subject: An Investment Plan: How To Safeguard The Future [print this page] In present times, financial management is inevitable for the longevity of every firm. Wealth, a variable, whose value is subject to constant fluctuations; also, wealth, an entity that is desired by all and sundry, but it should be managed in a prudent manner, so as to make certain its prosperity and full bloom. For such purpose, different types of wealth management solutions are derived.
Wealth Management is a common term, wherein the wealth of a business entity or a High Net Worth Individual (HNWI) is managed by a wealth management organization. The concept of wealth management came into existence in circa 1990, in the US. The term wealth management is an assortment of varied kind of Services that are of fiscal nature. Wealth management covers financial planning, asset management, private banking, taxation advisory and portfolio management. Among the above mentioned Services, barring Portfolio Management, all the rest can be customized keeping in mind the specific and individualistic needs of the clients. An investment plan is a must for the proper channelizing and management of the funds possessed by an organization.
The entire notion of a Wealth Manager originated, when the funds available by an organization surged. The constant profits of an organization were loved by all its employees; but that profit needed to be constant rather than being variable. For making the profit constant, the organization felt a rising necessity of using the experience of an expert wealth administrator. In general, wealth managers are skilled professionals, who are engaged in the management of wealth, and are aware of the nitty-gritty of the financial planning. These individuals are solely responsible for channelizing the wealth of a specific firm. The topic of wealth management in India was slowly begotten by the liberalization that took place in 1991. The liberalization policy paved way for the creation of corporate big-wigs. For properly contributing to the strengthening of the economic machinery of the nation, these business top bananas needed to be more efficient with the resources, which they had in their hand. Keeping this in mind, the requisite of diverse financial planning services in India was felt. The wealth managing wizards of an organization or a particular HNWI begin the proper management of the wealth and funds by preparing an integrated Financial Planning Mode, which consists of a set of financial goals, which has to be met by the organization in a premeditated timeframe. Moreover, such a financial model must also include the assumptions of the market (plausible market value fluctuations are taken into consideration); certain details such as Cash flow statements, P&Ls, Balance Sheets, and Types of expenditures & investments of the previous financial year are taken into account. Such a financial planning framework is of import for a systematic and well-thought development of the organization.
