Developing Role of Wealth Management Firm in India

1. Developing Role of Wealth Management Firm in India We all know of wealth management firms as the companies that help their customers manage funs and help them to decide how much they should invest and the funds they should invest in. but they are more than that. They also help the clients to management their assets and liabilities. For this, the firms first go through all the investment and assets and liabilities that a client holds, sees their net worth and then guides them to invest better on their investment cycle. These firms even help you out when you got to deal with credit management or the likes of hedge funds. So, these firms are not just any firms that manage your money, they are much more than that. They help you not just to earn money through investing, but also help you expand your wealth. Wealth isn’t always in terms of money, but also the amount of assets you own. When it comes to managing your assets, the finance companies in India providing this service generally take a very strategic approach toward managing these assets. This confined strictly to your portfolio of investment, all this to ensure that the client gets good returns. However, when we look at wealth management, you will see that there is a huge difference. Getting good returns is not the only goal of wealth management firms, but expanding this wealth also hold a major stand. When it comes to asset management, the goal shifts a little. Allocation of resources becomes an important part of the service. It all needs to be calculated along with the risk you are taking, the amount of liquidity present with the client at that time. A careful balance of high risk and fixed income would promise a big reward at the end. Some of the most common options of investment are equity shares, bonds, real estate and property, mutual funds etc. as the market changes, your personal goals must shift a little, this is when the management aspects discussed earlier come into the picture. Other than the investment banking, you might have also heard about something called hedge fund? What is it? It uses strategies to manage higher risk, in the hope that they would reap us great benefits. It is most of the times seen with the limited liability companies and partnerships and acquire financial assistance from individuals. These persons are high net individuals, the wealthy ones. People who have good risk bearing capabilities as compared to lower level investors. The managers of head funs generally look for clients who with these risk bearing capabilities presenting them with investment strategy. These strategies aim to give success to the investor from the fund. A well thought strategy is required to profess that they are separate or different. The generally come at a much higher cost even if the pool of investment may seem attractive, the two main parts of hedge funds are the two type of fees, namely, the management and the incentive fees. www.avendus.com