High Net Worth Individuals and Ultra High Net Worth Individuals have distinct needs when it comes to portfolio management. This article explains how the PMS engagement model differs for these client segments.
Understanding HNI and UHNI
HNI (High Net Worth Individual)
Typically, HNIs are individuals with investable assets of ₹5 crore or more. They have significant wealth that requires professional management.
UHNI (Ultra High Net Worth Individual)
UHNIs typically have investable assets of ₹25 crore or more. They have even more complex wealth management needs requiring sophisticated solutions.
How the Engagement Model Differs
Customized Portfolios
HNI Clients: Portfolios aligned to personal risk appetite, liquidity needs, taxation profile, and long-term goals.
UHNI Clients: Even more customized portfolios with access to alternative investments, private equity, and structured products.
Service Expectations
HNI Clients:
- Regular portfolio reviews
- Access to relationship managers
- Performance benchmarking
- Tax planning support
UHNI Clients:
- Dedicated relationship managers
- Family office integration
- Customized investment strategies
- Access to exclusive investment opportunities
Key Differences in Engagement
| Aspect | HNI Clients | UHNI Clients |
|---|---|---|
| Minimum Investment | ₹50 lakh - ₹5 crore | ₹5 crore + |
| Customization | High | Very High |
| Service Level | Standard HNI Service | Dedicated Relationship |
| Investment Options | PMS, AIF | PMS, AIF, Private Equity |
| Reporting | Standard PMS Reporting | Customized Reporting |
| Tax Planning | Standard | Comprehensive |
Family Office Integration
PMS at the Core
Portfolio Management Services let a professional fund manager handle a client's equity portfolio on a discretionary or non-discretionary basis. One reason PMS and AIF have become central to family office portfolios is that the regulatory and tax treatment around them is now well-defined.
Multi-Family Offices
Client Associates (CA) is India's first and largest "Multi Family Office Firm" founded by Senior Private Bankers to provide a professional platform of Private Wealth Management services in India. PMS forms a core part of their service offering.
Technology-Enabled Experience
For Both HNI and UHNI
Tech-Enabled Experience: Real-time dashboards, portfolio analytics, performance benchmarking, and digital onboarding — all in one platform.
Enhanced for UHNI
UHNIs typically require more sophisticated technology solutions, including:
- Consolidated portfolio views
- Real-time analytics
- Risk reporting
- Performance attribution
Relationship Management
HNI Engagement
- Regular communication
- Quarterly reviews
- Access to portfolio manager
- Standard reporting
UHNI Engagement
- Dedicated relationship manager
- Ad-hoc communication as needed
- Direct access to portfolio manager and senior management
- Customized reporting and analytics
Investment Options
HNI Investment Options
- PMS
- Category I & II AIFs
- Mutual Funds
- Direct Equity
UHNI Investment Options
- PMS
- Category I, II & III AIFs
- Private Equity
- Structured Products
- Global Funds
- Startup Syndicates
Expert Legal Guidance
Anuj Desai & Associates provides expert legal advisory services on PMS structuring for HNI and UHNI clients. Our securities law and tax experts help firms design appropriate engagement models and ensure regulatory compliance. Contact us for guidance on HNI/UHNI PMS and other regulatory matters.