“On the growth front, the industry might grow probably at 14-15% but there’s a big opportunity for players like us to grow at about 20-25% because of the construct of the industry at the moment and the kind of monetisation that we are looking forward to,” said Ashish Shanker, MD and CEO of Motilal Oswal Private Wealth.
He pointed out that while competition is heating up, the firms that focus on building the right platforms and attracting talent will ultimately lead.
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Shanker explained that wealth management firms usually earn between 55 to 60 basis points as fees, which he believes is both stable and sustainable. Offering additional services can help improve these earnings while still maintaining long-term client relationships.
A large part of the growth is being driven by the move from unorganised to organised wealth management. Currently, only around 20% of India’s financial savings are managed through assisted wealth platforms, leaving significant headroom for expansion.
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Shanker also pointed to the increased flow of capital in the system through IPOs, stake sales, and employee stock options. These are feeding momentum in the wealth management space. “We are also benefiting from the multiple business lines we operate that are linked to the capital markets,” he said.
Feroze Azeez, Joint CEO at Anand Rathi Wealth, echoed the positive view but flagged high employee turnover as a key challenge. He added that major regulatory changes are now behind the sector, reducing policy-related risks. “Wealth management is central to the India growth story,” he said.
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