Why should MFDs recommend cross-border investments?
While the Indian stock market capitalization has crossed $3 trillion, it accounts for only 3% of the global market cap. With the Indian market being limited to domestic companies, investors miss out on the opportunity to invest in some of the biggest companies across the globe like Google, Amazon, Netflix, Tesla and AMD, among others. In addition to being able to invest in companies and themes not available in India, cross border investments help diversify portfolios and have historically given better risk-adjusted returns over extended periods.
What are the benefits for customers to invest via a US investment account?
Investing via a US investment account gives direct access to buy investments in stocks and ETFs listed in the US markets. This gives a wider choice of investments and themes to investors, as compared to the limited options available via any domestic fund of fund. For example, clients intending to invest in themes like Biotechnology, Clean Energy and Commodities, or in regions like Europe and China can get direct and instant access to these investment options via their US investment account. Globalise further simplifies these thematic investments via curated portfolios available on its platform.
Secondly, where customers are planning to accumulate funds in US dollars for overseas expenses like education or real estate purchases, a US investment account actually enables one to save and accumulate money in US Dollars. Investing via any domestic investment option, will only yield realization of investments in Rupees whenever these are sold. Hence to accumulate US Dollars for overseas requirements, the international investment account is necessary.
Further benefits of a US investment account include cost efficiencies (an S&P tracker has an expense ratio of 0.03%-0.07%) and better performance due to avoidance of tracking errors with direct access to the markets.
How does Globalise enable a guided investing journey for investors and MFDs?
Globalise is a user-friendly digital platform specially designed for MFDs to enable their customers to invest in overseas markets. MFDs can digitally onboard their clients and provide real-time support to them through the investment lifecycle.
The investment process is supported by dedicated research, using the proficiency of some of the best financial experts, and analyzing millions of data points across 92 parameters with machine learning and proprietary algorithms.
To simplify investment decisions, a variety of portfolios, called Globes, are available on the platform. Globes are curated baskets of stocks and ETFs built for various goals and themes. They help simplify investment decisions. MFDs can choose from a variety of Globes on offer to help clients, depending on their investment philosophy and risk profile, to achieve their financial objectives.
Few salient features of Globalise platform for MFDs to utilize:
● A secure platform built with world-class encryption and security processes, complete with regulatory licenses in the US and India
● Access to Globes, Select Funds and other relevant research to better advise their clientele
● State-of-the-art technology designed to help manage their client portfolios and provide excellent client services
● Stay informed with the latest trends of the market with curated stock-specific news
● Open client account in minutes with no minimum balance
● Save for specific objectives and invest in emerging themes through the strategic and thematic Globes
How Globalise assists MFDs to increase their AuM and boost their revenues?
By partnering with Globalise, MFDs are able to expand their AuM to clients’ wealth invested in international assets. MFDs can also help NRI clients invest funds held in their overseas bank accounts via the Globalise platform, thus bringing those funds into their AuM. MFDs earn additional revenues both from a share of trading fees and also AuM fees on funds invested by their clients on Globalise, thus having the ability to grow their AuM and revenue from international assets and stay ahead of the curve.
