Asset Allocation Model - Kotak Wealth Management Asset Behavior - Portfolio Risk Portfolio risk arises from the variability in performance across various asset classes. Asset classes are by definition those securities which can be grouped by shared characteristics, law, regulation and their behavior in the market over time. Assets are classified by their risk and return behavior in any given market environment. Asset Allocation Practice Asset classes perform differently due to the inherent nature of the asset type. Asset Allocation Process Asset Allocation is the process of deciding how to distribute wealth among various asset classes and sectors. Stabilizing Returns Understanding how assets perform helps in achieving a more stable return variability through asset allocation decisions. Affect about 90% of return variability over time Explain about 40% of the differences in returns Asset allocation is the major contributor to portfolio risk and return.
Wealth Management Plan & Risks - Kotak Wealth Management When a wealth plan is made, the first step is to assess your capacity for undertaking financial risk. The capacity for risk depends on your responsibilities, objectives, personality and many other variables. To gain this understanding, the first step is: The risk profile is an individual’s ability to assume financial risk as part of his/her investment portfolio. The reward in assuming higher risks lies in the possibility of generating higher returns. Risk and Your Environment Deciding how much risk is good and how much is bad depends primarily on your impending responsibilities and feasibility of lifestyle. Demographics such as age and life stage Socio economic profile attributes such as habits and lifestyle Though two individuals may have similar risk profiles, they may still differ in their attitudes to risk taking activities. For example, consider Mr. Risk and Your Needs Cognition of your risk capacity includes understanding your financial needs and expectations in specific detail.
Wealth Management Process in India - Kotak Wealth Management Before exploring investment strategies and planning, it is important to first gain an understanding of yourself and your needs. Basis this, your investment goals can be structured and the appropriate services can be employed to gather growth opportunities for your wealth. Understanding Investment Needs The following aspects will help you understand your investment needs better: Risks and You explains the investor - risk capacity and relationship Know Your Asset Classes to understand portfolio risk Build Your Portfolio with a balance of risk and return Transaction Services Select investment avenues and arrange for transactions with knowledge of: Types of Products available as investment choices Research services to aid your transactions Asset Advisory Services You can further opt for a structured service that steps in as your advisor. Estate Planning Services Fortifying your wealth over generations is carried out through Estate Planning.
Private Wealth Management Services - Kotak Wealth Management The Kotak Mahindra Group (‘Kotak’) has one of the oldest and the most respected Wealth Management teams in India. Kotak offers the widest range of wealth management solutions to High Net-Worth Individuals for over fifteen years, emerging as the largest Wealth Manager by a wide margin. The Kotak client base ranges from entrepreneurs to business families, and also includes employed professionals. Kotak provides financial advice and manages wealth for 44% of India’s top 100 families with Wealth Management offices spread across 10 cities in India. The Kotak Mahindra Group The entire spectrum of financial needs of individuals and corporates is addressed at the Kotak Mahindra Group. Awards and Recognition The Kotak Mahindra Group has offered a diverse set of financial services to its customers over the past 29 years earning recognition from peers and experts in the industry. Kotak Wealth Management Asset Advisory Awards won by the Group
Structured Investment Products - Kotak Wealth Management When formulating your investment strategy it is important to determine your risk profile and attitude towards risk, the volatility of asset classes and the risk return profile of the products at hand. For maximum benefits from the asset allocation process, you need: Access to a wide range of product offerings Support of an in-depth research team Superior means of executing transactions As an investor, you can engage the services of an investment firm offering transaction services, which encompass wide product range access, research and execution services. Outsource: to a firm capable of translating the complex asset allocation Delegate: as the asset allocator yourself while the firm executes decisions The wide range of products offered by investment firms can be broadly divided in traditional and specialized products Traditional Products Investment products that are commonly known avenues to grow wealth are: Specialized Products * Information provided is solely for educative purpose.
Investment Schemes Recommendation - Kotak Wealth Management The creation of an investment portfolio best suited to your needs arises from deep research and understanding of the various products available. You may have a fair idea of which asset classes and product types interest you, but you will need to further choose from various schemes under each product type and then execute them. Given the volume of choices available in the market, many investors appoint an investment firm to handle these activities. Research Capability Evaluating investment products involves assessment on its own merit and then in comparison with competing products. For your understanding, here is an example of how Kotak carries out mutual fund research on a set of equity schemes: Tier I – Quantitative Assessment Measure risk /return for at least 24 months for all equity schemes considered. Execution Your decision to invest in a certain scheme comes with the need for execution of such an investment.
Asset Advisory Services - Kotak Wealth Management As an investor you may engage an investment firm to execute your transactions while you act in the advisory role. This transaction approach though rich in choice, is also a time intensive process requiring detailed follow up on the various asset classes and the products. In a transaction model, your portfolio has to be consistently balanced evaluating risk and return for every product. The Asset Advisory Role Wealth management has evolved from a limited role, which is opportunistic and event-driven to that of a more structured diversified and planned science. The main characteristics of the Asset Advisory Services are: Transparent Advice: by allowing a broad portfolio view with no bias regarding any product or manufacturer. Asset Advisory Proposition Investment firms offering Asset Advisory Services propose the following: Planning and Profiling Understanding your goals and what you require enables your advisor to put in place and implement a plan to match your requirements.
Asset Allocation Process - Kotak Wealth Management The asset advisory service functions as a malleable structure, offering you the flexibility to take care of short term opportunities. Through a comprehensive investment process with a strategic plan in place, it makes room for tactical allocations to make the most of short term opportunities. Need for Tactical Allocation The concept of tactical allocation is to counteract the rigidity of a long term strategic asset allocation strategy. Short-term, tactical deviations from the mix to capitalize on unusual or exceptional investment opportunities Market timing consideration in portfolio decisions, allowing you to participate in favourable economic conditions. Leverage Tactical Returns The investment philosophy for tactical asset allocation is based in the belief that over time, changes in your psychology as an investor and dynamism in market forces can lead to possible temporary changes in investment recommendations. Delivery of this Process The Strategic Asset Allocation Practice
Estate Planning Services in India - Kotak Wealth Management When planning your Estate for preservation, management and succession various roles need to be taken on to carry out the necessary activities. Trust Versus Will Trust provides for management of the Estate during person’s lifetime and also provides for distribution and management of wealth post demise. Will is a legal declaration of a person’s intention with respect to his property which he desires to be carried into effect only after his death. Estate Planning Services Following is the range of Estate Planning Services offered: Advisory Advise on the structuring of an Estate Plan for the benefit of future generations and management and administration of the Estate during and post life. Drafting and Execution Facilitating drafting of Wills, Trust Deeds and ancillary documents tailored to specific family needs. Trusteeship Acting as a Corporate Trustee for administration and distribution of the Estate. Executorship Acting as an Executor for administration of the Estate on the death of the Settlor.
Family Office Services in india - Kotak Wealth Management Created to meet the needs of Ultra High Net-worth Investors, Family Offices function as private wealth management advisory outfits. A Family Office is a comprehensive solution to manage your family’s financial and wealth affairs. Family Office proposition goes much beyond managing wealth. It provides solution for building, preserving and transferring family wealth and legacy. Key highlights of the Family Office are: Your ‘Personal CFO’ with 360 º visibility Work with all your existing bankers and service providers from ‘your side of the table’ Open architecture philosophy with access to best in class solutions across the market with no bias Organizational accountability & continuity Independent advice aligned to your interests with benefits of larger institution when required Complete fee transparency Institutional ownership of relationship with sufficient checks and balances
Range of Services For ultra high net-worth individuals - Kotak Wealth Management The scope of the Family Office is significantly broader than a pure investment advisory. In addition, it facilitates the provision of other value added services to provide a complete solution. This ensures that you, as a Family Office client have a single point contact for taking care of wealth, family and administrative needs. Diverse range of services for Ultra High Net-worth Individuals (UHNI) families: Wealth Advisory and Investment ServicesBanking and CreditEstate Planning Services*Consolidated ReportingReferral for Philanthropy ServicesProfessional, Taxation and Administrative ServicesConcierge Services Kotak offers Family Office Services. *Provided by Kotak Mahindra Trusteeship Services Ltd
Understanding Family Office - Kotak Wealth Management Over the years, Family Office Services have adapted to cater to the needs of wealthy families in search of expert financial planning advice. Here are some commonly asked questions to help you understand the Family Office better: What is a Family Office? Family Office is a private wealth management advisory service offered to ultra-high net worth investors to centralize focus and control over family finances, legal, tax and administration issues. It is an outsourced solution to manage the financial and investment affairs of affluent individuals or families. It works to provide the best solution for building, preserving and transferring family wealth. How did the concept of Family Office evolve? The early Family Offices can be traced to Europe, while the first North American Family Office was created in the early 19th century by wealthy merchants along the eastern coast of the United States. Why use a Family Office? What are the benefits of a Family Office? Understand Family Context