A clear objective, good governance and a shrewd business sense are required to script success.
FAMILY OFFICES, OR FOs, are becoming increasingly popular. These are primarily set up to preserve family fortunes, but they also focus on non-financial goals such as education or philanthropy. However, there must be a clearly defined objective for setting up a family office, and the entire family should be aligned with it. Globally, family offices are set up by ultra-high-net-worth families with an investible corpus of $250 million (₹1,664 crore) or more. In India, this amount could start from ₹ 100 crore.
A Single Family Office, or SFO, can be set up to look after the assets of one family, and the financial goals would include evaluating investment avenues and monitoring investments and cash flows. An SFO could be run by a member of the family or by a professional CEO. Having a family member at the helm would probably ensure greater control over investments, but the people involved need to consider whether the family member is the best person for this task. Consequently, the family member is often assisted by a team of professionals or he/she supervises a professional or a team. Things work out well when the entire family is united for a purpose, and the SFO reflects this unity of purpose in its investments policies. It could also prevent conflicts due to disagreements on investment choices. After all, the risk-return trade-off is an area of much debate and concern as the perspective varies widely from person to person.
Denne historien er fra June 03, 2018-utgaven av Business Today.
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Denne historien er fra June 03, 2018-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
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CORPORATE - Calling to Account
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EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
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"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
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HIT THE GROUND RUNNING
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TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS