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Asset Management Services by Kotak Wealth Management

Asset Management Services by 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. An advisory service will not only understand you as an investor but further tailor investment solutions to suit your needs. 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:

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Investment Schemes for HNI by 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.

Tactical Asset Allocation process by 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. The necessity for tactical allocation arises to enable: 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.

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. Depending on the firm and your level of expertise, you can choose to work in two modes: 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 Specialized Products

Portfolio Management Services - Kotak Wealth Management Your investment plans must be based on various insights. The main source for these insights will be from your risk profile and the understanding of which asset classes meet your return expectations. At this point, it is important to understand that different products play different roles in portfolio construction. If returns are one side of the story, risks are the other. Balancing these is the key to a customized investor portfolio. The risks assumed in investments are dependent on your preferences and the returns calculated on your expectations. Your profile as an investor helps in the selection of combination of the asset classes required to invest keeping in mind your risk capacity and return potential. Asset Allocation by 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. 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.

Estate Planning Services by 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.

Wealth Management Plan & Risks by 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. 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. Your attitude to risk is an extension of your personality and like any other form of self analysis this too requires you to assess yourself with complete honesty to make informed decisions. Risk and Your Needs

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. 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

Wealth Management in India by 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.