Anand Rathi Wealth Ltd
NSE:ANANDRATHI
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
Financial Services
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Mastercard Inc
NYSE:MA
|
Technology
|
| US |
|
UnitedHealth Group Inc
NYSE:UNH
|
Health Care
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Walmart Inc
NYSE:WMT
|
Retail
|
| US |
|
Verizon Communications Inc
NYSE:VZ
|
Telecommunication
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
2 513.35
4 522.1
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Mastercard Inc
NYSE:MA
|
US |
|
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Walmart Inc
NYSE:WMT
|
US |
|
|
Verizon Communications Inc
NYSE:VZ
|
US |
This alert will be permanently deleted.
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Anand Rathi Wealth Limited for Q4 and FY '22 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Anand Rathi, Chairman and Promoter. Thank you, and over to you, sir.
Thank you, Rutuja, and very good afternoon, ladies and gentlemen. Welcome to our earnings conference call for the first time after listing for the full year results and obviously, the quarter 4 results. We welcome you all. I'm very happy to inform that I also am joined by our senior management team; Mr. Rakesh Rawal, who is the CEO; Mr. Feroze Azeez, who is the Deputy CEO; Mr. Jugal Mantri, who is Group Financial Officer; and Mr. Rajesh Bhutara, who is the CFO of the company.
As you must have seen, our results have been very good. And the way we'll proceed, Mr. Mantri -- Jugal Mantri will brief you about the results, which have already been present in your hand. And then it will be followed by question and answer. And all my senior colleagues would be very happy to -- Mr. Rakesh Rawal, Mr. Azeez, Mr. Mantri, Mr. Bhutara to take all the questions which you have in mind.
So thanks once again for joining us. And over to you, Jugal.
Thank you very much, sir. Good afternoon to all. So I'm happy to share that the company and its subsidiaries all have posted robust performance for the financial year March '22, backed by the accelerated growth across businesses. Our revenue for the year ended 31st March 2022 stood at INR 426 crores as against INR 279 crores in FY '21, registering a growth of 52% compared to the same period last year.
Our EBITDA for the year stood at INR 177 crores, registering a growth of 155% as compared to INR 70 crores during same period last year. Our EBITDA margin that is very healthy, it stood at 42.4% in FY '22. Profit after tax for the year stood at INR 127 crores registering a growth of 184%, as compared to INR 45 crores during the same period.
Our quarterly revenue, EBITDA and PAT stood at INR 115 crores, INR 46 crores and INR 35 crores, respectively, registering a strong growth of 49%, 216% and 239% over same period last year. The basic earnings per share for the company for financial year '22 stood at INR 30.49. The return on equity, which is 1 of the most important parameter that stood at healthy 41.7% for financial year '22.
The company has declared a final dividend of INR 6 per share, which is subject to approval of the shareholders. Earlier, the company has declared and paid an interim dividend of INR 5 per share. So all put together, the dividend for the financial year FY '22, if it gets approved, it will be INR 11, that will translate to 220% of the face value of share.
Going forward, with broad-based recovery throughout the economy, improved market condition and growing awareness of a dedicated wealth management advisors, we expect an increased inflow of funds and consistent growth in our AUM in the coming quarters.
With this, we will now open the floor for question and answers.
[Operator Instructions] The first question is from the line of Madhusudan Kela from Mk Ventures.
Brilliant set of numbers to you and your team. You have lived beyond the promises, which you made at the time of IPO. So congratulations on that. Anand ji, I had 1 simple question. We continue to generate substantial cash in the business. And of course, the business doesn't require money. And we are seen by international examples that buyback is a far more effective way than dividend in overall wealth creation for all stakeholders.
So will you -- A, will you consider buyback as and when the company becomes eligible? And B, generally taking what kind of quantum of profit we can expect to be distributed by the company in -- over the next 2, 3 years, let's say if you make INR 100 profit, what kind of distribution can happen?
Thank you, Madhu, for the compliments. And I think in accordance with the policy to reward shareholders, obviously, we will definitely consider the buyback option at the appropriate time depending on the -- when we are eligible, how much funds are available. And looking at the requirement of funds of growth, obviously, we would like surplus funds to be used for the rewarding shareholders from time to time.
And obviously, the timing and quantum will depend on the situation because we would like company to grow and any investment in growth will be -- required will be done. We'll also look for opportunities for acquisition of small businesses if possible. So our whole idea is obviously to grow the company as much as better as we can do and also to reward the shareholders. And I hope our shareholders with this decision, which you have taken even to increase our dividend -- lastly, we paid INR 5; this time, we have made INR 11. I'm sure the shareholders would be happy with the decision of the Board. And thank you for your suggestion.
The next question is from the line of Rohan Mandora from Equirus.
Congratulations on good set of numbers. Sir, just 1 question was, in terms of, as you commented right now, you will also look at some acquisition opportunities. So if you could highlight to which lines of business would you be evaluating those incrementally?
It would be in the wealth management only. I think our idea is to be focused only on the wealth management business.
Sure, sir. Second one, sir, in terms of the AUM movement, like we have given in the presentation last quarter, if you could share how much of it was coming from new clients, existing clients and MTM, some color on that?
Yes. Rakesh sir?
New clients [Foreign Language] Rajesh Ji, do you have that number readily available? Or we can then -- if we don't then we can separately give an answer for that.
We had an inflow of about INR 2,700 crores in new inflow in the last financial year. And out of that, 50% was from the existing clients and about the same has come from the new set of clients.
Okay.
Sure, sir. And another question was in terms of -- see, in the marketing debentures product that we do, in case, some client wants to exit prior to the maturity, are there any prepayment charges that are levered on that? Or how does the transaction work? If you can give us some clarity on that?
Feroze, do you want to take that?
Sure. So when there's a premature withdrawal, what happens is, we -- since it's our ongoing business, we sell it to another buyer. So -- and there's no redemption charge if that's what you're alluding to, Rohan? Is that your question, right?
Yes. So then no redemption charges? Okay.
Correct. Yes. But they'll be -- because we buy it and then we house it and sell it, we may have some margin in terms of when you're selling. So some degree of trading margin will be there, which generally is levied on the buyer rather than the seller.
Got it, sir. And sir, in terms of the new client acquisition run rate, like last year it was around 988 and this year, net additional you have 973. So like, how should we bring the run rate going ahead? What is the run rate currently and what is the expected run rate going into FY '23 for new client acquisitions?
Feroze?
Yes. Yes. So we -- of course, when you run a business like this, there's something called a critical mass. I think the run rate would increase. If you look at the number of RMs, we expect 0.7, 0.8 per month per RM, new acquisition. That's our target. So are we heading there? The answer is yes.
As you have larger number of satisfied clients, who spent a reasonable amount of time, your reference is shoot up. Of course, after the pandemic, it has been close to 1,000 all 3 years, 800, 980 and again, 1,000. But do we see this space increasing? To my mind, yes, there could be a 50% growth in the pace in this year because there is a large visibility of business like ours gets after listing. And that creates some degree of momentum in terms of acquisitions, and that's what we've seen in the second part of the last year after we've been listed.
Sure. And sir, the 0.7 per RM, per month client acquisition would be for certain vintage of clients that we are targeting, beyond a certain vintage or across the RM pool?
No. See, if you have 271, so if I take 0.7, then I'm speaking of 200 clients, gross. So 150 clients per month is our target. That's our target. Will we get there in a year, 2 years, the answer is yes.
And lastly, would it be possible to share -- so you're seeing something?
Yes. I was saying, there are 2 sets of RMs. One are the ones who have crossed the INR 40 crore mark. Those we call them as qualified RMs. So there, we would look at least 0.7 this time.
Got it, sir. And lastly, would you be possible to share the quantum of MLD issuances during the year issuance?
Jugal ji, quantum of MLDs issued.
See the quantum was more or less same what it was in FY '21. It was about INR 2,800 crores. And largely, even these issuances were renovation sort of where the people have redeployed their money where they have received out of redemption.
[Operator Instructions] The next question is from the line of Senthilkumar from Joindre Capital Services.
As there is no response, we'll move to the next question, which is from the line of Kartik Sahni from Omidyar Asset Management.
I just have 1 question. So your share of mutual funds is now around 46%. Can you give us a target of, say, down the line 3 years?
The target for the next 3 years is to try and get to 50% of income from mutual funds.
All right.
And with respect to the assets, that's the 46% number you're referring to. In terms of assets, it will be 55%, 60%. In terms of revenue, like Rakesh sir mentioned, 50-50.
So Kartik, even the number of the amount which you are referring of the mutual fund that is only the equity mutual fund amount. In fact, the total share of the mutual fund assets in our AUM is 58.3%. So 46% is on the equity mutual fund sales.
The next question is from the line of Senthilkumar from Joindre Capital Services.
Am I audible, sir? Hello?
Yes. Yes. You are audible.
Mr. Senthilkumar, please go ahead.
Congratulations to the team for the good set of numbers, and thanks for the opportunity. I have 2 questions. First one is, given the current uncertain market environment on account of various macro factors, we foresee an increase in MLD business, as it offers a downward production to investors, because I see a fall in other security contribution, which includes MLD AUM from 35.28% in FY '22 to 29.15% in FY '21. Can you please throw some light on that sir on future outlook of MLD business?
Feroze, can you take this? Hello?
Hello. Sorry, there was some disturbance. So I couldn't hear the question correctly. If you can go again with the question, it will be very helpful for me to give you a point in answer to it.
Yes. I just want to know the future outlook of MLD business because now I can see that the other security contributions was declined from 35% in FY '22, to 29% in FY '21. Now given this uncertain environment -- market environment, how do you foresee some increase in MLD business going forward?
See all our decision with respect to allocations of mutual funds, structured products, as we call them MLDs is dependent on the macroeconomic variable and the client objective. Like just previously, we were discussing that our equity mutual fund moved from 39% to 46% and our MLD moved from 35% to 30%, that's because beginning of the year, we thought that the client objective can be better met with 5% moving from MLDs to equity mutual funds.
And since we use a very standardized, very oriented, all of our RMs are aligned and oriented in 1 direction, all of it happens together, that's why you see 5% reduction in MLD and a 5%, 7% increase in the equity mutual fund. That's the top-down recommendation from our model portfolio. So that's the heartening thing that whatever we decide on the model portfolio actually becomes a reality in the assets.
Now coming to the question of what do we see as the future of the MLD business, MLD business of 30% to 35% helps us maintain the standard deviations of 8%, 3-year standard division. So this 1/3 component is what I think will be a reasonably stable recommendation plus or minus 5%. So 30% is on the lower side, 35% is generally on the higher side, given our track record of 6, 7 years.
Now a large portion of MLDs, which have been sold 3 years back, 4 years back, come to maturity and 78% to 80% of our gross mobilization comes from maturities and repeat buyers. And with that kind of marketing momentum, which has developed over the last 10 years, will the business capitalize on it over the next 10 years? The answer is yes.
Understood, sir. And my second question has been already answered.
The next question is from the line of Devesh Agarwal from IIFL Capital.
Good afternoon, everyone, and thank you for the opportunity. Firstly, congratulations for a good set of numbers and beating your own guidance. I think you already did mention about this number, but I missed that. The MLD contribution of the gross mobilization for the year, is the number INR 2,800 crores? Is that what you say?
Yes, that's what Jugal informed us, yes.
And for the fourth quarter, how much would that be?
Jugal ji?
So for the fourth quarter, the gross mobilization was about INR 760 crores.
Understood. And in terms of, sir, the tenure for this product, have we seen any change versus FY '21? Are we selling more of 5 years? Is that what we can assume?
That's right. It's more 5 years than 3 years. Yes.
Right. And we had started selling even third-party MLDs. Is there any progress or any numbers that you can share on?
Yes, definitely we say, progress, in fact, about 35% or you can say 1/3 of the new sales has happened of the third party only. 2/3 is of the Anand Rathi Global and 1/3 is -- about that is of other party.
And sir, the duration remains the same 5 years, even for the third-party products?
No. The third party is 3 years and the other 1 is 5 years.
Understood. In terms of your guidance that you have given for FY '23, I think you're forecasting a 22% growth for your AUM. So can you just give you a broad color which are the segments, what kind of growth are you looking for in FY '23?
Well, to my mind, it's going to be proportionate. Why? Because the strategy is proportionate. Hello?
Yes, I'm listening sir.
Yes. So if I have new monies coming in with an objective of earning 12% to 13% return, that has an allocation of a certain proportion to equity funds and sudden proportion to MLDs and debt. So the new monies will get allocated in the same proportion. So the 22% is going to be a sense the same 22% for all the categories.
Understood. Okay. And sir, any targets for the RM addition for this year?
RM addition for next year, again, we are looking for about 40 to 50 people again.
40 to 50 people. Perfect, sir.
The next question is from the line of Franklin Moraes from Equentis Wealth Advisory.
So in your underlying assumption of around 22% AUM growth. Could you assume the industry also to grow at a similar level?
Well, I don't think we are looking away from the perspective of the industry. We are saying that, hey, given the new monies that we get when we acquire clients as well as existing clients is what kind of new monies they can bring in. And therefore, this whole thing is built bottom up, and our estimate on that is therefore, 22%, 23%.
Okay. And if I look at the AUM in proportion to the client, it appears to be that the average ticket size of the clients is reducing over the last maybe 3 years or so. So could you tell us like what was the average ticket size at origination 3 years back and what it is current?
Rajesh Ji, what is the number? Feroze [Foreign Language]
So firstly to the point before the numbers, Rajesh ji, you could pull out the numbers. Firstly, the average client size is not reducing. When you bring in a new client, your base of number of clients is increasing. When you get a new client, it takes 1, 2, 3 years of credibility building for you to penetrate into one's balance sheet to the extent of 50%, 70%, 80%. When a INR 10 crore balance sheet commences with you with a crore, it doesn't imply that he's got just a crore to give you.
So you going to balance sheet upwards of INR 5 crores, INR 10 crores, INR 15 crores, INR 20 crores, but the people commence with INR 1 crores, INR 2 crores. So as you expand your new client base, if you look at averages, without means, median, modes and stuff, it might be a little -- arithmetic mean might be a little deceptive number, right?
So that's why you see, as the client base increases, the average ticket size is coming down. But if you bifurcate 3 year plus clients and then see average ticket sizes, it will be reasonably good to see a growth in the average ticket size.
Feroze bhai, you have rightly said, Mr. Franklin, in fact, if you look at the AUM, what we had in FY '18. Our AUM was about 15,000. And we had a total number of clients, those were about 3,300. In fact, the average at that time was also INR 4.5 crores. So it is in fact commendable that in spite of doubling the number of registered clients -- a number of active client families, we have been able to maintain the average AUM per client family at almost the same level.
So that is really commendable and it goes very well what Feroze bhai has said.
So I was like -- the AUM also will have a certain portion of the profits also which we would have got built into over the last 3 years. So I was just trying to adjust -- adjusted for the profit or the increase in AUM that would have happened. That number would have -- just if you look at in crores, probably that number would have come a little bit lower. But as you rightly said, probably, as the new clients get added, incrementally, the average price for the new client is a bit lower compared to the ones for the existing plan, which is probably why -- on an aggregate basis, if you look at the average, it would appear to be a bit lower.
But my follow-up question on this is how long does it take for the client to reach that maturity level in terms of providing large part of this -- or rather shifting a large part of this portfolio?
Feroze?
Okay. So if you have to the -- if I told you the average time taken, I think credibility gets built in 3 years. So if a person has spent 3 years and seen 1 cycle of 3-year investing, the credibility goes up and then penetration becomes relatively easy. So that's why we see below 3 years and above 3 years more clearly in terms of our client bifurcation. So -- but most of them start with 10%, 15%, 20% of their balance sheet. Don't start with 60%, 70%, 80%. And over a period of 10 years, the -- you become a sole advisor.
So 3 years, 7, 8, 9 years to become a sole advisor and 3 years to penetrate upwards of 50%, 70% of one's balance sheet. Because as long as you have created clear expectations, and then you meet those expectations, clients are very, very happy to give you a larger chunks of their balance sheet because it gets them to be more relief for that 3 years and 7 years, 8 years. Does that answer?
Yes, that's really very helpful in terms of understanding in that. Next question is in terms of your -- I mean, largely, we are oriented towards mutual funds, both debt and equity. But I mean if you see clients are more preferring or rather they want to diversify into the nonmutual fund oriented kinds of businesses at an industry level. So are we making any steps towards diversifying our revenue sources as well?
Feroze?
Okay. So firstly, we are not oriented to mutual funds or MLD for any product. Our orientation is to the client objective. There's a little difference. There is a subtle different. So our objective -- our client objectives is what we are oriented towards. And what is the simplest way to achieve that objective. If that happens through equity mutual funds, 45% MLD, 30%, then that be it. So that's point one.
Point two, of course, clients have this inert desire, especially looking at several products being offered from a crypto to private equity to LCDs of real estate developers. So there is a lot of digression, which is there in the marketplace in the form of product offering.
When you -- when you're meeting 7,000 clients, one-on-one as a private banker or a private wealth manager, you influence their thought process over 10, 12, 15 meetings. So once the client is designed to think in a certain way, he filters out most of the product himself or herself, for example, if today, if you pushed our client, somebody who has gone through a lot of learning curve, a specific product, you'd asked you the question, what is the return? What is the standard deviation? What's the cost as an expected return ratio?
So all those 5, 6 filters throw out several product distractions, and helps our client overcome the former sentiment here of missing out sentiment, which he feels when he sees a new attractively entertaining product. So that's how we try and handle that distraction.
Okay. Last question is on the trail revenues. So we've seen the trail revenues as a percentage of total revenues increasing for this current year. But going forward, how should we look at this trail revenue, if you could just give some understanding in terms of how to get and understand this.
Feroze again.
Okay, sir. So like Rakesh sir already mentioned that our target in the short term itself is to have 50% trail revenue from mutual funds and 50% all others put together, largely MLD. So that's our target. That's 1 way of looking at it. Second, we always have this aspiration to cover our HR costs and certain dignity of fixed costs using trail revenues. So to answer your pointed question, 50-50 has a proportion of other revenues and mutual fund trail revenue is our target, we must be there in the next year or 2 years.
But as a percentage of total revenue, will this share increase? Or will it be the same now?
Total -- 50-50 was a percentage.
Of the total revenue.
Yes, of the total revenue.
And the total revenue.
Okay.
And that's why you see last year, when we were very determined to increase our trails, you've seen a 71% growth in the revenues from trail. The overall revenue growth has been 56%, but the trail revenue growth has been 71%, which implies that we are heading towards our target of 50-50.
The next question is from the line of [ Pranav Gala ] from i-Wealth Management.
Yes, am I audible?
Yes. You are.
Sir, just want a certain understanding on our MLD business. So how does that...
Sorry to interrupt, Mr. Pranav Gala, your voice is not clear, sir.
Is it audible now?
Yes, now it is. Please go ahead.
So yes, I just want to certain understanding on our market-linked debenture business, sir, how does that basically work when it comes to our system. I mean, we have an RM and a client, the client gives us money? And how does the process flow sir?
No, no. I think Feroze has explained, that the client, firstly, we look at his balance sheet, he fixes an objective of 12% to 13% return after which we tell him that how we can get that 12%, 13% return by putting monies in a certain proportion in equity funds, some in debt and MLDs. He finds that particular mechanism attractive. And then depending on what his balance sheet is, he keeps filling in the gap of putting money in equity funds and MLDs.
Right. So I mean -- so when you say the clients are, say, 50% in equity and 50% in MLD, so he will be having opening his own accounts and putting his money as -- whatever you have, whatever the RM has suggested. Is that understanding correct sir?
Okay. So therefore, for the MLDs, he opens a demat account and sends a check to the company to ARWL and then the MLD is credited to his demat account. Does that -- is that what you want to ask?
Yes. So on the -- so once the MLD is credited to this account. So then there are -- what is the risk associated with MLD towards? Hello. Am I audible, sir?
Yes, sir. Yes, you are.
So sir, I was just asking that based on the MLD side, once the MLD is credited to the clients' account, what is the risk associated to the client as well as to us?
So what is the risk? It's lying in the demat account. I don't understand the question. Any security lying in a demat account is lying in a demat account? What is the risk -- what specifically do you have in mind?
No. Sir, there are certain loans taken and loans given on our balance sheet last year. Is that related to MLD?
No, no, no. Jugal Ji, would you like to answer that?
No, no, there is no loan which is attributable towards the MLD business. As Rakesh ji has clearly outlined that in case if the client agrees to the strategy of investing into MLD, okay, based on that the book is being created and the Anand Rathi Wealth limited purchase the MLD from the issuer and resell it to the client. So there is no risk associated with this MLD business in the books of Anand Rathi Wealth Limited, the reason being we have simply sold the securities.
And ultimately, the owner -- the beneficial owner fees as well as any risk which is associated with the instrument that will be in the books of the MLD holding. So there is no risk associated with it will be there in the balance sheet of Anand Rathi Wealth Limited. Is that make it clear to you?
Yes, yes, yes. This is what I was asking. This is basically saying that once the buying of MLD is done from our end for the client it is being credited to their account. Once that has happened, the risk entirely goes to the client, there's nothing on the books of Anand Rathi Wealth Limited.
[Operator Instructions] The next question is from the line of Agam Shah from [ Praj Trading ].
Can you briefly talk about your digital initiatives? The 2 things which you have been doing like the OM -- OFA, Omni Financial Advisor and Digital Wealth. Can you just briefly talk about the 2 initiatives?
Can I answer that, Rakesh?
Please sir, please.
So I think the 2 initiatives are obviously long-term initiative to cover the different segment of clients, which are not covered in the wealth. So digital wealth management primarily is meant for mass affluent category, where people obviously want to invest and based on the online -- build the entire proposition is online. The investments can be done online. The rebalancing can be done online. So it's basically a digital wealth management plan where people can do themselves without any assistance from the RM.
And that's why because for mass affluent, it is a cost ineffective to have senior RMs, which are doing wealth management. And that's why this is -- this has been treated. And right now, it is being sold through the various independent financial advisors to their clients, but independent financial advisors understand our platform and try and distribute to them. But obviously, the entire investment, the AUM is of the company.
The other product which we have OFA, which is a technology platform for the small independent financial advisors, who don't have their own technology-based support. So it's a subscription-based product, which we give and we have more than 5,000, 5,300 independent financial advisors who have bought this product from us. We service this product. It helps them to -- it's a white labeled for them. And in their own name, they send their reports to their clients. There's a client app, which they can do. And therefore, the idea is to help IFAs to acquire more clients providing the technology platform which they themselves are not able to do.
And primarily, obviously, it is intended for the retail investors. And there is an increasing traction on both the products. And hopefully, in the long term, this will also grow and be pick up big businesses.
So the OFA front. So is that the financial advisor would be selling only Anand Rathi product or...
No, no, no. Actually, we are only giving a technology platform. It's a subscription base. We are not selling any product through our eyes.
To the financial advisors that...
It is like you buy Tally, for example, so it's like a technology platform and product which is designed to be used by any financial advisor so that their entire transactions of mutual funds are fully recorded in the system and then whatever reports they want to send it to their clients, they can send it. The clients can use the app, which is again part of our services, so he can open the app and see any data which is related to the investor.
Ladies and gentlemen, due to time constraints, that was the last question. I would now like to hand the conference over to the management for closing comments.
Thank you. Rakesh would like to make any comment?
Thank you very much for coming in and joining. And we tried to answer all your questions to the best of our ability. And I want to say that, hey, we will continue to endeavor to do our best for our very, very esteemed shareholders. Thank you very much once again. Thank you.
Thanks, everyone.
Thank you very much all the participants. In case if you have any further query or if you need any clarification, please either you can reach our Investor Relationship head, Mr. Vishal Sanghavi; our CFO, Mr. Rajesh Bhutara, our strategic growth advisor who is helping us on IR front. Thank you.
Okay. Thank you. All right.
On behalf of Anand Rathi Wealth Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.