Investing with noble intent

Featured article in The Hindu Business Line on IMPACT INVESTING; Investing with a noble intent

Original link to the article: http://www.thehindubusinessline.com/features/investment-world/market-strategy/article3364563.ece

Money Minder - Life and Prospects of a Wealth Manager

Money Minder - Life and Prospects of a Wealth Manager (Source: HIndustan Times)

 The lowdown

Wealth management is a service that provides customised investment solutions to clients. It is a discipline that includes financial planning and investment portfolio management. High networth individuals (HNWIs) and business families may seek the advice of wealth managers to assist them in estate planning, banking and tax-related matters. India is on the trajectory of becoming a new world player that will host the highest number of millionaires. As per the Wealth Report 2012 by Knight Frank and Citi, there are around 18,000 centa-millionaires (with US$100 million in disposable assets) in the region covering South-East Asia, China and Japan that will eventually increase to 26,000 by 2016. India will constitute a major portion of this which implies that wealth management does have a promising future. Wealth management as an industry is largely dependent on the financial health of a country. However, the industry has seen an increased appetite for alternate assets such as real estate and gold that has helped it to sail smoothly. A good wealth manager is one who is able to help clients’ reap profits even in a turbulent market.

Clockwork

The day begins in the morning, around 8 a.m. and usually there are no fixed timings. A typical day in the life of a wealth manager:

8 am: Reach office

9 am: Morning meeting to discuss the agenda of the day

Noon: Brief team members; prepare a report

8 pm: Leave for home

The payoff

The scale depends upon the profile; fresh post graduates can earn in the range of Rs. 4 lakh per annum to Rs. 6 lakh per annum, which goes up as one scales up the ladder. Great potential in terms of remuneration  as it is directly proportional to the business that one drives and one’s ability to assist clients in wealth creation.

Skills/Traits

·         Aptitude to handle HNI clients; these clients are very demanding in terms of service and good relations

·         Top-of-the line communication skills

·         Well-versed with different sets of wealth products — mutual funds, private equity, structured product/deals, real estate (private equity), portfolio management services, arbitrage strategies etc

·         Should have the ability to handle difficult situations and be a troubleshooter

Getting there

After completing Class 12 in the commerce stream, opt for a bachelor’s degree in business studies or business administration. Bachelor of financial and investment analysis is another course you can pursue. A wealth manager must have good command over the products and happenings in the industry; he should also have great communication skills. A fresh graduate can enter the industry directly but it is always better to have a professional degree before entering the industry. Some courses related to wealth management can also help  in gaining expertise in the field.

Institutes and URLs

In India, there is no established wealth management institute; Financial Planning Standards Board India, which offers CFPs is  confined to financial planning. However, the Association of International Wealth Management (AIWM), recently set up its office in India, through an Indian intermediary, AIWM India which offers training cum certification in India. The course is relative and focuses completely on wealth management. There is also another global course, CAIA which can be a good learning point from an alternate assets perspective

* Association of International Wealth Management Indiahttp://aiwmindia.com

* Financial Planning Standards Board, Mumbaihttp://www.fpsbindia.org/

Pros and Cons

·         Extremely challenging and intellectually stimulating job

·         Money is good

·         As a wealth manager, you must be extremely passionate about your work, clients and services

·         The job involves networking skills with the high networth individuals 

·         High-pressure job

·         Involves long hours

·         Excessive competition

A wealth manager helps clients allocate assets and suggests the right product depending upon the risk profile. He also assists clients in estate planning which has now become a rage

- Amar Ranu, senior manager, Motilal Oswal Wealth Management, Mumbai

Source: Hindustan Times, Delhi Edition, Dated - April 24, 2012

Link: http://www.hindustantimes.com/HTEducation/Chunk-HT-UI-HTEducationSectionPage-GreatCareers/Money-minder/SP-Article1-845339.aspx