Our business philosophy
We attempt to model our company on the following passage from Benjamin Graham’s ‘The Intelligent Investor’:
“The truly professional investment advisers are quite modest in their promises and pretensions. For the most part they place their clients’ funds in standard interest and dividend-paying securities and they rely mainly on normal investment experience for their overall results. In the typical case, it is doubtful whether more than 10% of the total fund is ever invested in securities other than those of leading companies plus government bonds, nor do they make a serious effort to take advantage of swings in the general market.
The leading investment-counsel firms make no claim to being brilliant. They do pride themselves on being careful, conservative and competent. Their primary aim is to conserve the principal value over the years and produce a conservatively acceptable rate of income. Any accomplishment beyond that they regard in the nature of extra service rendered. Perhaps their chief value to their clients, lies in shielding them from costly mistakes.”
Jason Zweig’s commentary on this passage is also worth noting: “What Graham modestly omits to mention is that good advisers keep safety high and returns expectations low, and generally deliver results far higher than they or their clients would have envisaged.”
Our customer satisfaction policy
We have no sales team. We have never had one. We will never have one. We do not solicit business. There never have been and never will be pesky calls from our office to anyone, much less unknown individuals, begging for business. We get references from our existing clients. We will not hesitate to terminate a business relationship with a client if the need arises. We do not do day trading, margin trading, derivatives and commodities. We do not entertain speculators. We have never done mutual fund New Fund Offers (NFO) even when the mutual fund NFO racket was at its height. We do not do equity Initial Public Offers (IPO) too. We do not churn mutual fund and equity portfolios. We do not charge for guidance. We welcomed the abolition of mutual fund entry loads. We do not collect flat mutual fund transaction fees.
Can a firm like ours exist without customer satisfaction?
Our service standards are very simple and have been consistent in the past. For us, the interest of the client comes first and last.
Our risk management policy
Our service standards are based on ethics. As former associate justice of the US Supreme Court, Potter Stewart stated, “Ethics is knowing the difference between what you have a right to do and what is right to do.”
For us, the interest of the client comes first and last. Our interest just does not figure anywhere in the equation. We therefore deal with our clients on a platform of ethics, fairness and promptness. All possible help will be given to clients who fit our client profile. We do not hesitate to terminate business relationships with clients who do not fit our client profile. What we look for are long-term, self-disciplined investors. We do not entertain speculators of any sort.
A customer can make a complaint either orally or in writing or by email, or by any other mode the customer chooses. In fact, in our meetings with clients, they are told to directly approach the director of the firm in case of the slightest problem they may encounter with their investments. Our system for redressing grievances is based on absolute fairness with a bias in favour of the client and follows the principles mentioned in the following paragraph.
If the mistake is ours, we will rectify it at our cost. If the mistake has resulted in financial damage to the client, the client will be compensated fully. If the mistake is entirely the client’s, it will be explained in detail to the client why we are not at fault. In this case it will be the client who will be responsible for the consequences of the mistake. We will not take it on ourselves. We do not believe in pampering clients. There may be a third situation, which is a grey area, where it may not be possible to identify whether the mistake is on the client’s part or ours. Such cases are treated as if the mistake was entirely ours and we are responsible for the costs and consequences.