Wealth management services have been growing rapidly across the region as governments spread the wealth generated from the oil boom into their economies. Ishrat Kiyani, regional head of wealth management at HSBC Middle East, shares his views on the advantage of using wealth management services.
Gulf News: Wealth management is a relatively new concept in the region. Why is there growing interest now?
Kiyani: Across the region, the affluent customer segment is increasingly sophisticated and educated. They do not want to put all their investments into one asset class. Customers are looking to diversify their portfolios given the recent credit crunch. With wealth management investors can achieve this.
What should investors look for when choosing a wealth management service?
Working with a professional financial planner is the best way to ensure that you are getting your money to work. You must look for a financial planner who is not only responsible for mapping investment products to your specific profile, but also builds on the relationship and engages you on a regular basis.
How can customers be sure that an investment being sold to them by their financial planners is the right one?
Investors must look to have a diversified portfolio that will include a range of investment solutions like capital protected investments, bonds, mutual funds, structured notes and alternative investments.
Being more informed about the investments made and maintaining this diversity in a portfolio, will then prepare you as an investor to ride thought difficult market conditions.
Is there any way to guarantee return on your investment?
Investors should keep in mind that the quicker the timeframe of getting rich, the higher the risk and the associated probability of major financial distress. They must understand market volatility and keep a medium to long-term view (three to five years).
Wealth management services offer wide ranges of products which are classified according to risk tolerance. Investors should not risk by investing all their money.
What are high net worth clientele looking for - is there a trend in the region?
From a product perspective, there is increasing demand from the region's affluent for global exposure across a wider range of asset classes to be delivered locally. There is increasing demand for local exposure, especially in Sharia-compliant funds.
