Shriram Group, Sanlam establish wealth venture in India

Shriram Wealth will provide a wide array of services, such as mutual funds, alternative investment funds, and portfolio management. Credit: pixadot.studio/Shutterstock.

Shriram Group has entered the wealth management sector through a partnership with South Africa’s Sanlam Group, targeting India’s affluent and high-net-worth individuals (HNIs).

The 50:50 JV, named Shriram Wealth, aims to achieve Rs500bn ($5.84bn) in assets under advice (AUA) and recruit 500 wealth management professionals over the next five years.

Shriram Wealth will offer a range of services, including mutual funds, alternative investment funds, portfolio management, lending solutions, protection plans, global investment opportunities, and legacy planning.

Operations will begin in the top ten cities, with plans to expand to ten more cities within a year, focusing on both metropolitan and emerging Tier 2 and Tier 3 markets.

The JV will cater to three client categories, including mass affluent clients with assets between Rs1m and Rs20m, high-net-worth individuals with assets from Rs20m to Rs250m and ultra-high-net-worth individuals with assets exceeding Rs250m.

The management has recruited professionals with 15 to 20 years of experience in banking and non-banking sectors, aiming to leverage their client base and diverse product offerings to explore new demographics.

Shriram Wealth managing director and CEO Vikas Satija said: “Currently, only about 15% of financial assets in India are professionally managed, compared to 75% in mature global markets.”

Last month, Sanlam formed a partnership with Shriram Asset Management Company (Shriram AMC), a division of the Shriram Group.

Shriram AMC offers a range of financial services, including commercial vehicles, consumer finance, life and general insurance, stock broking, chit funds, and financial product distribution.

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