Bangalore’s financial scene is witnessing a shift as High-Net-Worth Individuals (HNWIs) grapple with rising interest rates, a weakening rupee, and global uncertainties. According to financial advisor Sandeep N. Setty, this necessitates a proactive approach to wealth management.
As one of Bangalore’s most revered financial advisors, Sandeep N Setty oversees a staggering 3500 crores in wealth for a prestigious clientele that includes CEOs of major corporations, prominent politicians, successful entrepreneurs, celebrities, and high-net-worth families. His proven track record and unconventional approach have earned him the distinguished title of Bangalore’s Top Financial Advisor by numerous media outlets.
Sandeep N. Setty, known as an intergenerational planner, effortlessly weaves assets restructuring into his wealth management approach. Notably, Sandeep is also the author of four books, with his latest release titled “How the Rich Use Life Insurance as Plan B and Add Economic Stability: How You Can Get and Stay Wealthy by Overcoming Financial Myths.”
In a recent conversation, Sandeep N Setty unveiled some fascinating trends driving Bangalore’s economic landscape. “The current environment demands strategic planning,” says Setty. He identifies three major concerns plaguing Bangalore’s HNWIs: rising interest rates, depreciation of the rupee, and geopolitical unrest. These factors are prompting a change in investment strategies.
One trend is the parking of funds in banks offering special interest rates. This allows HNWIs to safeguard their wealth while earning a return. Additionally, discounted bonds are seen as attractive options for capital preservation.
Furthermore, HNWIs are increasingly participating in put equity deals. These deals provide a safety net against potential market downturns, offering a pre-determined price for investors to sell their shares if the market falls.
Another interesting trend is the rise of keyman insurance, particularly among Venture Capital (VC) funds. This insurance protects business valuations by insuring key personnel and mitigating risks associated with start-up investments. Notably, there’s also a shift in executive compensation strategies for talent management.
With market volatility a concern, short-term capital investments are gaining traction. However, HNWIs remain cautious, focusing on developing exit strategies within a five-year window to transition to safer avenues.
Setty acknowledges the growing trend among the younger demographic towards various investment platforms driven by convenience and accessibility. However, he emphasises that HNIs have distinct financial needs that go beyond automated solutions. “As far as HNI individuals and families are concerned, they need professional one-on-one advisory.”
Having cultivated relationships with a diverse clientele over the years, Setty underscores the importance of understanding clients’ concerns, aspirations, and definitions of wealth and legacy. “My clients talk to me about so many things, and based on their needs, I design a strategy for them,” Setty explains. This personalised approach allows him to tailor financial solutions that align with each client’s unique circumstances and goals.
Setty advocates for the human factor in financial advising in a world increasingly driven by technology and algorithms. He believes that empathising, communicating, and strategising based on individual client needs is paramount. “The human factor is essential in financial advising,” says Setty.
As Setty reflects on his journey as a financial advisor, he remains firm in his commitment to providing personalised, client-centric advisory services. “With nearly two decades of experience in Bangalore’s financial landscape, I firmly believe that this human-centric approach is essential for addressing the diverse needs of High-Net-Worth Individuals (HNIs) and rich families,” Setty concludes.
