Who & Why - Claritas

Claritas® Investment Certification
By CFA Institute, USA

© EduPristine For Who & Why Claritas (Confidential)

© EduPristine – www.edupristine.com

Who & Why Claritas?


1

Who Should Do Claritas?

Claritas

Working in Investment
Industry

Wanting to switch fields
into Investment and FS

Working in Financial
Services Industry (Banks)

Students wanting entry
level positions


2

Why You Should Do Claritas?
I work for the Marketing / Sales Team of an Investment Industry,
Do I need to do Claritas & Why?

Yes. Claritas will definitely help you in the below areas:

– Understanding different financial products and mapping to the right

segments through targeted campaigns
– Intelligent conversation with prospects
– Aviod mis-selling by following the well defined ethical standards
– Timely feedback and suggestions on product performance and
alternatives for corrective actions


3

Lets See a Real-life Situation…
Kartik is the Sales Manager of XYZ Investments. His existing customer Mr.
Sunil (age 55) comes to him saying “I have Rs. 50,000 of idle cash which I
need it after 12 months. Can you please suggest a suitable investment
for me?”
Kartik says “Yes, Sir. You can invest in an Equity Mutual Fund of PQR
Fund, it will give you good returns.”
What is the Problem here?

1. Ethics – Mutual funds give higher sales commissions, hence Kartik
looked at his personal interest more than customers.
2. Suitability – Kartik did not verify Sunil’s risk profile / apetite, if he can
invest in an equity Mutual Fund or not.
3. Uncertainty – As mutual is subject to market risk, Sunil may end up
earning a lesser return than expected, may even end up losing a part
of his principal.


4

I work for the Operations & Compliance Team of an
Investment Industry, Do I need to do Claritas & Why?
Operations:
– Understand complete lifecycle of Investment products
from Origination to Servicing to Closure / Settlement
– Have intelligent conversations with Product and
Marketing teams
– Timely execution of investment transactions by
understanding their market impacts
Compliance:
– Foster a culture to follow investment ethical practices to
regain trust from market participants
– Ensure tighter compliance to investment operational
policies to avoid customer and organizational loss and
potential litigations
– Have a tighter watch on the changing investment practices


5

Rosy is working for the operations team of XYZ investments. On a busy
day she gets a lot of liquidation / redemption requests from various
clients. One was for Bonds maturity processing, another was for Sale of
2 Lots of TATA Futures and many more. She decides to process the Bond
maturity first and later the TATA futures. In few minutes, the price of
TATA futures starts declining.


1. Time sensitivity – She should have acted on TATA futures first as it is
market sensitive. Here there will be case of financial loss which
needs to be compensated.
2. Lifecycle – She is not clear about the lifecycle or various stages a
redemption / sale / liquidation requests goes through for any
financial instruments.


6

I work for the Customer Service / Admin Team of an Investment
Industry, Do I need to do Claritas & Why?
Customer Service:
– Understand customer specific investment products to
provide timely and effective service
– Faster resolution of Investment related queries and
complaints due to better understanding
– Ability to cross sell investment products by anticipating a
customer need
Administration:
– Understanding the Investment lifecycle and the Industry
structure will help in creating a better surround system for
efficient functioning and operations
– Become more eligible to switch to customer facing roles in
the Investment Industry


7

Mr. Sunil, a customer of XYZ investments calls the Customer Service
officer Mr. Rohan and asks the following question.
1. Will Simple Or Compund Interest product give a better yield?
2. A Share of HLL purchased at 150 1 year go is now trading at 175.
Today I got a dividend from the same of Rs.10. What is my return?
3. What are the Fixed Income Investments you offer?

Mr.Rohan said, “ Sir I will call you back in 15 mins”

1. Incomplete knowledge of few terminologies above
2. Not Confident to provide instant response to Mr. Sunil


8

I work for the HR / IT Team of an Investment Industry, Do I
need to do Claritas & Why?
Human Resource:
– Creating a solid team by hiring the right person for the
right investment related job
– Will provide detailed understanding of different
Investment roles performed by a candidate in the past
– Can help creating a proper appraisal matrix by identifying
Objective and Subjective criteria's in investment roles
Information Technology:
– Contributing to business requirements from the business
teams
– Based on the nature and the processing of the investment
products, you will be more willing to introduce and
implement Straight Through Processing
– Faster Time to Market from conceptualization to design
of products

9

The Investment Department Head of Prime Broking Ltd, instructs the HR
department to look for New hires for the below profile.
1. Research Analyst with 5–8 years experience in Commodity
Derivatives and Options Strategies
2. Relationship Manager having handled HNI portfolios with a overall
worth of over Rs. 100 million across all investment products

1. The HR person is not very familiar of these roles and not sure of how

to filter few roles from the Job portal.


10

Lets see a real-life situation of an IT Professional…
Dan Finance Software Ltd sells software to manage Project Finance,
Working Capital & Supply Chain Finance to firms across the world. The
Business Head of Project Finance Department request for a software
development to compute IRR , NPV & Discounted Payback for a stream
of cash flows. This requirement goes to a Software Programmer to
develop the same in a matter of 7 days.

1. The Programmer starts the Job without even understanding the

basics of the requirement. He is not aware of the terminologies of
IRR, NPV etc.., still starts coding based on Requirement
specifications. This results in multiple iterations of the code to finally
meet the expectations and the deadline is overshot!


11

I work as a Relationship Manager for a Bank, Do I need to do
Claritas & Why?
– Recommending & Cross-Selling right investment products
and contributing to the generation of fee-based income
for the bank
– Understanding the composition of overall investment
portfolio of a customer and basic risk factors
– Understanding the Investment Policy Statement and
suggesting a suitable asset allocation
– Measurement of portfolio performance and timely
customer communication
– As a stepping stone in the world of Investment education,
you become more aware and ready to venture in gaining
the Gold Standard in Investment education by pursuing
the CFA program as a next step


12

I am looking forward to switch my career from my existing
industry to an Investment / Financial Services Industry, Do I
need to do Claritas & Why?
OR
I am a Student and looking for an entry level position in an
Investment / Financial Services Industry. Should I do Claritas
and Why?
– You gain a basic understanding of the world of Investment
Industry, different Investment / financial products like
Equities, Bonds, Derivatives, Commodities etc.
– Understanding the Risk & Return attributes of various
products as above and calculation of the return.
– Understanding the ethical standards warranted in an
Investment Industry / Financial services
– You can accelerate your learning curve in this new
industry as compared to a person without a formal
Investment education

13

That is not it……..You All Gain Something More!
You can learn to Manage yours and your family’s investment and
finances more intelligently:
–
–
–
–
–

Understand different types of Investment Avenues
Invest as per your Risk appetite
Understand & Measure your investment returns
Take timely course corrections
Have more matured and productive conversations with your RM / Banker


14

Contact Details

TO KNOW MORE…

Please e-mail at maitri@edupristine.com
Click Here
OR

call at +91 9930865533


15

Who & Why - Claritas

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