Raj Sharma

When wealthy private investors, who often have problems managing their money, approach Raj Sharma for advice, he tells them a simple truth –– he is not a magician or a speculator but a long-term investor.

As Private Wealth Adviser and Senior Vice President at Merrill Lynch’s Boston operations Sharma is currently basking in the glory of his being named one of America’s top 100 advisors by Barron’s, a Dow Jones publication. “It is a terrific recognition that validates our investment philosophy,” Sharma told News India-Times in an interview.

Sharma heads a team of professionals specializing in private wealth management, financial, estate and philanthropic planning who handle family wealth totaling $2.5 billion in assets. “One of my personal tips to our clients is that one creates wealth through concentration and one must preserve it through diversification. It is important wealth is diversified once created because we believe that is the best way to preserve it,” Sharma said.

Sharma likes to tell the story of a recent “thank you” note that his team received from an 88-year-old widow. Some months ago, a corporate executive client referred a 97-year-old immigrant from Eastern Europe to Sharma. Like most immigrants, he to had begun his life from scratch but managed to work his way up. The man never planned his finances though since the 1940s he had invested considerably in many stocks. He sent Sharma and his team 20 boxes containing stock certificates. By the time Sharma and his team were through analyzing what those contained, it transpired that the man had quietly built up a fortune of $30 million.

Many of the companies he had invested in had been long defunct. The first point of business that Sharma took care of was accounting for losses of millions of dollars on numerous positions since the man’s death would have negated those tax benefits. “The person was 97 years old and we knew we had to act fast,” Sharma recalled. The Sharma team then developed a comprehensive trust management strategy for the family. When the man passed away three months later, his widow managed to save millions of dollars in taxes and preserve the estate.

Sharma’s attributes his team’s success to “some really simple details.” “For instance, we never use voice mail. We ensure that all our clients’ calls are answered by someone or the other. Service is very important. Of course, this is apart from all the meticulous planning that we do while managing our clients’ assets,” he said.

Originally from Hyderabad, Sharma has a strong academic background. He is Certified Investment Management Analyst (CIMA), a program administered by the Wharton School of Business and The Institute of Investment Management Consultants.

He also holds an M.S. in Mass Communications from Emerson College, Boston and M.B.A. in Finance from Osmania University, India.

Sharma said he is conscious how dramatically India has changed over the years. “In the 1960s and ’70s when I was growing up there was a fear of anything foreign. Hyderabad was a sleepy Nawabi place. Now India is a different place altogether,” he said.

“For the first time, India is coming into its own. It is going to be the market for the next 50 years. There has been general consistency in keeping up the economic reform process despite change of governments and that is very encouraging,” he said.

Sharma said looking at the economic growth in India, his team believes the country needs a good allocation, “between 5 and 10 percent.” The Shrama team allocates 50 percent investment to the U.S. market, 15 percent to the international market and about 35 percent to bonds.