Wealth managers see jump in new money clients

Indian wealth managers have witnessed a significant rise in 'new money clients', reveals the latest IBM wealth management survey.

As against earlier years when money weighted towards 'old money clients', this year there is a significant shift towards new money clients.

New money clients in India have been growing as a result of the growing Indian economy and the rise of the IT and IT-enabled services industry, said the IBM Indian wealth management and private banking survey 2003-04.

Respondents of the survey "" 19 respondents in total consisting of 10 banks, five asset management companies and four broking firms "" said currently about 42 per cent of their clients were new money households and were likely to go up to 53 per cent in the next three years.

This category of clients typically includes professionals and entrepreneurs who are time-constrained and need a wealth manager to proactively manage their wealth.

Most of the new money clients are wealth creators and are often more willing to take risk.

Old money clients are those who generate wealth by dealing in old economy segments such as manufacturing and commodities.

The survey also projected a growth rate of 25-100 per cent for wealth managers in the next two years. The wealth management industry in India is set to continue to grow rapidly with the entry of new players in the next few years.