Midas Finserve: Creating Wealth Together!

Rajesh Bansal,  Co-Founder & Managing Director

Rajesh Bansal

Co-Founder & Managing Director

The sustained economic expansion has created enough wealth over the last decade, boosting the prospects of wealth management business in India. The wealth management industry is now predicted to grow at 15-20 percent over the next five years. The boom in the industry is primarily driven by banks and selected wealth management entities who are utilizing the opportunities driven by a bullish market sentiment aided by mega shifts in savings patterns and maturing of the Indian investors. This has also led to more and more customers expressing requirements for investment products around different risk categorizations balanced with suitable advice. High networth individuals are increasingly opting for more evolved products like Alternative Investment Funds, Portfolio Management Services, Hedged Strategies, Private Placement, Co-Investing and Higher Credit Risk Exposure products. Customers have become more aware of the investment avenues in general and mature investors have also understood the correlation between distribution costs and the degree of complications in normal investment products. A trend has been seen where mature investors have moved towards lowcost investment or advisory/transaction fee based investment practices. Banks are playing a key role in changing savings trends to investment products and creating trust in customers to facilitate investments which are expected to continue. In a nutshell, the industry is generating great opportunities for entrepreneurs and investors.

"Midas relies primarily on mutual funds and ULIPS to create wealth for clients"

Amid this scenario, finance startups have found the perfect breeding ground to grow. These companies are faster, closer to new generations of customers and more flexible when change is needed to survive. One such name is Midas Finserve, an independent boutique Wealth Management firm shaped by seasoned professionals with the desire to excel with best in class research based advisory services. “We, at Midas FinServe, bring value to the investment process, not just at the initial stage but throughout the investment’s time horizon. We focus on adding significant value to the portfolio selection and review process including tax consequences of buying and selling various investment products and also develop strategies to minimize the tax,” speaks Rajesh Bansal, Co-founder and Managing Director.

Understanding that every investor is different and has different financial goals, tolerances to risk, different personal situations and different desires, the company strategically designs and monitors its clients’ portfolio to help them reduce their risk level and allow them to achieve their objectives. The focus while creating strategies for the clients is to match its Risk Return expectation. The approach is to give the best suited product to the client. “We always share with the clients that we are not here to provide the best product or to do product sales instead we are here to provide Investment Solutions as per requirement/investment goals,” he says.

A Business starts small!
The common thread of almost every startup story is a creative person who had a compelling idea and managed to spin it into a successful company or organization that continues to innovate. Midas, the brainchild of Rajesh Bansal, was created in 2016 to provide exemplary wealth management services to a handful of informed and astute clientele. “Money might not be everything in life but it is the most important factor in life. I am a staunch believer of this. This philosophy fuelled my attention towards the stock market and I took up a job in the Merchant Banking Division of a renowned company during the initial days of my career. I realized that a stock market is a place where one can make money intelligently,” enlightens Rajesh.

To understand the equity market behaviour through research reports and interaction with market participants of the financial market, Rajesh devoted considerable resource and time and made a fortune. Progressively, he realized that investors especially Retail can create wealth through their participation in Equity Market. He sensed the inevitability of educating people to manage money rather than picking illogical investment plans. Taking baby steps to better this, he began interacting clients on the value of securing life and health and creating a pool of investment for wealth creation. A simple thought to complex life became the driving factor that led to the foundation of Midas. During the last three years, the company has grown manifold both as a team and as a business. “Today, we take pride in being recognized both by our clients and industry peers as a firm with high standards of integrity and ethics.Presently, we are providing Wealth Management services to more than 1700 families and are managing assets of around Rs. 510 crores (as on 31st March 2019), out of which Rs. 360 crores are managed in Schemes of Mutual Fund and rest are in other Products viz., PMS (of Mutual Fund), ULIPS, RBI Bonds, NCD, Corporate Fixed Deposits,” he informs.
Midas relies primarily on Mutual Funds and ULIPS to create wealth for clients. The team strongly believes that Mutual Funds provide the best in terms of variety, liquidity, flexibility, professional fund management, transparency and tax efficiency. Also the New Age ULIPS scores better than Mutual Fund if the investment horizon is five years or more. ULIPS has advantage of insurance cover and also maturity is tax free. Most of the New Age ULIPS have No Charges except for Mortality and like Mutual Funds, ULIPS also have option to invest in Debt or Equity Schemes. ULIPS also provide load and charge free switch options from Debt to Equity or Vice Versa to ride the Ups and Downs of Markets. Other than Mutual Funds and ULIPS, the company helps investors with a tax efficient, short and longterm investment of their funds. Some of the strategies and offerings include Debt Instruments viz, RBI Taxable Bonds, Tax Free Bonds, NCD (Non Convertible Debentures), Corporate Fixed Deposits, Insurance Life Insurance, Health Insurance, General Insurance, PMS (Portfolio Management Services), Goal-Based Financial Planning viz. Child Education Planning, Marriage Planning, Retirement Planning, Tax Planning, Wealth Preservation and Estate Planning. Team Midas constantly strives to innovate or identify products strategy. They also engage in spreading financial literacy to the young population. The services proffered by Midas are directed to individuals, HNIs, MSME, promoters of companies, Charitable Trust, and Provident Fund Trusts at present.

Midas has come a long way and now is catering over 1700 families

The DoS and Don'ts of the Business
Every industry has its own set of challenges, issues that impede growth and prevent organizations from reaching their potential. The wealth management industry is no different in this respect. The challenges pertaining in the industry can be summed up as Compliance, FinTech, Changing Dynamics of Financial Products & New Dimensions of Market Corrections. Deeming Compliance to be an effective ingredient for long life of an organization, team Midas ensures that every process related to client servicing, advice, marketing efforts apart from Govt. Compliances are strictly adhered to. The company is equipped to provide hassle free seamless transaction facilities for all of the products that come under the umbrella of financial products using Mobile App or Webbased Technology. As a research-based organization using the proprietary system and analytical tools to analyze the market, Midas’ advisory tools help the team in right asset allocation based on the understanding of the clients’ Risk Rewarded expectations. “We have invested in technology to ensure that the web-based applications provide the latest portfolio valuations apart from automating back office for the clients. We have digitalized the documents for the clients and created repository for the clients for future use,” he avers.

Team Midas Finserve

Understanding the diverse preferences of individuals, the company has built an Advisory Board upon the realization of the important role Industry Leaders play in the mentoring and guidance of any upcoming professional services firm. To stay ahead of the curve, Midas has built strong capabilities in areas of product innovation, marketing strategies, market research & embracing technology in client servicing. The company envisions providing a ready to use platform for budding entrepreneurs who want to cater financial products to its clients.

The Success Saga
From a humble beginning of catering its services to 50 families, Midas Group has come a long way and now is catering over 1700 families. The initial setup of two team members has grown to 15 members’ team. It has successfully created its footprints in Chandigarh and has its presence in other cities through channel partners. The revenue has witnessed a CAGR growth of over 30 percent perannum in the last few years of operation. “We strongly believe that each investor has contributed to our success story and we consider them as our stakeholder. We believe that our Advisory Board is a value building team. They play an important role as trustees of our values encompassing integrity and ethics through effective governance,” he avers.

For the coming years, the company’s mission is to become a research based investment solution provider rather than being just a product selling organization. The team aspires to become one of the top 100 wealth management companies in India in the next three years. Besides, they have plans to set up a separate multifamily office structure for exclusive servicing promoters of the companies. “We are also contemplating starting concierge service to our clients. The concierge can help you organize a fairly wide range of financial services as well as provide advice, information and other assistance. To start with, we feel that concierge services in the field of Health Insurance/Medical Treatment will be appreciated by clients,” he concludes.

Rajesh Bansal, Co-Founder and Managing Director
Midas FinServe Pvt. Ltd. is the brainchild of Rajesh Bansal. Rajesh heads Midas and is responsible for its overall growth. He has spent the last 25 years in the Indian Financial Services Industry. An effective & committed leader with spotless integrity and passion with deep understanding of financial products having more than 25 years of vintage experience with Renowned Financial firms. Prior to co-founding Midas FinServe Pvt. Ltd. in March 2016, Rajesh had worked with TATA Mutual Fund, ING Optimix Pvt. Ltd. and Master Capital Services Pvt. Ltd. in various Senior Leadership Roles. He has also helped in setting up different businesses in the financial sector proving his entrepreneurial skills. His continuous dedication towards work has made him recognition in the Industry.

What’s Next?
“In my journey of last 25 years, I have become a firm believer of the fact that by behaving ethically, organizations can create competitive advantage, team retention, build reputation and also create legacy in the long term. Customers favor those organizations known for their ethical practices.Ethics compliant organizations develop a work culture, free from stress, which makes employees to feel happier and become more productive. If we concentrate entirely on clients’ interest, it generates loyalty for years to come. Especially my experience in the last 25 years of extreme volatility of Markets (Debt & Equity) has helped the organization to develop various models to mitigate risk and manage clients’ behavior in various Market Cycles. Understanding point of maximum financial risk and point of maximum financial opportunity is key to any Investment Processes. In the next ten years we aspire to be reckoned as an Important Family Member of our clients in relieving stress relating to financial independence and help them use resources effectively so that they get more out of life. We would like to see the Investor Confidence Index for us surpasses than a Bank,” Rajesh Bansal