Wealth management: An Introduction

The term wealth management consists of two words, Wealth and Management. The meaning of wealth is – Funds, Assets, investments and cash. It means the term wealth management associated with funds assets, instrument and cash etc. While defining wealth Management, therefore, it is necessary to think of a planned way to invest your money. Therefore, a conclusive definition of wealth management therefore is: "Wealth Management is an all inclusive set of strategies that aims to grow, manage, protect and distribute assets in a much planned systematic and integrated manner. "
Services offered by wealth Arrangement institutions can be broadly divided into the following categories:
(1) Custodian Services: This includes services like Securities Safekeeping, Income collection from Securities, Settlement of Securities trades as directed, Payment of funds when directed and Timely settlement delivery.
(2) Trust Services: This includes services and products like Charitable Trust, Revocable Trust, irrevocable life Insurance Trust, Special Need Trust and Institutional Trust etc.
(3) Retirement Plan Services: extensive retirement financial planning services like IRA's Custodian Or Trustee, Defined Benefit Plans, Defined Contribution Plans
Wealth Arrangement is slightly different from simple finance management. Someone entailing wealth management services will always stand in an advantageous situation, because of the numerous pros of this system. The following are the distinct advantages of wealth Arrangement concept.
1) Helpful In Tax Planning : A wealth management professional always shows the good path to the customers and provide the service of tax planning. This helps the customers in managing their wealth effectively

2) Helpful In Selection of Investment Strategy: Another advantage from the customer point of view is that with the help of WM Professional the customer can easily know the investment strategy and analyze risk and return.

3) Helpful In Estate Management: With the help of wealth management professional one can also manage our estate. Estate management is a task to provide objective administration of our funds tailored to aim in responsible distribution and protection of our overall estate.

4) Helpful in future planning: We can say wealth planning, vis a vis the growth and changes occurring in our assets and estate etc requires professional attention, with the help of which, one can indulge in advance future financial planning.

5) Helpful for Indian Economy: Banks which are engaged in business of Wealth management earn revenues from the foreign countries, therefore, outsourcing for the Indian economy.
Limitations of wealth management are relatively few. But when it comes to a consumer in India, it is necessary to go through them carefully, as wealth management is still a relatively new field in the country.
1) Wealth Management Reduces the Scope of Management: Though we all know that management has existence at all levels of life and society but the term wealth Arrangement is only related with the higher level means rich people, and does not have any plans and provisions for the lower and middle level of society.
2) Chances of Fraud: Another demerit or limitation of the concept is that it does not show the actual position. The customer doesn't know about the ways in which his money is being managed, and hence there may be chances of forgery and fraud with customers.
3) Actual Picture VS Inflation: It is difficult to determine the actual position of market, while your finds are being taken care of by an wealth Arrangement professional, and hence one cannot assume his/her position in the market, which might result in inflation, in absence of any knowledge about the actual state of the economy is unknown. There may be a chance that the customers are in risk but they are being shown the false return and vice-versa.