In an interview with Pooja Chopra Goel of Myiris.com, Hitesh Eidnani, Founder & CEO, Trend Tech Consultants says, ``A financial advisor considers more than clients` portfolios. He considers their dreams, goals, past experiences, and life events that shape their views about money and finance.``
Can you tell us about `Trend Tech Consultants` and its mission & services? What services do you offer?
Trend Tech Consultants is a company born out of young energetic finance professionals from reputed institutes like IIM and BITS Pilani with over twenty years of combined experience in global firms like HSBC, Citigroup and A.T. Kearney. Trend Tech Consultants is specialized in developing proprietary strategies based on a quantitative approach to the financial markets. Our model-based approach ensures we are on the right side of the trend and get out before major market crashes. Trend Tech is extensively involved in systematic trading focusing on equity, global indices, commodities and currencies. Trend Tech is involved in investment advisory on a proprietary basis for HNIs, corporates, brokerage houses and wealth management firms. Our wealth advisory desk provides ultra-HNIs and HNIs with various services relating to their family`s investment and financial planning. We are not associated with any single financial institution or product; hence we offer the highest level of customization that cannot be matched by product driven institutions. Please visit us at www.trendtech.in
Who should think about getting a financial advisor? Is it just for the wealthy or can anyone use the services of a financial advisor?
A financial advisor is like a family doctor who advises a family (and successive generations) on all aspects linked to their financial health. Having a financial advisor is something that is absolutely critical for everybody. It is not just a requirement of the ultra high net worth segment.
How does a financial advisor make his living and is there any conflict of interest between him and his customers?
A financial advisor takes care of the entire financial planning and financial goals for a family and its successive generations. There are three sources of revenues - fees generated by transactions (generally paid by the fund houses, insurance companies, etc.), fixed advisory fees charged to clients and incentive fees charged to clients based on alpha generated. Our philosophy is to focus on charging incentive fee as that aligns the interest of the clients and the financial advisor.
What is one misconception about financial advisors you would want to refute?
Many people already have a chartered accountant that they know. So, they think they would not benefit from services of a financial advisor. What many do not understand however, is that it is very important for accountants and financial planners to work together as both meet different needs. Financial advisors are trained to adopt a more holistic approach to their finances. A comprehensive financial planner will look at areas such as debt reduction, asset allocation, tax optimization strategies, real estate, stocks, retirement, insurance, cash flow, investment performance reporting, book keeping and record management, estate planning to name a few. It is very important to take a more holistic approach to your clients` relationships. It means understanding clients` wants and needs, being in touch with their changing life situations, and providing a forum for them to tell you how you are doing. A financial advisor considers more than clients` portfolios. He considers their dreams, goals, past experiences, and life events that shape their views about money and finance.
With the internet and 24-hour business channels, is the average investor being overloaded with information?
Yes it’s like a double edged sword because there is a lot of information available but as the adage goes, `` A little knowledge can be a dangerous tool``. One example that comes to mind is regarding derivatives. I come across so many retail investors who have burnt their fingers in F&O without fully understanding what leverage is and how it can magnify profits and also losses.
Has the no-load regime affected your business?
Yes. It has helped accelerate our shift to a model where we operate more on an advisory basis and are rewarded for the quality of our advice and the alpha we generate.
How much longer will it take for the market to take out its all time high? We went very close to it but retraced from there a couple of times. What is your best guess of when the markets will be ready for it?
The Nifty is currently in a broader range of 5,700 to 6,100. If you analyze the market from a Dow theory point of view we are still in a bull market. We have made a pattern of higher tops and higher bottoms since March 2009. The last significant bottom was 5,350 and now in this November corrections has made a new higher bottom of 5,700. Western, European and Asian Indices all continue to be in uptrend. So the global scenario is conducive for an up move. If you put all these things together it is likely that the correction we saw in November was a pullback and the uptrend should resume. There is a strong probability that we cross lifetime highs of 6,350 in the next couple of months and once we cross that 10% up move from there is likely.
Is there anything else you would like to share with our readers?
Asset allocation is key. Diversification is the only free lunch on Dalal Street. I would like to reiterate, ``The trend is your best friend!`` Read more on our blog: http://trendtechconsultants.blogspot.com/
**You can get in touch with Hitesh Eidnani at: hitesheidnani@trendtech.in
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