au fait - "an Intellectual Companion to enrich your quality of life"
au fait investment advisory services more focused on real estate investments. au fait manages the fund of the investor in real estate asset class. We manage the investment in real estate sector on the basis of in depth study by expert team. Our professional experience in investing, development, corporate finance and real estate advisory enables us to contribute meaningfully to our investors and clients. Detailed knowledge and study with right approach can only reduce the risk of bad investment.Information and detailed research are the keys to all decisions; we collect information from all across the respective real estate opportunities for this purpose itself.
Real Estate Portfolio Management
Real Estate Asset Class Investments provides unmatched opportunity to create a robust real asset portfolio (residential / commercial unit diversified over different micro markets) through long term financial planning taking into consideration factors such as financial objective, leverage and risk appetite, age group and so on. The asset portfolio so created over a period of time can be capitalized by an investor towards superior and smarter financial planning to appropriately take care of critical events of his life such as Retirement, Child Higher Education Medical emergencies, untoward events and so on. The table below demonstrates the fact that earlier an investor initiates planning financial goals of his life, better it translates into improving his quality of life through creation of substantial incremental capital. INR 2.29 crores incremental wealth is created by investing modest initial capital of INR 8 lakhs @ 20% over a period of 20 years rather than just @12%. Further, it can be seen that such incremental capital is whopping INR 6.27 crores in 25 years. au fait expertise lies in delivering Investment Vehicles to realize Return on Investment exceeding 20% p.a. The table below aptly illustrates the au fait Value creation preposition.
Table demonstrating Incremental Capital created vide " High Yield Investment Vehicle"
(Initial Capital Investment of Rs. 8 Lac only)
Service Apartment | Office Space | Retail Space
Regular Monthly Income Cum Capital Appreciation
Financial Independence by way of regular monthly income can be achieved through real estate asset class investments such as Service Apartment, Office Space and Retail Space. Further, an investor is also entitled to capital appreciation which is dependent upon market forces. Investors can take long term view on such investments to create a regular source of stable income as well as capital appreciation.
The table below clearly exhibits the edge that real estate asset class provides in terms of ROI (Return on Investment) over other investment products.
Service Apartment, Office Space and Retail Space have their own market dynamics of risk and return. The investor depending upon his investment preference and risk appetite can choose the right investment vehicle for himself
The world no longer views real estate as a narrowly-defined local industry after the 2007 global financial crisis triggered by the sub-prime mortgage market meltdown in the US. Rather, the real estate industry now plays a pivotal role in the global financial market and the world’s economic health. Deregulation and integration of global capital markets, growth of emerging market economies, demographic trends in developed economies, and geopolitical and socio-cultural changes across the world are presenting immense opportunities for international real estate investments in a fascinating, complex and inter connected market place. Globally, there are inherent challenges in the area of real estate investing which may be summarized as:
• Transparent, Reliable and Consistent Data for Real Estate Investments.
• Policies, Governance and Standards.
• Structured Finance Sourcing.
Amidst aforesaid inherent challenges, we have designed a broad base risk management framework deploying our extensive expertise in the area of Risk Management spanning over varied industries. Effective Risk Management framework plays an integral role and is a core element of Investment strategy. As a risk management practice, our investment objective is to have very minimal level of capital security risk. Thereby, we advise the projects which have majorly macroeconomic level and not project execution level risk. Project level risk assessment is based upon past performance, current market perception and company internal information garnered through market intelligence.
Striking right balance between the drivers of expected return on investment and risk events that may be deterrence enables us to crystallize right investment vehicles for our investors.
Methodology for Risk Assessment Management includes Risk Event Identification, Risk Quantification and ascertaining its Risk Response.
Investing in real estate asset class is investing in a set of assumptions regarding potential of the future capability. The assumptions invested in are economic as well non economic factors which are market related, policy related, and project specific that forms underlying basis of value of asset in present as well as future terms. Any event that possesses the potential to adversely impact the set of assumptions is a risk event. We have classified the Risk Events broadly into three categories taking Top Down approach:
Our risk assessment framework is depicted in the diagram below:
There are numerous options are available for investment in all type of asset class. To decide whether an available option is right opportunity depends on the outcome of systematic study facts. au fait expert team never compromise on this, and this ensures capital security and better return on the investment.
A taxable real estate transaction is considered to occur in the year in which title or possession to the property passes to the buyer. Long term capital holdings are usually taxed at long term capital gains rate. Valuation and tax planning as to maximize the return and minimize the tax burden on investment need professional handholding. au fait expert team able to manage and advice in a way to maximize the return on one hand and also ensure applicability of taxation provision to minimize the tax burden along with adhering the provision of taxation and other applicable laws.
au fait is a professionally managed wealth management company for high net worth families. We are working only for those individual, families and corporate who values the importance of managing their fund with professional expertise.
Most of the service provider works on the model of commission agent and into the business of selling the different financial and investment product on commission basis. au fait is working for only those clients who can differentiate or understand the significance of professionally managing their fund versus just buying or selling the financial and investment product from any commission agent. Managing an investment requires a lot of expertise and experience.
It is rightly said by the, Warren Buffett” the most successful investor of 20th century, “Honesty is the very expensive gift, Do not expect it from cheap people”. We cannot risk the hard earned money just for saving on brokerage on buying from commission agent. Some extra cost of managing the risk before investing and keeping an expert eye for the invested period is much less than the net profit one will make as return on investment. Capital security is of course kept as most important factor in any investment decision.
Moreover our clients understand the importance of following associated services in the process of managing their fund:-
1. Professional fund manager for taking into account the long term objective.
2. Personalized transaction process services before investment and post investment.
3. Real time information sharing about the investment.
4. Managing bank funding if required.
5. Leasing Services for real estate investments.
6. Taxation matter and other legal matters.
au fait list of clients includes, Doctors, CA’s, Corporate Senior Executives, Senior Government Officials, other professionals and business families.