Mr. Abhishek Dubey, Head - Strategic Business Development Unit
Abhishek Dubey is the Head of Strategic Business Development Unit and part of NJ since last 10 years. Abhishek has played a key role in building the policy, process & system structures at NJ. He is the Chief Policy & Communications officer and also responsible for publications and the front-end - websites & on-line desks at NJ.
One of the primary roles of the Partners is rendering guidance for financial well-being and portfolio management expertise to the clients. This involves a good understanding of (a) the client – his needs, expectations and risk profile and (b) the portfolio – the existing portfolio insights for better decision making.
However, the actual practice, approach or the process followed by Partners differs vividly from one person to another. While there can be no one universally correct method to render financial guidance and expertise to clients, we can also agree that a ready template will definitely help us in the process. Keeping this in mind, NJ has recently launched two very exciting solutions for Partners. These solutions are aimed at strengthening the ability to the Partners to perform their role & responsibilities with greater knowledge and efficiency. Let us look at these solutions one by one.
1. AUTOMATED INVESTMENT SOLUTIONS (AIS)
The AIS is a tool to make an investment decision in the manner it ought to be taken, ie., the right way.
So what is a right about this way or decision-making process?
Well the guided AIS process is a step by step method with takes into consideration all the important elements of investment decision making. These key elements are (a) investment objective (b) time horizon (c) mode of investment (d) asset allocation strategy (e) risk profile of the investor and lastly (f) risk-return trade-off based on historical data.
As we can see, the process is very scientific, structured on pre-decided rules and the output is generated by a smart algorithm. The AIS makes use of actual historical data to throw scenarios for chosen asset allocation /strategy & period. Needless to say, the choice of a portfolio made here is one which is seconded by the system.
The final choice is not made by the system but by the investor looking at the risk-profile trade-offs and in line with his risk appetite. There is enough room for flexibility and the Partner may even change the portfolio, although it is not something which we recommend.
Why are we promoting this as an ideal template for decision making?
Simply put, it is a well-thought-out, researched and probably the right method for providing investment solutions to clients. It is also a hassle-free, simple, easy process. Many Partners who wonder what portfolio to recommend to clients will surely find this much helpful. It also brings a certain level of consistency in what you are recommending to investors. Many Partners struggling with designing the investment advisory process (for themselves or their team) can now skip the entire effort and follow the AIS.
Needless to say, it helps identify the risk appetite of investors and match suitable products. AIS helps investors understand the risk-return trade-off he is making, especially the risk he is taking. Over time, this will dramatically reduce the chances of any conflicts or investor shocks in case of bad markets. This transparent process has disclosures of all the important information to investors. The end result - investors who are adequately aware and comfortable with the risks they are taking and the returns they will get. Sticky assets + satisfied investors!
For those of you who are still unfamiliar with the solution, let me share the process in brief.
AIS Process: The process of AIS is very simple and the interface design is also easy to understand and follow. In brief, the following is the brief flow of the entire process.
[Step 1] Investment Objective – Build Wealth or Save Taxes >> [Step 2] Investment Choices – Horizon, Mode & Amount >> [Step 3] Asset Allocation strategy – Dynamic or Fixed Asset Allocation >> [Step 4] Portfolio Choice – from the listed options based on risk-return trade-off >> [Step 5] Finalisation + Order Request – through PIT mode >> [Step 6] Authorisation – by client on desk /email.
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2. MF PORTFOLIO REVIEW
The MF Portfolio Review is an easy tool for review of the client's portfolio and using this for decision making.
What are the current challenges faced by Partners?
Portfolio Review with Client is something that may evoke a sense of anxiety and worry in some Partners. What reports to take? What should be the points of discussion? What are the portfolio insights that I can share? There are many such questions raised by Partners which need answers. Worryingly, some Partners may not even raise these important questions for a client's portfolio review.
Then comes the arduous task of making the report for Clients. Again taking out multiple reports, formatting the reports, taking out insights from it, etc takes a lot of valuable time and effort from you. If the meeting is at a short notice, then probably you end us at the client's door with only the valuation report on hand – something which is already accessible to the Client.
How does the MF Portfolio Review help me?
How about getting a complete portfolio review report on click of a button? Interesting you would say.
The MF Portfolio Review is like a consolidated statement or report you can share and discuss with your clients. The information presented is mostly in a summarised format and either not available or not easily accessible from the existing desks.
The scope of the report is very wide. It gives an idea of the asset allocation, product level exposure, the live investment plans like SIP/SWP/STP, and MF sub-type wise exposure of the portfolio. It also helps us understand the AMC exposure, the scheme count in the portfolio. For evaluation of the schemes, it also gives us the holding % and the market performance of the scheme /quartile ranking. The report also helps us to know the client's investment behaviour (like SIPs & net investments) in the past few years. It gives us an update on his actual portfolio returns since inception. The report also covers the financial goals for the clients and suggestion investment option to fill the gap in the goals.
Needless to say, the report is very well organised and comprehensive for review or even reporting to the clients. In future, we have plans to incorporate even more features and widen the product scope to make it even more comprehensive.
Key Features:
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Full report @ click of a button
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Customisable report with choice of contact information and reports to show
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Insightful information helpful for decision making and new business
Key Benefits:
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Saves considerable time and effort – at least 2 hours for every client to generate a similar report
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Standardises report template /format – helps you to strengthen your practice and your reporting standards. Also helps greatly if you are handling a team who look after clients.
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Client satisfaction & retention – clients get proper insightful information, presented with disclosures
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Decision-making – info presented in such a way that decision making on the portfolio becomes very easy. It is also helpful to show the right picture to investors beyond just a valuation report. It also generates possibilities for additional business.
CRM – Contacts:
In addition to the above solutions, we have also launched a small new feature in the CRM solution offered to Partners. The new feature/tool allows Partners to sync their Mobile Contacts from Partner Desk – Mobile App into CRM. The synced contacts can then be imported as Leads in CRM. Needless to say, you have full control on whom you want to import as leads from your Contacts. The 'Contacts' information is very confidential and secure, accessible only to you.
The reason we are mentioning this new feature is that it is directly related to the 'Customer Acquisition' goal that you have for yourself. Since now it becomes very easy to add leads (from contacts) into CRM, we hope to see a substantial rise in the count of Leads you have in your CRM system. Once in CRM, you can keep a track of all tasks /meetings /followups and conversion status on your leads. Furthermore, you can also make full use of the communication tools available at your disposal to send emails to the leads.