A recent study by a market research company New World Wealth has revealed that India is the seventh largest wealth market in the world.
The report finds that India is a home to 2.36 lakh HNIs in 2015. In 2007, India had 1.52 lakh HNIs. This reflects a growth of 55% in 8 years. The combined wealth of HNIs in India is USD1.5 trillion (Rs.1001 lakh crore as of today).
This gives a huge scope for IFAs wanting to penetrate the HNI space in India.
Mumbai-based Kartik Jhaveri of Transcend Consulting who caters to HNIs clients feels that IFAs need to be better armed to penetrate this market, “It is much easier to meet a prospective client than to convert him. To convince a HNI you need to have a good knowledge. HNIs look for a higher level of value addition, more involvement and better services.”
Pointing out that the number of HNIs is only bound to grow, Kartik advises IFAs to change the way they approach clients, “With HNIs it is more of a discovery process one needs to follow. Do not list out what you can do, instead find out what he wants and discuss how far you’ll be able to help him.”
Ramkumar H Barchha an IFA who caters to 200 HNI families, feels that most IFAs commit the rookie mistake of talking about returns first, “The main focus while talking to a HNI should be safety, followed by liquidity and finally by returns. One needs to think like a HNI in order to be able to address them better.”