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New Indian Express
38 minutes ago
- Business
- New Indian Express
Only 15% of wealth in India is formally managed: Vikas Satija of Shriram Wealth
Shriram Group, a financial services conglomerate, has launched Shriram Wealth Ltd, in partnership with Sanlam Group, a leading South African financial services provider. Vikas Satija, MD and CEO, of Shriram Wealth, tells Dipak Mondal of New Indian Express the rationale behind Shriram Group entering the already crowded wealth management space. Excerpts: Why did Shriram and Sanlam decide to enter the seemingly "overcrowded" wealth management space in India? The decision stems from the significant growth potential in the Indian market. India's GDP is currently around $4 trillion and is projected to reach $35 trillion by 2047 as part of the "Viksit Bharat" vision. While the organised wealth space in India is currently only $1.2 trillion, it is expected to grow to over $10 trillion in the next two decades. This massive projected growth, coupled with India's 30% savings rate and the fact that only 15% of wealth in India is formally managed (compared to 75% in developed markets), indicates a huge untapped opportunity for organized wealth management. How will the Shriram brand be leveraged, and what are the target markets? The Shriram group's presence in over 4,600 branches across the country and its 51-year legacy of trust are significant advantages. This reach is particularly beneficial in tier-two and tier-three cities, which are growing rapidly and where an established brand image can facilitate easier access. What are the target Assets Under Advice (AUA)? The target for the first five years is INR 50,000 crore in Assets Under Advice (AUA). This includes assets where they advise clients, even if they are not directly managed. To achieve this, the aim is to have around 500 wealth professionals on board within the next five years. How are client segments defined, and which segments are being targeted initially? Client segments are divided into three categories: Mass affluent/emerging affluent with Rs 10 lakh to Rs 2 crore investible surplus. Affluent/HNI (High Net Worth Individual): Rs 2 crore to Rs 25 crore; and Ultra HNI: Above Rs 25 crore Initially, the proposition is being rolled out for clients with Rs 2 crore and above. The plan is to develop technology and build out the offering for the Rs 10 lakh to Rs 2 crore segment in the next 6-9 months, as catering to this mass affluent segment requires more "Do It Yourself" (DIY) journeys and a larger operational footprint. What offerings are available for global investments? As per RBI regulations, individuals can invest up to $250,000 abroad. Clients typically seek global diversification for reasons like funding children's education abroad, diversifying beyond Indian markets, or participating in other growing global economies. The offerings include global funds, portfolio schemes, and direct stocks. Their partner Sanlam has existing schemes, making it easier to provide these options. They act as a referral service for global investments, connecting clients to appropriate advisors abroad (including Sanlam's setup and potential new tie-ups in places like Dubai and Singapore). The Gift City route is another avenue for investing in international funds. Are startup founders, as potential clients, different from traditionally wealthy individuals? Yes, generally, startup founders are creating wealth at a much younger age, which often leads to a higher risk appetite. However, it can also be the opposite, where they take significant business risks and therefore prefer conservative personal investments. A lot of new wealth is being generated by startups, particularly in cities like Bangalore, which has become a startup capital. Are startup founders good at managing their wealth? No, just like any specialized field, managing wealth requires professional expertise. Startup founders are typically good at their specific business or tech domains. It's crucial for them to engage specialized wealth professionals to manage their money, similar to how the organized wealth market operates in developed countries (75% penetration) compared to India (15% penetration). What's your view on the situation with Jane Street, and is there a genuine case to be made about it? It's too early to comment definitively as the matter is still under discussion with regulators (SEBI). However, the general data indicating that 91% of retail investors trading in options and futures have lost money highlights a critical need for more learning and professional guidance in this market segment. Money-making isn't simple, and reliance on speculation is risky. Personally, for retail investors, I believe there's no reason to be in the F&O (Futures & Options) segment. Would F&O be part of the strategy you provide for clients? For large clients who are looking to hedge their portfolios, these tools would be used. However, on an investment-only basis for retail clients, we wouldn't typically recommend F&O.
Economic Times
23-07-2025
- Business
- Economic Times
Festive demand, monsoon could lift markets in H2FY25: Shriram Wealth CEO
Shriram Wealth's Vikas Satija anticipates a market rebound in the second half of FY25, driven by festive demand, a strong monsoon, and positive earnings. He highlights opportunities in rural consumption, FMCG, infrastructure, and pharma, while cautioning against high valuations in defence stocks. Satija also acknowledges SEBI's efforts to protect retail investors amid derivatives losses. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads In this edition of ETMarkets Smart Talk, Vikas Satija, MD & CEO of Shriram Wealth , shares his insights on the current market consolidation phase and what could drive the next leg of believes that festive demand recovery, a favourable monsoon, and positive earnings momentum could act as key catalysts for Indian equities in the second half of also highlights the growing strength in rural consumption , FMCG, infrastructure, and pharma sectors, while cautioning investors about stretched valuations in defence this conversation, he discusses market trends, sectoral opportunities, FII flows , and SEBI's regulatory measures aimed at protecting retail investors. Edited Excerpts –A) Generally, the first quarter remains a cyclically weak quarter for many sectors. Banking activity also remains muted given moderate industrial uptake, employee transfers, market seems to have factored in most of the domestic as well as global developments, hence it is undergoing time correction and looking for new events such as US-India trade deal agreement, healthy festive led consumption recovery, above average monsoon and positive earnings could be new drivers for the market in coming quarters.A) Healthy rural demand and recovery in urban consumption led optimism in FMCG sector could be a theme to watch out for this earnings season. Additionally, agri-related sectors such as fertilizers, crop-protection businesses and tractor OEMs could be the ones to watch out.A) In the last 5 years, post the Covid led correction, the Nifty 50 TR and the broader Nifty 500 TR have yielded investors 21.3% and 24% returns respectively. Multiple sectors and companies are trading at premiums to respective long-term are several external factors such as demand challenges in domestic as well as offshore markets, dumping of goods by China, geopolitical uncertainty led supply chain and logistical issues which can adversely impact some should look for selective ideas from a medium-term investment horizon and any correction can be utilized by investors to further add to their portfolios.A) The adoption of mutual fund investments in India has seen an accelerated adoption, especially in B30 (beyond top 30) cities, supported by financialisation of savings, growing awareness through investor education, rising digital penetration, and the growing reach of financial service share of new SIP registrations from B30 cities has increased to 56% in FY25.A) Though FII flows may not be fully back, they have improved in the last three months ($1.3bn, $1.7bn, $2.4bn respectively in Apr-25, May-25 & Jun-25).Despite the recent rally which has taken the index to a premium (~5%) over its long-term average in terms of P/E valuation, the Nifty 50's single digit returns over the past six months remains tepid relative to some of other emerging market's double-digit factors such as key Govt. initiatives, frontloading of RBI rate cut cycle, under-control inflation, pick-up in Govt. capex spendings and aspirations to become the third largest economy, all cumulatively are likely to support improvement in macro parameters to attract strong FII flows in the quarters ahead.A) Outlook for the FMCG sector, particularly rural-focused consumption looks positive on the back of favourable monsoon, easing inflation, healthy rural recovery, expectation of higher disposable income owing to tax relief and rising premiumization the Pharma & Healthcare sector, CDMO (Contract Development & Manufacturing) presents a long-term expectations of a ramp-up in Govt. capex, infrastructure and utilities sectors (eg. Power, Railway and Defence) could see strong order flows in 2HFY26.A) In the backdrop of geopolitical uncertainties and war-like situation, expectations of an elevated defence budget and accelerated spendings for weapon procurement programme led to a significant rally in all the defence related stocks to stretched valuations over the long-term averages.A) SEBI has been proactive in introducing measures to mitigate risks for retail investors. The regulator is exploring moving the weekly option expiry to a fortnightly expiry as one of the alternatives to control surging volatility boosting tool i.e., Algo Trading, which also received overwhelming response from retail investors, will be regulated with the new guidelines effective August 1st, 2025. While the regulator is taking several steps, market participants have to increase awareness among investors for taking informed decisions.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
23-07-2025
- Business
- Time of India
Festive demand, monsoon could lift markets in H2FY25: Shriram Wealth CEO
In this edition of ETMarkets Smart Talk, Vikas Satija, MD & CEO of Shriram Wealth , shares his insights on the current market consolidation phase and what could drive the next leg of growth. He believes that festive demand recovery, a favourable monsoon, and positive earnings momentum could act as key catalysts for Indian equities in the second half of FY25. Satija also highlights the growing strength in rural consumption , FMCG, infrastructure, and pharma sectors, while cautioning investors about stretched valuations in defence stocks. In this conversation, he discusses market trends, sectoral opportunities, FII flows , and SEBI's regulatory measures aimed at protecting retail investors. Edited Excerpts – Q) Thanks for taking the time out. Markets are struggling in the first month of 2H2025. What is limiting the upside? by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cargo Ship Meets Pirates - Watch What the Captain Does Next! Tips and Tricks A) Generally, the first quarter remains a cyclically weak quarter for many sectors. Banking activity also remains muted given moderate industrial uptake, employee transfers, etc. The market seems to have factored in most of the domestic as well as global developments, hence it is undergoing time correction and looking for new triggers. Upcoming events such as US-India trade deal agreement, healthy festive led consumption recovery, above average monsoon and positive earnings could be new drivers for the market in coming quarters. Live Events Q) The June quarter season has just begun – how do you see India Inc. faring in this quarter? Which sectors should investors watch out for? A) Healthy rural demand and recovery in urban consumption led optimism in FMCG sector could be a theme to watch out for this earnings season. Additionally, agri-related sectors such as fertilizers, crop-protection businesses and tractor OEMs could be the ones to watch out. Q) Everyone says it is a stock pickers market now and the day of making easy money is over. What are your views? A) In the last 5 years, post the Covid led correction, the Nifty 50 TR and the broader Nifty 500 TR have yielded investors 21.3% and 24% returns respectively. Multiple sectors and companies are trading at premiums to respective long-term averages. There are several external factors such as demand challenges in domestic as well as offshore markets, dumping of goods by China, geopolitical uncertainty led supply chain and logistical issues which can adversely impact some sectors. Investors should look for selective ideas from a medium-term investment horizon and any correction can be utilized by investors to further add to their portfolios. Q) SIP crossed Rs 27000 cr for the first time in June. What is boosting the momentum? A) The adoption of mutual fund investments in India has seen an accelerated adoption, especially in B30 (beyond top 30) cities, supported by financialisation of savings, growing awareness through investor education, rising digital penetration, and the growing reach of financial service providers. The share of new SIP registrations from B30 cities has increased to 56% in FY25. Q) FIIs are still not back in India completely – is it valuations or earnings which are proving to be headwinds? A) Though FII flows may not be fully back, they have improved in the last three months ($1.3bn, $1.7bn, $2.4bn respectively in Apr-25, May-25 & Jun-25). Despite the recent rally which has taken the index to a premium (~5%) over its long-term average in terms of P/E valuation, the Nifty 50's single digit returns over the past six months remains tepid relative to some of other emerging market's double-digit returns. Various factors such as key Govt. initiatives, frontloading of RBI rate cut cycle, under-control inflation, pick-up in Govt. capex spendings and aspirations to become the third largest economy, all cumulatively are likely to support improvement in macro parameters to attract strong FII flows in the quarters ahead. Q) Which sectors are likely to drive momentum in the 2H2025? A) Outlook for the FMCG sector, particularly rural-focused consumption looks positive on the back of favourable monsoon, easing inflation, healthy rural recovery, expectation of higher disposable income owing to tax relief and rising premiumization trends. In the Pharma & Healthcare sector, CDMO (Contract Development & Manufacturing) presents a long-term opportunity. Amid expectations of a ramp-up in Govt. capex, infrastructure and utilities sectors (eg. Power, Railway and Defence) could see strong order flows in 2HFY26. Q) Any sector(s) which you think is overheated? A) In the backdrop of geopolitical uncertainties and war-like situation, expectations of an elevated defence budget and accelerated spendings for weapon procurement programme led to a significant rally in all the defence related stocks to stretched valuations over the long-term averages. Q) Despite recent regulatory steps, retail investors still account for 91% of the losses in the derivatives segment. What more can SEBI do to protect them? A) SEBI has been proactive in introducing measures to mitigate risks for retail investors. The regulator is exploring moving the weekly option expiry to a fortnightly expiry as one of the alternatives to control surging volumes. Another volatility boosting tool i.e., Algo Trading, which also received overwhelming response from retail investors, will be regulated with the new guidelines effective August 1st, 2025. While the regulator is taking several steps, market participants have to increase awareness among investors for taking informed decisions.
Time of India
10-07-2025
- Business
- Time of India
Legacy companies pan focus on financial services for affluent, HNIs and UHNIs
Chennai: Legacy companies offering financial products for the common man have turned their attention towards services for affluent, high net-worth individuals (HNIs) and ultra high net-worth individuals (UHNI) investors. These groups with a strong footing in the financing space for the SMEs, commercial vehicles, consumer and enterprise, farm and construction equipment, besides engaged in retail stock broking, insurance and chit funds, have forayed into dedicated wealth management services for the sophisticated financial needs of the affluent segments recently. With traditional lending models grapple with narrowing margins, rising regulatory burdens, and fintech-led disruption, decades old NBFCs and diversified financial institutions are increasingly entering the wealth management space, driven by a confluence of structural and strategic factors, according to industry experts. Further, wealth management is a natural extension that allows for cross-selling of products such as Portfolio Management Services (PMS), Alternative Investment Funds (AIF) and family office services for legacy institutions with established ties to SME promoters and entrepreneurial families, they observed. HNIs are those with an investable asset of a minimum of $1 million, while UHNIs are those with more than $30 million assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top Game Deals – Up to 90% Off! Shop Now Undo India is home for over three million affluent, HNI and UHNI households. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai Last month, more than 50-years-old Shriram Group launched Shriram Wealth, a 50:50 greenfield joint venture with South Africa's Sanlam Group. The company will offer wealth management, lending solutions, protection solutions, global investment opportunities, and inheritance and legacy planning to the affluent and HNI investors. It is targeting an Asset Under Advice (AUA) of Rs 50,000 crore over next five years. "Many of Shriram Group's long-standing clients have grown in their financial journey—from credit seekers to wealth creators. This upward shift in financial capability necessitates a more sophisticated, solutions-led approach to wealth. The move is also aligned with the group's vision of offering end-to-end financial solutions under one roof, ensuring customers continue to grow within our ecosystem as their financial needs mature," Vikas Satija, MD & CEO, Shriram Wealth said. The company is also planning to onboard 500 specialised wealth professionals for the purpose, he added. A fortnight ago, seven decades old NBFC Sundaram Finance announced that it has expanded Sundaram Wealth as a dedicated wealth management offering to cater to the financial needs of HNI, UHNIs and affluent families. It is targeting an AUM of Rs 20,000 crore – Rs 25,000 crore over the next four to five years. Prime Securities, a listed Merchant Banker with three decades of expertise in the financial sector, has branched out into the wealth management arena with TriGen Wealth in 2024. "India is undergoing an exciting transformation with a significant generational wealth transfer and a surge of wealth creation by first-time entrepreneurs and young professionals. These developments are expanding opportunities at an unprecedented scale," said Sailesh Balachandran, founder and joint-CEO, Prime Trigen Wealth. It is targeting more than $3 billion in Assets under Administration (AuA) in five years. Mahendra Patil, founder and managing partner, MP Financial Advisory Services LLP said, "Legacy financial services firms are repositioning themselves as lifecycle financial partners for India's growing affluent class. With trust as their biggest asset and an existing base of promoter-driven relationships, these firms are well-placed to gain share in India's fast-maturing wealth ecosystem," he added.
The Hindu
21-06-2025
- Business
- The Hindu
Investors want to buy multiple financial products under a single umbrella, says Shriram Wealth's Vikas Satija
Chennai-based Shriram Group, which recently announced its foray into the wealth management business in partnership with South African financial services player Sanlam Group that globally manages assets worth over $80 billion, said it would serve India's growing base of affluent and high-networth investors with personalised solutions designed with the help of artificial intelligence. Shriram Wealth, the wealth management arm of the group, said it would offer a range of services including wealth management, lending solutions, protection solutions, global investment opportunities, inheritance and legacy planning. On market potential, Vikas Satija, Chief Executive Officer and Managing Director, Shriram Wealth told The Hindu that: 'India has 30 lakh households with each home having investable financial assets in excess of ₹2 crore. This opens up a huge market opportunity for wealth- management business.' Although new investor behaviours have been constantly evolving, the traditional Systematic Investment Plan (SIP) alone attracted ₹26,000 crore a month, which amounts to savings of ₹2,64,000 crore a year. 'This gives lot of depth to the capital market today and SIPs can even help absorb some of the pressure from Foreign Institutional Investor exits and overall, manage the pressure on the markets,'' Mr. Satija said. On emerging investor trends, Mr. Satija, said clients were increasingly looking forward to buying multiple products from a single company, unlike the conventional way of going to banks/NBFCs for deposits, insurance firms for various insurances, someone else for mutual funds etc. 'The emerging trend is, customers now prefer to buy all what they want, in terms of alternate investments, under a single umbrella. They want a Swiggy or Zomato for financial services,'' he observed. Paul Hanratty, CEO, Sanlam Group said, 'We see wealth management as a natural evolution as India's economy grows, and people become wealthier. Our aim is not just to manage money, but to create meaningful solutions. This isn't a short-term play; we're here to build a trusted, customer-first wealth business in India for the next 100 years.'' Shriram Wealth said primary target audience would be typically individuals in the 45 years plus, as generally wealth resided in that age group while additional thrust would be on customer relationship over number of transactions. The company would also be deploying artificial intelligence to enable personalised advisory, to make risk profiling sharper to ensure real-time portfolio recommendations. A digital mindset would make Shriram Wealth a provider that is anticipating investor needs rather than just responding. Subhasri Sriram, MD & CEO, Shriram Capital said, the new business, wealth management, was a mission of the company to unlock financial prosperity for millions of Indians.
