With a view to bring more transparency and ethical business practices to the wealth management business, Motilal Oswal Private Wealth Management launched an Advisory Index and Dynamic Synthetic Index. These indices would be customized to its individual clients based on their advisory mandate. Advisory Index is a measure of the moving value of a client’s portfolio, across asset classes that capture the impact of all the critical components of advisory that fulfills clients’ goals and objectives.
"This index makes the advisor not only responsible for his advice, but also for the end performance of clients’ multi-asset class portfolios,” said AV Srikanth, CEO, Motilal Oswal Private Wealth Management.
The components of active advisory are tactical asset allocation views, manager selection, risk management framework, tactical product ideas and strategies.
Dynamic Synthetic Index is a benchmark created based on changes made in model portfolios at asset allocation level or based on changes in instrument level. "Whenever there will be any change in model portfolios with respect to change in asset allocation or with respect to change in any underlying instrument, changes should take place in respective benchmarks of all instruments in the portfolio, thus tracking this index is critical to showcase the effectiveness of firm level advisory," said a statement by Motilal Oswal.