Why Wealth Management Services Are Essential During Market Volatility?

As of 2025, there are 8,50,000 high-net-worth individuals, and this figure is supposed to be doubled by 2027. However, accumulating wealth through profit generation requires adjusting to market volatility, and wealth management services might be the right solution. 

A Brief on Wealth Management Services in India

The securities market is volatile, and stock prices rapidly fluctuate when the market is active. As an HNI investor, you must be looking for ways to deal with such volatility and wealth management services might help with their market expertise: 

1. A wealth management service provider curates optimised financial, investment, tax, and alternative investment plans to ensure an optimised return. 

2. They provide financial services for high-net-worth individuals who have investable assets of more than INR 5 crore.

3. These service providers manage a higher volume of assets, and they charge up to 2% annually based on the Asset Under Management (AUM). 

4. Wealth managers are also equipped with various certifications. This makes them knowledgeable and trustworthy, and if you fall under the HNI category, such service providers might generate optimised returns during market volatility. 

Key Roles of Wealth Management Services During Market Volatility

1. Tailored Financial Planning

Depending on your life goals, such as retirement planning, securing your and your family’s health and education, wealth managers provide the following services in a volatile market:

• Depending on your goals, such as saving for retirement, higher education or vacation, spending objectives, etc, wealth managers curate proper financial planning. 

• Across big cities, even at the school level, educational fees are rising by up to 15% every year. In such a scenario, a wealth manager provides financial advice to deal with such an increasing expense to secure your children's future. 

• Healthcare costs in India are inflated and, as of FY25, rising at 14% annually. Wealth managers suggest building a corpus through health schemes, insurance, and other options.

2. Informed Investment Decisions

Whether you invest in equity shares or mutual funds, your fund manager helps you make informed decisions:

• The wealth management services carefully assess your financial background, the amount you want to invest, your risk appetite, etc.

• Suppose your risk tolerance is high and you want to invest INR 10 lakh. Your wealth manager might suggest investing INR 6 lakh in large-cap, INR 3 lakh in mid-cap and INR 2 lakh in small-cap stocks to balance growth and risks.

• If you have invested in a long-term mutual fund, during high volatility, you may panic and want to withdraw the invested funds. A wealth manager might suggest not withdrawing funds, as these funds have enough time to recover from short-term swings. 

3. Portfolio Diversification and Optimisation

Wealth management services diversify your portfolio to manage risks and invest in assets other than equities:

• Wealth management services in India help diversify your portfolio by investing your money across asset classes, industries, sectors, etc.

• For example, in FY25, the renewable energy sector in India saw an inflow of INR 1,00,000 in total. It is also expected to grow by 3 times by 2027. A wealth manager might grab such an opportunity and invest in such a sector for a potential return.

• Such service providers also might advise investing in commodities. They include assets like gold that might provide returns enough to deal with volatility.

Conclusion

Hiring a wealth management service provider is helpful to deal with the ongoing market volatility. They curate financial and investment planning based on your goals, risk appetite and other factors. Such services try to provide an optimised return and wealth accumulation.