Q] Given your extensive experience in broking and distribution, what would you think will be your timeline for generating revenue in this new advisory venture, especially considering your focus on delivering value rather than prioritising immediate profits?
When a new entity starts offering advisory services, they need to establish the entire ecosystem—from research to technology and a digital infrastructure to support it. However, we’ve been in the broking and distribution business for 25 years, and we already have the necessary product expertise, research capabilities, and technology systems in place. This means we’re not incurring significant additional costs, with only a minimal increase in expenditure. Our focus is on investing in the right proposition for our clients and bringing in a highly skilled team, carefully selected from other companies with relevant experience. We’re not entering this venture purely for profit; we see a genuine need to add value for a specific group of investors. Our goal is to deliver exceptional service, and we believe that when we do that, we’ll naturally command the fees we deserve without needing to prioritise breaking even or making money immediately.
Q] How do you ensure that the investment advice provided is personalised and aligned with clients’ individual financial goals?
In today’s complex investment landscape, investors, particularly those with larger sums of wealth and portfolios, are seeking tailored, peaceful solutions. This is where we believe HDFC TRU will bring significant value through its advisory services, offering honesty, transparency, and the expertise that HDFC Securities has built over 24 years in managing equities, debt, and various asset classes. Each service is customised based on a thorough understanding of the customer’s risk appetite, return expectations, and overall investment objectives. This involves a comprehensive assessment process, where we engage in detailed discussions with investors to deliver tailored solutions across all aspects.
Q] Could you tell us a little bit about your user acquisition strategy?
This is not a mass product. This is a highly specialised offering aimed at a niche market of approximately 800,000 high-net-worth individuals with assets exceeding $1 million. So, we are focusing only on the high value clients. We have valuable databases and established relationships within HDFC Securities and HDFC Bank that help us leverage referrals. Additionally, we’ve conducted research on family offices, corporate treasuries, and startup founders, which informs our acquisition strategy in these areas.
Q] What role does technology play in ensuring transparency and expertise on the HDFC Tru platform?
In the advisory sector, investors often diversify their exposure across multiple asset classes. To facilitate this, it’s crucial to have a system that provides a comprehensive, real-time view of their entire investment portfolio. We’ve developed a wealth management software that offers clients instant access to their investments, including real-time market valuations and allocations. This transparency allows them to share details easily with family or associates if they choose. Furthermore, through our partnerships, we can offer a range of value-added services, such as succession planning, estate planning, and will writing, all designed to enhance the investor experience.
Q] Where do you see this platform in the next five years?
Advisory services in India are at a very nascent stage; it is a new concept with very few players currently offering it, and a limited number of investors accessing these services. My view is that, with the increasing affluence in India and the growing number of high-net-worth individuals (HNIs), there is immense potential for us to penetrate the market further and add value to the business.
India is performing exceptionally well, growing at around 7% in terms of GDP. The affluent class is also accumulating significant wealth, in fact, outperforming the broader Indian economy. Therefore, I see a huge opportunity here, and I do not anticipate any stagnation over the next 20 years.
Q] What future innovations or enhancements can we expect on the HDFC Tru platform to keep pace with changing investor needs?
The most important thing is to understand and provide a peaceful solution for investors. With the world becoming increasingly interconnected, there are numerous opportunities in global investing, as well as ways to preserve and grow wealth. Additionally, proper estate planning plays a vital role in ensuring that wealth is effectively passed on to the next generation. Therefore, we aim to offer a holistic solution that encompasses all these aspects.
