Anand Rathi's 2026 Playbook: Data, Discipline, and a ₹99,000 Cr AUM

Introduction: A Data-Driven Approach to Wealth

In the complex landscape of the Indian stock market, Anand Rathi Wealth has established itself as a significant force in managing the fortunes of high-net-worth (HNI) and ultra-high-net-worth (UHNI) families. As of December 31, 2025, the firm manages over ₹99,008 crores in assets, a testament to its structured, data-centric philosophy. Feroze Azeez, the Joint Chief Executive Officer, frequently articulates the firm's core belief: successful wealth creation is not about chasing returns but about managing risk through a disciplined, uncomplicated process. This approach has resonated with over 13,262 clients, who rely on the firm for clarity and consistency in a volatile market environment.

The Core Philosophy: Structure Without Complexity

Anand Rathi Wealth's strategy is built on four key pillars: a fearless approach, an uncomplicated methodology, data-backed decisions, and transparency. The firm aims to demystify financial concepts, enabling clients to make informed decisions that align with their long-term goals. This client-centric model is supported by a robust six-way support system that includes a Relationship Manager, Account Manager, and strategic oversight from senior leadership. The stability of this system is reflected in the firm's low Relationship Manager attrition rate and an average RM tenure of 8.3 years, ensuring continuity and deep-seated trust with clients. This trust is a key driver of growth, with 78% of new clients coming through referrals and 60% of all clients having been with the firm for over three years.

Asset Allocation Strategy for HNIs

According to Feroze Azeez, the ideal portfolio construction for an HNI should be deliberate and mathematically precise. The firm advocates for a significant allocation to equities, typically around 60%, with the remaining 40% in debt and structured products. For aggressive investors, the equity portion remains unhedged to capture long-term growth despite short-term volatility. For conservative clients, the firm utilizes instruments like Long-dated Equity Participation securities (LEAPs) to hedge against downside risk while maintaining equity exposure. This strategic allocation is designed to build wealth with potentially half the risk of the NIFTY50 index, focusing on controlled, predictable, and sustainable growth.

A Clear Stance on Asset Classes

The firm's investment advice extends to a clear, data-backed opinion on various asset classes. Equities are favored because they represent ownership in businesses where value is actively created. In contrast, Azeez advises clients to avoid significant investments in real estate and gold for wealth creation. He argues that real estate often fails to generate double-digit returns and lacks the productive capacity of equities. Similarly, he points out that gold's returns in dollar terms have been negative over long periods, with its appreciation in Indian Rupees largely due to currency depreciation. For investors seeking dollar exposure, he recommends international mutual funds as a more direct and efficient vehicle.

The Role of Structured Products

A key differentiator in Anand Rathi's strategy is the extensive use of structured products, which constitute 30-35% of many client portfolios. These instruments, which combine debt and derivatives, are designed to serve as a 'Plan B'. They offer predictable, often double-digit returns even if the broader equity markets, like the Nifty, deliver low single-digit growth. This provides a fallback option that ensures portfolio resilience and helps clients stay the course during periods of market stagnation or correction. This focus on risk mitigation is central to the firm's objective of delivering consistent performance.

Market Outlook and Key Drivers for 2026

Looking at the market in early 2026, Azeez identifies domestic liquidity as the primary engine of growth. The steady flow of capital into Systematic Investment Plans (SIPs), which has reached nearly ₹20,000 crores monthly, signifies a structural shift in how Indian households invest. This domestic strength is complemented by growing interest from Foreign Institutional Investors (FIIs), who are now allocating capital beyond large-caps into the mid-cap and small-cap segments. While acknowledging that some parts of the market have high valuations, Azeez views recent corrections as healthy. He believes the long-term trend of financialization, supported by investor education initiatives, will continue to drive the market forward. Political stability remains a key factor for foreign capital, with FIIs favoring continuity in governance.

Navigating Regulatory Changes

The firm also keeps a close watch on the regulatory environment. Regarding SEBI's new Total Expense Ratio (TER) norms, Azeez has hailed the move as a '10-on-10' for investors. He believes the changes bring much-needed transparency and clarity to how mutual fund expenses are calculated. While acknowledging a marginal short-term impact on the profitability of Asset Management Companies (AMCs) and distributors, he emphasizes that the long-term benefit of increased investor trust far outweighs the minor adjustments. This perspective aligns with the firm's principle of prioritizing transparency to build lasting client relationships.

Conclusion: Discipline for the Long Term

Anand Rathi Wealth's approach is a clear blueprint for navigating the Indian markets in 2026 and beyond. By prioritizing data over noise, structure over complexity, and discipline over speculation, the firm has built a resilient and scalable wealth management model. Its growth in AUM, client base, and advisor retention underscores the success of this philosophy. For investors, the key takeaway is the importance of a structured asset allocation, a clear understanding of risk, and a long-term perspective. As domestic and foreign capital continue to flow into Indian equities, a disciplined strategy remains the most reliable path to sustainable wealth creation.