Wealth Management: Meaning, Components, and Advantages

Wealth management involves financial planning, investment advice, and asset management for affluent individuals.
Wealth Management
3 min
09 April 2024

What do all smart and successful investors have in common? Some may have a knack for recognising and placing strategic bets, some have a deep interest in the markets, and some like to research and make cautious moves. But the one thing that is perhaps common among all successful investors is the knowledge of what is wealth management. Wealth management can equip you to not just earn good returns but also optimally manage your funds and assets to further increase your wealth manifold.

Let’s understand what is wealth management and how it can benefit you and help you meet your financial goals.

What is wealth management

Wealth management is a practice and a service of efficiently and effectively managing money and assets in order to further personal financial goals. As a practice, anybody can take it up. Making smart decisions about investments, researching financial strategies, and managing money in a well-planned manner are all crucial aspects of managing wealth. However, more commonly, wealth management meaning refers to a professional service aimed towards catering to the investment and money management requirements of wealthy clients. It is a comprehensive process and service that encompasses several facets of financial services, like asset management, tax planning, accounting, investment optimisation, and risk management, to name a few. Strategic wealth management often goes beyond these to cater to clients’ unique financial requirements and goals.

If you are looking for safe investments with guaranteed returns, Bajaj Finance FD can be a worthy addition to your portfolio. With interest rates up to 8.85% per annum and the highest credit ratings, Bajaj Finance FD is a reliable and trusted source of investments. Bookings can be made through the Bajaj Finserv website or application.

Components of wealth management

Equipped with a basic understanding of wealth management, let’s now deep dive into the various aspects of the service. If you are curious about wealth management meaning, surely you will wonder what exactly is the broad ambit of services that fall under it. While there are numerous services under the umbrella of wealth management, we will be discussing the most common services provided by wealth managers and wealth management companies. These are-

  • Financial planning- An all-encompassing financial plan will permeate into all parts of your financial life and will cater to your overall goals. It will include targets for investments, expenses, and savings. Wealth managers devise strategies for financial planning to suit individual client needs. Financial planning can also include planning for retirement and other major milestones and events.
  • Investment advice- Even if you ask a layman, what is wealth management, all answers will certainly hint towards investment advice to some degree. Investment advice and planning are a major part of wealth management. Investments are a necessary tool to grow wealth. A wealth manager can help you develop a personalised investment strategy taking into account your needs, goals, and appetite for risk. Wealth managers may also offer services to handle your investments on your behalf. They help you craft a diversified investment portfolio of stocks, assets, bonds, etc., to maximise your return on investments.
  • Tax optimisation- A good wealth manager always works towards minimising your tax liability by streamlining your finances. Typically, people who require wealth management services have multiple sources of income. In such cases, a well-organised financial plan becomes essential to reduce the tax burden.
  • Estate planning- Wealth management is also invaluable if you are looking to develop a plan for the division of your assets after your passing. Wealth managers help you craft a will and assign beneficiaries as per your wishes.

Benefits of wealth management

After gaining a sound understanding of what is wealth management, by now, you would be able to guess a few of the benefits of wealth management. Let’s look at the advantages one by one-

  • Comprehensive financial advice- From investments to retirement to estate planning, wealth management services have you covered throughout the major events of your life and devise innovative strategies to cater to your needs. Wealth managers have a holistic perspective of your financial needs and goals and thus, create robust plans to achieve them.
  • Leveraging experience- Hiring the services of wealth managers or a wealth management company ensures that you have placed your finances in the hands of experts who have years of experience under their belt. This expertise will ensure that you always receive sound financial advice, and even sail through turbulent times with ease.
  • Reduced tax burden- Wealth managers also employ strategies that help you minimise your tax burden, saving more money to invest and spend.
  • Personalisation and customisation- As the umbrella of wealth management services is quite big, often the service entails customisation to fit client requirements. You can rest assured that wealth managers will design a custom strategy for you. In addition, they will also take your personal goals and values into account to provide you with advice that maximises returns for you in the best manner possible.
  • Saving time and effort- If you employ the services of a wealth manager or a wealth management company, they will actively work towards offloading your efforts and saving valuable time so that you can focus on your core work. Let’s assume that you are a business owner without a wealth manager. This means that from accounting to investing, you are overseeing it all on your own, which takes up valuable time. Hiring a wealth manager in this scenario may free up your time so that you can focus on the core business activities and work on growing the business. With this responsibility off your shoulders, you can focus on what matters to you the most.

For investors who seek a secure investment to generate guaranteed returns in the long run, Bajaj Finance FD is an attractive option. With flexible payout options, you can choose a tenure according to your needs and rest assured that your investment is safe with us.


Wealth management plays a crucial role in optimising financial resources and maintaining long-term prosperity. It encompasses a wide array of services including financial planning, investment advice, tax optimization, and estate planning, among others, all tailored to individual needs and goals. By leveraging the expertise of wealth managers, you can benefit from comprehensive financial advice, reduced tax burdens, and personalised strategies that maximise returns while saving valuable time and effort. Wealth management not only helps in growing wealth but also in safeguarding and distributing assets according to your wishes, ensuring a secure financial future for both you and your family.

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