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Wealth Management – Meaning, Features, Benefits, Strategies & more

Last Updated Date - Feb 17, 2023

Money needs to be managed properly with time so that it can grow and not get wasted in the ever-changing economic scenario.

As people’s earning capacity increases, the need for wealth management is becoming imminent as well.

Many times, general people have to knowledge of how to invest their money and grow the same for their future and retirement. This is where a wealth management professional comes into play.

Now, wealth management is not just about advising individuals, but also for companies small and large. Many businesses bring on board wealth management services to help them manage their money.

Wealth management in general involves, investment advice, financial advice, accounting service, retirement planning, estate planning, etc.

Most of the time wealth management services are provided by wealth management firms, where CAs and CFAs help the clients strategically manage their wealth.

Here is everything one should know about it.Wealth Management

Services under Wealth Management

  • Retirement planning
  • Accounting
  • Tax planning
  • Investment management and portfolio building
  • Charitable giving plans
  • Estate planning
  • Legal services
  • Business planning
  • Insurance planning
  • Debt management
  • Income protection
  • Asset preservation

How does Wealth Management work?

The main agenda behind wealth management is to save money for the future and also grow wealth in a way that will not lead to major losses or bad spending.

Many people may not know how wealth management works. In such cases, here is a simple run-through of wealth management works.

In the very beginning, wealth management professionals will analyze investment goals along with the risk appetite of the clients. They will also analyze your financial health and financial mindset, which will help have a clear agenda.

After this, the professionals or advisors will create a strategy in which they will plan in ways you can save money, invest for the future and also handle your tax liabilities, currency financial liabilities, and other life plans that will require a certain sum.

In this stage, the wealth manager will suggest several types of investment instruments as per your goal, which you can choose from.

Next stage, your advisor will execute the plan. They will invest your wealth in set investment avenues preferred by you. Lastly, they will keep an eye on your wealth and investments.

They will also make required modifications and changes as and when needed as per the changing economic conditions and life stages.

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    Features of Wealth Management

    Here are some of the wealth management features that you should know of:

    • Wealth management is a facility that is usually useful for people with a certain net worth. That means, it is a preferred service for high net-worth individuals, with extra money and a lot of risk appetite.
    • The job of a wealth management service is not just creating a plan, but also revisiting the strategy from time to time and giving logical advice to the investors in terms of investment risks and profits.
    • Wealth management is a tailor-made service. This means there is no set rule for everyone. The products and investments suggested for everyone are different from other clients.

    Strategies of Wealth Management

    Some of the strategies used by wealth managers are:

    • They will work on clear budgets.
    • They will set SMART goals: specific, attainable, realistic, and time-bound
    • Diversify the investments in a way to build a more varied portfolio.
    • Will advise investing in insurance like health insurance, term life, etc. to lessen and mitigate risks.
    • Will help stay away from bad debt or keep them to a minimum.

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    Benefits of Wealth Management

    Following are the benefits of wealth management that you should know of:

    • Personalized planning: Wealth management is personalized for everyone. This means wealth managers will create a strategy that is suitable for their clients individually. This is helpful as not everyone will have similar financial goals and neither will they have a similar net worth.
    • Tax planning: One of the major benefits of wealth management is tax planning. Taxes are usually one of the biggest spendings on one’s portfolio. Managers will help in creating financial plans that will help save money by saving on taxes. They can help advise investing money in such avenues that will help reduce the tax burden.
    • Constant advising: manager will provide constant advice on investment plans, retirement plans, and estate plans. This will help the clients in understanding the current market conditions and how they should modify their existing portfolio.
    • Insurance advice: wealth management services will also help their clients in finding the best insurance plans as per their coverage requirements.
    • Estate planning: many people of high net worth tend to get confused and stressed about their assets and what will happen to the same after them. Wealth managers tend to help in planning your estate as per your life goals and your plans on how to manage the same afterward.

    How to choose a Wealth Manager?

    Few things to keep in mind while choosing a wealth manager:

    • Check their overall reputation.
    • Ask about their overall clientele.
    • Check what services they provide.
    • Compare their fees and commissions.
    • See what their past clients are saying about them.
    • Understand their workflow and how they handle every client.
    • Make sure that they are certified and if necessary, ask about their needed credentials.


    Wealth management is a necessity for all those who have more earnings and they plan to grow their wealth over time.

    Wealth managers will not only help in creating a financial strategy as per your requirements but will also advise their clients in making wise financial decisions, reducing debt, managing their wealth for retirement, and planning their estate.

    It is on you to find the best wealth management service available, as per the budget requirement and how many services they need.

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