The document discusses the emerging changes in the wealth management industry in India. It notes that India's strong GDP growth is making it an attractive market for wealth management firms. However, financial inclusion and literacy remains low. Most Indians would trust banks with their money. The size of the HNWI population and wealth management industry is growing rapidly in India. There is a shift from unorganized to organized wealth management sectors. Firms are focusing on building trust and providing holistic advice through qualified advisors. New certifications from organizations like the American Academy of Financial Management can help improve the skills and qualifications of advisors in India.

1. The Emerging Changes in the
Wealth Management Spectrum
in India
Presented by :
Vyas Rai Nagpal, BA LLB

2. Transformation of the Industry
 The Wealth Management industry in India is a
prime example of the success of free competition
in the country
 With a GDP growth rate hovering around the 9%
mark and a strong future outlook, India’s growth
story is making it an increasingly attractive market
for wealth management firms. This trend is
expected to continue, with India estimated to
become the third largest global economy by
2030. (Source: Cognizant Reports)

3. Current State of Financial Inclusion
* Source: AMFI, CBDT, RBI, SEBI, NSDL, CDSL & IIMS Dataworks Survey 2007

4. Current State of Financial Inclusion
Total Gross Savings 2005-06 (P) 2006-07 (P) 2007-08 #
(Rs In Crores) 597,694 768,730 734,372
P : Provisional. # : Preliminary Estimates * Source: RBI Data, 2008

5. With whom would Indians trust their
money?
* Source: IIMS Dataworks Survey 2007

6. Selling Preferences of Financial
Intermediaries
Business Profile
Age Profile
 Financial Intermediaries’ profile is not restricted to a single product or service LI : Life Insurance
 Scope for skilled employment generation at varying age profiles
* Source: IIMS Dataworks
2008

7. Wealth Managers – CFOs to Individuals

8. Advisors Satisfaction to the Client

9. Size and Growth of WM Industry
The total size of the HNWI population in India is just 53,000 a meager figure compared with a mature
market such as the U.S. However, with the total HNWI population presently growing at over 20%
CAGR, and the value of liquid assets expected to grow at 19.8% CAGR (see Figure 1), India is one
of the fastest growing wealth management markets. Also, overall HNWI liquid assets (when
measured as a percentage of Indian GDP) are increasing at a healthy pace, indicating the expansion
of investable wealth in the economy (see Figure 2).

10. WM Objectives and Channel Preferences
Financial Literacy
• However, awareness of available financial products is low in the target population,
especially in Tier 2 and Tier 3 cities. In addition, a number of factors — including a
series of high-profile scams, detrimental practices of advisors with a short-term view
and the lack of a strong investor protection environment — have contributed to
investor insecurity.
• This is the primary reason for Indian investors taking a myopic view towards
investments, largely discarding the option of long-term investments and personal
retirement planning unless offered as an additional tax savings instrument.

11. WM- Organized & Un-Organized Sectors
•The share of unorganized players (typically independent advisors or small
brokers/agents offering financial advice) has shrunk considerably over the last few
years, primarily due to the increased presence of organized providers, as well as
income and profitability pressures that have resulted in consolidation (see Figure 3).
•This has caused an increase in liquid assets available for organized wealth
management players, which has contributed to their growth in assets under
management.

13. Current Primary Focus of WM Firms
 Qualified advisors will be the best brand
ambassadors for new firms seeking to gain a
competitive edge against established players
 Investor education programs could deliver
information pertaining to various asset classes
and the associated risks, fee structures and
benefits of each.
 Establishing trust is a vital component for any
successful brand-building exercise in India.

14. Strategies Opted by WM Firms
 Invest in brand building to build trust
 Invest in advisor technology to improve
productivity and advisor retention.
 Offer a 360-degree view
 Shifting to a profit-sharing model (where the
advisor’s fees are based on the overall
performance of the portfolio) would help mitigate
issues to some extent.

15. Mutual Fund: No Entry Load!

16. ULIP’s: Charges Capped!

17. What is an IFA?

18. Questions Clients Ask - 1
 ―I’ve just received an offer for a new job. Can
you tell me if this salary structure is in my best
interests?‖

19. Ponder…
1. Is this asked of by every distributor? And if
not, why?

20. The Answer Is Trust
―Integrity is what you are when no one is looking.‖

21. Questions Clients Ask - 2
 ―Which is the best Mutual Fund to invest in?‖
 ―Do I need insurance?‖
 ―Shall I sell this property now?‖

22. Competency Is Essential…
 ―Knowledge is the only instrument of production
that is not subject to diminishing returns.‖ --- J M
Clark

23. …Without Complacency
 ―It’s what you learn after you know it all that
counts.‖ --- John Wooden, college basketball
coach

24. Financial Architect!
 Understand needs, arrive at a budget
 Make the drawings, get okay, convert to blueprint
 Build the house

25. Opportunities of No Entry Load Rule
 Relationship becomes more advice and customer
centric than transaction based
 Will open doors for Wealth Management
 Good advice will be appreciated and hence rewarded
 Customer service will be the key
 Knowledge is a must, hence certification becomes
important
 Those who work in client's interest will be rewarded

26. Immediate Issues
 Difficulty in putting a value to your service & advice
 Building the right business model
 Maintaining brokerage structure may be difficult and
cumbersome and bulky
 Technology – Online platforms with direct investments
 Immediate cash-flow concerns

27. Need for Qualified Advisors !
 The Current Indian Financial Advisory Market is
looking for Brand building through its ―Qualified
Advisors‖ as Brand Ambassadors
 Qualified Advisors shall develop trust with the clients
on a better footings
 IFA’s require a qualification to equip themselves with
the required skill set and knowledge to call
themselves as ―Qualified Advisors‖

28. New Certification’s / Degree’s for the
“Qualified Advisors”
 American Academy of Financial Management TM’s was founded in 1996,
its professional development programs are Executive Certification
Programs that are designed to ensure ―PRACTICAL WORKPLACE
RELEVANCE‖
 The American Academy of Financial Management TM is a worldwide
Board of Standards and financial professional organization, with
members in 150+ countries offering our exclusive certified designations,
charters, and masters certification to candidates who meet the high
standards.
 AFMTM now has representative offices in the US World Trade Center
N.O. Center, Hong Kong, Beijing, India, Dubai, Kuwait, Latin America
and South America, Singapore, The Caribbean, Europe, and more.
Moreover, AAFM™ is a candidate for recognition from the United
Nations.
 AAFMTM mandates consent to high standards of professional conduct,
and AAFM activities are International in nature and scope. As seen in
the Wall Street Journal, CNN, Financial Times, The Hindu National, The
El Norte Latin America, The Arab Times, and The Beijing Times.

29. Certification / Designations
 Some of the AAFM Certifications are:
CWM - Chartered Wealth Manager
Certification™
RFS - Registered Financial Specialist™
RBA - Registered Business Analyst™
MFP - Master Financial Professional™
 Many other Certifications they have to offer to the
Industry …………………………………………….

30. CWM - Chartered Wealth Manager
Certification™
 Wealth Management is one of the fastest growing
disciplines of the banking sector. The CWM
focuses on developing relationship management,
sales, communication and core financial planning
skills to equip Wealth Management Professionals
with graduate education.
 The AAFM CWM Program is a Federally
Copyrighted Program founded in the United
States with Wall Street Sector Trademarks owned
by AAFM.

31. RFS - Registered Financial Specialist™
 Covering financial planning, asset management,
investment advising, and insurance topics, the
RFS is the fundamental graduate qualification on
AAFM's Banking and Investment Management
program.

32. RBA - Registered Business Analyst™
 A strategic MBA refresher with an intensive
coverage on innovative and high-powered
graduate level finance, business analysis, and
leadership topics.
 Designed for the busy executive or upcoming
management graduate. Includes focus on
competitive intelligence and benchmarking.

33. MFP - Master Financial Professional™
 Available via accreditation legal recognition agreements and
articulations. Complete a degree from an AACSB and ACBSP double
accredited programs with concentration in finance, and then become
immediately eligible for MFP.
 The MFP Path is the first Graduate credential that is awarded for
completing a 4 year program or graduate program from an
accredited institution.
 The MFP establishes the fundamental global standards required for
the Financial Professional in today's business environment.
 It recognizes concentrations in finance, economics, investments,
asset and portfolio management, ethics, regulatory issues, tax, and
accounting. It is also available as a conversion program.

34. Certification / Designations Launched
In India
 Recent launch in India is CWM - Chartered Wealth
Manager Certification™
 CWM has 2 Levels of Examination
 Level 1: Foundation Course
 Level 2: Awarded with CWM
 Course Duration: 3- 6 Months
 Globally Recognized : The Certification will directly
be awarded by American Academy of Financial
ManagementTM, USA

35. Other Certifications of AAFMTM
 CAM ™ Chartered Asset Manager - AAFM ® Charter
 AFA ™ Accredited Financial Analyst - Financial Analyst
Designate
 CPM ™ Chartered Portfolio Manager - AAFM ® Charter
 CRA ™ Chartered Risk Analyst - IBS Charter & AAFM®
Charter
 CTEP ™ Chartered Trust and Estate Planner - AAFM ®
Charter
 CMA ™ Chartered Market Analyst ™ - Financial Analyst
Designate - AAFM® Charter and Designation
 CCA ™ Chartered Compliance Analyst - AAFM® Charter
 CAMC ™ Certified Anti-Money Laundering Consultant -
AAFM® Charter
 CAPA ™ Certified Asset Protection Analyst - AAFM® Charter
 CEC Certified E-Commerce Consultant - - AAFM® Charter
 MPM™ Master Project Manager – Legal Analyst - AAFM®

36. Thank you for bearing with Me :
)
In case of any suggestion / questions please feel free to contact me
at:
vyasrainagpal@gmail.com or 9711797800