Everything you need to know about Wealth Management

Wealth management is a branch of financial advisory service that involves consulting affluent clients on their financial needs, goals and investments. In simple terms, a wealth manager acts as an advisor to their client in matters of investments and managing their wealth. They offer tailor-made and personalised financial strategies to their clients based on their individual financial needs. Wealth management involves a broad spectrum of services like legal and estate planning, tax services, retirement planning and more. Affluent clients can seek advice from an individual expert or even hire a bigger wealth management firm based on their business needs. Hiring a wealth management firm will give the clients access to a bigger team of experts as opposed to only one individual. 

 

Wealth managers usually charge a fee based on the services they provide. This fee can differ across each service provider. For example, some wealth managers charge an hourly rate for their advisory services, some charge a flat rate etc. Most of these managers charge a certain percentage of assets they manage. You can generally see this fee in the range of 0.50% to 1%, but this varies across different accounts. While this percentage can seem like a very small number, affluent clients usually have a very big portfolio that ranges in millions of dollars. Since affluent clients have a high net worth, it’s important for them to be able to trust their advisors and consultants. It’s because they’re dealing with a lot of money. This is why the designation and background of their advisors is crucial. The top 3 financial certifications include Chartered Financial Analyst, Certified Financial Planner and Personal Financial Specialist. Before you hire a professional service or an individual to manage your wealth, it’s also important to vet their credentials and past work in the market. This is to avoid getting stuck with a service provider you can’t trust. Just like there are many investment banking firms in India, there also exist many wealth management firms that specialise in this particular division.