When it comes to building a profitable asset and wealth management company, industry experts suggest that factors such as trust, performance, and client relationships play a crucial role.
These experts were speaking as part of PMS AIF World's Crystal Grazing 6.0 event on February 15. PMS AIF WORLD is a modern, alternative-focused investment platform designed specifically for High Net-Worth Individuals (HNIs) and prioritises wealth creation through alpha-driven investment strategies.
Ashish Goel, Managing Partner & CEO of InvestSavvy, suggested that building an Asset Management Company (AMC) is akin to building any other business venture. He explained, "The first thing is management who need to be competent and honest. Management should have skin in the game, and so should the fund managers."
He added that in this business, you are not just managing money; you are managing something very core to an individual’s future and lifestyle. "It’s personal, and clients need to feel that you’re putting their interests first. It’s not just about selling a product," Goel explained.
Returns are also equally important. “The elephant in the room is returns. You might do everything else right, but if you are not performing, then clearly, even if the client loves you, they will have to move to somewhere where they get good returns," Goel said.
Anunaya Kumar, President & National Sales Head of 360 ONE Asset, concurred, adding that two very important aspects are process and people. “How do you define the engagement with your client? The element of trust is pretty high,” he said.
Kumar added that a satisfied client becomes a brand ambassador. “A satisfied client, a client who has had a good experience, is going to tell others, ‘Look, there is a fund from 360 One, which we feel has been pretty good,’” he said. The focus, he explained, should be on creating long-term relationships that go beyond just performance.
Doubling down on the importance of performance, Umesh Gupta, Head of PMS & Portfolio Manager at Ambit Wealth Management, said, “If you are a performance-driven organisation, if you are a performance-driven fund manager, then you will be able to survive.”
On returns, Goel added that one needs to look at what the risk is and what return is being generated. He explained that high returns in a volatile market do not always reflect long-term success, and clients should be educated on the risks involved.
Kumar added, “Ultimately, you need to set your expectations right. I am into an asset class, wherein with so much transparency… I am happy to look at a 15 to 18 percent kind of return, depending on what instrument you have chosen.”
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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