Post on 07-Feb-2017
HO US ₹ Financial Consultants Pvt. LtdYour Personal Financial Strategist!
© Copyright 2016
Expect the best, Plan for the worst, and prepare to be surprised! - Dennis Waitley
Investor Presentation
A complete solution provider for the Personal Finance Industry
Founded in Feb 2009, HO US₹ is based in Pune and currently serving 150+ satisfied customers with an annual retention of more than 80%
Pioneer in the ‘fee based’ unbiased Financial Planning space
To create and sustain awareness about the need of comprehensive financial planning to a large cross section of the society, help them to evaluate and select the various financial instruments as per their needs, and protect them from making irrational financial decisions.
About HO US ₹
Founder’s profile:
Chenthil R. Iyer , B.Tech (Mech.), Certified Financial Planner
13 years in Personal Finance domain10 years of coaching aspiring financial planning practitioners8 years of building own practice and helping other planners set up their practicePassionate about touching millions of lives positively to take control of their financial lives
The personal finance industry in India is highly unorganized
A large majority of intermediaries are product pushers and hence highly biased in their advice
The philosophy and process they follow for financial planning are inefficient
The more efficient Open Portfolio Philosophy is cumbersome for financial planning professionals to implement
without an appropriate Technology Platform and Knowledge Support
Professionals find it difficult to create a recurring revenue stream through periodic review
Strict SEBI guidelines are slowly eroding the commission based income of intermediaries,
prompting them to become ‘Fee based’ and ‘unbiased’ advisors
Intermediaries/professionals find it very difficult to acquire ‘fee based’ clients whereas prospective clients find it very
difficult to get ‘unbiased’ advisors! – There is no platform connecting the two entities.
The problems (opportunity) in the Personal Finance Industry!
HO US ₹ can become the UBER of financial planning in India, with our unique technology platform connecting
Trained, Unbiased professionals with clients looking for ‘fee based’ financial planning service We at Horus work on demand as well as supply side of financial planning i.e. generating fee paying clients as well
as training consultants on our unique Open Portfolio Philosophy and process The combination of our strong Technology Platform and the unique Philosophy and Process help Associate
Consultants to generate a recurring income through their professional practice SEBI ‘s increased involvement towards investor awareness will give the natural tidal wave to launch
the business massively Continued revenue through software subscription fees even in the event of disassociation by the
consultant Non linear scaling using Robot Advisory Model, which is similar to the ‘self drive’ concept in which clients can directly
peruse our technology platform to create their own financial plan.
How our Business Model will solve the problem
HO US ₹ Business Model
Enables Feasibility study – a sophisticated sanity check of inflows vs outflows across the client’s life time
Cash Flow Analysis engine which performs complex calculations taking into account several parameters such as inflation, growth in income, amortization etc and helps us create multiple feasible scenarios
Detailed investment portfolio recommendation with proper Asset Allocation and ongoing support for market sensitive implementation
Accurate Insurance planning based on Essential Financial Goals
Intelligent Review process which leads to timely realignment of goals as well as rebalancing of investment portfolio
Easy to use and operate - enables speedy on boarding of consultants
Important metrics and specialized reports for the consultants & clients
All of the above increases the stickiness of associate consultants ensuring their long term association
HO US ₹ Technology Platform – The soul of our business model
How the rest of the world does Financial Planning?
•Goal 1Assumptive RETURN 1
•Goal 2Assumptive RETURN 2
•Goal 3Assumptive RETURN 3
Current Investment
Surplus
Goal Based Investment Tagging!
Disadvantages of this method:
Grossly inefficient as it does not perform a thorough feasibility study of all goals
Only those goals for which Current Investible Surplus is sufficient are planned for
Aspirations and luxuries get ignored due to perceived non availability of funds
Uses ‘assumptive return’ for calculations which may result in impractical investment amounts
Asset allocation is ignored as investments are locked for different time periods and therefore no periodic rebalancing happens of the portfolio
Open Portfolio Philosophy & Process enabled by HO US ₹ Technology Platform!
FEASIBILITY STUDY
for all goals with Life Cash Flows
Derive Required RETURNS
Suggest Open Investment Portfolio
Calculate Insurance Requirements
Periodic Review
Advantages of this method over tagging:
More efficient due to separation of goals analysis from investment instruments
Future free cash flows get accounted and enable inclusion of aspirational short/medium term goals
Enables appropriate asset allocation of all free cash flows/assets except certain long term locked in instruments such as PF/PPF
Enables periodic rebalancing of the portfolio according to investment performance and changes in investment environment
New Customer On boarding Avenues
Corporate Tie Ups
Investor Awareness Sessions
New Customer On boarding
Money Is Child’s Play
HO US ₹ Technology Platform
• Training Fee from Financial Planning Associates
• Financial Planning Fees from clients
• Corporate Intervention Fees
• Software Subscription Fees from Direct Clients & Financial Planning Associates
• Coaching Fees from Money Is Child’s Play participants
• Commissions from implementation of financial planning recommendations such as insurance, loans etc.
• SEBI’s Registered Investment Advisor Regulations
• IRDAI’s Regulations
Revenue Sources
Regulatory Requirements
.
For Consultants
• Exhaustive Technology Platform that enables seamless and easy to scale Financial Planning
• Qualified prospect leads through various initiatives
• Recurring and predictable income from customers, through periodic review
Our Differentiators
For Clients
• Comprehensive solution with the highly efficient Open Portfolio Philosophy
• Quality Assurance through Horus Technology Platform
• Dynamic Investment allocation for better alignment to life goals
• Unbiased financial advice• Periodic review ensures timely corrective
actions
HO US ₹ Equity Portfolio Performance over the last 8 years
2009 2010 2011 2012 2013 2014 2015-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
25.99%
16.25%
17.96%
22.55%
21.56%
22.92% 14.30%
13.60%
6.32%
5.75%
9.34%
8.15%
8.46%
-1.64%
Average CAGR for Horus – 20%, Sensex – 7%
HorusSensex
The graph indicates CAGR for investors from their respective year of entry till 14th December 2016
Associate Consultants Market
CFP/AFP (Certified Financial Planners) – approx 5000 Mutual Fund advisors – approx 50,000 Graduate Insurance Agents – upwards of 2,00,000 Chartered Accounts – upwards of 1,00,000 MBA students who wish to set up their own practice – upwards of 50000 every year
Financial Planning Clients Market
Resident Indians with yearly income of 10 Lakh+ – upwards of15,00,000 NRIs and PIOs in North America, Europe, South East Asia & Middle East – upwards of 50,00,000
Target Market
Milestone 1 (Years 1 to 3) –
Establish Pune market with 100 Associate Consultants and 4000+ clients as an urban city prototype Create a core team of 50 Consultants on Horus Payroll with 4000+ NRI/PIO clients Enroll 15000+ Direct clients through Horus Platform across India Enroll 3000+ third party consultants across India using only the Feasibility Study module
Milestone 2 (Years 4 – 5) –
Expand to 5 major cities in India with 1000 Associate Consultants and 50000+ clients Increase the core team of consultants on Horus Payroll to 200 with 20000+ NRI/PIO clients Enroll 50000+ Direct clients through Horus Platform across India Enroll 10000+ third party consultants across India using only the Feasibility Study module
Milestone 3 (Years 6 – 10) –
Expand to 20 major cities in India with 5000 Associate Consultants and 250000+ clients Increase the core team of consultants on Horus Payroll to 500 with 50000+ NRI/PIO clients Enroll 100000+ Direct clients through Horus Platform across India Enroll 20000+ third party consultants across India using only the Feasibility Study module
Road Map for HO US₹
Revenue and Profitability Projection for 3 years (Based on Milestone 1)
5 Cr.
Year 2Year 1 Year 3
15 Cr. 25 Cr.
1.5 Cr. 9 Cr. 16 Cr.
Revenue
Profitability
4 Cr.
12 Cr.
Investment to Payback in 3 years!
Investment Valuation
20% Stake @ ₹ 4 Cr.
HO₹US FINANCIAL CONSULTANTS PVT. LTD
• Venture has the potential to become the UBER of financial consulting market
• Matured and proven model with easy scalability
• High returns with the potential to triple your investment in 3 year period
• Matured balanced team
Why Should YOU Invest
Money is one of the most important subjects of your entire life. Some of life’s greatest enjoyments and most of life’s greatest disappointments stem from your decisions about money. Whether you experience great peace of mind or constant anxiety will depend on getting your finances under control.
– Robert Allen