Zara provides investment advisory services on your entire portfolio of assets like equity, debt, precious metals, etc. Our basic advisory process, given stepwise, is as follows:
Step 1 Risk profiling: Involves the need to formulate an updated risk profile, which takes into account your current life situation and goals, after doing an elementary exercise of determining your risk tolerance (age, experience, etc. that determines your risk-taking attitude) and your risk capacity ( horizon, goals versus the amount of funds etc., i.e. the ability to take the risk ). The risk profile is like a country’s constitution that determines what you can or cannot do if you want to reach your stated goals while being reasonably comfortable with the risks undertaken.
Step 2: Determining asset allocation: The outcome of step 1 is an appropriate allocation in various asset classes and proper exposure to sub-asset classes as per risk assessment ( for example, within equities, a highly conservative risk profile would entail being exposed primarily to large capitalisation equities, while a higher risk profile should preferably take multi-capitalisation exposure).
Step 3 Benchmark determination: To further the process, we choose an appropriate benchmark to help evaluate each asset class’s performance in your portfolio regarding desired risk and return goals.
Step 4 Security selection: This would involve picking securities within your asset allocation basket that align with your risk profile to generate reasonable returns with a margin of safety.
Step 5 Tracking and reviewing: Tracking is done (without Zara’s liability) on a third-party automated and security-certified online platform with minimal intervention while allowing you to update any changes you have carried out. This ensures you and your advisor are on the same page simultaneously, making reviews and suggestions transparent and quick.
Zara aims to be on the client’s side by bringing deep knowledge of a business/ security to bear on the portfolio and avoid conflict of interest situations( by not offering execution of deals). This is possible due to analysis of available information and not privileged access to information (that borders on insider information).
If you are in sync with our investment philosophy and have more than Rs. 1 crore (10 million) of liquid assets (equity, bonds, fixed deposits, etc.) for which you seek advice, you may call on us or perhaps want to save until you reach that level where following our advice would be worth your time and our efforts. If you need help to get there, write to us. We will be happy to educate you on the easiest and cheapest path to saving a decent sum; after all, Zara Investment Advisory is committed to creating a more prosperous society through education and wealth creation.