Wealth creation expands beyond metros: Julius Baer India

Julius Baer, a venerable wealth management firm, has been operating in India for nearly three decades. The company currently serves seven cities and employs around 300 individuals. Julius Baer boasts a robust 135-year history and ranks among the world's largest pure-play wealth managers, managing CHF 547 billion ($672 billion) in assets under management.

Rahul Malhotra, Region Head Emerging Markets and Member of the Global Wealth Management Committee at Julius Baer, discussed the firm's growth objectives in India and shifting investor preferences during an interview with businessline.

The Indian market presents opportunities beyond the metros. To cater to this evolution, Julius Baer is broadening its coverage and strengthening its presence outside the major cities. Over the past four to five years, there has been a notable shift in Indian clients' attitudes towards offshore investments. While a few years ago, clients would typically hold 5-7% of their wealth offshore, today, that ratio has risen to 10-15%, with select families investing up to 20%.

Julius Baer capitalizes on this two-way flow by leveraging its global NRI business, which spans Singapore, Hong Kong, Dubai, and Switzerland. Resident Indians are increasingly seeking to diversify their portfolios offshore, while NRIs remain keen on investing in India. This dual proposition gives Julius Baer a competitive edge. The firm aims to double its business in India over the next five years by augmenting its workforce, expanding its reach, and deepening client relationships.

The hub-and-spoke model, wherein smaller hubs serve surrounding cities, will bolster expertise and efficiency.

Direct investments have gained traction, but caution is advised. While pre-IPOs and direct investments can bolster a portfolio, investors must be cognizant of the risks involved. AI is transforming wealth management, streamlining day-to-day operations and enhancing client interactions. However, the human touch remains essential, as clients value personalized guidance.

Fixed income, REITs, InvITs, structured products, and alternative investments have become more appealing to HNIs, who are diversifying away from equities amid market volatility. Geopolitical factors have underscored the need for global diversification, with investors balancing investments across various markets and asset classes.