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Sujata Kabraji discusses her Asset Allocation strategies and challenges with HNI clients. “I can’t be accurate if I don’t have all the information” she says as she explains the first challenge dealing with HNIs is gaining their trust so they disclose their income and give you a full picture of their wealth. In many cases, they often don’t know the value of certain real estate or expensive art which makes it particularly challenging but she says she begins working with the information available and bases her strategies on risk profiling. Risk profiling is conducted in two ways – the traditional way with the questionnaire, but more importantly her intuition and personal understanding of the client, which helps her arrive at a suitable ratio of debt to equity. She stresses that this ratio is not often implemented immediately, it is more of an ideal destination that is arrived at through a journey of patience and reassurance since people are inherently cautious about their money.
She tends to be mostly strategic, but isn’t afraid to take tactical decisions if an opportunity comes by, of course only if the client is comfortable with it. When asked if Asset Allocation products are a good fit for HNIs or retail clients, she doesn’t recommend them for either since it is her belief that these products are too mathematical and not flexible at all to deal with unique situations. She believes if there is access to quality advice, that cannot be replaced by an algorithm. For retail clients, she believes goal setting works better as it is still tailored to a clients needs rather than the standard lack of customization offered by a generic product.
Thank you for sharing your valuable inputs, Sujata Maam.
The wise one speaks - useful investment of time .
Very nice 👌 discussion that investor to adopt goal based investment products may be fruitful.
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