\n Anand Rathi Preferred began in 2014 with a question about how Indian investors would respond to asset allocation. Its approach was to organise investments around each client\u2019s capacity for risk, investment horizon and need for access to their money. For Thomas Stephen, those considerations remain the basis of a business in which he wants clients to build lasting relationships with the firm.
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\nStephen, Head of Anand Rathi Preferred at Anand Rathi Share and Stock Brokers Limited, has spent 21 years in wealth management. He describes a distribution business that seeks to earn a greater share of clients\u2019 wealth through investment reviews, a consistent process and recommendations shaped by their circumstances.
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\nSpeaking to Hubbis, Stephen explains how that approach informs recruitment, why he is prepared to train graduates for several years before giving them targets, and where he sees room for growth across India. His plans combine a larger team with greater use of artificial intelligence, while keeping people responsible for the client relationship.\n <\/p>\n
Key Takeaways<\/p>\n
\n\tClient circumstances guide allocation: Risk-taking ability, investment horizon and liquidity needs determine how the firm approaches each portfolio.
\n\tDistribution requires trust: Stephen says recommendations can include investments that generate minimal revenue for the firm when they meet a client\u2019s needs.
\n\tConsistent processes support retention: He points to clients remaining with the organisation after their relationship manager has left.
\n\tTraining precedes sales targets: Graduates can spend two to four years learning the business before progressing into client work under senior colleagues.
\n\tThe team is set to expand: Stephen wants to add about 100 relationship managers and 40 to 50 account managers over the next 18 months.
\n\tGrowth extends beyond the largest cities: He sees substantial wealth in smaller centres and scope for investors to consider a wider range of assets.
<\/p>\n
Starting with the Client\u2019s Circumstances<\/p>\n
For Stephen, understanding when a client may need their money is as important as identifying an investment opportunity. The time available and the need for liquidity help determine which assets are suitable, alongside the client\u2019s ability to take risk. That assessment gives the firm a basis for allocating across asset classes and arranging payouts around individual requirements.<\/p>\n
The same thinking carries into portfolio reviews, where the team examines existing holdings and considers whether they remain appropriate. Stephen describes the responsibility in personal terms: \u201cWe look at managing money like it were our own money.\u201d<\/p>\n
He acknowledges the questions clients can have about a distribution model. Where product manufacturers pay commissions, investors may wonder whose interests shape a recommendation. His response is that the firm also suggests investments from which it earns no revenue when those investments meet a client\u2019s needs. We are upfront to our clients on the commissions we earn across all their investments. Our endeavour is to ensure that our clients make better decisions on their investments and that the clients are happy with our suggestions.<\/p>\n
Stephen says relationships have developed to the point where clients entrust the firm with 90 to 95 percent of their wealth, and sometimes all of it. He also points to instances in which clients have stayed after their relationship manager moved elsewhere. \u201cWe are a process-driven organisation,\u201d he says, explaining that the investment approach comes from the firm rather than depending entirely on one individual.<\/p>\n
Giving People Time to Learn the Business<\/p>\n
Stephen\u2019s team currently includes about 115 relationship managers and 60 account managers. Finding the right people is one of his most immediate challenges, and campus recruitment provides a way to develop talent over time.<\/p>\n
Graduates recruited from MBA colleges can spend two to three years in training without any targets. They study wealth management, undergo assessments and begin interacting with clients under the guidance of a senior relationship manager. The intention is to establish their knowledge before asking them to take responsibility for a relationship.<\/p>\n
Development also matters further into a career. Stephen is working with partners on business skills and with institutes in India on leadership development for his senior team. He sees continued learning and the ability to take responsibility as reasons for employees to remain with the organisation.<\/p>\n
Key Priorities<\/p>\n
Stephen\u2019s first priority over the next 18 months is to deliver client returns above the relevant benchmarks. He sees investment performance as central to earning more of each client\u2019s business over time.<\/p>\n
The second is a substantial expansion of the team, with plans to add about 100 relationship managers and another 40 to 50 account managers. Over the longer term, he would like his part of the business to employ around 1,000 people serving clients in India.<\/p>\n
He also wants to use artificial intelligence more extensively in analysis and internal processes, helping the team reach decisions more easily and precisely. He expects it to support employees while they continue to handle everyday client conversations. \u201cHuman intervention is very important,\u201d he says.<\/p>\n
Into the Future<\/p>\n
A Broader Investor Base and Pressure on Margins<\/p>\n
Stephen believes wealth managers are still competing for a relatively small pool of Indian investors, with many more likely to enter the market in the years ahead. The opportunity reaches beyond equities to debt, commodities and real estate funds. He distinguishes the firm\u2019s interest in funds investing in property rather than direct investment in physical real estate.<\/p>\n
He also sees potential in international diversification, although restrictions currently limit how fully investors can use overseas opportunities. Greater flexibility, if it develops, would allow clients to spread investments across more geographies.<\/p>\n
Within India, Stephen points to the firm\u2019s operations in Vadodara, Kozhikode and Dehradun as examples of the wealth available outside the largest cities. Reaching those clients will require firms to attract and retain people who can serve them over time.<\/p>\n
His commercial outlook is pragmatic. Margins have narrowed and he expects further pressure, making growth in clients\u2019 wealth increasingly important to the economics of the business. He has no plans to introduce proprietary products. \u201cWe want to be on the client side,\u201d he says, maintaining that the firm\u2019s future depends on the quality of its investment guidance and the relationships that follow.<\/p>\n
Getting Personal with Thomas Stephen<\/p>\n
Stephen was born in Kerala and spent much of his childhood in Andhra Pradesh. His father worked in the drilling industry, giving the family opportunities to travel and exposing him to different states and cultures. \u201cI\u2019m more of an Andhraite than a Malayali out of Kerala,\u201d he says.<\/p>\n
He calls himself a \u201csmall town boy\u201d and connects that upbringing with his appreciation of the opportunities in India\u2019s smaller cities. He studied electrical and electronics engineering in Tamil Nadu before completing an MBA in international business in Manipal. A placement with a multinational bank started his career in wealth management.<\/p>\n
The interaction with clients remain one of the parts of the job he most enjoys. Working with people who have built businesses or preserved family wealth has given him insight into their decisions, and some have become people he can turn to for guidance himself. Experience with different organisations has also sharpened his judgement. \u201cToday, I know what not to do for clients,\u201d he says.<\/p>\n
Stephen is married and has a 13-year-old daughter, with family time an important part of life away from work. A Real Madrid supporter since childhood, he played amateur league football in Bangalore & Mumbai until a couple of years ago and still follows the sport closely.<\/p>\n
He has also returned to off-road driving after several years in which work left little time for it. His vehicle is a modified Maruti Suzuki Jimny, and he enjoys tackling different terrain in Coorg, also known as Kodagu, in Karnataka, as well as in Kerala. \u201cI just enjoy it,\u201d he says.<\/p>\n","protected":false},"excerpt":{"rendered":"Anand Rathi Preferred began in 2014 with a question about how Indian investors would respond to asset allocation.…\n","protected":false},"author":2,"featured_media":674575,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,174,175],"class_list":["post-674574","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ie","tag-ireland","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/674574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=674574"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/674574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/674575"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=674574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=674574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=674574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}