By Mr. Arun Kabra Chief Financial Officer & President – Enterprise Business, Times Professional Learning
Wealth management is increasingly popular and burgeoning in the finance sector and offering several avenues for growth for ambitious and young professionals. It also provides plenty of opportunities to build a lucrative career.
By 2017, there were close to 2,70,000 HNIs in India and estimated to reach 9,50,000 by 2027. With the increase in the number and wealth of High-Net-Worth Individuals (HNWIs) and Ultra-High Net Worth Individuals (UHNWIs), there is also an increase in the demand for competent wealth managers who can offer holistic and integrated wealth management services.
In India, wealth management involves financial and investment counselling for affluent clients. The wealth managers make decisions in the client’s interest by reducing financial risks and opening the door to many profitable options. The rising demand for different investment options has played a significant role in making this industry reach new heights. Undoubtedly, India’s wealth management industry has come of age in the last five years.
Evolution of the Wealth Management Industry
The wealth management industry has come out as one of the most thriving industries around the globe. In 2020 the global wealth management market was valued at $1.25 trillion and projected to reach $3.43 trillion by 2030. The aspiration for a luxurious and secured lifestyle has pushed people to figure out various sources of income. One such source is investments in profitable ventures, assets, stocks and more.
India has become home to several fintech startups that have created waves of change in the industry. Advanced technologies like robo-advisor, artificial intelligence (AI), robotic process automation, and digital identification (ID) have made their mark in the wealth management industry. The digitisation of financial services has created a need for a workforce skilled in technology.
The wealth management industry is rapidly growing, and so is the demand for credible wealth managers. Boston Consulting Group (BCG) published a report ‘Global Wealth 2021: When Clients Take the Lead’ that stated, “Financial wealth grew among Indians at 11 per cent per annum from 2015 to 2020 and further expected to increase at 10 per cent per annum to US$ 5.5 trillion by 2025.”
Career Journey as a Wealth Manager
If you are a fresh college graduate interested in wealth management, the role of an assistant relationship manager would be the first step for you. When you progress to the next level, you will no longer assist another manager, rather be responsible for handling your own clients as a relationship manager or client advisor. With more experience, these professionals can also eventually work for a family office or start their own firm. As a senior investment professional, you can also eventually transition into private wealth management.