- A career in wealth management is becoming more rewarding than conventional high-paying profiles like investment bankers, equity researchers, etc
- The number of multimillionaires in India is growing.
- The newly rich look for professional advice on managing their wealth.
The Emergence of India’s Wealth Management Business
The emergence of wealth management business in India has redefined the banking paradigm where investment banking is no more as rewarding, headhunters say. More and more bankers are jumping ship to become wealth managers, for salaries in the crores.
People are now considering a career in Wealth Management or Private Banking due to increased awareness about wealth creation, and various macroeconomic aspects.
As per an article from Inc42, although the percentage of wealthy individuals in India is small relative to developed markets, India has the second highest number of high-net-worth individuals (HNIs) amongst the BRICS nations. Hence, it is well-positioned as an attractive destination for wealth managers globally. India’s high net worth individual (HNI) population is expected to grow by 75% from 3.5 Lakhs in 2020 to 6.11 Lakhs in 2025.
Entrepreneurs who made millions by selling their startups are a relatively new addition to wealth managers’ client lists, as they seek to invest that money. They seek customized wealth management solutions as well as advice on succession planning, taxation, trust planning, and all investments.
The wealth management market is untapped and has enormous potential. If stats are to be believed, it is estimated there were $103 trillion of global assets under management (AUM) as of 2020 (latest data available).
Before we go ahead… What is wealth management?
Wealth management is the process of managing the existing wealth of corporations, and High Net-Worth Individuals (HNI) while seeking opportunities to rack up more. This is accomplished by developing a portfolio with tailored investment strategies.
The key to constructing a winning portfolio is to use expertise and experience to select the right mix of fund managers from various asset classes.
Wealth Management is an investment-advice discipline that encompasses financial planning, investment portfolio management, and a variety of pooled financial services.
Wealth management firms on a hiring spree
According to industry executives, leading wealth management firms are on a hiring spree, ramping up their teams, particularly at the senior leadership levels.
Glassdoor data indicates that the average starting salary for a Wealth Manager is ₹6,76550 per year in India. However, once you develop an Investment Book, there is no limit to your career growth.
Private bankers who join wealth management firms earn between 28 and 30% of the revenue generated as commissions. (This can vary from firm to firm!)
The Wealth Management industry has numerous Front, Middle, and Back office operations. The most popular roles are Relationship Managers (Single Point of Contact for the HNI Client and the Wealth Management Firm), Investment Counsellors, Portfolio Managers, and Client servicing roles to name a few.
If we look at Linkedin’s job section, there would be no less than 2000 jobs for wealth management roles alone.
Q. Is wealth management a good career in India?
Wealth management is becoming increasingly popular and burgeoning in the finance sector. It is providing numerous opportunities for advancement for ambitious and young professionals. It also offers numerous opportunities to build a lucrative career.
Q. How much do wealth managers make in India?
In most cases, you will begin with a reason to potentially quite lucrative salary but then will need to begin producing gross revenue for the firm and quickly your compensation will be entirely dependent on the amount of gross revenue brought in and your grid payout.
Salary gets you started in the wealth management industry. However, as you begin to transition over you will have a big variable compensation structure.
Also, the kind of compensation you can expect to earn in wealth management will be contingent on a number of different factors. These factors will include whether you’ve just joined the wealth management industry; are part of a team, work independently, or run your own team
The salaries of Wealth Managers in India range from $22,985 to $623,194, with a median salary of $111,963. The middle 57% of Wealth Managers make between $111,963 and $282,357, with the top 86% making $623,194.
(The salary depends on the kind of wealth management firm you have joined)
Q: What qualifications do you need to be a wealth manager?
- A master’s degree in either Economics, Finance, or Management is required.
- An advanced certification such as Certified Financial Planner (CFP) or Chartered Wealth Manager (CWM), is always advantageous.
- Past experience as a private banker in a bank or other wealth management firm guarantees that the right clientele is achieved.
- An analytical mindset, the capability of comprehending complicated ideas, strong mathematical skills, and good presentation skills is required.
- Knowledge of numerous micro and macroeconomic aspects will help you make a rewarding career in wealth management.
It is one of those jobs which comes at the intersection of knowledge and skills.
Q. Wealth management firms in India.
In alphabetical order,
- Aditya Birla Finance Limited,
- Anand Rathi Wealth,
- Avendus Capital Pvt. Ltd.,
- BNP Paribas Wealth Management,
- Bajaj Capital,
- DBS Treasures,
- Edelweiss Wealth Management,
- First Global Securities Pvt Ltd,
- Franklin Templeton Asset Management India Pvt Ltd,
- HDFC Bank Wealth,
- IIFL Wealth Management Limited,
- Kotak Investment Advisors Limited,
- L&T Financial Services Private Wealth,
- Morgan Stanley,
- Motilal Oswal Private Wealth,
- Muthoot FinCorp Ltd.,
- SBI Capital Markets,
- Sanctum Wealth Private Limited,
- Tata Capital Limited,
- Waterfield Advisors
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