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Job profiles in wealth management
Sujoy Das
Last Updated IST
A wealth manager essentially helps manage their finances effectively. Istock image
A wealth manager essentially helps manage their finances effectively. Istock image

Most families in the country traditionally concentrated their wealth in non-financial assets — real estate and gold. But the last few years have seen people using financial assets to grow their wealth.

This diversification of assets has also seen the expansion of the ‘wealth industry’, with increasing demand for qualified wealth managers across different job profiles.

A wealth manager essentially helps manage their finances effectively. The gamut of activity stretches across investments, tax planning, estate planning, budgeting, and even setting up a trust.

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Importantly, a wealth manager needs to be dynamic and coordinate with multiple people, agencies, and firms on behalf of their clients. They may need to coordinate with external financial experts and clients' agents like accountants and advocates.

However, each client has different requirements. For instance, wealth managers may need to work as brokers to buy and sell stocks on behalf of their clients.

So a working knowledge about different types of finances is key. That said, each manager ends up specialising in a particular area.

Financial products and services: This is an advisory role that requires a high degree of proficiency in the space of financial products and their effectiveness. It includes analysing the clients’ financial profile — current income, expenses, insurance coverage, tax status, financial objectives, risk tolerance — to determine strategies for meeting financial goals.

Stock trading: This includes buying and selling stocks on behalf of high-net-worth individuals. This requires proficiency in stocks and bonds and all the qualities that come with being a nimble trader.

Investment manager: This job profile revolves around researching and managing different investment opportunities across asset classes, optimising profit and reducing risk.

Tax planning: This role involves managing investments so that there are reduced tax implications. Tax planning may also require the wealth manager to meet other stakeholders like the attorneys, accountants, or investment bankers.

Estate planning services: This is a specialised job that includes inter-generational financial planning. It also includes reviewing the clients' existing financial plan vis-a-vis any life changes, economic, environmental, or financial performance deviation, necessitating a planned reassessment.

(The author is the co-founder of an e-education platform)

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(Published 15 November 2021, 17:58 IST)