Who Are The Different Wealth Management Providers?

Increasingly, many Indians are millionaires and turning one, and wealth management is gaining popularity. The two significant factors driving India forward are the economic boom and increase in income too. The money that these billionaires possess require proper management, and thus, wealth management is the most sought-after option.

What is it?

It is investment advice or assistance for managing the finance of HNIs. Wealth management in India is made available to clients for two purposes – their ongoing investment's growth and safety. It is a combination of financial advice, tax services, and legal planning under one fee.

Who offers them in India?

In India, three financial bodies offer a wealth account – banks, brokerage firms, and boutique advisory companies. Let us learn in detail what they do:

• Banks: They have larger investment distribution model, which means they focus on broader portfolio. They primarily cater to mid-level segments and HNIs. 

• Brokerage firms: They invest the consumers' funds in shares and Initial Public Offering (IPO). Both are equity market products. 

• Boutique advisory companies: They offer customised financial solutions to their clients who are HNIs and ultra-HNIs.

What is the current wealth management scenario in India?

• The 21st century saw several entrepreneurial ventures which have resulted in several HNIs in India. The country is currently ranked fourth for a higher number of HNIs in the Asia-Pacific region after Japan, China, and Australia
• Considering the HNI segment is growing, the demand for wealth management is also at an all-time high
• This industry is famous for two reasons – the changing regulatory environment and increasing competition
• Over the years, many companies have come into being. Even the existing businesses are diversifying their services and venturing into wealth management
• Earlier, wealth management in India was limited to insurance and mutual funds. Then, there were no separate advisory services and institutions. Gradually, with regulatory changes, the sector diversified, and wealth managers found an income source
• These financial institutes are looking for ways to lure potential customers. Precisely why, they keep up with the trends and offer the best facilities to the clients

Wealth management and competitors:

• Like other industries, wealth management also faces rivalry. The current players are expanding their offerings, and there is an emergence of new domestic and global players
• Currently, the industry is split into brokers, sub-brokers, financial advisers, insurance, and tax consultants

Financial companies, private banking by famous lenders, and public sector banks are also offering these products. They also possess brand equity, influence, and corporate affiliations that can prove as fierce competition for current players in the industry

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Created on Feb 15th 2021 06:00. Viewed 197 times.

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