DSP Merrill Lynch is planning to add more advisers in India to manage the assets of people with more than $1m of financial assets as the ranks of the rich are reported to swell the market by as much as 40% a year over the next 10 years, reported Bloomberg. At present, DSP Merrill Lynch has 50 advisers for its wealthy clients in India.
According to the Asia-Pacific wealth report released by Merrill Lynch Wealth Management and Capgemini, China and India are likely to lead high net worth individuals (HNWIs) growth in the region, underpinned by robust domestic consumption and a growing number of affluent individuals.
Pradeep Dokania, head of private wealth management at DSP Merrill Lynch, said: “China and India, will be an important driver of global economic growth in the years ahead, likely elevating the region’s HNWIs to a more dominant position among the ranks of the world’s wealthy. India registered a 6.1% growth in private consumption in 2008, following China at 8%.This is commendable considering that private consumption saw a huge slump across the Asia Pacific region.
“We expect Asia Pacific to be a significant driver of global HNWI wealth, with China and India at the forefront of growth and Japan remaining an important high net worth market. The region’s diverse economic landscape presents tremendous growth opportunities for wealth management firms.
“We plan to add 20% more advisors every year and expand our products to capture this growth. More and more wealthy people will realize that there is value in going for professional advisors.”
Salil Parekh, CEO of financial services in India and Asia Pacific at Capgemini said: “The economic outlook for India remains positive and it is likely to register strong GDP growth in the near future. Even though India has stringent regulations, huge market potential and growth have made it important for global companies while considering their business strategies and investment decisions.
“India needs to watch out for new trends like emerging wealth outside metro areas, NRIs as a very high potential segment, SEBI’s recent step towards increase in transparency by scrapping the entry-load for mutual fund distributors. No doubt this move from the regulator will open new horizons for holistic wealth management model which will eventually benefit the end investor.”
