Wealth Advisor in India


Who Is a Wealth Advisor?

A Wealth advisor or a Wealth consultant is a financial expert who provides wealth management services such as investment management, estate management, and tax management, generally to high-net-worth individuals (HNIs). While these HNIs and wealthy families make up the majority of their clientele, wealth advisors also offer wealth management services to a broader range of clients, such as people with moderate to high financial resources. A Wealth planner specialises in guiding anyone looking to manage and grow their wealth and preserve it for future generations.

Roles and Responsibilities of a Certified Wealth Advisor

A certified wealth advisor plays a big role in managing your finances and helping you achieve your financial goals. Here are some of the responsibilities:

Services Provided by Tax Accountants

A Certified Wealth Advisor offers a variety of services to individuals, such as:

Financial Planning –

A Wealth Advisor can help you create financial plans to achieve your short-term and long-term financial goals. Goal-based financial planning is at the core of what a wealth advisor does. These financial plans also take risk profile and investment horizon into consideration and help you realise financial goals such as funding your children’s higher education and starting a new business. 

Investment Management-

With guidance from a wealth advisor, you will be able to choose suitable investment options aligned with your risk tolerance and financial goals. Advisors identify profitable investment opportunities and keep you informed about market trends and changes. They also monitor your investment portfolios and the market conditions and suggest necessary asset allocation readjustments as situations change or new opportunities emerge. 

Retirement Planning –

The dream of a peaceful post-retirement life can be realised with the help of a wealth advisor. A wealth advisor can make a retirement plan by first estimating the amount you would need to enjoy your golden years without any sacrifices in lifestyle. They then develop personalised investment strategies to grow your retirement savings.

Tax Planning –

With tax planning, you can minimise your tax liabilities legally. Wealth advisors specialise in making long-term tax-saving strategies tailored to your financial situation, so you can save more of your hard-earned money every year. They do so by taking advantage of the many deductions, exemptions, and benefits allowed in the Income Tax Act and recommending relevant investments. This not only saves you money but also helps you avoid penalties and disputes with the Income Tax Department. Wealth advisors also stay updated on the changes in tax laws, and can quickly readjust strategies so that compliance with tax authorities is maintained at all times. With a wealth advisor’s help, you can keep your mind at ease knowing that your taxes are in the hands of an expert.

Risk Management –

An important job of a wealth advisor is to preserve your wealth. They do a thorough risk assessment to identify any potential risks and implement strategies to mitigate them efficiently. They employ many techniques to reduce risk such as making sure you and your loved ones are insured, your investment portfolio is diversified, hedging, using financial models for making investment projections, and regularly reviewing your financial plan to adjust to changing market conditions.

Estate Planning –

Estate planning is sometimes also called succession or legacy planning. Essentially, estate planning aims to make sure that all your assets are smoothly transferred to your chosen beneficiaries after your passing. This is done by creating wills, setting up trusts, and nominating beneficiaries. In our country, many court cases arise due to disputes over inheritance and unclear succession plans. These cases sometimes even go on for generations, and cost a significant amount of money. A wealth advisor can help you develop a succession plan, so such legal battles can be prevented, and your wealth is timely passed on as per your wishes. 

Charity Planning –

Philanthropy is an important aspect of many high-net-worth individuals’ financial plans. Charity has a noble purpose, but beyond that, it can also provide tax benefits when structured well. A wealth advisor can make sure any donations you make qualify for tax deductions, like those to non-profit organisations and political parties under Section 80G of the Income Tax Act. 

Wealth Advisor vs Financial Advisor

A wealth advisor is a type of financial advisor. Generally, the term financial advisor is used to describe a financial professional who provides a wide range of financial services and advice to individuals and businesses of varying financial capacity. It is a broad term that can include professionals such as financial planners, tax advisors, mutual fund distributors, investment managers, and wealth advisors. Wealth advisors are financial advisors who specialise in managing, growing, and preserving wealth. Usually, they are employed by high net worth individuals. 

Here are some of the differences between a wealth advisor and a financial advisor:

Financial Advisor

Wealth Advisor

Financial advisors provide a wider range of services to their clients, such as budgeting, emergency planning, debt management, investing, and many others.

Wealth managers specialise in wealth accumulation, preservation, and transfer to future generations.

Financial advisors offer their services to a much wider client base. 

While wealth advisors also provide their services to people with moderate financial resources, they primarily serve high net worth individuals.

The relationship between a client and a financial advisor can last a short, medium, or long term.

Wealth advisors build long-term relationships with their clients, which can even span two or three generations. 

Financial advisors can earn certifications like Certified Financial Planner (CFP), which is accredited by the Financial Planning Standards Board (FPSB) India. Other certifications include Chartered Financial Analyst (CFA), SEBI Investment Adviser, Certified Management Accountant (CMA), IRDAI Certified Insurance Advisor, and more.

Wealth advisors hold basic or advanced-level certifications in wealth management. These include Chartered Wealth Manager (CWM) accredited by the American Academy of Financial Management India, and NISM and CRISIL Certified Wealth Manager (NCCWM), among others.

Faq's on wealth Planners

Yes, having a wealth advisor by one’s side is well worth it! A wealth advisor can give you invaluable investment advice, manage your investment portfolio, reduce tax liabilities, and plan for a smooth transfer of assets to your future generations. Their personalised approach can help grow your wealth, protect your assets, or plan for your legacy, all while minimising risks and tax liability.

A private wealth consultant is an advisor who serves high net worth individuals. These consultants offer investment advisory services for individuals such as tax optimisation and portfolio management. They focus on preserving and growing their client’s wealth while creating strategies for smooth wealth transfer to future generations.

The cost of hiring a wealth advisor depends on the specific service needed and the assets under management (AUM). They can charge a flat rate but generally, their fee is a percentage of AUM.