For Non-Resident Indians (NRIs), managing wealth and investments back home can be challenging due to geographical distance, differences in regulations, and dynamic market conditions. A skilled NRI wealth manager based in India can be invaluable in navigating these complexities and meeting financial goals.

Here’s a guide to help NRIs choose NRI Wealth Manager back in India.

Your Preparation Before You Start Looking

Before looking for a wealth manager, it’s crucial to define your financial objectives. Do you want to grow your wealth, preserve capital, or generate income? You may also need assistance with estate planning, tax optimization, or philanthropic initiatives. Understanding these goals will help you evaluate if a wealth manager has the right expertise and resources to meet your needs.

Different wealth managers specialize in various areas, such as equity portfolios, real estate, private equity, or estate planning. Your specific requirements will guide you in narrowing down a wealth manager with the right skill set.

Starting the Search for a good NRI Wealth Manager

The best way is to start searching by taking the views of your friends or colleagues who have engaged NRI wealth manager & financial planners in the past and still working with them. Not only do you get names, but they can guide you on specifics to look at. Googling is also another way. Look on the web and their social presence.

Social presence and the messaging they give is a great way of differentiating between agents & advisors.

Check Credentials and Experience

A wealth manager’s qualifications and experience are essential indicators of their credibility and expertise. Look for individuals or firms with certifications such as Certified Financial Planner (CFP), or certifications from SEBI (Securities and Exchange Board of India).

Experience in handling NRI portfolios is an added advantage, as NRIs have unique investment needs and face specific regulatory conditions. No one can beat experience. We have a changing world & economy. Only with experience, a person can learn the art.

A wealth manager with a proven track record and experience in diverse asset classes, including equity, debt, and alternative investments, can provide better solutions for long-term wealth management.

Evaluate the Range of Services of NRI Wealth Manager

The wealth management needs of NRIs often extend beyond simple investment advisory. Look for a wealth manager who offers comprehensive services, such as:

• Investment Management: Ability to diversify your portfolio across asset classes like equity, debt, real estate, and more.
• Tax Advisory: Knowledge of Double Taxation Avoidance Agreements (DTAA) and understanding of how Indian taxes apply to NRIs.
• Estate Planning and Succession: Ensuring smooth inheritance processes for your family and providing advice on will creation.
• Forex Services: Assistance with remittances, foreign currency deposits, and currency risk management.

Also, NRI wealth managers should be well versed in the Foreign Exchange Management Act (FEMA), which governs NRI investments in India.

Also reviewing the investments is very essential. Look for a wealth manager who reviews portfolios regularly and realigns them with changing economics.

A wealth manager who offers a holistic service suite can cater to all your financial needs without requiring multiple advisors.

Check for Transparent Fee Structures

The fee structure is a critical component when choosing a wealth manager. Some wealth managers charge a percentage of the assets under management (AUM), while others charge a flat fee. Very few work at an hourly rate in India. As an NRI, transparency in fees is essential because hidden costs can erode your returns.

Understand if the NRI wealth manager charges additional fees for services like portfolio rebalancing, tax advisory, or estate planning. Ensure there are no hidden charges, and ideally, look for a wealth manager who follows a “no-commission” model. This ensures that the manager’s interests align with yours, as they won’t push high-commission products unnecessarily.

Check for Digital Accessibility and Transparency

Being physically distant from India, you’ll need a wealth manager who offers robust digital accessibility. A well-established wealth manager will have a digital platform where you can monitor your portfolio’s performance, make transactions, and receive real-time updates on market developments.

Transparency in reporting is equally essential. The wealth manager should provide clear and timely reports on your portfolio’s performance, including gains, losses, fees, and taxes. A secure online platform that lets you view and control your investments can provide peace of mind and help you stay engaged with your wealth management journey.

Assess Risk Management Capabilities

For NRIs, having a NRI wealth manager who understands and actively manages risk is essential. Evaluate the wealth manager’s risk management strategies, including how they handle market volatility, sectoral risks, currency risks, and economic changes. Ask questions about their approach to risk mitigation and see if it aligns with your risk tolerance.

A competent NRI Wealth Manager will employ diversification, sectoral rotation, and dynamic allocation to protect your portfolio during volatile times. They should also be familiar with hedging strategies to counter currency risk, which is relevant if you’re earning in foreign currency and investing in Indian assets.

Seek References and Do Background Checks

Reputation and reliability are crucial in the wealth management industry. Ask for references from the wealth manager’s existing clients, ideally other NRIs, to get a sense of their service quality. Additionally, look up reviews, testimonials, and the wealth manager’s performance history to verify their credentials.

Professional platforms like LinkedIn and financial forums can provide insights into their reputation and client satisfaction. If possible, seek feedback from your network to understand how the wealth manager operates in the long run, especially during market downturns.

A good wealth manager will be not just an advisor but a trusted partner who helps you navigate the Indian financial landscape, optimize returns, and meet your long-term financial objectives. With the right wealth manager, you can feel confident that your investments in India are well-managed, secure, and aligned with your financial vision.