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How Investments And Wealth Management Is Emerging As A Lucrative Career Option

There is a renaissance of sorts here as an increasing number of job seekers are waking up to the unlimited opportunities in this space.

In the past, only the cluster of High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) could afford to dabble into investments and wealth management. Thanks to the deepening penetration of technology over the years, the investment and wealth management landscape has undergone significant changes. Now, the arena has become more inclusive, and even non-HNIs can enter the game.   

This is to say that technology has become a very effective leveller in blurring the line that differentiates HNIs and non-HNIs in terms of investment and wealth creation alternatives. This means that there is a new career scope for those who envision a career in finance, especially investments and wealth management.  

Wealth creation no longer limited to the wealthy 

Since the recent past, there has been an increase in financial awareness due to the widening access to information. As a result, more people are taking cognizance of the distinction between the distribution of financial products and wealth management, with the latter gaining considerable traction. As such, there is a substantial value migration in place, and there is a transition of career preference from the marketing of financial products to core finance domains that comprise the likes of financial planning, corporate finance, hedge funds, and equity research, amongst others. 

India’s AUM to GDP ratio is still a very disproportionate one, and direct equity participation is still extremely low compared to the statistics of developed economies. In a 2019 study by CAMS DHRP, it was found that India’s mutual fund AUM is only 11% of its GDP, whereas the global average stood at 55%. 

In addition to such setback is the poor performance of real estate in the last decade. As you can see, these asset classes have not been performing very well. However, a revolution is at hand as the new generation of Indian investors woken up to the potential and advantages of other asset classes. The Indian landscape is being pushed further by this vibrant class of Indians. Now, we have an expanding industry that gives rise to more opportunities and growth. 

Therefore, India has a bright outlook for the foreseeable future as things are falling into place to engender a brighter tomorrow. As things stand, there is a rising disposable income and a rapid increase in the number of HNIs and UHNIs. A large chunk of the Indian UHNIs is foraying into investments in properties domestically while a significant segment of the cluster sets eyes on foreign investments. In the meantime, equity investments take centre stage as the most attractive asset class. This is an area where Indian UHNIs do not follow in the footsteps of their Asian peers who prefer to invest in real estate ahead of equities.   

There is a renaissance of sorts here as an increasing number of job seekers are waking up to the unlimited opportunities in this space. It is evident in the surging interest amongst Indians for international courses such as Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA). Unlike before, there is a rapid entry into corporate finance to explore the new career path and opportunities thereof. This means that the new generation is set to tap into the career prospects of investments and wealth management in an unprecedented manner.  

In retrospect, a career in investment and wealth management was not a thing with career pursuers in finance. When it came to a career in finance, Investment Banking was the choice that eclipsed all other options.  

But times are changing now. More job opportunities are emerging as there is an increasing demand for financial experts across domestic wealth institutions. To that end, the new generation is rising up to the occasion to be top-notch investment bankers, wealth managers, and equity researchers. Young India is knowledgeable, well informed, and confident to explore the new landscape in finance. 

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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