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Anand Rathi Wealth Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Established in 2002, Anand Rathi Wealth Limited (ARWL) began as an AMFI-registered Mutual Fund Distributor. Additionally, they extend their financial services to NRI clients through a Dubai-based representative office.

  • According to 'The Wealth Report 2022: Knight Frank' the number of wealthy individuals in India is projected to rise from 7.97 lakhs in 2021 to 14.07 lakhs in 2026, with a compound annual growth rate of 12%. This offers a significant growth opportunity for the business, potentially achieving a year-on-year growth of 20% or more.

  • In FY 2022-23, our revenue grew to ₹558 Crores (31% increase from ₹425 Crores in the previous year). The PBT margin rose to 41.5% (up from 40.1% in 2021-22), resulting in a significant PAT increase to ₹169 Crores (33% rise from ₹127 Crores in the prior year).

  • The Asset Under Management (AUM) experienced an 18% annual growth, totaling ₹38,993 Crores, driven mainly by a 19% increase in mutual funds.

  • We sustained robust client growth, adding around 1,270 client families in 2022-23. Additionally, we expanded our team by incorporating 22 new Relationship Managers (net basis) during the year.

  • In 2022-23, we accomplished a minimal RM attrition rate of 1.4%. Our strong client retention skills also led to a low client attrition rate of just 1.1% in terms of AUM lost during the same period.

  • Leveraging a data-driven strategy, we've consistently adapted our offerings to align with client requirements. We accomplished diversification in sourcing Non-Principal Protected Structured Products (Non-PP SPs) from new issuers. Our capabilities have enabled clients to attain desired returns while maintaining a balanced risk and liquidity profile.

  • Anand Rathi is well-positioned to capitalize on this trend, and our growth will be driven by four key factors: Increased AUM through return on investment Expanding within our existing base of 8,300+ client families Acquiring new clients Onboarding new relationship managers

  • Considering the collective impact of these four growth engines, achieving a business growth of 20% or more seems quite reasonable.

  • Total AUM 100% 47% Equity Mutual Funds 12% Debt Mutual Funds 28% Non-Principal Protected Structured Products 13% Other Products

  • We've identified an underserved, valuable HNI segment (₹5 Crores to ₹50 Crores net worth) that prioritizes quality over low-cost solutions.

  • Our expertise and a standardized, research-based approach drive value growth. Approximately 51.2% of our clients fall within this range, with over 17% transitioning from ₹5-50 Crores to above ₹50 Crores. Around 31.8% are under ₹5 Crores, some yet to allocate their full portfolio to us.

  • Our objective is to achieve a corpus growth of 2x in about six years and 4x in approximately twelve years, aiming for a 14% p.a. return surpassing HNWI inflation of 7.5%.

  • Our portfolios target this goal with risk levels notably lower than benchmark indices. Additionally, we establish Private Family Trusts to create liability-free assets, safeguarding clients and their families against external risks.

  • From 17 market instruments, we strategically choose 3 (Equity Mutual Funds, Debt Mutual Funds, and Non-PP SPs) based on Returns, Risk, and Cost for a straightforward portfolio with desired returns.

  • Anand Rathi Wealth Limited manages approximately ₹37,950 Crores in assets under management (AUM) for a clientele of 8,352 individuals both in India and globally with an increase of 1,270




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