In the present time, wealth management is a vital element that entrepreneurs should address. According to EY’s report, Wealth Management Outlook 2018, “Its (wealth management) size and growth makes the HNWI (High Net Worth Individuals) +1 segment of the global wealth management market particularly attractive. Today’s market for net investable assets (NIA) already exceeds US$55,000 billion.”
The above-cited report also tells that the US and China alone account for over 45 per cent. Another 10 per cent of the increase is attributable to Russia, Brazil and India, comprising India’s distribution of growth, 0.43 per cent between the period 2016 to 2021.
Seeing the figures, it becomes essential to go along with the trend and invest in wealth management. As an entrepreneur who starts thriving in the market, he gradually begins earning more than his usual revenue. The surplus amount thus should be utilised properly.
Wealth Management is Crucial for All Entrepreneurs
Under wealth management, a wide spectrum of services are offered, ranging from financial planning to personal retailing, banking, legal and tax advice to estate planning. All these services facilitate managing wealth and grow it further. Consequently, it is presumed that budding entrepreneurs or emerging businessmen don’t require wealth management services. However, it is a wrong perception as savings need to be preserved and invested in the right plans since the beginning.
Before engaging in wealth management, there are some dos and don’ts for entrepreneurs.
1. Begin Investments Early
Saving the money and investing it in government schemes or commercial banks is one of the options that budding entrepreneurs can avail. Small scale businesses and home-based business people can start with investing with a minimal amount of INR 1000. As one keeps paying a premium of investment plans for 5 years or so, one gathers a large portion of money over time.
Further, one can put money in bonds, insurance policies and low-risk monetary schemes, too. In an early stage, one can easily start with the above-mentioned ideas.
2. Different Investment Plans for Family and Business
In one’s 30s and 40s, an entrepreneur tries to keep his business as well as family secure. Owing to which, he invests in various investment plans keeping both his priorities in mind. However, it needs to be realised that investment plans should not be mixed with that of family or business. Then, managing finances will become a problem.
3. Make Use of Technology
As the Internet has intervened in the banking sphere, it has become easy to track investments and access the latest information about the investment segment. Entrepreneurs can thus deploy technology and make better decisions related to their business or personal investment. For instance, one can change one’s investment amount in the plan as one’s income varies. However, it is vital to begin investing money early as one’s wealth would grow massively till one would reach retirement.
The above-mentioned suggestions are important for entrepreneurs, who are planning to grow their wealth.