What is wealth management?

The first thought you might come across while thinking about wealth management can be, a personal banker helping to create an abundance of wealth for an affluent individual.

However, it simply means managing investments for all kinds of investors, to offer them better returns. If taken into consideration, wealth management or money management grows your money exponentially and helps you achieve your long-term financial goals like your dream house, your child's education, your retirement, and much more.

How does wealth management work?

Wealth management is primarily about financial planning and offering better returns on investments. Since the principle of wealth management lies in the long-term preservation of funds, this is how wealth management works:

  • The first step is for your wealth manager to understand your financial goals, time horizon, and risk appetite.
  • The second step is to come up with a suitable plan for you. This involves suggesting the right strategies, products, and investments for you. The wealth manager also takes into consideration your liquidity concerns, tax liabilities, and current as well as past investments.
  • The third step is to execute the plan. The money is invested in the financial instruments of your choice and your investment strategy is implemented
  • The last step requires evaluating and modifying your plan from time to time, as per your changing needs.

Objectives of wealth management

Some common wealth management objectives are as follows:

  • Defining and prioritising your financial goals, such as buying a house, saving for your child’s higher education or retiring comfortably
  • Developing good financial habits and savings in a disciplined manner
  • Maximising your returns basis your risk appetite
  • Tax planning
  • Estate planning

Wealth management strategies

Below are some ways that can help you achieve your wealth management needs:


Creating a budget is the first step in effective wealth management. A budget serves as a roadmap of your financial plan. You must account for various aspects in your budget, such as your income, expenses, savings and investments. It is also important to categorise and prioritise your expenses to ensure your funds are allocated efficiently towards achieving specific financial goals.

Financial planning

It is important to set clear financial goals for effective wealth management. Identifying your long-term and short-term goals will help you plan the course of action to achieve them. This may involve setting a monthly savings target, investment plan and more.

Investment management

Investing money effectively is a key objective of wealth management. Investing helps you grow your wealth and beat inflation. Your investments will depend on your risk appetite and the period for which you want to invest. It is important to have an investment portfolio with different types of financial instruments. This helps balance your portfolio and manage risks. You must also regularly review and adjust your investments basis your changing needs.

Professional advice

Qualified professionals such as financial advisors and wealth managers can help you with their expertise in developing a plan to effectively manage your wealth. They can help you take informed decisions, use their knowledge while making financial decisions and build your wealth management plan. They also help with information about market trends and potential opportunities.

Benefits of wealth management

Here are some benefits of wealth management:

Retirement planning

Once you retire, your regular income stops. So, wealth management can play a crucial role in financially securing your retirement years. With the right plan, you can ensure that your retirement savings help you maintain your current lifestyle as well as achieve your post-retirement goals

Financial planning

Effective wealth management takes into account your financial requirements. It helps you grow your savings, plan for future goals and optimise your tax liability

Risk management

Wealth management helps you select investments that suit your risk-taking ability. It helps ensure that you have a balanced portfolio that not only focuses on growth but also safeguards you from unforeseen market fluctuations

Cost savings

Cost saving is a significant benefit of wealth management. It uses strategic financial planning, budgeting and expense management to ensure better savings

Tax planning

With a wealth management plan, you can minimise your tax liability by efficiently using tax planning strategies. This helps you save more and enhance returns from your investments

Investment options

Wealth management enables you to analyse various investment options. You can evaluate the risk and returns of different investment options and make informed choices basis your financial goals


What are the features of wealth management?

  • Wealth management is tailor-made and client-specific. So, the products and investment types are suggested based on your preferences. Your risk appetite, timeline, liabilities, assets, etc., are kept in mind before devising a plan of action.
  • The job of a wealth manager is not limited to advising alone. Instead, they offer several financial services, such as managing your wealth, finding opportunities to create more wealth, and revisiting your plans after periodic intervals.
  • Wealth management involves using a variety of aspects to not only manage your wealth but also to align with your family’s needs. Some of the duties of a wealth manager include tax management, retirement planning (annuity plans), personal finance management, and insurance planning (term, health, endowment, unit-linked plans and more).
  • Wealth managers are experts in specific fields of finance. So, they offer their professional expertise in many unique areas to create wealth.

The insurance plan preferred by wealth managers - ICICI Pru LifeTime Classic*

ICICI Pru LifeTime Classic is an ideal plan chosen by wealth managers for long-term wealth creation. This unit linked investment plan+ offers you two major benefits – Financial protection for your loved ones in the form of a life cover~ as well as the opportunity to create significant funds for your financial goals.

The plan offers 4 portfolio strategies, and you can choose any of these as per your goals and risk appetite. You can choose between equity, balance and debt funds, and switch between these funds at any point in time, without any additional charges. In addition to this, the plan rewards you with loyalty additions^ and wealth boosters` for staying invested for a longer period and paying all your premiums without any defaults. This considerably adds to your overall earnings. You can also choose to pay the premium monthly, half-yearly, yearly, or stick to a one-time payment. Lastly, you get tax benefits of up to ₹ 46,800/-# on the premiums paid, under Section 80C of the Income Tax Act, 1961.

People like you also read ...

* This is not a product brochure. For more details on the risk factors, terms and conditions, and the charges and benefits related to Surrender, Premium Discontinuance, Revival etc., please read the sales brochure carefully before concluding the sale. Past performance is not indicative of the future performance.

+ Unlike traditional products, unit linked insurance products are subject to market risk, which affects the Net Asset Values and the customer shall be responsible for his/her decision. The names of the Company, product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns. This is a unit linked insurance plan. In this policy, the investment risk in the investment portfolio is borne by the Policyholder. Unit linked Insurance products do not offer any liquidity during the first five years of the contract. The Policyholder will not be able to surrender/withdraw the monies invested in unit linked insurance products completely or partially till the end of the fifth year. On surrender, after completion of five years, the surrender value will be the Fund Value including Top-Up Fund Value, if any.

^ Loyalty Additions: Each Loyalty Addition will be a percentage of the average of daily Fund Values including Top-up Fund Value, if any, in that same policy year. Loyalty Additions will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation. The allocation of Loyalty Additions is guaranteed and shall not be revoked by the Company under any circumstances. If the premium payment is discontinued any time after 5 years, the number of years for which premiums have been paid will be considered as the premium paying term for the purpose of deciding the Loyalty Additions to be paid for the rest of the policy term.

` Wealth Booster: Each Wealth Booster will be equal to a percentage of the average of the Fund Values including Top-up Fund Value, if any, on the last business day of the last eight policy quarters.

Wealth Booster will be allocated between the funds in the same proportion as the value of total units held in each fund at the time of allocation. The allocation of Wealth Booster units is guaranteed and shall not be revoked by the Company under any circumstances. If the premium payment is discontinued any time after 5 years, the number of years for which premiums have been paid will be considered as the premium paying term for the purpose of deciding the Wealth Boosters to be paid for the rest of the policy term.

# Tax benefits of ₹ 46,800/- under Section 80C is calculated at the highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000/-. Tax benefits subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Service Tax and cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

~ Life Cover is the benefit payable on the death of the life assured during the policy term.

ICICI Pru LifeTime Classic (unit-linked non-participating individual life insurance plan) - UIN: 105L155V08


Back to Top