mumbai | february 2017 | pages 8 emphasis is now on...

A COMPILATION OF ICICI PRUDENTIAL MUTUAL FUND MEDIA VIEWS

MUMBAI | FEBRUARY 2017 | PAGES 8

basis, particularly if you are underweight on this asset class. Overall, we expect corporate earnings to steadily increase over the next 2 years.

In terms of themes, we are highly positive on the infrastructure sector. We expect this sector to do well over the next two years. The government’s support to this sector with its intent to improve the country’s infrastructure is positive. This sector has been an underdog for many years and investors will benefit due to current low valuations. Another theme to look out for is the IT sector. With the US political scenario currently being a challenge for this sector, it is presently at a low valuation, and will offer good risk-adjusted returns.

Budget 2017 has been balanced on the numbers and projections. The corporate, excise and service tax targets that are proposed are reasonable and likely to be achieved. In case of individual taxes, the projections are a tad higher, but govern-ment’s data analysis on this front will help collect the expected increase of 25 percent in direct taxes. In case of indirect taxes, there are no proposed changes. This clearly indicates the government’s intention to implement GST. There might be hiccups in the implementation process, but we believe these will be overcome. From the macro perspective, no big fiscal stimulus has been announced in the budget. The whole thesis of the government is to create a healthy macro-

economic environment with a low current account deficit, under-controlled fiscal deficit and low i n f l a t i o n . T h i s a g a i n w i l l encourage money to come into financial assets, which, in turn, will help econo-mic growth.

As we expected, the government has kept the path of fiscal consolidation in mind pegging the fiscal deficit at 3.2 percent for next year, with the target of 3 percent for 2018-19. Given the circumstances, that is a prag-matic move by the government. The rural focus and increase in spending on infrastructure is a positive outcome. Giving infra-structure status to affordable housing is also a welcome move. The reduction in income tax in the lowest tax bracket is will enhance savings in the hands of people. This will also positively help the capital markets.

To conclude, Budget 2017 provides the impetus for further growth in equity valuations. Overall, the budget has been very positive. Hence, we believe that investors should continue to repose their faith in financial assets and continue to invest in equity assets. With the inflows into financial savings set to rise because of the broader budget moves, the market’s price-to-earnings looks to get re-rated. Hence, investors should keep investing in financial assets regularly. For lump-sum investors, the model way to invest in the market is to invest through dynamic asset allocation funds.

The Budget 2017 proposals are positive for financial assets and the returns from equity is expected to remain on an uptrend. In terms of the macros, we are seeing a continuation of prudent policies that defined the budgets of the past three years. Two things stand out. One, the Budget continues to support financial assets, which produc-tive assets for the economy. Two, physical assets are being slowly discouraged, the incremental capital output to the economy is very low.

On this front, one of the Budget proposals in case of real estate is to restrict the tax benefits in the case of house property. This will continue to drive people away from physical assets like as real estate. Gold has not delivered great returns over the last three years. Before this, gold returns were a factor of the rupee-dollar exchange rate. Now with the country’s current account deficit under control, the exchange rate is likely to remain well-balanced. Hence, gold’s not really likely to be a favourable an asset class with investors.

Hence, the flows into the capital markets and towards financial assets will become increasingly robust in the coming months. We have been advising investment in equity to be spread over a few months until March 2017, but the current scenar io makes i t compelling to invest lump-sum amounts into equities on a priority

Nimesh Shah MD & CEO ICICI Prudential Mutual Fund

Indian Express | February 02, 2017

Professional Views

Pg. 2

S Naren, ED & CIOICICI Prudential Mutual Fund

Tarakki Corner

Pg. 8

Emphasis is now on financial savings

The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors.

Fund Reviews

Pg. 3ICICI Prudential Focused Bluechip Equity Fund

The Rising Star

ICICI Prudential Balanced Advantage Fund

The Silver Bullet

ICICI Prudential Value Discovery Fund

One Fund Review

Pg. 4

Mind Over MatterS Naren, ED & CIO

ICICI Prudential Mutual Fund

Pg. 6

Shivam MehrotraARN - 79049Kashipur

Shreya VaidyaARN - 52252

Borivali - Mumbai

Events

Pg. 5

Outlook Money Awards 2016

Professional Views

Go For Dynamic Asset Allocation Funds

Manish Gunwani, Deputy CIO - EquityICICI Prudential Mutual Fund

2 Interview TARAKKI TIMES, FEBRUARY 2017

What’s your broad take on the equity markets in 2017? What key risks do you foresee, and do you feel that a major correction is in the offing?

The markets are likely to be volatile in the first few months of 2017 owing to several events lined up around that time. The newly elected US President assuming charge, followed by the Union Budget on February 1, 2017, all hold the potential to buoy the market either ways.

The effects of various initiatives taken by the Central govern-ment, divergent Central Bank policy stance globally, outlook on commodity markets and the dynamic environment in devel-oped markets, are all likely to keep the Street edgy.

Given these volatile times, we are recommending investors to opt for dynamic asset allocation funds. More importantly, invest with a two-year view as we believe that the benefit of all the current initiatives could start bearing fruit from the second half of 2018.

W h a t s e c t o r s a r e y o u particularly bullish on for 2017 and 2018?

Infrastructure and telecom are the sectors to watch out for. In infrastructure, there is a general consensus on requirement for development, but nothing much has happened in this space.

Going forward, we believe the government may take several

strides which will aid in overall infra development and generate employment as well. Telecom, on the other hand, at current valuation presents an interes-t ing long-term investment opportunity.

Coming to the bond markets, at what yields do you see the d u r a t i o n p l a y b e c o m i n g unattractive? Should investors start switching out of the duration and become more accrual focused at this stage?

We remain positive in the fixed income market and recommend investors to stay invested in long duration funds. For incremental allocation into debt, one can consider short and medium and dynamic duration funds owing to relatively stable and better risk adjusted returns.

On the yield curve, we are positive on the two to five-year segment.

Do you see global factors impacting emerging markets in 2017- in particular India?

Any news in the global financial markets has the potential to impact the emerging markets as a whole and India is no exception.

Given the positive macro factors and the growth story, we expect India to remain a bright spot among the emerging markets.

What ’s your take on how demonetisation will play out over the next 12-24 months… what do you foresee as the medium- to long-term impact on the Indian equity markets, if any?

It is too early to comment as to what the real impact of demonetisation will be. There may be some near term hiccups because of demand lagging in the near term.

Having said that, we do not see the impact of this announcement beyond the next two quarters. We believe this step will be a long-term positive for the market and the economy alike.

We know you’re not a big fan of PE ratio as an indicator, but valuations aren’t exactly cheap right now. In the present scenario, what asset allocation do you suggest for say, a moderate risk bearing investor with a three- to five-year time horizon?

Such an investor, for lump sum investments, can consider inves-

ting in balanced/asset allocation funds, wherein the fund mana-ger can balance the portfolio as per the attractiveness of debt and equity based on certain market yardstick. Also, continue with SIPs (systematic invest-ment plans) in pure equity fund. What are your top three “out of the box” stock picks for 2017 and why?

Since we are a mutual fund we cannot comment on individual stocks. From a mutual fund perspective, we recommend equity-oriented hybrid/dynamic asset allocation funds for lump sum investments at this junc-ture.

From fixed income side, we r e c o m m e n d i n c r e m e n t a l allocation to short and medium duration fund.

Lastly, do you have any words of advice for value investors like yourself?

If one does not understand financial markets, invest through mutual funds.

S Naren ED & CIO ICICI Prudential Mutual Fund

Business World | January 17, 2017

Go For Dynamic Asset Allocation Funds

As 2017 glides into a volatile world and equity markets continue to swing like a yoyo, Aniruddha Bose, strives to glean tips on the best investment decisions in the New Year

It is too early to comment on the real impact of demonetisation will be. There may be some near-term hiccups. However, we do not see it having an impact beyond the next two quarters


3Fund Reviews TARAKKI TIMES, FEBRUARY 2017

ICICI Prudential Focused Bluechip Equity Fund

The Rising StarMutual Fund Insight | February 2017

ith over twice the benchmark

Wreturns in 2016, this fund has once again proved its mettle

in a difficult market. This has earned it a five star rating for much of the last six years, with a slight dip to four stars in recent times. Despite being large cap in its focus, this fund does hug the benchmark and it selects high conviction bets to which it takes concentrated exposure. The fund basically relies on bottom-up stock selection to identify companies that offer reasonable potential for long term growth. Sector deviations from the benchmark are restricted to 5 per cent either way. The fund usually allocates 90 per cent plus to large cap stocks, and 5-10 per cent to mid caps. In the last one year or so, it has further pegged up its exposure to large cap stocks with a 95% plus exposure in recent months. The exposure to mid-caps has been pegged back to 5-6 per cent.

While the fund’s one year return is generally 5 percentage points ahead of

its category, its three year and five year show suggest a 4-6 percentage point outperformance. It has also beaten its peers by margins of 4-5 percentage points. One shortcoming of this relatively new fund is that it hasn’t lived through a bad bear patch after launch in 2008. In 2011 and 2015 though, it managed to contain downside well. Though fund managers have been shuffled, this hasn’t had a material impact on its style or returns.

An aggressive large-cap fund that delivers.

Top-five sectors (%)

Assets ` 11,635 cr as on Nov 30, 2016

Trailing returns (%)Fund Nifty 50 Index

1-Year

3-Year

5-Year

Recentrally

Recentcrash

9.10

16.20

12.09

14.90

3.017.74

27.3623.77

Recent rally: Dec 30, 2011 - Mar 03, 2015 Recent crash: Mar 04, 2015 - Feb 11, 2016

-18.63

MANISH GUNWANI

` 8.24 lakh9 lakh

6 lakh

3 lakh

0January 2012 December 2016`10,000 invested monthly for 5 years (`6 lakh)

Fund history

Rating

Year

Quartile ranking*

Fund return (%)

Category return (%)

Nifty 50 Index (%)

Investment styleGrowth Blend Value

Fund

sty

le CapitalisationLarge M

edium Sm

all

SIP Value (`)

2010 2011 2012 2013 2014 2015 2016

1 1 21 1

27.07 26.79-16.41 10.21 41.10 7.74-0.21

17.16 27.77-23.54 6.79 35.21 4.46-1.84

17.95 27.70-24.62 6.76 31.39 3.01-4.06

*Quartile ranking means the quartile in which the fund appears when all the funds in the category are arrangedin a descending order of returns.

Fund managerManish Gunwani

LaunchMay 2008

Expense ratio (%) REGULAR

2.17

10.34

10.75

12.80

13.50

28.85 31.54

13.34

13.92

6.65

11.68

Financial Energy TechnologyHealthcare Automobile

Market capitalisation (%)Large caps95.04

Mid caps4.96

Amount invested

1

Data as on Dec 31, ‘16. Portfolio-related data as on Nov 30, ‘16.

-21.81

3

“Generally, large caps may turn out to be a good bet in turbulent economic conditions as these companies are more stable, and less volatile; their robust business models helps them recover more quickly in a reviving economy.”


4 TARAKKI TIMES, FEBRUARY 2017

Business World | January 17, 2017

Mint | January 2017

mint50BESTFUNDS

Mint 50 is a curated list of 50 investment-worthy funds.


Corpus (` cr) (as on 31 Dec 2016) 14,918.67

NAV (as on 11 Jan 2017) 121.45

Expense ratio (as on 30 Nov 2016) 2.26

Category average expense ratio(as on 30 Nov 2016)

2.39

Minimum Investment ` 1,000

Return How ` 10,000 has grown

1,30,000

1,10,000

90,000

70,000

11 Jan 2017

30,000

50,000

19 Aug 2004

Base value taken as 10,000 Source: Value Research

10,000

55,080

1,21,208


S&P BSE 500 Index


One Fund Review


The Silver Bullet


IC IC I Prudent ia l Ba lanced Advantage Fund is a “Dynamic Asset Allocation Fund”. It utilises a proprietary model based on Price to Book Value to determine an ideal split between equities and debt. The fund rebalances its portfolio daily, and the equity component in its portfolio ranges from 30 per cent to 80 per cent at any given point in time. The fund also utilises equity derivatives

and arbitrage strategies to hedge its portfolio. By doing this, it can command equity- taxation, which further benefits investors by creating tax efficiencies.

The fund has grown immensely since 2013, with its assets swelling from a nominal ` 250 crore in 2013 to a colossal `16,400 crore plus as on date. By buying stocks when markets fall and selling them on their way up, the fund, in a manner o f speaking, saves investors from

their innate own tendencies to do the opposite and make losses as a result; greed and fear often compel investors to sell stocks after they’ve fallen in value, only to buy them later after markets have risen.

The equity portion of the fund is heavily skewed towards large caps, and the style of fund management is conservative. These strategies help cushion the blow to investors during falling markets.

RISK CONTROL MEASURES • Daily rebalancing between

equity & debt • Predominantly large cap bias

for the equity portion, limits on sector deviation

• Hedging using derivative strategies

Ideally Suited For…

Moderate risk investors who are looking to create wealth from equities by generating relatively stable, early double-digit returns over a 3 to 5-year horizon, but are worried about market volatility.

Why Invest Here in 2017

With multiple global and local factors in play, expect a rough ride for the markets in 2017. ICICI Prudential Balanced Advantage Fund will spare you the trouble of deciding when and how much to invest into equit ies, while keeping the overall risk levels in your portfolio in check.

This can be your ‘shut and forget’ fund for the next five years.

ICICI Prudential Balanced Advantage Fund has grown immensely since 2013, with its assets swelling from a nominal `250 crore in 2013 to a colossal `16,400 crore plus as on date

Fund Reviews


5Events TARAKKI TIMES, FEBRUARY 2017

ICICI Prudential AMC winners all the wayOutlook Money Awards 2016

Rahul Goswami, CIO - Fixed Income, ICICI Prudential AMC and Manish Banthia, Fund Manager, Fixed Income receive Best Debt Fund House of the year award from Honourable Chief Guest Dr. Murli Manohar Joshi, Member of Parliament

Rahul Goswami, CIO - Fixed Income, ICICI Prudential AMC, S Naren, ED & CIO, ICICI Prudential AMC and Manish Banthia, Fund Manager, Fixed Income with their trophy and citation

S Naren, ED & CIO, ICICI Prudential AMC with the Best Fund House Runnerup Award

Rahul Goswami, CIO - Fixed Income, ICICI Prudential AMC with the Best Debt Fund House Award


6 InterviewTARAKKI TIMES, FEBRUARY 2017

S Naren, Executive Director and Chief Investment Officer of ICICI Prudential AMC, has a special feel of the market. Arun Kejriwal takes a close look at what makes him tick.

A B.Tech from IIT Madras and a Tamilian to boot is obviously e x p e c t e d t o b e c o m e a n engineer, right?

Not if you are S Naren, who went on to IIM Calcutta to major in finance and was fascinated with the movement of stock prices. “It became my hobby watching the stock market,” he admits now, years later.

Executive Director and Chief Investment Officer of ICICI Prudential AMC, Naren belongs to that exclusive breed, about who ‘catching them early ’, ceases to be merely a phrase.

His early baptism came from his father, himself an electrical engineer from BITS Pilani, who had a keen understanding of all things financial and was an ardent market tracker. It turned out to be good blooding, from the right quarters.

How did Naren come to the capital markets and what was this journey like to the current position at ICICI Prudential AMC?

For one, it started early. Even while in school, his heightened interest in markets was further fuelled when Naren saw his father apply for public issues in FERA (MNC) companies in the 1970’s. It all seemed like lottery. He saw returns being made and was transfixed by the markets. In the 1980’s, it was the Reliance group of issues, which kept his interest alive and kicking. As the days went by, Naren understood the market dyna-mics much better.

That was accompanied by pure passion and just how?

Even at that early stage, Naren was probably one of the earliest readers of the Mumbai edition of the Economic Times in Chennai.

Such was his zeal, that when work took his father to Kolkata for about two weeks in a month, he would persuade him to bring copies of the Business Standard and pour over the pages, looking into every nuance and cranny.

Modern day readers would find this odd, but this period well precedes the internet age when every publication has an online edition. The only option lay in getting an edition from another place - some lengths to go to meet your passion. Naren recalls those days of innocence, when his dose of company news came from the balance sheets sourced from the waste paper mart. Today, a surfeit of information is available at the click of a button.

Returning to Chennai, he joined a stock broking company. “In 1990, I got an opportunity to work in the merchant banking division of the HSBC bank. Here I saw the controller of capital issues (CCI), post-CCI days, coming of Sebi and few free pricing issues. I saw it all.

In 1994, the markets were booming and I was super interes-ted in equities, so I quit HSBC and a joined broking firm. It was a pro-cyclical decision when markets were booming,” he remembers.

Naren does not forget the challenges in his path and the successes, which came along as matter of course. “In 2000, I joined HDFC Securities and came to Mumbai from Chennai. There was a sales person, Om, who was head of institutional sales at HDFC Securities and he saw that I had good knowledge o f r esea rch . I was g i ven additional responsibil ity of research in a formal way along with operations, which I was managing. Then for a year, I got a chance to do only research and I moved to Refco Sify. Since 2004 I am at ICICI Prudential.”

Could Naren narrate some s u c c e s s s t o r i e s a n d t h e rationale behind them?

One success story, he reminis-

ces, was a pharma company from Gujarat. Certain drugs coming out from patent were a risk in that sector. “We bet on the company, which was reasonably cheap and not favoured by the market for well known reasons. We did very well in the stock and made huge money.

The rationale was we bet on fundamenta ls , reasonable valuations and a tried and tested management, which had done well. The holding of the fund exceeded 85 after the price went up,” says the executive director and chief investment officer of ICICI Prudential AMC.

There were also setbacks. Naren bet on weaker infrastructure co-mpanies, which were leveraged hoping that they would be able to deleverage as they went forward. “They would be able to raise equity money and dele-verage themselves.

This was just after the elections of 2014, but my thinking went wrong. Similarly in 2006-2007, I invested in stocks from the textile, fertiliser and paper, which turned out to value traps, leading to the second mistake.”

What are the major influences in his life?

There were many who he looked up to. The years 2007-2009 were a very fortuitous time for him, managing other people’s money. Thanks to the internet, he got the opportunity to read up a lot of interests.

“Based on those readings I ended up having three people as my gurus. They were Michael Maboussin, James Montier and Howard Marks. I call them the three M’s. I rely on them for my global theory. Locally, we have followed almost all who have invested in equities in a big way. We have followed fund mana-gers who were there before I became a fund manager.” The principle obviously, is the more you see, the more you learn.

Does a good or bad day at the markets affect you?

“If I am affected by the day, the answer is yes. But does it affect me meaningfully? The answer is no. I have gone through a year like 2007 when my funds had u n d e r - p e r f o r m e d f a i r l y drastically, but I stuck to my principles and I did not change my style of fund management”.

From hindsight, Naren says in value style, they could create a large fund only because they did not deviate from the style of investing.

The style resulted in large underperformance in 2007. In 2008, it neither under nor over performed, but in 2009 the fund over performed on a large scale. In fact the entire period, 2007-2009, became a case of great over performance compared to other schemes. Naren recalls.

“The Discovery Fund was the one I was talking about. If you asked me whether the under-performance of 2007 caused me pain as a fund manager, the answer is yes. Did I change my style because I underperformed? The answer is no. In fact, my company has internalised the processes and agreed that the strategy of the fund would not be changed even after a failure.” No risk averseness here, for sure.

Naren mulls upon his strategy. Broadly speaking, he advices, avo id sec to rs , wh ich a re overvalued. “Avoid sectors, which are over-hyped. Also avoid sectors, which are very cheap and there is no interest. For example in 2007, we were very bullish on pharmaceuticals and were very bearish on anything to do with infrastructure. So if you go back to 2007, pharma did badly and infrastructure did very well. If you look at my portfolios now, you will find we have a large holding in a telecom stock.

Another stock is utilities. It is uncommon to find such stocks in a portfolio. This is part of a style to invest where valuations are cheap and you are willing to wait.” Words of wisdom, without doubt.

Financial Chronicle | January 28, 2017

Mind Over Matter


7TARAKKI TIMES, FEBRUARY 2017

Naren has talked about interest rates falling for quite some time. Well, now it has started to happen.

So what are his views on rates going forward considering the e x c e s s l i q u i d i t y p o s t -November 8 and the rising rates in US?

Naren is a firm believer of rates dropping from 2014 and thinks that the cycle will end this year. “The safest part of the cycle drop is over and we have stopped recommending our clients to invest in such products. There are a number of funds which need a more aggressive push,” he explains, quoting the example of real estate.

Naren says a massive real estate bubble existed in 2012-13. “Real estate has been made unaffor-dable in many parts of Mumbai and Delhi. I am of the belief that real estate prices have to be connected to rental yields and mortgage rates.

If you remove corruption and black money rates, prices would relate to rental yields and mortgage rates. In India, they have a long way to go between the real estate rental yields and mortgage rents, where the difference is to the tune of 6 per cent.”

What does Naren like in terms of sectors going forward?

He favours telecom and power, where he would also like to invest in a big way. “In power I would look at generat ion, transmission and coal. I like everything in this sector except the power genera-tion capex. This is because you first need the demand to incre-ase leading to higher generation before capex happens.”

And what about his dislikes?

“I am underweight in NBFC’s and a contrarian call is in auto. I do not like auto simply because of the fact that countries like Singapore and Hong Kong do not have personal transport for all.

How can India, which is a much poorer country, have enough roads and infrastructure to support private or personal transport for all?”

Good question to ask. It is a contrarian call certainly, says Naren, adding for good measure that valuations for the sector certainly do not come cheap.

What about post demone-tisation? Does he expect more action to follow, as the note ban could surely not be an isolated step?

Naren is convinced that role of cash has to be reduced or brought down. Corruption has to

come down. This can only happen i f p rocesses and systems are streamlined. He elaborates further.

“ Take fo r example how a passport is now issued in India compared to say a few years ago. We need to use the mobile phone and internet to do things, which would help in this process.

Clearly we have a lot that needs to be done, but cash usage has to significantly come down as a starter.” Clearly, one of those who believes in the virtues of Narendra Modi’s note ban.

What would be his sage advice to readers who look upon him as a role model?

Naren explains that you need to focus on what you are pass-ionate about. “I wanted to be a fund manager and I was passionate about it from the days that I was a doing my MBA. You need to put in a lot of hard work.

Secondly, what I learnt as an investor is the ability to handle a bubble and a burst. The ability to

be cautious in a bubble when it is happening and the courage to invest in a burst.”

Naren quotes Warren Buffet, one of his icons, when he visited India in 2012-13 and was asked about his learning from six decades of investing. Buffet said the ability to handle bubbles and bursts are very critical. In six decades you wil l have six bubbles and bursts.

What are Naren’s views on the importance of meeting management?

The history of the company is to

him, of more importance. “I tell my team that you should be very careful when investing in a company without history. Today in India between the balance sheet, conference calls and the internet, you have enough information to make an informed decision,” he points out.

Management meeting is not such an important factor for him. From 1990 when information was not available to today when internet gives you everything, there has been a fundamental change in behavioural finance and information is that much easier.

The mutual fund industry had a great 2016. What does the future bode?

The industry, says Naren, has p r o v i d e d g o o d c u s t o m e r experience to investors. When the next bubble takes place, it would be critical to see how the industry responds and takes care of its investors.

When the next bubble will happen is hard to predict. It could happen two, three or ten years from now, no one can say. But the important thing is how the industry handles that bubble from a customer’s viewpoint, which would be critical for growth, post the bubble.

Naren also believes that the focus on returns seems to be misplaced. While people may have had returns, the experience has been poor, as like in the case of infra funds. The second thing to look at is buying, selling and sizing. The fund manager takes the decision for these aspects, while the individual looks at just buying.

What is his principle challenge?

Obviously, how he handles the next bubble. But every man has an intensely personal side, away from the dimes and dollars, and Naren is no exception. His son has a genetic disorder known as Fragile X.

Why for instance, he wants to know, has not enough progress been made in areas concerning disorders connected to the brain in the last 20 years? Why indeed.

Real estate has been made unaffordable in many parts of Mumbai and Delhi. I am of the belief that real estate prices have to be connected to rental yields and mortgage rates.

Interview


Your Tarakki CornerYour Tarakki Corner

the intensive IAP sessions she conducts. The one criterion she adheres to while working with her clients is that she does not deal with clients whose investment horizon is less than a decade.

Shreya is a firm practitioner of 'Customer is king' approach as she believes that in today's competitive world, one can make a difference only by offering superior service to one's clients'.

Her advice for budding IFAs is plain and simple - Realize your forte and work on improving one's services. Above all believe in what you do. When asked what her forte has been, pat comes the reply - Understanding people and their emotions, simply put Behavioral Analysis. “I try to understand client's needs and wants, and try to manage their emotions/ expectations accordingly.” She adds, “Another point to remember is the importance of soft skills. While knowledge is the key to success, soft skills is the lock."

“I not only manage people's money but also manage their emotions," believes Shreya Vaidya from Mumbai, who started her journey 15 years back in this sector. About two years ago, she left the comfort of her full-time job of handling HNI clients fora top bank,and started her own firm. Today, she is handling an AUM of 50 crores.

Indeed her stint as a professional helped make good connections but she had realized that she need to concentrate more on certain section of society who needed her expertise to make sound financial decisions. As a result, she started her own firm, Smart Wealth which provides services for group investors.

As per Shreya, extensive knowledge about products is the key to success, in this arena. She conducts Investor Awareness Programs (IAPs) throughout the week to fill in the blanks of financial planning for her target audience. Not stopping at this, she conducts personal counselling for the attendees post IAP. At Smart Wealth, the goal is to educate investors so that they can plan their finances better.

She is currently managing around 500 families, all of which are active accounts. She mainly gets her clients through

and I lost the trust of my first set of customers. Till date, I haven't been able to go back to them,” he notes.

Post this learning and coming to terms with the pitfalls of product ignorance. He ramped up on his learning. Soon, he started his own mutual fund distribution business through NJ India, and learned by means of various training programs, he realized the true essence of this business. Though the initial days were hard he never stopped. “The years 2011-13 was the most challenging as markets were choppy and so were the investors,” he recalls. In the meantime, he conducted several Investor Awareness Programs in Kashipur and around.

When asked what his advice would be for budding IFAs, he said that one should be proud of what one is doing. He also believes one should always keep eye on client's long and short-term goals and work towards it.

Shivam currently advices and manages around 400 families; all, which are active clients, and the highlight here is that none of these clients are through referrals. He operates in 11 different districts and is always on the hunt of new opportunities. Given the large clientele, he has developed a mobile application, such that his clients can keep a track of their portfolio.

Shivam Mehrotra from Money Solutions, hails from a small town in Uttrakhand known as Kashipur. The town maybe small, but his dreams and achievements are not. He raced to the AUM of `98 crore within three years. In fact he tripled his AUM from `22crore in March 2016 to `98 crore by January 2017 and he aims to end the financial year at `150 crore of AUM.

His story started when his father expired and the entire burden to run the family fell on him and his elder sister. They continued to run their father's business as a means to complete their secondary education, post which Shivam started working for a Life Insurance company. “I comple-ted my 10+2 and started working with a Life Insurance Company,” he observes.

But he never gave up, and developed a keen interest on reading about marketing, sales and selling strategies, that helped him to become good at his job. As a result of his efforts, he became the youngest advisor to qualify for Million Dollar Round Table.

Though he developed the skills to sell, the next hurdle was to independently research and understand the products that he sold. Given the lack of fair understanding of products, he ended up selling expensive products and as a result his clients paid the price for his ignorance in the 2008 market crash.“My business collapsed, income dried up

Shivam MehrotraARN - 79049Kashipur

Shreya VaidyaARN - 52252

Borivali - Mumbai

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For over a decade, Outlook Money awards have served as a widely respected benchmark for recognizing excellence in financial services sector for demonstrated leadership and value creation in the delivery of superior products and services to the consumers. For the year 2016, the areas of focus have been innovation, governance, performance & service.

8 TARAKKI TIMES, FEBRUARY 2017 Tarakki Corner

mumbai | february 2017 | pages 8 emphasis is now on...

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