Is Wealth Management A Good Career Option? Scope & Salary
Last Update On 18th December 2024
Duration: 5 Mins Read
Is wealth management perhaps the career move that can change your future? Visualise this: guiding clients to grow and protect their wealth while staying on top of the dynamic movement of investments, estate plans, and financial advisory, all in a rapidly evolving global economy. Through this, wealth managers end up being priceless strategists for individuals and businesses regarding the attainment of their financial aspirations.
But is this the right field for you? Discuss the scope, necessary skills, and, naturally, salaries that make this profession so rewarding and distinguished. Let’s Get Started!
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What is Wealth Management?
Wealth management involves professionally managing an individual’s assets or wealth, which comprise cash, property, equities, and bonds. It includes tax planning and estate and investment planning to achieve financial goals.
Wealth management is a professional service provided by a Wealth Advisor, among other things, to advise and guide a client in managing his wealth. Investment management is the most significant part of wealth management. It involves selecting and tracking an investment portfolio to ensure that your client’s value appreciates over time.
Why Become a Wealth Manager?
Wealth management can be a promising career path, both personally and financially. Some reasons to become a Wealth Manager are:
- Helping clients achieve their financial goals and secure their futures can be fulfilling.
- Wealth managers can also earn substantial salaries depending on the breadth of experience and solid client base.
- Wealth management is a growing, dynamic field; the need for financial planning services and investment management advice is continuously rising. According to the Boston Consulting Group, India’s financial wealth will grow 10% a year by 2025, eventually reaching $5.5 trillion.
- Wealth management opens the opportunity to grow as a professional, rise through the ranks, and assume leadership or executive positions.
- Wealth management is a front-end type of role, emphasising strong communication and relationship management skills, making them highly valuable in finance areas.
Check out our blog, What Are Some Of The Most Exciting Professions In Finance? to learn more about other interesting careers in finance.
Types of Wealth Managers
Different types of Wealth Managers offer a range of financial services to individuals and companies. Some common types of Wealth Managers include the following:
Private Bankers
A Private Banker manages the finances of high-net-worth individuals (HNWIs) and offers customised services, which include investment advisory, estate planning, and credit facilities.
Private Wealth Manager
A Private Wealth Manager offers customised wealth management solutions for affluent individuals or families. These might be the following: financial planning, investment management, and estate planning.
Investment Manager
An Investment Manager has custody of his client’s portfolio of investments, comprising stocks and bonds, among other things. He works with a client to help determine an investment strategy that matches a client’s financial objectives with his risk tolerance.
Relationship Manager
A Relationship Manager is responsible for creating and maintaining customer relationships. He cooperates with customers to identify their specific financial needs and goals and delivers tailor-made advice and guidance on financial planning and investment management.
Financial Advisor
A Financial Advisor offers a wide range of financial planning advice to individuals, including retirement, tax, and estate planning. Depending on the Financial Advisor’s qualifications and experience, they may also provide investment management services.
Check out our blog, Qualified Financial Advisor Salary and Job Roles, for more information on a Financial Advisor career.Â
How Do I Start a Career in Wealth Management?
There are several things you can do to start a career in wealth management if you desire to become one:
- Achieve the Proper Education: The majority of Wealth Managers possess a bachelor’s or master’s degree in finance, accounting, economics, or a similar field. One should acquire a relevant academic degree to gather the skills and expertise one needs in this particular business.
- Gain Work Experience: Most entry-level positions in wealth management involve previous work experience in finance or a related field. Some possible ways to gain relevant experience include internships, part-time work, and so on.
- Obtain Relevant Certifications: There are several certifications that one can attain in the wealth management arena, including the Certified Financial Planner (CFP) and the Chartered Financial Analyst (CFA) designation. Such certifications can show that one is well-informed and skilled in this line of work.
- Establish Professional Relationships: Networking is an important factor in a successful career in wealth management. Attend industry events, get connected with professionals, and start building those networks that will eventually convert to potential clients.
- Apply for Entry-level Jobs: With education, work experience, certification, and skills acquired, you can now start applying for entry-level positions in wealth management. The idea is to work as an assistant or associate first before moving up the ladder of the career.
What Is the Potential Salary for Wealth Managers in India?
India is the most promising region regarding wealth management, and thus, the salary for a wealth manager will always depend on numerous factors: job type, type of company, set of skills, and job role.
Let’s see here the ranges of average salaries for commonwealth management roles in India:
Private Banker: Private bankers manage the portfolios of high-net-worth clients. Salaries range up to ₹26 LPA, with top professionals earning much more based on their client base and expertise.
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Wealth Manager: Wealth managers mainly assist their clients in growing and securing their wealth. They draw ₹7–12 LPA; they are paid more when they are working in premier financial institutions or large-scale firms.
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Financial Analyst: The financial analysts observe market trends to advise investment. Their average salary is about ₹6–13 LPA; one can grow within the company or niche in a good company.
Learn more about a Financial Analyst career with our Career as a Financial Analyst in 2022: Ultimate Guide blog.
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Relationship Manager: These professionals develop strong client relationships and cross-sell financial products. The compensation packages range from ₹6–10 LPA with additional performance-based incentives.
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Private Wealth Manager: Private wealth managers offer customised financial planning services to high-net-worth individuals and can command ₹12–25 LPA or more depending upon their client base and firm.
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Investment Manager: Investment managers are responsible for managing funds and portfolios. Their compensation package usually lies between ₹6–12 LPA with significant bonuses tied to the performance of the fund.
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It’s important to note that the industry averages may vary depending on various factors, including experience, qualifications, location, and job responsibilities when considering the above salary ranges.
Conclusion
Wealth management is an evolving field with plenty of energising job opportunities. Becoming a certified wealth advisor or an investment professional is rewarding personally and financially.
With Zell Education, the finest courses like CFA and US CMA could help master the skills for ultimate success in wealth management. Expert instructors, a proven track record, and a success guarantee make it an ideal choice for any aspirant looking to start building a successful career in wealth management.
Learn more about the US CMA course with our blog on the US CMA Paper Pattern and Exam Fees.
FAQ
Is a career in wealth management worth it?
Yes, wealth management is an excellent career opportunity as it encompasses a wide range of possibilities in retail banking as well as specialised firms combining financial planning, investment advisory, and relationship management with strong potential to earn.
What is the starting salary of CWM?
The starting salary for CWM in India would be around ₹4.2 LPA, with great prospects of rapid growth.
Can you make a lot of money as a Wealth Manager?
Of course, you can. Yes, Certified Wealth Managers with a solid client base can command high salaries, which are determined by experience, location, and employer.
What is the scope of wealth management?
Wealth management includes financial planning, investment advice, tax planning, and risk management, and thus it is a promising and expanding career.