Rajesh Iyer, CEO of DHFL Pramerica Mutual Fund, shares his industry perspectives in an exclusive interaction. Excerpts:
As you have worked in the wealth management space, how is the retail approach to investing different from that for HNIs? HNIs are believed to prioritise capital protection, while retail investors are all about wealth creation.
For HNIs, you are looking at very large corpusses. So, what wealth managers do is to create a safety pocket. Of Rs. 100 crore assets, technically, you do not need more than Rs. 20-40 crore depending on how you are living . This money has to be capital protected. Many HNIs and UHNIs used to look at tax-free bonds for that purpose. This is the money where they do not want to take any risk whatsoever and are okay with lower returns. But for the remaining portfolio, the objective could be wealth creation.
