What is Wealth Management?

by Shashank Bhaskar Finance Adviser

Wealth Management is an investment-consulting activity that integrates elements from a variety of financial disciplines including but not limited to portfolio management and financial planning for investors. In general practice, these services are provided to small businesses, family-run enterprises and perhaps most notably to high net worth individuals through financial services firms or credentialed professionals (CFAs, CAs, etc.)

The primary goal of a wealth management account is long term growth of established capital. The most frequently pursued form of wealth management in India as well as globally is the private wealth management service given to HNIs.

Most HNIs pursue wealth management services both in India and around the globe. Several HNIs have complicated wealth account including overseas assets which require professional assistance such as professional wealth managers to use.

The following are some of the key aspects that wealth managers need to consider when providing services:

  • The investment time varies from individual to individual and from one company to another. Although one investor may be happy to invest for longer periods, others may contemplate a shorter time. At the heart of this unpredictability is the fact that a person has a finite life span, no matter how rich or influential. This contrasts sharply with organisations that have the same rights as individuals with an infinite lifespan theoretically.

Wealth managers need to recognise not only their client's accumulation of wealth, but also prepare for the transfer of wealth account at the end of the individual's life.

  • HNIs mostly have overseas wealth account, making them liable to pay taxes on their income which differ from country to country. The wealth manager must consider all these interests separately, and the different taxation methodologies as well as rules applicable in the investment country. These accounts thus incorporate various techniques of portfolio management that can provide individuals with returns that are in line with the investment objective after all relevant taxation requirements have to get managed.

  • The wealth manager 's work does not stop with the client making the investments chosen. This includes the wealth manager keeping a close watch on the success of the various assets over a period. In most instances, the client receives periodic wealth management account reports using both qualitative and quantitative methods to ensure the portfolio is performed correctly. This is important considering the full range of risk profiles, features as well as variables which add to a portfolio's overall complexity.

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About Shashank Bhaskar Innovator   Finance Adviser

14 connections, 1 recommendations, 63 honor points.
Joined APSense since, August 9th, 2018, From Mumbai, India.

Created on Jun 24th 2020 16:08. Viewed 225 times.


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