The Hindu Business Line : `MNIs arrive in big way'

IL&FS Investsmart Ltd is a financial services provider that is trying to secure a larger presence in the retail market. The company, which traces its roots to Infrastructure Leasing and Financial Services, particularly targets medium networth individuals (MNIs), people who have substantial resources at their disposal and are scouting for reliable money managers. "We work on the basis of clear mandates and offer clients more than mere asset allocation models", said Mr Hemang Raja, MD.

Excerpts

How big is the MNI market? Is it promising enough?

It is quite evident that MNIs have arrived in a big way in this country. They are a category of people whose numbers are swelling by the day. There are Indians who are earning quite well, their prosperity visible from their spending and investing habits.

One is not talking simply about the big cars that are being driven or the housing complexes that have come up.

Just look around for tell-tale signs of wealth around you and you will come across many instances.

Many of the MNIs that we are trying to identify as potential clients are not fully conversant with the rules of wealth creation.

However, they do realise that some of the more conventional forms of investing are losing their edge.

In an era of falling interest rates and growing uncertainty in the markets, they need to deploy their money effectively.

Companies such as yours seem to be doing the same things. Are you any different from your peers?

Yes, we all work on a simple premise: An investor needs the financial solution that is best suited to him or her.

The needs of a client, any client for that matter, are unique. And, as solution providers, we have to appreciate the uniqueness. Having said that, let me point out that Investsmart has managed to approach the market systematically. We have devised plans for people in various age groups and at various stages of life.

A plan aimed at beginners will not apply to those who have opted for VRS.

As responsible solutions providers, we guide people in various ways. A few basic principles are underlined.

There is, for instance, the need to start early in life, which has to be backed by a regular investment regime.

Designing a good savings strategy is important. Investors should be fully familiar with the various classes of assets that they might consider for themselves.

Investsmart also draws strength from certain support platforms, including online services, depository facilities and research.

We are now trying to promote the idea of discretionary disportfolio management.

What are your priorities as a distributor of savings & investment products?

Let me just dwell on just one of our major responsibilities... giving clients the right advice. When I talk about `right advice', I do not merely refer to the ones that lead them to invest.

Advising people about risk is also a critical aspect of the whole business.

In today's dangerous world, investors have to manage risk in the best way possible.

Execution and monitoring are also key issues, which have to be addressed in the best interests of clients.

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