When formulating your investment strategy it is important to determine your risk profile and attitude towards risk, the volatility of asset classes and the risk return profile of the products at hand.
For maximum benefits from the asset allocation process, you need:
As an investor, you can engage the services of an investment firm offering transaction services, which encompass wide product range access, research and execution services. Depending on the firm and your level of expertise, you can choose to work in two modes:
The wide range of products offered by investment firms can be broadly divided in traditional and specialized products
Investment products that are commonly known avenues to grow wealth are:
Direct Equity investment refers to the buying and holding of shares on a stock market by individual investors in anticipation of dividends and capital gains with changes in the value of the stock.
Mutual Funds are professionally managed pools of money from investors with similar investment objectives. Each mutual fund represents many individual stocks from a variety of industries and is managed by a fund manager.
Life Insurance policies are investments that protect you and your family against an uncertain future. There are a variety of policies which cover your life and invest your money towards your plans for the decided amount of insurance.
Beyond the regular banking services, you can gain access to exclusive banking benefits and a wide variety of credit products.
New investment products have emerged over time and are available as:
Structured investment products are pre-packaged investment strategies based on various underlying assets such as equities, interest rates, currencies, commodities etc. The value of the product can thus depend on the value of the underlying stocks or indices. The idea is to generate a particular payoff on the product to suit particular market views and maximize the returns thereof. Some structured products offer a ‘principal protection’ function if held to maturity.
Equities- Discretionary Portfolio Management Service (PMS) and Non-Discretionary Portfolio Management Service (NDPMS) are solutions for investing in equities. With Portfolio Management Service, your customized portfolio is tracked, monitored and optimized by portfolio managers while Non-Discretionary Portfolio Management Service offers these services in a consultative method.Derivatives - Instruments which derive their value from the value of the underlying such as prices of stocks, basket of stocks, indices, currencies etc. They form a part of the above mentioned structured products and help generate specific payoffs.
Private Equities are equity securities of unlisted companies exempt from the high level of government regulation as public offerings. The other side to this investment is that private is far less liquid than publicly traded stock.
Real Estate Funds are investment vehicles that are used by its subscribers to invest into Real Estate projects and/or Real Estate linked securities (Equity or Debt). Some real estate funds invest in bonds/instruments secured by property instead of actually owning property as it involves risk due to volatility in property prices.
Estate Planning includes creating a plan for your estate to enable effective management, preservation and longevity during and after your life time. The primary goal is to ensure it reaches the estate owner's intended beneficiaries, and often includes efficient tax and minimizing succession procedures.
Commodity trading helps you hedge against inflation and buy a piece of global demand growth based on the understanding of the demand cycle. You can take up commodity exposure either directly through the commodity exchange or through various mutual funds with a mandate of investing in commodities.
Art investments are a combination of business and pleasure. Though a fickle market with no guarantee of profitability, research based decisions can prove art to be worthy investments down the years.
Depending on your investment requirement, a combination of investment products can be chosen. Kotak offers various investment products through the transaction format.
* Information provided is solely for educative purpose. These products are not offered by Kotak Group Companies. Some of the products mentioned above are provided by different group companies of Kotak Mahindra Group.
Ashish Khetan Head Banking Channel –Wealth Management Services
Jaideep Hansraj Head Wealth Management and Priority Banking
Oisharya Das National Head – Wealth Management
Rajesh Iyer Head – Investment Advisory Services and Family Office
Samira Bhargava Head South India – Wealth Management Services
Srikanth Subramanian Head North India – Wealth Management Services