How is Wealth Management industry doing in 2024?
The wealth management industry exhibits significant growth potential, surpassing the overall savings pool trajectory. Key drivers include the rising number of high-income tax filers and the expansion of high-ticket financial assets like AIF, PMS, and unlisted equity. Additionally, recent promoter selling activities provide ample opportunities for wealth managers to capitalize on.
However, challenges persist, such as cyclical business patterns and the predominance of transactional revenue sources. Moreover, the industry faces constraints like yield compression pressure and a reliance on people-intensive processes, particularly in the UHNI category. Despite these obstacles, the sector's vast potential outweighs challenges, prompting a favorable stance from us.
Best Wealth Management Stocks in India
The table below showcases the top Wealth Management stocks in India right now based on multiple factors.
| Company Name | Market Cap (in Cr) | Current Price | PE Ratio |
|---|---|---|---|
| 360 ONE WAM Ltd | ₹ 26,943 | ₹ 751 | 37.6 |
| Nuvama Wealth Management Ltd | ₹ 18,365 | ₹ 5,199 | 34.7 |
| Anand Rathi Wealth Ltd | ₹ 17,097 | ₹ 4,087 | 76.0 |
An Overview on Wealth Management Sector Stocks
In the domain of Wealth Management shares in India, numerous key players have emerged that provide diverse options for investment. Here is a list of the top Wealth Management stocks in 2024
360 ONE WAM Ltd
IIFL Wealth Management Limited, founded in 2008, is one of the largest private wealth management firms in India. The company mainly acts as wealth manager and provides services relating to financial products distribution, advisory, portfolio management services by mobilizing funds and assets of various classes of investors including High Networth Individuals.
Nuvama Wealth Management Ltd
Nuvama Group (formerly Edelweiss Wealth Management) is backed 25+ years experience in the Indian market and strengthened by strong institutional ownership with PAG as the promoter of company, a leading investment firm that has been advancing the world of private equity, real assets and credit & markets, in the APAC region.
Anand Rathi Wealth Ltd
Anand Rathi Wealth Ltd was incorporated on March 22, 1995. It is an AMFI registered mutual fund distributor and is one of the leading non-bank wealth solutions firms in India, being ranked amongst the top three non-bank mutual fund distributors in the country. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.
To Sum Up
There is a potential opportunities in the Wealth Management sector, due to rapid growth expected in UHNI/HNI space but business is cyclical - no secular trend in net flows and MTM impact on the sector.
Note: The data is as of 30th March 2024. The list of best Wealth Management stocks in India is derived from Market Cap, past perfromace, valuations and current order book. This is not a Financial Advice, please contact your financial advisor before investing or taking any trade. Team FinSort might have investments in any / all the stocks mentioned above.