Nuvama Wealth Management (formerly Edelweiss Securities) expects its total assets under management (AUM) of its personal wealth business segment to grow at compounded annual growth rate of 25 per cent in the next four years, taking the overall level of assets to about ₹1-lakh crore from ₹60,000 crore now, said a top official.

“Iam confident of achieving 25 per cent CAGR for next 3-4 years. This optimism is coming on 2-3 counts. First is that Indian economy is growing (affluent and HNIs are growing); financialisation of assets are happening big time, the client segment we are after are largely now with banks and so we have an opportunity there to sell our solutions,” Rahul Jain, President and Head, Personal Wealth, Nuvama Wealth Management told businessline. 

Jain also said that Nuvama will look to expand its branch footprint for its personal wealth management business to 100 by FY24 from 69 branches in 65 locations now.

“We are investing heavily in setting up branches and hiring people.bWe are strong believer that real way to deliver solutions is hybrid and not just pure technology. We need branches where people can go meet clients, explain the rationale and how asset allocation. In this year, we have already set up 12 new branches,” he said.

Jain also said that Nuvama will look to add 300-400 new wealth managers every year. As on date, it has about 900 wealth managers.

 Outlook on Nifty for FY24

Jain said that since the start of FY23, there has been a 5% earning downgrade from ₹ 1030 per share EPS to ₹ 960 for FY24E.

“Earnings CAGR for 2 years was 15%-16%, which has reduced to just 10%-12%. Hence, investors should lower their expectations … we don’t see more than a 10% upside from hereon in the market”, Jain added.

Listing plans

Jain said that both PAG and Nuvama Wealth Management are currently working together towards a demerger and the eventual listing of the business. “We expect the regulatory and other approvals to get completed in the target time frame and then move towards listing. As we are demerging from a listed company, we will get listed automatically,” he said.

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