What is Wealth Management in India? Well, the primary function of a family office is the management of family wealth. To do this, a family office spreads a family’s assets over several reputable institutions to diversify the counterparty risk. It then coordinates with those banks or financial institutions and oversees the management of these assets and keeps track of them. A family office advisor coordinates with all these organisations 24/7 to monitor the control of wealth on a real-time basis.
Diversification of Your Assets
The need for diversifying wealth increases with the increase in assets and their value. It is crucial to reduce counterparty risks. But this can also pose quite a challenge. It is because diversification of wealth includes several financial institutions in different locations. So the systems and transactions involved produce problems in wealth management in India.
The Family Office’s Role in Wealth Management
A family office plays a vital role in this and makes this hard-looking task very easy. A family office helps you to establish the family’s risk profile, investment horizon and investment objectives. It selects the various institutions that would be involved in the process of the diversification, checks and coordinates with them and even communicates with them regarding the assets and their management process. It consolidates all the assets into daily, monthly or quarterly reports. Lastly, it keeps tabs on them by analysing and monitoring them.
Private Banking
The family offices coordinate with several banks and network with them on behalf of their clients. They prefer to work with the best private banks, and their network is spread over several jurisdictions. Family offices make sure to choose banks that have easier accessibility and provide better services
Wealth Management Services
With the devastating downfall of the economy, more and more people are getting cautious about their assets. Terefore, this is increasing the trend and requirement of these family offices to a great extent, making them an excellent prospect for the economic influence of the future.
Family-owned businesses are one of the most massive investment structures today. This is because most of the wealthy families think it is reasonable to have a family business to set a proper placement and return source and have steady money for themselves as well as for future generations. With the rising wave of this mindset, as the family businesses rise, the need for quality family office advisors rises as well.
- Our Family office advisors check the overall financial situation of our client.
- Analysing the different aspects of the family’s finances and determine where it stands.
- We are defining various investment objectives of the client
- We are calculating the risk profile and investment horizon.
- Allocating global asset and strategising investments as suitable for the client.
- Evaluation of non registered securities.
- Administering and advising on banking relationships.
- Opening and operating private bank accounts on behalf of the client
Monitoring and Reporting Wealth Management Services
Private banks manage the client’s assets in a discretionary manner or act as investment advisors. In the first case, the client agrees beforehand to all the risk appetites, and the bank makes all investments on the client’s behalf. But in the second case, when the bank is acting as an investment advisor, it takes the responsibility of the custodian of the client’s assets and makes regular investment suggestions. Sometimes, the client chooses the same mandate as all of the banks over which his or her assets are spread. So, this allows several banks to manage the assets as well as the investment returns on them for the client.
Different banks specialise in various aspects of investments and returns. Since a multi-family office often connects with an extensive network of banks, it has the benefit of having all the knowledge of the functioning and specialities of the different banks. A family office can even take the full responsibility of managing the assets. Because this kind of experience and expertise is beneficial to a family with large assets. Some banks are more conservative regarding the returns and investments while some banks are more aggressive about it.
What do they do?
- Keeping a tab on the various services provided by banks and reporting them while analysing them with the performance of families.
- Analysing and reporting global bank accounts, all family assets (including non-bankable assets), overall performances, rank adjusted performances and risk attribution.
- Performing benchmark comparison
- Monitoring annual fiscal performances
- Analysing and report risks
- We are providing an online reporting system
It could also be the case with the advisory mandates. In addition, each one has a different area of expertise and a unique approach in these matters. A multi-family office cooperates with a lot of banks and involves a lot of families. Thus has better experience and superior knowledge regarding these matters. They can easily compare notes on the different banks. Hence, choosing the best option for a family based on their assets and their requirements.
Our Advisory Service for Wealth Management in India
As a family business advisory firm, we possess a unique evaluation process. It enables us to ultimately provide you with professional advice on specific family office related to wealth management issues. We review various aspect of your business, its functioning and its management and then help you decide the type of service that would best suit your needs and be perfect for you. The value and size of your assets along with jurisdictions, determine the kind of family office service you would require. We help you choose that.
For a family with significant wealth, a multi-family office system is more suitable. In contrast, some other families may benefit more from an independent family office advisor. So, it is an outstanding choice and requires proper attention and thought. We evaluate every aspect very carefully to ensure you make the right decision and benefit to the fullest.
