changing age equation
One of the biggest changes in wealth management revolves around the average age of decision makers. Wealth managers are witnessing a sea change in this sector, with Millennials moving ahead of their predecessors and injecting a much-needed dose of vitality and innovation into the environment. This generational shift in wealth is also visible from the IIFL Wealth Hurun India Rich List 2022 results, which indicate that the youngest on the list today is a teenager, compared to 37 a decade ago. The declining age of the wealthy also adds an element of risk-taking in the area of ​​wealth management because, being in their prime, these individuals are willing to take on more risk in pursuit of higher returns, which just wasn’t the case a decade or so ago. .
women leading the way
The next major trend that money managers have observed is the growing number of women clients who are at the forefront of the ecosystem. With decision-making power equal to that of their male counterparts, women are taking the reins of finance into their own hands and making decisions that authenticate their individual personality and needs. Gone are the days when a woman’s economic well-being depended on her father, brother or husband. Today, women are forging their own path, be it on their education and career fronts or in their financial lives. There is more awareness and understanding about the nuances of finance and wealth management is slowly turning into an area in which women now play an active role.
Gen Z makes a mark
As the average age of decision makers continues to trend downwards, there is one consumer segment that is playing a big part in making this a reality and that is Gen Z. The early Gen Z tribe, coming in and taking a leadership role in managing at least a portion of the portfolio. As indicated by the steady growth in demat accounts, retail investing in India has grown exponentially, and many young individuals today are well-versed in money matters and actively manage their investment portfolios. In this scenario, while they seek advice from money managers, these individuals are running the last mile of the race themselves, building a portfolio that reflects their unique personality and focus areas.
undisputed way forward
In the rapidly evolving Indian wealth management ecosystem, the biggest competitive advantage for managers now hinges on being India-focused. Having a large number of expert professionals on the ground gives savvy money managers a huge edge and puts them in a prime position as they enjoy unbridled access to most scenarios. Furthermore, the presence of a large team helps such firms innovate better, thus enabling them to better serve Indian institutional, NRI and domestic retail customers while unlocking untapped opportunities. Creating a product or platform is not a difficult task, wealth management firms today must focus on building trust and owning their clients and this can only be facilitated by providing a 360-degree view and making the client the unlinking center of the whole. Could money management exercise It is equally important to understand that the boundaries of support can often be amorphous and that money managers must participate holistically in their clients’ journey. This means you must have a ‘Performance Plus’ attitude.