Wealth management services in India are often confused with an accumulation of money, rather than managing wealth. Our country has a growing number of millionaires and hence the problem is more prevalent here.
However, the concept of wealth management is different from portfolio management. It is a future activity and is more closely linked to your life. It is creating wealth to meet the financial goals of individuals and families. This may also include your philanthropic aspirations and seeing if your assets have grown and are distributed equitably.
While considering wealth management of their assets, many Indian millionaires make the following mistakes:
1) Doing it on your own
One of the biggest mistakes that millionaires of India make is managing assets on their own. Even the graduates of Business Studies cannot manage their wealth and concentrate on their profession simultaneously. Hence, professionals such as doctors, lawyers, and trained financial professionals need specialized wealth management support. This is due to the fact that one cannot segregate wealth in pre-determined compartments - 10% in fixed income, 40% in equities, 40% in real estate, and the rest in insurance. Professional wealth management service providers go a long way in understanding your needs, lifestyle, and family, and accordingly, they come up with a plan. BLUeant is a wealth management company that provides equity mutual funds in India, best mutual funds to invest in right now, best small cap mutual funds, best short-term mutual funds, equity stock market, long term equity fund, direct equity investment, and others to manage your wealth.
2) Choosing more than one provider
The high-net-worth individuals tend to make another mistake by picking up more than one service provider. Yes, the process of choosing a wealth manager should be elaborate, but you'd better have one person/company dedicated to growing your wealth. Please check the services they are providing and check their background too. After all, you will discuss your entire wealth and life with this person. Remember, talking openly to your manager and being able to disclose everything to him is a must.
3) Unjustified asset allocation
One of the most common mistakes is asset allocation in an unjustified way. This is a critical area where people don't explore much and work on a pattern. Though not watertight, what one should have clarity on are your broad financial goals. These goals can be in the form of the education of children, buying a farmhouse, you're the financial support of your family after your demise. Always remember, that systematic investment planning cannot take care of the allocation of your finances.
4) Neglecting estate planning
There have been many instances where a member of the family has deceased, who were involved in bitter legal quarrels over sharing the property. Planning a well well-in-advance will reduce the problems in your absence. Your community service activities should also be scheduled in the will. Wealth managers now offer trust services where they work for various philanthropic services and can be managed by the wealth managers.
Always ensure to go through the points listed above to avoid any hassle at the time of claim. All the genuine claims are usually settled by the financial institutions if the claims are genuine, provided the relevant documents are duly submitted by the requisite.
Visit BLUeant to manage your money in the most efficient way. Get the best and latest advice and suggestions from our wealth advisors Mr. Rohit Raman and Mr. Sachin Narang.
