Pragma Investments Management is based in Dubai and specialises in financial engineering, real estate investment, microfinancing, and wealth management.
It’s not uncommon to see the terms ‘wealth management’ and ‘private banking’ being used interchangeably.
There are, however, important differences to note between them. If you’re looking for the right kind of assistance for your financial management then it’s worth reading this simple explanation between the two.
Pragma Investments on wealth management
Typically, wealth management is about investment management and financial services tailored for the client.
Wealth management services are usually split into two broad categories: financial planning and investment management.
From real estate investment to private equity, investment management is a service clients choose if they don’t want to manage their own portfolio.
Fees charged by the investment management company are generally based on a percentage of the total assets of the client in question.
From there, a wealth manager or wealth manage team takes over decisions on how to invest the client’s capital.
Wealth management companies will focus on the client’s overall financial status and profile before making investment decisions.
What makes a good wealth management firm?
A good wealth manager will also work with integrity and make an effort to understand the individual’s approach, views and overall aim as well as their resources.
The best firms come with a strong ethos and a high standard of ethics. While some may view these as impossible in a financial services company, Pragma Investments prove otherwise.
Through judicious partnerships, unique financial engineering and a broad understanding of the national and international markets, it’s absolutely possible to offer high level portfolio and investment management with integrity and an ethical stance.
Clients vary in terms of risk awareness. Some are more risk averse than others, and these will give wealth managers permission to use their knowledge to boost their interest.
Other clients who are generally more risk-averse – and this is not uncommon particularly in the current economic climate which is rife with insecurity and instability – will want their capital invested in stable investments.
The kinds of upward investments favoured for risk-averse clients include bonds or ETFs (exchange-traded funds).
Other clients are generally more comfortable with higher risk. This is generally down to taking a truly long-term view of the best investments for their assets.
These kinds of clients will be more open to wealth managers investing in options and individual stocks.
Why don’t clients just invest for themselves?
This is absolutely true, everyone has the ability to invest their assets themselves.
However, investing with a wealth manager gives the client access to experienced investment employees.
This opens up a whole world of products, services and working strategies that will grow a portfolio in a way that’s unlikely should they go it alone.
Having access to the kind of advanced investment strategies, opportunities and portfolio models will ensure that a partnership with companies that offer high level wealth management will pay off for the client.
This is the other major arm of wealth management.
Financial planning should be even more focused on the client and tailored for their specific needs.
Private banking services
The biggest similarity between wealth management and private banking services is that they both cater towards specific needs of the client.
However, the services cater to the client’s needs in different ways.
Private banking, for example, will not generally include clients receiving detailed investment advice or the creation of long-term financial plans on their behalf.
So, while private banking clients have full access to experienced employees and various services, they do not work closely with a financial advisor.
Wealth management services will usually be undertaken by a totally different arm of a bank, or by a specialist firm such as Pragma Investments.
Is Private banking available to anyone?
There is a minimum wealth level necessary for people to use private banking services.
These do vary from institution to institution and often from country to country.
Private banking is usually on offer to people who have a net worth of at least seven figures.
A number of major firms have higher minimum levels, however it is often the case that family members can use the services even if they don’t hit the minimum.
Benefits of private banking
Anyone using this type of banking will have access to a number of benefits aimed to increase convenience, minimise time spent waiting for assistance and being offered products with favourable interest rates.
However, in general private banking is very much an expansion of normal banking available to any member of the public.
The main benefit is the addition of rights to expanded financial and banking products. For example, clients have expanded rights to apply for a larger network of services.
Is wealth management only for HNWIs?
While there is certainly a perception that wealth management is reserved for high net worth individuals (HNWI) only, this isn’t the case across the board.
Anyone who needs assistance in planning for the financial future of their capital can shop around and find a smaller wealth management company that will take on smaller accounts.
Individuals seeking investment portfolio assistance have more choice
Some companies do have minimum investment levels, but many are more flexible.
People looking for wealth management, real estate investment portfolio management or for assistance with specific projects should include the values of the company in their search.
Pragma Investments works hard to maintain a high level of integrity, respect and this approach allows us to create the kinds of partnerships that deliver profit without sacrificing ethics.
Hitting the right balance between working with a company that has the knowledge, the network of comprehensive investment strategies and high levels of integrity should be the priority for people looking for a wealth manager to assist their plans to grow the value of their assets.
Who should use private banking?
Theoretically, just about anyone can utilise private banking for their business or private wealth.
It gives you access to higher levels of support and a simpler route to better financial products.
Usually, wealthy individuals will automatically be granted private banking by their bank if they have enough assets there.
And those that aren’t accessing private banking resources can look around for other institutions that may accept them.
The last word
Complex portfolios benefit from engaging with a wealth manager to ensure that the right kind of work goes into managing assets and investment decisions.
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