Essentials Of Private Wealth Management



Essentials Of Private Wealth Management



Wealth owners across the world seem to always be looking to grow their estate with minimum possible risks. Of course, the inclination to take risks, also known as risk appetite, varies from person to person. In India, private wealth management has come a long way since the time when the wealthiest owners invested only in real estate and gold. Not to say that it is a bad idea to consider these two as viable investment options, but the scope is a lot wider now especially with specific, process-based private wealth management services at the disposal of wealth owners. These services are provided by private firms that have an expertise in strategic investment, risk management and the monitoring of investment performance. Every wealth owner aspires to grow their investment up to a certain level in a definite time frame. At times, they may not be sure of the time factor, but they are aware of the big expenditures coming in the future (education of children, daughter's marriage, or simply an aspiration for a higher standard of living).


Based on these aspirations and/or high-expenditure events in life, the wealth managers decide on strategic asset allocation for their client. However, they also need to factor-in the risk aptitude of their clients. So, strategic asset allocation or portfolio management and keeping in mind the client's aspirations and needs; and at the same time, determining the risk appetite of the client are the critical factors. The latest techniques of investment evaluation and monitoring are needed for this. The wealth management industry in India has come of age, as currently, some top-notch players use scientific quantification methods for decision making. They have been very successful in growing the investment of their clients. Once the risk appetite of an owner has been determined, the next step is to appoint a dedicated wealth manager. Some firms of good repute employ professionals with investment advisory and management skills in different financial products. Based on the needs, aspirations and risk appetite of a client, the wealth manager who is adept in suitable investments is chosen.


This professional is capable of coming up with insightful investment ideas with portfolio diversification options that satisfies the specific needs of a client. Before making investment decisions, the reputed wealth management firms in India define the benchmarks based on factors already discussed above. Tactical asset allocation follows and the investment is monitored using various performance measurement techniques and robust reporting systems. The reports are sent to the clients on a regular basis, which are in an easy-to-understand format that helps them compare investment performance in different periods. Regardless of how well the investment performs, the wealth owners are always wary of an unforeseen circumstance that may bring down their value in the future. However, with the help of some quantitative investment evaluation models developed by wealth management firms in India, the investment of wealth owners is secured. By effective portfolio diversification, the wealth managers promise and deliver the best ROI on the investment of their clients.


If they have a dream, they will hold on to it tenaciously because they know that an unstoppable creative process will cause it to become reality. Such a person will also appreciate the need to always keep their mind clean so as to avoid giving expression to negative thoughts and emotions. This can be achieved by using positive thoughts to displace negative thoughts and emotions whenever these occur in the mind. Acquiring spiritual knowledge, in effect, enables a person to develop what may be called, mind management skills. That spiritual knowledge is performance-enhancing and life-improving cannot be denied. But then these questions come to mind: Why is the quality of life of religious people not noticeably different from that of non-religious people? And why are the populace of religious nations not better off than those of secular nations? The answer to these questions lies in the fact that the quality of spiritual knowledge available to us up until now is poor. In the established religious teachings, a lot of the facts provided are not backed by proof and many of the beliefs propagated cannot stand up to rational examination. Unverifiable conjectures about existence beyond this life are professed as spiritual realities. Obviously, knowledge that is so flawed cannot bring anyone great benefits. But here is cheering news. Quality spiritual knowledge is now available under the name, Spiritual Science. This is spiritual knowledge that was obtained using the scientific methods of observation, experimentation and logical deduction. In scope and depth, Spiritual Science provides sufficient spiritual knowledge that will enable a person attain full spiritual enlightenment. The opportunity to gain spiritual wealth and greatly enrich our lives has never been so good for the human race. We owe it to ourselves to get more out of life by acquiring this knowledge-based wealth.