Mr. Amit Jain explains about wealth management: Ashika Wealth Advisors is a Bombay based company with about 300 employees. They have a large set up with approximately 1.25 Lakhs of customers. They help family offices for the investment of worth Rs. 100 Crores. You can earn money through hard work, but if you don’t manage it properly, you will lose your funds. Mr Jain will explain about wealth management. - **What-** What is wealth management? - **Why-** Why to do wealth management? - **How –** How to do wealth management? # **Key points about wealth management** If you are running a medium-sized business, you should follow these points to manage your finance: ### **1. Separate savings and working capital:** - Generally, medium business owners don't draw a wall between their savings and working capital. - This should be understood by all the business owners especially after Covid 19. - A business that is built in 5,10 or 15 years collapses overnight such as Jet airways. - Many industries got vanished over some time and many people got unemployed. - So, you should ensure that your working capital should be separated from your savings. - Personal savings should be meant for the retirement planning and safety of the family. ### **2. Set business goal:** - Before creating wealth, you should set your business goal. - At the age of 20, a person has periodic goals for the age of 30, 40, etc. - But the goal of the person with the age of 40 years might be different because he might be planning retirement. - So, you should make a goal as per your situation and the situation of your family. - The goal is an objective to be completed within a specific time frame and you should be specific about your goal. ### **3. How to achieve the business goal?** - After setting the goal you should know how to reach the goal. - For example, your goal is to save Rs. 10 crores in the next 30 years. - Now there are many options in an investment portfolio such as: - Fixed deposits - Bonds - Equities - Equity mutual funds - Gold ### **4. Know Asset Allocation:** - You should know about your asset allocation and how to use it to achieve your goal. - Also, you should know how much % of the investment will you do in a specific asset and what is the risk involved. - If you are not aware of any asset you should stay away or you can take the help of a certified financial planner or wealth manager. - You should know when to enter or exit from an asset class. - As an informed investor, you should be aware of 8-10 types of the product category in mutual funds. - You should understand the sector where your mutual fund's scheme has invested money. - Generally, people who want to invest in mutual funds check the history last 5 years of the sector where mutual funds have invested.