Wealth Tiers Explained
Overview
Riafin organizes investors into wealth tiers based on investable assets. Learn what each tier means and how it impacts your advisor options.
What Are Wealth Tiers?
Riafin uses wealth tiers to categorize investors based on their investable assets. This helps us match you with advisors who specialize in working with clients at your financial level and who meet their minimum asset requirements.
The Four Wealth Tiers
Emerging Investors
₹5 Lakhs - ₹25 Lakhs in investable assets
Characteristics:
- Often new to investing or building their first portfolio
- May be young professionals or those recovering from debt
- Focus on education and foundational planning
Advisor Expectations:
- Hourly or flat-fee pricing models
- Educational approach
- Focus on budgeting and basic investment strategies
- Lower minimum asset requirements
Typical Services:
- Budget and cash flow planning
- Debt management strategies
- Basic retirement planning
- Emergency fund setup
- Introduction to investing
Established Investors
₹25 Lakhs - ₹1 Crore in investable assets
Characteristics:
- Have some investing experience
- Multiple financial goals to balance
- Seeking comprehensive planning
Advisor Expectations:
- Mix of fee structures (hourly, AUM, flat fee)
- Holistic financial planning
- Tax-efficient strategies
- Goal-based planning
Typical Services:
- Comprehensive financial planning
- Investment portfolio management
- Tax planning and optimization
- Retirement planning projections
- Insurance needs analysis
- Education funding strategies
Affluent Investors
₹1 Crore - ₹5 Crores in investable assets
Characteristics:
- Sophisticated investment knowledge
- Complex financial situations
- Multiple income streams
- Estate planning needs
Advisor Expectations:
- AUM-based fees most common
- Advanced tax strategies
- Multi-generational planning
- Access to alternative investments
Typical Services:
- Advanced portfolio management
- Tax-loss harvesting
- Charitable giving strategies
- Business succession planning
- Complex estate planning
- Risk management for high-net-worth
High Net Worth Investors
₹5 Crores+ in investable assets
Characteristics:
- Significant wealth requiring specialized management
- Complex tax situations
- Multi-entity structures possible
- Philanthropic interests
Advisor Expectations:
- Dedicated relationship management
- Access to institutional investments
- Family office-style services
- Coordinated professional team
Typical Services:
- Concierge-level service
- Alternative investments (private equity, hedge funds)
- Family governance and education
- Multi-generational wealth transfer
- Philanthropic foundation management
- Coordinated CPA/attorney relationships
Comparison Table
| Feature | Emerging | Established | Affluent | High Net Worth |
|---|---|---|---|---|
| Min. Assets | ₹5L | ₹25L | ₹1Cr | ₹5Cr |
| Typical Fee | Hourly/Flat | Mixed | AUM (0.75-1%) | AUM (0.5-1%) |
| Meeting Freq. | As needed | Quarterly | Monthly | Weekly/As needed |
| Service Model | Planning focus | Hybrid | Management focus | Family office |
| Specialization | Education | Comprehensive | Advanced | Institutional |
How Tiers Affect Your Matching
Advisor Specialization
Advisors on Riafin specify which tiers they serve:
- Tier-Specific: Only work with one tier (e.g., only HNW)
- Multi-Tier: Serve 2-3 adjacent tiers (e.g., Established + Affluent)
- All Tiers: Serve investors across all wealth levels
Minimum Asset Requirements
Most advisors have minimum asset requirements:
- Minimum to Engage: The lowest amount they'll manage
- Sweet Spot: Where their services work best
- Maximum Capacity: Upper limit for new clients
Service Expectations
Your tier affects what you can expect:
Emerging/Established:
- More DIY tools and resources
- Group education sessions
- Technology-focused communication
- Standard business hours support
Affluent/HNW:
- Dedicated advisor or team
- Customized reporting
- Priority support access
- After-hours availability
Moving Between Tiers
Asset Growth
As your wealth grows, you may move to a higher tier:
- Update your profile with new asset values
- Request rematching with higher-tier advisors
- Gradually transition to more sophisticated services
Life Changes
Sometimes assets decrease due to:
- Market downturns
- Major purchases (home, business)
- Family expenses (education, medical)
- Career transitions
What to Do:
- Update your profile to reflect changes
- Review if current advisor still fits
- Consider adjusting service levels if needed
Frequently Asked Questions
Can I work with an advisor outside my tier? Sometimes. Some advisors have flexible minimums or offer scaled services. Discuss your situation directly with the advisor.
Do I have to share my exact asset amount? You provide a range during matching. Exact amounts are shared only with advisors you choose to contact.
What if I'm between tiers? Use your best estimate. Our algorithm considers ranges and can match you with advisors who serve both adjacent tiers.
Will my tier change if markets drop? Tiers are based on your self-reported assets. Update your profile if you experience significant changes, but normal market fluctuations don't typically require updates.
Special Considerations
Rapid Wealth Changes
If you experience sudden wealth (inheritance, business sale, IPO):
- Update immediately - Your needs have changed
- Seek specialized advisors - Consider HNW specialists
- Take your time - Don't rush major decisions
- Consider fee-only - Avoid conflicts of interest during transitions
Business Owners
Your tier calculation can be complex:
- Include business equity? (Usually not in investable assets)
- Consider liquidation potential
- Think about future liquidity events
- Coordinate with business succession planning
Retirement Transitions
Moving from accumulation to distribution:
- May shift between tiers as you use assets
- Different advisor skills needed (retirement income planning)
- Consider guaranteed income products
- Review withdrawal strategies