Market Insights Financial Wealth Management

Financial Advisory - India

India

Assets under Management in the Financial Advisory market are projected to reach €0.35tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.00%, resulting in a market volume of €0.35tn by 2029.

Key regions: United States, Singapore, Europe, Switzerland, Canada

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Analyst Opinion

The Financial Advisory market in India is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Indian customers are increasingly seeking professional financial advice to help them navigate the complex and ever-changing financial landscape. With the growing middle class and increasing disposable incomes, individuals are becoming more aware of the need to plan for their financial future. They are looking for expert guidance to make informed decisions about investments, retirement planning, tax optimization, and wealth management.

Trends in the market: One of the key trends in the Financial Advisory market in India is the rise of digital platforms and robo-advisors. These platforms offer algorithm-based financial planning and investment solutions, making it more convenient and cost-effective for customers to access financial advice. The younger generation, in particular, is embracing these digital platforms, as they are comfortable with technology and prefer self-service options. Another trend is the growing demand for specialized financial advisory services. As the market becomes more sophisticated, customers are seeking advisors who have expertise in specific areas such as estate planning, insurance, and tax planning. This trend is driving the emergence of niche advisory firms that cater to specific customer needs.

Local special circumstances: India has a large population with diverse financial needs and goals. The country has a complex tax system, and individuals often require expert advice to optimize their tax liabilities. Additionally, the Indian market offers a wide range of investment options, including mutual funds, stocks, real estate, and gold. Customers rely on financial advisors to help them navigate these options and make informed investment decisions. Furthermore, the Indian government has introduced various initiatives to promote financial inclusion and literacy. This has created a favorable environment for the growth of the Financial Advisory market, as individuals are becoming more aware of the importance of financial planning and seeking professional advice.

Underlying macroeconomic factors: India has been experiencing steady economic growth, which has contributed to the development of the Financial Advisory market. As the economy expands, individuals have more wealth to manage and are looking for expert guidance to maximize their financial returns. Additionally, the Indian government has implemented regulatory reforms to enhance transparency and investor protection in the financial sector. These reforms have increased customer confidence in the market and encouraged more individuals to seek professional financial advice. In conclusion, the Financial Advisory market in India is witnessing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As individuals become more financially aware and the market becomes more sophisticated, the demand for professional financial advice is expected to continue to rise.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).