How To Choose The Right Wealth Management Firm?

We make dozens of critical financial decisions regularly, but none is more important than choosing the right wealth management firm to help you achieve your goals in terms of your future well-being.

Choosing a wealth management firm that meets your needs over time, can have a significant impact on the growth and preservation of your assets, as well as the financial future of your family.

It may be oversimplifying matters to see your choice of the firm as a matter of saving money on fees. Well-chosen firms will aid in the long-term support of your family, guiding your financial strategy as you expand, maintain, and eventually pass on your wealth account.

You must choose a wealth management firm with the resources and tools necessary to meet your requirements. Every client is unique, and each wealth management firm has its own set of strengths and weaknesses when it comes to assisting those who entrust them with their money. 

Let us take a closer look at the factors to consider when selecting a wealth management firm. When looking for a company to secure your financial future, keep the following seven points in mind:

• Wealth management companies, overall, cater to investors with a diverse portfolio of assets. All investors, however, are unique, and the portfolios they hold may have a wide range of management requirements. It is fair to anticipate that wealth managers' methods and skillsets will be equally diverse. 

When looking into your options, make sure to inquire about the types of clients that potential wealth managers usually serve. Their response will show you their areas of expertise and whether they align with your personal wealth objectives. 

• When choosing a firm, set aside some time to meet with the advisor who will potentially be handling your wealth management account. The last thing you want is to choose a wealth manager only to discover later that you got assigned to someone else. 

Inquire about their previous employment history and whether they are a Certified Financial Planner. Remember that you are the client, and it is up to your prospective wealth manager to win you over. You can ensure that your search for detailed management gets off to a good start by double-checking their qualifications. 

• Wealth management in India can make money from their clients in a variety of ways. Some may charge a commission based on the goods and services you hire them for, while others may charge a flat rate that varies depending on your portfolio's size. 

Make sure you recruit someone who is as invested in your portfolio's growth as you are. Hiring someone who only gets paid based on what they sell you might be a bad idea. There is always the possibility that they are more concerned with making money than with growing your portfolio in a way that meets your needs.

Steps To Open A Savings Bank Account Online

Banks and financial institutions provide the service of saving account to help manage your money. As the name suggests, these accounts encourage savings, and you earn interest while doing the same. It helps ensure your money is safe and accessible whenever you want.

With changing lifestyle, people getting busier is inevitable. Thus, banks have introduced facilities like banking apps, internet banking, online banking, etc., for convenience. Additionally, online banks have also gained momentum. It has resulted in accounts operating online. You can open your account online within minutes.

Following is the procedure of online saving account opening: 

Explore available options: Most of them give attractive interest rates and facilities. You can conduct research and compare banks to choose what suits you best. You compare them based on the minimum required balance, interest rates, monthly fees deducted, internet banking provisions, etc. 

Select account type: While opening a savings account, you can select from an array of accounts you want. Depending on your needs, you can opt for either a single or joint account. The latter requires you to share ownership and access to the funds with your co-owner. They can also withdraw the money without your permission. 

Documentation: You must submit documents like government-certified identity proof, address proof, PAN Card, and two to three passport-sized photographs. It would be best if you have these documents handy while applying online as there is a chance of session time out in case of delay. 

Submit account application: The application process gets completed within 10 minutes if you have all the documents ready. You can go to the website of the bank chosen. You will have to fill out details like your name, date of birth, address details and other personal details and attach the documents. The bank then gets back to you with further instructions.

Make a deposit: The last thing you need to do is make the initial deposit in your online bank account. You can do this either with your debit card or link your existing bank account through a routing number. If you wish to pay by cash, visit your nearest branch.

Once the process gets completed, banks send your debit card within 10-15 business days, through the welcome kit you receive when you open a bank account. You can use it to carry out all your online transactions and ATM withdrawals.

What Are The Steps To Open An NRI Bank Account?

Life could take you anywhere. Today, you might be living in India and the next minute; your job could take you overseas. But an opportunity like this does not mean you need to uproot your life altogether. If you have a family in India, you may want to return, sooner or later. To the very least, the financial management bit gets taken care of by the Indian banks, thanks to the NRI account offered to them.

Owing to this, NRIs can live in any part of the world and continue to maintain their finances in India and fulfil their financial obligations towards the family, by merely doing NRI account opening.

Steps for opening the account

NRI account is opened with three simple steps. However, you should do thorough research and decide the account type which suits your requirements. Following are the steps for opening one –

Visit the bank or open online

You need to select the bank in which you can open the NRI bank account. Once you have finalised, you can either visit the branch or open them online. The latter has made it possible to open account sitting overseas too. However, for that, you need to approach the domestic bank in India through e-mail. You need to provide your contact information to your Indian bank. The bank official gets in touch with and helps with account opening.

Choose the account type

Discuss your requirements with the bank official and determine the NRI bank account type, which works best for you. You need to select from three types of NRI savings account – NRE, NRO, and FCNR. Each of them has unique features. For example, you can safely park the earnings in foreign currencies converted to INR in the NRE account. Meanwhile, you can save your Indian earning such as rent, FDs, etc. in the NRO account.

FCNR accounts get opened depending on the fluctuations in foreign currency exchange rates. You should understand the tax charges and benefits of all three accounts and based on your needs, select one or more accounts.

Document submission

Submit the mentioned documents along with the account opening form to avail of the NRI account services. The papers include:

• Copy of your valid passport, including the first and last page where your details are included.
• Documents which confirm your Indian and overseas addresses. The address on the proof should match the one mentioned in the application form.
• NRI status proof like resident or employment visa copy, work or resident permit.
• Copy of Indian PAN card or Form 60.
• Recent passport-sized photographs.
• Initial payment cheques or demand draft for opening the account and maintaining a minimum balance.

5 Things Private Banking Sectors Should Follow

Every bank has a motive to create better investment opportunities for their customers and offer customised services. They believe in encouraging people to open a bank account with them as it keeps their wealth safe and offers them attractive interest rates. All banks in India provide similar services to all customers, irrespective of whether they are in the private or public sectors. They also offer many other financial products, such as loans, deposits, insurance, etc.

Private banking is an investment opportunity offered to high-net-worth individuals of a retail bank or financial institution through banking personnel specifically dedicated to providing such services. Here are some things every private bank should consider and follow to gain popularity:

1. Clarify the fundamental beliefs and strategic focus: Some privilege banking sectors have found a niche and achieved impressive returns for their shareholders and clients by focusing on select markets or client segments defined by needs, and not assets. They should choose and identify their purpose in wealth management and the distinctive capabilities to create a unique value proposition for their selected market. 

2. Learn to partner in the ecosystem: Digital technologies are creating various options for generating value for clients. Every private bank needs to determine its value and how much they can deliver by collaborating with ecosystem partners. As opportunities emerge, there should be an evolution of decision-making strategies within all priority banking sectors. Cloud services help in increasing connectivity and provide scalability for the efficient collaboration of banks. 

3. Focus on client experience: Many institutions offering premium banking services have started defining client and employee journeys to bring the client experience to new levels. Human-centred design of products and services can positively impact the perspective without necessarily incurring additional costs. The needs can differ depending on age, occupation, family situation, domicile, available time, type of assets, etc. 

4. Empowerment of relationship managers: In response to new technology, changing expectations of clients, and increasing pressure on margins, the relationship manager should have the capacity to form a community of clients in the digital and the real world and to build a strong individual brand. Private banks should empower their relationship managers by providing integrated tools, analytical insights, and streamlined working methods, which reduce the administrative burden.
   
   
5. Increase organisational adaptability: In the age of uncertainty and rapid change, traditional management systems seem outdated. Many preferred banking organisations have started acting on the ecosystem, the organisation, the team, the leader, and the individual. They focus on customer experience across functional sectors and internal and external staff and conduct network assessments to guide organisational design.

Private Banking: Features And Challenges Explained

Personal banking is all about offering banking, investment, tax management, and other services to high-net-worth individuals. Unlike retail banking, private banking focuses on providing private facilities to the clients, through a dedicated personal banker or relationship manager. They are specifically meant to offer such individual services.

HNIs possess more wealth than the average person. Hence, they can access more and larger investments like hedge funds and real estate. Privilege banking gives HNIs advice and information concerning an appropriate investment option for them.

Features

Eligibility

Clients need to fulfil some requirements for being eligible under priority banking. It generally involves maintaining a minimum balance through deposits, individual retirement accounts, investments, and other kinds of assets. The minimum amount deposited in the account should also include qualifying linked deposits and investments.

Dedicated representative

Every HNI has a dedicated relationship manager or team of people who have a thorough understanding of the client's asset ownership, risk aversion, preferences, and long-term financial goals. The private banker or relationship manager facilitates cheque deposits, conducts wire transfers, orders cheques, etc.

Perks

Preferred banking customers receive many benefits such as lower annual percentage rates for loans, higher annual percentage yield on securities like certificates of deposits, free safe deposit boxes, etc. It is possible since charging such a minimal interest on larger loans generates substantial revenue for the bank.

High management fees

Clients should pay higher fees for the services given by the private bankers.

Target market

The affluent market is the primary target audience of such banking. While executing these normal lending activities, they can access tax documents and other personal documents for finding potential clients. However, the activities are subject to some considerations of conflict of interest.

Challenges

While private banking does offer so many benefits and features, it does face some challenges industrially. They are –

Lead generation

Client acquisition is an essential part of this banking. Most banks generally rely on traditional methods such as referrals and investment divisions to land new clients. The other option is referrals from existing clients. Those who were satisfied with the concept can refer their friends and family members who are HNIs. The other lead generation channels include social media and event marketing.

Regulatory restrictions

The Global Financial Crisis, 2008 led to the collapse of many financial institutes. Owing to this, the Government imposed stricter restrictions which included more transparency and accountability from banks. These regulations have made the licensing of private bankers restrictive. This has, in a way, affected both the nature of the service and career advancement.

Retaining professionals

Private banking is all about the relationship between the HNIs and private bankers assigned to each. However, since the financial crisis, this industry has experienced a high turnover rate. This is partly owing to the restrictive framework. Banks nowadays focus more on talent recruitment, training, and retaining the most qualified professionals.

4 Advantages Of Investing In Mutual Funds Through A SIP

Every person wants to save money for the future and other emergency expenses. They plan to invest in different financial products to earn decent returns to help them in the future. Since the future is unpredictable, it is always safer to start saving from the present day. Likewise, there are lesser chances of debts and repayment issues.

Investment options such as direct equity, SIP mutual fund, National Pension Scheme (NPS), Public Provident Fund (PPF), bank Fixed Deposit (FD), etc., provide excellent and guaranteed returns, depending upon the investor’s financial requirements. Though they may have to contribute a fixed amount, they are sure to get returns and see their investment multiply throughout their tenure.

Here are four advantages of investing in this financial product:

1. Helps investors maintain discipline: A systematic investment plan is the best investment option for those without superior financial knowledge of how the market works. They do not have to spend their time analysing the market movements or choose an opportune moment to invest. Unlike lump sum investments, it ensures there are periodic payments and active participation towards the scheme.
   
   
2. The rupee cost averaging factor: When investing in SIP continually for a longer period, individuals can take advantage of market volatility. With rupee cost averaging, the fixed investment amount averages out the value of each unit. It means investors can buy more units when the market is low, and vice-versa, making the average cost per unit low.
   
   
3. The power of compounding: SIP plans help ensure investment discipline and continuously strive to make them grow. The automation provides the growth of investment, unlike lumpsum, where they may forget to invest for some time. The small amount invested daily grows up to a large corpus as a sum of the contribution and the returns compounded over the years.
   
   
4. Ease of use: With a SIP investment, investors can relax. They can submit the application form online and initiate an auto-debit facility. A fixed amount of money goes towards the investment from their bank accounts throughout the tenure.

Conclusion

People can start investing in these plans at any time, ensuring minimum risk with the right scheme plan through mutual fund apps. They must choose a scheme that meets long-term investment goals also. Thus, there is no suitable time frame within which they should start investing. The sooner they decide to invest, the better it is for the future.

What Are The Advantages Of Opening An NRI Account?

Money is a valuable resource for people worldwide. They have lots of priorities and expenses to meet, which is impossible to achieve without adequate funds. They need to start saving from the present day to meet emergencies in the future. A bank account is the best option to store funds, earn interest and spend wisely.

An NRI bank account is available for only those individuals residing out of India’s geographical territories for at least 120 days throughout a year and spends less than 365 days in the country in four previous years. Under the Income Tax Act, 1961, an individual’s residential status would change to NRI only if they follow this rule. However, if the person leaves India for employment to a different nation, they will immediately get declared NRI.

NRIs need to understand the features of the three types of NRI savings account opening available for them in India. It helps them fulfil their investment objectives, financial obligations, and plans of residency adequately. They can open them with earnings originating either within India or their resident country, depending on the account type (NRE account, NRO account, or FCNR (B) account). Here are four advantages of opening this account:

1. It facilitates investment in financial instruments: One of the primary benefits of the NRI savings account is that individuals can participate in the stock market and invest in different schemes. These investments, supported by the Portfolio Investment Scheme (PIS), are offered by financial institutions. It is an RBI scheme allowing NRIs to trade in market-linked financial instruments like equity shares and debt instruments like company debentures. 

2. It offers many tax benefits: Individuals with NRE accounts and FCNR (B) accounts are eligible to enjoy tax-free interest earnings on their income, according to the Income Tax Act, 1961. Such global profits will be taxable in India under their domicile or residence if an NRI does not bear a tax liability to any other country, as per the Union Budget 2020 proposal. 

3. It offers high returns: An NRI account can help individuals earn substantial returns on the total deposits in NRE FDs and FCNR accounts at negligible risks without worrying about stock market fluctuations.
   
   
4. They can avoid exchange rate fluctuations: Individuals can choose to deposit their earnings from a foreign country in an FCNR account without conversion into INR. This facility allows NRIs to avoid exchange rate fluctuations and consequent reduction in the deposit value. However, they must remember to check the NRI account interest rates for getting additional benefits.