A Dedicated Service to Wealthy

A recent study reveals that nearly 10 lakh household in the country who possess wealth starting from Rs. 25 lakh to Rs 2 crores. It is a concern for them to manage such a huge amount by themselves. The wealthy has always an ego of having such a huge ownership and sometimes they are skeptical about the management of this fund.

Indian private banks and international banks have come up with the famous concept in wealth management i.e. ‘private Banking’ which offers investment advice to wealthy clients who can invest a couple of crores through them.

Generally clients having such a great amount are at sixes & sevens whether to put into FD’s, bonds, equities, gold or commodities.

The first step is to find a financial planner may be an individual planner or a wealth manager with any private sector bank who will manage your wealth followed by right investment advice. Most wealth managers profile a high net worth client based on the risk taking ability, time horizon, cash flows, age etc and then prepare a financial plan.

A financial plan is reviewed by the wealth manager once in 15 days or quarterly and the performance of the funds is measured depending on the current market scenario.

The most important fact while choosing a wealth manager is to see the history & performance of the concerned manager. Though there is little evidence available of the same person in the public domain but a reference check can be done from his current organization.

Another crucial thing is to decide on the type of advice or service you want depending on your requirements. If you have been saving regularly, already taken care of your investments and you need only equity advice then you should go for finding a well established broking house.

With SEBI after abolishing the mutual fund entry loads there is a shift happening from a distribution based model to the advisory model. In the advisory model, the so called investor has to pay a certain amount of fees for a bias less advice to the advisor unlike earlier where distributors sold financial products which fetched them hefty commissions, With this changing scenario, investors as well as advisors have to understand the dynamics of the financial advisory and also the industry.

With such a changing investment scenario and new rules, regulation coming up, there is a need to educate people about various dynamics of the market and make things available at door step. Ultimately managing wealth is a long term process with minimum bumps on road