WF : What is your business resolution for the new year?

Shrikant :

a) To create a long term business plan with the new reality.

b) Improve productivity and set benchmarks for productivity.

c) Improve client experience and employee experience.

d) Make a Profit!

WF : What is your market outlook for 2011?

Shrikant : There seems to be a good mix of positives and negatives for the immediate future. Within India, the political landscape is unstable given the number of allegations of corruption against the ruling party. Governance is weak and there is the fear that it would affect economic decisions and policy. Inflation seems to be an animal no one can (or isn't) controlling. Rising interest rates are likely to erode margins for businesses. We are vulnerable with the large current account deficit that is being run up, too.

Internationally, the Euro zone worries have not gone away and could resurface with a vengeance. Employment figures from the US are still not encouraging. But given that there are signs of recovery in the US markets, FIIs could get distracted by the growth potential in their backyard.

What is going for us is the strong demand in India and that is going to continue stimulating growth at a high rate. Valuations wise, my belief is a little contrary to general thinking - I think that we have been slightly ahead of earnings and that makes us vulnerable to corrections, till results catch up. But nett-nett, I think the next 6 months is a good time to build investments in equities. Bonds remain a dicey game, and good quality FMPs are the simplest bet for about half of the debt portfolios.

WF : How do you see the business environment for advisors in 2011? What will be the key business drivers in 2011 in your view?

Shrikant : The business environment is going to be better than the last year, in my opinion. Not only are Advisors coming to grips with reality and hence exuding a more confident approach to fees, the market is deepening, too. Investors are realising, having read from the media and realisation of being mis-sold products, that there is a strong role for financial advisors in the true sense. And that the quality that is required is not always to be found in Banks. Key to taking advantage of this market environment will be to reach out to the market and show them that such services do exist.

WF : Which are the product segments (eg equity MFs / PMS/ debt funds/ real estate/ PE/ etc) that you are likely to focus on more in this year and why?

Shrikant : Mutual funds will continue to be our core focus, given that our experience on the performance front has been satisfactory. On the periphery, there would be other products such as real estate, private equity and other alternative products.

WF : Are there any changes you are planning on your advice delivery and service delivery to your clients this year? In what ways will this be different from the past?

Shrikant : We would be consolidating and making the existing system easier with the help of technology.

WF : What do you regard as the biggest competitor to advisors like yourself and how do you plan to tackle this competition?

Shrikant : I have always thought that the large international investment banks with their wealth management divisions are my competitors. So with a better spread of products, we should be able to counter it. Ease of execution will also matter.

WF : Are you planning any changes to your operating platform this year? Will you be considering the stock exchange platform, for example?

Shrikant : Yes we are studying the stock exchange platform in detail.

WF : The recent fraud case in a bank's wealth management unit has put a spotlight on the way wealth management businesses are conducted. Do you see that as a positive or a negative development for advisors? In what ways do you see the wealth management business changing, if at all, as a fall-out of this scam?

Shrikant : There will be a greater emphasis on the 'trust' factor, and this is where the boutique firms will score. Technology, like what Hexagon uses will enable greater transparency for investors and keep the comfort levels high. Firms will have to buckle up and streamline operational processes to prevent fraud. But, the shelf life of a scam in India is hardly 30 to 60 days. All bad memories will be erased after that....

WF : What have been some of the most successful initiatives you implemented in 2010 that either drove up revenues or controlled costs?

Shrikant : Revenues were kept stable with the implementation of our advisory fee model. The roll out of this project was among the most challenging tasks I've faced. And thankfully successful. Work in progress is a project to streamline process flow and bring in greater efficiency. This I am hoping will drive down costs and at the same time improve delivery to clients.

WF : What in your view are the most important things that advisors should focus on to drive growth?

Shrikant :

1. Methods to keep client communication at a high level.

2. If a fee model is not in place, do it.

3. Technology to manage higher business flows.

4. Attracting and retaining talent.

               

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