Frequently Asked Questions
The fees or the expenses of the portfolio will depend upon the underlying assets and the instruments used to construct the portfolio. Typically, a portfolio designed for an aggressive investor with a 5-year investment horizon will include ETFs/ index funds, managed direct equity baskets, actively managed domestic and international MFs, money market instruments, debt MFs and alternative assets.
The cost of these instruments varies from 30bps or 0.3% to around 2% per annum. Thus, the total cost for the overall portfolio comes to around 1.2-1.4%pa. This is inclusive of our payment. We have seen that this overall cost of around 1.2%pa is normally 25% less than our prospective clients’ existing portfolio cost.
Please note that Jericho Ventures is empaneled with AMFI as a financial distributor. This makes us eligible to receive brokerage directly from the manufacturer but restricts us from collecting fees from the investor. To remove any conflict of interest with our clients and maintain utmost transparency we disclose every aspect of expenses payable for any financial instruments by our investors along with the brokerage that we may receive from the respective AMCs beforehand to our clients.
Please feel free to connect for any further clarifications.
SEBI or any other financial regulators do not allow us to commit any minimum guaranteed returns to investors. Additionally, the returns of a portfolio depend on a number of variables; some of them are-
1. Risk profile of the investor
2. Investment horizon of the investor
3. Asset classes or financial instruments used in the portfolio
4. Market cycle
But what I may apprise you is that our investment philosophy, process and the proprietary asset allocation algorithms help us to generate 12%-14%pa returns in base case scenario, that is, a portfolio may become double in 5.5-6 years. If we are lucky to see some extraordinary bull phases during our investment tenure, then the returns may be much higher.
We always prefer to invest in financial instruments where we see Free cash flow growth in the underlying businesses. This ensures two things:
a. Protection of capital during downturns
b. Substantial capital appreciation during bullish cycles.
Please feel free to connect for any further clarifications.
A Family office is a full-service, private, financial institution that offer a holistic resolution for preserving, managing, and growing the wealth of ultra-high-net-worth families or individuals.
High-net worth families are mainly focused on “building” their successful businesses to grow their wealth. In doing so, there is hardly any time left to take care of the increasingly complex financial needs that automatically arise with running a successful business or company. This is where the role of a single, or multi-family office comes in.
Family Office acts as a ‘One point of contact’ for all services related to wealth preservation, growth and transfer. They present a well-coordinated, collaborative effort by a team of professionals that provide integrated planning, advice, and resources needed in legal, insurance, investment, estate, business, and tax disciplines.
The most important point to remember while doing your financial planning is that you should not just invest to get high returns. It should be a continuous process with tracking and monitoring. Therefore, an expert financial consultant can help in using the latest technology to use tracking tools, as well as timely reviews in order to adjust your investments to yield the best results continuously. IT is important to have an expert, or a team of experts whom you can trust and be transparent with. Lastly, you should know that financial planning is not a short-term plan. It is a long tenured endeavor, and patience, discipline, and commitment is important to yield results. At Jericho, we are a dedicated family office focussed on helping you build, preserve, and accomplish wealth through all life’s stages, and even multi- generationally.
If the recent pandemic has taught us anything, it is that we are often not in control of everything, and hence it is risky to put all our investments in the same place. It is always a good idea to spread your investments across diverse platforms and areas so that you are not dependent on just one. So, even if
one performs badly, you can enjoy the profits offered by another. Examples of diversification can be buying a portfolio of shares spread across different companies, investing in mutual funds, as well as alternative investment opportunities like P2P Lending, or Fractional Real Estate. At Jericho, we offer
traditional investments like Mutual Funds, PMS, Capital Market products, as well as Alternative Investments like Structured Credit, as well as Fixed Income Investments like Gold/Sovereign Bonds, High Yield Bonds.
While we have not kept any minimum size to initiate the relationship, we would prefer each family to grow to a minimum of INR 5 crores in Assets under Management through us.
We believe investments done for a longer time horizon reap the power of compounding and generate greater alpha. Thus, an investor should have an investment horizon of 5 years or more.