From managing costs, finances and bond market, there is plenty of scope for aspirants who want to become wealth managers. As an emerging industry, there is a constrained resource pool. India, in the coming decades, presents a hopeful picture, says Dr Sanjiv Marwah
A strong GDP growth, a bright economic outlook, high savings rate and a comparatively young and rapidly-increasing residents of affluent Indian will give the fuel for the dream-run of the wealth management sector in India. Nowadays, many types of companies are engaged in the business of wealth management which is both about wealth conservation and formation. The premier insurance industry is flourishing because many bankers are adopting and playing safe games in the business of insurance, also called as Bancassurance.
Scope
Presently India needs close to 100,000 qualified wealth managers. The major dispute facing the Indian wealth management industry is people. As an emerging industry, there is a constrained resource pool. India, in the coming decades, presents to us a very hopeful picture, with all the fiscal components working in our favour. Also, India has one of the most eminent saving rates of 36 per cent, of which about five per cent is inducted towards the stock markets. This itself along with the boosting economic growth poses a huge untouched opportunity in stock broking sector.
Skills
Besides skill and proper training, one needs a brilliant network to get an engagement with High Net worth Individuals (HNI) and Ultra High Net worth Individuals (UHNI). Wealth managers should have very strong product knowledge with a solid understanding of various types of markets like equities, real estate, banking, insurance and the impact of macro-economic issues. Sales and negotiation skills are important to deal with clients effectively to get desired results.
The wealth management industry is a niche segment wherein the services are offered to individuals who have cumulative wealth and are looking to conserve it, and also maintain the same with the changes in their lifestyle. So any candidate looking for a career in this field should possess good market knowledge with efficient presentation and communication skills, apart from education and training.
Job Prospects
Although the need for chartered accountants and statisticians has been consistently growing, the facts that fund necessity keeps the market on its toes is reason enough for the growth in the sector. The top financial areas that offer rewarding career prospects include bank account related activities, private asset, finance and capital management etc. From managing costs, finances and bond market, there is plenty of scope for aspirants in this profession. One of the factors that work in the favour of a tremendous growth in this sector is that fund management in both stable and unstable economies is resistant to market movement. Rural financing is another area that promises wonderful growth.
Wealth management professionals are usually employed by—
Banks with large distribution models
Brokerage firm that concentrate on equity-led products
Eligibility
An individual looking for a career in wealth management should be a graduate. He/she should pursue CFA (Chartered Financial Analyst) course. After working for almost 3 to 4 years, the individual can go for MBA/PGDM from a reputed B-School. Companies will favour employees with four years of experience in selling insurance policies, different types of credits cards, financial etc.
Remuneration
A person working for an MNC can earn between Rs 12 lakhs and Rs 15 lakhs pa, while one working for a nationalised bank can earn Rs 8 lakhs to Rs 9 lakhs pa. A private equity, wealth manager can expect anything between Rs 15 lakhs and Rs 16 lakhs pa.
The writer is Director of ERA Business School.