A Risk is a possibility of a financial loss. The financial loss can be direct i.e. reduced return, loss of capital, etc. or indirect i.e. medical expenses, opportunity loss, etc. Investment is more about risk minimization than return maximization.
Wealth Protection is very crucial and we provide various risk management strategies for risk reduction, risk mitigation, risk minimization and risk avoidance through various insurance and other wealth protection strategies as mentioned below:
1. Insurance Planning
For Insurance, we educate and present realities of current coverage, perform need analysis, advice about various types of insurances (Life, Health, Property, Liability, etc.) as well as about various insurance plans, recommended terms (sum insured, premium paying term, policy term, coverage, conditions, etc.) so that our clients get maximum coverage at lower premiums for managing various risks for the family.
2. Will & Estate Planning
Estate Planning is extremely critical and unfortunately there is not awareness about the same. We educate our clients about the importance of estate planning and handhold them to write a Will. We also help set up family trusts for ring fencing the assets and ensuring that the benefit of the wealth goes to the intended person or used for intended purposes or remains in the family.
3. Liquidity Management
Availability of funds when needed to pay for the expenses or when liabilities become due is most critical. We plan cash flow and manage investments and liquidity so that funds are available to meet any emergencies, there are no idle funds, enough balances are available at any point in time and no need to sell any long term asset for short term requirement.
4. Rationale and Suitability of Investments
We prepare a risk profile after assessing ability to take risk and willingness to take risk. Also an Investment Policy Statement (IPS) for the family is prepared for the family. We research various asset classes, investment products, plans and options as well as domestic and global financial market situations to ensure that any advice that we give is in accordance with our client’s risk profile. Also, we ensure suitability of investments for respective client family and that there is a sound rationale for including the investment in the family wealth.