As we approach the twenty-fifth anniversary of ‘liberalisation’ of the Indian economy, the role of Wealth Management/Financial Advisory industry is one of the most visible difference from the ‘pre-liberalisation’ era. There are reasons for this. The growth witnessed by the Indian economy in the last couple of decades has coincided with a historical reduction in interest rates and a substantial increase in the share of private sector in formal employment.
A historical lowering of returns from fixed income instruments and absence of guaranteed post-retirement income made retail investors test waters with financial instruments other than fixed deposits and insurance products bundled as investment products. This has been encouraged and felicitated by the fund managers and private life insurance companies that have come into existence since 1991.
These developments have corresponded with an explosion in media, across electronic, print and online platforms dedicated to news focused on capital markets and the wider economy. An amalgamation of all these evolved into what is commonly referred to as the wealth management/financial advisory industry.
