NEW RULES OF WEALTH

As wealth surges and markets grow more complex, professional financial advice has become imperative

- BY ABHINAV SINGH

India has witnessed significant wealth creation over the past decade, driven by strong performance in equities and real estate, and a thriving entrepreneurial ecosystem. There has been a clear financialisation of savings as well, with investors gradually shifting from traditional assets like gold and real estate to financial instruments.

This transformation is not just about more money, as the Indian investor is navigating a vastly expanded financial universe, one that demands discipline and a structured approach.

“This shift is further amplified by the explosion in product complexity. While investors once chose between fixed deposits, insurance and property, they are now navigating a wide array of sophisticated options such as PMS, AIFs, global investments, structured products, private credit, and unlisted equities. Adding to this is heightened market volatility and macroeconomic uncertainty, shaped by events like Covid-19, interest rate cycles, geopolitical tensions, and inflation shocks, which have reinforced the importance of asset allocation and risk management,” said Parag Morey, head of sales, Emkay Wealth Management.

In essence, the rules of the game have changed. What worked a decade ago is no longer sufficient in an environment marked by inflation, volatility and interconnected global markets.

A generational shift is also under way. Younger inheritors of wealth are more financially aware, digitally savvy and open to professional advisory services. They are moving away from relationship-driven investing to a more structured, data-led approach.