Wealth Management - Approach and a Perspective
The Cochin Chamber of Commerce and Industry conducted a Virtual CEO Forum Meeting on Friday, 3rd of July, 2020.
Mr. Deepak Varghese, Head-Client Relations of IIFL Wealth & Asset Management, Kerala was the Speaker at the meeting and spoke on “Wealth Management - Approach and a Perspective."
The President of the Chamber Mr. V Venugopal welcomed the participants to the virtual meeting.
Mr. Varghese gave a brief introduction about wealth management and said that it is more than just investment advice, as it can encompass all parts of a person's financial life. Rather than trying to integrate pieces of advice and various products from a series of professionals, high net worth individuals benefit from a holistic approach in which a single manager coordinates all the services needed to manage their money and plan for their own or their family's current and future needs, he said.
Mr. Varghese said that while the use of a wealth manager is based on the theory that he or she can provide services in any aspect of the financial field, some choose to specialize in particular areas. This may be based on the expertise of the wealth manager in question, or the primary focus of the business within which the wealth manager operates.
He also explained the role of a wealth manager in detail and said that a wealth manager starts by developing a plan that will maintain and increase a client's wealth based on that individual's financial situation, goals, and comfort level with risk. After the original plan is developed, the manager meets regularly with clients to update goals, review and rebalance the financial portfolio, and investigate whether additional services are needed, with the ultimate goal being to remain in the client’s service throughout their lifetime.
Mr. Varghese briefly explained the setting up of an investment policy, portfolio creation, portfolio MIS and reporting, and portfolio analytics. He also threw some light on estate planning, credit solutions, and alternate investment opportunities.
Mr. Varghese spoke on the opportunities that have emerged in the structured credit space as the current environment is enabling managers to negotiate for better yields with strong collaterals and securities in place. He also mentioned that the inflation trajectory is expected to move downward with moderation in food prices, lower crude prices, and subdued demands.
Mr. Varghese also shared updates on the real estate front and mentioned that the Indian Commercial Sector has been on a growth trajectory with the corporate expansions led space attaining a peak in 2019. Covid-19 has severely hit the residential real estate business and the sector has come to a standstill with a complete halt to site visits, discussions, documentation, and closures.
Following Mr. Varghese’s talk there was a brief question and answer session wherein the Speaker clarified the issues raised by the participants.
The meeting ended with the Vice President of the Chamber, Mr. K Harikumar thanking everyone for having participated in the meeting.