Cogent Advisory

It is the well-known fact that diversification reduces the portfolio risk. This article, however does not cover this topic, as it has been widely discussed and deliberated upon. This article presents a case where diversification within a single sector across different scrips actually lead to the phenomenal increase in the portfolio returns. This case becomes all the more important, when we have investors sitting on the ESOPs, whose vesting period is over; and hence so not uncover the actual potential of the of Portfolio Management.

With SEBI, the regulatory body coming up with wealth service guidelines for IFAs, it is evident that only those having larger scale of operations can adapt swiftly to the changing regulations and market conditions. But, large number of IFAs in India are finding it hard to scale up. This commentary outlines the generic reasons as to what stops IFAs to scale up their practices.

RBI, the central bank of India, made critical observations of way in which wealth services were being practised at banks. Also, the clear note was made with respect to the rising cases of misselling at banks. This market commentary covers the draft guidelines issued by RBi and tries to uncover the reason for the same and the way forward for the clients. This has been the first time ever that separate guidelines have come for banks and independent financial advisors or advisory firms in India; and this article covers the wealth services being offered by banks in India.