Best for investment research in India 2023
Aditya Birla Capital
Aditya Birla Capital has been able to develop and expand its wealth management platform thanks to its experience and expertise, wide product portfolio, robust research methodology, client-centric approach and solid technology platform. These attributes helped it to win Asiamoney’s award for best for investment research among India’s private banks.
Aditya Birla focuses on four client segments: corporate and treasury officials; high net-worth individuals; retail customers; and, since the end of 2022, ultra-high net-worth individuals. These groups turn to Aditya Birla for advice on how and where to invest their money. Under the leadership of Aman Rajoria, head of wealth for high net-worth, corporate and treasury services and capital market institutional group, the firm takes a top-down approach to investment research, focusing on the macro economy, industry sectors and products.
What this means is that Aditya Birla’s research team analyzes a host of high-frequency economic indicators – such as government spending and revenues, the state of the banking sector, and inflation and consumption figures – and delves into market forecasts before pinning down its domestic and global macro views.
It then uses its proprietary Optimum Efficiency Model (Opem) ranking system to produce investment portfolios for clients. Opem first studies measures such as concentration risk, market capitalization and track record, then drills down into factors such as performance of schemes and quality of portfolios before picking the best ideas for its wealthy clients.
Here too, the process is robust. Aditya Birla has a product evaluation committee that approves funds to be shortlisted before they are signed off.
The efficiency of the process was evident from the calls that the team made in 2022. Their recommended investments in financials, industrials, consumer discretionary, gold and the short end of the fixed income curve produced solid returns.
What also differentiates Aditya Birla is its client-centricity. The team conducts a detailed risk profiling of clients to understand their risk tolerance, before offering them products based on their investment and risk-reward needs. It communicates actively with clients, with daily, weekly and monthly reports on house views across asset classes and frequent performance reviews.
By the end of December 2022, the firm had about 2,100 high net-worth clients. Revenues for 2022 rose 13%, year on year: the high net-worth client group was the biggest driver of this growth. The success of the firm’s investment calls meant the blended yield on assets under management from the high net-worth group rose from 55 basis points to 75 basis points last year.