T R Soma Sundar: Encouraging Financial Independence Through Mutual Fund Investments
T R Soma Sundar
Promoter
With over 26 years of experience in financial planning, Soma Sundar has witnessed the transformation of the investment landscape and the evolution of investor expectations. His expertise spans from wealth creation to wealth management, emphasizing the importance of asset allocation, liquidity, and risk profiling. His thoughtful approach to portfolio management has allowed him to build a strong, loyal client base, while continuously adapting to the changing needs of the market.
Soma Sundar’s focus on financial literacy, his commitment to staying updated with industry trends, and his forward-thinking strategies to grow assets under management (AUM) exemplify the kind of leadership that can lead mutual fund distribution firms to success. As he looks to the future, his vision is to not only maintain trust and reliability but also cultivate the next generation of investors and financial advisors. His leadership serves as a model for others in the industry, aiming to create lasting financial impact. Let’s read on.
With over 26 years of experience in financial planning, you've been guiding individuals in crafting personalized savings and investment strategies.
What are some of the significant mile -stones you've achieved along the way?
With decades of experience in the field, I've witnessed investors evolve from wealth creation to wealth management. As their portfolios have matured, expecta-tions have adjusted to a more realistic target of around 12 percent post-tax returns. Our longterm, carefully curated portfolios have consistently delivered this level of return, and now our focus has shifted towards emphasizing asset allocation, liquidity, and ethical investing. Risk profiling at the outset has been crucial in helping clients remain committed to their investments and benefit from the power of compounding. Our current goal is to ensure that the next generation of clients becomes equally invested in our services, with an aspiration to build a client base of at least 500 crore pathi investors.
What key factors do you consider when assisting clients in constructing a high quality mutual fund portfolio and making tax-efficient investment decisions?
Strategic asset allocation is crucial for effective portfolio management. Regardless of age, equity exposure should range from a minimum of 20 percent to a maximum of 40 percent of annual savings, with any higher allocation requiring careful monitoring to reduce overall portfolio risk.
This equity exposure can include direct equities, mutual funds, and ULIPs. Fixed income investments, such as PF, PPF, and fixed deposits, must be incorporated into long-term portfolios, with a preference for hybrid debt funds rather than pure debt funds. Our goal is to create a holistic approach to portfolio management. When selecting mutual funds, we focus on the brand reputation, fund manager’s expertise, and service quality, limiting the portfolio to a few select funds across different categories and fund houses.
How do you manage risk and determine the guidance you offer to clients?
With decades of experience in the field, I've witnessed investors evolve from wealth creation to wealth management. As their portfolios have matured, expecta-tions have adjusted to a more realistic target of around 12 percent post-tax returns. Our longterm, carefully curated portfolios have consistently delivered this level of return, and now our focus has shifted towards emphasizing asset allocation, liquidity, and ethical investing. Risk profiling at the outset has been crucial in helping clients remain committed to their investments and benefit from the power of compounding. Our current goal is to ensure that the next generation of clients becomes equally invested in our services, with an aspiration to build a client base of at least 500 crore pathi investors.
Our current goal is to ensure that the next generation of clients becomes equally invested in our services, with an aspiration to build a client base of at least 500 crorepathi investors
What key factors do you consider when assisting clients in constructing a high quality mutual fund portfolio and making tax-efficient investment decisions?
Strategic asset allocation is crucial for effective portfolio management. Regardless of age, equity exposure should range from a minimum of 20 percent to a maximum of 40 percent of annual savings, with any higher allocation requiring careful monitoring to reduce overall portfolio risk.
This equity exposure can include direct equities, mutual funds, and ULIPs. Fixed income investments, such as PF, PPF, and fixed deposits, must be incorporated into long-term portfolios, with a preference for hybrid debt funds rather than pure debt funds. Our goal is to create a holistic approach to portfolio management. When selecting mutual funds, we focus on the brand reputation, fund manager’s expertise, and service quality, limiting the portfolio to a few select funds across different categories and fund houses.
How do you manage risk and determine the guidance you offer to clients?
The risk factor is always a key focus. Mutual funds inherently carry significant risk due to the volatility of the stock markets. There is no such thing as a completely safe investment in mutual funds, whether in equity or debt funds. However, risk is managed at the portfolio level by limiting equity exposure. During challenging times, we support our investors by reinforcing their commitment to stay invested and weather the ups and downs.
What strategies do you implement to promote a culture of financial literacy within the organization?
We stay updated through continuous reading, engaging in discussions, browsing relevant information, attending seminars, and participating in AMC meetings. These activities play a vital role in keeping us informed about industry developments. Additionally, we also learn a great deal from the valuable insights shared by our investors.
How do you stay updated with ongoing industry trends to guide your organization toward the future, and what are the future goals and destinations you aim to achieve?
To stay updated with industry trends, I actively network with other MFDs and regularly visit key platforms such as SEBI, NSE, AMFI, and mutual fund house websites. Looking towards the future, my goal is to be a reliable, honest, and trustworthy advisor in all matters of money, free from bias. I aim to create a base of a thousand HNIs and attract the next generation of our current clients as long-term patrons. Additionally, using compounding as a business strategy to double our AUM every six years is a key focus. I also encourage young individuals to pursue careers as IFAs/MFDs. The future holds numerous opportunities, some of which we may not even foresee yet, so it's important to stay open-minded.
T R Soma Sundar, Promoter, Shilpa Associates
A financial planning expert with over 26 years of experience, T R Soma Sundar leads Shilpa Associates in Bangalore. He is dedicated to crafting personalized investment strategies, emphasizing asset allocation, risk management, and promoting financial literacy to drive sustainable client growth.
What strategies do you implement to promote a culture of financial literacy within the organization?
We stay updated through continuous reading, engaging in discussions, browsing relevant information, attending seminars, and participating in AMC meetings. These activities play a vital role in keeping us informed about industry developments. Additionally, we also learn a great deal from the valuable insights shared by our investors.
How do you stay updated with ongoing industry trends to guide your organization toward the future, and what are the future goals and destinations you aim to achieve?
To stay updated with industry trends, I actively network with other MFDs and regularly visit key platforms such as SEBI, NSE, AMFI, and mutual fund house websites. Looking towards the future, my goal is to be a reliable, honest, and trustworthy advisor in all matters of money, free from bias. I aim to create a base of a thousand HNIs and attract the next generation of our current clients as long-term patrons. Additionally, using compounding as a business strategy to double our AUM every six years is a key focus. I also encourage young individuals to pursue careers as IFAs/MFDs. The future holds numerous opportunities, some of which we may not even foresee yet, so it's important to stay open-minded.
T R Soma Sundar, Promoter, Shilpa Associates
A financial planning expert with over 26 years of experience, T R Soma Sundar leads Shilpa Associates in Bangalore. He is dedicated to crafting personalized investment strategies, emphasizing asset allocation, risk management, and promoting financial literacy to drive sustainable client growth.