Private-client exec sees investor sophistication keeping pace with growth. Faced with sharp growth on the back of an expanding population of affluent investors, JM Morgan Stanley's Private Wealth Group head Vipul Shah says Indian private-wealth practices are evolving rapidly.

"One notices a clear change in clients' approach, needs and desire on how he wants his wealth advisor to manage his wealth," Shah tells India's Fiancial Express newspaper. "First and foremost the client is now more open to long-term planning and goal setting" beyond a 10-year horizon.

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Shah cites the fast-growing Indian economy as the main factor behind the huge potential for the Indian wealth-management industry. "The recent Capgemini-Merrill Lynch World Wealth Report mentioned there are 84,000 [high-net-worth individuals] in India with an investable surplus in excess of $ 1 million," he says. "India has been amongst the top three countries enjoying the fastest growth of new [high-net-worth individuals] in past two years."

On the downside, however, Indian investors still can't hedge country and currency risk because foreign investment is restricted, says Shah - and the regulatory paper storm that goes with investing has to be tempered if private investing really is to take off in the Subcontinent.

Mumbai-based JM Morgan Stanley is a joint venture between JM Financial and Morgan Stanley encompassing investment banking, asset management, research, investment consulting and investment-product distribution. -FWR

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