One of the most complex aspects of maintaining wealth is to preserve it to the extent that the fund will remain in a safe and secure place and the family can enjoy the wealth from the long-term perspective. For example, an individual who has made money from certain businesses or trades, then they will want to preserve that wealth so that they can make a return on top of that.
However, even in HNI families, there is a need for professionally managed funds, and to maintain that, one might use the help of professionals who are experts in that domain. That’s the trend today we will explore and how the Indian HNIs are moving towards more professionally managed funds to take care of their wealth.
In this blog, we will look into some of the trends that are going around the family offices of ultra-high-net-worth individuals and how they are managing their wealth.
The Rise of the Indian Family Offices
In the Indian context, it’s a new trend to witness that the family offices of large business houses are trusting more of the professionals who have the expertise to manage funds and do deals on their owner’s behalf.
For example, an agent can be discovered by the professionals of the family office through the One Andro app which is a place for getting guidance on any loans or financing options. A business doesn’t directly invest its cash into a new project. Rather, they seek the option of lending at lower interest which will allow the business family to take the leverage of large cash volume and to keep the returns if the investment turns profitable.
How the Evolution is Happening in the Family Offices
The new family office is something that allows a person to have the advantage of the markets of the world, and through that, they can make wider investment decisions. A person can make better trades and returns with the help of these investments, and a professional can help a family office to make investments both in the private and public markets.
Previously, these offices were either managed by the attorney of the family or some two or three family members. One of the most common types of format was that it was needed in the previous offices as there were not much of investing options. Now, due to the globalized market, there is competition in the market, and the need for professionals has become more than necessary.
The Growth of HNIs in India
India is a country that is now growing, and the rising economy gives rise to many individuals who are setting up new businesses and, therefore, are jumping into the class of high-net-worth individuals and are making progress in the market. These are the new class of entrepreneurs who are setting up a family office and are required professionals who can manage funds for them.
The Need for the Professionals to Manage Such Funds
Today, if we look into the family office market, there is a need for a Chief Investment Officer (CIO) or some fund managers who are proficient in handling a large volume of cash and managing wealth.
These are some of the most common ways the HNIs can get their funds to make more returns from the market. The professionals can also look for the One Andro DSA app for getting a loan for the venture of the family. Thus, a professional can get into the details of the family business through which one can maintain the work and do all the paperwork for the family owner who needs time to do other important things.
How These Family Offices Can Start New Businesses
The family offices are the ones in which one can maintain and manage the existing business of the family. A professional can also manage and maintain the new businesses that the family is entering.
There are new businesses that have made money from real estate businesses and are now entering into retail and e-commerce. The professionals in the family offices help the business to secure funds and make strategic investments. Apart from starting new businesses, the professionals in the family office can also provide tax advisory services, which the high-networth individuals require.
These are some of the reasons we are witnessing the rise in the professional services of the family business offices and why it’s now becoming a necessity for the HNIs.
