GVSRwealth: Investment Experts for HNI Aspirants!

 

The case for Direct Equity: GVSRwealth (posted originally in Linked In)

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The case for Direct Equity: GVSRwealth

At a minimum, investors have opportunities look for inflation beating returns from their investments in riskier asset classes such as Stock Markets.

Usually, FDs ( net of tax) tend to give returns that are nearer to the inflation. There are hardly any real returns out of such investments for people in highest tax bracket. FDs are a vehicle for people who are seeking near risk free returns. It is not a vehicle for accelerated earnings growth that HNI Aspirants often look for.

In the context of India , a 5 percent risk premium on a long-term average inflation of about 7 percent can raise the required rate of return expectations of investors to about 12 percent from Stocks. Currently, Index MFs are able to fill this gap, largely, in India. It is also historically recorded that about 80% of the actively managed MF schemes do not provide index beating returns (net of fund house / MF Scheme expenses) on longer time frames. It is important to note that equity MFs are also a form of indirect equity for investors-considering that Fund Managers managing these Equity oriented schemes invest directly in stocks.

Many HNIs , who have aspirations to accelerate their returns from Capital markets - further and beyond the market / index level returns, are constantly looking for investment vehicles / products that have the potential to give index beating returns , say, atleast by another 5 percent points. Currently, PMS ( Portfolio Management Services Firms) focus on HNIs ( High Net Worth Individuals) , with minimum investment being INR 50 Lakhs, as of now. There is a chance that such minimums can go upto 1 Cr in future. Further , the discomfiting feature of any PMS is that you have to handover your money and give a Power of Attorney to the PMS service provider who can debit your bank account without further approvals from you to the extent of their fixed fee and performance fee- typically on high water mark principle etc.

This leaves a segment, which I call as HNI aspirants , who also have aspirational wealth goals which require their CAGR-ROI from their investments to go above and beyond the index returns on longer time frames. Thanks to SEBI and digital revolution that India is experiencing currently , a couple of online investment services platforms of repute have come up recently - such as Smallcase and Wealthdesk, wherein, many SEBI registered Research Analysts and Investment Advisors provide investment services in completely online mode. In this arrangement , you have the added comfort of not having the need to handover your money to the Research Analyst or an Investment Advisor who publish their online investment products for a small subscription fee.

The advantage of these platforms is that the RAs / RIAs specify bare minimum investment amounts as well as recommended investment amounts which are in line with Aspiration middle class and HNI Aspirants. Know more about us at: 

https://gvsrwealth.smallcase.com/

GVSRwealth is the tradename used by Mr. Venkata Subrahmanyam Gutala (GVS) who is registered with SEBI as the Research Analyst. Investments in securities markets are subject to market risks. Please read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.