Wealth management in India is in a budding stage, where organized wealth management is offered by very few players. predominantly banks and broking houses are offering this services at virtually free of cost.
Most Investors in India invests in various schemes out of obligation or strong push marketing. As this service is projected as a free service there is no pressure of performance on the Wealth managers and result of which is most of investors are not happy with their investments because investments are not planned and executed properly.
In many instances Insurance policies are sold like investments through trusted platforms like banks. Banks are getting hefty commissions from insurance companies and the pressure of sales on the bank’s wealth managers to generate more and more revenue results in further wrong selling.
The wealth management organizations are also desperate to make huge profits within the short span of their existence which makes them more aggressive and push high cost complex products to investors.
Despite Sen-sex movement from 6000 to 21000 in last six years which is 250 % growth investors have hardly seen any returns. Gold is almost touching 22000 per 10 grams but still investors have not made returns.
Unless proper management of wealth will be planned and executed by investment advisers and Banks investors will always loose, loose in the form of capital invested and loose in the form of opportunities to make great returns.