Portfolio Management Services by the Indian Non-Banking Sector

Introduction:

Individuals belonging to the elite class, may not always have the time to properly assess the various investment options and decide which ones are best for their funds, a sum usually in the millions. Portfolio Management Service (PMS) is offered by many leading non-banking sector firms in India to High Net-Worth Individuals or HNIs.

Business Situation:

Client had been in the market for over some years, their on-boarded clients were not connecting with the company and overall seemed unsatisfied in tracking their portfolio’s growth.

Finding Facts:

• Identify reasons for such dormant reaction from their high net worth clients.
• Unearth ways to communicate with their clients.
• Develop / improve processes of client handling.
• Engage in ways to improve revenue and address all client needs.

Solutions Suggested:

• Helped improve the on-boarding process for clients.
• Identified communication channels based on type of content and its importance.
• Enable in strategizing better client engagement activities.

Outcome:

• Include risk evaluation questions to classify customers based on their risk – return appetite.
• Guidelines to develop a new customer communication process.
• Reduce and remove the barriers faced by customers.

Our Understanding and Suggestions:

• PMS firms instil a certain degree of confidence in their customers for a price, which comes across as a bargain to most elite investors, given the complexity of their requirements.
• The firms must ensure that the investments are done in a personalised fashion as opposed to conventional methods, which is important since the clients’ expectations may warrant a specialised approach.
• When it comes to client retention, focusing on building better relationships and trust goes a long way. Clients also expect regular portfolio monitoring and diversification to achieve the best mix of investments for return maximisation and risk minimisation. This, coupled with a variety of short and long-term investment options, and liquidity, will be more appealing to prospective clients as well.
• It is safe to say that at the rate at which the PMS market has been growing, the future looks bright for the firms offering these services. With the right type of products, the firms can effectively improve client retention and grow their client base, all while banking profits for the clients as well as themselves.