Responses by Prashant Mishra, Founder & CEO, Agnam Advisors
India’s wealth management landscape is evolving rapidly, shaped by macroeconomic shifts, geopolitical dynamics, regulatory reforms, and changing investor behavior. As financial markets grow more complex, investors are seeking diversified strategies, global exposure, and innovative asset classes to maximize returns and mitigate risks. In this conversation, industry experts shed light on the biggest trends transforming wealth management and how investors can navigate market volatility effectively.
- What are the biggest investment trends shaping wealth management in India today?
The wealth management ecosystem in India is in a state of evolution as macroeconomic trends, geopolitical developments, regulatory changes, and investor preferences shape new outcomes. The key trends transforming this world include the emergence of gold as a strategic asset, the rise of factor-based investing, more global diversification via GIFT City, and the larger movement towards passive and alternative strategies.
In the context of de-dollarization trends and increased geopolitical tensions globally, gold has also reclaimed its status as a strategic asset class. The RBI has been one among many central banks that has been adding gold to its reserves, reflecting confidence in gold as a store of value with currency collapse and uncertain economies. With global trade shifting to more non-dollar transactions, investors are seeing gold as an antidote to depreciation in currencies, as well as to inflation. Moreover, paying through gold-backed financial instruments such as Sovereign Gold Bonds (SGBs) and Gold ETFs is on the rise as it provides Indian investors an avenue to get exposure to gold without dealing with the physical hassles of ownership.
Another trend is factor investing, which is gaining acceptance as institutional investors have shifted away from passive approaches based merely on market-cap weighting. A systematic integration of the quantitative factors like value, quality, momentum, and low volatility in investment portfolios is done to find an optimal way to generate returns while managing risks. From passive investing to factor-based strategies, smart beta funds are presenting investors a low-cost path to diversification and improved risk-adjusted returns. As investors become more aware and have access to advanced data analytics, these approaches to equity investing have been adopted in India as well.
Indian investors have two options for global investment at GIFT City (Gujarat International Finance Tech-City). GIFT City acts as a bridge for Indians to invest in global markets in a cost and operationally efficient way, thanks to relaxed regulatory regimes, tax benefits, and freedom to move capital. The launch of international mutual funds and debt instruments through this platform has enabled high-net-worth individuals (HNIs) and institutional investors to diversify beyond the domestic market. This trend is in keeping with a broader market of increasing global diversification of investment, as investors hunt for exposure in developed market equities, ETFs, and alternatives such as private equity and VC.
Apart from these trends, the industry is witnessing a surge in interest in alternative investment vehicles like Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and private debt funds. Investors are seeking to supplement portfolio returns and mitigate risk with alternative asset classes—beyond traditional equity and fixed-income products. Structured investment solutions such as hybrid funds and asset-backed securities are also gaining traction as sophisticated investors look for yield in a low-rate world.
In essence, Indian wealth management is heading towards greater diversification, technology adoption, and global integration. Gold taking on an increasingly important role as a hedge, the increasing adoption of factor-based investing, the opening up of wider global opportunities through GIFT City, and alternative investments are fundamentally changing the investment landscape for Indian investors seeking wealth creation. With these trends unfolding, a financial advisor will be vital in guiding an investor through the complexities of this changing landscape, optimizing their portfolios for power returns over the long term.
- With rising market volatility, how can investors build a resilient long-term portfolio?
Market volatility is a fact of investment life, and to handle this successfully, you need a comprehensive strategy that effectively deals with risk, return, and liquidity. A sound portfolio in the long run is constructed based on asset classes, diversification across asset classes, and disciplined behavior of investments.
The most powerful tool here to help manage volatility is asset allocation—the intentional diversification of equities, fixed income, commodities, and alternative assets. By having a diversified portfolio, no single asset class outweighs the others and therefore helps to smooth out the effect of volatile markets. For example, during phases of equity decline, allocation towards gold and debt instruments will serve as stabilizers and help reduce losses.
Stock selection based on quality goes a long way in weathering turbulence in the market. Investors should seek fundamentally strong companies with good earnings, low debt, and sustainable business models. As we discussed in previous articles, historically, high-quality businesses tend to be resilient in a downturn and outperform over time. Adopting factor-based investing also leads toward higher risk-adjusted returns, as portfolios are built around factors such as low volatility, value, and quality.
You may already have additional risk hedging strategies in place that expose you to gold and global markets, which can help bolster portfolio resilience. As a non-correlated asset, gold provides a hedge against market stress and inflation. Also, investing in international equities through GIFT City platforms or direct global ETFs allows you to dilute your country-specific risks and maximize your return opportunities.
SIP and periodic rebalancing are two important pillars of long-term wealth creation. SIPs promote disciplined investing and help in averaging the cost in case of volatility. Rebalancing, in contrast, adjusts the portfolio to current market conditions by scaling back overweight assets and adding to underperforming but high-potential segments.
Finally, the nature of long-term investing is rooted in behavioral discipline. Such emotional reactions to momentary market developments rarely result in a benefit. Having a plan centered on specific goals, with the right financial guidance, puts you on the path towards your financial goals while also maintaining wealth-building momentum.
- Agnam Advisors follows a fee-only advisory model—how does this benefit investors compared to traditional commission-based models?
The fee-only advisory model is a revolutionary approach in the Indian financial services arena, aimed at removing potential conflicts of interest and delivering unbiased, impartial financial advice to customers. Fee-only advisors charge a flat fee, not a percentage of managed assets; unlike commission-based models, where advisors are incentivized to sell certain products, the fee-only model guarantees that an investor’s interests remain the priority. Being a SEBI-Registered Investment Advisor (RIA), Agnam Advisors complies with stringent regulatory guidelines, which ensure transparency, investor protection, and ethical financial planning.
This approach offers one of the biggest advantages: conflict-free advice. RIAs are subjected to fiduciary duty under SEBI, which means that by law, RIAs must work in the best interest of the clients. Whereas a distributor or a commission-based advisor receives an incentive from a mutual fund, an insurance company, or the manufacturers of the financial product, Agnam Advisors stands alone, as its revenue is a transparent advisory fee paid by clients. This means that our investment recommendations are based solely upon suitability, not undisclosed commissions or other incentives.
Summing up, yet another prominent advantage of this model is cost-efficiency. Rather, in a commission-based system, investors typically pay higher expenses in hidden fees embedded in financial products, often without realizing it. These buried costs eat into total returns over time. A win-win scenario, given that there are no hidden charges, restrictions, or commissions, and because the commission-only approach neglects to account for such hurdles, investors in the latter model pay up via mutual funds, ETFs, passive index funds, or even structured investment strategies, all while aligning their investment strategy with their financial goals.
- How is technology transforming financial advisory services, and what role does digital innovation play in personalized wealth management?
Technology is revolutionizing wealth management by enhancing accessibility, efficiency, and personalization in financial advisory services. The integration of artificial intelligence (AI), big data analytics, and automation is reshaping how investment decisions are made and how clients interact with financial advisors. AI-driven portfolio management has enabled more data-driven and personalized investment strategies. Machine learning algorithms analyze vast amounts of financial data to identify patterns, assess risks, and optimize asset allocation dynamically. This ensures that portfolios remain aligned with market conditions and investor preferences, enhancing long-term returns.
Robo-advisory platforms have also democratized financial planning by providing low-cost, automated investment solutions. These platforms cater to retail investors who seek professional advice but may not have access to traditional wealth management services. By leveraging digital tools, robo-advisors offer personalized asset allocation based on individual risk tolerance, financial goals, and time horizons.
Behavioral finance tools are another key innovation in wealth management. These tools analyze investor psychology, identifying biases that impact financial decisions. By understanding individual behavior, advisors can design customized strategies that help clients stay disciplined and avoid emotional investment mistakes.
Seamless digital onboarding and execution have further enhanced client experience. From online KYC verification to real-time portfolio tracking, digital platforms have streamlined investment processes, making wealth management more efficient and convenient.
As technology continues to advance, the future of wealth management will be defined by hyper-personalization, automation, and data-driven insights. Financial advisors who embrace these innovations will be well-positioned to deliver superior investment outcomes and a seamless client experience.
