India’s booming economy and rising number of high-net-worth individuals (HNIs) are set to drive more than 20% annual growth for wealth management firms over the next three years, global brokerage Jefferies has projected in a new report.Jefferies said the core wealth management (WM) segment in India is likely to see strong momentum, backed by expanding client bases, stronger relationship manager (RM) networks, and improved productivity, ANI reported.“Leading WMs can grow +20 per cent in core wealth AUM (assets under management) over the next three years,” Jefferies said in the report, while cautioning that the HNI space is becoming increasingly crowded, and revenue models are evolving.“The HNI space is crowded and revenue streams are more layered. Transition from distribution to advisory model is key, but needs to be timed well,” the report noted.Wealth managers are increasingly targeting the ultra-high-net-worth individual (UHNI) segment, where ticket sizes are significantly larger. While the advisory model yields lower fees — typically 30–45 basis points compared to 50–100 bps under the distribution model — it provides benefits such as scale, deeper client relationships and stronger retention.Still, Jefferies cautioned that shifting too early to the advisory model could dent profitability, particularly when companies are still investing in growth and have not yet achieved optimal AUM per client.The report also highlighted that India’s HNI market remains fragmented, with stiff competition from both domestic and foreign players, including banks and brokers.As the industry grows, Jefferies warned of mounting cost pressures and attrition risks, urging firms to manage these challenges effectively to sustain long-term growth.