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Emerging Opportunities in the Indian Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape

BRICdata
Published Date » 2012-05-08
No. Of Pages » 90

Synopsis

The report provides detailed market analysis, information and insights, including:

  • In-depth analysis of wealth management strategies adopted by Indian banking and financial institutions
  • How companies in India are adopting marketing strategies to succeed in the wealth management industry 
  • Key trends and drivers supporting the growth of the wealth management industry in India
  • Challenges faced by companies in the Indian wealth management industry
  • Company-wise analysis of marketing strategies and product offerings in the wealth management industry

Summary

Indias GDP grew at an annual growth rate of 8% in 2011 and has a strong growth outlook. This makes the country an attractive investment location for wealth management firms. India has the main components that comprise a high-growth wealth management market, including: a very large and young affluent customer base, an improving wealth situation among global Indians, a goal to more tightly regulate financial services by the Indian government, and an increasing share of organized companies compared to the unorganized workforce. India currently has the fourth-largest number of high net worth individuals (HNWIs) in the Asia-Pacific region, after Japan, China and Australia. There were over 250,000 HNWIs in India, which cumulatively owned assets that valued over US$1 trillion in 2011. The volume of HNWIs in India increased at a compound annual growth rate (CAGR) of 7.20% during the review period (20072011), while the total HNWI wealth increased in value at a CAGR of 2.47%.

Scope

  • This report provides an extensive analysis of the Indian wealth management industry, including market sizing by asset classification
  • The report highlights various asset classes available for HNIs and also classifies the investment made by the HNIs in each of the mentioned asset classes
  • It also provides an analysis of marketing strategies used by banking and financial services companies in India
  • The report provides a detailed understanding of the product offerings of banking and asset management companies 
  • It also provides insights into the strategies that companies can adopt to succeed in the industry to strengthen market position

Reasons To Buy

  • Gain in-depth insight into the wealth management industry and the strategies used in India.
  • Understand the various market dynamics of the wealth management industry in India.
  • Take informed decisions and formulate effective strategies based on the reports detailed market insights on Indian wealth management.
  • Understand the growth strategies adopted by key companies.

Key Highlights

  • HNWIs in India are expected to increase their number of equity asset allocations over the forecast period, while reducing their number of fixed-income and cash assets.
  • As the wealth management market in India matures, Indian HNWIs are expected to significantly increase their investments in sophisticated wealth alternatives, such as hedge funds, private equity and venture capital.
  • The regulatory environment in the Indian wealth management market is evolving, which presents opportunities for established wealth managers to expand their product and service offerings in the country. The government is planning to implement regulations covering fiduciary duties and investor protection.
  • Commercial banks, private wealth management companies and asset management companies in India are adopting various marketing strategies to become successful in the Indian wealth management market.
  • Indias wealth management market is highly fragmented, which is not surprising as it is in an early stage of development. The organized service providers, such as commercial banks and wealth management companies, have so far focused mainly on the urban population, leaving an underexplored customer base of approximately one-fifth.
Table of Content

1 Executive Summary

2 Indian Wealth Management Market Environment

2.1 Macroeconomic Fundamentals
2.1.1 GDP at constant prices
2.1.2 Inflation rate
2.1.3 Annual disposable income
2.1.4 Market capitalization
2.1.5 Bank repo rate
2.2 Regulatory Framework
2.2.1 Investor protection
2.2.2 Evolving tax laws

3 Market Size and Growth Potential of Indian Wealth Management
3.1 Wealth Management Market in India
3.2 Wealth Management Market by Asset Class
3.2.1 Direct equity
3.2.2 Bank deposits
3.2.3 Mutual funds
3.2.4 Life insurance
3.2.5 Alternative assets
3.3 Market Size of Indian Wealth Management by HNWIs
3.3.1 High net worth individuals (HNWIs)
3.3.2 Ultra-high net worth individuals (UHNWIs)
3.3.3 The core high net worth individuals (core HNWIs)
3.4 HNWI Investments by Asset Class
3.4.1 Investment trends in liquid assets equity, fixed income and cash deposits
3.4.2 Investment trends in cash and deposits
3.4.3 Investments in real estate
3.4.4 Investment trends in equity
3.4.5 Trends in art, wine and automobiles

4 Wealth Management Services in India
4.1 Portfolio Management and Portfolio Rebalancing
4.1.1 Kotak Mahindra portfolio management services
4.1.2 ICICI Bank portfolio management services
4.1.3 HSBC India portfolio management services
4.1.4 Deutsche Bank portfolio management services
4.1.5 Karvy Wealth portfolio management and rebalancing services
4.2 Trusts and Estate Planning and Management
4.2.1 Kotak Wealth estate planning services
4.2.2 Client Associatess estate planning service
4.2.3 The Royal Bank of Scotland estate planning services
4.2.4 HSBC estate planning service
4.3 Private Banking and Financing
4.3.1 HDFC private and preferred banking services
4.3.2 ICICI private and privilege banking services
4.3.3 Kotak Mahindra privy league private banking service
4.4 Tax Planning and Management
4.5 Investment Management and Advisory
4.5.1 ICICI Bank investment advice
4.5.2 Client Associates (CA) investment management services
4.5.3 Kotak wealth and investment management services

5 Trends and Growth Drivers
5.1 Emergence of Private-Investment Banking in India
5.2 Increasing HNWIs Volume and Wealth Value
5.3 Changing Consumer Attitudes are Encouraging Retail Banking Growth
5.4 Increasing Service Options from Wealth Management Companies
5.5 Targeting Mass Customer Base Rather than HNWIs
5.6 Real GDP Growth Rate
5.7 Annual Average Exchange Rate (INR-US$)
5.8 Government Initiatives to Attract the Wealth of Overseas Indians
5.9 Increasing Remittances from Non-Resident Indians (NRIs)

6 Marketing and Growth Strategies of Indian Wealth Management Service Providers
6.1 Marketing Strategies
6.2 Product Diversification
6.3 Optimization of Risk Management Services
6.4 Enhancing the Quality of Investment Advisors and Managers
6.5 Partnering with Assets Management Companies
6.6 Utilizing Social Media to Interact With Clients

7 Strategies to Succeed in the Indian Wealth Management Market
7.1 Maintaining Low Overhead Costs
7.2 Building an Effective Distribution Strategy
7.3 Capitalizing on Technology
7.4 Understanding the Changing Consumer Requirements
7.5 Long-Term Commitment Required
7.6 Brand Building
7.7 Transparency and Regulatory Adherence
7.8 360 Degree View of Investment

8 Challenges
8.1 Regulatory Issues
8.1.1 Taxation
8.2 Tightening Government Control
8.3 Lack of Talent and Geography of Operation
8.4 Reputation Issues
8.5 Underdeveloped Product Offerings
8.6 Self-Management of Wealth

9 Competitive Landscape
9.1 Industry Structure
9.2 Wealth Managers and Private Banks
9.2.1 Public-sector banks
9.2.2 Wealth managers
9.2.3 Private-sector banks
9.2.4 Foreign banks and MNCs

10 Company Profile
10.1 Housing Development Finance Corporation Bank(HDFC)
10.1.1 Company overview
10.1.2 Business segmentation
10.2 ICICI Bank Ltd
10.2.1 Company overview
10.2.2 Business segmentation
10.3 Kotak Mahindra Bank
10.3.1 Company overview
10.3.2 Business segmentation
10.4 AXIS Bank Limited
10.4.1 Company overview
10.4.2 Business segmentation
10.5 Other Private Banks
10.5.1 DBS Bank Ltd (India)
10.5.2 Deutsche Bank (India)
10.5.3 Standard Chartered Bank (India)
10.5.4 HSBC (India)
10.5.5 SG Private Banking (India)
10.6 Non-Banking Investment Management Companies in India
10.6.1 Edelweiss Financial Services Limited
10.6.2 Client Associates
10.6.3 Karvy Private Wealth

11 Appendix
11.1 About BRICdata
11.1.1 Definitions
11.1.2 Areas of expertise
11.2 Methodology
11.3 Disclaimer

List of Tables


Table 1: Indian GDP at Constant Prices (US$ Billion), 20072016 (Base Year 19992000)
Table 2: Indian Inflation Rate (%), 20072016
Table 3: Indian Annual Disposable Income (US$ Billion), 20072016
Table 4: Indian Repo Rate (%), April 2009 April 2012
Table 5: Indian Wealth Management Market Size by Asset Class (US$ Billion), 20072011
Table 6: Indian Wealth Management Market Share by Asset Class (%), 20072011
Table 7: Indian Initial Public Offerings (US$ Billion), 20072011
Table 8: Indian Large IPOs in 2011
Table 9: Indian Total Bank Deposits (US$ Billion), 20072011
Table 10: Indian HNWIs Volume by Wealth Bands, 20072011
Table 11: Indian HNWIs Volume by Wealth Bands, 20122016
Table 12: Indian HNWIs Value by Wealth Band (US$ Billion), 20072011
Table 13: Indian HNWIs Value by Wealth Band (US$ Billion), 20122016
Table 14: Indian UHNWIs Volume by Type of HNWI, 20072011
Table 15: Indian UHNWIs Volume by Type of HNWI, 20122016
Table 16: Indian UHNWIs Value by Type of HNWI (US$ Billion), 20072011
Table 17: Indian UHNWIs Value by Type of HNWI (US$ Billion), 20122016
Table 18: Indian Core HNWIs Volume by Type of HNWI, 20072011
Table 19: Indian Core HNWIs Volume by Type of HNWI, 20122016
Table 20: Indian Core HNWIs Value by Type of HNWI (US$ Billion), 20072011
Table 21: Indian Core HNWIs Value by Type of HNWI (US$ Billion), 20122016
Table 22: Indian HNWI Liquid Asset Composition (%), 20072016
Table 23: Indian Real GDP Growth Rate (%), 20082016
Table 24: Indian Annual Exchange Rate (INR-US$), 20072011
Table 25: Indian Wealth Management Companies
Table 26: Karvy Private Wealth: Main Services
Table 27: Indian Annual Exchange Rate (INRUS$), 20072011
Table 28: Definitions

List of Figures


Figure 1: Indian GDP at Constant Prices (US$ Billion), 20072016 (Base Year 19992000)
Figure 2: Indian Inflation Rate (%), 20072016
Figure 3: Indian Annual Disposable Income (US$ Billion), 20072016
Figure 4: Indian Market Capitalization (US$ Billion), 20072011
Figure 5: Indian Repo Rate (%), April 2009 April 2012
Figure 6: Indian Wealth Management Market Size by Asset Class (US$ Billion), 20072011
Figure 7: Indian Initial Public Offerings (US$ Billion), 20072011
Figure 8: Bombay Stock Exchange Performance (500 Index), 20002012
Figure 9: Indian Market Capitalization (US$ Billion), 20072011
Figure 10: Indian Total Bank Deposits (US$ Billion), 20072011
Figure 11: Indian Asset Under Management of Mutual Funds (US$ Billion), 20072011
Figure 12: Indian Life Insurance Market Size (US$ Billion), 20072016
Figure 13: Indian Life Insurance Total Assets (US$ Billion), 20072016
Figure 14: India Gold Demand Volume (Tonnes), 20072011
Figure 15: India Gold Demand Value (US$ Billion), 20072011
Figure 16: Indian Art Funds Market Size (US$ Million), 20072011
Figure 17: Indian Wealth Management Market Customers HNWI Composition
Figure 18: Indian HNWIs Volume, 20072011
Figure 19: Indian HNWIs Volume, 20122016
Figure 20: Indian HNWIs Value (US$ Billion), 20072011
Figure 21: Indian HNWIs Value (US$ Billion), 20122016
Figure 22: Indian HNWIs Regional Distribution (% Share), 2011
Figure 23: Indian UHNWIs Volume by Type of HNWI, 20072011
Figure 24: Indian UHNWIs Volume by Type of HNWI, 20122016
Figure 25: Indian UHNWIs Value by Type of HNWI (US$ Billion), 20072011
Figure 26: Indian UHNWIs Value by Type of HNWI (US$ Billion), 20122016
Figure 27: Indian UHNWIs Regional Distribution (% Share), 2011
Figure 28: Indian Core HNWIs Volume by Type of HNWI, 20072011
Figure 29: Indian Core HNWIs Volume by Type of HNWI, 20122016
Figure 30: Indian Core HNWIs Value by Type of HNWI (US$ Billion), 20072011
Figure 31: Indian Core HNWIs Value by Type of HNWI (US$ Billion), 20122016
Figure 32: Indian Core HNWIs Regional Distribution (% Share), 2011
Figure 33: Asset Class Composition (% Share), 20072016
Figure 34: Indian HNWI Liquid Asset Composition (US$ Billion), 20072016
Figure 35: HNWIs Investment in Cash and Deposits (US$ Billion), 20072016
Figure 36: Indian HNWI Investment in Real Estate (US$ Billion), 20072016
Figure 37: Indian HNWI Investment in Equities (US$ Billion), 20072016
Figure 38: Indian Wealth Management Services
Figure 39: Indian Wealth Management Trends and Growth Drivers
Figure 40: Non-Resident Indian Remittances (US$ Billion), 20072011
Figure 41: ICICI Bank Official Twitter Page
Figure 42: ICICI Bank Official Facebook Page
Figure 43: HDFC Bank Official Twitter Page
Figure 44: Strategies to Succeed in the Indian Wealth Management Market
Figure 45: A Unified View of Customer Investment
Figure 46: Indian Wealth Management Challenges

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