We are about to start a wealth management company as the economy of India is one of the fastest growing in the world and has shown astonishing growth in the last two decades. India one of the highest populations of upper middle class. Although the investible income has increased people are not getting proper guidance about possible investment tools.
We are are planning to start a wealth management company on pan India basis having world class infrastructure, latest technology, and highly qualified band of professionals that will provide world class solutions to our clients.
Why wealth management? As you are probably aware of, India is one of the fastest growing economies in the world only next to China. India has 8-9% growth in GDP at a time when the global economy is facing so much problems. India is the 4th largest economy in the world and is running fast to take the 3rd position by replacing Japan as Japan's economy is shaking after the Tsunami tragic.
India's GDP is booming, hence many opportunities are emerging for the Indian people to earn money. Furthermore, India is seen as a hot cake for foreign investors. Reports say that it will become "A Trillion Dollar Market" for the wealth management sector. One report says that 42 million households will be the target size for wealth management by 2012. These households have been categorized into different groups as follows:
1) Ultra HNI - 10500 households having $30 millions investible wealth
2) Super Rich HNI - 42000 households having networth of $10-30 millions
3) HNI group - 3,20,000 householdsthat can invest $1-10 millions
4) Super-affluent class - up to 3,50,000 households having wealth of Rs. 50 lakhs to 4 crore
5) Mass affluent - will add 10 lakh more households to reach the size of 18 lakh households that can invest Rs. 10- 50 lakhs.
The vast majority households (39 million out of 42 million) would belong to Mass market ( Rs. 2- 10 lakh).
Wealth management revenues are expected to contribute 32-37% of the total revenue of full service financial institution by 2012. This market is still dominated by unorganized players whose share is 1.5 times more than that of organized players.
We are planning to penetrate this sector as it is in its initial phase of development. Our project idea is to have branches throughout the India i.e. in all metro and semi metro cities. We plan to start with 50 branches with a total employees figure of nearly 4500-5000 which will include sales force, operational team , administration, marketing force, researcher's team, analysts, fund managers, economists, top level management, and various other supporting departments .
This all will take us to a figure of nearly $50-100 millions initially.
So far the company is in its first phase, i.e. formation. Therefore, there is a good opportunity for investors to join as we can also offer a sit in the board of directors.
We can offer a ROI of 12.5-15% for the first 3yrs. and 7.5 for the remaining years.