There is no formal definition for ‘Family Office’. Some families tend to operate family offices to generate wealth by making private investments. Such offices tend to act more like internal fund managers and asset allocators to manage the family’s private equity funds and hedge funds. Other families might prefer establishing such offices to protect their assets and family members.
How Does It Work?
Family offices generally take a welfare-centric approach. They create/manage trusts, draft/implement family constitutions, register for insurance, organize family meetings, support family councils, settle disputes, and manage immigration. Family Office services in India provides a variety of customized personal and financial services to UHNI (Ultra-High Networth Individuals) and HNI (High Networth Individuals) clients. They offer concierge, legal, and asset management services.
Benefits Derived
- Custom wealth management approach: Commission-based model is not the right choice for family offices. Rather, they meet the client’s specific interests and offer custom wealth management solutions. Be it making investments in an F&B company or a holiday resort, Family offices offer investment plans that are parameter-based and not on ROI. The reason is because the approach taken is that of the client’s utility perspective.
- Visionary wealth creators: When wealth creation is concerned, they take a long-term approach. They also invest in diverse businesses or assets in different time frames. Their objective is to help their clients to develop long-lasting wealth that future generations can enjoy. Such offices mentor the younger generation besides rendering financial services. During business administration, succession planning, and wealth transfer, they act as communicators and facilitators.
- Wealth management especially during crisis periods: Although Covid-19 is almost a past story, there can be more such events due to rapid global warming scenarios. Hence, it becomes necessary to stay prepared for such future eventualities financially. Family Office Services have employed financial professionals, investment advisors, and tax experts who are specialists in their respective domains. They can guide their client to overcome uncertain economic downturns.
- Trust: They develop strong bonds between UHNI and HNI family members. This, in turn, helps create trust between the family members and the office. It also helps understand the family’s financial goals and vision, thus helping to accomplish the desired objectives effectively. Family offices can align better wealth generation strategies based on the client’s mission and vision.
- Time saver and efficient supervision: Smooth functioning helps the family office to save precious time. This is achieved by delegating investment management as well as by streamlining supervision. Family office maintenance can be similar to that of any other business operation provided there is in place efficient investment governance. Using dashboards, reporting tools, performance metrics, and investment analysis, families can design and implement a workable supervision structure/processes.
- Better returns: Experienced family offices with proven qualities can help clients to derive higher risk-adjusted returns. They can allocate capital quite efficiently and in a custom manner. They also help select investments meticulously without actually relying upon 3rd party financial service providers.
Hire The Best Family Office To Derive The Benefits
The top family office when hired can do a lot of good for their HNI and UHNI clients. They guide families to be financially secure, protect their wealth, and generate more in the process.
For more information about Family Office services in India, you can visit its authentic website: https://dpncglobal.com/private-capital-family-office-services/
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