SUMMER TRAINING PROJECT REPORT

OF
MASTERS OF BUSINESS ADMINISTRATION

SUMMER TRAINING PROJECT REPORT

ON
“A STUDY OF AWARENESS & KNOWLEDGE ABOUT WEALTH MANAGEMENT
AMONG INDIVIDUALS”

INTERNAL GUIDE: Submitted by:

Dr. MAITRI Charu
Enrolment no. : 41235103917

MANAGEMENT EDUCATION & RESEARCH INSTITUTE

AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY,NEWDELHI
 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my

mentors who graciously gave me their time and expertise.

They have provided me with the valuable guidance , sustained efforts and
friendly approach. It would have been difficult to achieve the results in such a
short span of time without their help.
I deem it my duty to record my gratitude towards the project supervisor who
devoted her precious time to interact, guide and gave me the right approach to
accomplish the task and also helped me to enhance my knowledge and
understanding of the project.

Signature:
CHARU
41235103917
MBA 3rd Semester
2nd SHIFT
 DECLARATION

I hereby declare that the following document Project report title is “A STUDY OF
AWARENESS & KNOWLEDGE ABOUT WEALTH MANAGEMENT AMONG
INDIVIDUALS”
an original and authentic work done by me for the partial fulfillment of the
Masters of Business Administration degree program.
I hereby certify that all the Endeavour put in the fulfillment of the task are
genuine and original to the best of my knowledge and I have not submitted it
earlier elsewhere.

Signature:
CHARU
41235103917
MBA 2nd SHIFT
3rd SEMESTER
 PREFACE

This Project Report has been prepared in partial fulfilment of the requirement
for the “Summer Internship Project “in MBA (Master of Business Administration,
3rd semester) programme in the academic year 2017-2018

For preparing the Project Report, we have visited the company AIM India Pvt
Ltd, during the suggested duration for the period of 60days to avail the
necessary information. The blend of learning and knowledge acquired during
our practical studies at the company is presented in this Project Report.

The rationale behind visiting the company and preparing the Project Report is
to study the financial products basics, history and development of their
presence in Indian market, major factors in this sector, contribution of these
sector in the growth of economy and its functional areas like marketing
department, services, human resource department and financial department.
 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This to certify that the project work “A STUDY OF AWARENESS & KNOWLEDGE
ABOUT WEALTH MANAGEMENT AMONG INDIVIDUALS” made by CHARU MBA
(3rd SEM 41235103917 is an authentic work carried out by her under guidance
and supervision of Dr. Maitri

The project report submitted has been found satisfactory for the partial
fulfillment of the degree Master of Business Administration.

INTERNAL SUPERVISOR

SIGNATURE

Dr. MAITRI
COMPANY PROFILE
 INTRODUCTION TO AIM INDIA

AIM India believes in Dynamic Culture and it is our goal to help the
Individual in dealing with the dynamism of environment whether it is
related to their wealth or expansion of business. Aim India Group is the
leading Advisory in India and Abroad. We at AIM India provide Training /
Development programs in India and Abroad .We are having a team of
exclusive Corporate trainers .Our Principle is to deliver high rate of
returns to our clients through our network of government sector banks in
India.
Keeping in mind the most critical needs in today's context, we came up
with wealth Advisory firm to provide a customer expertise advice to
achieve financial Independence.
AIM India delivers a one stop solution/ service to achieve financial
independence. Their main principle is to deliver high returns to our clients
through our network of government sector banks in India. Its comprehensive
wealth management is a high level professional service that combines financial
and investment advice in accounting, taxation services and retirement
planning. Our wealth management is much more than just investment advice
as we encompass all parts of an individual's financial life. They coordinate all
the services needed to manage client's money and plan for their own and
family's current and future needs. We maintain and increase their wealth
based on individual's financial situation goals and comfort level with risk.

Commitment to their customers:

They offers an ongoing support and advice when your investment is
successfully done. We will keep you informed of changes in regulations that
directly affect you and leaving you to focus on strategies that maximize
profitability and productivity in investment.
Aim India deals with the product of India first life insurance
company, it acts as a mediator between people and company
through which people to know about product and manage their
wealth by investing in their company.

INDIA FIRST LIFE INSURANCE COMPANY:

ABOUT INDIA FIRST LIFE INSURANCE

Simply save. We’ll take care of the rest…

India First Life Insurance Company is a life insurance company in India. It is a

joint venture between two of India's Public sectors bank –Bank of baroda(44%)
and Andhra bank (30%), and UK's financial and investment company Legal and
general(26%).[1] . It was incorporated in November, 2009. It has its headquaters
in Mumbai. India First Life made more than Rs. 2 billion in turnover in just four
and half months since the insurance company became operational .India.First
Life insurance company is headquartered in Mumbai.
India First Life Insurance sells insurance plans, including life insurance,
investment funds, and group policies. The company's product range covers
protection (term insurance), savings, education and retirement. It has a range
of group insurance products in forms of credit, life, term and employee
liability.
It launched an unique micro-insurance plan ‘insurance khata’ targeted at those
in the informal sector and agricultural labourers with seasonal incomes.This
micro-insurance plan will be distributed exclusively through the 2.4 lakh
common service centres.
Banks make a joint venture to start a new company India first life insurance.

Indian state-owned International banking and financial services company

headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It has
a corporate office in Mumbai

• INDUSTRY: BANKING , FINANCIAL SERVICES

• FOUNDED: 20 July 1908; 109 years ago

• Founder: Maharaja H. H. Sir Sayajirao Gaekwad III

• Number of locations:5481 branch banks (2017)

• Area served: Worldwide

• Key people: Ravi Venkatesan (Chairman) P. S. Jayakumar (Managing

Director & CEO Bharat Dangar (Director)

• Products: Consumer banking, Corporate banking, Credit cards, Finance

and insurance, Investment banking, Mortgage loans, Private banking,
Private equity, Wealth management.
 • Revenue ₹42,199.92 crore (US$6.6 billion) (2017),₹44,061.27
crore (US$6.9 billion) (2016)

• Operating income ₹10,975.07 crore (US$1.7 billion) (2017)₹8,815.58

crore (US$1.4 billion) (2016)

• Net income₹1,383.14 crore (US$220 million) (2017) ₹-5,395.54

crore (US$−840 million) (2016)

• Total assets ₹694,875.42 crore (US$110 billion) (2017) ₹671,376.48

crore (US$100 billion) (2016)

• Number of employees: 52,420 (2017),52,021 (2016)

As many as 10 banks have been merged with Bank of Baroda during its
journey so far:

• Hind Bank Ltd (1958)

• New Citizen Bank of India Ltd (1961)

Andhra Bank: is a medium-sized public sector bank (PSB) of India, with a

network of 2803 branches, 4 extension counters, 38 satellite offices and 3636
automated teller machines (ATMs) as of 31 Mar 2016.

2011–12, the bank entered the states of Tripura and Himachal Pradesh. The
bank now operates in 25 states and three Union Territories. Andhra Bank has
its headquarters in Hyderabad, Telangana, India.

• Industry: Banking, Financial services

• Founded: 20 November 1923; 94 year Sago

 • Founder: Bhogaraju Pattabhi Sitaramayya

• Headquarters: Hyderabad

• Area served: India

• Products: Consumer banking, Credit cards, corporate banking, finance

and insurance, private banking, wealth management, Agricultural Loans

• Revenue: ₹18,027.42 crore(US$2.8 billion)(2016-17)

• Operating income: ₹4,387.95 crore(US$680 million)(2016-17)

• Net income: ₹174.32 crore(US$27 million) (2016-17)

• Total assets: ₹222,126.13 crore(US$35 billion)(2016-17)

• Number of employees: 20981 (2016-17.

Legal & General Group plc, commonly known as Legal & General, is a
British multinational financial services company headquartered in London,
United Kingdom.

Its products and services include life insurance, general

insurance, pensions and investment management.

It has operations in the United Kingdom and United States, with investment
management businesses in the Gulf, Europe and asia.

• Type: Public limited company

 • Traded as: LSE: LGEN
FTSE 100 Component

• Industry: Financial Services

Asset Management

• Founded: 1836; 182 years ago

• Headquarters: London, United Kingdom

• Key people: Sir John Kingman (Chairman) Nigel Wilson (CEO)

• Products: Life, Pensions and Investments

• Revenue: £77,969 million (2016)

• Operating income: £1,867 million (2016)

• Net income: £1,265 million (2016) AUM£894.2 billion (2016)

• Total equity: £7,283 million (2016)

ORGANISATION STRUCTURE:

1,500 Clients
As the leading one stop solution provider for all the financial and
investment services, we serve over 1,500 clients all over the world.

1,350 Interns
Being the only Company of its own kind, we have provided training to
more than 1,350 interns who got International Exposure as well.

100% Compliance
We handle almost 7,000 compliance issues per annum, needless to say,
we stay updated.
LIFE At AIM INDIA:
AIM India Pvt. Ltd. is the dynamic organization which thrives on smart
working and also seeks to provide adequate opportunities for AIM people
to relish while working. The company involves the activities like trips in
India & Abroad, fun activities at work place and various social events and
this is perceptible when you will join AIM India Group.
All through the year, various events are arranged which includes
awarding ceremony for best interns and employees. These events work
as a motivation factor for the employees to work more enthusiastically. It
also provides an opportunity to interact and socialize with the associates
and other colleagues across India.

AIM India Pvt. Ltd. provides an employee friendly work culture by giving
them opportunity to discuss new ideas, reward and recognitions for their
performance, training in case of discrepancy. The support of Senior
Managers is quite encouraging that they respect every individual's idea
and value their work by meeting them time to time. There is definitely a
healthy work environment in terms of mental and physical heath. There
are good practices and initiatives that provides the employees with no
stress at work and no overburdening of work.
It is our ambition to make the work culture adaptable for our employees
so that they can give us the maximum output while maintaining their
work life balance.

SERVICES PORTFOLIO:

1. Internship
We provide domestic & international level internship. We have a team
of experienced educational and training professionals who can provide
services/solutions for clients. Exposure to interns in mixed specialization
i.e. HR and Marketing which will result in the implication of their
theoretical knowledge into corporate world.

2. Accounting

We will help you in maintaining books to give you strategic insight

of the financial position of your company.

3. Training & Development

AIM India Training specialists includes professionals in Marketing,

HR and Finance. They will help employees and interns in learning
values which are needed in the corporate world to enhance
propositions which will help them in making their career.

4. Taxation
 Tax Management is required in every organisation but due to its
strenuous process, it can be difficult to manage at higher levels. Our
Professionals are flexible in their approach and provide services
according to the needs of clients.

5. Wealth Advisory
We are having experts who are helping individuals in managing their
wealth. These experts are also providing consultancy services
regarding financial and investment sector to individuals so that they
can secure the financial future for themselves and their family.

6. Consulting
Helping Customers providing professional or expert advice in wealth
maximisation, carrier planning etc. and we also guide them in taking
crucial decisions.

7. International Expansion
 With the help of our business partners we are helping Individuals in
expanding their business at International level. Our Professionals
are helping our clients to settle them abroad.

8. Recruitment

Our objective is to fulfill professional commitments and value-added

services in terms of recruitment of quality manpower. We have been
providing our recruitment services to the known names in all sectors.

9. INSURANCE
Life insurance is an act of love. Let's talk about protecting what
matters the most. Our motto is to provide coverage at affordable
premiums, our underwriters will provide you required coverage
efficiently & effectively.

PRODUCTS IN WHICH COMPANY DEALS:

 India first maha jeevan plan:

All of us work hard to ensure a happy life with our family. Wealth and
prosperity, however uncertain, remain among the most preferred
 wishes of most of us. How we wish we were certain about these aspects
of life and make sure that our family is ‘future shock proof’ forever.
Well, we understand your dilemma while taking important financial
decisions for your family and hence bring you the India First Maha
Jeevan Plan - a plan that will ensure that your family is not deprived of
wealth and prosperity even in your absence. Simply save towards your
family's future and the rest will be taken care by us. Our India First Maha
Jeevan Plan not only offers you an assured amount but also additional
returns in the form of bonus declared by the company. We will pay the
sum assured amount plus additional returns in the form of bonus
declared by the company, at the end of term.

What is the India first Maha Jeevan plan?

India First Maha Jeevan Plan is a non linked, with profit, savings plan. Under
this plan, you can choose how much you would like to insure yourself based on
your premium. We suggest you make sure this amount is what your family
needs to avoid cash flow problems in case of the unfortunate demise of the life
assured. Hence, we offer you three options to suit your individual needs.

What is the term of the Plan?

This is a regular premium plan with the option of choosing a 10 to 25 year plan
term.

Who is a Life Assured?

Life assured is the person, on whose life the plan depends. Death benefit starts
immediately on the plan start date. On the life assured’s death, the benefit is
paid out and the plan ends. Any Indian citizen can be the life assured, as long
as:
 Minimum age at the time of applying 5 years as on the last birthday
for the plan.

Maximum age at the time of applying 65 years as on the last birthday

for the plan

Minimum age at the end of plan term 18 years as on the last birthday

Maximum age at the end of plan 75 years as on the last birthday

term

Who is a Policyholder?
A policyholder is the person who holds the plan. The policyholder may or may
not be the life assured. In case the life assured is a minor, policyholder will be
either of the parents. You must be at least 18 years as on your last birthday at
the time of applying for the plan, to be a policy holders.

What are the mode of Premium Payment?

You may pay your premium monthly, six monthly or yearly.

How much can you Invest?

Premium paying mode Minimum premium under all options

Monthly Rs 522
 Six month Rs 3071

Yearly Rs 6000

What is the life cover under this plan?

sum assured under all options limit

Minimum Rs 50,000

Maximum Rs 2,00,000,000

Life cover is single, double or triple sum assured as opted for based on your
needs under our Silver and Gold options respectively.

For Example: Sum Assured chosen based on premium and age: `2,00,000

Plan option chosen: Silver Death benefit under the India First Maha Jeevan

Plan – Silver Option: ` 4,00,000 (Sum Assured of `2,00,000 X 2) plus accrued

bonus.

Maturity benefit is ` 2,00,000 plus accrued bonus plus terminal bonus if any.

Do you get tax benefits under this plan?

Yes. Under Section 80C of the Income Tax Act 1961, you can enjoy tax benefits
on the premium you invest up to ` 1,00,000. You also get tax benefit on the
benefits you receive at maturity of your plan, under Section 10(10D) of the
Income Tax Act, 1961. Please consult your tax advisor for further details. Death
benefits are also tax free under section 10(10) D of the Income Tax Act, 1961.

What do you receive at the end of the plan term?

Under all the options the sum assured along with the simple reversionary
bonus and terminal bonus, if any is paid at the end of the plan term. The
simple reversionary bonus, if any will be announced by us at the end of the
financial year. The rate of the simple reversionary bonus may vary from time to
time.

What happens in case of the life assured’s desmise?

A lump sum amount will be paid to the nominee in the unfortunate event of
the life assured’s demise. This will depend upon the type of option that you
have chosen.

Type of option Large sum amount

classic Sum assured + simple reversionary

bonus accumulated till death if any

Silver (sum assured* 2) + simple

reversionary bonus accumulated till
death if any

Gold ( sum assured*3)+ simple

reversionary bonus accumulated till
death if any

What happens in case of the policyholder demise if the life assured

is minor?
As and when the life assured attains majority, the plan will vest on the life
assured . However, in case of death of the policyholder while the life assured is
a minor, the following conditions will apply: - The surviving parent or legal
guardian who has insurable interest on the minor life will be the policyholder. -
In case there is no surviving parent or legal guardian then:

• If the plan has not acquired a surrender value (within 3 years since
inception), the plan terminates.

• If the plan has acquired a surrender value (from fourth policy anniversary
onwards), then the plan will continue as a paid-up plan and proceeds will be
paid as per the plan terms and conditions.
Can you avail of a loan under this plan?
Yes, you may benefit from a loan facility under this plan. The amount of the
loan that you may avail at any point of time will depend on the surrender
value. You may avail of a loan amount up to 90% of the available surrender
value. The minimum loan amount should be ` 1,000. As and when the
outstanding loan principal along with interest exceeds surrender value, the
plan will be compulsorily surrendered. The outstanding loan along with
interest will be recovered from the surrender proceeds and plan terminates. In
case of unfortunate demise of the life assured, maturity or surrender, any
outstanding loan principal along with interest will be recovered before making
the payment.

What happens if you miss paying your premiums?

1-3 years The plan doesn’t acquire any value, if
you stop paying premium during the
first 3 plan years.

We offer a two year revival period

during which you can revive your
plan. No benefits will be payable
during this period.

4th plan year The plan acquires a guaranteed paid

up value, if you stop paying premium
a f t e r three full years. The paid up
value under all options will be the
proportional basic sum assured plus
the accumulated bonus. We will pay
the paid-up value at the date of
maturity or on death of the life
assured before maturity date. The
plan stops participating in the profit
once it becomes paid up.
The proportional sum assured is equal to – (Sum Assured* No of premiums
paid)/ Total number of premiums payable)

Can you surrender your plan?

Yes. While we do not encourage you to surrender your plan, you may choose
to surrender the same for immediate cash in case of an emergency any time
after the payment of three full premiums. The amount payable on surrender
will be higher of the Guaranteed Surrender Value (GSV) and Special Surrender
Value (SSV).

Guaranteed surrender value 30% of the total premium paid less:

first year premium.

Any other premium and rider

premium paid

Special surrender value Paid up value. SSV factor at the time

of surrender

Key features
• Your life is precious. You can now get the advantage of enhanced life
coverage by doubling/ tripling the sum assured.

• Ensure your prosperity with the assurance of a guaranteed maturity amount

(sum assured) and the upside of a bonus declared every year.

• We prosper only if you prosper. We share additional earnings, if any through

an extra bonus, if any, (terminal bonus) declared at the end of the plan term.

• Plan your future needs by deciding exactly when you need

theassuredamount-anytimebetween10-25years.

• Build your savings systematically, through regular premium contributions

based on your income and needs.
• The plan offers a life cover of one, two & three times the sum assured,
through our Classic, Silver and Gold Options respectively. The sum assured
along with simple reversionary bonus and terminal bonus, if any will be paid at
the end of the plan term.

Under Section 80C you can enjoy tax benefits on the premium you invest. You
can also get tax benefit on the benefits you receive at maturity of your plan,
under Section 10(10D).

Reasons to buy MAHAJEEVAN PLAN

1 Accumulate your savings automatically through regular premium
contribution based on your income and needs

1. Plan your future needs and desires when you need the assured amount
anytime between 15-25 years.

2. Prosper with the guaranteed maturity amount and bonuses.

3. Enjoy additional earnings through terminal bonuses.

4. Enhance the plan benefit with India first term rider and get a death
benefit equal to the rider sum assured in case of the life assured.

5. Avail tax benefits under sec. 80c and section 10(10D) as per the
prevailing income tax laws.

What are the eligibility criteria?

1 The minimum age for applying is 5 years and the maximum age for
applying is 55 years.
2 The minimum age at the end of the plan is 20 years and the maximum
age at the end of the plan is 70 years.

DOCUMENTATION:
1 Two photos
2 one address proof
3 one DOB proof
4 Income proof ( ITR)
  Term plan

Buying a term life insurance is one of the most honest ways to ensure
that your loved ones remain financially secure, even if you weren't
around.

At AIM India, we just ensure that this job is well done. Helping you find
and purchase the best possible term insurance plan is one just part of
the job. The other is to ensure that your loved ones are well-assisted
with care in their hour of need.

What are Term plan insurance?

Term insurance plans, also called term plan in short , offer the basic protection
coverage to individuals. Term plans are the essence of life insurance that gives
financial support to the family of the individual in case of premature death of
the individual . in technical terms, term plans can be defined as a contract
between the insurance company and the person insured wherein the company
promises to pay a lump sump amount called sum assured , if the insured dies
during the term policy. The term policy is the time, in years, for which the plan
has been bought by the insured . in exchange of the promise made by the
insurer, the insured needs to pay premiums to the company against the chosen
coverage for the term of the policy.

Why term insurance plans?

Term insurance, being the basic insurance plan, is the cheapest plan in the
market where by paying a minimal amount of premium one can avail a high
coverage for protection purposes. Life is uncertain and everybody facesthe risk
of untimely death. On the death of a family member , the family suffers both
emotional and financial loss. While emotional loss cannot be compensated,
the financial loss suffered can be compensated considerably through
insurance. Term insurance, at the same time, offers high coverage at lower
costs thus making it affordable to have a high coverage.

India first life insurance offered different types of term plan to its customers to
meet their protection requirement.

Star Health Life Insurance

Eligibility :
 Entry age between 3 months and 65 years.

 Lifelong renewals guaranteed.

 No exit age.

 Dependent children (those who are economically dependent on their

parents) can be covered upto 25 years of age.

Pre-acceptance Medical Screening:

 All persons proposed for insurance who are above 50 years of age are to
undergo Pre acceptance medical screening at the company nominated
centers.

 The cost of such screening will be borne by the Company.

 The age for screening and the cost are subject to change.

Coverage (Section 1)
 Hospitalization Cover: Room (Single Standard A/C), Boarding and Nursing
expenses.

 Surgeon's fees, Consultant's fees, Anesthetist's and Specialist's fees.

 Anesthesia, Blood, Oxygen, Operation Theatre charges, Cost of Pacemakers.

 Air Ambulance cover: Up to 10% of the sum insured per policy period.
Applicable for sum insured of Rs. 7.50 Lakhs and above only.

 Emergency ambulance charges for transporting the insured patient to the

hospital up to the limits stated in the schedule of benefits.
Tax Benefits:
 Payment of premium by any mode other than cash for this insurance
is eligible for relief under Section 80D of the Income Tax Act 1961.

Cancellation:
Company may cancel this policy on grounds of misrepresentation, fraud, moral
hazard, non disclosure of material fact or non-co-operation by the insured
person, by sending the insured 30 days notice by registered letter at the
insured person's last known address and no refund of premium will be made.
The insured may at any time cancel this policy and in such event the Company
shall allow refund after retaining premium at Company's short period rate only
(table given below) provided no claim has occurred up to the date of
cancellation.

Star Advantages
 No Third Party Administrator, direct in-house claim settlement.
 Faster & hassle-free claim settlement.
 Cashless hospitalization, wherever possible.
 Network of more than 6000 hospitals across India.
 24x7 Toll Free Helpline.
 Information on health through free health magazine.
 Facility for maintaining personal health records in electronic
format.

PLACES AT WHICH COMPANY IS OPERATING:

Regional Presence

Current Operations

India

 New Delhi
 Bengaluru
 Mumbai
 Pune
 Hyderabad
 Gurugram

Coming Soon

Malaysia

Dubai
SWOT ANALYSIS:

Strength
 Strong financial hold from bank of Baroda, bank of Andhra, legal and
general
 Excellent team working with their 100%
 Proper discipline Maintain during internship and provide knowledgeable
information related to market.
 People working in the Organisation are supportive.
 Having customised product for everyone.

Weakness
 Need to improve their presence in nearby areas and cities
 Trust on private companies became a major issue.

Opportunities
  Various clubs were launched in order to sell the product to the clients
and reach a certain target in order to accomplish them and get a foreign
tour.

Threats
 Its difficult task to win the confidence of the public towards private
company.
 the company is facing major threats from LIC, HDFC, ICIC
INTRODUCTION
 WEALTH MANAGEMENT

Wealth Management as a concept originated in year 1990’s in the US.

Essentially it is the investment advisory covering financial planning that
provides individuals with private banking/ asset management/ taxation
advisory & portfolio management. Warren Buffett is the most successful
investor in world. He says that “The basic ideas of investing are to look at
stocks as business, use the market's fluctuations to your advantage, and seek a
margin of safety. That's what Ben Graham taught us. A hundred years from
now they will still be the cornerstones of investing”. He is even called as wealth
creator.

Wealth Management means:

Wealth management is a high-level professional service that combines

financial/investment advice, accounting/tax services, retirement planning and
legal/estate planning for one fee. Investors work with a single wealth manager
who coordinates input from financial experts and can include coordinating
advice from the investors own attorney, accountants and insurance agent.
Some wealth managers also provide banking services or advice.

In others words, it is basically an investment advice or assistance to manage

person’s financial needs. These services are offered to investors in packages to
provide benefits with two main goals growth and safety of their existing
investments.
HOW TO START?
Before deciding how your money should be managed, you need to determine
the financial situation and financial goals for both you and your business. To do
this, you need to:

• Understand your business and personal financial goals and constraints

• Analyse your business and personal financial position using net worth and
cash flow analysis

• Assess your business risks and personal risk profile

You need to take into account your personal financial situation because as a
business owner, your financial situation is closely tied to the state of your
business. Once you have determined your net worth and set your goals, you
will need to have an action plan to achieve these goals.

Net Assets (wealth) = Assets – Liabilities

Net Income = Income – Expenses

WHAT ARE THE ASPECTS OF WEALTH MANAGEMENT?

There are many misconceptions about wealth management, and many people
are not aware of just how many aspects of wealth management there are
beyond ordinary investment management. From risk management and
retirement planning to estate planning and family allowances, here is a look at
the many aspects of wealth management.

Risk Management
This is one of the most important aspects of wealth management, as it involves
protecting any already-existing wealth. A qualified wealth management
professional can help you assess your potential for loss and then take the steps
necessary to protect your assets, be it through insurance, legal policies, etc.

Retirement Planning
There are a number of ways to prepare for retirement, and an accountant who
specializes in wealth management can help you navigate which options are
best for you. Many people today choose to open a Roth IRA, but you can also
explore other options such as a traditional IRA, taxable investment account, or
savings account.

Lifestyle Budgeting
One crucial aspect of wealth management is ensuring that cash flow
management and budgeting correspond to the particular needs and lifestyle of
the client. That is where lifestyle budgeting comes in. Lifestyle budgeting is
especially important for higher wealth individuals whose lifestyle is dependent
on family, multiple employees, etc.

Philanthropy
Philanthropy or charitable planning is a great wealth management option for
anyone with a philanthropic desire. Wise charitable planning can create a
charitable tax deduction and help reduce tax burden, all while giving back to
the community and setting up future gifts for designated recipients.

Debt Structuring
Debt structuring refers to the process through which an individual (or business)
strategically pays off loans and debts. A wealth management professional
might, for example, recommend taking out a second mortgage and using that
money to pay off three credit cards at once. The lower interest rate of the
second mortgage would make managing debt easier than it would be keeping
up with the higher interest rates of credit card debt payments.

Estate Planning
Estate planning refers to the comprehensive process of organizing your assets
and creating a plan for your assets for after you are gone. Estate planning is a
wide ranging realm of its own, and a qualified professional can help you
establish trusts, prepare a will, assign guardianship and conservatorship
responsibilities, and more.

Family Allowances
Family allowances, or family exemptions, are distributed to an individual’s
surviving spouse and minor children and are designed to help maintain them
for a period of up to one year following the individual’s death. These usually
take priority over almost all other claims (including creditor claims), and they
are typically carved out of the individual’s estate (that is, not treated as an
advantage of future estate distributions.) A wealth management specialist can
help you understand the particular family allowance laws that apply to your
family.
IMPORTANCE OF WEALTH MANAGEMENT:

 Comprehensive financial advice. Wealth management offers a

comprehensive analysis of your financial health. It will provide you details
of the current status of your money. When you know where you stand, it is
easier to get advice and make decisions for investments and financial plans.
You will be able to evaluate your needs and work on getting what you want
for yourself and for the business. Comprehensive financial advice also
provides a review of your insurance and retirement planning needs.

 Develop strategy for your business. Creating a road map based on your
financial status lets you set realistic goals and strategies for the business.
Comprehensive wealth management involves strategic planning of your
goals. It serves as the framework of your plans and objectives. Long-term
goals will dictate the steps you have to take to meet your target. It helps
the business grow and develop a strategy that matches your business
model.

 Provides gap analysis. The assessment between your goals and current
financial status is necessary to help you identify and plan your actions
carefully. When you conduct gap analysis, it lets you evaluate your
resources and allows you to see the strength and weakness of your plan. It
ensures that you are prepared on the deals you have to face to reach your
goal and fill-in the gaps to meet growth expectations.

 Lifestyle maintenance. Your most important planning objective is likely to

preserve your financial independence. One of the major obstacles to
effective planning can be the gap between the perception of wealth and
reality of wealth. Thus, you should clearly define what is required to
maintain your current lifestyle.
Private Wealth Management

Private wealth management is delivered to high-net-worth investors. Generally

this includes advice on the use of various estate planning vehicles, business-
succession or stock-option planning, and the occasional use of
hedging derivatives for large blocks of stock.
Traditionally, the wealthiest retail clients of investment firms demanded a
greater level of service, product offering and sales personnel than that
received by average clients. With an increase in the number of affluent
investors in recent years,[2] there has been an increasing demand for
sophisticated financial solutions and expertise throughout the world.

Financial Planning
Everyone has needs and aspirations. Financial Planning is an approach to
assess the adequacy of income and assets of a person to meet the financial
requirements for fulfillment of these needs and aspirations.

The role of financial planning has been increasing in the market because:

 Needs and aspirations of people are ever-increasing. This increases the

financial challenge that people face. Investors need to be counseled on
the difference between needs (essentials) and wants (desires).
Prioritization of expenses is critical for people who are struggling to
make both ends meet.
 Joint families are giving way to nuclear families. The nuclear family stays
in a separate house. The rentals or the acquisition cost of a house, are
an important financial need to plan for.
 In a nuclear family, the individual is responsible for his immediate family.
The extended family, staying under a different roof, cannot be expected
to support the regular financial needs of the individual.
 The period of earning for individuals is reducing, while the longevity (life
span) of people is increasing. This means that incomes earned over a
 shorter time period need to finance the needs over a longer period of
time. Hence the need for retirement planning.
 Income levels are going up. Higher investible surplus needs to be
invested prudently for the future. Hence the need for professional
financial planning advice.
 The financial assets and liabilities that are available in the market for
various needs are getting more and more complex. It is difficult for a
layman to have a comprehensive understanding of these financial
products.
 Tax provisions keep changing. People need to plan their taxes and
ensure that they take full benefit of the concessions available. This has
opened the doors for professional tax advisers.
 Increasing complexities in family structure can create problems while
transfer wealth to next generation. Therefore, estate planning is
important.

Objectives of Financial Planning:

Financial Planning has got many objectives to look forward to:

 Determining capital requirements- This will depend upon factors like

cost of current and fixed assets, promotional expenses and long-
range planning. Capital requirements have to be looked with both
aspects: short- term and long- term requirements.

 Determining capital structure- The capital structure is the

composition of capital, i.e., the relative kind and proportion of capital
required in the business. This includes decisions of debt- equity ratio-
both short-term and long- term.

 Framing financial policies with regards to cash control, lending,

borrowings, etc.

 A finance manager ensures that the scarce financial resources are

maximally utilized in the best possible manner at least cost in order
to get maximum returns on investment.
Importance of WEALTH MANAGEMENT

In establishing goals and objectives for the use and transfer of wealth, you
probably prioritize them in this order: self and spouse, heirs (children and
grandchildren), and community needs and opportunities. It is important to
develop a wealth management plan that matches your priorities.

Lifestyle maintenance
Your most important planning objective is to maintain your current lifestyle
and ensure your financial independence. One of the major obstacles to
effective planning is the gap between the perception of wealth and reality of
wealth. Thus, you should clearly define what is required to maintain your
current lifestyle. In other words, the annual income needed for personal
consumption and material assets (house, car, vacation home) to maintain your
lifestyle and adequate liquidity.

Wealth transfer to heirs

Most likely, you want your heirs to be safe and comfortable, to help them
become established and successful in life, and to provide for their medical or
Shousing needs if they meet unexpected emergencies. In addition, you want
your children and grandchildren to exhibit character, mental strength,
integrity, a sense of family legacy, and responsible behavior – attributes money
can’t “buy.” In short, you want your heirs to be self-supporting, but would like
to provide both selected advantages and a “safety net.”
Role of Financial Planner/ Wealth Manager
The financial planner’s fundamental role is to ensure that the investors have
adequate money/ wealth for various financial needs/ goals.

While performing this role, financial planners offer some or all of the following
services:

 Preparing a financial blue print for the investors future

 Advice on investment in share market
 Advice on investment in small savings schemes and other debt
instruments
 Advice on investment in mutual funds and other investment products
 Suggesting a suitable asset allocation based on risk profile of the
investors
 Management of loans and other liabilities
 Insurance planning and risk management
 Tax planning
 Planning for smooth inheritance of wealth to the next generation.

Financial Planning in India

Mutual Fund distributors and others involved in selling or distributing mutual
funds need to pass the prescribed examination before they can start selling
mutual fund schemes. However, no such requirements have been set for
financial planners and wealth advisers.

Securities & Exchange Board of India (SEBI) has come out with a concept paper
on the proposed regulatory structure for investment advisers. The highlights
are as follows:

 There is an inherent conflict of interest between a distributor earning a

commission as agent of a product manufacturer (such as a mutual fund)
and performing the role of financial adviser claiming to protect the
investor’s interests.
 The proposed model to tackle this conflict of interest is as follows:
  The person who interfaces with the customer should declare upfront
whether he is a financial advisor or an agent of the companies.
 Advisers should be governed
 They should be subject to Investment Advisors Regulations.
 Advisors should acquire higher level of qualifications.
 They may act as advisor to investor for multiple financial products.
 They will receive all payments from the investor. There would be no
limits set on these payments.

Financial Planning to Wealth Management

Financial planning seeks to ensure adequacy of assets and cash flows for
meeting the financial goals of the Investor. In the case of a wealth
management Investor, adequacy of assets is not an issue. The Investor will
have the assets, though cash flow (liquidity) can be an issue if not suitably
invested.

A wealth manager seeks to understand what the Investor wants with the
wealth viz. grow the wealth with an openness to take risk; or consolidate the
wealth with a conservative approach to risk; or preserve the wealth while
avoiding risk to the extent possible. Different asset allocation mix would be
appropriate for each of these profiles. Wealth Management deals with
creation, accumulation, preservation and enjoyment of wealth.

Wealth Management in India

India’s wealthy are relatively young compared with their international
counterparts and, hence, take a different approach to wealth management.
The demographic difference presents an opportunity to create new products
to address the needs of a young population and leverage new technologies,
such as social- and mobile-enabling investing applications as a key
differentiator. India’s wealth management services sector is largely
fragmented, which isn’t surprising given the industry is still in its early days.
Hence, it is recommended that firms take a long-term view while evaluating
potential return on investment. Given the market and a demographic and
regulatory environment that is significantly different from elsewhere in the
world, we recommend wealth managers consider the following to succeed in
the Indian market:

• Build your brand and focus on overcoming the trust barrier.

• Invest in advisor technology to improve advisor productivity and retention.

• Evaluate a partnership-based model, coupled with innovative use of

technology, to increase reach.

Wealth management process

A fundamental goal we have is to assess if we can add significant value to the

financial well-being of a client. Another goal is to simplify the complexities of
finance and help our clients navigate through various financial life stages, from
wealth accumulation to wealth distribution. The process must be consistent
with our client's values, goals, and concerns. Whether our client is an
individual, a family, or a business owner, we believe in developing a lasting
relationship built on trust and the process that we practice is the same.

 Discovery Process
In our initial meeting, we will explain our services, but more important,
we will listen as our clients share what is important to them and their
family. Our goal is to understand their values, concerns, and their
current financial goals and obligations in detail.
 Exploration
This meeting explores the planning process deeper, learning about our
client's risk tolerance, money management philosophy, and current
asset allocation. We can also review current wills and trusts, estate and
legacy planning, and insurance needs that meet the level of protection
wanted for the family.
  Planning Process
Based on our analysis of your needs, we will design a strategic plan and
provide recommendations geared toward helping you achieve your
financial objectives. We may include portions of advance planning, if
applicable, such as estate and asset protection, gifting and charitable
trusts, and, for business owners, succession planning.
 Plan Implementation
Once the client fully understands the plan and is comfortable with it, we
will move forward with implementing the strategies and
recommendations.
 Ongoing Review
Life events occur, such as marriage or job status change. By reviewing
the client's plan regularly, we can make the necessary adjustments to
help keep the financial plan on track.

What is the future for wealth management?

The Wealth Management industry in India is a prime example of the success of

free competition in the country. Wealth Management is one of the fastest
growing disciplines of the banking sector and with a GDP growth rate hovering
around the 7% mark and a strong future outlook, India’s growth story is
making it an increasingly attractive market for wealth management firms. This
trend is expected to continue, with India estimated to become the third largest
global economy by 2030.

Given the nascent stage of the market and a demographic and regulatory
environment that is significantly different from elsewhere in the world, Wealth
Management Business Houses consider the following to succeed in the Indian
market: -

 Building of brand and focus on overcoming the trust barrier.

 Invest in advisor technology to improve advisor productivity and
retention.
  Evaluate a partnership-based model, coupled with innovative use of
technology, to increase reach.

 Focus on transparency and compliance, while targeting customers

with attractive, segment focused products.

Current Primary Focus of Wealth Management Business Houses

1. Qualified advisors will be the best brand ambassadors for new firms
seeking to gain a competitive edge against established players.

2. Investor education programs could deliver information pertaining to

various asset classes and the associated risks, fee structures and
benefits of each.

3. Establishing trust is a vital component for any successful brand-

building exercise in India.

In the future, there are several new type of clients you will have who will
required emergence of new digital technologies such as robo-advice platforms
and a plethora of new regulations. These changes demand a new kind of
business model, one that’s built on digitally led hybrid advice, customized for
individual investors, and focused on goal-based planning and outcome-
oriented investing.

In future Wealth management client will required an enjoyable life without any
worry which helps client to make better financial choices. In future they
consider themselves alternative to other firms by not being product or
provider driven, but rather by focusing on lifestyle and goals using detailed
planning to deliver real value.
LITERATURE REVIEW
Velmurugan et al concludes that investment done in various investment
avenues with the expectation of capital appreciation and short and long term
earnings. The basic idea behind investment of all government, private, self-
employed and retired person in this study is to utilise the surplus money in
favourable plans so that the money will be rolled back as well as it will give high
return also. When a common men thinks about investment he will never go for
any risky plan. In the present scenario the share and gold market is highly
uncertain and unpredictable, so the investor should analyse the market
cautiously and then make investment decision.

Cognizant Reports published a report which says that India’s wealth

management services sector is largely fragmented, which isn’t surprising given
the industry is still in its early days. Most organized players have so far focused
mainly on the urban segment, leaving untapped about one-fifth of India’s high
net worth individuals population. While early entrants and established local
players have gained trust with potential investors, firms looking to enter the
market will need to invest heavily in brand – building exercise to convey their
trustworthiness. Hence it is recommend that firms take a long term view while
evaluating potential return on investment.

Vij Madhu23 in her article “Asset Liability Management in Indian Banks” has
observed that the importance of managing the asset-liability mix in the Indian
financial markets has emerged from the increasing volatility in the domestic
interest rates as well as foreign exchange rates that has evolved after
liberalization. This deregulated interest rate environment has brought pressure
on the management of banks to maintain a good balance among spreads,
profitability and long-term viability. Over the last few years their has been an
intense competition and banks and financial institutions have been required to
take up strategic planning as an exercise for asset liability management in order
to survive and grow in the ever increasing competitive and risky environment.

Nayak in his report says that there has been a significant change in the levels
and density of saving pattern of the rural households because of the increase in
saving opportunities available with a convenient bar. The increase in the
financial institutions like banks, micro finance institutions, SHGs and other local
banks provided an opportunity to the rural people to save more. The increase in
awareness among the people for their future security as through the unforeseen
cases like sudden death of a family member, medical emergency and any other
financial crisis, education of their children, marriage of a family member has
made people inclined to save. The degree of change in savings as compared to
urban communities of the rural household are not much but still has brought a
revolution in the pattern of savings of the rural households.

Demand for private bankers in India has surged in recent times with the
emergence of new millionaires and burgeoning pools of shrewdly invested
money in growing asset classes. This is making wealth management the most
sought-after profession within the financial services sector where a top banker
managing an active investment book in excess of Rs 4,000 crore can
consistently earn a total annual compensation of Rs 3-4 crore. Compared to
this, investment bankers see compensation fluctuating every year in line with
deal income.

“The amount of wealth creation is increasing in India, leading to a greater need

for people to manage it,” said Anshu Kapoor, head, Edelweiss NSE 0.09 %
Private Wealth Management. “As wealth is compounding at 12-14% per
annum, more clients are seeking options of what to do with it.”

There are more than 2,500 established private bankers in India, with 200 of
them managing over Rs 1,000 crore, according to estimates by Vito India, a
leading executive search firms. Most wealth management firms increased their
headcount last year, anticipating larger business volumes in the future. IIFL
added 250, Centrum Wealth added 135, while Edelweiss, Aditya Birla NSE -1.91
% and Kotak Wealth beefed up their wealth desks by 50 each.
“In the past 24 months, the industry has seen a massive surge in demand for
professionals at the middle to senior level,” said Naveen Tiwari, head, private
banking practice, Vito. In the past six months, Vito has been retained for five
CEO searches for existing and new wealth outfits.
“We have seen emergence of newer domestic wealth outfits including some
global entrants and some of the existing large wealth firms going public.
Demand of talent has grown exponentially,” Tiwari said.

Wealth managers like Kapoor believe the opportunity for growth is

significantly bigger from a longer-term career perspective in wealth
management than in investment banking, with its larger market size and
revenue pool. Plus, compensation is more attractive due to the dearth of
quality talent.
“The industry is growing in leaps and bounds with lots of wealth and new money
being created through different avenues such as selling of land parcels,
unlocking equity or people doing successful business going in for IPOs (initial
public offerings),” said Prateek Pant, head, product and solutions, Sanctum
Wealth Management.

There are about 150,000 families in India with wealth of Rs 25 crore or more
each, according to industry or more each, according to industry estimates. This
is expected to rise to 500,000 by 2025. Cumulative wealth will increase to Rs 500
trillion by 2025 from Rs 160 trillion now. However, the amount of wealth being
managed by institutional players is less than 25%, leading to robust demand.
Families have also witnessed the creation of wealth through capital markets,
sparking the need for wealth manager. “Many new entrants have been added
and older institutions have wrapped up and pared down as savvy customers
demand better service and pricing and are not as gullible as in the past,” said
Sraboni Haralalka, executive director, Wodehouse Capital Advisors.

Competition for talent is leading to job opportunities. Last week, ET reported

that about 20 senior-level executives from the leadership team at Reliance NSE
-2.57% Wealth Management quit the Reliance Capital NSE 1.77 % subsidiary
and joined Avendus Wealth, the wealth management arm of KKR-owned
financial services firm Avendus Capital.

Indian wealth managers earn as much or even more than global counterparts
— as much as 20-25% of revenue generated against 12-18% internationally,
according to Vito data.
If a client has held a portfolio for a sustained period of time, revenue
predictability is much higher for a private banker due to aspects such as trail
revenue and performance-linked advisory fees associated with the investment
book. This translates into the greater possibility of incentives or bonuses for
the private banker without incremental effort on the investment book built.

A wealth manager’s compensation consists of trail, advisory revenue and

commission. Trail revenue is an annuity income which a private banking outfit
earns from the cumulative mutual fund portfolio of its clients which is held for
more than a year. (It is generally 0.4-0.6% of the total mutual fund holding.)

The increasing demand for wealth managers is also because many outfits are
looking to penetrate newer territories by opening offices in tier two cities. Due
to scarcity and out-pricing of talent, various wealth outfits are willing to look at
personnel from alternate pools such as asset management, corporate banking
and treasury business.
 RESEARCH METHODLOGY

Research Methodology is the systematic and theoretical analysis of the methods

applied to a field of study. It involves qualitative and quantities techniques. In
other words, it is a process used to collect information and data for the purpose
of the making business decisions.

This part aims to understand the research methodology establishing a

framework of evaluation and revaluation of primary and secondary research.

Title of study

“A Study on Wealth Management in India”

Research Objective

1. To know the awareness for Wealth Management in India.

2. To figure out the popular source of investment avenue.

3. Percentage up to which individuals is ready to save at how much risk.

4. How much people believe to invest their wealth for future use?

The population for the study consisted of Individual Investors from South-West
Delhi. A sample of 35 respondents was selected on random basis. To meet the
objective of the study, primary data were collected. Primary data was collected
through a pre-designed, structured and non-disguised questionnaire. The
questionnaire included close-ended and open-ended questions. To study the
each questions based on the scores, respondents have been categorized on the
basis of level of awareness i.e. highly aware, moderately aware and low level of
awareness. Various statistical tools like Percentage mean score, and rank score
were applied for the analysis.
Research design is the conceived plan and structure of investigation to obtain
answers to the research questions. This research was organized in the following
manner. Initial step is to analyse the past and present investment. Where
Investors invest their hard earn money and how investment portfolio is
constructed.

I. RESEARCH DESIGN USED:-

In this case, a Descriptive Research and Casual Research Design study was used
to study the relationships in question. Descriptive research facilitates the study
to obtain accurate and complete information regarding a concept or a situation
or a practice.

Therefore, survey method was followed for the study.

Research Design

Data Collection Survey through Questionnaire

Type of Data Primary data

Sample Area Individual equal and above the age

young

Research Instruments Questionnaire

Type of Questionnaire Structured

Statistical Charts used Pie Charts, & bar Graphs

Sample Size 35

Sampling Technique Convenient Sampling

 II. DATA COLLECTION:-

Here, only primary data is considered.

Primary Data were gathered using questionnaire as a tool for data collection.
The data was collected through personal contact with the help of a well-
designed structured and pretested questionnaire given in Appendix. The
questionnaire was drafted in order to study the preferences of individual
investors and collected relevant information about their Investment portfolio
and investment behaviour. The questionnaire were distributed among the
respondents by the researcher personally and also through the mail. The
respondents found the topic and the questionnaire very interesting. The
researcher was required to explain the purpose of the research and investment
avenues to the respondents. Some respondents refused to complete the
questionnaire because of an inquiry into their personal income. The researcher
assured the respondents to use the information strictly for research purposes.
Therefore, the questionnaires, duly filled in, were collected within a period of 3
days.

III. SAMPLING TECHNIQUE:- Sampling Population: The respondents were

selected from South-west Delhi. Therefore, the population of sample was
the Individual investors in South-west Delhi. The population of the study
comprises Families in Mumbai who are literate and who are either job
employed or self- employed. The sampling unit is taken as an individual.
The study relates to individual investors living and working in various
areas of Delhi.

SAMPLE SIZE: Total 35 respondents were surveyed in South-west Delhi. Having

limited resources and time, the researcher used the stratified random method
of sampling from certain identified strata of the population units. The
respondents accessible at ease, at the right time and place were selected. The
sampled units were selected on the basis of ‘Stratified Random Sample’. The
researcher made a sampling plan to contact the respondents from different
locations so as to spread the sample over. The researcher also planned to
contact respondents to cover a wide range of age, sex, occupation, education
and employment wise groups in order to ensure representativeness. Thus,
Stratified random sampling method was used for selection of respondents.

Limitation

 The limitations of the study are those characteristics of design or

methodology that impacted or influenced the interpretation of the
findings from my research.
 Sample size may not complete representative the universe.
 Completely relying on the data provided by individual through
questionnaire.
 A failure to use a random sampling technique significantly limits the ability
to make broader generalizations from results.
 Less geographical reach.
 Man Power constraint.
 Lack of face to face communication as large number of survey is done
through google forms.
 Lack of time to study the border concept
 ANALYSIS

Interpretation
From the above graph that 48.6% respondents are works in private sector , 25.7% work in their own
business, 20% work in govt sector and left are work in other and house maker.
Interpretation

The above graph shows that 51.4% respondents earns around up to 200,000
per year, 31.4% earn 200,000- 500,000 per year , 11.4% earns 500,000-
10,00,000 .
Interpretation

The above data shows that 45.7% of surveyed respondents invest in others and
after that 37.1% people invest in mutual funds and then 22.9% people invest in
insurance and rest in equity & debentures.
Interpretation

The above graph shows that 60% respondents know about the wealth
management firms and 40% are not even know about the wealth
management.
Interpretation

The above data shows that 42.9% respondents are buying movie tickets online
, 34.3% are using net banking, 31.4% are not doing any online transaction,
25.7% are booked flights/train tickets online, 22.9% are booked hotel rooms
online.
Interpretation

The above graph shows that 37.1% people are using online platform, 28.6%
using NA & 34.3% using offline mode of investment.
Interpretation

The above graph shows that 42.9% people feel more suitable with other mode,
31.4% people feel more good in mobile texting, 17.1% feel online screen
sharing and rest of the people feel comfortable in video.
Interpretation

The above graph shows that 51.4% people are investing 5%-15% of their
income, 25.7% people are investing less than 5% of their income , 14.3%
people are investing 15%-25% of their income.
Interpretation

The above graph shows that 48.6% people are more prefer their investments
through banks , 28.6% people are prefer to not investing , 11.4% people are
doing direct investing.
Interpretation

The above data shows that the reasons for investing through wealth
management is 51.4% of lack of knowledge , 25.7% of not ease of availability
and 22.9% of not interested people.
Interpretation

The above graph shows that how the people check the performance of their
investment through other possible things is 48.6% , through ask any financial
advisor is 28.6%, through update investment details on the third party
websites is 14.3% and through their broker provide the information is 8.6%.
Interpretation

The above graph shows that the features which are useful to the people form
PWMF. For 26.5% of the people ease of purchase is very useful, for 20.6% of
the people portfolio monitoring is useful, 17.6% of the people personalized
research is useful & 14.7% of the people believes in other useful things.
 QUESTIONNAIRE

Ques-1 In which sector you are employed?

a) Govt sector
b) Private sector
c) House maker
d) Business
e) Others

Ques- 2Annual Income?

a) Up to 200,000
b) 200,000 – 500,000
c) 500,000 – 10,00,000
d) Above 10,00,000

Ques-3Have you invested in any of the following in the 12 months?

a) Equity
b) Mutual fund
c) Insurance
d) Debentures
e) PPF
f) Others
Ques-4 Were you aware that you can invest in wealth management tool
through private wealth management firms?

a) Yes
b) No
Ques-5 Which of the following online transaction you done in the past ?
 a) Buy movie tickets online
b) Book flight/train tickets
c) Book hotel rooms
d) Use net banking
e) Not doing any online transaction
Ques-6 What is your preferred mode of investment?

a) Online
b) Offline
c) NA
Ques-7 Which of the following mode of communication is suitable for you to
intract with advisor ?

a) Online screen sharing

b) Video (Webcam )
c) Mobile texting
d) Others

Ques- 8 What percent of income you invest(save)?

a) Less than 5%
b) 5%- 15%
c) 15%- 25%
d) 25%-30%
e) More than 30%

Ques-9 How would you prefer to make your investment?

a) Through Domestic broker
b) Through Banks
c) Through WEALTH MANAGEMENT SPECIALIST
d) Through direct
e) Not investing
Ques-10 What are the reasons for not investing through private wealth
management firms?

a) Need more easy available assistance

b) Need more knowledge
 c) Not interested to invest by private wealth management
Ques-11 How do you check the performance of any of your investment ?

a) Update investment details on the third party websites

b) Ask any financial advisor
c) My broker provide me the information
d) Other
Ques-12 If you invest through PWMF then which is been provided to you?

a) Capital gain statement

b) Portfolio monitering
c) Ease of purchase
d) Personalised research
e) Other
 Findings

1) Maximum no. of investors are investing in equity and insurance only

some people invest in other type of wealth management tool ad 17%
people even don’t invest their fund by any mode of investment
awareness of available financial products is low in the segment
population.
2) Though almost all PWMF provides online mode of transaction but still
some people do not use online mode either they are not comfortable
with online mode or they feel insecure.
3) The HNWIs who lives in metro cities are largely served by WEALTH
MANAGEMENT SPECIALIST , whose reach is limited to metro areas. It is
estimated that about maximum no of HNWIs population lives outside
major metros and is still served by unorganized players.
4) 34% people do not invest there could be two main reason either they
are not aware from wealth management practices of advisors with a
short- term view and the lack of a strong investor protection
environment- have contributed to investor insecurity. This is the primary
reason for Indian investors taking a myopic view towards investments.
5) Clients desire personal consultations , assistance and knowledge for
more complex wealth management decisions, but they also expect these
interactions to occur whenever and wherever they want.

6) Over 70% of Indian HNWIs are under 50 years of age, with s majority
between 31-50 years. As more and more high-net-worth individuals are
motivated to use technology and emerging channels to manage their
wealth, the industry is moving toward 24/7 multichannel, digital
environment dictated by clients- especially for standard and services.
7) Investors are joining peer-to-peer networks and other virtual
communities to benchmark their own results and make investment
decisions. Some platforms leverage social media by allowing participants
to “follow” successful portfolio managers and replicate their portfolio
and trades.
 CONCLUSION
Despite the trials of the last few years and the challenges that lies ahead,
wealth management is an attractive growth industry for the long term with
return on equity superior to that of any other financial- services segment. As
noted earlier, the number of HNWIs is growing two to three times faster than
GDP growth in many regions of the world, that plus the continued strong
economic activity in the world’s most robust emerging marets, bodies well for
the industry.

Yet this positive outlook does not make the industry’s transition any easier to
manage today. Given the regulatory load, changing client behavior, and new
competitors enabled by digitization, the cost of doing business have never
been higher and earnings are under intense pressure. However, we believe
that by focusing on the priorities set forth in this paper- apply a capabilities
lens, rethink the value proposition, go digital, and apply a fit for growth
approach – wealth managers can navigate the industry’s transformation and
capitalize on the continuing global recovery in 2014 and 2015.

The wealth management industry in india is poised for significant expansion ,

given the favorable growth opportunities which will drive rapid market
expansion, coupled with an increase in the number of industry participants.

To successfully tap into this potential, financial services organizations must

undertake a customized approach, taking into account the specific attributes of
the Indian market. This will need to be supported by a robust and cost-
effective business model focused on improved trans- patency and compliance,
synergistic partnerships and efficient technology solution.
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