1) Why do you call the company ‘ Finance Doctor’-the family doctor of our personal finances?
I am a physician who went into financial management and find tremendous similarity between wealth and health. Both are extremely important for the well being of a person-in one way wealth management is a step higher with its ability to empower future generations too.
In both there are multiple cures available, some good and some not so good. Correspondingly in both there is great importance attached to finding a competent prescriber, a trustworthy doctor who has the ability to put together beneficial, holistic and customized solutions for clients.
‘Finance Doctor’ encompasses what we do and how we interact with our investors.
2) What is Hippocratic oath? We never heard of it in the wealth management industry.
When we become physicians we take Hippocratic oath-a commitment that all our actions will be solely for the benefits of our clients. We practice the same oath as Finance Doctor. In a way, we have pioneered the concept for the wealth management industry and hope that it spreads.
3) Why is it important to have a Finance Doctor?
New York Times bestseller ‘The Millionaire Next Door’ mentions that first generation millionaires rate coming across an effective wealth manager as one of the most important factors in their becoming millionaires.
4) How do you call yourself totally independent, objective and highly ethical wealth managers?
Our revenues are not dependent on transactions and our advice is unequivocally and totally in the interest of investor only. A telling factor is what we enact and implement for our own portfolio, is absolutely the same as what we do for our clients’ portfolios.
5) How do you add value?
Appropriate Asset Allocation- It is based on business cycle and your life cycle stage and is customized and finely attuned to achieving your financial goals. Research shows that asset allocation contributes most to a portfolio return. It’s easy to see why-for example, in the current Indian bull move, it is important to allocate an appropriate weight to Indian equities. If that is done rightly, even a passive index fund will provide healthy returns.
Returns- This is our important ability and we add value first by analyzing important macroeconomic factors and second by selecting best fund schemes and managers. Further elaboration is in our answer to first question on the home page.
Risk reduction- We follow Harry Markowitz’s 1990 Economics Nobel Prize winning theory on portfolio management to produce returns at minimal risk. We provide diversification within the asset class and across asset classes, monitor portfolios continuously and suggest rebalancing whenever necessary.
Taxation- We structure solutions, which are taxation efficient. In India, by carefully selecting instruments and timing of redemptions, it is possible to have zero or almost negligible taxation.
Cost reduction- By carefully analyzing costs of each product, we minimize costs. In India we have excellent products with zero or minimal entry load, zero exit load and zero taxation. At the same time we have products, which have entry loads of as high as 25%. Moreover, there is no correlation between costs and performance. We save for our investors enormous amounts of money through careful sifting and selection of products. We also keep the portfolio churn at a minimal rate since most of those costs are unnecessary and benefit the advisor rather than the investor.
Communication and Service levels- This is elaborated upon in service question on home page Transparency- We maintain a very open dialogue with our investors and are happy to answer whatever doubts, clarifications and queries they might have.
Life coaching- We regard wealth management as an intrinsic life skill and structure holistic solutions with a significant impact. Money if grown, preserved, protected, utilized, shared and passed on in an appropriate manner can heighten the quality of lives. A correct perspective about money can enable people to enjoy it and feel financially secure irrespective of their net worth. For example, passing on money in your lifetime, and afterwards in an appropriate and well thought out manner can empower the next generation as compared to making them entitlement dependent. For us, helping our investors in these aspects is extremely satisfying.
6) How do we initiate? How does the relationship develop?
The starting point could be investing a part of your portfolio based on our advice. It could then progress to where we start discussing appropriate asset allocation based on your personal life factors and business cycle staging. Long-term relationship will steadily get deeper and holistic, as we get to know each other over a period of time.
I urge you to go through the answers to five questions on our home page. I will also encourage you to talk to our existing investors -quotes from a few of them on our website will give you an indication of our ability, ethics and tremendous value we have created for them over the years.