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New-age wealth management: Personalised, tech-enabled and agile


“The only constant in life is change” – Heraclitus.


If there is anything that the current environment has taught us, it is that change is inevitable and often, unexpected. At the same time, it has underscored the importance of being agile and future ready. For the wealth management industry, winds of change had already started blowing, taking the industry towards a more technology-enabled future. In the last few years, technology has driven many changes across various sectors. Digitally-powered solutions and digital interactions are changing the way companies work and provide services.


Besides the technological changes, wealth management firms are doing well to keep up with the changing needs and attitudes of investors. The attitudes of investors across different age groups and their expectations from wealth managers is currently undergoing a transformation. Add to that, the complexity of the economic environment and the need to stay tethered to the traditional values of trust and transparency.


Let’s dwell into some of the paradigm shifts taking place in the wealth management industry:


New generation of investors


A huge amount of global wealth is currently changing hands from the previous generation to the new generation. Shaped by dissimilar experiences and brought up in a different environment, the new generation of investors has markedly different expectations from their wealth managers when compared to the previous generations. They want to be respected and treated as unique individuals. They seek personalised recommendations based on their financial goals and liking. This new breed of investors doesn’t shy away from doing their research before investing in any investment option. They also discuss investment options with their friends and colleagues and are open to their suggestions. While in the past, advisors and wealth managers interacted with their clients through face-to-face meeting and telephonic conversations, the new generation of investors expects their money managers to be available across different channels at any point in time, in demand.


Goal-based planning


The industry has been witnessing a slow migration from product-based to solution-based offerings. Clients today demand holistic and end-to-end solutions that meet their various wealth related needs. These could range from fund raising for an entrepreneurial venture to creating a sufficient corpus for the child’s foreign education. Instead of providing products or solutions in silos which only meet the one-time needs of the client, wealth managers are undertaking the customer journey along with the clients. This requires assessing the client’s risk profile, understanding her multiple life goals, determining the return requirements, creating an asset allocation strategy that meets these requirements, and continuous monitoring to adjust for changes in the client’s circumstances or the external environment.


Embracing digital


Digitally-powered solutions are slowly becoming the norm, rather than a competitive advantage. Covid-19 has accelerated the adoption across industries. As individuals increase their digital engagements, the wealth management industry, which was traditionally more of a human touch business has now turned phygital. Technology has the power to transform businesses, elevate interactions and user experience, and create customised solutions that generate high value and client satisfaction. Wealth management companies are now looking at artificial intelligence (AI) and machine learning (ML) powered tools to collect and harness data. This helps wealth managers create personalised solutions for their clients. Digital tools are now being extensively used to enhance reporting, analysis, and client interactions. Technology, if harnessed well, will go a long way in further enhancing the human interactions.


Retirement & Legacy Planning


Wealth managers serve clients across the wealth spectrum and cater to their multiple needs. One of the biggest concerns that the wealthiest clients have is whether they will outlive their assets. This is now becoming increasingly complex due to longer life expectancies. the increasing cost of medical care, and concerns over the value of their assets. At the same time, many wealthy individuals wish to have a proper plan in place to pass on their wealth to the next generation. To effectively meet these requirements, wealth managers are engaging with clients early on, to balance their short and long-term financial goals.


The wealth management industry is witnessing several changes. These changes will inevitably make it easier for investors across different age groups to invest and fulfil their financial goals. Yet, some things remain the same—like staying agile, adapting to new imperatives and ensuring trust, transparency and client-centricity are not compromised.


Source: Forbes India

How do SIP’s work in a Smallcase?

Risk appetite and risk tolerance are one of the most important criteria in selecting investments. Let’s look at how to match them in Smallcases.


How do SIPs work in a Smallcase?


Well, the answer would depend on who you ask. If you ask an expert stock investor who understands the technicalities of the stock market, can do extensive research, and then pick the right stocks, the answer would be the former. However, ask other investors who don’t have such hands-on knowledge of the stock market and the latter would be the most preferred choice.


Most investors fall in the second category, and so, for them, Smallcases prove to be ideal investment avenues. A Smallcase is a readymade portfolio of stocks and ETFs that follows a specific theme or investment idea. Most are handcrafted carefully by astute fund managers and Sebi-registered investment advisors. For example, the Deeva Ventures Flagship is a Smallcase that consists of 15-20 handpicked stocks from the Nifty 500 index. Similarly, Deeva Ventures’s Multiplier Smallcase consists of small and mid-cap stocks that have the potential to deliver exponential returns.


Smallcases, thus, help you invest in a well-researched portfolio of stocks to earn better risk-adjusted returns. They are also constantly monitored by experienced analysts so that the portfolio can be recalibrated with changing market dynamics. This ensures that your investment stays relevant in all market conditions.


Investing in Smallcase

When it comes to investing in a Smallcase, there may be a minimum investment amount that depends on the Smallcase that you pick. This further changes with the market as the cost of one share of each stock or ETF that comprise the Smallcase changes. For instance, Deeva Ventures’s Multiplier Smallcase required a minimum investment of Rs.46,987, while the Flagship Smallcase required Rs.24,676 when we compiled this article. Check out their prices now.


There is no maximum limit to investment or the number of smallcases you may hold. You can invest in a Smallcase in a lump sum or in regular installments through SIPs (Systematic Investment Plans).


However, entry into SIP-based investments in Smallcases is slightly differently structured from SIP investment in mutual funds. Both, nonetheless, allow you to invest affordably and create a disciplined investing habit that may serve you well in the long term.


How SIP investing works in Smallcase?


Before we get into how SIPs function in Smallcases, note that Smallcases are a basket of stocks and ETFs with dynamic price movements. And unlike mutual funds that permit one to buy partial shares, investors need to purchase full units of the stocks. That is, if a Smallcase portfolio has stocks of 10 companies with 10 units of shares each (equal-weighted), the investor will need to purchase all the 10 stocks at the price of the day, even though he need not purchase them in the same weightage (no compulsion to buy 100 shares). The minimum investment amount is thus dynamic in nature and updated in real-time, in line with the daily price movement of the underlying assets.


So, the first investment in a Smallcase needs to compulsorily be a lump sum investment that adheres to the minimum investment requirement for most Smallcases. You may thereafter activate a SIP in it for no additional charges. This means that a SIP in Smallcase is possible only in Smallcases that you have purchased and subscribed to.


The first investment amount, called the Minimum First Investment Amount, is the least amount required to invest in all the stocks of the selected smallcase as per the weights.


Once added to your portfolio, you can then proceed to establish a SIP in it. Note here that your SIP amount will be different from your Minimum First Investment Amount.


According to Smallcase, you can start a SIP for an amount less than the minimum investment amount for the smallcase, if the minimum investment amount is more than Rs 10,000.


Of course, the SIP amount is less than or equal to the minimum investment amount in Smallcases where the minimum investment amount is less than Rs 10,000.


The SIP frequency, on the other hand, depends on the Smallcase that you choose. Almost all Smallcases allow monthly SIPs, while some schemes, like Deeva Ventures’s Smallcases also allow weekly, quarterly and annual SIPs for easy investments.


Another point of difference with mutual fund SIPs is that when you set up a SIP in Smallcases, you essentially set up only an investment reminder. Your investment is not really automated. You simply get a reminder to invest in the SIP instalment. That said, Smallcase facilitates a 2-click process to invest in further SIPs.


Why are SIPs beneficial?


SIPs are a beneficial way of investing in Smallcases. Here are the reasons why –


• They are affordable

The primary reason that makes SIPs favourable is their affordability. With SIPs you can invest in the desired Smallcase without feeling a pocket pinch or disturbing your budget. It allows you to invest in small and affordable amounts, regularly, and still create a sizable portfolio of stocks.


• You don’t have to wait for the right time to invest

Investing in the stock market is all about picking the right time to enter so that you can buy low and sell high. Picking the right time is, in effect, a challenging task. You need to monitor the markets closely and speculate on the time when the prices fall so that you can enter.


• Do you have the time and know-how for the same?


With SIPs, you don’t have to time the market. You can invest at predefined intervals without hassling over the right time.


• If you invest with a long-term horizon, compounding grows your corpus

Long-term horizons can do wonders for your investment. You can cash in on the benefit of compounding, which helps multiply the returns that you can earn. With SIPs, as you invest affordably if you give your investment time, you can accumulate a considerable corpus for your financial goals through the power of compounding.


• Get the benefit of rupee-cost averaging

SIPs give you the benefit of rupee cost averaging. In rupee cost averaging, the effective value of periodic investments is neutralised, positively impacting your overall cost of investment. When you invest in SIPs, you invest at different times and at different rates. The aggregate rate, then, gets averaged out. In falling markets, you end up buying more, and in rallying markets, you tend to buy less. These two purchases balance each other out, and the investment becomes more cost-efficient.


• Invest in a disciplined manner

SIPs inculcate a disciplined investment approach. Imagine getting reminded at periodic intervals to invest!


With SIPs, you can regularly invest, without fail, so that your modest investments accumulate to a sizable corpus that helps you fulfill your financial goals.


SIPs, thus, are quite beneficial and help you invest in the desired Smallcase without worrying about its affordability. You can also continue to opt for multiple SIPs in multiple Smallcase portfolios so that you can diversify your investments.


Some things to keep in mind about SIPs

 Deeva Ventures

• While SIPs allow ease of investing in Smallcases, here are a few points that you should keep in mind-



• Starting a SIP in a preferred Smallcase portfolio is quite easy. You can invest online and click on the option of SIP when investing.


• You only get an investment reminder on the SIP due date, and you have to invest manually. Some brokers, however, are automating the SIP investment wherein the amount gets debited from the registered bank account and is invested in the portfolio.


• The minimum SIP amount depends on the Smallcase that you choose. It is not uniform.


• You can stop the SIP at your discretion. There is no lock-in period


The bottom line


Understand what SIP investment is all about in the context of Smallcases. Know how it works and how you can start your very own SIP. Choose a profitable and consistently performing Smallcase and start a SIP to get the maximum benefits that SIP investments can provide. You can check out Deeva Ventures’s Smallcases that have a good portfolio and can help you create a corpus worthy of your financial goals.


Source: Tejimandi

Why Direct Stock Investors Should Invest in smallcases

If there is one thing that can be said about direct stock investors, it is that they are certainly not averse to risks. Someone who invests directly in stocks does so with the understanding that the stock markets are going to be volatile. There will be bad days along with the good days, but as long as the good ones outnumber the bad ones, the investor would consider himself or herself to be successful.


Direct stock investors embrace market volatility and take investment decisions based on these ups and downs. But there are a number of reasons why direct stock investors would also benefit by investing in smallcases.


Portfolio-based investing


Investing in a portfolio of stocks has proven to be more beneficial than investing in 1 or 2 stocks. A portfolio allows you to diversify across market segments and capitalizations. Not only do you benefit from the upside in different stocks, but a portfolio also allows you to stay protected from the downside in a particular stock.


Investing in readymade themes & strategies


Direct stock investors follow the news and purchase stocks of companies that they believe will do well. This can easily be done when investing in individual stocks, but not when an investor is following a theme or an investing strategy. After all, tracking news & updates for more than 10-15 stocks is time-consuming. A smallcase will allow you to invest in ready-made themes & investing strategies that have been created by SEBI licensed professionals. For example, if you want to invest in companies that own brands which India loves, we have the Brand Value smallcase.


Research and analysis by experts


One of the biggest hurdles for stock investors is taking the time and effort out to research stocks. Fundamental analysis of companies is an important step before buying its stocks. This, of course, is not easy to do and can take away a lot of the investor’s resources. But not if you invest in a smallcase. The hard work is done for you by the smallcase team of researchers and analysts. The stocks in every smallcase pass our stringent proprietary filters so that investors don’t have to worry about making the individual choices.


Investing in smallcases comes with many other benefits. They are transparent, customisable and straight-forward.


smallcases come in different types–thematic/sectoral, strategy-based, asset-allocation based, and those based on smart beta. Check them out and begin investing in the ideas you believe in. And if you still haven’t found a smallcase that’s right for you, remember that you can always create one yourself very easily! Add the stocks that you have in mind, see a simple-backtest before investing, and then conveniently buy/sell all stocks in 1-click – learn more about the create a smallcase feature here.

Source: SmallCase

Dos and Don’ts of investing in smallcases?

Tips to stay on track with your smallcase investments


👍 Do’s


Start SIP: SIPs are great for long-term goals. You can start a SIP while investing in a smallcase, or anytime later after investing


Track News & Dividends: Every smallcase comes with a performance summary of Index Value, Dividends, News and more


Watchlist: If you want to track and monitor the smallcase before investing, you can add it to your Watchlist


Rebalance Regularly: Rebalance updates keep your portfolio aligned with the original idea


Check Portfolio Health: Portfolio Health Helps you achieve maximum efficiency in your wealth creation journey



👎 Don’ts


Don’t skip SIP or Rebalance updates: Make sure that you always complete your SIP and apply the rebalance updates so that your financial goals remain on track


Don’t exit too soon: smallcases are built for long term investing, hence it is ideal to give your portfolios time to perform and grow your wealth


Don’t sell stocks directly on your broker platform: For all transactions relating to smallcases transact directly on smallcase platform


Don’t invest and forget: Even though smallcases are long-term investments, they should be evaluated periodically to make sure they are on track



Is it a good time to invest in Indian equity

The risk-reward of the Indian market has improved and the market is looking more reasonably valued today, than six-nine months back, according to Prashant Jain, executive director and chief investment officer, HDFC AMC. He believes that the near-term outlook for the Indian economy looks steady, and over time, the country’s economic growth has the potential to accelerate meaningfully. The stock market veteran made these observations at a webinar on Mid-Year Review of Indian Economy & Markets.



According to him, while one may see some moderation in consumption growth, exports and capex recovery should help ensure good growth in the near term. He expects India to be the fastest growing economy in this decade and to emerge as the fifth largest economy before the end of the decade.


On interest rates, he feels that what we are experiencing is normalization of abnormally low interest rates prevalent over the last few years. The sharp pace at which the US yields have moved up has surprised everyone. But, he feels, in India, because interest rates did not fall as much as in the West, the normalisation too, will not be that sharp. So, this should have less impact.


On the topic on how rising inflation will impact the profits of companies, he highlighted how higher inflation may be good for some of the key segments of the Nifty. Roughly one-third of the profits pool of the Nifty comes from banks. Today, two-thirds of bank loan books comprise floating rate loans that will get re-priced once rates start rising. In fact, today, the share of floating rate loans is the highest in Indian banks’ balance sheet than ever before and therefore, the loans will reprice faster than deposits. So, higher inflation, which in turn is leading to higher interest rates will aid the margins profitability of banks, according to Jain. Also, higher inflation is leading to faster credit growth. Added to this, bank NPAs are also extremely low.


Further deconstructing the Nifty, Jain pointed that another one-third to one-fourth of the Nifty profits come from commodity-linked companies such as oil and gas, refining, coal and metals. Such companies are benefiting from high commodity prices and also high refining margins. High commodity prices and high inflation go hand in hand and so this segment too is not going to be adversely impacted by inflation, according to him. Apart from that, 15% of the Nifty is in software services and another 5% in pharmaceuticals. This 20% of the market will benefit from rupee depreciation which is likely because of the pressure on the balance of payments given the elevated oil prices and also the strong FII outflows. So, the outlook on this segment too looks quite reasonable.


Valuation-wise, Jain highlighted that bank stock multiples are now below long-term averages as this sector bore the biggest brunt of selling by FIIs. He also finds some value in IT stocks after correction in their P/E multiples. On capital goods companies, he feels that while the stock valuations look expensive, their outlook is quite robust. So, the sector may sustain the high multiples because when the cycle of capital spending turns, profit growth could be quite high.


He suggests that over the nest 3-6 months, one must invest in phases in equities and take advantage of sharp dips, if any. He, however, adds that one must invest only that money in the market which can be held for a longer period. Today, long-term investors have a good opportunity to buy Indian equity at reasonable valuation as most uncertainties seem to be priced in.


Source: Livemint

FD interest rates on the rise: What should be your investment strategy now?

Fixed deposit (FD) interest rates have significantly dropped during the last three years. Currently, the repo rate is at a historic low of 4%, which has not changed since May 2020. This trend has led investors to search for alternative ways to generate income.


Thankfully, there have been small hikes recently in the FD rates of some financial institutions, including the national banks. This hints at the bottoming out of rates and investors need to prepare their strategy to make the most out of this.


So, what are the different techniques you may use to invest for higher returns via bank FDs? Let’s look at some options.


Short or Medium Terms FDs


When the interest rate cycle turns back after bottoming out, it has been noted that short- and medium-term FD interest rates respond quicker to rate change than long-term FDs. Investing in FDs with short or medium-term maturity helps you switch to a higher FD rate. When the rates are expected to go up, you should avoid committing to long-term FDs because you may miss out on the benefit of the rising interest rate. The interest rate may not increase immediately, but it may gradually inch upward. So short-term FDs can keep your FD investments closer to the prevailing interest rate offered by banks, according to Bankbazaar.


Floating Rate FDs


A few banks are offering floating rate FDs to their customers. The interest rate on floating rate FDs may not look attractive compared to the current fixed rate FDs; however, if the rate increases, the floating rate FDs can easily be a winner. Floating rate FDs can be beneficial if you don’t want to get into the hassle of continuously switching old short-term FDs to higher rate FDs.


Diversify New FD Investments Into Bank and Company FDs


When interest rates go up, it’s not only banks that increase their FD rates, but the rates of company FDs are also increased. Diversifying your investment into banks and company FDs can be a good option for better average rates. By diversifying FD investment into banks and company FDs, you can ensure higher returns on your investment. Company FDs offer a higher interest rate, but you need to do your diligence before investing your money.


Use the FD laddering option


FD laddering is an excellent option to ensure a high return on FDs amid the chances of a rise in the interest rate. You can make your own FD laddering strategy by spreading your lumpsum fund into different FDs with multiple maturities.


For example, if you want to invest Rs 5 lakh, you can break it into 5 FDs with a maturity period of 1 year, 2 years, and so on up to 5 years. On maturity, you can use the amount if you have a requirement, or you can continue with the existing laddering by reinvesting the matured corpus into a new FD for 5 years. You may choose different banks, companies and the FD amount while creating an FD laddering strategy.


When the interest rate is expected to increase gradually, you can shift your corpus to an FD that offers a higher interest rate on each maturity. So, you can ensure a higher return on investment in the long term. If you create an FD laddering by investing money in different banks’ deposit schemes, it can also help you get the insurance benefit of up to Rs 5 lakh in each bank.


You must not wait for a rate hike to invest in FDs because it’s not definite when the rate will go up, and there is a chance that it may happen multiple times. So, after each hike, you will get enticed for another rate hike. Until you invest, you’ll lose the return on your corpus. Use these techniques to get the maximum benefit out of your FD investment.


Source: financialexpress

What is a Smallcase? What Distinguishes them from Mutual Funds?

The benefits of investing in a diversified portfolio are well known to the average investor. Owning a variety of stocks based on sectors and market caps (small-cap, large-cap and mid-cap) is the recommended approach to investing in securities. This protects an investor by distributing their risk across a range of stocks such that if a stock in one particular sector fails, the loss does not affect the investor’s entire portfolio.


A smallcase is a new and exciting product for retail investors that offers portfolio diversification as an in-built feature.


What are smallcases?


Smallcases are baskets or portfolios of stocks or exchange traded funds (ETFs) that are professionally tailored to reflect an investment plan, theme or idea. Smallcases are offered by Smallcase Technologies, an investment platform based in Bengaluru, India, where entities such as brokers, investment advisors and asset management companies undertake extensive research to create diversified portfolios for investors. According to Vasant Kamath, the CEO and co-founder of Smallcase, “The idea is to get retail investors to take a portfolio-based approach while investing in stocks, versus thinking about individual stocks.”


How do smallcases work?


Opening a brokerage account is mandatory in order to invest in smallcases (Smallcase Technologies has partnered with seasoned broking entities like Edelweiss, Zerodha, and HDFC Securities). Since smallcase investment entails owning the stocks of various companies, it also requires a trading and a Demat account. Once the transaction is complete, money is debited from the investor’s trading account, and in its place, stocks are credited to their Demat account. There is no specified lock-in period for these stocks, and they can be held or sold as needed.


Smallcase vs Mutual Fund


Smallcase portfolios often get compared with mutual funds. While the two are similar in that they both minimize risk through diversification, there are multiple benefits to going the smallcase route.


1. No Lock-in period



As mentioned earlier in the article, there are no lock-in periods for smallcases. Whereas some mutual funds preclude investors from exiting their investments for a certain period of time, this is not the case with smallcases. Investors can exit at a time of their choosing.


2. Cost of investment


Mutual funds investment are known to charge up to 1.5-2 per cent annual fees on the amount invested as expense ratio. Smallcases only charge a nominal amount (0.2%) at the time of performing the transaction. Thus, smallcase investments carry no hidden costs and work out to be a significantly cheaper option than mutual funds.


3. Transparency and control


Mutual funds disclose the stocks in the portfolio at a fixed time. On the other hand, smallcase investors can see and control their investments immediately after investing. They do not have to rely on a fund manager to make investment decisions for them, as is the case with mutual funds.


4. Ownership of shares, not units


Smallcase investments ensure that investors have ownership rights in the stocks comprising their portfolio. In the case of mutual funds, investors do not own a stake in any of the companies; they simply hold units of the portfolio.




One can now easily invest in smallcase investments or in mutual funds at the click of a button. The process is simple and help is available at every step.


Source: Motilaloswal