Financial Planning vs Wealth Management
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Questions and Answers

What is one investment option available for HNIs looking to invest in foreign equities?

  • Investing in cryptocurrencies directly
  • Investing in American Depository Receipts (correct)
  • Investing in government bonds
  • Investing in mutual funds

Which type of investment is Real Estate Investment Trust (REIT) an example of for HNIs?

  • Alternative Investment Fund
  • Structured Product
  • Bullion Investment
  • Real Asset Investment (correct)

Why might HNIs look into investing in structured products?

  • To invest solely in cryptocurrencies
  • To avoid any risk in their investments
  • To invest only in government bonds
  • To diversify their investments into complex financial instruments (correct)

What is the main characteristic of Alternative Investment Funds (AIFs) that distinguishes them from conventional investment instruments?

<p>They require substantial investments and are privately pooled funds (D)</p> Signup and view all the answers

Why might HNIs choose to invest in art and collectibles as part of their investment strategy?

<p>To diversify their investments into alternative assets with high potential returns (A)</p> Signup and view all the answers

What is the main focus of financial planning?

<p>Goal-based investing to meet financial needs (A)</p> Signup and view all the answers

How are High Net Worth Individuals (HNIs) defined in India?

<p>Investors with a net worth exceeding ₹5 crores (D)</p> Signup and view all the answers

What distinguishes wealth management from financial planning?

<p>Wealth management aims to increase the corpus of existing HNI investors (B)</p> Signup and view all the answers

What defines Ultra High Net Worth Individuals according to the text?

<p>Investors with liquid assets ranging from ₹5 - ₹25 crores (D)</p> Signup and view all the answers

What distinguishes Emerging HNIs from Very High Net Worth Individuals?

<p>Liquid assets ranging between ₹25 lakhs - ₹2 crores (D)</p> Signup and view all the answers

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