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Tag: wealth management career

Career Advice: Financial Planner or Wealth Manager!

Posted on by Imarticus Learning

Introduction

A financial planner and a wealth manager both come under financial advisory jobs. A financial planner helps in managing day to day finances of their clients whereas a wealth manager helps in preserving the current wealth and adopting sustainable development so that the financial resources may be preserved for the future.

There are a lot of differences in both these job roles and similarities too. It is up to one’s interests and capabilities that which one he/she chooses. Let us see both these careers in detail and compare them.

Job Roles

Financial planners are concerned with lifestyle planning. Their target audience is generally middle-class people or low-level companies. They help people in meeting the ends and give them advice on how to invest money in their lifestyle while saving too.

Wealth Management coursesTheir job duties include saving money for college, budgeting, retirement planning, insurance planning, etc. Their clients are normal people who want to use their income in a planned way so that they could achieve their life goals or some short-term goals.

A wealth manager on the other hand deals with HNI (High Networth Individuals) clients or Ultra HNI clients. A wealth manager helps rich businessmen/people to preserve their wealth and adopt a sustainable development process. A wealth manager analyses the market and advises his/her clients on investment opportunities. They are involved in chores like capital/revenue planning, estate planning, risk identification & management, etc. They help their clients in identifying the risks of investing in any new venture. They help in sustainably using financial resources & services.

Education & Skills Required

Wealth managers & financial planners tend to do a bachelor’s degree in economics, accounts, finance, or mathematics. However, the certification courses vary for them. A wealth manager generally does a CPA (Certified Public Accountant) course whereas a financial planner prefers a CFP (Certified Financial Planner).

Wealth Management coursesThere are a plethora of Wealth Management Courses available on the internet. However, any professional in the wealth management or financial planning sector can do both of these certification courses as there is no necessity for any one of them for getting a job. These certification courses boost your skills.

The skills needed are almost identical in both sectors. The major skills needed in the wealth management & financial planning sector are analytical skills, market analysis skills, communication skills, forecasting skills, networking skills, etc. As a wealth manager, you will need to have a large network of HNI or Ultra HNI clients in the market as compared to a financial planner.

What to choose?

If you have a natural market of HNI/Ultra HNI clients, then go for a Wealth Management Career otherwise you can opt for financial planning. Wealth management requires more networking skills than a financial planner. The salaries of wealth managers are also higher than those of financial planners.

The best criteria would be to aim for a wealth manager and if things don’t work out then go for financial planning because the skills & education required are almost identical in both fields. This was all about career advice related to wealth management & financial planning.

What is The Wealth Management Career Ladder?

Posted on by Imarticus Learning

Introduction

Wealth management is an advisory service where a wealth manager advises his/her clients in making better financial decisions. A wealth manager makes sure that financial services and resources are used appropriately to generate profit.


Wealth managers can be found in a lot of sectors like estate planning, retail banking, tax processes, investment sector, etc. A wealth manager also focuses on sustainable development i.e. using resources in such a way that they could be preserved for the future.

 

Let us see more details about the wealth management career.

 

 Wealth management Education
If you are thinking to start your career in wealth management, the first and foremost requirement is to have the necessary set of skills. You need to have a bachelor’s degree in mathematics, finance, economics, management, business, etc. You can also take wealth management courses via the internet. Many wealth managers go for a CFA (Chartered Financial Analyst) course as it helps them in gaining skills for senior wealth management job roles.

Besides education, you also need to do internships to get a basic idea of working culture in the wealth management sector. A lot of institutes/colleges offer summer term internship program or you can grab an internship off-campus. You will learn about updating client portfolios, mutual funds management, financial analysis & research, etc.

 

With the help of education & internships, you will learn about the basic skills required in the wealth management sector such as analytical skills, financial understanding skills, market analysis skills, forecasting skills, etc. Getting a good education or certification is the first process in building a successful Wealth management career.

 

 Career Path in Wealth Management

Once you have completed your education and are ready to work, you can apply for various wealth management job roles. There is a lot of opportunity in this sector. According to the U.S. Bureau of Labour Statistics, the growth rate predicted in the wealth management sector is 15% from 2016 to 2026 which is much higher.

 

Career path in wealth management


You can work as a wealth manager in a financial advisory firm, retail bank, investment bank, or as a freelancer. You will grow your reputation as a wealth manager over time. The more you help your clients in achieving their financial goals or booming their business, the more is your demand as a wealth manager in the market.


Job Roles in the Wealth Management Sector

There are a lot of different job types in the wealth management sector. Let us see some major wealth management jobs:

 

• Investment Counselor –

Investment Counselor in Wealth ManagementThey focus on the financial relationships of his/her client. They keep analysing the market and ping their clients whenever a good investment opportunity occurs. They also work in investment banks advising clients on whether to invest in any particular venture or not.

 

• Portfolio Manager – They usually work with HNI clients. They are responsible for updating and analysing client portfolios.

 

• Business Developer – They help in the growth of their client’s business by maintaining good financial relationships. They usually work with ultra HNI clients.

Financial Advisor in Wealth ManagementFinancial Advisor – They help in making financial strategies and models. They are also considered with insurance-related problems. A personal advisor can work for a firm or as a freelancer.

These were some of the major job roles in the wealth management sector. It usually depends on the firm/company that what type of services are they expecting from a wealth manager.

Conclusion

You can learn more about the skills required in the wealth management sector via various Wealth management courses available on the internet. This was all about the Wealth management career path and what opportunities are waiting for you in this field.

Recovery and Risk of Inflation in the Post-Covid-19 Economy!

Posted on by Imarticus Learning

This is the question in the back of every investor’s mind. It is the question that is being asked to every professional with a wealth management career. How will the economy of India look like post-covid-19? How does the risk of inflation look for the last two quarters of 2020-2021?

Business Analyst Training with Placement

There doesn’t seem to be a clear answer but experts weigh in on their thoughts on the basis of the current situation as the economy finally starts recovering.

Let’s take a look at projections and initial thoughts even as India’s GDP takes a plunge.

Inflation or Deflation?

That is the question currently plaguing industry experts. While current inflation data pinpoint a situation where the inflation rate is bound to go up, some experts believe that the fall in demand for goods will cause deflationary pressures. These will nullify whatever the inflation that may have caused due to a dull first two quarters of 2020.

“We expect elevated inflation to be transitory. As supply chains are restored and demand remains weak, we expect inflation to fall sharply to average 2.5-3.0% year-on-year in the second half,” says an economist at Nomura. This shows a mix of inflation and deflation which will take its own time to settle over the first two quarters of 2014.

The Gap Between Rural and Urban Areas

Another important facet of the current situation is the varying trends in rural and urban India. While prices of goods still remain high in rural and interior India, pushing the inflation figure to 6% and above, the opposite is true for urban regions. Prices have normalized and so have the demand, which is being met due to unobstructed supply with Unlock 4.0 coming into effect from the start of September.

This makes several experts note that the worse days are behind us. In the months of April, May, June, and July – which observed the strictest lockdowns in the country – the inflation was on the high side. It is bound to alleviate in the coming months as the economy opens up and life goes back to normal.

Even professionals in the wealth management field echo these thoughts with an optimistic projection for the next months. The spike in prices of foods and other essentials rose during the lockdowns but is not back to normal, hinting at a stabilization.

Risk of Inflation

The record fall in India’s GDP in nearly four decades also shows the likely possibility of inflation in the coming months. According to an IDFC First Bank statement, “Overall, with real GDP expected to contract 6.3% in FY21 and with sustaining negative output gap, core inflation is only likely to move lower. On the non-core side, food inflation is expected to remain moderate supported by a robust start to Kharif sowing, expected good monsoon and the government holding significant buffer stocks.”

However, RBI’s surveys have shown an increase in expectations, mostly due to many more services coming back on their feet. While several major sectors – such as cinemas, restaurants, realty – still experiencing limbo with no recovery in sight, inflation is a possibility.

But there is a positive projection for the final quarter of the year 2020-2021, which should be enough hint for wealth management experts to plan ahead.

The current economic situation in India is a great arena for aspiring professionals with a wealth management career to studying projections, inflation, and possible risks to the economy and investments in general. Starting with a wealth management course now and then putting the acquired knowledge to practice is a sure-shot way to land interviews and get hired.

Online MBA Education CoursesExplore more online courses in the field and start studying today.

Interview Questions You Need to Nail to Work in Wealth Management!

Posted on by Imarticus Learning

Take any wealth management interview training and you will see a mix of questions. Some questions will be about the subject or an associated theme while others will focus on ethics. Some others will be about your interpersonal and soft skills, which are equally important for you to both land and pass a job interview.

But detecting the most important questions and answering them in a way that floors the interviewer is what will set you apart. Here are six such questions and how to answer them like a pro.

6 Critical Wealth Management Interview Questions

This is a mix of two topical questions, two about finance in general, and two about ethics. Let’s go.

What is the most important factor when recommending an investment instrument to a client?

You are supposed to be a bit diplomatic here because the answer is in the plural. Both the earning potential/in-hand capital and the end goal/s are important. Only when you know what the investment figure is going to be and for what purpose can you recommend an instrument that will be ideal for that scenario for that person. A third factor would be the investor’s age.

Or you can choose to answer this using an example. In that case, you can give a single answer and impress the interviewer. For instance, assume the age and the figure and leave the third factor to the imagination, which becomes the most important one in that example.

How can an Indian citizen explore offshore investments?

This is a tough nut to crack and will require you to have some knowledge about international investing. Use available info to provide a safe answer. If you can, detail a process out and provide examples.

Wealth ManagementRemember that interviewers love examples. So, keep feeding them with appropriate real-life examples. To learn about new topics such as international investing, explore wealth management courses online.

Do you consider insurance an investment?

This again demands a diplomatic answer. Here you can divide your answer into two:

  1. On its own, insurance can never be termed an investment as it is used as a cushion in case of an unfortunate incident. Moreover, the returns on insurance policies are low and not appropriate when one is considering the management of huge wealth
  2. Depending upon the age of the investor, and if he does not already have insurance, insurance may be considered an investment

Interviewers are looking at your thought process as well as subject knowledge. So, make sure you define the concepts well before providing your opinions on them.

What according to you is an underrated investment path?

This is another tricky question where the interview is testing your knowledge about different instruments. Use your judgment and pick an obscure instrument that provides high ROI and also saves in taxes. Don’t forget to answer diplomatically and use examples.

Wealth ManagementIt is questions like this that makes taking a wealth management interview training worthwhile. You can learn more about the topic as well as know about different investment tools.

Would you suggest tax evasion to a client if it means creating wealth?

This is to test your stand on ethics. The answer is no, but you should garnish it with examples of how you would communicate with the client and provide better solutions.

Would you use one client’s investment information to help another client?

Again, the answer is no, but you should furnish as to why you wouldn’t do it. Providing your opinion may win you some brownie points but beware or it can also backfire.

These are some of the most challenging questions that you may be asked at your next wealth management job. Enrolling into a wealth management course won’t harm.

Coronavirus Fears Accelerate Wealth-tech Innovation! How?

Posted on by Imarticus Learning

Introduction

Wealth-tech is one of the trending sectors in recent days. It is wealth management through digital solutions. Wealth management is being done with the help of technology and it gives better results and accuracy. It also helps in faster analysis & research.

Market forecasting can also be done more accurately with the help of wealth tech services. The recent coronavirus outbreak has slowed down the growth of many industries but it will not slow down the growth of wealth tech services. Let us see how wealth tech services are predicted to grow despite the recent Covid-19 outbreak.

How will the Wealth-tech Sector Grow?

The reasons which will help in the growth of wealth tech innovation despite the coronavirus outbreak are:

  • Wealth-tech has influenced automation in wealth management services. New-age technologies like artificial intelligence, data analysis, machine learning have helped in the growth of Wealth-tech services. People can now automate the wealth management services and they don’t even require a professional to physically manage the processes.
    Wealth Management coursesIt can all be done by smart & intelligent applications. The digital platform can be easily managed by wealth managers from a remote location too. All they need is a system and the client’s requirements. This also helps in adopting more efficiently with the new work from home culture.
  • This pandemic has forced companies/firms/HNI clients to opt for digital wealth management services. If it wasn’t for the pandemic, they still would have been taking traditional wealth management services. It won’t be a hyperbole to say that this pandemic is a blessing in disguise for the wealth tech sector. The employees are also shifting rapidly towards digital platforms.
  • Wealth-tech extends its services to smaller companies as well. The digital tools & services can be used by small scale companies that would have been neglected otherwise.
  • Wealth-tech also helps in cost optimization. Smart applications provide data-driven solutions to wealth management problems and reduce the cost of hiring wealth management professionals for the same. Companies can just use smart digital solutions and can easily manage their wealth.
  • HNI or Ultra HNI clients are also happy about the wealth tech services as they can now talk to their wealth manager from a remote location too. The social distancing norms have been introduced due to this ongoing pandemic. Wealth-tech helps in taking advantage of its services while following the social distancing norms.
  • Market volatility & uncertainty is expected to grow because of the ongoing pandemic. It such times, you don’t want wrong forecasting information so that you end up investing in a loss generating venture. The digital wealth tech solutions are proving to be more accurate than traditional methods. The data analysis & forecasting is more robust & on point via the digital mediums. This will help clients in opting for wealth tech services to know about the trends.
    Data Analysis
  • It is expected that AUM (Assets Under Management) sector will grow from $74.3 trillion in 2018 to $145.4 trillion in 2025 with an impressive CAGR (Compound Annual Growth Rate) of 8.8%. The asset management under wealth management is also shifted to online channels and clients are loving this innovation as it helps them to get more accurate details in less cost. It reduces paperwork and the amount of hard work an individual has to put in to go through all the assets & financial resources of any particular individual.

Conclusion

If you are thinking of building a Wealth Management Career then perhaps this is the right time to step in with all the innovation going around.

You can learn more via the Wealth Management Courses available on the internet. This was all about how the coronavirus outbreak will accelerate the growth of the wealth tech sector.

How Do You Become A Wealth Manager?

Posted on by Imarticus Learning

Introduction

Some people are just obsessed with Finance. They are always busy with their calculations and always talk about money. People who are interested in money and how it runs the world are potential wealth managers.

What is wealth management?

Wealth Management includes the management of various financial products and commodities of a client like assets of people, families, organizations, etc. You can seek a career in wealth management if you are good at assessing assets and handling finance in different forms.

Wealth Management can also be called an advisory service. This service caters to the needs of clients who need help with their finances. Wealth managers charge a fee on theses services and make money out of it. Usually, the wealth management services are availed by high-end clients who want their finances in place.

How to become a wealth manager?

Wealth Managers are paid well. Also, due to the growing demand for wealth managers, a lot of people are looking forward to hiring personal wealth managers. Personal wealth managers are paid more than public wealth managers.

You can opt-in for a wealth management course if you seek a career in wealth management. For becoming a wealth manager, you need to be a graduate. You can go for a certification in Financial Planning or Wealth management.

Also, you must have studied a subject related to business or business administration. You must have a basic understanding of accounting to get into wealth management. Each company has its requirements. The above-mentioned requirements are just some pre-requisites for becoming a wealth manager.

A lot of wealth management companies prefer to hire people from high ranked universities so that they can cash out on advice. A lot of companies also give on-the-job training to the hired employees so that they stand out in their career.

To become a good wealth manager, you should have an in-depth knowledge of the stock markets as a lot of people have a portion of their wealth coming from stock investments. Also, you must know how the market works. You must also understand risk management for assessing your client’s risk profile.

A good wealth manager must be well-versed with different tax laws. Also, he should be good with numbers as his job requires the crunching of numbers.

A good wealth manager should also have good social skills as he has to interact with a lot of people. Also, he must make his clients feel comfortable as they are going to talk about finances. Also, you will be responsible for bringing in business to your firm. Therefore, networking becomes important.

You must also have basic technical proficiency so that you can handle workings on computers. Being tech-savvy is important to keep a check on the stock market and the trends which it is following. You can keep upgrading your IT skills to stay strong in the market.

Conclusion

The best wealth managers are made with hard work and dedication. You must be well informed to serve your clients better.