How Video KYC is modern form of collecting your client’s information?

 

As the days pass by the pattern of operations in the business changes and gets updated with the new techniques. Every industry is dynamic and no method prevails in the market for a long. Likewise, the pattern of verifying clients is also getting changed and now the clients do not require as like before to visit authorized center for the purpose of verification. The REDVision Technologies has introduced a feature of Video KYC in its Mutual Fund Software for IFA to facilitate simplest form of collecting initial information of investors. 

                                                        

 Feature of video KYC:

·         Paperless collection of information in a scanned format.

·         Facility to check KYC status whether approved or pending.

·         Expands the business revenues and improves productivity.

·         KYC can also be received through sending an invitation link without sharing login credentials.

Why Video KYC?

·         Removes paper based data collection.

·         Rapid information collection of multiple clients.

·         Converts the method into user centric process.

·         Attracts new clients from remote locations.

What are the problems in its absence?

·         Manual process proves time consuming.

·         Lack of management and poor business operations.

·         Low revenue collection due to complex process.

·         High cost in data collection and retention.

What are its Advantages?

·         Maximum revenue collection of business while focusing on primary areas.

·         Instant verification helps in immediate investment.

·         Cost effective process for both parties.

·         More satisfaction among clients and long term retention.

The firms engaged in operations using modern method are proving productive in comparison of those which are still dependent on the old process of KYC. After adoption of Video KYC the operations of consulting firms and clients tasks became convenient. Also, the investment markets are highly fluctuated, it is highly recommended for the business to adopt video based KYC in order to avail the benefit of market returns.For More Information Visit @-https://wealthelite.in/

 

 

What advisors need to grow their business?

 

A couple of years ago the investment process was supposed to be complex for the investors and advisors and also was not much popular like today. The trading was considered as risky and only the practice of wealthy individuals but with the technological changes and modern methods the perception for investment has been changed among individuals and the investment market has attracted multiple investors due to high returns. Likewise for advisors dealing manually with each investor is difficult and maintaining paper based records seems to be worthless. Such issues generated the need of Mutual fund software having the potential to deal with every problem amid the advisors and investors.

                                        

Problems faced by advisors to manage firm

·         No platform to connect with clients.

·         High cost for managing data of investors.

·         No proper reports can be generated and tracking of funds would be difficult.

·         Calculation of gain or loss would not be easy and time consuming method.

·         Irregular tracking of client’s portfolio.   

What is Wealth Management Software?

It is a platform that enables advisors to control and conduct the operations of the business through the virtual platform. The advisors get several facilities at one platform that allows them to regulate business seamlessly.  

The financial software assists in acquiring and analysing every single detail of the investor’s portfolio involving schemes within funds are invested, trends showing returns along with the entire assets managed by particular advisor. As the advisors are connected with multiple investors’ classification of portfolios can be easily done based on the funds invested within same scheme and supports the back office operations of the advisors.

What are its functions?

·         On boards new clients with less formality.

·         Manages multiple assets of advisors clients.

·         Assists advisors in maintaining client’s portfolios effectively.

·         Prepares several reports to reveal funds status.

·         Connects advisors and clients at one platform.

·         Monitors the business performance at a glance.

Advantages to advisors with financial software

·         Easy to operate business functions and manage clients.

·         Multiple reports can be prepared for analyzing client’s investment.

·         Info graphic information can be presented for convenient interpretation.

·         The data is secured on cloud serves and are accessible from any device through valid authorization.

·         Financial planning for clients became an easy and accurate process.

·         Multiple investors are provided recommendation for investment at single click.

Does advisors client receives any benefit?

·         Funds monitoring is convenient and facilitates in trading.

·         Returns generated on the funds can be determined through the summarized reports.

·         On time investment and financial plan reports are received.

·         Advisors care for the investors funds on his client’s behalf.

·         With effective strategy due to software help, the portfolio of client improves.

The Mutual fund software is proving beneficial and worthy for both the advisors and clients and possessing the software has become mandatory for advisors to serve effectively to the clients along with maintaining long term professional relations. Each form of report has its different significance that contributes to high return on the investment. Also the advisors business is dependent based on which each clients report and summary can be shared.For More Information Visit @-https://www.redvisiontech.com/

 

Portfolio Rebalancing Strategies: 'Do You Know This Secret?'

Why Advisor need portfolio rebalancing?

Portfolio Rebalancing is a Game Changer idea for Financial advisors, you can call it “PRODUCT ENGEERING”, a mutual fund scheme gives same returns whether investor invest with Advisor A or Advisor B. Now the question is what extra a Advisor can do for his clients?

                                                          

Problem: 50% portfolio loss vanish 100% portfolio gain.

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. - Warren Buffett

The major Market corrections are cyclical keep repeating in 3-4 years, every time the market corrects shapely it take portfolio in the position of 3-4 years back, all the gain disappear which was accumulated in the bull run, now the question is how to save this gain.

Solution:

100% Equity Vs. Yearly rebalanced 70/30 Equity-debt

(Invested in Sensex for equity and invested in Glit fund for debt)

Really, Portfolio Rebalancing Optimize Return and Reduce risk? But how?

1.       Between the market rally from 2005 to 2007 the 100% Equity portfolio gave better returns but in market fall it went below the 70/30 portfolio.

2.       During the 15 years the rebalanced portfolio were less volatile, after 3^rd year the rebalanced portfolio never went below the 100% equity portfolio.

3.       Every time the equity gained, it shift some profit to debt and when equity fall, it buy units at cheaper rates.

Which Should be the right asset class mix for best returns?

Equity & Debt mix is depend on the risk profile of the investor but still if the question is what asset mix can give optimized returns, here we did back testing, the case is same as above example the last 15 years returns of Sensex and gilt, rebalanced yearly.

Below graphs shows that the returns from sensex and gilt fund (Asset mix in lower equity(0%/100%) to high equity mix(100%/0%) in past 15 calendar years and the value of Rs.100000 invested on 1 jan 2005 and redemption done on 30 April 2020.

 

Looking at the above back testing results, the most optimized returns got in 70/30 Equity/debt, the value of Rs.100000 has been reached to Rs.551864, but if advisor want to reduce more risk with little compromise with returns, opt for 60/40 asset mix.

Always Remember, Investor loves stability!

What are the Strategies you can follow?

Periodic Rebalancing

The most convenient way to rebalance a portfolio is to decide a time interval for example quarterly, Half Yearly or Yearly. Most of the advisor prefers a yearly rebalancing irrespective of market condition, in all the above examples the yearly rebalancing has been done.

 

Range Rebalancing

Advisor can set a target percent change in the portfolio for example a portfolio is set as equity/debt 60/40, when the market rise the equity portion will increase and the ratio get changed, it may be 70/30, here advisor can set a alert on 10% change, so whenever the portfolio get change of 10% it will ask to rebalance it.

How easy it is to rebalance the portfolio?

Step 1: Decide Asset Allocation ratio and Re-balancing Strategy out of Fixed interval and change percent.

 

Step 2:

Once advisor decided the equity/Debt ratio with investor and what strategies they are going to follow, after that all task has been handled by software, if advisor want to rebalance the portfolio on 5% change, the software will send a alert as the difference in the current and recommended touches 5%.

 

Step 3:

Software will itself generate the Buy/Sell amount, you need to go to sell option and enter the amount you want to switch to other asset class, after that all you need to click on RE-BALANCE NOW Button. The switch order will be placed on BSE/NSE.

 

FOR MORE INFORMATION VISIT @-https://www.redvisiontech.com/