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What is Wealth Management?

Wealth Management is a financial gateway of investment advisory combining and incorporating the practices of personal investment management, financial advisory, planning disciplines as well as a number of aggregated financial services directly for the benefit of high-net-worth clients, small business owners, and families. It also takes the expertise of credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, real state planning, legal resources, tax professionals and investment management.  A wealth Manager belongs to the background of financial professionals ranging from

  • Financial advisors, brokers, private bankers and family office representatives being certified to be acting as Certified Financial Planners, MBAs, CFA Charterholders etc  with the main motive of enhancing the income, growth and tax-favored treatment of long-term investors.
  • It also include an array of activities like philanthropic counselling or coordination of the governance, routine administrative matters of large families.
  • To have a well established model of wealth management, there should be a significant amount of wealth to be accumulated.
  • The term “wealth management” occurs as early as 1933.
  • It came into more general use in the elite retail (or “Private Client”) divisions of firms such as Goldman Sachs, or Morgan Stanley.
  • The wealthiest retail clients of investment firm backed with model of private wealth management demands greater level of service, product offering and sales personnel than that received by average clients as there is an increased demand for sophistication in financial solutions and expertise throughout world.
  • With the advent of late 1980’s private banks and brokerage firms understanding value for wealth management began to offer seminars and client events designed to showcase the expertise and capabilities of the sponsoring firms.
  • This in turn enabled new business models of Family Office Exchange in 1990, the Institute for Private Investors in 1991, and CCC Alliance in 1995. These new entities aimed to educate the ultra-wealthy investor and to provide a network of peers for  ultra-high-net worth individuals and their families.

The widespread notion of Wealth Management as a stream of education are offered by several universities like American Academy of Financial Management rebranded as International Academy of Financial Management offering Chartered Wealth Manager Program closely followed by Wharton School of the University of Pennsylvania, University of Chicago, Stanford University who offers 5 days programmes. In 2009, Columbia University offered a three day program on Value investigating designed for high-net investors. The biggest advantage of incorporating wealth management are:

ü  It can be provided by large corporate entities, independent financial advisers or multi-licensed portfolio managers whose services are designed to focus on high-net-worth clients.

ü Large Banks and Brokerage houses can create segmented market strategies based on this for selling both proprietary and non-proprietary products and services to high end investors etc.

From the time the Economic crisis hit the Financial market, there has been large changes in the traditional thinking about investing and asset allocation, diversification, and correlation. In 2013 this year, the wealth-management advisors must have access to an objective content repository. Thus Wealth management is in need for better financial estimate, improve economic condition, analyse market condition prevailing and thus strategise the plan for investment from high-end investors and banking concerns.

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