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According to Ajay Srinivasan, one of the biggest names in the world of finances, u201cThe wealth management Industry AUM is forecast to grow from INR 95 lakh crore currently to INR 200 lakh crore by FY29, given the fact that only 15% of wealth is under professional advice in our country.<br><br>
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The wealth landscape in India has undergone rapid transformation over the past few months. This transformation is mainly driven by rising average income, increasing financial literacy, and awareness and proliferation of digital services. The Indian capital markets have also shown strong performance over the past few years. This has once again ensured that there is a rapid development in the way businesses operate. As per Ajay Srinivasan , India arguably stands at the cusp of a compelling wealth creation wave. India, with its favourable demographics, is one of the fastest-growing large economies in the world and will likely be so for some time. Along with this growth in national income is a fall in fertility rates, leading to a greater increase in per capita income.
The Growth In India's Wealth Management Industry: India's wealth management industry has grown rapidly, reflecting strong economic growth and financialisation of savings. The total assets under management in the sector have been rising rapidly over the past few years. According to Ajay Srinivasan, one of the biggest names in the world of finances, “The wealth management Industry AUM is forecast to grow from INR 95 lakh crore currently to INR 200 lakh crore by FY29, given the fact that only 15% of wealth is under professional advice in our country. The creation of a new class of wealthy who invest differently, the intergenerational wealth transfer into a generation more attuned to financial assets and expansion into lower-tier cities will drive strong growth and this mega trend. “
The Transformation In The Valuation of Household Assets: The total household assets in India have also grown significantly over the last decade. Traditionally, Indian households have favoured various physical assets like real estate and gold. As household income rises, the lookout for more flexible and diverse investment avenues is also becoming more prominent. Hence, India is witnessing a shift towards physical assets driven by changing economic dynamics and preferences. As of FY 2024, the top 4 to 5% of Indian households held around 1.1 trillion USD in financial wealth. However, an estimated 0.7 trillion USD was handled by the registered wealth managers. This further indicates significant contact potential. This structural shift underway in our economy is undoubtedly going to create many opportunities.
India’s Current Wealth Management Landscape: The competitive landscape of India's wealth management is a mix of established banking giants, international private banks, domestic firms, etc. All these institutions are trying to establish an extraordinary position for themselves in the world of finance. Banking giants currently dominate the financial market. However, there are a lot of other financial institutions as well that have leveraged their large client base and customer trust to capture a significant market share in the segment. Some of the big names in the Indian financial market include ICICI Bank, Kotak Mahindra Bank, Aditya Birla Capital, etc. Out of these, Aditya Birla Capital is another name which is closely linked to the financial sector. The company was formerly led by Ajay Srinivasan, who has a big role to play in shaping the country’s financial sector.
