AI Is Revolutionizing Wealth Management For HNIs

Artificial Intelligence (AI) is no longer a buzzword—it's a game-changer. With rising market volatility, uncertain economic fluctuations, and shifting tax regimes, high net worth individuals (HNIs) and ultra-high net worth individuals (UHNIs) are looking for smarter ways to protect and grow their wealth.

- Ajay Kumar Yadav (The writer is CEO and CIO of Wise Finserv)

AI has transformed wealth management into real-time, data-driven, and hyper-personalized. With AI applied to investment strategies, wealth managers can now offer more detailed insights, faster decision-making, and better risk-adjusted returns.

Let us understand how AI is redefining the rules of portfolio rebalancing, restructuring, and optimization.

1 PE-Based Rebalancing: Allocation with a Valuation Lens
AI programs now monitor Price-to-Earnings (PE) ratios across all industries and indices in real time. This facilitates dynamic portfolio rebalancing with respect to comparison against historical trends.

• When PE ratios shoot well above historic norms, AI systems recommend reducing equity exposure to prevent overvaluation hazards.

• In correction or periods of undervaluation, the same system indicates purchase opportunities on the basis of identified gaps. This keeps portfolios anchored to reality rather than reacting to emotions.

2 Equity Allocation-Based Rebalancing: A brighter balance