Over the last years, India has undergone a phenomenal economic transformation leading to an exceptionally vibrant new generation of High-Net-Worth individuals and families. So more money also means increasing complexity in using it. This is where multi family offices in India come in, providing a holistic wealth management solution extending beyond regular financial advisory solutions. Read on to know what they do and why this breed is becoming essential to the rich in this country.
Multi-Family Office — What does it
mean?
A multi family office in India is a type of wealth manager
that assists numerous high-net-worth families. Unlike a single-family office,
which is aimed at meeting the financial needs of only one family, an MFO offers
personalized and holistic financial services to many clients. They handle
everything from investment portfolios and real estate to philanthropy and
succession planning.
Why Multi-Family Offices Are Gaining
Prominence in India
The concept of family office services
in India has not been new, in fact it has emerged as a market leader in
India over the last decade. The reasons? Rapid wealth creation, complex
regulatory landscapes, and the need for holistic financial management. MFOs
offer a suite of services, including investment management, estate planning,
risk management, and tax optimization. A holistic approach is taken to wealth,
reaching beyond mere asset allocation, bringing together various elements of
financial planning under one roof.
They also offer customized services. A multi-family office in
India, always presents the best bespoke solutions. Given that every family
has its specific financial goals, they generate strategies that fit with the
values, risk appetite, and long-term goals of a family. From financial advisors
and tax consultants to legal experts and even lifestyle managers, the
multi-family office model allows families to gain access to remarkable insights
into a host of issues that might otherwise be too pricey or challenging to
obtain on a one-to-one level. Additionally, as an affair in managing wealth, it
does come with expenses, especially if families hire multiple advisors for
different services. MFOs eliminate those costs and provide a bundled service
model, which automatically becomes a more economical approach to take on for
families managing significantly large sums of assets.
What Services Do Multi-Family Offices
Offer in India?
The MFOs cover a wide spectrum of family office services in
India. MFOs curate diversified portfolios undertaken to fulfill every family's
financial goals, risk tolerance, and market conditions. The asset classes are
equities, fixed income, real estate, private equity, and alternative
investments through which they can build more robust portfolios. They also
assist the family in creating and implementing succession planning so that the
wealth is smoothly passed onto the next generation. In this regard, forming
trusts, wills, and other legal structures that safeguard the family's assets
would come under this category.
India has several complex tax jurisdictions. MFOs guide their
clients through optimizing taxes and compliance with regulatory requirements so
that the family can fully deploy its wealth in an entirely compliant manner
with all applicable laws. If you are a family that wants to contribute back to
social causes, MFOs will moreover ensure to provide you with philanthropic
advisory. They help you in setting up philanthropic foundations, structuring
donations, and identifying impactful causes.
The Future of Family Office Services
in India
As the Indian economy grows, the demand for comprehensive
wealth management services will continue to rise. Multi-family offices in India
would be at the forefront of providing services to evolving requirements of
India's affluent families, through a blend of financial, legal, and lifestyle
services that redefine management of wealth on one-stop platforms for overall
family prosperity.
