Are you ready for the new wealth management landscape? Key insights for 2025news24

As the global landscape of wealth management evolves, so do the expectations of affluent investors. Now, in early 2025, the focus has shifted towards a more nuanced and diversified approach, with high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNIs) seeking a broader array of services to manage and grow their wealth effectively.

Core expectations – tailored advice, product access, and alternatives

According to a recent report, The Wealth Index, by 360 ONE Wealth in association with CRISIL, wealthy investors place high importance on three key services from wealth managers: advisory services (23%), product selection and distribution (21%), and alternative investment opportunities (19%).

This priority reflects the increasing complexity of the investment landscape, where new products and asset classes are emerging rapidly. Investors, aware of the critical role of asset allocation and the intricacies of position sizing, look to wealth managers for strategic guidance and bespoke solutions.

Notably, HNWIs show a particular inclination towards broking services, highlighting a preference for direct trading. This is indicative of their desire for active participation in the market, driven by a hands-on approach and a keen interest in personal wealth management.

Key criteria for selecting a wealth manager

Choosing the right wealth manager is a decision influenced by multiple factors, with a quarter of wealthy investors citing track record as the primary criterion. The importance of a proven history of sound investment decisions underscores the need for trust and confidence in the wealth management firm. However, it is not solely about past performance.

For 17% of respondents, the prestige and reputation of the firm play a significant role, while others prioritise fee structure (13%) and the suite of services provided (11%). 

Moreover, the existing relationship managing family wealth and the firm’s local office presence are also considered vital. This is particularly relevant in a market where personal relationships and accessibility can significantly impact client satisfaction and retention.

Seeking a balance

While the majority of affluent investors prefer professional management of their wealth, there remains a segment that favours a more self-directed approach. According to the data, 53% of respondents rely entirely on professional advice, trusting wealth managers to make appropriate investment decisions on their behalf. In contrast, 12% of investors prefer to manage their wealth independently, taking full responsibility for their investment choices.

Interestingly, a significant portion (24%) adopts a blended approach, making some decisions independently while consulting their wealth manager for others. This hybrid model allows them to leverage their own financial acumen while benefitting from expert insights on more complex matters. Age also plays a role in decision-making preferences; younger investors (under 40) tend to favour managing their wealth personally, while those over 60 rely more heavily on their financial advisors for information and guidance.

Dynamics of engagement

The frequency of engagement between investors and wealth managers varies considerably, with approximately half of the respondents preferring regular, periodic reviews, while the other half tends to engage their wealth managers on an as-needed basis, driven by specific product discussions or transaction queries. Younger clients, in particular, lean towards ad-hoc consultations rather than pre-scheduled meetings, favouring quarterly reviews over monthly check-ins.

For older clients, particularly those aged 60 and above, there is a preference for more frequent engagements, reflecting their need for reassurance and real-time updates on portfolio performance. This trend aligns with the broader desire among the wealthy to stay actively involved in understanding and managing their investments, even when they delegate day-to-day decision-making to their advisors.

Another significant finding from the survey is the preference for quarterly portfolio reviews, with 46% of wealthy investors opting for this frequency. This approach allows them to stay informed and make timely adjustments based on market conditions. A notable 33% go a step further, conducting monthly reviews, underscoring their proactive stance on wealth management.

Opportunities to note

For wealth managers, understanding these evolving preferences presents significant opportunities. The trend towards a hybrid model of engagement, combining personalised advice with elements of discretionary management, is gaining traction, especially among UHNIs. The advisory-assets-under-management (AUM) fee-based approach is currently favoured by 30% of wealthy investors, followed closely by a product selection-based framework at 29%.

This highlights the importance of a transparent fee structure and the ability to offer clients a wide selection of investment products tailored to their specific needs. Additionally, the growing interest in alternative investments provides wealth managers with an opportunity to differentiate their offerings. By providing access to niche asset classes and bespoke investment opportunities, they can meet the demand for diversification and higher returns, especially in a low-interest-rate environment.

The survey findings indicate that while affluent investors are generally confident about achieving their long-term financial goals, there are lingering concerns about the impact of external factors on short-term objectives. Given this backdrop, the role of a wealth manager as a strategic partner becomes even more critical. 

By providing a holistic approach to financial planning, grounded in expertise and tailored advice, wealth managers can help clients navigate uncertainties and capitalise on emerging opportunities.

Anupama Sharma, Executive Director, 360 ONE Wealth