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Why Rethink?

We mapped the experiences of a bunch of Ultra High-Net-Worth Individuals (Net Worth > 100 crores) with the present wealth management system. This is the most sought-after-segment and every wealth manager will give an arm and a leg to have them as their customer. A few notable findings:

  • They’ve been (mis) sold products which they could have done without.
  • They’ve incurred high cost of intermediation.
  • They’ve struggled to get accurate and relevant MIS from their wealth managers.

This clearly indicates that the present system is broken. You deserve to invest your wealth well and reap the rewards with complete ease & joy. Wealth management as it is practised today does not align with this thought. It does not put you, the investor, at the focal point. Primary focus is instead on the bottom line and enterprise valuation. It is riddled with complexities and myths which needs to be busted.

Industry myths and realities:

Myth 1: Wealth management is only for the very rich.

Reality: We believe otherwise. Everyone deserves a wealth manager. Even if you have a small pot of money that can be invested you need a wealth manager, and we can help you.

Myth 2: Wealth management needs deep expertise.

Reality: Nope. It is fairly simple to comprehend and it is not technically complex. With a little nudge and a bit of guidance you can be your own wealth manager. Talk to us.

Myth 3: Split your wealth between many managers.

Reality: Keep it simple and have one wealth manager. This will help you have a single window view and aid the wealth manager to deploy your money with focus.

Myth 4: Wealth managers should focus on returns by timing it right.

Reality: Markets are unpredictable and even an experienced wealth manager cannot be an oracle. They must focus on managing the two controllables - risk and cost.

Myth 5: Wealth management is about the right product.

Reality: If that was true it would be easier that it is now. It is about investing in the right mix of assets that suits your future goals, suits your risk appetite and brings you joy.

Myth 6 - It does not matter how my wealth manager earns.

Reality: It matters a lot, in fact, it is imperative that they earn only from you. Else, you will be vulnerable to being sold expensive products that give them a higher commission.

And then there is the biggest reality of them all -

Your wealth manager is probably not qualified as an investment advisor.

There are many wealth managers around. However just around 1,300 of them have registered themselves as investment advisors.

What does this mean?

Registered advisors earn by charging a fee and so they are focused on your interests. Legally speaking, only they can render advisory services. Rest earn through commissions from third party or their firm’s investment products. That makes them less suitable or effective to manage your wealth. Find a registered advisor and hire them as your wealth manager.

To sum up, the wealth management practice is not all investor-centric. This needs to change ground up. We are rethinking our approach to infuse a new dawn to the industry and the practice. Participate in our upcoming online webinars to know more.

If you are looking for a Wealth Management ally, you have reached the right place.