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Zerodha's Nikhil Kamath-backed True Beacon looks at disrupting UHNI wealth management arena

Zerodha's Nikhil Kamath-backed True Beacon looks at disrupting UHNI wealth management arena

The financial services firm founded by Nikhil Kamath and Richard Pattle has launched a wealth management fund for ultra high net worth individuals; average fee charged by the fund would be under 1 per cent even as other funds typically charge in the range of 2-3 per cent.

Zerodha's Nikhil Kamath-backed True Beacon looks at disrupting UHNI wealth management arena Zerodha's Nikhil Kamath-backed True Beacon looks at disrupting UHNI wealth management arena

True Beacon, a Bengaluru-based financial services company founded by Zerodha's co-founder Nikhil Kamath along with Richard Pattle, has announced the launch of True Beacon Wealth, a fund aimed at ultra-high net worth individuals (UHNI). 

The fund will operate under a Portfolio Management Services (PMS) licence and will cater to entrepreneurs, individuals, families and institutional investors while managing their wealth across asset classes, including equity and debt. 

More importantly, the fund will look at disrupting the UHNI wealth management space by charging much lower fees compared to the other existing players in the segment. 

The fee, including all charges, would be under 1 per cent, said Kamath while adding that typically the fees in the UHNI wealth management segment is in the range of 2-3 per cent. 

We are looking to offer a clean, conservative and transparent experience to clients, he added.  

In terms of assets, Kamath expects the fund to reach a size of $100 million in the next one year with a mix of domestic and global client base. 

True Beacon was launched in September 2019 by Kamath and former Vice Chairman of Standard Chartered Private Bank, Richard Pattle. 

Building on their SEBI-regulated Category-III Alternative Investment Fund (AIF) products and client base, True Beacon Wealth is aimed exclusively at UHNIs.  

“We hope to make the industry more transparent, competitive, and enhance client service levels through deep and lasting relationships. Having launched three AIFs over nearly 3 years, True Beacon Wealth is the natural next step,” a release quoted Kamath.  

“It takes a holistic approach to the complex needs of sophisticated investors through active asset allocation, tech-enabled transparency, dynamic risk profiling, a highly competitive fee structure, and legacy and next-generation planning,” added the release.

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