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Case Study #1 : Transforming Chaos into Clarity: A Rs 3 Cr Portfolio Overhaul

Divya & Ved, a couple with more than Rs 3 Cr in investable assets came to us with a portfolio that included over 20 sizeable investments. These holdings, accumulated over 15 years, were held in multiple accounts across many investment organizations. They sought to better organize their portfolio, diversify into alternative and private investments, and establish a clear financial plan for their family.

The Situation

Holdings included individual large number of unresearched stocks, mutual funds, and low yielding fixed deposits
Performance of the portfolio was not being tracked
Large number of investment accounts across multiple investment firms
Significant un-invested cash balance with no short-term needs
Little attention paid to tax-efficiency
No one was providing investment or planning guidance that captured all the moving parts
Family had low personal insurance coverage
No SIP in mutual Funds
Married, with two adult children

Our Approach

Brought all the different investment accounts into a single portfolio
Determined cash-flow requirements to support monthly lifestyle spending needs, facilitated it through systematic withdrawal plan leading to increased tax efficiency
Investment options were explored in private equity, portfolio management services, International mutual funds & ETFs to enhance returns & diversification within the equity asset class
Sovereign gold bonds, corporate fixed deposits & Arbitrage funds were suggested to maximise yield on debt assets to beat inflation
Redeployed funds from underperforming mutual funds to performing mutual funds with long track record with excellent fund managers
Tweaked the asset allocation from being 30% in equities to now 70% in equities due to young age profile & capacity to invest for the long term
Initiated SIP of Rs 1 lac per month which will accrue to Rs 2.32 Cr in 10 years & Rs 5.04 Cr in 15 years while assuming ROI of 12%
Delivered a comprehensive online dashboard that provides visibility of portfolio holdings and performance
Increase medical Insurance coverage to Rs 50 lac for the family to cover any medical exigencies
To cover loss of income due to any eventuality Divya & Ved individually bought an insurance term cover for Rs 5 Cr each

SIGNIFICANT RESULTS

Portfolio is now operating with full transparency and improved diversification
Portfolio performance has substantially improved with better risk adjusted return
Implementation of plan is now enabled with proactive management
Children are integrated into the family’s finances and plan for the future

Case Study #2 : Turning Savings into a Multi-Million Rupee Portfolio

Arun was married with two adult children and worked as a structural engineer. Arun approached us because he had accrued a considerable sum of money in his bank savings account and wanted to explore the possibility of investing the funds in order to boost his potential returns.

INVESTMENT STRATEGY

We then formulated an investment strategy which centred on the client investing in a well-diversified multi-asset portfolio. The multi-asset portfolio consisted of investments such as mutual funds, alternates, unlisted equities, shares, gold & bonds with some funds from different geographical locations such as the USA, Hong Kong and Taiwan. This led to asset class diversification & sub-diversification within an asset class to boost returns & manage risk.
We suggested Arun to increase his life cover from Rs 1 Cr to Rs 5 Cr as his annual Income had increased over the years from Rs 10 lac to Rs 50 lac per annum currently.
Arun increased his medical Insurance plan to Rs 50 lac to be better preprepared for any medical exigencies.
We suggested Arun to initiate a SIP of Rs 50,000 per month which would grow to Rs Rs 2.52 Cr in 15 years & Rs 5 Cr in 20 years while assuming ROI of 12%.

DETAILED REPORT INVESTMENT STRATEGY
We presented our proposal to Arun in a detailed report. In the report we included information on the past performance of the investments we were recommending, the strengths and weakness of our proposed approach, information on the different types of tax wrappers we suggested and, most importantly, a detailed breakdown of all of the costs involved in implementing our proposal. Arun chose to proceed with our advice and having set up his investments we now manage them on an ongoing basis. This means we watch over the performance of the investment funds and switch them when we believe it is necessary to do so. We also rebalance the portfolios in order to keep them in line with his attitude to investment risk.