Very good afternoon, ladies and gentlemen, and welcome to 360 ONE WAM's Q1 FY 2025 Earnings Call. As a reminder, all participant lines will be on listen mode only. There will be an opportunity for you to ask questions after the management shares their thoughts. Should you require assistance during the call, kindly signal the host by tapping on the raise hand icon. Please note, this conference is being recorded. On the call today, we have with us Mr. Karan Bhagat, Managing Director and CEO, Mr. Anshuman Maheshwary, Chief Operating Officer, and Mr. Sanjay Wadhwa, Chief Financial Officer. I now hand it over to Sanjay to take this conference ahead. Thank you. Thank you, Anil, and a very good afternoon to everyone on the call today. Indian equities continued its bull run for yet another quarter, with benchmark indices touching all-time highs, supported by robust economic momentum, encouraging macro indicators, and sustained domestic flows. Strong GDP growth and capital markets expansion is accelerating the pace of wealth creation in India. As a result, we believe India's wealth and asset management sector is poised for a structural growth phase in coming years, supported by faster wealth creation outside of traditional pockets and overall low penetration. Before we deep dive into financials, we would like to highlight that the board has approved a second interim dividend of INR 2.5 per share for FY 2025. Now, coming to the business and financial numbers, starting Q1 FY 2025, we have reclassified inactive ARR assets to TBR assets. Post re-statements of our current and prior periods, our total ARR AUM increased to INR 221,000 crore, up 34% year-on-year. This growth was supported by strong net flows at INR 5,549 crore. During the quarter, flows rose by 70% on a Y-o-Y basis. Our wealth ARR AUM stood at INR 141,635 crore, up 39% year-on-year, while AMC ARR AUM stood at INR 79,652 crore, up 24% year-on-year. Our ARR revenues for the quarter grew by 16.8% Y-o-Y at INR 376 crore, led by growth in assets across business segments and healthy retentions on ARR AUM. Our ARR revenue, as a percentage of total revenue from operations, stood at 62%. Total revenue from operations is up 48% Y-o-Y at INR 600 crore for Q1 FY 2025. The quarter also witnessed strong transactional and brokerage income, mainly driven by opportunities in the private markets. Our large ultra-HNI client base allows us to capitalize on such opportunities, creating value for the clients as well as the firm. Total revenues are up 60.6% Y-o-Y at INR 697 crores for Q1 FY 2025, also supported by higher other incomes during the quarter. Total costs are up 25.9% Y-o-Y at INR 265 crores in Q1 FY 2025. The employee costs rose by 27.2% Y-o-Y, while other costs increased by 22.6%. As a result of higher growth in revenues, cost-to-income ratio has declined to 38%, as against 48.2% in Q4 FY 2024. In the long term, we expect the ratios to stabilize in the range of 44%-46%. Our operating profit grew by 71.8% Y-o-Y at INR 335 crores. An amount of INR 87.6 crores has been disclosed as an exceptional item, net of taxes, towards provision for full and final settlement pertaining to the ongoing litigation in the U.K. against 360 ONE entities. In view of ongoing litigation costs, which would have continued for another 4-5 years, it was prudent to settle the case to avoid further trial-related costs. Profit before exceptional item grew by 93.1% Y-o-Y to INR 432 crores. Post all exceptions, we are happy to report our highest-ever quarterly PAT in Q1. PAT rose by 34.2% to INR 243 crores, with tangible return on equity at 33.5%. With that, I would like to hand it over to Anshuman to cover key business and strategic highlights. Thanks, Sanjay, and good afternoon, everyone. At the outset, let me reiterate, we are extremely excited by the strong business performance of Q1, as reflected not only in the financials but also in the underlying input metrics of new families, institutional flows and fund pipelines, and new segment readiness. The last four to five quarters have been very interesting for the industry as well as us, both in terms of equity market movements and business trends. In this period, 360 ONE WAM has been able to showcase agility, resilience, and steady growth in all phases. We strongly believe that we have significant growth opportunities given the outlook on India and our leadership position in the relevant business segments. The competitive moats that we have built through our sharp focus on wealth and asset, including cutting-edge proposition, deep client relationships, continuous product innovation, and robust risk and governance, position us uniquely for these opportunities. As a testimony to our disproportionate attention to execution, we were able to clock strong growth in our client base in Q1 of FY 2025. We have onboarded additional 150+ clients with over INR 10 crore of ARR AUM with us, with a total client base of 7,400 plus clients having total AUM of INR 10 crore plus stand at close to about 3,000-odd clients, and that accounts for 94% of our total wealth AUM. Our overall net flows were very healthy, and they stood at INR 5,550 crore, of which wealth management net flows stood at close to INR 4,700 crore and about INR 900 crore in asset management. Our overall retention stood at 72 basis points. On the wealth management front, our overall retentions remained healthy and stable at 71 basis points. I would like to highlight that about 65% of the wealth management net flows has come into the 360 ONE Plus offerings at steady retentions. These trends give us confidence on our advisory mindset and client interest, which together gets translated to strong client stickiness. Our key focus area in this business remains to improve our client wallet share, expansion in new cities, and continuous enhancement of our digital capabilities to enable seamlessness for both RMs and clients. Of all the new hires that we did last year, folks are settling in well and starting to become productive as we speak. On the asset management front, despite planned outflows from our pre-IPO flagship fund, our flows remain healthy, with gross flows of over ₹3,500 crores. Having said that, the continued focus on deepening our channel presence in the domestic market, specifically through MFDs, is delivering positive results. The pipeline on our new funds, as well as new international institutional mandates, remains strong and will drive the next phase of growth for the business. Our asset management business gets further strengthened with Raghav Iyengar joining us as the CEO for the business. Raghav joins us from Axis Asset Management, where he served as the President and Chief Business Officer. Raghav's deep market understanding will help strengthen 360 ONE Asset's strategic direction and growth agenda, specifically working very closely with the investment teams to enhance our market presence as well as our products. On the HNI segment business build, we are enthused by the progress made over the last quarter. The proposition has been tested with a diverse set of potential clients. The platform is working well across the spectrum of products and services, and we are being able to bring together a range of innovations and industry-first features, collaborating with various ecosystem partners. We are also continuing to onboard a great set of talent from both internal as well as external sources, and are overall on track for a scale-material business build in this segment. On the global business, the focus has been on building robust proposition, products, and platform, and we are on track with all the key building blocks. We have a good pipeline of initial client discussions, and are well poised for the business to take off in H2 of the current fiscal year. On the new acquisition, we are very happy to announce the acquisition of ET Money, a unique wealth advisory-focused fintech. The acquisition aligns well with our approach to wealth management and completes the flywheel across client segments for 360 ONE. Subject to regulatory approval, 360 ONE WAM will acquire 100% of ET Money via a stock and cash deal. ET Money is one of India's biggest SEBI-registered investment advisors by number of clients and among the largest non-brokerage digital platforms for wealth management. It has 9,000,000-plus transacting clients with more than 1,000,000 revenue-generating users. It tracks an overall AUM of about INR 70,000 crores, and the AUM invested through its platform is nearly INR 28,000 crores, of which mutual funds constitute more than INR 25,000 crores. The platform has gross monthly sales of over INR 1,200 crores. These flows include SIPs of INR 450 crores plus and overall MF net flows of nearly INR 750 crores. Its unique investment advisory service, ET Money Genius, has more than 76,000 active paying advisory clients with an AUM of about INR 1,200 crores. The platform offers significant synergies with 360 ONE, potentially allowing us to significantly accelerate the monetization of ET Money's expanding client base through product ideas and innovation, strengthening of the core wealth proposition, and introduction of new services currently available with us. We believe together, ET Money can further strengthen its position as the wealth tech leader for the rapidly growing INR 10 lakhs to INR 1 crore segment. Lastly, we continue to take pride in the external recognitions received by our wealth and asset management businesses. We are very proud to be recognized as Great Place to Work 2024. We are also recipients of some prestigious awards like Best Domestic at FinanceAsia and Best Fund of the Year Equity at the Global Private Banking Innovation Awards 2024. With that, I would like to hand over to Karan and open the session for Q&A. Thank you, Anshuman, and thank you, Karan, for joining us. May I request you, in case you need to ask a question, kindly click on the raise hand icon. We have the first question coming in from Mohit Mangal. Mohit, kindly unmute yourself and ask your question. Yeah, hi. Am I audible? Yes, go ahead. Yeah. So thanks for the opportunity and congratulations on a good set of numbers. So I've got three, four questions. The first question is that, you know, on the transactional revenue, I believe like last quarter, this quarter also the number looked pretty high. So was it on the block deals or if you could give more color on it? Maybe, Mohit, if you can just put the 3, 4 questions together, I can answer it together, maybe. Okay, sure. So that was the first question. Second is that, you know, now that everything is calculated on active ARR assets, is it a fair assumption to make that, you know, that ARR retention you would basically target at around 70, 75 bps? So that's point number two. Point number three is basically in terms of the mid-market, you know, I mean, how has been the behavior and how has the client acquisition been, you know, now that we have actually spent some time on it? And lastly, in terms of the dividend payout, I believe that this quarter was a little lower, but I believe that 70%-80% dividend payout would be kind of maintained. Yeah, so those were my questions. Thanks, thanks, Mohit. Yeah, so I'll quickly answer most of them. Yeah, you're right. I think the TBR has kind of continued to be fairly strong from the previous quarter. I think it's a quick breakup of similar transactions to what we saw in the last quarter. So it's a combination of a little bit of increased brokerage revenue, but also a lot more activity on the unlisted side. And actually, the activity has also picked up a little bit on the credit side. So in some senses, the TBR is on the higher side, but it's across asset classes. It's not only restricted to equity. So, I think, you know, I think as we go forward for this year, I think I expect the TBR to be fairly strong, but a little bit of the enhanced interest on credit as an asset class, especially I think given the recent change in the budget where, you know, long-term taxation on bonds for individuals will be 12.5%. I think generally speaking, you know, the TBR income on bonds and credit will also become an active part of the active part of the desk for us. So again, no special mention of any specific transaction as such, but yeah, the TBR has continued to be high this quarter. I think obviously needless to say, it may not be as high as it has been in the last quarter and the current quarter don't necessarily continue for the full year. But I think just given the level of capital market activity right now, the TBR component continues to be fairly strong. On the active ARR side, you're absolutely right. I think 70-72 basis points is where the firm is kind of targeting itself to be. However, having said that, I think there are two things we'll have to remember on the active retention of 70-72 basis points. I think that includes a little bit of the lending revenues. So the lending revenue obviously will not go in the same proportion as the growth in the AUM on the active ARR. And secondly, also obviously the mix between the distribution and the advisory portion also has a little bit of impact on the final yield of 70-73 basis points. So while I'm very comfortable with the headline retention continuing to be where it is, I think the mix of business will be a function of three things. One is the mix of distribution as well as advisory assets, both giving us ARR. Second is the mix of the lending revenue. And thirdly is the mix of the size of the clients. And therefore, you know, the firm has a very, very important focus on the number of families also. But if we only end up getting large families, then obviously the retentions can kind of come off. So at a headline level, I think we're very comfortable with the 70%-72% basis points retention. I think just as a quality of mix of business, naturally, I think over a period of three to five years, that retention automatically comes down to around about 67%-68% basis points. So on the headline level, comfortable with where we are on the retentions. I think on a long, long, long, on the long model basis, I think just given the mix of business, retentions come down to 67 to 68 basis points. On the mid-market segment, you know, I think we're still in the mode where we've kind of pretty much seamlessly executed transactions on both the portfolio management side as well as on the alternatives platform as well as on the mutual fund side seamlessly on a digital mode. I think we are among the very first two to kind of execute transactions digitally for alternatives as well as for portfolio management, portfolio management transactions practically on a digital basis. We've ended up executing transactions of nearly, if I'm not wrong, close to around about $75 million-$80 million over the last quarter or so. We're feeling very, very comfortable with the platform. I think we also identified an initial team of around about 75-80 relationship managers to be able to kind of launch into that business. Our corporate team, product team, investment team on that business is absolutely set ready to go. I think we'll go stream online stream by the end of next week, we'll be pretty much in launch mode from a distribution perspective. So our hypothesis continues to be absolutely intact on the mid-market piece. And we strongly continue to believe maybe with initially we thought that it would be April this year, but I think July this year is when we'll, sorry, August this year is when we'll start monetizing this business. Lastly, on the dividend payout, you're right. I think a little bit of reduction on the dividend payout, but I think the broad philosophy continues to remain the same. It continues to be in the region of 70%-80%. I think we've kind of got it down a little bit largely on account of our slightly larger growth on the alternatives business. I think on the alternative side, we're now around about grown to on a mark-to-market basis close to around about INR 38,000-39,000 crore. And typically, I think 2%-2.5% of this AUM gets invested back as sponsor capital in the alternatives business. So I think that's kind of consumed maybe INR 150-200 crore extra over the last 6 to 12 months. And the NBFC has also kind of grown disproportionately, but that's not levered too much, so that's perfectly fine. So I think overall we've kind of maybe just reduced the dividend a little bit, but philosophically we continue to be in the region of 70%-80%, 85% of our profits as dividends. Right. No, I'm perfect. I wish you all the best. Thank you so much. Thank you. Next in line, we have Nitesh Jain. Nitesh, kindly unmute yourself and ask your question. First is on what is the trajectory on cost-to-income ratio? This quarter we have seen pretty low cost-to-income ratio. How should we think about cost-to-income ratio going forward? And second is any guidance on the net flows for the full year? Thank you, Nitesh. So So I think cost-to-income continue to maintain for the full year basis, I think closer to that 46%-47% number, which we've kind of started and guided towards last year for the current year. I think broadly speaking, you know, obviously this quarter the cost-to-income has kind of come down dramatically because of the enhanced revenues. Obviously, the good thing is we've seen a decent growth in the ARR revenues also, which obviously are going to kind of continue even irrespective of the broader capital market activity over the next nine or months. But I think without considering that enhanced capital market activity, I think we should end up at our projected cost-to-income ratios of 46%-47% for the year. I think all things being equal, we'd like to get that to 45%-46% next year. I think eventually as time goes by over the next 2 to 3 to 4 years, I think we would like that number somewhere to be in the region of 43%-45%. But I think our first target is really 45% on a steady-state basis and take it from there. So I think over the next 18-odd months, maybe 21 months, including 12 months of the next year, I think our first priority and first objective will be to try and see the cost-to-income at 45%-ish. On the, sorry, what is on the net flows, I think we continue to be in that zip code of around about 12%-15% of our opening ARR AUM as our net flow guidance. So I think our opening ARR AUM was around about INR 200,000 crore. So effectively 12%-15% of that would be in the region of INR 25,000 crore to around about INR 30,000-35,000 crore would be our net flow guidance number. Of that, obviously we are at around about INR 600,000 crore for the first quarter. So more or less in line, but you know, typically quarter three, quarter four on net flows, all things being equal, tends to be slightly better. So hopefully, you know, we can move our INR 5,500-6,000 crore of net flows towards the INR 30,000 crore number by the end of the year. Sure, sure. Thank you. That's it from my side. Thank you. Thank you. Next in line, we have Bhavin Pande. Bhavin, kindly unmute yourself. Hi. Congratulations on a wonderful set of numbers, Karan. It's incredible to see the way firm is growing. Just our first question was on the asset management front. So of course, yields could be slightly higher because of the alternatives business in the AIF business. But when we look at the performance of these funds and if we were to discern them in terms of top quartile, second quartile, so how do we look at the performance of these funds? Because we want to look at the continuity of money that flows here. Yeah. I think performance is absolutely critical and there's no continuity. You know, every client is super smart. I think on the Pre-IPO Fund, we are now effectively close to our fourth fund in some senses. Our first three funds have done relatively well and they are definitely in the top decile. I think without performance, it's impossible to get the same client to continue to put in money. On the pre-IPO side, I think now we've got a track record of nearly 2017 to 2024, seven odd years. We are looking at a very interesting data point on our recently, where we are just closing our new pre-IPO fund of around about $500 million as we speak. And I think if I was to look at the data set of the clients who've come into that fund of $500 million, I think just in value terms, I was seeing nearly 70%-73% of our investors who've been in our earlier pre-IPO funds. So I think that's how high the repetitive rates are. Obviously, our sector-specific funds, we've got three of them. We've got financial services, which we've raised around about $200 million. That's our best-performing fund. That's given a CAGR of close to around about 38% over the last four or five years. And we've got another one in tech, which is maybe flattish 15%-20%, but it's done very well compared to the peers given what's happened in the industry. And third, we've got healthcare, which we've just about started raising another $100 million fund. So I think on the private equity side, we've kind of done fairly well, but most importantly, we've got the strategy and the design of the product right. Because on the private equity side, we've got more individual family office LPs. So the tenure of the product is more structured around the 4-7 years with a sharper focus on IRR than only the multiple of capital invested. And even the fees on the pre-IPO funds are on drawn down and not on commitment, and even the carry is without catch-up. So those things work really well for the high net worth client. And the performance then adjusted for the fees is held up very, very, very well. On the listed side, obviously, we continue to be in the top 3 or top 4 on both the mutual fund categories we are in on a consistent basis. Similarly, on the credit side, we've had a fairly unblemished track record for the last 8-9 years. The only place where we had a bit of a patchy track record was our real estate funds, which we did between 2012-2018. I think our funds of vintage 12-15 did extremely well, 12-16. The 17, 18 funds had a patchy performance of 4%-5%. I think we've not launched a fund since 2019 in real estate. So I think that sector is something which we want to be a little bit more cautious about. But outside of that, our experience across all our products has been quite good here. Growth on the mutual fund business has been pleasantly surprising because in the last few commentaries, we could notice that that would be sort of secondary focus as compared to our alternatives business. What led to growth there? So I wouldn't say it's secondary at all. We look at it slightly differently, to be honest. I think we try and break up our asset management business not into mutual funds, PMS, and AIFs, but it's largely looking up into listed and alternatives. And honestly, if the listed strategy is coming through mutual funds, PMSs, or AIFs, we're kind of indifferent to it because philosophically, listed is a larger theme and a strategy. And irrespective of the three vehicles we are talking about, they're all open-ended in some senses. And obviously, mutual fund as a vehicle on the listed side has more benefits both from a tax perspective as well as from just the ease of convenience perspective. So I think on the listed side, as our business grows, I think our mutual funds will grow disproportionately. I think we've been relatively prudent in kind of building out our total expense in the mutual funds and our distribution commission payouts. I think philosophically, we would want to continue with that. I think therefore, in some senses, there will never be a blowout collection because we'll never be the best kind of best commission pay masters. But at the same point of time, we'll strive very hard to kind of build it well. So I think mutual funds on the listed side will be a very key strategy for us. I think that's something which we'll continue to build out. And secondly, you're right. I think we invested a little bit more on the distribution side over the last 6-12 months. But that we continue to do as, especially since now Raghav has joined, I think that distribution team will become deeper. Historically, we used to have only around about 20-22 people in the distribution team. We've expanded that to around about 27-28. I expect that team to go up to 40-50 people over the next half of this financial year. And therefore, I think that should see itself as expression in collections. And thirdly, I think what's really helped us on the mutual fund side is we were a little more conservative there. I wouldn't call it secondary, but more conservative because we wanted to first build out the brand. The brand's obviously known historically more for the wealth management business. And we want to kind of ensure that we spend some time, energy, deliver some performance, and then build the brand and then invest on the distribution side rather than getting out and investing on the distribution side too early. Just given where we are from a brand recognition perspective, we feel now it's the right time to invest in distribution. That's what we started doing over the last 6-9 months. Okay. Just expanding on that, we could see that retentions were slightly lower on the MF business if we look as compared to listed peers because they were in line with listed peers. The AUM is much higher than ours. And third question was on the global business. So are we planning to offer Indian products denominated in USD? Or what is the strategy around there? I think second one's more a function of the age of the assets. Your first question, I think, as far as the listed peers goes, obviously, I think we'll have to kind of break the assets into new assets and old assets. So that has a big impact on the retentions. But I think as far as the new incremental assets go, our retention should not be lower than most of our peers. And on the global strategy itself, I think very, very quickly, I think our first, I think we want to be ideally want to play two roles. Okay. So I think the first role will be the way you kind of pointed it out. We should be the choice of the preferred advisor for the India allocation part of the client's portfolio. So I think whenever a client's outside of India, an NRI or a client who's been out for a long period of time, a person of Indian origin, when he's looking to allocate to India, he should have 360 ONE as his first preferred port of call. And obviously, when he wants to access India through products, he could either do it through his NRE, NRO account, or he could pretty much put in money from his private bank U.S. dollar account into our India products. So our India products obviously would have Singapore feeders or GIFT City feeders, which would feed into our Indian vehicles. So that's the first port of call. Our second business, as we evolve, obviously will be to become an advisor for them and effectively be able to help them manage their entire global portfolio as advisors rather than as pure executors because we are unlikely to build a full-fledged global wealth platform and compete with any of the big boys in either Singapore, Dubai, or the US. We're likely to play two roles. One is that of the India allocator, and second is that of a portfolio advisor where we work with the client's current private bank and effectively, in some senses, become like an external asset manager to advise them. That was really helpful, Karan. Just the phenomenal congrats and thank you. Thank you. Thank you. Thank you. We have a long list of people to ask questions. So request you to limit your questions and preferably ask all your questions together at the start. Next in line, we have Dipanjan. Dipanjan, request you to kindly unmute yourself and ask your question. Dipanjan, are you there? We can't hear you. We'll move to Anusha Raheja. Anusha, kindly unmute yourself and ask your question. Just one thing. Your voice is echoing. Yeah, hold on. Is it better now? Yeah, Anusha, it's fine. If you could be a little louder, we can't hear you. We can't hear you. We can't. And secondly, Anusha, we can't hear you. So sorry, Anil, I can't hear Anusha properly. Maybe we can come back to her. I don't know. Yeah, we'll come back to Anusha. Anusha, we couldn't hear your question. We'll come back to you. We'll move to Gaurav Jani. Gaurav, kindly unmute yourself and ask your question. Yeah, hi Karan. Thank you for the opportunity. A couple of questions. One is on this TBR income of INR 225 crore, we have given an estimate and mentioned that it includes some amount of income recognized on the inactive ARR AUM also. So if you can quantify that as a meaningful portion or what is that amount? It'll be less than INR 2-3 crore. Okay. Second, on the lending book, Karan, we are seeing yield compression. So from 5.75% as on Q3, it is down to 4.86%. You think there is room for increase on this or should it stabilize around these levels? A little bit of function of cost, actually. The gross yield is not really confirmed, but the cost has moved up a bit. So I think I think for the next couple of quarters, still we see a little bit of rate reduction. I think 4.75-4.9 is the more realistic number. I think on a stable state basis, we would want to come back to the north of 5, but it's a little bit more. I think our cost has kind of gone up by 15-25 basis points as compared to the overall lending rate. But I think on a steady state basis, if it can be around that 5-ish mark, that will be the right number. Understood. Thirdly, on this format of data book, Karan, I think the earlier format was better and we just got comfortable with that format and we have changed it. If possible, I'll personally at least request you to shift back to the earlier format. That was way more comprehensive and indicative and easier to navigate. It would be possible. We'll try and get that done. No problem. Sure. Thank you so much and all the best. Thank you. Thank you for the suggestion. Next, we move to Aniruddh. Anirudh Agarwal, kindly unmute yourself and ask your question. Yeah, thanks, Karan, and congratulations on the great performance. My first question was, after the tax changes that we've seen in the budget, how do you view the alternatives business? So clearly, for unlisted, there's this big tax benefit that now comes in. So going ahead, how do you think about our business in terms of new fund launches, etc.? What other opportunities open up? Sorry, I didn't fully. Tax changes. So I think tax changes, to be honest, I think is very exciting for both unlisted and fixed income. I think unlisted, obviously, it kind of improves the net return itself. So the reduction of tax from 24% effectively to, in some ways, to 14% is exciting. I think, to be honest, clients were very excited with the unlisted portion in any case. So I think just kind of adds to the bouquet of opportunities. I think the bigger change, honestly, is also on the fixed income side. I think their long-term tax for individuals on listed bonds being at 12.5% would also kind of spur up the markets quite a bit. So actually, I'm equally excited on both and also on the REITs and the InvITs side, especially on the private REITs and the InvITs, some of them which are very, very exciting, broadly giving kind of IRR yields of around about 13%-15% with potentials for capital appreciation. Again, it's a great family of AIF network products. So I think a combination of all of these three being taxed incrementally will be taxed at 12.5% will be very exciting. The other thing which I feel will be a good place for innovation and a little bit of incremental work will be the co-investment portion. So the co-investment syndication portion also with SEBI having kind of given a very comprehensive framework for co-investments will also kind of help in spurring that up. So I think both the co-investment aggregated in accredited investor PMS as well as the tax changes, all three kind of augur very well for building a cohesive co-investment business along with the blind pool business on the asset management side. Got it. Thanks. Two more questions, Karan. First one was the new team that we had onboarded last year or a few more new teams that we had onboarded on the RM side. If you can just talk a little bit about how they've scaled up, how performance has been, and incrementally, how much more productivity do you see coming in from the new teams? And second one was on ET Money. So ET Money, at least outside in, looks like a slight divergence from our earlier focus on Ultra HNIs, HNIs, SFOs. Could you just talk about a little bit on that acquisition? Okay, fair enough. I think on the ET Money, I'll take the question first and then I'll come to your other question. I think on the ET Money side, obviously, what was attractive for us was if I just kind of simply break up the business into three parts. I think there are three parts of that business. One, obviously, is rather, let me just take a step back and explain the way the business is currently set up, right? So I think they've used two great hooks to kind of attract clients into their ecosystem. The first hook is obviously doing mutual funds on the Direct Plan effectively without charging a transaction fee or the distribution fee to the client. And that's led them to grow a fairly good net flow book of around about INR 450-500 crore a month on the SIP side. The other thing which they've done well is build a fairly good comprehensive reporting aggregation software. These two things really have served as a hook for clients to come in. I think what they've done really well, distinct from the others, where rather than focusing only purely on the brokerage portion, which is something which we would have seen as if that was the only focus, we would have definitely seen that as a bigger diversion to our strategy. But what they've done well is built a product called ET Money Genius, which effectively has around about 80,000-85,000 paying advisory clients who effectively pay around about INR 250 a month, and they have around about 80,000 paying clients paying around about $3 million a year. And therefore, in some senses, if you look at it globally, the advisory model across retail clients has scaled up very, very substantially, especially in things like Vanguard, PAS, and so on and so forth. I think ET Money for the last year, year and a half has successfully kind of tried and tested this model. And today, they have around about 80 or 1,000 clients paying that advisory fees leading to around about $3 million of revenue. So while it is small, the hypothesis has been well tested. The attrition of clients is fairly low in that pool. And that business line obviously gives us the highest amount of excitement to build out. The model portfolios around that are very, very similar to the model portfolios we built on the 360 ONE Wealth management side. I think currently they run one model portfolio. We intend to expand that to 3-4 model portfolios. Obviously, that can be done at different levels of scale on our Ultra High Net Worth business and at different levels of scale on that one. The second one, the third portion, obviously, the second portion is really going to be on there's a little bit of a play on the fractionalization and democratization of both PMS and alternatives. So you have other online players who have kind of fractionalized and democratized PMS and alternatives fairly well. The largest among them has now kind of, in some senses, done around close to $1.5 billion-$2 billion of distribution and fractionalization through the format. I think that's a second big opportunity for ET Money along with the advisory piece. And third, obviously, when you start looking at value additions along with these two, it is going to have some bit of value additions on our NBFC loan against mutual fund platform as well as the brokerage platform. So those are the two kind of side benefits. But the main value prop really will be very, very similar to our Ultra High Net Worth business on the advisory side as well as on the distribution side. And I think the direct plans will continue to be used as a hook. Outside of that, I think we felt that from a price perspective, a large amount of the investments was already done. And we were kind of coming into a cycle into the asset where a large amount of the investments done, and we can really kind of scale up the asset from where we are today. The non-digital part of the business, which is really the investment products and so on and so forth, is very, very common to our core DNA. That really doesn't need to kind of get expanded or rebuilt again. Lastly, obviously, we had a lot of comfort with the team. I've been kind of meeting the team for many years generally to understand the digital space. That's something which we had comfort on. I think it's in some ways, while on the client segment side, it's a bit of a diversion, but I think the key success factors to get that business working is very similar to what we have. Therefore, we feel, at least I feel, the advisory portion on retail over the next 5, 10 years will transform much faster than a lot of us believe. Therefore, we want to be part of that transformation. Got it. Perfect. Thanks. Just the other question on the new teams that you had onboarded. Yeah, sorry. On the new teams, obviously, I think we have very, very Anshuman kind of covered it in his opening note. I think fairly, very excited, especially on the wealth management side. I think all the teams are up and alive. I think pretty much on track to start breaking even before the 18th month itself. I think by and large, I would say 75%-80% of the team will achieve those break-even points. I think 15%-20% might take longer, but 75%-80% of the teams, both in terms of cost to the company as well as in terms of value, will achieve their break-evens within 18 months. I think what gives us more encouragement, obviously, is the fact that if you look at both break-even of employees and productivity of employees and clients, they become disproportionately productive and remunerative to the firm from year 1, 3, 5, and 7 in very different way ratios. So a client in year 1 or RM in year 1 kind of becomes 5 times productive or 7 times productive by the end of year 4, year 5, and effectively 10 times more productive by the end of year 7. So I think our ability to kind of add these people now and also add a whole host of clients over the last 18-odd months is very encouraging for us. I think if we handle the transformation well, both in terms of capacity as well as in terms of build-out of the client platform, a lot of these clients and RMs will end up adding substantially more assets over the next 2-3 years. Perfect. Thanks, Anil. Have Have all the best. Yeah, thank you. Next in line, we have Jayant Kharote. Jayant, kindly unmute yourself and ask your question. Thank you for the opportunity and congrats on a great set of numbers. Karan, first on the mid-market segment, if I heard correctly, you said you have identified 70-75 RMs for this business. So I remember earlier conversations was a much smaller number. So are these new hires or this a carve-out of the existing RMs? Can you just split this number more for us? Yeah. So the total strength would be 70-75 by the end of the year. We've got 45 people already on the mid-market business. Of the 45, around about 10 are dedicated on the sales side. And of the new 75 people, around about 35-40 people are carved out from the current team. And another 25-30 people are at the point of different points of recruitment. Yeah. And the sales side, you want to take from 10 to? 10 to 75 odd people. By this year itself? By the end of this year, yeah. In terms of AUM guidance, I remember you had given a blended number of INR 10,000 crore for global plus HNI a couple of quarters back. Do you want to still have a relook at this number now that you have done this $75-$80 million of throughput? It'll be around that number. It'll be, I think, in that ballpark number of INR 8,000-INR 11,000-odd crores, yeah. In global offering, can you talk about how that's shaping up or not? Shaping well. I think we've got pretty much all our empanelments done. I think we are in second half of our technology onboarding program. I think we're pretty much on track to go live mid-September. I think that's really where it is. I think we were hoping for 30th September. As of now, it looks on track. Sorry, if I could just squeeze in one last. On these unlisted shares, given post-budget, the tax rate changes from 20%-12%. I mean, how do you look at this opportunity from a multi-year perspective? And your presence in this market has been quite strong in the past. So any relook if you want to sort of carve out any department or what is your thought on this piece? Yeah. No, so I think we've approached this piece a little more conservatively than others. And I think we'll continue to do this a little conservatively. I say conservatively because of the following reasons. We typically not behave like brokers or we don't end up syndicating too many transactions on the unlisted side. The only transactions we offer to our clients on the unlisted side, both in terms of co-investments or sometimes in the form of direct sales, are transactions which we are doing typically from a blind pool basis on the asset management side. So therefore, we kind of become a little more, at least in our mind, we become a little bit more prudent in what we are offering. And we wanted to be subject to a much higher level of higher bar of diligence before we really take that idea out to the client. What we don't do is behave like an angel or a syndicator or a broker for that simple security. So that's what we don't like to do. So therefore, I think while I'm at the headline level, super excited about the unlisted opportunity and the fact that from a friction cost perspective, the tax is reduced massively, I think at the same point of time, don't want to get carried away to kind of make direct equity buying and selling a trading activity within the firm. I think we would like to keep it restricted to ideas which we are buying from our funds. And therefore, we've spent a lot of time diligencing it and only offered those ideas to our clients either as co-investments or otherwise. So I think that's the operating principle, and that's allowed us to kind of not make many mistakes in the business. Most importantly, we don't want our relationship and our reputation with the client to be identified with one single unlisted idea. Is this a rule? Only supplies only from AMC portfolio? It's not a rule, but as I said, we want to have a diligence, much, much higher bar of diligence. Not supply from the AMC portfolio. Only investments which our blind pool funds are also doing. Okay? So basically, the bar is not the bar is the fact that we should not be buying and selling it. We should have done enough work to have diligenced it and convinced ourselves to be able to buy it for the long term through our blind pool portfolios. So just want to use a couple of incremental bars of diligence. Yeah. Great. Great. Thanks and congrats once again for the great set of numbers. Thank you. Next in line, I invite Dipanjan Ghosh. Kindly unmute yourself and ask your question. Hello. Am I audible now? Yes. Yeah. Hi. So Karan, just a few questions from my side. First, on the new client acquisitions that you're seeing, how much of this would be, let's say, new clients who have been formed as a result of monetization activities or where there has been sudden money inflow that has happened versus, let's say, the clients who would be newly acquired because of you tapping a new geography or maybe tapping into the existing customer cohort of a competitor because of new RM additions that you have done? So just wanted to get some sense on that. Basically trying to understand how the flow or client acquisition strategy will shape up once, let's say, the primary market stabilizes a bit. The second will be you have been discussing about your institutional mandate strategies, and probably that can also see some green shoots once the global offshore strategy picks up. So how do you see the pipeline on that side of the business? And lastly, you mentioned the number of INR 3,500 crore of gross sales in your alternatives, but obviously, the net number was lower because of redemptions. So what is the product pipeline on that? And should one continue to see the gross run rate remaining at these levels only? No, so I think all great questions. I'll quickly kind of take it one by one. I think I'll take the last question first. I think on the alternative side, fairly excited, as I said, on multiple strategies. I think we're broadly acting on three fronts. On the private equity side, this quarter, we are closing our pre-IPO fund. Effectively, our fourth pre-IPO fund is called SOF 12/13 with a collection of around about $500 million. So the response there has been excellent. We will also kind of get our healthcare fund to a close. That will be a collected around $65-$70 million there. I think we'll move it to around about $100 million and that fund will close. On the credit fund side, we've launched a credit fund that also should get to a number of $200-$250 million by the end of the next 3-4 months. Real assets, we're still in the stage of investing our first fund. So that would take some time before we launch our second fund. And on the listed side, we'll definitely do a couple of more strategies. So I think the overall traction is likely to continue. I think the quarterly numbers get a little bit plus and minus depending on the redemptions in that quarter as well as the closing of new funds in that quarter. So I wouldn't kind of look at it only from a quarter perspective, but from a year perspective, I think out of the INR 30,000 crore-INR 35,000 crore, getting around about INR 8,000 crore-INR 10,000 crore on net flows from the asset management side pretty much stays on track. I think that's the broad number, I would say, on a net basis. And therefore, from a gross basis, that would need to be at least around about INR 5,000 crore-INR 6,000 crore extra. So if we end up at INR 8,000 crore-INR 10,000 crore on net flows, you would need to do INR 13,000 crore-INR 14,000 crore of gross flows on the asset management side. With reference to your first question on the mix of the clients, I think it's a great question, but it's a little bit of the stage of the firm. I think the same question two years back, I think I would have said 70%-75% is coming from monetization events and new client sales of promoters selling shares and IPOs and so on and so forth. But right now, for the last 2-3 quarters, actually, it's been 50/50 because we've added some great people from across the industry. And therefore, we are able to kind of break through to a lot of clients also with invested portfolios. So to my positive surprise, it's a 50/50 split. I think 50% of our clients are coming from clients who are already invested with some of our competitors. And the remaining 50% is really coming from a sale of businesses or sale of some shares from a listed promoter or dividends or sale of real estate. So I think it's a combination of the two. But traditionally, I think it's been more in the favor of the second as compared to the first. But I think over the last 2-3 quarters, it's 50%-55% from existing other clients also. Sorry, Karan, just there was one question on the. Yeah. The institutional mandates, I think that goes on track. I would be surprised if we don't end up with at least getting a couple of mandates through the year, yeah. Karan, if I just can squeeze in one small question. You have classified in your data pool the inactive AUM separately, and you've changed the classification a bit. But do you expect these assets to really turn into ARR or maybe deployed into more high-yielding TBR assets at some point? Yeah, yeah, for sure. But around about 65% would definitely be active in some way, either active ARR or TBR. 30%-35% might not be because those might be just liquid funds just pending to be invested into either passive assets like businesses or even taxes when it comes up for payment in different quarters. But 60%-65% will definitely be active. Maybe potentially a portion of it will move into ARR, and a large portion of that might move into TBR. But they're definitely on the horizon. We are servicing them. We are kind of constantly engaged with the client to try and convert it into active. So I wouldn't write off those assets for sure. Got it. Thank you and all the best. Thank you. Thank you. Next in line, we have Aejas. Aejas, kindly unmute yourself and ask your question. Yeah. Hi, Karan. Congratulations on a very strong set. Karan, could you just give me more color on what is the underlying in the transacting assets? Because the uptick is quite sharp. Could we also see possibly a downtick, or how do you sort of see this trajectory for the rest of the year? No, so I think from a perspective of the TBR income on a quarterly basis, I'm still kind of comfortable with that earlier number which we look at, which is effectively the 400, 450-600 kind of number for the year. Okay? So effectively in the ballpark range of on absolute downside, around about INR 100 or 100-110 crore a quarter, absolute downside. And on a steady state basis, I think INR 140-150 crore a quarter. I think last two quarters, as I said earlier, have obviously got INR 80-90 crore of TBR extra over what we typically expect. But that's a little bit of a function of the market. So I would be cautious to guide that it's not necessary to kind of look at that number on a quarterly basis. On the transaction income, are we now set, given multiple asset classes, given multiple businesses we are in, multiple streams of brokerage, multiple other pools of ability to monetize? Are we comfortable with that INR 110-120 crore to INR 150-160 crore transaction number? I think the answer is yes. Got it. Karan, second is, could you just give the split of equity and debt of the entire asset pool? Earlier, it was, I think, 55, 45. What is it today? I don't have that number, but last I checked, it was in the region of 58%-60% equities and 40% fixed income. It may be 62%, 38% or thereabouts. Yeah. It's not going to change dramatically. Got it. What would be the total pool of capital that is today invested in all the AIFs today or all put together today? It'll be INR 1,000, INR 1,200? No, INR 1,600 crores approximately. Okay. So that's gone up because of the incremental investments that you've had to make in the. Yes. Some of our funds are getting; we are also getting capital back through the years from our earlier funds. But I think it will be around 2.5%-3% of the sponsor AUM. I think traditionally, it used to be 5%-6%. We've got it down to around about 4% right now. But on a long-term basis, I think 2.5%-3% will continue. So on our current INR 40,000 crore, I think we would like to be in the region of INR 1,000 crore-INR 1,200 crore. There may be INR 400-INR 500 crore extra right now. Got it. Karan, two points that you mentioned earlier that I did not quite understand is the opportunity in the accredited investor PMS space. In ET Money, you spoke about the fractionalization opportunity. Could you expand on both those? So I think on the first one, which is essentially on the—sorry, what was the first question? You spoke about the accredited investor. Accredited investor, yes. So accredited investor, basically, it's a license where, as an investor, if you're putting in a minimum of INR 10 crore and you are an accredited investor, you can basically kind of buy unlisted stuff. Otherwise, on the PMS side, you're not allowed to buy any instrument which is not listed rated, and you are not allowed to buy unlisted. And therefore, you're not even allowed to buy either any alternates or any unlisted. But if you are an accredited investor and you got yourself certified as an accredited investor and the size of the investment is a minimum of INR 10 crore, you can create an AI PMS for that specific investment. That's essentially what the opportunity is there. Okay. And we're planning something of this nature on. We already would have around about INR 500 crore plus on the accredited investor PMS side. Yeah. Does this get classified in those customized multi-assets? Yes. Yes. It gets classified. Okay. Got Got it. Karan, two other things. You've not spoken about Account Aggregator for a bit. I think a year, year and a half back, you used to talk about it. Has that opportunity changed as it started to see fructification? I think on the Account Aggregator side, we look at it more as data input to report better analytics for our clients. I don't think so, it's going to be by itself a standalone monetization opportunity yet. I think, obviously, today we work with a lot of software providers to be able to pull data for our clients for the investments across other advisors and give them a single reporting. And we bought this platform called Altiore for around about maybe $1 million 3 or 4 years back. And we've kind of worked a lot on it and developed it. So something like Altiore will feed from Account Aggregator to get better information to the client. But Account Aggregator right now, outside of mutual funds and direct stocks, is still kind of not fully reporting everything yet. So I think it's still some time away for us to be able to use that to be able to give clients better analytics. But I think as and when the Account Aggregator use case gets developed, we'll hope to be among the first ones to be able to use that data point to be able to create a better report to show it to our clients. Got it. No, what I meant was more from access to see prospective clients, pool of capital. I was talking about it from that side. But thank you for that. I got the context. Karan, just one last thing is that we, in the middle, I think a year, year and a half back, we started this IT endeavor to sort of get more IT-savvy. Is that project behind us? Has that rundown already taken place? And now is OPEX stabilized at these current levels? I think we're broadly fine with the OpEx. Nothing dramatic. I think we are fairly in line with our budgets. I don't see really too much of OpEx changes. I think there will be a little bit of reduction in our legal cost of approximately maybe INR 25-INR 30 crore a year going forward. But that will get more or less absorbed, if at all, with incremental marketing administrative costs. So we have enough cushion to be able to kind of stay within our operating budgets. Got it. From an IT perspective, the investments that you made, all of those are behind us? IT investments are never behind us. They're always there. But outside of that, on a steady state basis, yes. Nothing phenomenal. Yeah, nothing big bang. Okay. Thanks so much and all the best. Thank you. Thank you. Next in line, we have Akash Vora. Kindly unmute yourself and ask your question. Yes, sir. Thanks for the opportunity. Hi, Karan. So three questions from my side. First being, what would be the total new flows you would be estimating for this year? And if you could bifurcate it across our wealth asset and different divisions and from the HNI segment. Secondly, we would like to understand the pros and cons of the budget and what impact would it have on our portfolios and our client portfolios and our numbers. And thirdly, the reclassification that we have done from ARR to TBR can be expected to be a one-time or maybe the last time you would be doing this kind of an activity or something like that? Or will we be expected to do more going ahead as well? Thanks. Thanks, Akshay. I think quick response to all three questions. I think from an activity of ARR to TBR, it's only a one-time activity because we basically just done a simple reclassification of the inactive ARR to TBR so that the retentions on the active ARR can kind of come out absolutely clearly. And I think that's really on the third question. On the total flows, like I said earlier, I think broadly 50% on the I think 50% of the flows on the ultra-high net worth side, around about 25% of the flows, 30% of the flows on the asset management piece, and 10% each maybe potentially on the global business and the mid-market business is the way I would look at it. And from a budget impact, nothing crazy. I think only positive things from that aspect, especially the unlisted tax going down from 24% to around about 12.5. I think it definitely helps the business. And also the listed bonds being taxed at 12.5 will also be beneficial for our clients. So overall, I think from a budget perspective, overall clients were fairly enthused with the budget. Yeah. Yeah. Thanks, Karan. Thank you. Thank you. Thank you. Last in line, we have a question from Aditya. Aditya, kindly unmute yourself and ask your question. Hey, hi. Can you hear me? Hi, Aditya. I can hear you. Okay. Hi. Congratulations on a good set of numbers. Just one question. We wanted to understand about the INR 871 crore ARR net flows in your asset management. So was it like was there an outflow redemption or this is where you are comfortable at? No, as we said earlier, I think our gross sales is around about INR 3,000 crore for the quarter. So effectively, the net flows of INR 900 crore is a result of redemptions of around about INR 2,100 crore. And sorry, INR 3,800 crore. So I think overall, I think the redemptions are largely, to a certain extent, a function of the redemptions from our earlier pre-IPO funds. So those can become patchy on a quarterly basis because we end up returning a little bit of chunky money in a quarter. But outside of that, as I said earlier, I think net flow number of around about INR 8,000-INR 10,000 crore and a gross sales number of around about INR 14,000-INR 15,000 crore is where we'll be comfortable on the asset management side. Okay. Thank you. Thank you so much for that. Thank you. Thank you. Thank you, ladies and gentlemen. Due to time constraints, that's all we have time for this afternoon. Thank you for joining us, and we look forward to hosting you again. Thank you. Thank you. Thank you, everybody.