Who Is a Wealth Manager? Key Functions and Benefits

Jaro Education
11, September 2025
2:00 pm

When a person hits a certain point of financial success, handling money can get pretty complicated. At this juncture, the need for a wealth manager becomes evident. But why not a wealth advisor? Although both professionals provide financial services, they serve different purposes. Wealth managers look after more complex and high-end matters, whereas the advisors deal with basic stuff. Therefore, wealth managers typically earn a significantly higher salary than financial advisors.

Here is an easy-to-understand guide, which will discuss the work of these professionals explicitly along with their skills and how lucrative the career is by way of financial benefits.

*freepik.com

Who is a Wealth Manager?

Financial experts who help high-income groups of people with large assets to manage their finances are known as wealth managers. They not only give fruitful monetary advice based on each person’s background and situation, but also help them with taxes, retirement planning, guidance on passing on wealth to kids or family, etc. Additionally, these professionals work with people who are just starting to build wealth.

They first study the individual’s finances minutely and then craft self-ideated plans following the client’s goals. Wealthy people often desire to build or buy houses, have expensive education plans, etc. Those who are aged look for plans after retirement for comfortable living. The wealth-managing professionals perfectly suit these requirements, as they offer more services than a wealth advisor.

Estate planning and managing business finances are examples of additional services offered by these professionals. To gain relevant knowledge and expertise, they go through extra training and certifications, like Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), etc.

Basically, these managers are reliable financial guides. They help their clients do well and keep their important assets safe while thinking about their future goals. This helps the clients (or high-income group people) to make smart decisions based on their financial capacity, their personal lives, and their goals.

Primary Roles of a Wealth Manager

Here are some key functions of a wealth manager.

Financial Planning:

A wealth manager’s skill is tested in this area. How do they do this? Here is an explanation.

Setting Goals: First, they ponder on what the clients’ goal is. Whether they want to buy an apartment, send their kids to foreign countries for education, or want a comfortable life after retirement.
Checking the Cash Flow: After knowing the clients’ goals, the managers study the income of these people. Alongside, they also scrutinize their clients’ spending habits and how much they have in their savings. Based on this info, they prepare a financial plan that helps their clients not only to handle their money wisely but also to prepare for their goals.
Planning the Budget: Then, these professionals help their clients with a reasonable budget and advise them on keeping track of their spending, regular saving, and considering investment choices.

By following this process, these managers make the clients financially secure and successful in the long run.

Investment Management:

Wealth managers advise clients to make smart investment decisions and grow their money accordingly. How? Let us find out.

Constructing Portfolios: They advise their clients to manage risk by buying assets like stocks, bonds, real estate, mutual funds and spending on other investments. This also helps to multiply the amount.
Continuous Monitoring: By regularly reviewing the performance of investments, they know when to make changes, based on market trends or any new instruction from the client’s end.

Manage Risks: Wealth managers can save their clients’ finance risks by identifying imminent risks. They do this by diversifying the investments in various sectors and assets.

By doing this, they assure their clients’ money is safe and is growing with time.

Tax Planning:

A crucial part of wealth management is minimizing taxes. A wealth manager guides their clients on how to structure the finances legally so that their tax burden gets reduced. Here is detailed information.

Tax-Efficient Investments: Certain investments can save or lower taxes. These professionals educate their clients about tax-efficient investment options, such as purchasing National Savings Certificates (NSCs) or investing in tax-free bonds.
Income and Withdrawal Plans: Withdrawing money at a specific time can potentially reduce taxes. These managers plan the timing of money withdrawals primarily for their clients, such as retirees or business owners, to help them remain in a lower tax bracket.
Working with Tax Professionals: Wealth managers often work closely with accountants or tax advisors to confirm that all their strategies are synchronized.

Wealth managers, through this tax planning, contribute significantly to their clients’ annual savings and wealth growth.

Estate and Legacy Planning:

Wealth managers are like messiahs for elderly clients who wish to plan the distribution of their assets after death. Let us explore.

Wills and trusts: These legal tools assist older individuals in organising their estate plans. These legal documents have the power to control how one’s wealth can be distributed. Wealth managers help in reducing the estate taxes and avoiding legal complications.

Wealth transfer: They also assist the aged people to plan how their assets will be transferred smoothly and tax-efficiently to their children, grandchildren, or other beneficiaries.

Charitable giving: They can also set up charitable trusts and funds for clients who are interested in making contributions for society’s welfare.

Naturally, such planning gives peace to the old people and secures their finances for future generations.

Insurance and Risk Management

Financial risk is the primary concern for all. Wealth managers can predict how your financial stability may get affected and how you can save through insurance.

Risk Assessment: Wealth managers evaluate whether clients face the risk of significant ongoing expenses due to illness, disability, or death.
Insurance Planning: On the basis of clients’ needs, they may advise getting life insurance, health insurance, long-term care insurance, or liability coverage.
Asset Protection: Also, after studying the risks, the managers will suggest legal strategies to protect the clients’ wealth from lawsuits or creditors.

Unexpected hidden dangers can come up anytime. This provides a sense of security and tranquillity.

Retirement Planning

Almost every retiring person or even middle-aged working professional wants to build a solid finance plan for their retired life. Wealth managers are their best option. How?

Setting Savings Goals: First, they study the lifestyle of their clients. And based on that, they suggest savings plans.
Choosing the Right Accounts: There are certain savings schemes for senior citizens in India, like PPF (public provident fund), NPS (national pension system), SCSS (senior citizens savings scheme), etc. The managers recommend which scheme will be suitable for a particular client after studying their bank balance and lifestyle.

Creating Income Strategies: They also suggest a plan on how to draw money in a calculative and efficient way from investments during retirement.

Such planning is indispensable, as it ensures people do not outlive their savings and remain financially secure during their retirement life.

Crucial Wealth Manager Skills

These professionals must have both hard and soft skills.

Technical:

Investment Knowledge: They must have the fundamental knowledge of both traditional and alternative investments, like private equity, real estate, etc.

Financial Analysis: These managers must know how to examine complex financial situations and plan accordingly

Regulatory Knowledge: They must be aware of financial regulations and other crucial aspects that govern their profession.

Tax Planning: They must also understand tax laws and strategies that work best for the finances of their clients
.

Communication:

Emotional Intelligence: Wealthy people mentally suffer for many reasons. Those may be related to their families, generational tensions, and anxiety about financial security. As skilled persons, the managers must deal with these aspects with softness and professionalism.

Building Relationships: Above everything, these professionals must be able to build and maintain strong, trustworthy relationships with their clients. Only then will their clients feel comfortable discussing the private financial issues with them.

Communication: Clients may not understand financial jargon. So, the managers must be able to explain complex financial matters to these people in an understandable way.
Problem-Solving Abilities: Every client has unique problems. So, the managers must have the ability to think and face each of these challenges.

Business Development:

Networking: A large part of wealth management work comes through networking. So, the managers must have the ability to cultivate relationships with people.

Consultative Selling: The job of a wealth manager is not to sell products. Rather, they must be able to place themselves as suitable advisors for their clients.

To become a successful wealth manager, you must have the relevant knowledge and skills. You can also upskill while working. Online platforms like Jaro Education work in collaboration with renowned institutes. You will get top-tier educators and study materials. You can also attend classes at your convenience. Upon successful completion of the courses, you will receive prestigious certifications. Online finance MBAs are also available here. It is a golden opportunity for you to become a successful wealth management professional.

Benefits of Working with a Wealth Manager

Getting financial oversight.

Understanding how to manage investments professionally.

Knowing about tax efficiency.

Being able to manage risks.
Saving time.

Wealth Manager Salary in Some Indian Cities

City	Average Yearly Salary of Wealth Managers with Mid-Level Experience (taken from Indeed.com)
Hyderabad, Telangana	INR 10,08,544/- per year
Chennai, Tamil Nadu	INR 8,83,543/- per year
Delhi, Delhi	INR 8,28,131/- per year
Bengaluru, Karnataka	INR 7,62,817/- per year
Mumbai, Maharashtra	INR 7,26,368/- per year
Kolkata, West Bengal	INR 6,14,448/- per year
Gurgaon, Haryana	INR 6,01,762/- per year
New Delhi, Delhi	INR 5,55,198/- per year
Pune, Maharashtra	INR 4,69,511/- per year

*freepik.com

When to Hire a Wealth Manager?

Some factors that indicate the need for a wealth manager are,

High income with multiple income sources
Need for significant tax planning
Need for complicated estate planning
Interest in owning a business
Having goals to transfer wealth to grandchildren
Interest in charitable donations

Choosing the Right Wealth Manager

How will you know if a person is truly a wealth management professional? Some certifications will clear your doubt.

Chartered Wealth Manager (CWM)
Chartered Financial Analyst (CFA)
Certified Financial Planner (CFP)
Certified Investment Management Analyst (CIMA)
Advanced Wealth Management Diploma (IIBF)

Apart from these, certifications offered by NISM (National Institute of Securities Markets) and CRISIL are also recognized.

Conclusion

It is clear by now that a skilled wealth manager can do much more than an investment advisor. They not only become your financial director but also coordinate almost every feature of your wealth management strategy. With their help, you ultimately achieve your most important life goals. Whatever your notion, like building wealth, preserving money for future generations, or utilizing it for the needy through charitable donations—these managers will definitely bring peace to your financial life. Your job is to choose the right one.

This way, you will become more confident. Because now you know that your finances are being managed by someone who has the experience, skills, ethics, and dedication to help you make proper decisions. So, if you are really thinking of hiring a wealth manager, be patient. First evaluate their degrees. Then understand their way of work. Finally, make sure their ideology aligns with your objectives. Once you get the right person, just sit back and enjoy life.