Wealth Management
Personal FinanceWealth management is a comprehensive financial planning service that integrates investment management, tax planning, estate planning, insurance, and retirement planning into a unified strategy. It addresses the complete financial picture rather than individual product decisions.
In detail
Wealth management is relevant once you have accumulated investable assets above Rs 50 lakh and face increasingly complex decisions: optimal asset allocation across multiple accounts, tax-efficient withdrawal sequencing, estate planning, and managing concentrated positions (e.g., ESOPs, family business).
In India, wealth management services are offered by private banks (HDFC Private Banking, Kotak Private), independent wealth managers, and fee-only financial planners (SEBI-registered Investment Advisors). SEBI-registered fee-only advisors do not earn commissions -- their advice is aligned with your interest, not product sales.
For most retail investors with assets below Rs 50L: a simple DIY approach (index funds + PPF + term insurance + adequate health insurance) outperforms expensive wealth management products.
Real-life example
Nanda, 52, has Rs 2 Cr across FDs, LIC policies, property, EPF, and stocks accumulated over 30 years. A SEBI-registered wealth manager consolidates her picture: Rs 40L in underperforming LIC policies that can be surrendered and reinvested in equity funds; Rs 30L FDs generating taxable interest when NPS/PPF would be tax-free. Restructuring saves Rs 3-5L annually in unnecessary tax and creates Rs 40L more corpus by retirement.