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The
wealth management market is the fastest growing market in
the financial services segment. It is growing at a rate
of 25% annually. Today's wealth management market is specifically
designed for High Net-worth Individuals (HNIs). As people
become wealthier, managing wealth will become more complex.
Instances in the past confirm that rich people often fail
to manage their wealth properly; private organizations such
as private banks have to manage their wealth for them.
Wealth
management is the coordination of a client's investment,
tax and estate plans into a comprehensive plan to achieve
his personal goals. It can be defined as a professional
service that combines financial or investment advice, accounting
or tax services and legal/estate planning. In fact, wealth
management is not just providing investment advice; an individual
can get all his financial planning done by this service.
Every individual needs a financial plan, whether he is from
a middle-income family or a HNI. The main task of any financial
planner is to satisfy his clients. Clients have their own
personal financial goal and it is the task of the financial
planner to help them achieve those goals.
After
the dot-com bubble bust, there was a sharp decline of the
indices in the stock markets worldwide and a number of investors
lost their hard earned money. Only later did the investors
realize that they had made a mistake by investing in poor
financial instruments. It was at this time that there opened
an opportunity for a new group of professionals financial
planners. Financial institutions too began looking for new
ways to earn profits, as the stock market bust reduced their
profit margins. The necessity and desire on both sides,
i.e., from the consumer and the supplier side, resulted
in a new profession called financial advisory or finance
managers. |
