The Hindu Business Line : Religare to expand services to HNIs

To scale up operations
Religare has decided to expand its suite of wealth management products.
It is now keen to work out a fund in keeping with the booming market for real estate.

Kolkata , April 27

Ranbaxy-promoted financial services outfit Religare plans to rapidly scale up operations. It intends to expand its wealth management business by creating real estate and art funds as well as offering new varieties of portfolio management schemes.

Religare, the new name for the erstwhile Fortis, has decided to expand its suite of wealth management products that are currently aimed at high net worth individuals.

On the cards are services such as insurance broking, for which the Insurance Regulatory and Development Authority's approval has been sought. Religare, said Mr Amit Sarup, Head, Wealth Management, has been actively adding to the existing infrastructure by setting up offices and recruiting personnel. It plans to cater to a larger number of HNIs, each of whom capable of maintaining a relationship with amounts of at least Rs 25 lakh.

The company is now keen to work out a fund in keeping with the booming market for real estate. Also on the drawing board is a fund to invest in art, yet another area that seems to be burgeoning in the country.

Religare also hopes to shortly close a private equity fund with $250 million. Already, commitments of about $200 million or so are in place. The private equity vehicle, incidentally, is in association with the US-based Evercore Partners, it is pointed out. The proposed services, Mr Sarup felt, will help the group, which already offers stock and commodity broking, occupy a larger presence in a rapidlyexpanding market for financial services. "More and more HNIs are expected to take to professional wealth managers. This is a segment we wish to tap more effectively," he said.

New PMS version

Religare has started offering a new PMS marked by profit sharing based on outperformance. The service, branded Elephant (in line with its existing offerings - Tortoise and Panther - each with quite different objectives), limits the investment universe to BSE 100 stocks.

The PMS, Mr Sarup indicated, works on clearly defined parameters. In case the BSE 100, the benchmark index in this case, increases from 100 to, say, 150 and a client's portfolio goes up similarly, there is no outperformance.

However, in a scenario where the portfolio vaults to 170, the outperformance is obvious. The relevant profit-sharing principle can then be applied, he explained.

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