Managed Accounts : A unique approach to Wealth Management for tech savvy HNIs

Managed accounts as a concept and service offering is relatively unknown in India because of lack of technological adoption among HNI community, who still prefers a wealth manager handholding their paperwork and trade execution formalities.

What is Managed Accounts?

A Managed account is a brokerage investment account that is owned by an investor but managed by a professional and SEBI registered Investment Adviser. The account owner can either be an institutional investor or an individual retail investor. An investment advisor then oversees the account and the trading activity within it through a technology enabled and Investor authenticated framework.

How it is different from traditional PMS and Wealth Management solutions?

Most of the traditional wealth management solutions are built on principles of custody of assets. That means, the assets of Investors are held by wealth managers in their name through regulated structures like custodians and trusts. Though these are fairly secured and tightly regulated by SEBI, there is need for money to move from Investor accounts to wealth management firms and vice versa. One key reason why this system works is convenience - HNIs inability to execute the advised portfolio on their own for various reasons like lack of time and little understanding of tech enabled solutions.

But with the advent of technology enabled solutions like broker gateways, a wealth manager today is able to provide a seamless execution of trades from their platform to an Investor's brokerage account with just a few clicks. This essentially eliminates the need for movement of money away from Investors account and reduces the management cost of their money.

A traditional wealth manager charges upwards of 2% annually with performance fee (which is outrageously high) to take care of their traditional backend infrastructures and manual interactions with clients. At Savestment, we are essentially trying to solve these pain points. Because ,we are completely automated, our clients save nearly 66% on their wealth management fees.

Why HNIs should adopt this?

HNI investors should come out of their comfort zones with respect to execution services because technology has made the whole experience so seamless that they not only can get quickly onboarded with e-KYC but also get their risk profile done and get a curated wealth plan instantly to achieve their desired goals. Once onboarded, with your linked broking account you can execute all advised trades with just few clicks.

The whole experience is worth it as it will make you feel part of the investment process and not to mention the actual savings on huge fee payouts every year.