Services, Advantages and Disadvantages of Private Wealth Management in India

Private Wealth Management is the management that deals with the sophisticated financial solutions and highly customized investment management. They provide the financial planning session to the people that include the advices on the use of trusts and other estate planning vehicles, the use of hedging derivatives for large blocks of stock and business succession or stock option planning.

Private Wealth Management offers product and service on the demand of the wealthiest retail clients of investment firms. As the number of affluent investors had increased, so demand for sophisticated financial solutions and expertise throughout the world has been increased.

ICICI bank and Axis-Bank are very reputed and well known banks in the field of wealth management In India. ICICI Bank is using the services of global players like City group, Merrill Lynch and UBS for attracting and catching the customers for their Wealth Management business. Axis bank, one of India’s leading private sector bank also combined with “Banque Privee Edmond de Rothschild”, which is the Europe based wealth management expertise institution and is going to make new standard for the NRI people wealth management. In India, the Axis Bank is the fifth largest bank by market capitalization that provides payroll services to over 12000 corporates across 2.8 million salary accounts.

Services of Private Wealth Management Institutions:

1) Retirement Plan Services:

  • Defined Contribution Plans
  • IRA’s Custodian Or Trustee
  • Defined Benefit Plans

2) Custodian Services:

  • Income collection from Securities
  • Securities Safekeeping
  • Settlement of Securities trades as directed
  • Timely settlement delivery
  • Payment of fund when directed

3) Trust Services:

  • Revocable Trust
  • Charitable Trust
  • Irrevocable life Insurance Trust
  • Institutional Trust
  • Special Need Trust

Advantages of Private Wealth Management are:

  • The customer can easily know the investment strategy and analyze return and risk with the help of wealth management professional.
  • The Private wealth management professional provides the good service of tax planning like how customers can minimize save and the tax more money.
  • Customer can also manage their estate with the help of wealth management professional. Estate management provides protection of customer’s overall estate.
  • Those Banks which are engaged in business of wealth management professional are earning revenues from the foreign countries that mean outsourcing for economy.
  • Wealth management professional helps the customer in future planning for estate.

Disadvantages of Private Wealth Management are:

  • The big limitation of Wealth management is that they do not show their actual position to the customers. So, there may be chances of fraud and forgery with customers.
  • As we know that wealth management is now only related with the rich people and is not having any plans and solutions for poor, middle and lower class of people of society.
  • Thus wealth management reduces the scope of Management.
  • Mostly customers do not know the actual position of market because every thing is done by some Wealth management professional. So, that results in inflation and also there may be chances that the customers are in risk but they are showing the false return etc.

So, we can say that Private wealth management has various aspects in which some are favorable and some are very dangerous for the Indian economy. So, people should aware of this.