The wealth management market, an integral part of the financial services sector in India, was valued at INR 113.32 Tn in 2018 and is expected to reach INR 338.67 Tn by 2024, expanding at a compound annual growth rate (CAGR) of ~20.02% during the 2019-2024 period. For the past few years, India has been witnessing the emergence of family office offerings, along with estate planning services. Indians have gradually become tolerant of capital market investment instruments than traditional investment instrument of gold and real estate. The Indian millionaire club incorporated 7,300 people in mid-2018, driving up the total number of millionaires to 3,43,000 in 2018. Major players, who are currently operating in the Indian wealth management market include Alpha Capital, Bajaj Capital Limited, Edelweiss Asset Management Limited, Karvy Private Wealth and Sanctum Wealth Management Limited.

Key growth drivers of the market

India is expected to be one of the powerful economies of the world in the next 10-15 years, owing to its strong bilateral ties. With the growth of the economy, income opportunities have increased, thereby giving rise to peoples disposable income. As a result, an attractive business environment has developed for wealth management firms.

With robust technological advancements in the field of financial services in the form of robo-advisors, artificial intelligence and the like, wealth management companies are now capable of providing highly personalized services that can fulfil the individual needs of investors. This in turn is giving rise to customer satisfaction and high investments in the field of financial services in India.

Key deterrents to the growth of the market

With increased usage of technology, risk of data breach and cyber fraud has increased. Between July 2018 and April 2019, data breaches cost Indian organizations INR 128 Mn. Such cases of high-profile financial scams, unethical practices by advisors with short-term objectives, and lack of effective investor protection regulations have contributed to insecurities among investors. This, in turn, is impeding the growth of wealth management companies across India.

Companies covered

Alpha Capital
Anand Rathi Wealth Services Limited
Bajaj Capital Limited
Centrum Wealth Management Limited
Edelweiss Asset Management Limited
IIFL Wealth Management Limited
Karvy Private Wealth
Motilal Oswal Wealth Management Limited
Sanctum Wealth Management Limited
Waterfield Advisors Private Limited