US-based financial planning major enters India

ew Delhi: With rapid increase of high net worth individuals (HNWI), India has emerged as an attractive market for wealth management. The latest entrant is Ameriprise , the largest financial planning company of the US. The 117-year old company has a client base of over 2 million in US.

At present, the company manages assets of over $600 billion through its mutual funds and life insurance companies in US and Europe. However , in India, it will start operation with financial planning for individuals having annual income of over Rs 20 lakh.

Most of the large companies that are operating in the financial planning space are either banks, life insurance companies or mutual funds. Ameriprise will be the first multi-billion dollar company which will operate only in financial planning space in the country. "This shows our commitment and seriousness to financial planning space,'' said Kim M. Sharan, president - financial planning and wealth strategies.

"With its trilliondollar economy, India is not only an important market from a business perspective, but also one where our unique approach to planning could truly transform the way consumers manages their finances," said James M Cracchiolo, chairman and CEO of Ameriprise Financial.

Sharan said, "As a financial planner we give complete solution to our clients so that they can meet their requirements when they arise.'' On the issue of slowing down of the economy and poor returns of the investments from the various class of assets, Sharan said when the market is not performing , investors need advises to maximize their returns. When the market is going up, anybody can make money and advisors are not required.

Chairman of Ameriprise India Bimal I Gandhi said to begin with, the company would start its operations from Mumbai and Delhi. Later it will expand its operation in the other parts of the country. Gandhi said before starting its operation, it has customized various models of investments . It would not copy the American model for Indian market, he said.