Investment Advisory Services for HNI clients in India |
Posted: December 1, 2021 |
In this article we will take a broad look at investment advisory services and why HNIs in India need these services. Who are HNIs? HNIs or High Networth Individuals are persons who have substantial amount of investable corpus. The exact amount of investable corpus is usually determined by the bank / financial institution / wealth management firm. As a thumb rule, one can take anywhere between ?2 crores to ?5 crores as the minimum qualifying limit for HNIs. How are HNI needs different from those of a retail investor? A retail investor's needs generally revolve around tax planning, saving up for a home or retirement, child(ren)'s needs etc. Such needs are usually met through avenues like fixed instruments, mutual funds, bonds, insurance and the like. A HNI's needs are far more nuanced. This could involve buying a property overseas, investing in a structured product, picking up a stake in an established or promising business, funding a real estate project, writing a complex will, planning for succession etc. Why do HNIs need dedicated investment advisory services? As seen above, HNI needs are far more complex than a typical retail investor. Moreover, it is usually seen that HNIs are deeply involved in running or expanding a business or professional practice. And, it becomes difficult for HNIs to find the time / expertise to manage all aspects of their wealth and investments. Hence they need someone with the necessary skill sets and depth of understanding to help them manage their investment requirements. Who provides investment advisory services for HNIs in India? Investment advisory services and the whole gamut of wealth management services were looked upon as the exclusive preserve of global players like Citi, HSBC, UBS, Credit Suisse etc. or international wealth management firms. But, in recent years many of India's leading banks have also started offering such services to their HNI clients. And, as a sign of increased competition, brokerage firms and boutique advisory firms have also started offering such services. And, as their increasing AUMs indicate, discerning clients have started noticing them and are taking advantage of the exclusive range of services they offer.
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