Leveraging Private Wealth Management

Private banking has been a part of the Indian economy ever since banking system started in India. After the liberalisation of the Indian Banking Industry by the Reserve Bank of India, private banking systems in India gained a lot of momentum. Senior private bankers began setting up private wealth management firms to provide wealth management services. People began seeking their services to plan their wealth management strategy.

Why is wealth management important?

Wealth creation is a pursuit followed by everyone. However, successful management of wealth is not everybody’s forte. It calls for a lot of planning, discretion and commitment. No matter you earn money the hard way, win a lottery or inherit some wealth, without a well-planned strategy in place, wealth can get depleted before you realise it. A better quality of life and financial security are the major factors driving one’s efforts for wealth creation and management. However, in the endeavour of these, people often overlook that in the absence of proper management of assets, all wealth is potentially at stake of getting diminished. In order to facilitate the growth of wealth, it is best to trust private wealth management companies for their expertise. They have a rich experience of the financial market and can advise best on investment concerns.

Wealth management experts suggest that investment in Private Equity firms is a good option to grow wealth as it offers attractive Return on Investment (ROI).

Some benefits of investing in Private Equity firms:

• High ROI - Private Equity investors choose opportunities where they can invest into something of value at reduced costs, nurture it and wait for it to appreciate so that it can be sold for a profit. PE investors are prepared to wait for this scenario most of the times. They are usually willing to invest more money into the company if required, in the hope of maximizing the ROI.
• Great scope-Private equity firms offer a great scope as compared to the public markets. Be it a small manufacturing company or the largest division of a multi-national giant, any organization can be a private equity investment opportunity. Private Equity firms also attract public companies that are looking on to go private.
• Transparency and Accountability- Private Equity firm investors can hold the company accountable for their performance deliverables and target milestones. They can even bargain a chair on the board and exert a lot more authority than a public company stakeholder. Moreover, Private Equity firms grant direct access to investors if they want to get in touch with the top officials of the company; which is in quite contrast to a public sector company.

Considering the inherent economic strength of India, the scope of investments in companies which are not listed on the stock exchange seems to hold great prospects in the times to come.

Binny Aleena is Content writer who loves writing about Luxury Brands, Private Wealth Management, Private Equity Firms, Private Banking Systems, Taxation Services India, Wealth Management.