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Reasons Why You Should Choose a Career in Wealth Management

Gone are the days when wealth management career was not taken very seriously in India. Investment Banking was the first preference when it came to making a career in finance. However, times are fast changing now, and one finds a rising number of aspirants considering wealth management career seriously due to the bright career prospects that it offers.

Are you passionate about mathematics and calculations and toying with the idea of working in wealth management? Well, congratulate yourself first for thinking in the right direction!

Wealth Management or Investment Banking?

Today, the two most rewarding career choices within the financial sector are wealth management and investment banking. While these two fields are from the financial sector with plenty of interaction and overlapping, they are different when it comes to job roles and responsibilities. Whether one wishes to be a wealth manager or an investment banker, either a Bachelor's degree in Business or Master of Business Administration is considered as a basic foundation for a career in the financial sector.

While the main job of an investment banker is to provide financial services and advice to corporate entities, the wealth manager offers a personal service to individuals. Investment bankers deal with multi-billion-dollars’ worth of transactions and negotiate complex deals within hostile and challenging environments; Wealth managers take care of HNWIs and wealthy people seeking wealth management services.

A wealth manager is a relationship manager, as well as an investment advisor for his client. He has to understand his client, know the kind of investments considered by his client, and be responsible for meeting the needs and demands of his client. Sometimes, the wealth manager has an entire team of people working together for an ultra-high net worth client.

Why become a wealth manager

Oxfam.org states that there are 119 billionaires in India in 2018. This number was 9 in 2000 and increased to 101 in 2017. It is projected that from 2018 to 2022, India will produce 70 new millionaires every day. This and many more such statistics point to the fact that being a wealth manager certainly is a lucrative career option.

This has led to an era of new-age asset classes, growing investments, and overall growth in wealth. The stage is set for a new breed of professionals who can take advantage of the changing environment and explore promising wealth management space.

Here are some good reasons as to why you should seriously consider a career as a wealth manager:

Growing awareness among wealthy citizens

Many people are successful in creating wealth but are not very good at managing it. Moreover, the inflationary economy and turbulent financial conditions have forced many to get serious about their hard-earned cash and manage it well. Only an experienced wealth manager can steer them in the right direction, and thus, it means higher demand for such skills.

Shortage of experienced wealth managers

While the wealthy citizens and their wealth are growing at a steady rate, there is surely a shortage of wealth management talent in the financial sector. One should take advantage of the nascent stage of the industry and step in at the right moment and get an advantage over others who step in later. The industry is on the lookout for highly qualified, ethical, and experienced managers. So, if you have the right skill sets, just jump on to the bandwagon.

The timing is right

Thanks to the growing awareness and rising demand, one finds a constant surge in the number of wealth management firms in the country and the financial sector worldwide. Thus, opportunities are great with global entrants as well as domestic firms, such as Citibank, HDFC, Standard Chartered, ICICI, and other non-banking entities. Hence, this is the right time to enter the field and cater to the demand for wealth management.

Handsome pay packages

Economic Times reports that wealth management experts carry the potential to earn up to INR 1-2 crore every year. Their major earnings are based on the commissions they earn on the revenue they create for their clients. Those commissions are about 28% to 30%, and that translates into a lucrative pay package, and this is another good reason to join the field. Along with a good pay package, they also enjoy bonuses that are four times more and perks like could be signature watches, exquisite jewellery, and even luxury cars from their clients!

Manage Money Well To Make Money

Efficient finance analysts handle the fortunes of the most powerful individuals in the country. In 2004, for example, when Divesh Makan, private client contractor of the Goldman Sachs Company quit Goldman Sachs in 2008 and moved to Morgan Stanley, a signing bonus of about $20 million is claimed to have been paid (WSJ.com)

Be an Entrepreneur

In wealth management domain of private banking career, you don't have supervisors rather you need to focus on clients. This is a work for self-starters with a different streak. Besides, financial advisors may set up their branch as they get more advanced in their wealth management career. This offers the financial manager great power and freedom to work. When one gains enough confidence to protect the clients’ wealth, do retirement planning, and give tangible benefits to them while expressing one’s fears and hopes, one can be an independent wealth management adviser.

Conclusion

The financial sector is always looking for certified and experienced wealth managers. The educational background and personal skills are more important for someone looking for a private banking career. Apart from having knowledge of his field, he should have good communication skills and carry a pleasing personality. Fluency in local language or familiarity with another culture is always considered a plus point for a wealth manager.

The global and domestic wealth management institutions are planning to hire a much higher number of quality wealth managers in the coming years. Those numbers are a lot greater than other conventional profiles like equity researchers or investment bankers. Now that you have so many good reasons to become a Wealth Manager, develop the right skill sets and look ahead for a rewarding career.

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