Wealth management is about how one manages one wealth. It is a very interesting domain and the services of managing one’s wealth in done both at the micro level as well as the macro level. It can be done by individuals, Banks , various financial institutions, etc Some companies even provide online services related to wealth management.
Wealth Management in India
In India, wealth management awareness has not been spread deeply among the individuals. Even, the wealth management services provided by Banks or Insurance companies are only finding a way to sell their products among the public, instead of creating awareness and the avenues to manage their wealth prudentially.
Factors affecting Wealth Management
We manage our wealth to fulfill our financial goals and have exposure in various products to optimize the returns of our investment. The products selected for the portfolio depends on the risk appetite of the investor. Also the monthly income of the investor has to be taken into account. It should be noted that the products suitable for a 22 year old will not be appropriate for a 52 year old. Similarly the products that suit a person with monthly income of Rs,25000/- will not suit a person whose monthly income is Rs.60000.
The factors that should be considered while designing a person’s wealth portfolio are :
- Age
- Health
- No of dependents
- Monthly income
- Time left for the financial goal
- Amount to be spend to meet the financial goal
- Net worth
- Existing Liabilities.
- Residential status.
