Description
This is a PPT explaining about the Financial Planning Process with perspective from India.
Financial Planning Services in India
Contents
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
The Objective
The scope of The scope of services provided services provided by Financial by Financial Planners in India Planners in India
What the investors want??
THE GAP
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
Individuals/Organizations involved in Financial Planning process were approached with a particular set of questionnaire.(Sample Size: 10) Another set of Questionnaire was circulated amongst Investors.(Sample Size: 25) Analysis of the Feedback..
• Comparing the Services provided versus Services expected.
Suggested measures to reduce the gap.
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
Introduction
Financial Planning is the process of meeting an individual’s Life Goals through the proper management of one’s finances.
Why should I make a financial plan? Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances.
An Ideal FP Process
Establishing & defining clientPlanner relationship
Gathering client data, including goals
Analyzing & evaluating your financial status
Developing & presenting Financial Planning recommendations
Implementing Financial Planning recommendations
Monitoring Financial Planning recommendations
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
The Sample- Financial Planners
Name
Ram K. Valia Kavitha Mennon Neha Parikh Ashish Trivedi Jaishank Amarpal Sethi Miten Jain Vikrant S Choksy Bhavika Mehta
Designation
Financial Planning executive Vice President Financial Planning Executive Relationship Manager Financial Planner Senior Cluster Manager Senior Financial Advisor Franchise Sub-broker Senior Associate (CA)
Company/Firm's Name
Parag Parikh Financial Advisory Services Parag Parikh Financial Advisory Services Parag Parikh Financial Advisory Services India Infoline Ltd. Sykes & Ray Financial Planners ICICI Securities ICICI Securities, Private Wealth Bonanza Portfolio Ltd.
Age
23 32 24 27 25 32 30 32 27
Ganesh Sharma
KPMG Synergy Media Corporate Finance & Accounts Entertainment Ltd.
36
The Introductory Questions
How many clients to serve? Who are your ideal clients? Mode of communication you adapt? How long have you been an advisor? What do you think sets you apart from others?
Ideal Client Profile
50% of the financial planners considered salaried persons as their ideal clients HUF was the least preferred option for ideal client Surveyed financial planners had varied experience – it was a balanced mix of starters & highly experienced planners
What do you think sets you apart No. from others? Experience 3 Knowledge Range of Services Trust Qualifications Technology Strategic Partnerships 7 4 3 1 3 2
Mode of Communication Email
Percentage 0.1
Phone Calls
SMS, Phone Calls, Email SMS, Phone Calls, Email, Letters Grand Total
0.6
0.2 0.1 1
Maximum planners considered Knowledge as their USP Only 1 planner considered qualification to be his major advantage above others Phone calls were the most preferred mode of communication & letters were the least popular
Digging a Little Deeper..
What has motivated you to start a Financial Planning Practice and not just be a seller of Financial Products ? What are the reasons which people generally give for not doing financial planning? What is your approximate AUM?
What is your revenue Model ?
Period of Plan Review?
Revenue model
80% planners had AUM of 101 lakhs & above Revenue model was almost equally distributed among only fee, only commission & both. Most planners charged only fee for their advisory services
What has motivated you to start a Financial Planning Practice and not just be a seller of Total Financial Products .
Period of Plan Review
1
6 1 2
No. of Planners 3 2 4 1
Interested in Financial Planning in general Recognizing that clients require Comprehensive Planning
Want to work more closely with the clients You Wanted to provide more Comprehensive Planning Grand Total
Annually Monthly Quarterly Semi-annually
10
Grand Total
10
Wide scope of advisory as a profession motivated 60 % of planners to enter this field
Only 10% took it as a career to work more closely with clients 40% of the planners reviewed their plans quarterly Least no of planners reviewed the plans semi-annually
Operations & Services
Outsourced Services Risk and Insurance planning (Life Insurance, General Insurance) Tax Preparation and Filling Other Legal Services Trust Services Estate Planning Investment Management None No. 3 2 2 2 4 0 1
The Sample- Investors
Name Age Sex Profession Marital Status
Nirmal Kanaujia
Jagdish Churiwala Anil Kumar Pandey
56
55 54
Male
Male Male
Business
Business Salaried
Married
Married Married
Manoj Chhabra Rajendra Agrawal
54 52
Male Male
Business Business
Married Married
Parvathi Sitaram Deepak Sanghvi Sunil Kathuria Sulochana Singareddy
51 50 48 47
Female Male Male Female
Salaried Business Business Business
Married Married Married Married
The Investor
Predominantly youth with an average age of 25. Investors across various age groups.
The Investor
A healthy mix of Salaried and business professionals A large set of married individuals vis-à-vis unmarried people. The business community was dominated by men as compared to women. However an equal participation of Men and Women in the ‘salaried’ category.
The Investor
About 88 % people who participated proceeded as per well thought out methodology. Normally people preferred to review their decisions on a monthly basis. Most investors ‘perceived’ that they had a reasonable knowledge themselves. Very few people seemed to accept that they have little or no knowledge.
The Investor
About 32 % people who participated had access to Financial Planners. Only about 50 % of the people who did not avail advisory services seemed to track their portfolio growth. In contrast to the above, 75% of people who used advisory services seemed to track their portfolios. Thus, People availing advisory services turned out to be more serious than the others
The Investor
People preferred to review their investments on a monthly basis. Very few people were inclined to track it after a considerable amount of time, say bi-annually or annually. Thus, People availing advisory services preferred a regular review of their investments.
The Investor
Word of mouth/Past performance dominated in the area of people’s preference of their financial planners. Brand-Name also somewhat had an importance in people’s perception.
The Investor
People preferred to keep the Fee component linked to Performance rather than keeping it solely as Fixed charges. Also, about 2/3rd of the investors were aware of a possible portfolio churn practices across various Advisory services.
The Gap & Suggested Measures
• Periodical Review Period to be shortened • “ HUF ” absence as preferred clients is striking, is there a scope for expansion ? • Paradigm shift in the type of services required, New Investor is “ market oriented ” • Lack of knowledge about “ Financial Planners “ • Giving Quarterly/Semi Annual Reports • Absence of a Large Branded Player, reason?
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
Data Collection
Inadequate sample size
Reluctance in sharing details
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
From the Planners Analysis
• Lack of awareness among clients • Undue Client Interference
From the Clients Analysis
• Lack of understanding • Prior bad experience with advisors • Lack of transparency • High price
Thank You
doc_606968456.pptx
This is a PPT explaining about the Financial Planning Process with perspective from India.
Financial Planning Services in India
Contents
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
The Objective
The scope of The scope of services provided services provided by Financial by Financial Planners in India Planners in India
What the investors want??
THE GAP
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
Individuals/Organizations involved in Financial Planning process were approached with a particular set of questionnaire.(Sample Size: 10) Another set of Questionnaire was circulated amongst Investors.(Sample Size: 25) Analysis of the Feedback..
• Comparing the Services provided versus Services expected.
Suggested measures to reduce the gap.
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
Introduction
Financial Planning is the process of meeting an individual’s Life Goals through the proper management of one’s finances.
Why should I make a financial plan? Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances.
An Ideal FP Process
Establishing & defining clientPlanner relationship
Gathering client data, including goals
Analyzing & evaluating your financial status
Developing & presenting Financial Planning recommendations
Implementing Financial Planning recommendations
Monitoring Financial Planning recommendations
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
The Sample- Financial Planners
Name
Ram K. Valia Kavitha Mennon Neha Parikh Ashish Trivedi Jaishank Amarpal Sethi Miten Jain Vikrant S Choksy Bhavika Mehta
Designation
Financial Planning executive Vice President Financial Planning Executive Relationship Manager Financial Planner Senior Cluster Manager Senior Financial Advisor Franchise Sub-broker Senior Associate (CA)
Company/Firm's Name
Parag Parikh Financial Advisory Services Parag Parikh Financial Advisory Services Parag Parikh Financial Advisory Services India Infoline Ltd. Sykes & Ray Financial Planners ICICI Securities ICICI Securities, Private Wealth Bonanza Portfolio Ltd.
Age
23 32 24 27 25 32 30 32 27
Ganesh Sharma
KPMG Synergy Media Corporate Finance & Accounts Entertainment Ltd.
36
The Introductory Questions
How many clients to serve? Who are your ideal clients? Mode of communication you adapt? How long have you been an advisor? What do you think sets you apart from others?
Ideal Client Profile
50% of the financial planners considered salaried persons as their ideal clients HUF was the least preferred option for ideal client Surveyed financial planners had varied experience – it was a balanced mix of starters & highly experienced planners
What do you think sets you apart No. from others? Experience 3 Knowledge Range of Services Trust Qualifications Technology Strategic Partnerships 7 4 3 1 3 2
Mode of Communication Email
Percentage 0.1
Phone Calls
SMS, Phone Calls, Email SMS, Phone Calls, Email, Letters Grand Total
0.6
0.2 0.1 1
Maximum planners considered Knowledge as their USP Only 1 planner considered qualification to be his major advantage above others Phone calls were the most preferred mode of communication & letters were the least popular
Digging a Little Deeper..
What has motivated you to start a Financial Planning Practice and not just be a seller of Financial Products ? What are the reasons which people generally give for not doing financial planning? What is your approximate AUM?
What is your revenue Model ?
Period of Plan Review?
Revenue model
80% planners had AUM of 101 lakhs & above Revenue model was almost equally distributed among only fee, only commission & both. Most planners charged only fee for their advisory services
What has motivated you to start a Financial Planning Practice and not just be a seller of Total Financial Products .
Period of Plan Review
1
6 1 2
No. of Planners 3 2 4 1
Interested in Financial Planning in general Recognizing that clients require Comprehensive Planning
Want to work more closely with the clients You Wanted to provide more Comprehensive Planning Grand Total
Annually Monthly Quarterly Semi-annually
10
Grand Total
10
Wide scope of advisory as a profession motivated 60 % of planners to enter this field
Only 10% took it as a career to work more closely with clients 40% of the planners reviewed their plans quarterly Least no of planners reviewed the plans semi-annually
Operations & Services
Outsourced Services Risk and Insurance planning (Life Insurance, General Insurance) Tax Preparation and Filling Other Legal Services Trust Services Estate Planning Investment Management None No. 3 2 2 2 4 0 1
The Sample- Investors
Name Age Sex Profession Marital Status
Nirmal Kanaujia
Jagdish Churiwala Anil Kumar Pandey
56
55 54
Male
Male Male
Business
Business Salaried
Married
Married Married
Manoj Chhabra Rajendra Agrawal
54 52
Male Male
Business Business
Married Married
Parvathi Sitaram Deepak Sanghvi Sunil Kathuria Sulochana Singareddy
51 50 48 47
Female Male Male Female
Salaried Business Business Business
Married Married Married Married
The Investor
Predominantly youth with an average age of 25. Investors across various age groups.
The Investor
A healthy mix of Salaried and business professionals A large set of married individuals vis-à-vis unmarried people. The business community was dominated by men as compared to women. However an equal participation of Men and Women in the ‘salaried’ category.
The Investor
About 88 % people who participated proceeded as per well thought out methodology. Normally people preferred to review their decisions on a monthly basis. Most investors ‘perceived’ that they had a reasonable knowledge themselves. Very few people seemed to accept that they have little or no knowledge.
The Investor
About 32 % people who participated had access to Financial Planners. Only about 50 % of the people who did not avail advisory services seemed to track their portfolio growth. In contrast to the above, 75% of people who used advisory services seemed to track their portfolios. Thus, People availing advisory services turned out to be more serious than the others
The Investor
People preferred to review their investments on a monthly basis. Very few people were inclined to track it after a considerable amount of time, say bi-annually or annually. Thus, People availing advisory services preferred a regular review of their investments.
The Investor
Word of mouth/Past performance dominated in the area of people’s preference of their financial planners. Brand-Name also somewhat had an importance in people’s perception.
The Investor
People preferred to keep the Fee component linked to Performance rather than keeping it solely as Fixed charges. Also, about 2/3rd of the investors were aware of a possible portfolio churn practices across various Advisory services.
The Gap & Suggested Measures
• Periodical Review Period to be shortened • “ HUF ” absence as preferred clients is striking, is there a scope for expansion ? • Paradigm shift in the type of services required, New Investor is “ market oriented ” • Lack of knowledge about “ Financial Planners “ • Giving Quarterly/Semi Annual Reports • Absence of a Large Branded Player, reason?
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
Data Collection
Inadequate sample size
Reluctance in sharing details
The Objective The Approach- Methodology
Introduction to Financial Planning
The Analysis Challenges Faced
The Learnings
From the Planners Analysis
• Lack of awareness among clients • Undue Client Interference
From the Clients Analysis
• Lack of understanding • Prior bad experience with advisors • Lack of transparency • High price
Thank You
doc_606968456.pptx