Where are rich investors investing their money in volatile markets?
Business: According to industry reports, the wealth management landscape in India is rapidly evolving. With a CAGR of 16%, India’s HNI population is projected to grow to 1.65 million by 2027. To expand its presence in the fast-growing market of HNI and UHNI wealth management, Angel One has invested Rs 250 crore in its wealth management arm, Angel One Wealth. The capital will be used to develop core technological infrastructure, leverage AI and analytics, expand presence in key markets, and develop product strategy. In conversation with Business Today, Srikanth Subramanian, Managing Director and CEO, Angel One Wealth Ltd, shared his insights on the market dynamics of HNI wealth management, key trends, diversification strategies, investment opportunities, and more. Edited excerpts:
What are the market dynamics of wealth management in India?
The wealth management sector in India is experiencing a compound annual growth rate (CAGR) of 25-30%, driven by three primary growth drivers. We are betting on this ‘triple multiplier effect’, which is the growth in the number of high-net-worth individuals (HNIs), asset appreciation and incremental growth in the income of individuals.
What is the philosophy of Angel One Wealth, and how do you adapt it to the needs of HNI clients in India?
The vision behind Angel One Wealth is to reimagine wealth management by bridging domain expertise in investing and the power of technology. As the Indian market matures, reflecting growing wealth accumulation and changing client preferences, we anticipate that an omnichannel wealth-tech platform will resonate faster with the emerging HNIs in India. These clients are digitally savvy, savvy and have high aspirations.
The equity market is near record highs and is witnessing high volatility. Where are HNIs and UHNIs investing their money now? How should investors diversify their portfolios?
The trend towards equity markets in India remains very strong, as mutual fund assets have grown from less than Rs 10 lakh crore to over Rs 61 lakh crore in the last 10 years. HNIs and UHNIs are more conscious about diversification, which is reflected in the mix of traditional and innovative strategies such as PMS and AIFs. For example, alternative investment funds (AIFs), which include private equity, venture capital and hedge funds, invest in non-traditional assets, offering potentially higher returns and diversification benefits. Apart from global equities and structured products, there is also strong interest in unlisted stocks and pre-IPO funds.
How do you respond to the challenges faced in the fast-growing Indian wealth management market?
We strive to navigate the emerging landscape of wealth management by leveraging a three-quotient framework:
Investment Quotient: Our investment strategy is based on a strong institutional framework and is acutely responsive to macroeconomic changes and emerging trends.
Digital Quotient: We are blending tech-enabled and tech-assisted strategies to enable RMs to serve HNIs and UHNIs with varied user preferences.
