Wealth Management

With Adani and Ambanis, now more Indians are joining the millionaires club. It also necessitates wealth management, which is steadily trending in India. What earnings, revenues, and savings people possess, they want to effectively manage them. This is where wealth management emerges in a key role.

It is actually pieces of advice or assistance to NRIs, investors, or interested people who want their wealth or finances to be managed by professionals. With these wealth management services, people hope for growth and legitimate safety of their funds or assets.

Mature Investors

Nearly 80% of households are likely to be middle income groups by 2030, which is way more than 50% in 2019. If you consider the net worth individual population, it is likely to be 75% up in 2025, which is 6.11 lakhs.

These statistics show the maturity of the Indian economy, where investors are more logical thinkers and focused.  They need worthy advice to park their hard-earned money in a safe alternative that can ensure consistent returns or income over time.

Here are the top trends that can help in managing their wealth properly.

Top Trends of Wealth Management that Will Rule in 2022

Because of digital innovations, the transformation is seen in wealth management firms. They are now closer to grabbing n number of opportunities.

Here are the top trending wealth management practices in India that you should follow.

• Digital Connectivity

The new approach of preferring digital-first is in these days. The new generation of Gen Z and millennial investors expect digital connections. This is simply because of the seamless and 24/7 engagement. They can chat, talk, or call on face time, WhatsApp or Zoom with financial advisors. Above that, these talks take place in real time, which ensures accessibility to portfolio data and investment possibilities. Now, establishing a relationship and building the loyalty of people of these demographics are easier. They can come across the need for tailored solutions, which can be provided accordingly.

• Hybrid Wealth Management

Hybrid stands for the mix of legacy and modern systems. The significance of human connections or personal relationships is a legacy. And, the power of modern digital solutions, such as AI tools or applications and self-service investment applications can never be neglected. By blending this physical connectivity with seamless digital experience, wealth managers are consistently maintaining empathy, transparency, convenience, and faster experiences.  Digital tools and automated processes have scaled productivity and sped up the response rate.

• Alternative Asset Classes Are Popular

NRIs and investors are now searching for non-traditional investment opportunities. They can be passive investment options, equity buying of unlisted companies, private equity investing, non-fungible tokens (NFTs), carbon credits, etc. Moreover, people are now more interested in investing in ESG funds. This is simply because young investors are more concerned about social and environmental factors. They are active and agile while looking for investment opportunities that can provide true value.

• Strict Regulatory Laws for Advisors

The apex regulator in India called the Securities and Exchange Board (SEBI) is now closely monitoring and regulating wealth these days. They are also focusing on the advisory fee models, data security, and privacy practices that these firms follow. The introduction of Artificial Intelligence (AI) /Machine Learning (ML), cryptocurrencies, and ESG funds has pushed an alarm because they can easily attract scams. Besides, taxes are skyrocketing. So, advisory firms require proactive solutions, regulations, policies, and strenuous compliance to ensure security.

• Smartly Save

India is where people believe in saving. Around  95% of India’s household wealth has been in the form of real estate, gold, jewelry, and fund savings. They are aware of the fact that an overly deposited wealth in non-financial assets can cost loss at the time of inflation. This is why they prefer a balanced approach. They invest in where they predict better returns from the liquidity of that asset. So, this legacy approach will be trending as always.

• Holistic Financial Plans

The advanced generation of investors is firmer and more ethical also. They know what they expect in life and how to achieve it. Simply put, they find more holistic investment alternatives, which can support their life and also help in welfare. This is why CSR investment, investment in retirement plans, estate planning, and social welfare investment would be a big trend this year.

• Personalised Experience

Investors are no longer happy with solutions that offer one-size-fits-all. They want more bespoke and relevant offerings that they decide in accordance with their needs. It is applicable to all types of investment options, marketing emails, and customer support. They want customized solutions, which can be recognised through a personalised experience. So, it’ll be trending this year.