[Exclusive Interview] This Boutique Financial Advisory Firm Deploys Scientific Methods For Redefining Wealth Creation For Investors

Recently, we interacted with Mr. Soumya Sarkar, Co-Founder, Wealth Redefine – a boutique financial advisory firm. They provide goal based financial planning in various finical instruments like Mutual Funds, PMS, Alternative Investment Products & complex financial products.

Here are the interview highlights:

1. Can you provide an overview of the philosophy and mission behind Wealth Redefine and how it drives the company’s approach to financial planning and wealth management?

The philosophy and mission of Wealth Redefine is to provide clients with comprehensive financial planning that is based on their goals. This approach prioritizes the client’s benefit and path towards achieving their financial goals. Wealth Redefine has chosen to specialize in wealth management planning, particularly through mutual funds, as it believes this investment vehicle offers an efficient way to address various financial goals without incurring excessive expenses. This commitment to goal-based financial planning applies to High Net Worth Individuals (HNIs) and retail clients, ensuring they have access to their funds according to their specific objectives.

2. Could you elaborate on the types of portfolios managed by Wealth Redefine through Mutual Funds and how they align with clients’ wealth management goals?

We handle various types of investment portfolios. When we established our company in 2013-14, our primary focus was on High Net Worth Individuals (HNIs) who required active management of their portfolios. However, as time went on, we also recognized the importance of assisting retail clients. Retail clients are individuals who typically invest through Systematic Investment Plans (SIPs), where they make regular monthly contributions to build a substantial portfolio over a period of 10 to 20 years.

In 2013, we initiated our services catering to HNI portfolios, and in 2016-17, we expanded our offerings to include retail clients.

Client wealth management goals typically encompass various objectives, including funding education or marriage for their children, planning vacations, purchasing a car, and preparing for retirement. Among these goals, retirement planning holds particular significance, as it often takes precedence over other objectives such as buying a car, or a house, funding a wedding, or financing education. Therefore, our approach involves understanding the client’s specific financial goals, risk tolerance, and the desired financial corpus they aim to accumulate by the end of a specified timeframe.

3. How does Wealth Redefine apply a scientific approach to investing, and how does this approach differentiate the company in the financial services industry?

First and foremost, our primary objective is to comprehensively understand the clients’ investment intentions. We seek to determine the purpose behind their desire to invest their funds. This involves identifying their specific financial goals. Once these goals are established, we assess the potential returns that can be generated and whether they are adequate to meet the client’s objectives within the designated time frame.

For instance, if a client aspires to accumulate a specific sum of money over a ten-year period, it is imperative that their investments grow at a rate that aligns with this goal. Striking the right balance is crucial – overly cautious may hinder goal attainment. At the same time, excessive risk-taking could jeopardize their financial security, especially if the market experiences a correction when the funds are needed. Our approach involves quarterly evaluations of these goals and adjusting the investment strategy as necessary.

Our overarching philosophy revolves around a commitment to preserving the clients’ portfolios while striving to maximize returns. However, there are situations in which we may need to adjust expectations, particularly as the client nears their goal. In such cases, we may gradually reduce risk exposure. For example, suppose someone requires funds in ten years. In that case, we might adopt an aggressive approach in the first three years, moderate aggressiveness in the subsequent three years, and become highly conservative in the final three years if it becomes evident that the goal is likely to be achieved. 

It is worth noting that many other wealth management firms do not undertake regular portfolio reviews. In contrast, we conduct periodic assessments of our client’s portfolios. We dedicate ample time and resources to conduct thorough research and evaluate whether the portfolio outperforms the benchmark.

When the portfolio needs to meet the desired benchmarks or the clients’ goals are distant, we take proactive steps to address the situation. This may involve considering adjustments such as increasing investments or reducing risk exposure. These reviews and adjustments are performed on a quarterly basis to ensure that our client’s financial objectives are continuously aligned with their investment approach.

4. How does Wealth Redefine ensure that its team of professionals from diverse backgrounds effectively caters to the unique wealth management needs of both corporate entities and High Net Worth Individuals (HNIs)?

Our approach is rooted in diversity, with team members coming from various backgrounds. We begin with an extensive three to six-month training period designed to assess their suitability for their respective roles and facilitate their development.

Furthermore, we supplement their training with specialized courses, such as those offered by the PGP Academy. These courses equip our team members with the knowledge and skills to pursue their goals and become proficient goal planners effectively. To ensure a smooth transition, we pair them with a senior colleague who accompanies them to client meetings.

This collaborative approach allows the junior team member to observe and learn from the senior’s interactions with clients, gaining insight into effective communication and problem-solving. Over time, these team members gain valuable experience, eventually becoming capable of independently managing client relationships.

In addition to our personalized client management, we maintain a dedicated research team. Quarterly, we provide clients with research reports, offering insights into the performance of various investments. These reports are also shared with our relationship managers, enabling them to make informed decisions regarding fund selection and goal prioritization, ensuring our clients receive comprehensive and tailored financial management services. This integrated approach allows us to manage our client’s financial objectives effectively.

5. Could you provide insights into the comprehensive services offered by Wealth Redefine, particularly focusing on NRI services, retirement planning, financial services, and tax planning?

We offer a range of financial services, including retirement, financial, and tax planning, with a particular emphasis on tax planning due to its current significance. Our primary focus is on mutual funds, as they offer versatile investment options that can be tailored to individual preferences and time horizons.

For instance, if someone intends to invest for a short period, such as 10 days, they can select a mutual fund designed for short-term investments. Conversely, if a person plans to invest for the long term, say, 30 years, there are mutual funds suitable for such extended investment periods. The attractiveness of mutual funds lies in their diverse offerings, minimal constraints like locking periods or exit loads, and favorable tax implications, which have contributed to their widespread popularity.

In most cases, we recommend mutual funds to address our clients’ financial needs and objectives unless specific requirements, such as insurance planning, exist. In such cases, we can guide them on insurance-related matters. However, mutual funds generally serve as our go-to solution for fulfilling our clients’ financial goals. Our approach consistently suggests mutual funds that align with each client’s unique needs and objectives.