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Posted in Community :

HNI Banking

 
Started by : Satish Pandey, Sr. Associate, IL&FS Venture Corporation   09 25 2008 10:40:42 +0000
Industry : Investment BankingFunctional Area : Growth(Strategy & Execution)
Activity:  18 views;  last activity : 07 06 2010 20:18:09 +0000

A high-net-worth individual (HNWI) is a person with a high net worth. In the private banking business, these individuals typically are defined as having invest able assets (financial assets not including primary residence) in excess of US$1 million.

Managing money for high net-worth individuals is a complex task that needs access to various resources, asset classes and constant monitoring.

So how high net-worth individuals diversify risk?

 

 
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1 Structured products - pre-packaged investment strategy
2 Private Equity

Structured products - pre-packaged investment strategy

idea posted by Satish Pandey Sr. Associate, IL&FS Venture Corporation

Sometimes existing products may or may not be enough to meet every gap in the portfolio...At such times, the smart manager needs to access sophisticated products that are structured specifically for the individual needs.

These structured products will offer investors geographical diversification, access to emerging markets across the world and also offer asset class diversification. example: a global gold fund. This will enable the investor to reduce volatility and attempt to outperform...

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Private Equity

idea posted by Kausik Panda Sr. Associate, ICICI Securities
The most interesting opportunities that high net-worth individuals can benefit from is the alternate space, this is predominantly in the form of private equity and  promise of larger returns.
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