Anand Rathi Wealth provides wealth solutions and is one of the top three mutual fund distributors in India in the non-bank category.
- Its private wealth (PW) arm caters to over 6,500 families in the high-networth (HNI) segment, which is supposedly under-served and less price sensitive.
- It’s assets under management (AUM) have grown at over 20% in the last three years and currently stand at over ₹29,000 crore.
- Under its other two verticals - Digital Wealth (DW) and Omni Financial Advisors (OFA) - digitally serves large mass affluent investors and independent financial advisors, respectively.
- It has presence in 11 major Indian cities and serves its clients through more than 230 relationship managers.
It’s financial performance in fiscal ‘21 dipped due to the pandemic-related disruption. However, the profit bounced back in fiscal ‘22. In the first five months of FY22, the net profit stood at ₹51 crore supported by lower expenses.
- A well-known brand in the wealth management and financial services space
- Presence across the customer value chain - Ultra-HNI, HNI and mass affluent
- Has a sticky customer-base with about 55% of its clients being associated with it for over three years
- Deploys in-house research and analytical tools for allocating assets and selecting securities based on client’s profile
- The fall in mutual fund total expense ratio and the increasing popularity of direct plans could impact its mutual fund distribution business
- The volatility or fall in the markets could impact demand for its services
- The wealth management industry is highly competitive
- Wealth management and mutual fund industries are tightly regulated. This means the company faces the risks of non-compliance
- India’s AUM-to-GDP ratio in 2020 stood at 16% vs the global average of 63%
- India’s low mutual fund penetration leaves room for growth
- India’s pool of millionaires is expected to grow at a rate of 13% till fiscal 2025
- Rising preference for financial assets versus physical assets augurs well for financial services providers