Founded by a dedicated personal finance expert, Rich Roots Wealth empowers individuals and families to achieve financial well-being. The firm’s mission centers on an unwavering commitment to guiding clients through their financial journeys, ensuring they reach their milestones and fulfill their goals.
At Rich Roots Wealth, the team excels in analyzing clients’ financial situations, delivering customized solutions tailored to their unique needs. By adopting a comprehensive approach, they help clients navigate the complexities of personal finance, providing clarity and direction along the way.
Ethics lie at the core of the firm’s philosophy. Rich Roots Wealth emphasizes the importance of managing financial behaviors across various market cycles to secure long-term success. By addressing cognitive biases and promoting informed decision-making, the firm equips clients to overcome challenges and develop sustainable financial habits.
With its innovative strategies and personalized guidance, Rich Roots Wealth serves as a trusted partner in the quest for financial well-being, dedicated to helping individuals and families thrive.
In an exclusive conversation with The Interview World, Yash Kumar Bhatia, the founder of Rich Roots Wealth, articulates how his company distinguishes its offerings from competitors. He shares insights into the business model and clientele, explains how he assists customers in selecting the right mutual funds, and discusses bond performance while highlighting key parameters for consideration. Here are the key takeaways from his interview.
Q: With numerous organizations providing similar services, how does your company differentiate its offerings from competitors in the market?
A: When we launched Rich Roots Wealth, we identified several critical insights. First, the density of qualified professionals in India is alarmingly low, failing to meet the growing demand from the community. This shortage highlights a significant gap in the market.
Moreover, we discovered that the number of qualified personnel is even scarcer. Recognizing this issue, we positioned Rich Roots Wealth to fill this niche. Our mission is not to operate as a typical advisory firm that merely sells products. Instead, we focus on delivering comprehensive solutions tailored to meet the specific needs of our clients. By doing so, we aim to differentiate ourselves and provide real value in the financial landscape.
Q: Can you describe your business model? Do you primarily operate as a B2B or B2C company, or a combination of both?
A: Currently, we operate primarily in the B2C sector. However, we also engage in B2B initiatives, providing Investment Advisory Programs (IAPs) to corporate clients. This aspect of our business has established a niche for us. To effectively reach a broader audience, we recognize the necessity of engaging directly with consumers. This focus on direct consumer interaction is central to our strategy and aligns with our core mission.
Q: How many customers are currently utilizing your services or solutions?
A: We launched our motor insurance services three to four years ago, recognizing a significant gap in guidance for used car buyers regarding insurance options. Our extensive network in the used car market allowed us to address this need effectively.
Over the past four years, we have received an excellent response from the market, acquiring approximately 600 to 700 clients for our motor insurance services. However, as we interacted with our clients, we discovered that they were seeking additional solutions beyond motor insurance.
In response, we embraced a holistic approach and expanded our offerings to include digital solutions. This expansion enables us to provide comprehensive services that encompass not only motor insurance but also education planning, retirement solutions, and other financial needs. We officially launched this new segment in April of this year, and we are currently serving 60 to 70 clients seeking these additional services.
Q: Given that market research indicates mutual funds have not been as beneficial as other financial instruments over the last decade, how do you assess their value and guide investors in choosing specific mutual funds?
A: You may have encountered the MFI logo, representing mutual funds. While mutual funds are a viable investment option, many people struggle to identify the right ones for their needs. With 45 or 46 asset management companies (AMCs) and over 1,500 schemes available, individuals often resort to a “do-it-yourself” approach, randomly selecting schemes from various platforms.
To address this challenge, we have established a rigorous operational process for recommending schemes to our clients. We position ourselves not merely as mutual fund sellers but as solution providers.
Before making any recommendations, we conduct thorough assessments, including risk profiling and asset allocation. This systematic approach ensures that we recommend only those schemes that align with our clients’ unique financial goals and circumstances. By doing so, we provide tailored advice that empowers clients to make informed investment decisions.
Q: With the rise of new investment instruments, how do you view the current performance of bonds in the Indian market?
A: Bonds have demonstrated strong performance, particularly throughout the 1990s. However, their success is heavily influenced by interest rates. When interest rates rise or fall, bond performance fluctuates in response. In contrast, mutual funds are not as directly affected by interest rate changes.
Mutual funds are more closely tied to the broader economy and equity markets. If the economy is thriving and an investor maintains a long-term perspective, interest rates play a minimal role in the performance of mutual funds. This distinction underscores the fundamental differences between bonds and mutual funds.
Q: What specific bonds do you recommend to your clients as part of your advisory services?
A: Bonds represent a diverse investment category, including capital gain bonds, sovereign gold bonds, and other variations tailored to customer needs. For instance, individuals not interested in mutual funds—perhaps after selling a property—may opt for capital gain bonds.
Those seeking consistent income can choose specific bonds that offer regular dividends. Many investors prefer bonds for their stability and reliable returns, prioritizing safety and consistent income.
Conversely, investors willing to accept some risk and aiming for products that outpace inflation should consider mutual funds. These funds typically provide the potential for higher returns, appealing to those looking for growth in their investment portfolios.
Q: Given that some businesses in India have failed to meet their obligations when raising funds through bonds, what measures do you take to assess the security of a bond? What specific parameters do you consider?
A: Ratings serve as the most critical parameter when recommending bonds. We prioritize bonds with ratings of AA or AAA, as these indicate a high level of creditworthiness. Bonds rated below this threshold do not meet our recommendation criteria.
