Tuesday, July 1, 2014

No Need Of Wealth Manager??

Krishnan Ganesh, who sold his online-tutoring company in Bangalore for $213 million and said he allocated part of his wealth for bonds and real estate, has no plans to use a money manager, except when he can’t access investments himself according to an article from Bloomberg. There are lots of other millionaires in India which also don`t use a money manager and try to allocate their money according to their own sense.

        About 86 percent of Indians’ household assets are in real estate and tangible investments such as gold. This kind of mentality, where investing is a passive exercise, did not encourage wealth managers in our country.  The lack of demand for wealth managers has led Big Boys like UBS AG, Morgan Stanley and Macquarie Group Ltd. to exit from this service in our country.

        Wealth managers try to allocate their client money in upcoming outperforming sectors and in different ratio, which reduces risk, improves rate of return and feeds money in almost every sector. This strategy helps to improve the overall economy of the country and not just a few sectors(like real estate in our country).

        My view is, when investors are going to invest a good amount of their account, then they must consult money managers, which can help a lot to make good investment decisions.

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