement of the marked is neither tracked nor it is advised to the client to check his portfolio on daily basis. We review the portfolio once in six months and at times once a year. If there are drastic steps required, the course correction is done in consultation with the client.
How many fund houses do you deal with? In which fund house do you have the maximum AUM ((in terms of percentage)?
I am registered with all the leading fund houses.
Tell us your favourite all-time MF schemes and fund managers.
I would choose not to answer this. Answering the question would mislead investors. People will look for quick way to make money rather than planning for a goal. I am not the right person to get advice from. Each and every fund manager brings to the table great credibility. A person like me commenting on this is unwarranted and unnecessary.
Is there anything else you would like to share with our readers?
Be it a person earning Rs 5,000 per month or making Rs 500,000 or more per month, everybody requires quality advice. Quality advice comes at a price. Don`t be penny wise and pound foolish to choose an advisor who does services for free. There is no free lunch. Free service means income for the advisor from commission on sale of products.
Choose the advisor like you choose a life partner; ask questions, questions and questions. If the advisor is not keen to answer your questions, shop around, find another person. Waiting for few more weeks or months is worth the wait. It is more important than ever to get sound financial advice in these times of information overload. Whatever your situation believe it is always good, we are here to make the future great. Wishing you all the very best. May all your wishes come true.
**You can get in touch with Aadesh Kumar Jain S at: firstname.lastname@example.org