Manage Your Wealth

Appropriate asset allocation is a critical element of your investment plan. We work with you to allocate your assets in accordance with your spending needs and desire to pass wealth on to future generations and philanthropic causes. The better we understand the intended uses of your wealth, the more accurately we can align your portfolios risk and expected return characteristics with your goals.
We implement your asset allocation through a combination of proprietary and third-party investment strategies chores in one common objective—preserving and growing your wealth.

Asset Allocation Process

At MJ Wealth (MJW), investment teams provide asset allocation recommendations for a range of client types, and our relationship teams use these recommendations as a starting point to combine our best thinking with investment and wealth planning advice tailored to the needs of you and your family.

Our Fundamental Investment Principles

Active Management: We believe all markets are inherently inefficient and that through careful selection, investors can generate excess returns with lower risk of permanent capital loss.
Bottom-Up Fundamental Research: We invest in strategies that conduct rigorous fundamental analysis to project each potential investment’s value.
Long-Term Focus: We believe that the surest path to generating attractive investment returns is to patiently wait for the realization of an investment’s value without being swayed by short-term market volatility.
Unique View of Risk: We believe that the biggest threat to your financial health is not market volatility; it is the permanent loss of your capital. We believe market volatility provides opportunities to acquire high-quality assets at a discount to their valuation.
Discipline and Patience: We are patient investors. We hold cash when nothing meets our investment criteria, and we have the conviction to sell when an investment no longer offers acceptable returns relative to its potential for loss.

Portfolio Construction refers to a process of selecting the optimum mix of securities such as stocks, bonds, mutual funds, and money market instruments, for the purpose of achieving maximum returns by making minimum risk or loss

There are well known two approaches to portfolio construction :

(a) Traditional Approach & (b) Modern Approach

Traditional Approach of Portfolio Construction :
Under this approach, the financial plan is evaluated with regard to the client needs in terms of income and capital appreciation and appropriate securities are selected to meet those needs.

It consists of five basic steps :

(1) Analysis of constraints: It involves analysis of constraints of the investor within which the objectives will be formulated. The constraints may be decided on the basis of:

Income needs – Investors need for current income (to meet living expenses) and constant income (to offset the effect of inflation)
Liquidity needs – Investors preference for liquid assets
Safety of Principal – Safety of principal value at the time of liquidation
Time Horizon – Life cycle stage and investment planning period of the investor
Tax Consideration – Tax benefits of investing in a particular asset
Temperament – Risk bearing capacity of the investor

(2) Determination of objectives: It involves formulation of objectives within the given framework of constraints. Constraints reflect the risk bearing capacity and income requirements of the investor. Some common objectives of investors are:

Current Income
Growth in Income
Capital Appreciation
Preservation of Capital

All objectives cannot be achieved simultaneously, hence if an investor`s objective is capital appreciation, he must be ready to invest it securities that have high risk in order to get high returns.

(3) Selection of Portfolio: The optimum asset mix for an investor depends upon his investment objectives.

(4) Risk & Return Analysis: It involves analysis of risk and returns involved in following a particular course of action. Major risk categories that an investor can tolerate are determined and efforts are made to minimize these risks to get expected returns.

(5) Diversification: It involves assigning relative portfolio weights to different securities on the basis of which the portfolio is diversified. Diversification is done on the basis of investors need of income and his risk bearing capacity. Industries that correspond to specific goals of the investor are selected, out of which few companies from each industry are chosen on the basis of its growth, profits, dividend, R&D, expected earnings, goodwill etc. Finally, the number of different stocks required to give adequate portfolio diversification are selected and the number of shares of each stock to be purchased are determined depending upon the size of portfolio.

Modern Approach of Portfolio Construction

he modern approach of portfolio construction also known as Markowitz Approach emphasizes on selection of securities on the basis of risk and return analysis. The financial plan of an individual is audited in terms of risks and returns and efforts are made to maximize expected returns for a given level of risk.

Unlike traditional approach which considers an investors need for income or capital appreciation as basis for selection of stocks, the modern approach takes into account the investors needs in from of market return or dividend and his tolerance for risks as basis for selection of stocks. Returns are usually measured in terms of market return and dividend and form the basis of selection of stocks.

Ten to Fifteen stocks are selected after thorough analysis and expected risk and return is computed for each stock. Stocks with good return prospects are selected and funds are appropriately allocated among different stocks according to the portfolio requirements (risk & return) of the investor.

An investor may adopt an active or passive approach to manage his portfolio. Under passive approach, the investor holds the securities for a previously established holding period while an active approach involves continuous assessment of risk and return of securities and replacing low performing securities with high performing securities over time.

Note : Not more than 10 Funds and 15 stocks are selected after thorough analysis and expected risk and return is computed for each fund / stock.

Family offices face challenges that distinguish them from other entities. They may face challenges which, if not addressed, can reduce wealth and jeopardize family unity or have the potential to derail the family’s legacy.

Some of the most common challenges faced by business families are :

General transitions and divisions in family cohesion threaten sustainability and continuity.
As per a recent survey 87% of family business owners have not chosen a successor, choosing a discrete successor is less important than having a succession plan.
In a low-interest-rate environment, it is difficult to preserve and grow family wealth over generations. Professional management is needed
The tax and regulatory environment varies throughout the world and is constantly changing.

Whether you are creating a family office, separating an office from the family business or enhancing an existing office, we deliver seamless advice and service through all phases of development and execution. And we do so with an emphasis on long-term sustainability and legacy preservation.

MJ WEALTH will act as a one-stop solution platform to assist clients in the development of their own Family Office structure. Our service is a holistic solution that incorporates the key services of: Asset Management; Consolidation & Reporting; Direct Investments; and coordination of the Family Office set-up with best-in-class service providers (including but not limited to legal, tax and trust professionals).

We want the family office to support the strategy and legacy of your family. A family-owned business often strives to find a good balance between professional management, responsible ownership and a healthy family dynamic. A family office can take the weight off family members by delivering professional services and management of many business and personal needs.

Creating a successful family office requires strategic planning and design. With decades of experience, we can prepare you for each step of the way – from assessment and visioning to work plans and implementation. Together, we can help you design a strategy to manage the complexity that comes with a family-owned business.

India has turned into a splendid investment destination for Non Resident Indians (NRI) and persons of Indian origin (PIO). A growing & robust economy, a strong Rupee and profitable companies have together ensured that investors get maximum returns from both equity and debt markets. India, being one of the large economy in world with GDP growing at 7%+ pa, highly transparent and automated stock exchange and a resonant mutual fund industry have ensured that investments are liquid and transparent. Taking advantage of this environment and our proven experience in the market, MJ WEALTH offers entire gamut of financial planning and advisory services to NRIs and also provide additional services such as tax filing in India.

Investment Avenues

The following investment avenues are available for the Non-Resident Indians in India
NRIs are permitted to invest in Government securities through primary dealers.
NRIs are permitted to purchase non-convertible debentures of Indian Companies, Fixed Deposits with Public Limited Companies, commercial papers issued by Indian companies, bonds issued by Public Sector Units (PSUs).

NRIs are permitted to invest in mutual funds both on repatriable as well as non repatriable basis. There is no limit for investment in domestic mutual funds.
NRIs can make investments in shares and convertible debentures of Indian Companies both on repatriation and non repatriation basis. This is provided the company is not involved in plantation, real estate or agricultural business. NRIs can make investments both in the primary as well as secondary market.

General permission is available to a NRI, being an Indian Citizen, to invest in immovable property in India, provided funds are if from outside India or through NRE/ FCNR accounts. NRIs / PIOs can freely rent out their immovable properties, without seking any permission from RBI.

NRIs are now not permitted to invest in bearer securities like Indira Vikas Patra/Kisan Vikas Patra, National Savings Certificates , Public Provident Fund, RBI Bonds, Senior Citizen Savings Scheme 2004. Investment already made, if any, shall persist.

Extent of Tax Liability:
Based on the residential status of a tax payer and the place where the income is earned, the income that is included in the total income is as under:

Double Taxation Avoidance:
Since a resident is liable to pay tax in India on his total world income, it is possible that he may have to pay tax on his foreign income in that country also. To avoid such a situation the Government of India has entered into agreements for avoidance of double taxation with different countries.

Gone are days when women were confined to homely cores. Today women are moving neck to neck with their male counterparts in all walks of life. This made us to open World of wealth for Women (wow)

World of Wealth for Women is committed to engaging and supporting women as they create and manage wealth. We provide women with investment, planning and philanthropic resources derived from decades of experience through work with our private banking clients. 3W aims to cultivate a community, where women can share experiences with each other and give advice to new generations of female leaders.