3. Designed to Confuse
Many objectives in a single products makes it impossible for client
To measure and evaluate product against its objectives
4. Think about your current product
How many objectives does it has ?
Insurance
• Q1:Does your current product offer insurance
• Q2:Does it offer best affordable insurance product.
Growth
• Q1:Does your product grows your capital
• Q2:Does it offer most competitive performance in industry ?
Tax
Q1:Does it offer best tax saving option available ?
Q2:
Savings
• Q1:Does you product allows you to park your savings
• Q2:Does it help you save more than any other product ?
5. Q1’s = Yes
Q2’s = Don’t know
Product = God Knows
If you are not able to evaluate performance of your
product on different objectives then probably you are stuck
with a product which is offering you sub-optimal
performance on each objective
Having a product doing all is a great thing but often products are designed
Too complex for clients to understand its performance.
6. Even after holding multiple policies
most people us do not have
sufficient life cover
Most of the complex products give
suboptimal returns and have no
suitability for the buyers
7. ULIP’s are one of the example of such product which offered
Everything. It is estimated loss of investor wealth in this
Product Is 1.5 trillion as per Wikipedia.
8. There are very simple and competitive products available
for each of your requirement which can bring you back in control
9. Transparency
• Check how
easily you can
evaluate
product
performance
against other
products
Cost
• How much is
cost of product.
• As financial
product invest
your money,
how much
money in
invested.
Performance
• Past
performance
• How easy is to
monitor and
compare
Alignment of
Interest.
How are clients
interests ,agents
interest and
product companies
interests aligned.
Choosing a product
10. Insurance
Risk Cover. Should be 10 times Annual
earnings. Should be a term plan
Liquidity
For emergency needs and cash flow,
use FD and Savings
Surplus Mostly in Equities
11. INERTIA Your Gateway to Financial Freedom
Equities as a tool for long
term wealth creation
12. INERTIA Your Gateway to Financial Freedom
Equities as a tool for long
term wealth creation
13. Finding your Money Minting Machine
Earning and Debt
• Predictable Earnings
• Low Debt
Understandable
• Don't take a genius to run
Professional management
• Management is owner-oriented
• Promoter fair to minority shareholders
14. Finding your money minting Machine
Strong franchises
• Freedom to price
• Low Debt
ROI Focus
• Management focused in “Return on
investment “ than chasing growth wildly.
Reasonable Valuation
• Price is what you pay value is what you get
15. Inertia Strategy
Zero tolerance to
permanent loss of capital
Accumulate wealth
through power of
compounding
16. Inertia Framework
Help you allocate the right amount
to equities – balanced allocation
key to successful wealth creation
through equities
Investment process
17. PORTFOLIO DESIGN
Diversified portfolio of 30 companies
Highest allocation in one stock : 5%
Diversified portfolio of 30 companies
18. Performance and Expectation
Performance (%)
60 % returns in last 2 years
1-month
(Aug 14)
3-month
(Jun 14-Aug 14)
6-month
(Mar 14-Aug
14)
12-month
(Sep 13-Aug
14)
Since inception
(31st Aug 2012)
Inertia Portfolio 4.4 13.7 28.5 53.4 59.7
Sensex 2.9 10.0 26.1 43.1 51.9
Nifty 3.0 10.0 26.7 45.4 51.3
Expect the portfolio to generate 15-20% CAGR in the long-term on
an absolute basis and outperform the Sensex on a relative basis
19. Insurance Products Mutual Funds Trading/broking Inertia
Transparency Low Low Low Very High
Cost High Medium Very High Low
Performance VS
Benchmark Very Low Medium Negative High
Customized Service No No No Yes
Alignment of Interest No No No Yes
Brand Value Very high High Medium New Brand
Fee High Medium Very high Low
20. No Fee for underwater portfolio : Pay us fee only when your portfolio has
given returns
Free Trial for One Quarter
Post Paid Service
PORTFOLIO SIZE ADVISORY FEE
INR 0-2 Lakhs INR 1,000 per Quarter
INR 2-5 Lakhs INR 1,500 per Quarter
INR 5-10 Lakhs INR 2,000 per Quarter
> INR 10 Lakhs 0.2 % of Portfolio size per Quarter
21. Summary
Easy to understand product which can be evaluated against its objective .
Product with complete alignment of Interested.
Product with complete transparency.
Low cost .
Client is at driver’s seat.
No alternate product available in the market.
