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With its strong six-decade pedigree, what prompted Bajaj Capital’s recent expansion into the family office set-up and wealth management for ultra HNIs?
Bajaj Capital has been growing the distribution business for the last six decades and moving towards the Wealth management and family office business for HNI clients, is just a natural and strategic progression for us. We have been the pioneers of Financial and retirement planning.
For the Global Private Wealth Set-up, Bajaj Capital being a seasoned player in the industry and having a brand name allows us to have dual advantage of three generations of wealth management experience along-with the agility of a startup.
Today there is a dearth of good RMs who can deal with the HNIs. How do you compete against banks and other wealth outfits?
Indeed, the scarcity of qualified talent in the wealth management sector in India can be attributed to a gap in the foundational knowledge and training. Recognizing this, Bajaj Capital is committed to introducing the "Moneyball" concept—leveraging a data-driven, analytical approach to build high-performing team even with identified key matrices . A significant emphasis will be placed on developing the soft skills of our Private Banker , ensuring they possess not only technical expertise but also the emotional intelligence required to manage high-net-worth clients effectively. We are focused on ongoing training for our wealth managers, equipping them with the adaptability and continuous learning mindset to thrive in this dynamic industry. Our Wealth managers will be more focused on knowledge sharing rather than Products.
Many MFDs want to cater to HNI clients but they do not know how to approach them. Can you share some tips on how to acquire HNIs clients?
MFDs catering to the affluent segment are poised to seize a significant opportunity, as emerging financial products such as factor investing and the expansion of new segment like revival of tourism, expansion of electric vehicle sector etc. To capitalize on this, MFDs must enhance their product knowledge and stay ahead of market trends. By adding relevant product and solutions, this will automatically open out new avenues and better connects with the client. The quality of research and the caliber of products offered will become the key differentiators in the wealth management landscape in India. The rise of affluent india is highly beneficial for MFDs.
Furthermore, MFDs must be aware of the global trends, as an increasing portion of wealthy investors’ portfolios will inevitably be allocated to international markets in the coming years.
What changes do you foresee in HNI preference for products? (MFs vs real estate vs alternates vs real assets vs structured products)
Now a days, Excess of information is the challenge with the HNI investors across the world. The clients need to have a segregation in the information that is relevant for their financial planning and goals.
Though Most of the clients are already informed about the market conditions and their investment options. All they are looking for is unique advice and a differentiated perspective on financial planning
Apart from that, due to the market performance and the returns it provided in last couple of years, there is a significant change in the return expectations among the wealthy investors and the challenge for the wealth managers will be to match the risk- return expectations.
It has been observed in various region the preference for international investments solutions is increasing and like any other tangible product and services our investors are looking for availabilty and access to global financial product and more informed decision making.
What are the behavioral changes that you see among the investors in India?
A recent value 360One report says that there is a shift in investment activities among Indian investors.
On the other hand, the younger generation of the Gen Z population is more bullish and participative in the India growth story. The opportunities and understanding sector and themes, last few years we have seen more retail participation and the demography of the investors is also changing, evidently there is focus on the participating in dips. More participation in Pre-IPOs and IPO.
These changes are positively changing the Indian equity market leading to continuous inflows despite the market going through a correction phase.