'Highly solvent individuals: gold is an investment option'

Synopsis

G Mr. Anuj Kapoor, who currently serves as Executive Director and Chief Executive Officer (CEO) of Private Wealth Management and Alternative Asset Management at JM Financial, tells ET Magazine why FIIs should consider gold as an investment option, and how a variety of alternatives and private equity are becoming popular among FIIs and CNFs.

Excerpts from the interview:

With geopolitical tensions rising, the price of gold is also moving up.

What portion of an INF investor's portfolio should be allocated to gold? The gold price has recently started to rise due to rising geopolitical tensions. We expect gold to continue''do well over the medium to long term amid expectations of weakening yields and normalization of the dollar index. To achieve a certain level of return from a portfolio, gold can be added to it to reduce risk or volatility. We recommend clients allocate 5-10% of the portfolio to gold depending on their individual risk profile.

How technology and digital transformation are playing an important role in the wealth management industry?

Digital transformation along with the application of latest technology has strengthened the abilities on both the client service and operations sides of the wealth management business. As clients now want real-time information at''lately? Do you have a strategy to nurture existing talent and attract new talent to the industry? "

We are seeing a significant talent shortage in our industry. The high demand for wealth management professionals automatically translates into a high cost of attracting quality talent. Due to the talent shortage, the overall quality of portfolio discussions in the industry is deteriorating. In addition, staff are molded to promote multiple products for short-term income, often neglecting the benefits of a comprehensive asset allocation approach or the importance of assessing investor risk, resulting in a poor client experience. At JM Financial, we have specific employee management policies aimed at developing a well''alternative investments will experience unprecedented growth in the coming years. Due to the integrated nature of our business within JM Financial, we are uniquely positioned to provide clients with first-class alternative investment solutions. Our strong investment banking franchise acts as a natural provider of proprietary products such as pre-IPO and IPO investments. Co-investment ideas alongside our private equity funds, structured loans and commercial mortgage drawbacks, asset management and loan funds are increasingly recognized by our clients because of their uniqueness, well-structured solutions and the right balance of risk and reward. Highlighted, we are developing our''regulatory framework. In addition, we are also focusing on wider regional coverage and strengthening our team by hiring quality professionals. We remain attentive to the composition of our product offerings and the timing of their launch.

We pride ourselves on proven and deep expertise in these areas and our clients are posted about this our strengths.

How do you plan to offer innovative customized solutions to your clients in India?

In wealth management, clients can be categorized into three broad groups: retail, affluent, INF and CNIF. For each of these segments, our offering is extremely acute. We offer customized solutions through an institutionalized outreach model to the top tier of clients, including large families and clients. JM Financial's extensive platform allows it to cater to all the financial needs of its''clients by providing portfolio-based services structured around solutions rather than relationships built on products.

The wealth management industry is at a turning point. Several factors, in addition to macroeconomic conditions, are shaping market dynamics. Other trends such as the democratization of advice and demographic changes, including generational wealth transfer, are also changing established business models and existing ways of serving clients. Clients increasingly expect end-to-end advice, leading to a shift from a product focus to client-centricity. They demand customized digital solutions with data and customizable advice. These''Trends are forcing financial institutions to differentiate themselves with a new customer service model with a focus on personalization.

How interested are INFs and CNIFs in India in capitalizing on global investment opportunities? What is your perspective on this issue?

With favorable FEMA regulations, Indian INFs and KNIFs are interested in accessing international opportunities outside the traditional and limited LRS route. We also strongly believe in the adage - don't put your eggs all in one basket, and through our experienced and favorable global team based in Singapore and UAE, we can help our clients access suitable global diversification. The trend for offshore investment flow is gaining momentum and we''Have built a strong knowledge base to help our clients navigate through the various investment structures. We believe this can be one of the many outstanding solutions we offer to our clients.

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