FundsIndia has launched a new product, ‘Managed Account’ that is intended to help advisors provide superior advisory services to hundreds of clients without increasing their team size and back office support.
Managed Accounts is a service through which the financial advisers can offer investments in multiple assets class like mutual funds, equities and ETFs. FundsIndia claims that it is a first of its kind service in India.
To enable this service, clients need to open an account on FundsIndia. They have to transfer their fund to trading account of platform. The minimum criterion to open a Managed Account is Rs 2 lakh and Rs 10,000 if invested through an SIP route. Currently, the service is available only for retail investors.
Here are some key features of Managed Account
Reduce cost and thereby increase your revenue:Through a Managed Account, it is claimed that advisors can provide financial advisory service to hundreds of clients without increasing team size, back office support, technology upgrade etc. Also, advisors can charge an annual fee up to 1% of managed AUM from clients as an advisory fee for providing this facility.
Automated Advisory: Just by feeding necessary details of clients, the system can generate risk profiling, asset allocation, portfolio building and etc. Also, the advisor can frequently customize the portfolio of his clients. Other actions like investments, redemptions or switching can also be done through a Managed Account.
Investment Selection: FundsIndia asserts that their research team will recommend suitable products for the advisor’s clients.
Portfolio Review: It will provide periodic review of portfolios on monthly, quarterly, half-yearly and annually basis. Advisor can trigger a portfolio review or rebalance it at any time.
“Keeping real time financial advice and scalable model in mind, we have developed this platform. The system will help advisors to service hundreds of clients without burdening their expenses,” says C.R. Chandrasekar, CEO, FundsIndia. He claims that advisers can double their revenue with the use of Managed Account.
FundsIndia will charge an annual fee of 25bps of managed AUM from the advisor’s clients.
