Internship project by Apurv Singh

1. Landscape Assessment For
Financial Planning, Wealth
Tracking & Mutual Fund
Analysis Tools
By Apurv Singh
CRISIL Research
Ltd.

2. Overview
 Aim of the project
 Improve our current offering in the mutual fund analysis,
the wealth tracking and the financial planning space using
landscape assessment
 Approach
 Analysis of competitors
 Meet market players
 Analysis And recommendations
 Analyzed the data received from the questionnaires
 Gave recommendations according to the analyzed data in
the questionnaires and gave my own recommendations.

3. Contents
 Phase 1
 Brief overview of CRISIL’s offering
 List of competitors
 Phase 2
 Recommendation for CRISIL offering
 Phase 3
 Recommendations for new products

4. Phase 1
 Products available by CRISIL and the
competitors for financial planning (FP), Research
tool, Investor wealth tracking solution and back
office solution in India and overseas markets.

5. Brief overview of CRISIL’s offering
 Company: Crisil Research
 Company profile: CRISIL Research is the
country’s largest independent and integrated
research house with strong domain expertise on
Indian economy, industries and capital markets.
Our offerings allow markets and market participants
to become more transparent and efficient - by
mitigating and managing risk, taking pricing
decisions, generating more revenue, reducing time
to market and enhancing returns, thus catalyzing
economic growth and development in this country.

6.  Financial planning tool
 The tool includes various modules designed to generate a
scientific Financial Plan for an individual. It includes
sections for risk profiling, analysis of needs, retirement
planning, assessment of insurance requirement and cash
flow analysis. CRISIL can also offer technology
development support to deploy the model in the form of
an online interface to the customer based on client
specifications.

7.  Wealth Tracker
 The wealth management tool provides robust
performance features as well as scalability as it covers all
asset classes along with mutual funds. It provides client-
wise summaries of the portfolio holdings in various asset
classes, industry/company wise holdings, and the
gain/loss on the client's portfolio. Besides it has a
Transaction import facility and can be installed on the
Intranet and made available to all Relationship Managers
across India.

8.  Fund Analyzer
 For a 360-degree analysis of Indian mutual funds, CRISIL
offers an advanced Mutual Fund Research tool that
comes with the most updated database providing all kinds
of complex calculations, analysis, reports and updates on
the click of a mouse. The Mutual Fund Research Tool
allows the client to view details, compare performance,
monitor portfolio, and customize queries on more than
6500 mutual fund schemes at the click of a button.

9. Company Financial planning Mutual Fund analyzer Wealth tracker
3i Infotech Telesto C-matis,Quantis,M-Fund
Accord Fintech Mutual Fund Web Content Wealth Tracker
Arm fintech FINNSYS Tool for website visitors
Brainmatics PerfAttrib
C-mots Capital line, Online content licensed Apna Money, Online content licen
Cogencis (Formerly Newswire 18) Free web based
Credence Analytics IDEAL funds
Crisil Financial Planning tool Crisil Fund Analyzer Wealth Tracker
datacomp FundzMagic
Dion Portfolio
Dips imagination FincorpVista/Fincorponline Fincorponline
Economic times portfolio Economic times portfolio (free)
Factset Portfolio Analysis
Fiserv Fiserv
I fast iFAST Platform
ICRA Online MFI Financial Planner MFI Explorer MFI Portfolio Tracker
Infosys (entry in 2012) Microsoft dynamics
Infrasofttech Finalcial planner Portfolio accounting
Invest-well Invest-well Invest-well
Lipper Indices Desktop Analytics
Mercer Financial analysis and risk management
Miles soft MoneyWare Integra™ Moneyware™ Fund Accounting MoneyWare Integra™ WMS,PMS
MoneyControl.com Free wealth planner Mutual fund analyzer (partly CRISIL content)Wealth tracker
Morningstar.in Portfolio Manager Tool Portfolio Manager Tool
myiris Online Financial planner Free online mutual fund analysis tool iWealth Tracker
Nav India Nav India
Omnimax India The OMNIMAXTMFinancial Health Omnimax professional
Polaris Intellect™ Wealth Suite
REDVision tech FP Samurai Wealth E Office
Ticker plant MVXenius
value research Value Express Online portfolio tracking tool
VijaySoft Invest
Win soft Mutual Fund analyzer Wealth tracker
Zephyr Style advisor
ListofCompetitorswith
products.

10. Company Corporate/India office Operations
3i Infotech Navi Mumbai Global
Accord Fintech Navi Mumbai Domestic
Arm fintech New Delhi Domestic
Brainmatics Indonesia/Mumbai Global
C-mots Mumbai Global
Cogencis (Formerly Newswire 18) Mumbai Domestic
Credence Analytics Mumbai Global
Crisil Mumbai Domestic
datacomp Mumbai Domestic
Dion Noida Global
Dips imagination Ahemdabad Domestic
Economic times portfolio New delhi Domestic
Factset US/Mumbai Global
Fiserv US/Noida Global
I fast Singapore/Mumbai SE Asia
ICRA Online Mumbai Domestic
Infosys (entry in 2012) Bangalore Global
Infrasofttech Mumbai Global
Invest-well New Delhi DOmestic
Lipper US Global
Mercer US/Mumbai,Chennai,NCR Global
Miles soft Mumbai Global
MoneyControl.com New Delhi Domestic
Morningstar.in US/Navi Mumbai Global
myiris Navi Mumbai Global
Nav India Mumbai Domestic
Omnimax India New Zealand/Noida Global
Polaris Chennai Global
REDVision tech Chennai Domestic
Ticker plant Mumbai Domestic
value research Noida Domestic
VijaySoft Surat Domestic
Win soft Mumbai Domsetic
Zephyr US No india presence

11. Phase 2
Recommendation for existing CRISIL
offerings
 For this part of the project
 Visited and spoke to 40 of our present as well as potential clients
 Sought their feedback on our existing offering and understand
the value adds that can be provided to cater current market
requirements

12. Results of the survey were….
For Fund Analyzer
 Use of the tool
 Our tool is used daily by 71% of the respondents
 Inference:
 Any changes that are brought about to the software
should be done regularly and in a phase wise.
 Rating of FA7 : 3.73/5
 Rating is down because of the technical
problems faced by some of the clients
 Many people are using the old version.
 Recommendation:
 FA should have a integrated email or online chat
function that directs the client to mail the problem
or a chatroom that is manned by a CRISIL
employee to help us get knowledge about the
problem as soon as possible.

13. Rate the amount of time that it took to
install FA7.
 Installation time: 4.05/5
 Good rating and living up to good customer service
Quality of training that it took to install
FA7.
• Training time: 4.29/5
• Users who get employed in the clients company
after the software is installed.

14. Response time taken to
answer queries
 Time taken: 3.92
 CRISIL is quick at responding to queries, however it
sometimes takes up to 3 days to get a response.
 Display a dialogue box showing tips on better
utilization of the tool on the first time they log into the
tool every day.

15. Time taken for product support.
 Time taken for product support: 3.88/5
 Support regarding product reinstallation, database
replacement, issues in technology, run time errors,
customization requests and product modification.
 The rating is good even thou it may seem low as
these problems are based on customization and
alteration of the product on a micro scale.

16. Time that it took to generate reports in
FA7
 Report generation time: 4.04
 Rating is down because of the users of the old
version which uses an older database.
Timeliness of daily updates of FA7
• Report generation time: 4.17
• On time. whenever there is any error, CRISIL
rectifies the error in a timely fashion.

17. Timeliness of monthly updates of FA7
 Timeliness of monthly
 updates: 3.64/5
 Later than expected from clients side, speeding up
the process will help.

18. Speed of NAV and portfolio updating of
FA7
 The NAV and portfolio updating speed can be
categorized as average.
 The clients who had slow updating speed were the
respondents who had technical difficulties.

19. Type of report
NAV
Performance (P2P) 28.21
Rolling Returns 12.82
Dividend 7.69
Fund Screener 0.00
Portfolio
Breakup 17.95
Asset Allocation 15.38
Company Based 5.13
Customized 5.13
SIP 7.69
*multiple reports used by clients
Most used report is
p2p
Recommended to not
remove any type of
report as it will
decrease
functionality.
A report builder

20. Payment
 We currently offer Equal payments every year till
subscription lasts, however some of our major
competitors offer in the first year and 5-20% of
original cost paid every subsequent year option.
 The advantage of the second option is that the client
will incur lesser costs to continue with the tool
against changing the solution provider completely, so
there is a sticky behavior and only a great change in
the services offered will convince the client to shift.

21. Reports
 Provide both (excel and PDF) output capabilities in
Fund Analyzer and Wealth Tracker.
 Output should be only in PDF in Financial planning
tool. As it has being going on till now.


22. For Wealth Tracker
 Segment catered to
 HNI 45.45%
 Corporate 27.27%
 Individual 27.27%
 Our clients are normally cater to HNIs and some
cater to corporations and individuals.

23. Importing
 The format that is preferred is Excel format with
100% of the respondents choosing excel

24. Preference of a desktop or browser based
tool
 Desktop 60%
 Better reporting features
 Needs to be updated only once a day and that too not for
not more than 5 minutes
 The best feature is that it is always usable even in cases
when there is no internet access in the area and for
visiting clients in far flung areas where there is no internet
access.

25.  40% wanted browser based tool.
 Does not need to be installed on each and every terminal
that uses it and thus accounts can be accessed from
everywhere.
 The data is dynamic and keeps fluctuating with time so to
have data that is accurate to the second, it is useful to
have a browser based tool for this reason.

26.  Conclusion
 Have a desktop based tool that can be refreshed at
different intervals ie. Every second, every 1 minute,
every 15 minutes, every hour etc.
 Have blank excel sheets that can be filled in while on
visits and then uploaded to the application. This
reduces the amount of licenses that a distributor
needs.
 A browser based version can be given to check the
portfolios and that has a limited reporting capability
but cannot be used to enter in values and reports
only in the desktop based tool.

27. How much are they willing to pay?
 50,000 to Rs. 100,000 p/a

28. Analytical comparison of Wealth Tracker
(desktop)
Features Perfios Mprofit InvestPlus
Intuit Money
Manaager
Data Resides
in
Companies
server
Local
computer
Local
computer Companies server
Free Version Yes 30 day trial Yes 30 days trial
Email Alerts Yes No Yes Yes
SMS Alerts Yes No Yes Yes
Reports Yes Yes Yes Yes
Mobile
Version Yes Yes No No
Export Data Yes Yes Yes Yes
Statement
Upload Yes Yes Yes No
Documents
Storage Yes No No No
Fees 1499/pa 1562/ 1999/ 365/pa
Renewal Fees 1499/pa 1200/pa 900/pa 365/pa

29. Portfolio Trackers comparison (browser
based)
Features Arthamoney
Money
Control
Value
Research Money Sights
Mutual
Funds/stocks Yes Yes Yes Yes
Insurance/real
estate Yes Yes No No
Loans Yes Yes No Yes
Graphical report Yes Yes No Yes
Reminders Yes Limited No No
User Interface
(1-5) 3 5 2 4
Overall Features
(1-5) 3 5 2 3

30. Clients comments
 Data of CRISIL is authentic and analytics of CRISIL are
wonderful
 In Fund Analyzer, sometimes it does not update and has to be
done manually.
 Indices should be included (LIBOR)
 In fund analyzer, you should get profiles of fund managers and
their styles of investing.
 Capital gains report should be present
 Fund Analyzer misses YTM.
 Sometimes they end up comparing monthly AUM with
quarterly AUM, thus leading to some discrepancies.
 Report templates are a great advantage some competitors
have.
 States that they are sticky because they know where the
errors are and so they can predict the problems. And thus are
more comfortable with the product.

31. Suggestions.
 Software interface can be made more user friendly and
attractive. The suggestions are
 Include a glossary of terms used in the software. The
formulae used in the computation in the software with
brief explanation will help boost user confidence.
 CRISIL study on the investment time horizon by Mr Jiju
Vidyadharan was recently carried by Times of India. It
would be good guidance to investors if the results could
be incorporated in the software for the Mutual Fund
schemes. CRISIL can also carry out a similar study for
other asset classes based on the historical data for the
assets covered by software.
 Simple and intuitive reports like value of investment if Rs
100 is invested can be included with a graphical
presentation of returns. Value weighted returns or other
returns as used by the software currently may be used to
compute the portfolio returns.

32.  Reward to risk matrix for the assets covered under
the software can be presented in matrix based on
the study of historical data.
 It is not possible for CRISIL to suggest asset
allocation; however, the software can carry a matrix
based on the historical returns for the assets which
are covered in the wealth tracker. User should have
option to choose reasonable number of periods to
see how the returns for the various assets are
moving over the selected period of time. This should
help him to make changes in asset allocation. One
can also explore the possibility of simulation of an
existing portfolio/ dummy portfolio to give the user a
better grip on the importance of allocation.

33.  Among all the clients and potential clients, everyone
praises the data accuracy of CRISIL so it is essential
to capitalize on this fact and build on it. The product
position in the minds of potential and current clients
is very good, however the interface is not in line with
data provided. The reports are neat and tell the
consumer what he wants to know but in a dry and
drab way. If your product is good, its packaging
should be good and should essentially keep up with
global trends of the market. Modernize the reports
(keep an option for the old reports) and so that they
are presentable to the new class of consumers. The
advantage of custom design is that you
communicate a look and feel that is particular to your
firm or company.

34.  Tool should be designed to never give this message.

35. Phase 3
Recommendation for new products
that CRISIL can explore
 Financial Planning Lite
 The government is gradually moving away from defined
benefit to defined contribution as a form of retirement
benefit. The young working population is not aware of the
consequences of not providing for old age pension.
IRDA’s NPS is has been a non-starter (so far). To fill this
vast market need, a lighter version of the planner may be
sold through franchisee model. The franchisee would use
the net based model and pay CRISIL data charges. While
the market data and reports rest with CRISIL, the investor
data would be with the ultimate user / service provider.

36.  Identifying target market segment
 The product can be either sold online directly to the
consumer or can be sold to distributors, who will pay
us per customer.
 A large market of the consumers of this tool will be
people who get their first job as they will need the
financial planning advice more than others.

37. List of existing service providers
 3i Infotech with their product Telesto
 ICRA Online with their product MFI Financial planner
 Infrasofttech with their product Financial planner
 Miles soft with their product Moneyware Integra
 MoneyControl.com with their free wealth planner
 Myiris with their online financial planner
 REDVision tech with their too FP samurai


38. Product positioning
 Product will be positioned used to plan for people
starting their career and
 Catching investors young
 Catching financially unknowledgeable clients and
educating them
 People who get their first job (college placements,
job agencies, pages in business networking sites
etc…)

39. Product Pricing
 As it will be an entry segment tool, it cannot be too
expensive. However as it will be targeting the
masses, it may prove to achieve economies of scale.

40. Wealth Tracking advanced
 Overview
 A wealth tracking solution that tracks all of the different
securities types so that there is one integrated tool that
tries to track them and give real time reports on equities,
funds, Cash, fixed funds, commodities, gold etc…….

41.  Identifying target market segment
 The market segment will be the distributors who have a
large HNI base. And who cater to varied portfolios
 They can be
 Investment Advisors
 PMS providers
 Banks
 MF distributors and equity brokers

42.  List of existing service providers
 There is at least one service provider for this product,
however all this information can only come out of a big
house such as CRISIL or other large players.
 Thus this product is not as roboust as it can be and thus
CRISIL will have a great advantage over its competitor.
CRISIL can do better than them because they are on a
smaller scale and do not have any name in the industry,
which is an advantage that CRISIL can abuse.
 The product is named WealthE Office from Redvision.

43.  Product Positioning
 Product will initially be positioned in the premium space
as it is going to be unique. However, once the premium
space is saturated, the positioning can be done in the
other segments.
 Product Pricing
 High price initially to recover the research costs
(distributors who deal with 5cr+ portfolios) and once that
market is saturated, they can concentrate on other
segments.
 Premium pricing (75,000 to 150,000 initial)
 20-25% subsequent years as it helps in loyalty of the
client and they will not shift.

44. Thank
You