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Before we explain what is Wealth management? It is quite essential to know the meaning of these two terms Wealth and Management.

What is Wealth?

Basically wealth is an abundance of variable material resources. The meaning of wealth is not straightforward. Wealth is basically a person’s net worth. Wealth can be explained as assets minus liabilities.

What is Management?

Management is the art of getting the work accomplished by the efforts of other persons and factors. Management involves Planning, Organizing, Staffing, Controlling, Directing an organization.

What is Wealth Management?

Wealth Management is a discipline that incorporates financial planning, Investment portfolio management and a number of financial services. It is a professional service it can also encompass all parts of a person’s financial life. Wealth management is done by wealth managers. Wealth managers can be MBAs, CFAs, certified financial planners or any credentialed professional money manager who works to enhance the growth and income. Investors must have already accumulated a proper amount of wealth for wealth management strategies to be efficient and effective. It can be provided by large company entities, independent financial advisers or multi-licensed portfolio managers. Their services are designed to focus on high-net worth customers. Wealth Managers use their experience in estate planning, risk management and legal specialists, to manage the holdings of high net worth client. Wealth managers must contain a current profile of client holdings.

Wealth management is an integrated process for helping clients manage their wealth. It involves huge a wide range of services and the services depend upon each investor but the condition is that services should include investment management, financial planning, retirement, Estate planning, tax planning, debt management and cash flow. It is based on the long term relationship with the customer.

It results in deeper customer relationship which leads to increased profitability and more client referrals. Wealth management offers wealth managers the opportunity to cross-sell a huge range of services and products to each customer as appropriate. Wealth management is an emerging sector.


Features of Wealth Management:

  • Allows customer to review risk profiles.
  • Track holdings against model portfolios fro returns.
  • Captures Customer’s details and risk profile.
  • On approval by client they execute financial plans.
  • Based on the advanced algorithms they provide tax coverage, education and insurance.
  • Interfaces with banks, portfolios management systems, price vendors and other agencies.
  • Provides dynamic search.
  • Document Management.
  • Dynamic user access control.

They handle information for the following segments:

  • Stocks.
  • Stock Options.
  • Bonds.
  • Funds.
  • Insurance.
  • Cash flows.
  • Education Planning.
  • Tax Planning.
  • Estate Planning.

Benefits of Wealth Management are as follows:

  • It is possible to revise risk profiles multiple times.
  • Safe, Reliable and scalable for clients.
  • Online access to returns.
  • Consolidated view of cash flows.
  • Online proposal generation.
  • Keeping accounts up to date.
  • Monitoring changes in client’s portfolio.
  • Multiple account reservations.
  • Multiple investment scenario analysis.
  • Allocation of Assets.

Process of Wealth Management includes:

Step1: Finding Facts
Step2: Investment Strategy
Step3: Allocation of Assets
Step4: Structuring Accounts
Step5: Structuring Implementation.
Step6: Communication
Step7: Annual review & Monitoring.
Step8: Refine Strategy.

First step to be considered is to create a profile of customer in which personal details, current financial situation and family circumstances. In personal details they involve income, savings, investments, retirement, tax status, Family. In step2 investment objectives and risk tolerance is to be undertaken. Then assets are allocated and it’s all about getting the balance right. After this wealth management need to consider the account structure that bets suits the client. To be highly communicative is quite necessary because it is an important aspect of client-wealth manager relationship. They organize regular face-to-face meetings. Then after monitoring it is essential to refine the strategies.


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