Money & Banking

Edelweiss eyes over 35% growth in FY19

K R Srivats New Delhi | Updated on January 16, 2018

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Bullish on growth, diversified financial services major Edelweiss’ wealth management business eyes over 35 per cent growth in topline and AUM in 2018-19, a top official said.

“This fiscal, we are already growing at 35 per cent. We expect to increase the momentum next fiscal. The mass affluent segment is the fastest-growing in India, especially after demonetisation,” Rahul Jain, Head, Personal Wealth Advisory, Edelweiss Wealth Management, told BusinessLine here.

He expects the current trend of financialisation of savings to play out for the next five-six years and noted that Edelweiss as a full-fledged wealth management practice is now well positioned to ride this momentum.

Jain said Edelweiss Personal Wealth Advisory had recently launched margin funding product — SEBI MTF (Margin Trading) product for traders that could provide as high as 4X leverage on F&O stocks. There will be wider range of scrips for margin trading and over 600 stocks available to trade in margin trading, he said.

“The earlier version of margin products involved NBFCs and Banks for leverage. This is purely the broker doing it on his own,” he said.

Room for rejigging

As margin funding enables one to have more trading limits, one can spread the portfolio across a variety of shares. As a result of this diversification, investment risk of investor’s portfolio gets reduced.

Edelweiss Wealth Management, a leading player in the affluent and HNI side, is now aiming at pole position in the affluent space on the back of its recent acquisition of Religare Securities, which has brought 1.3 million clients and 2,000 qualified personnel under its fold.

“This acquisition helped us ramp up our clients base and people. We want to combine and become the biggest wealth management business on the affluent side,” Jain said.

Come end-March, Edelweiss Personal Wealth Advisory is also looking to launch a single integrated terminal for traders, allowing them to access both equities and commodities trading over a single common interface.

“In March end, we will launch a trading platform for traders. It will offer both equities and commodities on one screen. It will be feature-rich with lots of research and content,” Jain said.

Edelweiss has, since its launch in 2008 as an equity broking outfit, transformed itself to a full-fledged wealth management practice on the affluent and HNI side.

Open to acquire more

Jain also said Edelweiss was open to more acquisitions in the wealth management space if opportunities were to come its way.

Published on January 16, 2018

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