The Two Faces of Lakshmi: Building and Sustaining Your Wealth in India

After over two decades of navigating India’s economic landscape, both through my own financial journey and by working closely with thousands of wealth portfolios, I have come to recognise a fundamental truth: the skills needed to build wealth are very different from those required to preserve and grow it sustainably.

The Thrill and Challenge of Wealth Creation

The initial phase of wealth building often demands taking calculated risks. India’s remarkable growth story, powered by sectors like IT, pharmaceuticals, and manufacturing, has created fertile ground for visionaries who spot and seize emerging opportunities early on. I’ve witnessed countless individuals and businesses thrive by riding these waves of transformation. Personally, my own journey began during the IT boom and was enriched through management roles in the US and Europe.

However, wealth creation is only the beginning of the journey. Accumulating wealth is exciting, but sustaining and growing it over time calls for a different mindset—one shaped by India’s unique economic, political, and social realities.

The Reality of Wealth Preservation

Many wealth creators are surprised to learn that preserving wealth is no easy feat. Studies show a recurring pattern among families: the first generation builds the wealth, the second strives to preserve it, and the third often loses a significant portion or even all of it.

Why does this happen? Because wealth creation thrives on risk-taking, bold decisions, and venturing into unknown territories. In contrast, wealth management demands prudence, risk control, and a deliberate approach. It’s about safeguarding the assets you’ve worked hard to build, ensuring they endure, and steadily growing them for the future.

Two Roles, One Goal: Financial Success

You can think of these as two distinct roles:

The Wealth Creator: The entrepreneur and visionary, driven by ambition and an instinct for spotting opportunities. 

The Wealth Manager: The strategist and analyst, focused on risk mitigation, stability, and long-term growth.

After over two decades of navigating India’s economic landscape, both through my own financial journey and by working closely with thousands of wealth portfolios, I have come to recognise a fundamental truth: the skills needed to build wealth are very different from those required to preserve and grow it sustainably.

The Power of Balanced Counsel

Healthy debates and diverse viewpoints are hallmarks of wise investment counsel. Such counsel challenges your assumptions, broadens your outlook, and guides you to make more informed, resilient decisions. In the Indian context, where family wealth often passes through multiple generations, this balance is especially important. It ensures that the wealth you create today not only endures but also grows, benefiting your family and future generations.

Sleep well,

Chinmay Kulkarni