In an interview with Yogita Khatri of myiris.com, Ajay Goenka, certified financial planner (CFP), self employed says `` My favorite all time MF schemes are: SBI-Tax Magnum, HDFC Tax Saver, Reliance Opportunity Fund-Growth options, ICICI Discovery Fund.``
> Government mulls strict norms for wealth management advisors followed by the recent fraud case in a bank`s wealth management unit. Do you think stricter norms will help? How do you see the business environment for advisors in 2011?
In India there are no comprehensive rules to regulate the wealth managers for services across various sectors such as banking, markets, and insurance, commodity and pension funds as of now. But the regulators will soon come out with some guidelines for the wealth management services, so that the recent fraud as in case of Citibank will not repeat it self. Yes, I believe that the sticker norms will help a lot to wipe out fraud that are to help. I would further like to add that fraud in the recent past has made the regulator aware of the necessity for the sticker norms, but it`s not only the norms that would going to help. It`s the spirit of an advisor to save the industry from such type of frauds thinking in mind that these fraud can wipe out the whole industry. In the year 2011 the business environment is more transparent, safe and investor friendly.
> How do you reach out to your clients? How do you win the confidence of your clients?
Reaching the clients is not a big problem for us due to our transparent and investor friendly strategy of trade. This strategy spread good branding and makes us successful to have huge client base. Building faith among clients and dedicated research team both for domestic and international market adds on winning the confidence of our clients.
> Are clients clear in their goals? What steps do you take to bring clarity to their goals?
Not all but some clients are very clear in their goals. We do the holistic research of their financials and show that what can be achieved. We also take care of the risk appetite of the investor.
> The competition in wealth management has been intense, with a number of players having plucked in recent years. How do you place yourselves in that league?
The market of wealth management is so huge in the coming years that every body is performing well in the market. We have set our own business model and strategy not only to acquire new clients but also to retain the old one`s. We can assure our clients that the investor`s protection and building their positive wealth is our primary goal.
> How many life insurance companies do you deal with? How much is the whole insurance business in your total?
We deal with almost all the insurance companies both in life and general business. Our insurance business contributes to the majority of our total business.
> What are the aspects that matter you when selecting funds for your clients? Your top 3 equity fund picks and debt fund picks with key attributes you like in them?
First thing that we would keep in mind while selecting funds for our clients is their risk appetite and investment horizon. Further various facts such as tax benefits, returns, fund manager, type of funds etc is taken in to account. My top 3 equity fund picks are (1) ICICI Discovery Fund (2) SBI Magnum Emerging Busi (G) (3) HDFC Mid-Cap Opportunities (G) and my top 3 debts funds are (1) HDFC Float Rate Inc-LTP (G) (2) Templeton FRIF (RP) (G) and (3) Tata Floater Fund (G)
> What is your view on the current market scenario? What are the risks an investor should look out for in 2011?
My view on the current market scenario is not so bullish but the market can give 10%-12% returns from here by the end of year 2011. The investor may see the risk of price hike in commodities, petrol, inflation and some sort of RBI guidelines with respect of interest rate and liquidity norms.
> How many fund houses do you deal with? In which fund house do you have the maximum AUM (in terms of percentage)? Tell us your favorite all-time MF schemes and fund managers.
We deal with almost all AUM companies with HDFC having the 40% contribution in all. My favorite all time MF schemes are (1) SBI-Tax Magnum (2) HDFC Tax Saver (3) Reliance Opportunity Fund-Growth options (4) ICICI Discovery Fund. All fund managers are my favorite and no specific comment on that.
> What`s the one thing that you would change in the financial services industry, if you had the power to make that happen?
I would make the wealth manager who is managing the funds for the client responsible and accountable personally. This would make the system more transparent and answerable to the investors.
> Going ahead, what are your plans? How do you plan to expand your business?
Going ahead our plans is to make national presence and we are thinking of entering in to joint venture for the same.
> Is there anything else you would like to share with our readers?
Yes, I would like to share with the investor that wherever they have the money that is the right time for investments and not for trading. Further they must have patients and ability to take risk.