With the economic boom catapulting stock and real estate prices to an all-time high and salaries hitting the roof, the wealth and disposable incomes of several million Indians have grown substantially during the past two decades. As a consequence, India has a stronger demand for wealth management services which have emerged as a well rewarding option for the Indian bankers. The massive growth of financial markets, the complexities involved in the emerging markets and the degree of specialization required in the area of wealth management are a few of the specific reasons for the growth of wealth management services in India.
Wealth management/Investment Management Service (IMS) is an important revenue stream for banks and financial institutions that have rapidly grown over the past few years. Banks are now setting up special cells to monitor and study investment opportunities globally and to examine products offered by IMS. Banks are using this information base to advice clients of the investment opportunities available and deploy clients' funds into a variety of investment avenues. Due to its highly-specialized nature and potential for higher earnings, banks have identified wealth management as a business opportunity. A robust economy, spiralling stock markets and an increase in spending power have turned the spotlight on this sector.
Wealth management is a term that originated in the US during 1990s. It can be regarded as a sophisticated form of private banking that provides various types of investment, banking and insurance services. Wealth management can also be classified into advanced form of financial planning providing individuals and families with services such as private banking, estate planning, asset management, taxation advice and portfolio management. Accordingly, wealth management encompasses asset management, client advisory services and the distribution of investment products. |
