Gajendra Kothari - We Do Not Impose Sales Targets on Our Team Members (Co-Founder - Etica Wealth)

"Financial freedom isn't just about wealth; it's about having the confidence to make choices on your own terms, enjoying life while building a future grounded in integrity and balance."

1. Can you tell us about your journey into personal finance and what inspired you to co-found Etica Wealth?

Ans. Before UTI AMC visited our campus for placements at IMI, New Delhi, I had little knowledge about personal finance and mutual funds. After successfully interviewing for a position, I joined their Juhu Branch in Mumbai. Interacting with retail investors opened my eyes to the significant financial literacy gap in our country. I discovered my natural talent for simplifying complex financial products for my clients. 

At that time, I was also troubled by the widespread issue of mis-selling. I recognized that many people's savings were not being managed properly, especially considering that financial literacy was woefully low at just 2%. At the age of 24, with limited experience, I promised myself that I would eventually start a company to provide financial advice to investors, based on my experiences managing my family's finances by age 30. With what I believed was enough experience, I co-founded Etica Wealth with my brother Virendra in Mumbai. We began our humble journey with a strong commitment to educating investors and helping them start their financial journeys gradually, harnessing the power of compounding to eventually turn them into advocates for our brand. I committed myself to creating a firm defined by complete transparency, simplicity, and a client-first approach. This vision culminated in the birth of Etica Wealth (Etica means Ethics in Portuguese / Spanish) in November 2009, starting with a three-member team in a small 250 square foot office in Lokhandwala, Mumbai.


2. Your firm's philosophy emphasizes "Ethics before Everything." How does this translate into actionable strategies for your clients?

Ans. For us, "Ethics before everything" is more than just a tagline; it embodies our philosophy. We manage our clients' money as if it were our own family's and maintain complete transparency in our investments for all our clients and prospects. We see our relationship with clients as a partnership: if they thrive, we thrive together. Our actions are guided by principles that reflect those we apply to our family portfolio, ensuring full transparency. Today, any new client is taken through an orientation that outlines our investment philosophy, and we only onboard clients who align with our long-term vision.


3. As a TEDx speaker and financial literacy campaigner, what common misconceptions about personal finance do you encounter, and how do you address them?

A common misconception is that we either take too conservative or overly aggressive approaches to finance. Many people lack clarity about the fundamentals of personal finance, the significance of compounding, and the importance of simplicity in their portfolios. Additionally, they often have vague financial goals. The challenge in today's environment is that people frequently consume fragmented information from the internet, particularly through platforms like YouTube and social media, which often leads to half-baked insights that aren’t tailored to individual situations. This can result in costly financial decisions later on. The one-way nature of information from these sources may be valid for general audiences, but it typically doesn't meet individual needs.

4. How do you ensure that clients' interests consistently come first in an industry often driven by sales incentives?

We do not impose sales targets on our team members. Our primary expectation is client satisfaction. We provide our team with clients and request that they manage their investments wisely. Our focus is on long-term success rather than short-term gains, allowing us to harness the power of compounding effectively in our business.


5. What challenges have you faced in maintaining independence from affiliations with banks, mutual funds, or insurance companies?

We are a registered mutual fund distributors with AMFI and collaborate with various mutual fund companies. We are independent and not affiliated with any specific entity, allowing us to distribute assets across 10 to 12 asset management firms.


6. How do you see technology reshaping the personal finance industry, and how does Etica Wealth integrate it into its services?

Technology serves as a powerful multiplier, enabling us to scale effectively. Our approach emphasizes both high-touch and high-tech services. We leverage technology to handle routine tasks such as goal-based planning, client onboarding, transactions, and portfolio monitoring. This allows us to connect with clients even at a distance.


7. Could you share an example where educating a client led to a transformative financial decision for them?

A widow approached us three months after her husband's passing. With minimal understanding of personal finance and investments, she came to us via a referral. We conducted several sessions to ensure her comfort, understand her needs, and provide the right solutions. She was extremely pleased with the process and gained significant confidence over the following six months. We have involved her in numerous educational seminars and annual events, and she is now much more at ease.


8. Integrity is a cornerstone of Etica Wealth. How do you foster and sustain this ethos across your team and client base?

Integrity and trust are fundamental to our business. We never pressure clients into decisions, and our team does not chase after customers. In fact, we frequently decline new investment products suggested by clients. As a result, our clients have become advocates for our brand, happily referring friends and family without us ever requesting it. We prefer to grow organically, believing that if our services excel, referrals will naturally follow.


9. What does "financial freedom" mean to you, and how do you help clients define and achieve it?

To me, financial freedom represents greater choices. It means the ability to do anything, anytime, and anywhere without financial concerns. Financial freedom transcends mere numbers; I am not interested in a never-ending quest for wealth. Instead, I aim to enjoy life and make confident choices on my own terms.


10. If you could give one financial tip to your 18-year-old self, what would it be?

Invest in knowledge and strive for a healthy balance between the present and future. If you're serious about building wealth for the long-term, focus on your health. Only by living a long life can you maximize the benefits of compounding. Ultimately, having substantial assets means little if you're not in good health. This advice holds particular significance for any 18-year-old.

Bio :

Mr. Kothari is a Chartered Financial Analyst (CFA) Charter holder. He has done Masters in Business Administration (MBA) in Marketing & Finance from IMI, New Delhi. Mr. Kothari has more than 20 years of experience encompassing both Indian & overseas capital markets. He is leading Etica Wealth since 2011. The firm currently manages Rs 2,500 crores of assets on behalf of over 2,000 families across 20 countries.

Motto: Mr. Kothari’s staunch belief in his guru Nick Murray’s words “The Messenger is the Message” shaped his vision to create Rs 100 crs wealth through his investments in Mutual funds and buying the iconic luxurious car Rolls-Royce through SIP before the age of 50 thereby becoming One Idiot (www.oneidiot.in) and to inspire others through his own story. His passion is to create financial

awareness and empowerment amongst the youth of India. He has so far empowered more than 2,00,000 participants in the last 15 years through more than 400 training sessions all over India,Dubai, Thailand, Bangladesh & Belgium in the areas of Personal finance, Mutual Funds, Insurance etc.

Media Presence: Mr. Kothari has been interviewed and quoted by both international and domestic print media including Financial Times UK, The Economic Times, Times of India, Live Mint and has made live appearances on premier business channels in India like CNBC TV18, ET NOW etc. Mr Kothari is a

TEDx speaker and is regularly invited as a thought leader at many Youtube Podcasts, industry forums & events.

Personal Life: Mr Kothari lives with his wife Sweta Kothari and their 2 children Neel Kothari (16 years) and Aditi Kothari (14 years) in Mumbai. He is an adventure travel enthusiast and loves playing Badminton, Cricket, Table Tennis, Carrom and Squash. He also enjoys reading books and blogs and is always eager to learn new stuff. He loves exploring new places, culture & local food and strongly believes that “The best things in life are not things”.

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Interviewed by : Shivam Sharma 

Edited by : Shivam Sharma