The humble accountant is passé, family office is the new rage — a status symbol in ‘Richistan’. The rise of ultra high net worth families in India has given impetus to the growth of family offices. Entrepreneur examines this modish trend: why super riches need it in this age and time.
As the country continues to grow, the list of India’s super rich is also swelling — we are going to add more Ambanis, Tatas and Birlas or rather Agarwals (considering the number of Agarwals in the Indian entrepreneurial ecosystem) to the list. According to a recently-released Credit Suisse report, India ranks sixth in Ultra High Net Worth Population and the total number of dollar millionaire in India is expected to go past 5.26 lakh by 2023. In fact, in the past year, the Hurun Global Rich List added 31 new Indian billionaires to its list. Due to rapid growth of family businesses in the country and the rise of new-age entrepreneurs, professionals and CXOs, in all probability, the number is bound to increase. This, in turn, has popularized the concept of family offices (FOs). Two decades ago, India barely had some 10-20 family offices to preserve their wealth, but today the number has gone well over 200. Having said that, the concept of family offices is not new to India — remember munshijis or traditional accountants?
Himanshu Kohli from Client Associates says, “This role (of munshiji) has evolved and has become more sophisticated in this organized world and now same munshi-ies are playing the role of private CFOs (chief financial officers) for large wealthy families. With this revival, the whole industry of wealth management, including family office concept is evolving fast in our society.” Presently, there are two types of FOs – single family offices, wherein the promoter has to dedicate enough time so that their goals are met and the second one is multi-family offices, wherein, as the name suggests, several families pool their assets together, and FO helps them with their goals.
Now that the FOs have finally started to garner fame, are wealth or asset management companies all set to lose the fat wallet clients?
هذه القصة مأخوذة من طبعة Jan 2019 من Entrepreneur magazine.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة Jan 2019 من Entrepreneur magazine.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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