Anand Rathi Wealth Ltd is a prominent player in the financial services sector, boasting a rich legacy spanning over two decades. Founded on principles of integrity and innovation, the company has established itself as a trusted name in wealth management and investment banking.
With over 20 years of experience , Anand Rathi Wealth Ltd has earned a reputation for reliability. The company offers a comprehensive suite of financial services, including wealth management, investment banking, and advisory services.
Business of Anand Rathi Wealth
They are a leading non-bank wealth solutions firm in India, being ranked amongst the top three non-bank mutual fund distributors in the country. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.
Business Vertical
Private Wealth Segment
This is the main vertical of the business. In this segment, the company caters to the HNI and UHNI (5 to 50 Crs).
As of FY24 this Private wealth vertical
- AUM stood at Rs. 57,807 Crores.
- It caters to 9,911 active client families.
- Serviced by a team of 332 Relationship Managers.
**As of FY24, 60% of their clients have been associated with them for over 3 years , representing 79% of total PW AUM, which shows ARWL’s strength in vintage of both clients and their AUM.
Digital Wealth Segment
This segment is a fin-tech extension of their proposition , to address the large mass affluent segment of the market with wealth solutions delivered through a ‘phygital channel’.
Customer Segment : Mass Affluent having existing financial assets: Rs. 10 lakhs – Rs. 5 crores
They have a unique approach to wealth solutions -
- They deliver service through a ‘phygital channel’ i.e., a combination of human distributor (physical) empowered with technology (digital)
- They seek to build a scalable and profitable model by using this blend of technology capabilities and human interface.
- Also, attempts to build a partner led distribution through whom a packaged investment solution is delivered.
**As of FY24, It has an AUM of 1545 Crs and 4862 clients.
Omni Financial Advisor
This is the company’s strategic expansion for capturing the wealth management environment, which leverages technology to cater to the retail segment through a B2B2C model.
They also provide a technology platform to the Mutual Fund Distributors (MFDs) and to their clients. This is their target segment.
Why is this an advantage for OFA segment?
- Small MFDs lack infrastructure and technology, so they provide them a Mobile led Tech - Infrastructure.
- MFDs have Poor Client Engagement – Sell & Move on model, which OFA provides them with Client Reporting, Transaction & Engagement as a solution.
- MFDs majorly struggle with Client Acquisition & Client Retention, here OFA provides Pre Sales – Sales – Post Sales enablers.
****** As of FY24, this segment comprises 5,994 mutual fund distributors . This segment handles 20.6 lakh clients.
What is Anand Rathi Wealth company’s MOAT?
They cater to HNI and Ultra-HNI which have a capital more than 50L-5Cr, 5Cr-50Cr and 50Cr+ segments these are people who need professional money management and don’t want the hassle to individually invest or give their wealth to an individual to manage.
Here is where Anand Rathi comes into the picture they appoint Relationship managers who are well qualified CA, MBA, Financial Planners etc. which HNI’s love as they get personal attention and those managers work specially for them.
HNIs and UHNIs don’t mind shelling out 3-5% Portfolio management fees as they are ultra rich as well as its hassle free for them due to professionals managing their portfolio.
This is a huge blow on Smallcase/Mutual funds managers where people invest on the basis of low expense ratio etc.
It’s a task for MF companies to keep it competitive to gain more traction. Hence Anand Rathi has an upper hand.
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