Edelweiss Advisory and IIFL Wealth are the top wealth management players

Edelweiss Advisory, IIFL Wealth & Asset Management and Anand Rathi Wealth are the leading wealth management players in India in terms of FY21 revenue, according to Anand Rathi Wealth's draft IPO prospectus.

In FY21, Edelweiss Advisory and IIFL Wealth recorded revenue of Rs 1,043 crore and Rs 915 crore, respectively. Anand Rathi Wealth was a distant third with Rs.279 crore revenue.

The ranking is not final. Many wealth management companies, including top players like Ask Investment Managers and Julius Baer Wealth Advisors, haven't yet disclosed their FY 2021 financials.

Financials of wealth management players:

*FY20 data **FY21 data | Rest of the data is of FY21 | Source-Investors Presentation | NM – Not meaningful

All numbers are in Rs crore

In terms of profit, IIFL Wealth is the leader of the segment, followed by Edelweiss Advisory. IIFL Wealth made a profit of Rs 369 crore in FY 2021 at a margin of 40%. Edelweiss Advisory reported a profit of Rs 245 crore.

Anand Rathi Wealth and Motilal Oswal Wealth are the only other wealth management players whose FY 2021 numbers are available. The former made a profit of Rs.45 crore in FY 2021 while the latter earned Rs.27 crore.

High potential of growth

The document notes that the Indian wealth management market is on a sustained path of growth. "While the percentage of wealthy individuals in India is very small compared with developed markets, very high potential of growth in wealth is estimated in future. India has the key ingredients of a high-growth wealth management market, namely driven by a very large and young mass affluent segment; an increase in the wealth of global Indians; the Indian government’s push to control illegal channel of funds and push for tighter regulations of the capital markets," it said.