Summer training report submitted towards the partial fulfillment of

Post Graduate Diploma in Management

Wealth Management and Investment Patterns

UNDER
SPA CAPITAL SERVICES LTD.

Submitted By: Kamla kumari Submitted to

Roll No. 6791 Mrs. Mamta shah
Batch-2014-2016 Project Guide

GURU NANAK INSTITUTE OF

MANAGEMENT

AICTE APPROVED, MINISTRY OF HRD, GOVT OF INDIA

ROAD NO. 75, PUNJABI BAGH, New Delhi

1
 DECLARATION

I hereby declare that the enclosed research project entitled WEALTH

MANAGEMENT & INVESTMENT PATTERNS is an authentic work done by me
and is based upon my own efforts.

The project was undertaken as a part of Post Graduation Diploma in Management

Program of Guru Nanak Institute of Management, New Delhi.

(Kamla Kumari)

2
 ACKNOWLEDGEMENT

I also take this opportunity to thank my faculty guide Mrs. Mamta Shah, Faculty, GNIM.
The sincerity, dedication and interest that she showed in my study was very encouraging
and of extreme value. I am very grateful to her for the pains she took to support this study
by giving me valuable insights and reference material.

I wish to express my heartfelt gratitude to all the faculty and staff members who have
been associated with this study in many small and big ways.

I also wish to express my gratitude to the esteemed respondents of my research for their
co-operation and support.

Last but not the least; I thank my worthy friends and family members who have
constantly been encouraging and supporting me through out the various stages of this
study.

Kamla Kumari

3
 TABLE OF CONTENTS

Chapter No Subject Page No

About the Company
Ch. 1 Executive Summary 3
Ch. 2 Research Methodology 12
Objective 12
Research Design 13
Source 13
Limitations 13
Scope of the study 13
Ch. 3 Critical Review Of Literature 14
Ch. 4 Wealth Management 19
4.1 Drivers of Indian Wealth 25
4.1 Asset Allocation Strategies 25
4.2 Wealth Management The Road Ahead 31
4.3 Competitors Analysis 35
Ch 5 Investments 45
5.1 Types of Investments 51
5.2 Planning Techniques 68
5.3 Investment Pitfalls 70
5.4 Asset Allocation 72
5.5 Secret of Wealth. 75
Ch 6 Recommendations 76
6.1 References 79

4
ABOUT THE COMPANY

SPA Group was promoted by a team of finance professionals in 1995 with an objective
toprovide value added financial services. Initially, the Group focused as a niche financial
solutions provider in corporate finance and wealth management to Indian companies and
high net worth individuals. In January 2000, the Group expanded its operations and the
range of services. Today, SPA provides services for securities broking, merchant banking,
wealth management, financial advisory, corporate finance, risk management and
insurance broking.SPA is being managed by its promoters along with a young and
dynamic team of over 1000+ professionals with rich experience, in their respective fields.
The Group has established itself as one of Indias leading financial advisory house,
offering various financial solutions to
its Institutional, corporate and
individual clients. Customer centric
approach of SPAs dedicated
professional team has helped carve a
niche for itself in financial services
arena and won confidence of its
clients. Clients of SPA are from a
wide spectrum and comprise of Banks and other financial institutions, Mutual funds,
Insurance companies, foreign institutional investors, public sector undertakings and
government departments, private corporate, trusts and individuals.

Head Office: New Delhi

25, C-Block Community Centre, Janak Puri
New Delhi - 110 058
Ph - 011-25517371 / 25515086 Fax - 011-25532644
E-mail - info@spacapital.com

5
COMPANY PROFILE

Established in 1995, SPA Group is a long standing and fast growing integrated financial
services group, providing a large range of services to a varied set of customers that
include large corporations, high net-worth individuals, financial institutions and retail
investors. Our service offerings include merchant banking, securities broking, asset
management, mutual funds, insurance, fixed deposits, government securities and bonds.
Though each of these business entities exists independently, they reflect the group's core
ethos and values that are centered on creating value through customers centric approach.
SPA Group's customer-centric approach, backed by strong research and passion to excel
has helped us achieve a significant position in the Indian financial services sector. More
than 1000 highly skilled professionals are continuously and consistently working towards
enhancing the value and wealth of our customers, even as we continue to win many
awards and accolades for our innovative services and solutions.

6
MANAGEMENT TEAM

The Core management team of SPA consists of persons having a rich experience in
Corporate Finance and Advisory, Investment Banking, Risk Management, Securities
Banking and Wealth Management.

Mr. Sanjay Joon, President

MBA, having more than 24 years of experience in marketing of financial products and
has a vast experience in information technology and administration. His forte lies in his
abilities of accurately assessing his customers need, meeting them and leading an ever
team. He heads Mutual Fund Division of the Group since its inception.

Mr. Sanjay Gupta, Associate Director (Investment Banking)

B.Com (H), Chartered Accountant, Fellow Member of The Institute of

Chartered Accountants of India Has close to 20 years of work experience in
the field of investment and merchant banking, Fixed Income Securities,
Project Financing, Structured & Corporate Finance.

Mr. V K Khattar, Principal Officer

He has to his credit 42 years of rich experience of working with Oriental Insurance
Company Limited and retired as the Regional Manager. He is associated with our Group
as the Principal Officer of the Insurance arm.

Mr. Vivek Gautam, Associate Director

He is having 30 years of experience in the field of Banking & Merchant Banking

including 16 years of exclusive experience in Investment Banking. He has worked for 14
years in PNB till mid 1991 in Managerial positions. Thereafter he was deputed to PNB
Capital Services Limited as Senior Vice President and worked as Head Merchant
Banking during 1991 - 1996 and was associated in lead managing more than 60 public

7
and rights issues for well known Corporate and Financial Institutions. He was also Head
Investment Department dealing in securities for one year. Thereafter he worked as
Director - Bajaj Capital Limited and President Merchant Banking for 7 years and also as
Head Merchant Banking and Executive Director with Allianz Securities Limited for 1
year. He has wide experience in issue management, private placement of equity and debt,
corporate advisory & finance, mergers & takeovers & distribution of financial products.
He is with SPA Group since October 2006 and looking after Merchant Banking.

GROUP COMPANIES

SPA Group of companies is the flagship Company of the Group and is engaged in
providing Wealth Management and Financial
Advisory services to institutions, corporates, and
individuals since 1995. The Company is a
leading distributor of Mutual Funds in the
country and presently has assets over 4500 crores
under its management. The Company has
successfully positioned itself as a strategic
advisor to its customers for wealth management
with its customer centric approach and innovative solutions.

The Company is registered with Reserve Bank of India as a Non Banking Financial
Company. Presently the shares of the Company are listed on the Delhi Stock Exchange.

1) SPA CAPITAL SERVICES LTD.

SPA Capital Services Limited is the flagship Company of the Group and is
engaged in providing Wealth Management and Financial Advisory services to
institutions, corporates, and individuals since 1995. The Company is a leading
distributor of Mutual Funds in the country and presently has assets over
Rs.14, 000crores under its management. The Company has successfully

8
positioned itself as a strategic advisor to its customers for wealth management
with its customer centric
approach and innovative
solutions.

The Company is registered

with Reserve Bank of India
as a Non Banking Financial
Company. Presently the shares of the Company are listed on the Delhi Stock
Exchange.

2) SPA MERCHANT BANKERS LTD.

SPA Merchant Bankers Limited offers comprehensive investment banking

solutions and highest quality independent financial advice to corporates
sector and entrepreneurs. Our service offering covers private placement of
debt instruments and debt syndication for both public and private sector
corporates, Capital raising services through private placement of equity,
managing capital issues (IPO, FPO and Right Issues). Besides, we also cater
to the entire spectrum of capital market needs through other services such
as Corporate and Infrastructure advisory, Valuations, Managing Takeovers,
Buy Back and Delisting. We have team comprising of multi-disciplinary
professionals with a vast financial advisory and investment banking
experience, who structure various financial products as per the requirements
of the clients.

We have the Category I Merchant Banking license from Securities and

Exchange Board of India (SEBI), the Indian Securities Market Regulator.

The Company has made notable and considerable progress in a short span in
the debt merchant banking activities successful various debt primary issues.
This is also reflected through the ranking by Prime Database, which has

9
 ranked the Group amongst the top 10 service providers in this segment. The
Company was able to achieve above ranks on the basis of its performance in
just two financial years since it commenced investment & merchant banking
activities.

Since the commencement of merchant banking services, the Company has

syndicated funds for various Public Sector Undertakings (PSUs),
Designated Financial Institutions(DFIs), Banks and several State Level
Undertakings (SLUs).

The Company for its Merchant & Investment Banking activities has found
patronage as an Arranger with various central public sector undertakings
like HUDCO, NTC, ITI, MECON, IISCO SAIL, REC, KRCL, public sector
banks and financial institutions. Also the Company has had privilege to
provide its services to various state level undertakings of Andhra Pradesh,
Karnataka, Kerela, Tamil Nadu, West Bengal, Punjab, Haryana, Himachal
Pradesh, Jammu & Kashmir, Maharashtra, Gujarat and Rajasthan. In the
private sector, the Company has provided its services to various domestic
and MNC corporates.

The achievements corroborate our untiring and sincere efforts towards

building and preserving mutually rewarding and sustainable relationships
with our clients and giving them our value added services with meaningful
performance.

We have started providing equity capital market related services in the

beginning of 2007 and advise Corporates, Banks and Businesses which are
seeking to mobilize capital from Investor. We offer following opportunities
to clients to raise funds through the following:
Private Equity Advisory
Initial Public Offering (IPOs)
Follow on Public Offering (FPOs)

10
 Qualified Institutional Placements (QIPs)
Right Issues
Preferential Allotments and
Foreign Currency convertible
bonds (FCCBs).

Our team as Lead Manager/ BRLM has

successfully managed/ are managing
transactions for client across various
industry sectors including:
i. Information technology
ii. Telecommunication
iii. Infrastructure
iv. Power equipments
v. Steel
vi. Sugar
vii. Textiles

We, for execution of a transaction, combine our various strengths including

in depth knowledge of regulatory environment, understanding of industry and
market dynamics, distribution capabilities and networking with institution
investors of our associate concerns. We built our business on strong
relationships, innovative ideas and ethical standards.

3) SPA SECURITIES LTD.

SPA Securities Limited is a SEBI registered securities broking Company. The Company
is a member of Wholesale Debt Market, Capital Market and Futures and Options
Segment of the National Stock Exchange of India Limited. The Company is also a
registered member of the Over the Counter Exchange of India.

11
The Company is focused primarily on
providing securities broking services to
institutional clients and is empanelled as
an approved securities broker with all the
major Nationalized, Private and Co-
operative banks, corporate houses, Insurance Companies, Financial Institutions, Asset
Management Companies and Provident Fund Trusts. The Company had a turnover of Rs.
25000 crores at NSE-WDM for the financial year ended March 2005.

Equity broking for institutions was commenced in 2004 end. In its first full year of the
operations, the Company achieved a turnover of over Rs.1500 crores in calendar year
2005.

4) SPA INSURANCE BROKING SERVICES LIMITED

SPA Insurance Broking Services Limited is the arm of the SPA Group providing entire
range of insurance service in insurance right
from meeting insurance need of clients to
cover its risk spectrum, advisory, claim
settlement and also meet requirement of
clients if they wish to outsource entire gamut
of insurances related functions. The Company
is registered with Insurance Regulatory
Development Authority as approved Broker.
The Company is empanelled with almost all the life and general insurance companies as a
Direct Broker. The Company is functioning as life and general insurance direct broker
and risk assessors.

5)SPA COM TRADE LTD.

SPA Com trade Pvt. Ltd., the commodities broking arm of the group has
recently commenced operations. The company is catering to existing

12
customers of the group by providing research based commodity broking
services.

SPAS SERVICES

1. MUTUAL FUND

The SPA Group, on strength of its research based customer centric approach
and impeccable
servicing, is
recognized as one
of the leading
financial advisory
service providers
in the country.

2. INSURANCE

SPA Insurance Broking Services Ltd is the insurance broking company of the
group providing life and general insurance advisory services.

Life Insurance advisory services are process oriented, which include

identification of the needs of the clients, offering the best product available,
resolution of their queries and post sales service. The company has covered
over 2000 lives in 18 months of business with sum assured of over Rs. 20
billion and premium collection of over Rs.3.5 billion.

In General Insurance we believe in servicing clients after assessment of their need and
the risk involved and cover required and offer the best insurance cover available in the
market supported by strong after sales services to the clients. The Company is
empanelled with all the general insurance companies operating in the Country enabling

13
it to provide best insurance solutions suitable for the clients. The company has provided
insurance coverage across assets classes of over Rs. 200 billion with impeccable claims
and other after sales services.

3. EQUITY AND DERIVATIVES

Equity Broking

The Company is engaged in equity research and broking for its institutional
clients. On strength of its research and impeccable servicing the Company in
its first year of operation in equity broking is empanelled with all the major
domestic institutional players and has achieved a turnover of over Rs. 1,600
crores.
Commoditi es Broking

SPA Com trade Pvt. Ltd., the commodities broking arm of the group has
recently commenced operations. The company is catering to existing
customers of the group by providing research based commodity broking
services.

4. FINANCIAL PLANNING

Even though one of the most significant factors in our life is the state of our
personal finances, we rarely spend time on managing them since unlike
businesses; we are not accountable to any one for our personal financial goals
and results.

14
 We can make a much larger contribution in every area of our life when our
personal finances, investments and taxation are properly planned.

The Fundamental corner stones of successful investing

Save regularly, invest regularly

Start early
Use tax shelter
Investment returns should exceed the inflation.

5. MERCHANT
BANKING

SPA Merchant
Bankers Limited is
engaged in private
placement of debt instruments, structuring of the various financial products as
per the requirements of the borrowers along with various other pre-issue and
post issue services.

The Company has made notable and considerable progress in a short span in
the debt-oriented merchant banking activities by successful placement of
various debt primary issues. This is also reflected through the ranking by
Prime Database, which has ranked the Group amongst the top 10 service
providers in this segment. The Company was able to achieve above ranks on
the basis of its
performance in just two
financial years since it
commenced investment &
merchant banking
activities.

15
Since the commencement of merchant banking services, the Company has
syndicated funds for various Public Sector Undertakings (PSUs), Designated
Financial Institutions(DFIs), Banks and several State Level Undertakings
(SLUs).

The Company for its Merchant & Investment Banking activities has found
patronage as an Arranger with various central public sector undertakings like
HUDCO, NTC, ITI, MECON, IISCO SAIL, REC, KRCL, public sector banks
and financial institutions. Also the Company has had privilege to provide its
services to various state level undertakings of Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu, West Bengal, Punjab, Haryana, Himachal Pradesh, Jammu
& Kashmir, Maharashtra, Gujarat and Rajasthan. In the private sector, the
Company has provided its services to various domestic and MNC corporate.

The achievements corroborate our untiring and sincere efforts towards

building and preserving mutually rewarding and sustainable relationships with
our clients and giving them our value added services with meaningful
performance.

Now, the Company has started providing Equity Oriented Merchant banking
services to its customers on strength of its research based structuring
capabilities and strong distribution network. Presently, the Company is
providing services for private placement of equities, public issues and right
issues.

6. SPECIAL TECHNICAL REPORTS

16
Research, undertaken on a continuing basis, forms foundation for all services
provided by them. At SPA we have
focused on building a strong research
team which functions with an
exhaustive approach to understand and
analyze underlying market dynamics
for equities, fixed income, and mutual
funds.

VISION

SPA believes in attaining customer satisfaction, on continuing basis, by providing highest

standard of financial services in India. The philosophy at SPA is to provide services to
clients after assessment of their profile, needs and risk-appetite. The basic work theme at
SPA is:

- Dedicated, competent and honest team of professionals

- Customer centric work environment

- Insight of customers perspectives

- Strong research base

- Clear understanding of applicable laws

- Consistency and
passion to excel

- Technology
savvy

17
18
 Chapter 1 - Executive Summary

Wealth Management

Wealth management is the coordination of a clients investment, tax and estate

plans into a comprehensive plan to achieve their personal goals. The rapid
growth in the affluent market combined with the investors' desire to work with
professional financial advisors has presented a major opportunity to the wealth
management industry.

Effective Customer Relationship Management propositions to win and retain

clients, alternative investments for super affluent and ultra affluent clients,
efficient tax planning are some of the critical and key drivers in this industry.

Wealth management is a term that originated in the 1990s in the United States
within Broker Dealers, Banks, and Insurance Companies. Wealth management
has generally evolved from high net worth financial consulting for persons who
are top clients of any firm.

Wealth management is classified as an advanced type of financial planning that

provides individuals and families with private banking, estate planning, asset
management, legal service resources, trust management, investment
management, taxation advice, and portfolio management. Thus, wealth
management encompasses asset management, client advisory services, and the
distribution of investment products.

Persons engaged in wealth management usually work for brokerage firms, large
banks, trust departments, or investment and portfolio management firms.
Wealth management is a high level form of private banking that provides
various types of investment, insurance and bank products and services.

19
Importance of Wealth Management

A financially secure future requires your wealth to grow and be preserved. It is

precisely this requirement that private banks aim to fulfill through their wealth
management services. The demand for such specialized services is more
pronounced in the recent past as individual income and wealth levels across the
country have significantly scaled up.

Most private banks offer basic investment advisory services under the umbrella
of their private or priority banking services. Banks may offer complimentary
financial planning services to help you know exactly what to do with your
money so that you realize your financial objectives.

Banks may organize investor meets; circulate market information reports and
more under their private banking arm. Wealth management services may also
include estate planning, tax and legal consultancy, custodial services and more.

Banks either has in-house teams specializing in wealth management services and
advisory services on various investment options or have tie-ups with
independent specialized firms offering advise on specific investment options.

For instance, Kotak Bank has a tie-up with its associate company Kotak Securities
Ltd for equity research and portfolio management services. ABN Amro Bank
(India) has a tie-up with Saffronart.com to advise their clients on investments in
art. The clients may choose to execute the transactions with these firms
independently.

The threshold limit to be the privileged private banking customer differs across
banks. At UTI Bank you will be eligible for their private banking services (which
includes the complimentary financial planning services) if you either have a
minimum Average Quarterly Balance (AQB) of Rs.1 lakh in a savings account or

20
a minimum relationship of Rs.5 lakhs (AQB) in savings and term deposit
accounts.

Banks offer niche wealth management programmes under their private banking
services to customers with predefined limits of portfolio sizes. Wealth
management services include risk assessment and asset allocation advice tailor-
made to individual needs. Long-term goals and objectives are discussed and a
careful provision is made to help you preserve and grow your wealth.

The Growth

Many families in India are looking to have someone who they see as being on
their side and between them and the banks, however, much the banks want to be
seen to the contrary, says a wealth management consultant, who works at the
newly opened HSBC office at Punjagutta, Hyderabad.

Not too long ago looking after rich peoples money was not seen as a particularly
exciting business. Private banks were independent, discreet and maintained
offices in Switzerland or the Channel islands, where the worlds rich could store
their wealth from fear of scrutiny or interference. Merrill Lynch estimates that
the inventible assets of people around the world with more than $1m to invest
will grow 6.5% annually in the five years to 09.

The picture is changing. Demand for private banking services is escalating as a

result of an explosion of private wealth in India. People, who in the past
entrusted their savings to their retail banks or dabbled in the stock market, are
now seeking professional advice. People who relied on private banks are
becoming impatient for better performance.

Indeed, private banking or wealth management as it is now increasingly called is

now seen as a growth business. The projected growth in the number of clients

21
and the size of their assets suggests that the private banking industry will have to
take on large numbers of new people capable of advising clients on what to do
with their money. HSBC is investing heavily in an attempt to build private
banking platforms in Asia.

One of the biggest questions that will face the private banking industry in the
coming years is where all the extra people will come from. The pressure for new
staff seems likely to spark a war for talent, especially in regions such as Asia and
the Middle East, where there are relatively few established private bankers on
the ground. Credit Suisse has set up a training school in Singapore to help build
up its workforce in Asia where demand is greatest.

The focus is for staff to understand how to develop a trusted-adviser relationship

with a client rather than that of a salesman. Private banking is also drawing in
employees from other industries.

A particularly fruitful area for recruiting has been investment banking and stock
broking, though some executives also report successful hiring sprees among
lawyers and sales staff from other industries.

This is one sector where globalisation is difficult as there are strong national
differences between clients. What an Indian wants from his or her private bank is
still very different from what a Frenchman or an Englishman wants. Cultural
affinity is important in establishing a relationship of trust. Given that
relationship managers often take a significant number of clients with them if they
switch their employer, continuity is very important.

As private banks chase around for new recruits, they need to be careful not to
overload their cost bases. Several observers have expressed concern that the
hiring spree, particularly in India, is prompting banks to take on excessive costs
that could leave them vulnerable if there is a downturn in the market.

22
Though the figures vary, most private banking executives work on the
assumption that about half of their cost base is accounted for by relationship
managers, whose numbers expand and contract in relation to the number of
clients. The other 50% is back office costs such as information technology, which
should remain relatively stable as the business grows although adapting
products for different tax systems or regulatory regimes can quickly add to the
overall expense of the business.

In Asia, salaries and bonuses for private bankers have boomed in recent years
and they look set to carry on increasing as demand for their services intensifies.
In the longer term, however, the projected growth looks set to create a challenge
for the industry as it attempts to develop a new breed of relationship managers
who understand the broad range of products available on the market but are also
capable of winning their clients trust.

As Indias economic engine moves on to a faster track, the hitherto sidelined

discipline of personal financial planning is taking center stage. The process by
which financial planning is organized for an individual in a complex and
often unpredictable financial environment for the layperson is now being
managed by a new breed of financial planners.

The HNWIs Taste

The HSBC Asset Management and Merrill Lynch World Wealth Report 2006
identifies India as a robust economy, with High Net Worth Individuals (HNWIs)
growing at the rate of 19 per cent in the year 2005. This is against 7.3 per cent in
the Asia-Pacific region and 6.5 per cent worldwide. Indias HNWI population as
of today is 1,00,000 and growing. Is wealth management keeping pace with this
development?

23
HNWIs are individuals with financial assets of $1 million, excluding their
primary residence. The number of HNWIs in the world and the Asia-Pacific
region, respectively, in 2005 was 6.5 million and 2.4 million. The expansion of
HNWI assets has created a super class of HNWIs, known as ultra-high net worth
individuals (UHNWIs).

Merrill Lynch defines the threshold of wealth required to be considered as

UHNWI as $30 million in liquid financial assets. The report states that of 15,600
UHNWIs in the Asia-Pacific region, 5.5 per cent are Indians and of the 2.4 million
HNWIs in the region, 3.5 per cent are Indians. More Indians are getting rich than
anyone else in the Asia-Pacific.

Should this satisfy me, if I were an HNWI? There is someone making a report on
my wealth, I am a priority customer with XYZ Securities and ABC Bank, my
chartered accountant is smart and makes the right tax decisions. My wealth is all
set to grow. Is that wealth management?

Wealth management implies managing the total wealth of an individual keeping

in mind his special needs. This should ideally involve estate planning, retirement
planning, loan planning, insurance planning, education planning and lifestyle
planning. A part of wealth management also ensures that future generations
benefit.

At present, there are no inheritance laws in India. We understand that whatever

belonged to the father belongs to the son and the state has no say. In times to
come, this will change. India will move towards inheritance laws, just as in the
West where the son has to pay taxes when he inherits wealth beyond a certain
limit. Each time the father wants to give a part of his estate to his children, he has
to pay taxes or engage in philanthropic activity. The best example is Bill Gates

24
wealth management and the foundations he supports, so that his wards can
benefit.

With respect to wealth management, India and China are one of the least mature
markets in the Asia-Pacific region. Japan, Singapore and Hong Kong lead the
race as the most mature markets, followed by Taiwan, Indonesia and South
Korea. The Indian financial sector still offers mostly vanilla products as
investment options.

Wealth management in India still means maintaining a debt-equity ratio of the

investments as explained by the relationship manager. To keep this ratio, one has
to either invest in a balanced MF scheme, GOI bonds or directly in equity. As the
value of the portfolio grows, so do ones desires. With desires come loans.

The need for life insurance starts to rise and the relationship manager somehow
comes up with the best scheme that one can buy. Child education planning is
always done by capitalizing on parents guilt. Finally, an HNWI ends up taking
all products a relationship manager can offer. A bull run is on and everything
seems headed skyward. But what is the net effect on wealth? No one has a clue,
not even the CA, for he is equipped only to handle tax-solving queries. HNWIs
are still unaware of alternative investments, such as hedge funds, property and
real estate, foreign exchange linked notes, precious metal-linked notes, or for that
matter, art. Investments will all seem to be doing well as long as the bull run
lasts. The fall will separate boys from men.

That is when everyone will become painfully aware of whether risk had been
factored in or not. Recognizing this situation, a financial planning board has been
set up, in tune with financial planning boards worldwide. With the opening up
of Indian banks to foreign banks in 2009, wealth management will become more
structured.

25
It is still sometime before we get to see dedicated financial planning firms, which
manage wealth of the individual along with his bankers and consultants. Though
most financial firms advertise themselves as one-stop shops, where every
possible investment can be done, there is a lack of trained consultants who know
how to put it together for an HNWI. At present, consultants sell what the
company has asked them to. Wealth management or private banking will have
truly set in when the consultant becomes an independent entity.

26
 Chapter 2 - Research Methodology

Objectives of the Project

To study the growth of wealth management in INDIA

The project will throw light on the various factors leading to the growth of
high net worth individuals (HNWIs) and the bright future of wealth
management although the wealth management business in India is still in the
nascent stage.

To clarify the processes followed and the different parameters considered

while providing investment advice to the clients under wealth
management.

Designing a client specific financial plan, this includes goal setting,

identification of financial issues, and preparation of alternatives,
recommendations, and implementation and periodic reviews and revision of
the clients plan. The project will explain the various steps in financial
planning and best practices in wealth management services based on the risk
tolerance, personal values and economic factors.

To give information about the leading players and various products

offered by them in the wealth management service

The project will provide the detail information about the services offered by
the top Four banks, which are Standard Chartered Bank ,BNP Paribas, DBS
Cholamandalam Bank and Citibank in wealth management business. The
project will also include the comparative analysis of the services offered by
these banks.

27
Research design
Descriptive method is used in the research. A sufficient thought has been given
in framing the questionnaire and deciding the types of data to be collected and
the procedure to be used.

Sources of data
Secondary data:
Some published information in books, articles and pamphlets of & Website of Banking
firms has been used to support the study.

LIMITATIONS OF THE STUDY

The sampling plan was based on non-probability method and no scientific

methods were adopted.
The sample size is not sufficient to represent the whole population.

Due to time constraint the survey has been done on the basis of convenience.

Scope of the Study

The scope of this project report is restricted to the Banking group and the
Brokerage firms offering Wealth Management Service or in the process to
implement Wealth Management or in the process to implement Wealth
Management service.

28
 Chapter 3 - Literature Review

The project started with the study of investment and mutual funds.

With reference to the research paper in Journal of Economics Psychology,

Aug2006, it analyzed Does the framing of investment portfolios influence
Risk-taking behavior?

It examined the influence of the framing of investment portfolios on the risk-

taking behavior of individual investors. Investment portfolios can be presented
either in aggregated or segregated framing, meaning that either the overall
distribution or the single investments of portfolios are displayed. Previous
studies have found that simple lottery portfolios are more attractive if their
overall distribution is displayed instead of the set of lotteries themselves.

Investment portfolios differ from simple lottery portfolios because they are
correlated and ambiguous. Which kind of investment portfolio framing leads to a
higher acceptance by individual investors? Three experiments found that
ambiguity and correlation of investment portfolios affect the extent of the
framing effect. Framing effects are present under ambiguous risk and for
positively-correlated portfolios. Furthermore, framing effects are observed
mainly for individuals who decide intuitively rather than analytically.
[Copyright 2006 Elsevier]

In second paper the main objective was to look that Does financial
liberalization improve the allocation of investment? Micro-evidence from
developing countries.

29
The results presented in this paper provide empirical support for the idea that
financial liberalization has lead to an improvement in the efficiency with which
investment funds have been allocated.( Copyright 2007 Elsevier)

Qualitative conclusions on the positive effect of financial liberalization on the

efficiency of resource allocation continue to hold when we modify the definition of
the benchmark economy to one based on the pre-liberalization pattern of
investment.

The conclusions based on the aggregate index are also supported by the evidence
of a stronger association between investments and return opportunities in the
post-liberalization period, based on estimating a simple investment equation on
firm level micro-data. Investment is one of the crucial decisions for each investor,
whether to invest huge funds or small amount, each investor wants the profitable
returns.

For this a proper portfolio is to be made, so as to avoid the losses and earn
maximum out of what you as an investor wants to invest. Investment is one of the
major crucial steps before investing and even for proper evaluation of the invested
funds.

With the research paper on Modeling international investment decisions for

financial holding companies
This research analyzes the internationalization process model developed by
Johanson and Vahlne and derives two integer programming investment decision
models that consider the risk attitudes of investment firms.

30
Johanson and Vahlnes model provides a starting point for building a model that
suits the investment approach and decision making process of financial holding
companies.

In practice, when firms make an international investment decision, there is a

need for a model that can generate outputs based on financial measures such as
profit, investment returns, and tolerable levels of risk. Thus, in this paper,
Johanson and Vahlnes concepts are studied and financial managers are
interviewed to derive models that match the investment decision procedures of
the firms. The model helps firms manage the risks of their investments and
derive accurate investment strategies based on investment objectives and
constraints. [Copyright 2007 Elsevier]

With reference to an article in Portfolio organizer (ICFAI University Journal) of

Dec, 2006, it explains that as the investors are becoming aware with the passage
of time, their financial needs need to be addressed and they want different
products to invest in to earn more as per their requirements.

There is a huge potential that is still to be realized by the mutual fund industry
by getting share of the investments in traditional avenues.Though India enjoys a
good saving rate, the mutual fund industry gets a little portion out of this. If this
money gets channelized into mutual funds it will help India match other well-
developed markets like the US, CANADA as per one the studies conducted by
leading financial daily. The biggest impediment in the growth of the industry has
been failure on its part to attract majority of the savings that people keeps in the
banks, by thinking it to be risk free.

31
After going through number of articles in different journals and newspapers
based on mutual fund, we can say that Mutual Fund industry have shown a
dramatically progress.

MF company provides with a large number of schemes that suits to a large

number of investors. After the entry of private sector in this field, the
competition within the MF companies has also increased, which directly or
indirectly benefits the investors

With reference to the article Investment Strategy for the long-term investors
by Nobel Prize winner William F Sharpe. (Year 2004)

Investment is about risk and expected return. Efficient strategies provide highest
possible expected return for a given level of risk. The key role of financial advisor
is to avoid inefficient strategies. Though expected return and risk are typically
measured using short-horizen, but most of the investors are concerned with
long-term outcomes. The best way to manage this is Portfolio theories.

An investment is subject to risks associated with changes in currency values,

economic, political and social conditions, and the regulatory environment of the
foreign country as well as the difficulties of receiving current and accurate
information. With reference to the book Investment Analysis and Portfolio
Management second edition by Prasanna Chandra

The public sector companies are not free to invest in mutual fund as they are
under the government control to invest in government securities.

They have to invest a fix amount of money in the government securities. Before
investment, investor need to be well aware of the risk related to the particular

32
 option. Now a day, it is becoming very crucial for the companies to manage their
portfolios, for these they are spending lot of money to implement the software
that would help in proper management of their portfolios.

As in case of Satyam, with reference to the case study (Next-gen portfolio

management they have introduced Checkfree EPL (Enhanced Portfolio
Lifecycle) portfolio management product.

It helped in reducing the cost of maintaining the accounts. This product is

developed by checkFree Investment Services(CIS) division, which provides
services to the financial organizations.There is large number of software
available, which are proved to be beneficial in managing the overall portfolios of
mutual funds.
For example
(i)INVESTRAK supports all Mutual Fund transaction processing requirements
including advanced options for entry of transactions on deferred posting basis,
selective posting of Funds / Transactions within a batch, handling transaction
currency different from Fund and Shareholder currency etc.

INVESTRAK is designed to support all Fund features, Brokerage structures,

Valuation methods and Pricing policies prevalent internationally.
(ii) E Fund Distributor is a browser based software application intended for use
by Distributors of Mutual Funds and other primary market financial products.
The software, by virtue of being browser based, allows Distributors, their sub
brokers and their investors access through the Internet. The software has full-
fledged Front Office Sales capability, Back Office Computing ability and an
exhaustive Reporting Feature.
(iii) MFISC/D is a Front Office Software System enabling Fund Distributors to
maintain the Client's Investment details. Distributors can keep track of the Net

33
Asset Value of the Fund as well as the performance of their Clients. Reports
relating to Clients and their investment advisors can also be generated.
Source: - www.acsysindia.com
ABC Bank in Luxemburg, having presence in distribution of financial products
and mutual funds had implemented the software (DISTRAK and AIS), which
improved the overall efficiency in managing the portfolios and other accounts.

An investor doesnt investment the money without proper planning and a right
kind of approach can only leads to the profit in the investment option. As said by
William F Sharpe:

Investment Strategy is one of the key pillars of a financial plan that allows
investors to efficiently pursue their goals

Chapter 4 Wealth Management

34
The definition of wealth remains, as always, the means by which we fulfill our
desires. As the saying goes, you are wealthy if you want no more than what you
have. In economic terms, this translates into material possession and the means
to attain them. In social and political terms, it translates in to greater freedoms,
and the means to attain them. To fare well, we need a new mindset for the way
we work and earn; spend and save; plan our mortgages, taxes and investments.
Wealth has a life cycle: it is created and accumulated; then it is distributed,
whether through taxations, dividends, or inheritance.

The real economy creates wealth by producing goods and services while the
individuals build wealth by building their net worth- by bearing risks and
investment portfolios. Net worth is the difference between the assets and
liabilities. The net worth is called wealth.

ASSETS - LIABILITIES = NET WORTH

A wealth creating asset is a possession that generally increases in value or

provides a return, such as:

A retirement plan.
Stocks and bonds
A house

A liability, also called debt, is money which we owe, such as:

A home mortgage

Credit card balances

A car loan

35
 Hospital and other medical bills

Student loans.

BANKING

LIABILITIES
ASSETS

PRIVATE BANKING
CORPORATE BANKING
WEALTH MANAGEMENT
SME BANKING
FINANCIAL PLANNING
FACTORING
ASSET Management.
TRADE SERVICES etc

Building wealth requires having the right information, planning and making a
good choice. Investors today face bewildering choices about what to do about
their money. As market conditions change and new financial products appear
and disappear, making sense of information about effective ways to manage
wealth can be extraordinarily difficult. This is where the process of wealth
management plays a crucial role.

Wealth Management is the integration of financial products and advisory

services to assist consumers with the accumulation, preservation and transfer of

36
wealth, as they move through the various stages of their financial life cycle. It is
best conceptualized as a platform where a number of different sets of services
and products are provided. wealth management includes advice on investment
management, estate planning, retirement, tax, asset protection, cash flow and
debt management.

Wealth managers mostly come across two kinds of clients namely wealth
preservers and wealth creators. Both these types of clients offer different
opportunities for wealth managers.

Wealth Preservers

The wealth preservers are clients who are interested in getting some regular
returns through their current wealth. These clients are very conservative and are
not interested in exposing their wealth to any instrument that may cause Loss.
Essentially wealth preservers would invest in instruments like

Government Bonds
Debt Mutual Funds
Insurance plans.
Their main aim is to protect their wealth from any chances of capital loss.

Wealth Creators
The more exciting and remunerating job for a private banker comes through the
wealth creators, as these clients are interested in their wealth to grow. These are
clients who are wiling to take risk on their capital and have a higher risk appetite
as compared to the wealth preservers. Hence these clients are more interested in
investing in instruments like:

37
Direct Equity
Equity Mutual Funds
Derivatives
Real Estates
Hence, these clients have a higher risk appetite and want to earn higher returns
and create wealth. It is here that a wealth managers skill is really put to test in
trying to earn a higher return with minimum risk

38
 Wealth Management in India

GLOBAL SCENARIO

As compared to the years of 2003 & 2004 which witnessed the total wealth
growth of the high net worth individuals (HNWIs) growing at 2.7% and 7.7%
respectively, the year 2005 proved to be a better one, which witnessed the global
HNWIs financial wealth growing at a rate of 8.2%. After 2005, a year that marked
the strongest economic growth worldwide in 20 years, the growth expected to
tamper in 2007.A combination of factors including rising inflation and interest
rates, is expected to slow global growth and affect the value of financial assets.

DOMINANCE OF THE BRIC NATIONS

Considering the developing nations, Brazil, Russia, India and China have
emerged as strong economic powerhouses contributing more than 40% of the
worlds population and 8% of GDP growth. Going by the Goldman Sachs
prediction, these economies have the potential to overtake the G7 economies by
the year 2040, India and China remained as the major growth drivers among the
BRIC nations.

Survey of the worlds leading wealth managers has predicted Asias top three
wealth markets of China, India and Korea to grow by as much as 17 percent a
year for the next three years.

According to the survey by Barclays Capital, Wealth management firms with

about $3 trillion of assets under management (AUM) predict strong growth in

39
these economies. This will result in the Wealth Management firms holding or
managing an estimated $334 billion of assets for Korean high net worth clients in
three years,$256 billion for Indian clients and $150 billion for Chinese clients. For
the affluent class, China will be the largest market in Asia with an estimated $93
billion, followed by Korea and India with $50 billion each.

INDIAN SCENARIO

The number of high net worth individuals (HNWIs) individuals with a net
worth of at least US$1 million, excluding their primary residence grew by 7.3%
to 8.3 million, a net increase of 600000 worldwide. North America led with a
nearly 10% growth rate to 2.7 million HNWIs, surpassing the 2.6 million in
Europe. Asia-Pacifics growth rate of over 8% -- to 2.3 million HNWIs --- was
twice that of Europe.

The recently released study, world wealth report-2005, by Capgemini and Merrill
Lynch, points that the number of HNWIs in India grew at 14.6%, twice that of the
worlds growth of 7.3% in 2004. The study further states that there are
approximately, 60000 people who have financial assets of Rs 4.5 Cr about a
million dollar and there are 24000 households with annual income of Rs 50 Lakh.
India continued to be one of the high growth areas in 2005-06 as more people
joined the elite list of HNWIs in 2005.

"We work along with customers to offer a range of investment advisory services
in debt, equity, mutual funds, derivatives, besides tax advisory, succession
planning, insurance advisory, etc." -- MR V. MAHADEVAN, CEO, WEALTH
ADVISORS (INDIA) PVT. LTD.

40
Wealth management services have been getting more attention over the last two
years. A booming economy, rising stock prices and an increase in salaries and
spending power has highlighted this sector very well. The wealth management
space was earlier the preserve of some foreign banks which offered these
"exclusive services" to the few selected customers. This was not a service you
could apply for directly as the tagline said "Don't call us. We'll call you (if you are
that wealthy!)."

Today, a number of private banks offer this service. Also entering this arena and
portraying themselves as standalone entities that offer the full range of services
such as investment advice, portfolio management, taxation advice etc.

Wealth management is just emerging in India. The growth of the economy has
already been widely showcased. Wealth and disposable income are growing
substantially. It is being noticed that the ability to earn and save are slightly
different. Earlier people just put money in some guaranteed products. Today,
even the government is withdrawing from those products (it recently stopped
the maturity bonus on post-office savings), investors, whether they be doctors,
architects or anyone else, need professional help.

The main focused market to capture:-

Wealth accrual planning is for everybody. The person who is earning Rs.30, 000
per month also needs this advice. For instance, if there is a 25-year-old guy who
earns this sum, his first priority is to buy a house for, say, around Rs.20 lakh. He
has to now protect this property from, say, flood, cyclone or other natural
disasters. Here is when the wealth mangers show their expertise. There are such
issues, such as protecting your family from medical emergencies. All these come

41
within the scope of wealth management services where one can park their
savings for meeting these future contingencies.

The opportunity in this area is mainly because of two developments. First, there
are more people in employment who are getting stock options and encash it
later.
And, second, the expansion of business and entrepreneurial capacity. These
people generally need wealth management services.

4.1 DRIVERS OF INDIAN WEALTH

Factors leading to the growth of Indian wealth are given below:

Driving the attractiveness of the market has been the countrys

exceptional economic performance over the last decade. The economy has
grown at an average of 7.6% since 1994, due to the continued development
of the service industry and strong growth in the technology sector. The
opportunities that have been created by a booming economy have in turn
driven individual wealth growth.

Economic liberalization is one of the most important factors for the

growth of Indian wealth. For e.g. the Reserve Bank of India (RBI),
investments can be made in overseas instruments without any
quantitative restrictions. More recently, the RBI has introduced a
liberalized remittance scheme under which resident Indians can invest up
to US$25000 per annum in any overseas security. One may see a further
boast in this regard with the Capital Account Convertibility coming in full
circle.

42
 The stability in the market and the low level of interest rates accounted for
the growth of personal wealth in the year 2004-05.

Market capitalization and the rise of the knowledge based economy have
proved to be a boon with an increase in the number of professionals. With
the continuous corporate earnings, the individual disposable incomes are
on the exponential growth. This has resulted in the growing number of
HNWIs in the country.

4.2 ASSET ALLOCATION STRATEGIES AMONG THE HNWIS

Some of the primary observation made in the year 2005-06 related to the Asset
Allocation Strategies among the HNWIs is as follows:

HNWIs made a more stable allocation among the equities and fixed
income securities

The year marked the growing popularity among the Private Equities. As
of now, the ultra HNWI and the institutions are the major investors in the
Private Equity segment.

Investors view the Hedge Funds as a route towards portfolio

diversification rather then as a generator of heavy returns. Hedge Fund is
not that popular in India.

The rising demand for alternative investments, such as real estate is

gaining considerable ground in India

43
In the year 2005-06 the HNWIs adopted a strategy of diversifying their portfolio
and adopted a more conservative asset allocation strategy as the report released
by Meryll Lynch.

44
 SCOPE OF WEALTH MANAGEMENT IN INDIA

India will be the third largest economy in the next 30 yrs. The wealth
management is growing by leaps and bounds in India. It is growing in terms of
number of players as well as HNIs. there has been a significant growth in
income and wealth levels over the past few years. As the economy and GDP
grows, the scope of growth of wealth management is huge.

The market segmentation includes old wealth (inheritance) and new wealth
(creators). The new wealth is the driving force. The changed composition of the
GDP where services now account for nearly 50% demonstrates the impact of the
new health being created.

It is now understood easy and passive options like deposits are no longer
attractive given the low interest rates. There is a noticeable shift in the mindsets
of the HNWIs. HNWIs need to invest in the options that give them higher
yields. This is where the need of wealth managers becomes more pronounced. A
long drawn process, to achieve a smooth transition, wealth managers, private
bankers and financial planners have to play a very significant role. The job of the
wealth manager would be to identify and create an optimum and right portfolio
for the clients.

In India, wealth management is evolving into a business now. Now the markets
have become more complex and people need somebody to guide them because
the age of guaranteed returns is gone. Now people are too busy and want their
wealth to be managed prudentially and professionally. There is an immediate
need for such wealth management professionals in the country. This new
industry, therefore, is becoming one of the most exciting and rewarding
professions today. Competitors are realizing this fact and are beginning to bring

45
their propositions to the table. Today, India is attracting both foreign wealth
managers and domestic banks to set up wealth management businesses. There
are numerous agencies looking at wealth management. Banks for one are at an
advantage given the nationwide presence. Almost all banks notably the private
sector and foreign banks are looking at this segment.

The players in the wealth management services industry In India include HSBC,
Standard Chartered, Citibank, BNP Paribas, ICICI bank, HDFC Bank, Kotak
Mahindra Bank, ABN-Bank and Brokers DSP Merrill Lynch and JM Morgan
Stanley.

The estimates of the market size vary from Rs 20000 Cr to Rs 200000 Cr. The wide
range is in on account of the fact that there are various definitions for the wealth
management service and the minimum threshold limit to be a wealth
management customer varies from bank to bank, from Rs 5 Lakh/ 10 Lakh to
Rs .5 Cr. Foreign Banks, for their wealth management services, insists upon the
HNWIs having the financial surplus of over Rs 2 Cr per year. They expect this
segment to grow by almost 25% by 2007-08.

HNWIs are typically promoter or an owner of a small & medium enterprises, a

top ranking official with employee stock options, a professional such as lawyer
or an NRI. The services would normally comprise investment under assets such
as equity, mutual funds, debt, insurance and specialized services such as estate
management. The asset allocation plan is formed after taking into account risk
appetite and time horizon of each client. Regular monthly or quarterly review of
the clients portfolio is also part of the service providers job and customization is
the key here.
The advantage banks have in providing this service is that there is certain
versatility in the way they operate. Banks also hope to become one stop shop for

46
financial services, selling mutual funds, insurance policies, and brokerage
through subsidiaries or partners, in addition to offering deposits and loans.
Further, the quintessence of wealth management business is security and
confidentiality that is what banking industry is all about.

Investment areas in India normally include equities, derivative instruments,

mutual funds, and bonds. Today, the suite of wealth management products is
expanding and also includes art, real estate and jewelry advisory. There is a
rising demand for other assets. Property for one is gaining ground in the country.
Commodities as a class of asset are becoming popular. The key point is that
investors are aware of the ground realities. They would look at preservation of
capital in a volatile scenario rather than seeking maximization of capital

One has to remember that returns on investments are based on the kind of risk
the investor is willing to take. This sees investors diversifying into more than one
asset to reduce risk. Typically, wealth management customers could be classified
into three categories. The delegative customer gives the wealth manager the right
to make decisions, while the consultative customer wants to be involved in the
decision making process and third type is the self driven customer who is more
adaptable to using technology and could migrate to newer platforms like the
internet. To cater the third category of customer that is self driven customer,
Banks need to e-enable the investors like access to customer accounts using the
Internet. Also must services like e-broking etc.

WEALTH MANAGEMENT IN THE GROWING STAGE

47
The wealth management industry at present is growing as compared with
offerings by private banks and wealth managers in the west. There is no doubt
however than the Indian market is still in the early stages of development. The
ratio of self managed to professionally managed wealth in Asia and, particularly
in India, is much higher than the trends in the USA and other developed
economies.

Certainly all the requisite ingredients are there; the wealth itself, the confidence
in the domestic economy, the readiness to get involved in a variety of different
asset classes and widens geographic allocation of asset. Why then is the market
so underdeveloped? Why 85% of assets according to data are monitor still in
deposit accounts? The reasons are as follows:

To all intents and purposes, the HNWIs market has yet to be created.
Offerings tend to be the same for all those with money to invest.
Sophisticated products such as derivatives and hedge funds are barely
legislated for and in the context of the middle classes driving the
development of the investment landscape; they are not high priority either.
One area where HNWIs do tend to invest is in property reflexive of the
undeveloped nature of the market.

The answer also lies in the regulatory environment. As wealth has grown and
people have excess liquidity, they have become more demanding in their
financial needs. The gradually easing regulatory environment is helping meet
some of those needs. Currently portfolio management, mutual funds,
insurance products, equity brokerage and mortgage lending are all allowed
but the market remains untapped.

48
 The biggest reason for this is currently control. Initially introduced as a means
to keep currency outflows at a manageable level, the controls are now acting
as a barrier to the countrys retail investment industry at all levels. The good
news is that all this is set to change.

4.3 WEALTH MANAGEMENT IN INDIA-THE ROAD AHEAD

There is no denying the fact that financial instruments have become to intricate
for the common investor to understand. The introduction of derivative products,
an increase in the number of mutual fund schemes changing interest rates and
the growing number of individuals who wish to make certain part of their
wealth hedge against business risks have contributed to the growth of wealth
management service. The world of wealth management is growing from strength
to strength and banks and other major players are focusing on the affluent
population of the society.

International players trying to reach this segment of the market and trying to
establish a presence in the market. Moves are already afoot by players such as
Barclays, Citibank, HSBC, Deutsche Bank and BNP Paribas who are all involved
to a greater or lesser extent in the market.

Servicing the onshore market will soon mean the provision of both advisory and
discretionary wealth management solutions for HNW market. Even local
banks such as ICICI and HDFC Bank are pouring in resources to tap the rapidly

49
growing business. These banks are aiming not just to play a part in the wealth
management market but also want to have a hand in creating it in the first place.

The wealth management industry, though at a nascent phase, is experiencing

rapid growth in terms of the number of providers, clients and assets under
management. Ultimately the Indian wealth management market is about
patience while waiting for the regulatory breadth and depth to become
established. In five years time, we expect to see continued liberation and an end
to currency controls. But its important to understand that a major dynamic of
the Indian market is internal demand.

Different Parameters Considered while providing investment

Advice to the clients:

Financial Planning is a vital part of the wealth Management. It is the process of

managing money to achieve to achieve personal economic satisfaction. The
planning process controls the financial situation and it consists of following
steps:-

50
 Determine Develop Identify
current finan. Financial alternative
situation Goals courses of action

Reevaluate and Create & Evaluate

revise the plan Implement a Alternatives
financial plan

The approach to wealth management or financial planning is based on creating

customized solutions to individual clients; the focus of wealth manager is the
client. Wealth Managers efforts are devoted to helping clients achieve life goals
through the proper management of their financial resources. The focus is on
creating or making available products and services that meet the needs of the
target customers and they are profitable to the bank as well.

Step 1: Determine the Current Financial Situation Of The Client

In the first step of the financial planning process, determine the current financial
situation of the client with regard to following factors:

Income

Savings

Living Expenses

Debts

51
Step 2: Developing Personal Financial Goals of the clients
Financial goals should be stated to take the following factors in to account:

Financial goals should be realistic. It should be based on life situation and

income of the client.

It should be stated in specific and measurable term.

Financial goals should have time frame.

Step 3: Identifying alternative Courses of Action for the Client

Developing alternatives is crucial for making good decisions. Although many

factors will influence the available alternatives, possible courses of action usually
fall into these categories:

Continue the same courses of action.

Expand the current situation.

Change the current situation.

Take a new course of action.

Step 4: Evaluate Alternatives for the Client

While evaluating possible courses of action for the client, take in to consideration
following factors:

Life Situation

Age Employement Marital Status Members

Personal Values-the ideas and principles that the client consider correct,
desirable and important.

52
 Economic Factors- Consider inflation, market forces and interest rates
while designing a financial plan for the client.
Evaluate risk and time value of money.

Step5 : Create and Implement the financial plan for the Client.

Step6 : Reevaluate and Revise the Financial Plan

Financial planning is a dynamic process that does not end when a particular
action is being taken. A wealth Manager needs to access the financial decisions
regularly. A wealth manager must review the finances once a year. Changing
personal, social and economic factors may require more frequent assessment.

Returns on investment are based on the kind of risk the investor is willing to
take.As mentioned earlier the risk appetite of HNWIs plays a vital role while
deciding the investment avenues for the client. Hence, the risk tolerance of the
individuals is significant part of wealth management and without evaluating it
incestment advice suggested is void.

4.4 COMPETITORS ANALYSIS

Information About the leading players and various services offered by them
under wealth management

In wealth management ,the target audience is HNWIs.discretion and high

quality service remain the cornerstones of the business,the focus has now shifted
to performance and valuation rather than a plain emphasis on keeping money
safe and secure.

Competitiors analysis is done considering 5 banks which are into providing

Wealth Management Services.
The banks are:-

HSBC Bank

Standard chartered

BNP Paribas

DBS Cholamandalam

53
 Citibank

Information about the services provided by these banks under wealth

management is compared based on 5 Ps which are as follows:

People

Product

Price

Promotion

Privileges

Risk Analysis Intiative.

54
PEOPLE: Team size of each financial institution

Name of Number of Average Average Experience

financial employees number of number of of
Institution Pan-India employees relationshi relationship
per p managers managers
location per
location

45 12 7 Anywhere
HSBC
between 3 to 7
years

Standard 3-5 years in

100 9 5 private/upper
Chartered Bank
end banking

Delhi and
prime loc in 3 years in high
150 30 south India end banking
Citibank
have 10 and
Mumbai 25

50 10 5 5-7 years
BNP Paribas

40 7 3 2-5 years
DBS
Cholamandalam

55
Products: the products offered by these banks are more or less the
same.products offered by these banks under wealth management range from
capital guranteed products(bonds and term deposits) to market linked
products(insurance,asset products like mortgages).Furthermore,HNWIs are
exposed to global products and privileges.

The basic services offered by these banks are as follows:

Free demand draft across the country

Free cheque pick facility

National banking and faster clearing

Cash management services

Forex and trade services

Insurance privileges

Real state advisory services

Citibank was the first bank to make its HNIs clients to invest overseas through
the Global depositproduct,within the hours of RBI ruling. Citibank stands out
other banks by providing tax and art advisory services to its citigold wealth
management clients.

56
 Name of Mutual Direct Portfolio Capital Real Art
financial Funds equity managem protecte Estate advisory
Institution ent d Advisory
services product
s

Yes No No Yes No No
HSBC
(they have it (they have (they have (they have
only in it only in it only in it only in
private private private private
banking) banking) banking) banking)

Standard
Yes No No Yes No No
Chartered Bank
(they have (they have (they have
it only in it only in it only in
priority priority priority
banking) banking) banking)

Yes No Yes Yes Yes Yes

Citibank

Yes Yes Yes Yes Yes No

BNP Paribas

Yes Yes Yes Yes Yes Yes

DBS
Cholamandala
m

57
Price

Price is the basic point that differentiates each bank from the other in case of
HNWIs clients.price here refers to the eligibility amount or the minimum
average balance that has to be maintained by the clients in order to be termed as
HNWIs clients of the bank.

Name of financial Minimum Remarks

Institution portfolio
threshold

Client can start from 25 lakhs

Rs 25 lakhs but should have capacity to
HSBC
build this
up to Rs 2.5 crores

Standard Rs 20 lakhs The basic threshold for them is

Rs 20 lakhs.these 20 lakhs are
Chartered Bank
required to remain with the
bank.

Rs 30 lakhs is the minimum

Rs 30 lakhs average balance that has to be
Citibank
maintained by the clients

The minimum threshold for

Rs 2 crores them to take a client on board
BNP Paribas
is 2 crores and they have
compulsion for this 2 crores to
grow .

Client can start with the

Rs 25 Lakhs minimum threshold of 25
DBS
lakhs and has to further grow
Cholamandalam the portfolio size with time.

58
 Promotion

All banks promote their high end products at national level only without any
local advertisements.the following are the ways in which the high end products
are advertised:

Name of Fund Concert/ Organiz Art Holiday Discount

financial Manager Movie e Shows Packages Coupons
Institution Meetings Tickets Clients
Functio
ns

Yes (Monthly) Yes) Yes Yes No No

HSBC

Standard
Yes Yes (Movie Yes(Golf Yes(Onc No Yes
Chartered
(Frequently) Clubs) Tournam ea (Mont
Bank ent) Year) Blanc etc)

Yes Yes Yes Yes No Yes

Citibank

Yes Yes Yes No No No

BNP
Paribas

Yes Yes Yes (Golf Yes Yes No

DBS
Tournam
ent)

Risk Analysis Initiatives

59
HSBC

They utilize a very extensive risk analysis technique. It not only covers
information about the client and has immediate family but in fact also requires
details of their extended family in order to quantify the clients risk.HSBC has a
very stringent compliance approval system in place.The investment on behalf of
the client can only be done after a KYC(know your customer)document has
been completed and his profile is approved in the sense that it meets the
companys rules and regulations.(Met Ms Charu puri, Vice President,PFS)

Standard Chartered

Standard Chartered analyses its clients risk appetite by getting a form called
Standard Chartered Customer suitability adjustment analysis completed by the
client to start with.This form includes details like the Net Worth of the Individual
and the percentage of the total net worth their current investment has.(Met
Rajneesh Malhotra and Mr Gunjan,Vice president Chandigarh branch and Senior
Relationship Manager)

Citibank

Risk analysis will be carried out by asking the client to fill out Personal
investment and insurance Risk profile and eventually this will form a KYC
document which will be fed into various software to arrive at a figure for the
clients risk appetite(Met Richa Shukla,Sr Relationship Manager,WMS)
BNP Paribas

60
They have everything online as in softcopy and presentations.Details were not
disclosed due to security reasons.(Met Mr. Ravinder Singh,Vice president,PCG)

DBS Cholamandalam

DBS Cholamandalam has a questionnaire by the name of Risk Analysis and

portfolio planner to assist exclusive customers in choosing investments suiting
their personal needs and objectives. (Met Mr Aum Manchanda,Regional
Manager,PCG).

Relationship Profitability Cycle

61
 More comprehensive
Greater profitability
solutions

Deeper relationships More satisfied

Increased referrals customers

Awareness of new products and solutions Banks should keep abreast of

technology developments that may enable them to run a more efficient

62
 and profitable business. In addition, banks must alert to investment
product and service developments and take a discerning approach to the
best new solutions for their clients

Flexibility and the readiness to transition when the time comes to

transition the practice to a wealth management model, banks should be
prepared to do so. Moreover, wealth managers need to continue to evolve
to meet changing client needs in a dynamic competitive environment.

Chapter 5 - INVESTMENT

63
An investment is the current commitment of money or other resources in the
expectation of reaping future benefits. A company can invest money either in
real assets or in financial assets depending upon the expected or desired profit
that it wants to grab.

It depends on the individual company/firm/person that it wants the money to

be consumed today or they want to invest it somewhere else in the desire to earn
more. It is not necessary that a company would be able to earn the expected
benefits from the current investment; actual outcome may vary from the
expected ones. Before making an investment a company needs to take decision
on proper investment portfolio. Two things are very important making such a
decision: -

Asset allocation
Security selection

Asset allocation decision is the choice among broad asset classes, and then
security selection is the choice of which particular securities to hold within each
asset class. Now days, we not only have the option of investing in own country
but international investment can be made easily Investment decisions are one of
the crucial decision for an individual/company. Because a lot more investment
depends on the earning from these investments.

Investing is the proactive use of your money to make more money or, to say it
another way; it is your money working for you. Investing is different from
saving. Saving is a passive activity, even though it uses the same principle of
compounding. Saving is more focused on safety of principal (the amount you
start out with) and less concerned with return.

64
Where money can be invested?
It can be invested in different markets available to earn the desired benefits.
Like in:-
Money Market
Fixed-Income Capital Market
Equity Market
Derivative Market

Money market includes Treasury Bills, CD, Commercial papers, Repos &
Reverses etc. In money market, the investment is only for a short term period, so
risk involved in them is almost negligible as compared to other investment
options.

Fixed income capital market includes Treasury bonds & notes,

Federal agency debt, municipal bonds, corporate bonds, mortgage-backed
securities.
Equity Market includes common stocks & preferred stocks.
Derivative Market includes options, future & forwards.

For evaluation of investments, following factors need to be given major

importance:-
Rate of Return
Risk
Marketability
Tax shelter
Convenience

1. Rate of Return

65
 It is generally calculated for a period of time (for a year),as :

Rate of Return = Annual income + (Ending price Beginning Price)

Beginning Price

This Rate of Return can be split in two components: - Current Yield and
Capital gain /Losses yield

Current Yield= Annual Income

Beginning Price

Capital gain/loss yield= Ending Price Beginning Price

Beginning Price
E g. Information about the equity shares of company ABC is
Price at the beginning = Rs 100
Dividend paid at the end = Rs 3
Price at the end = Rs 110

Rate of Return = 3 + (110-100) = 13 i.e. 13%

100 100
Depending on the investor requirement, they invest in the particular investment
option.

2. Risk

Generally an investor measures the risk as deviation of actual return from the
expected ones. Other tools used in the finance to measure the risk are variance,
standard deviation, Beta etc

66
3. Marketability

Investments that are highly marketable are those, which can be easily
transacted, whose transaction cost is low and the price change between two
successive transactions is negligible.

Generally, equity shares of well-established companies enjoy high

marketability than small companies. High marketability is desirable
characteristic for an investor.

4. Tax Shelter

Tax benefit in an investment can be during the initial entry or continuous

benefits or with withdrawal of money

5. Convenience

Convenience refers to the ease with which the investment can be made or looked
after. Higher the convenience better is the investment option.

Common investment pitfalls

There can various reasons for not getting the expected outcomes from a
particular investment. Like:-

Fad chasing
Chasing returns
Buying after a major price increase
Selling after a major price decline

67
 Lack proper investment portfolio
Fearing to take common risks
Ignoring the corrosive effect of inflation & taxes on investment returns

The larger menu of investment choice today means that most investors can find
an investment instrument that suits the need of particular investor (companies).
At the same time, however this larger menu leads to confusion and sometimes-
poor choices. Today, before investing money companies as an investor also need
to do a lot of homework.

Only taking decisions for an investment are not enough for a company. It still
needs to do continuous evaluation of the returns & results of the investment &
make necessary changes whenever required.

Investment Management techniques fall into two categories:

1. Active Portfolio Management

2. Buy and hold Management

Investors who actively manage their portfolio buy & sell more frequently than
more passive investors. Active investors shift funds between various types of
investment in anticipation of changing market. To plan these moves, they tend to
monitor investment performance more closely and are more concerned about the
short-term gains.

A passive investor tends to buy a portfolio of securities and keep it for a long
period of time. These types of investors are less inclined to make changes to the
portfolio in response to changing market conditions. Depending upon the actual
performance, the asset investment need to be changed with time .

68
An asset performing up to the expectation and above that will receive more
investment with the passage of time.Because there is only a single motive, while
making an investment that is benefits & assured returns as per expectation.

Though while making an investment, money is put to some risks that are
inevitable. So, an investor should be ready to face such kinds of risks. But
sometimes it becomes difficult for an investor to decide what the right time to
sell.

A well known quotation about the investor thinking given by Robert

Wibbelsman:

The problem with the person who thinks he's a long-term investor and
impervious to short-term gyrations is that the emotion of fear and pain will
eventually make him sell badly.

Investing is the proactive use of your money to earn more for you or it is your
own money working for you. Investing is different from saving.
Saving is like a passive activity which mainly focuses on safety of
principle amount and less on the returns.

The wealth management industry in India is experiencing an evolutionary phase

of development. With the liberalization of the Indian economy and subsequent
growth and prosperity across sectors, the wealth management industry is poised
to gain greater traction in an expanding market.

69
The client segmentation schema promises growth across all the six categories:

Ultra-high net worth, or Ultra-HNW (in excess of US$30 million), will

have a total population of 10,500 households by 2012.
Super high net worth (between US$10 and $30 million) will have a total
population of 42,000 households by 2012.
High net worth (between US$1 million and $10 million) will have a total
population of 320,000 by 2012.
Super affluent (between US$125,000 and $1 million) will have a total
population of 350,000 households by 2012.
Mass affluent (between US$25,000 and $125,000) will have a total
population of 1.8 million households by 2012.
Mass market (between US$5,000 and $25,000) will have a total population
of 39 million households by 2012.

70
5.1 Types of Investments

There are two broad categories of securities available to investors equity

securities (which represent ownership of a part of a company) and debt securities
(which represent a loan from the investor to a company or government entity).
Within each of these types, there are a wide variety of specific investments. In
addition, different types can be combined (e.g., through mutual funds) or even
split apart to form derivative securities.

Each type has distinct characteristics plus advantages and disadvantages,

depending on an investor's needs and investment objectives. In this section, we
provide an overview of the most common classes of investment securities.

Stocks

The type of equity securities with which most people are familiar is stock. When
investors buy stock, they become owners of a "share" of a company's assets. If a
company is successful, the price that investors are willing to pay for its stock will
often go up--shareholders who bought stock at a lower price then stand to make
a profit. If a company does not do well, however, its stock may decrease in value
and shareholders can lose money. The rise in the price of a stock is termed
appreciation or "capital gain." The stockholder is also entitled to dividends,
which may be paid out from the company. Investors, therefore, have two sources
of profit from stock investments, dividends and appreciation. Some stocks pay
out most of their earnings as dividends and may have little appreciation. These
stocks are sometimes referred to as income stocks. Other stocks may pay out little
or no dividend, preferring to reinvest earnings within the company. Since all of
an investors potential earnings comes from appreciation these stocks are
sometimes referred to as growth stocks. Stock prices are also subject to both

71
general economic and industry-specific market factors. There is no guarantee of a
return from investing in stocks and hence there is risk incurred in investing in
this type of security.

As owners, shareholders generally have the right to vote on electing the board of
directors and on certain other matters of particular significance to the company.
Under the federal securities laws, most companies must send to shareholders a
proxy statement providing information on the business experience and
compensation of nominees to the board of directors and on any other matter
submitted for shareholder vote.

This information is required so that stockholders can make an informed decision

on whether to elect the nominees or on how to vote on matters submitted for
their consideration.

Stock investments are typically common stock, which is the basic ownership
share of a company. Some companies also offer preferred stock, which is another
class of stock. Preferred stock typically offers some set rate of return (although it
is still not guaranteed), and pays dividends before dividends are paid for
common stock. Preferred stock may not, however, participate in a much upside
as common stock. If a company does really well, preferred stockholders may
receive the same dividend as any other year while common stockholders reap
the rewards of a great year.

Corporate Bonds

The most common form of corporate debt security is the bond. A bond is a
certificate promising to repay, no later than a specified date, a sum of money
which the investor or bondholder has loaned to the company. In return for the

72
use of the money, the company also agrees to pay bondholders a certain amount
of "interest" each year, which is usually a percentage of the amount loaned.

Since bondholders are not owners of the company, they do not share in dividend
payments or vote on company matters. The return on their investment is not
usually dependent upon how successful the company is. Bondholders are
entitled to receive the amount of interest originally agreed upon, as well as a
return of the principal amount of the bond, if they hold the bond for the time
period specified.

Companies offering bonds to the public must file with the SEC a registration
statement, including a prospectus containing information about the company
and the security.

Government Bonds

The U.S. Government also issues a variety of debt securities, including Treasury
bills (commonly called T-bills), Treasury notes, and U.S. Government agency
bonds. T-bills are sold to selected securities dealers by the Treasury at auctions.

Government securities can also be purchased from banks, government securities

dealers, and other broker-dealers.

Similar to corporate bonds, these bonds pay interest and the amount of principal
at maturity. Some (viz., Treasury Bills) may not pay cash interest. Instead the
bond is purchased at a discount and the interest is built into the amount the investor
receives at maturity. Contrary to popular belief investors must pay income tax on U.S. government bond
interest.

73
Municipal Bonds

Bonds issued by states, cities, or certain agencies of local governments (such as

school districts) are called municipal bonds. An important feature of these bonds
is that the interest a bondholder receives is not subject to federal income tax. In
addition. the interest is also exempt from state and local tax if the bondholder
lives in the jurisdiction of the issuing authority. Because of the tax advantages,
however, the interest rate paid on municipal bonds is generally lower than that
paid on corporate bonds.

Municipal bonds are exempt from registration with the SEC; however, the MSRB
establishes rules that govern the buying and selling of these securities .

Stock Options

An option is the right to buy or sell something at some point in the future. An
option is a type of derivative security. There are a wide variety of these
specialized instruments such as futures, options and swaps. Most are not
appropriate for the average investors. The type of options with which we are
concerned here are standardized, exchange-traded options to buy or sell
corporate stock.

These options fall into two categories

"Calls," which give the investor the right to buy 100 shares of a specified
stock at a fixed price within a specified time period, and
"Puts," which give the investor the right to sell 100 shares of a specified
stock at a fixed price within a specified time period.

While options are considered by many to be very risky securities, if used

properly they can actually reduce the risk of a portfolio. Generally you buy a call

74
option if you are bullish on a stock (i.e. you expect the price to go down). The
price you pay is called the premium. You would purchase a put option if you are
bearish on a stock (i.e. you expect the price to go down). If the stock moves in the
right direction you can profit handsomely. If it doesnt you lose the premium
that you paid. Buying puts and calls is not a risky strategy, but selling puts an
calls is. One exception is selling a call option on a stock you already own. This is
known as a "covered call." This actually reduces the overall risk of your portfolio
in exchange for you giving up some of your upside.

Mutual Funds

Companies or trusts that principally invest their capital in securities are known
as investment companies or mutual funds. Investment companies often diversify
their investments in different types of equity and debt securities in hope of
obtaining specific investment goals. In a mutual fund you invest in the mutual
fund which then invest in individual equity and debt securities. This relieves you
of the necessity to make individual purchase and sale decisions. It also provides
an easy way to diversify a portfolio. Rather than purchasing 50 stocks yourself,
you can purchase one mutual fund.

A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciation realized is
shared by its unit holders in proportion to the number of units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. The flow chart below describes broadly the
working of a mutual fund:

75
 Mutual Fund Operation Flow Chart

Source: Google search engine

Performance of mutual fund

Unit Trust of India invited investors or rather to those who believed in savings,
to park their money in UTI Mutual Fund. (1983) For 30 years it goaled without a
single second player.

Though the 1988 year saw some new mutual fund companies, but UTI remained
in a monopoly position. The performance of mutual funds in India in the initial
phase was not even closer to satisfactory level. People rarely understood, and of
course investing was out of question. But yes, some 24 million shareholders were
accustomed with guaranteed high returns by the beginning of liberalization of
the industry in 1992.

This good record of UTI became marketing tool for new entrants. The
expectations of investors touched the sky in profitability factor. However, people
were miles away from the preparedness of risks factor after the liberalization.

76
The Assets under Management of UTI was Rs. 67bn. by the end of 1987. Let me
concentrate about the performance of mutual funds in India through figures.
From Rs. 67bn. the Assets under Management rose to Rs. 470 bn. in March 1993
and the figure had a three times higher performance by April 2004. It rose as
high as Rs. 1,540bn.

The net asset value (NAV) of mutual funds in India declined when stock prices
started falling in the year 1992.

Those days, the market regulations did not allow portfolio shifts into alternative
investments. There were rather no choices apart from holding the cash or to
further continue investing in shares.

One more thing to be noted, since only closed-end funds were floated in the
market, the investors disinvested by selling at a loss in the secondary market.

The performance of mutual funds in India suffered qualitatively. The 1992 stock
market scandals, the losses by disinvestments and of course the lack of
transparent rules in the where about rocked confidence among the investors.
Partly owing to a relatively weak stock market performance, mutual funds have
not yet recovered, with funds trading at an average discount of 1020 percent of
their net asset value.

The supervisory authority adopted a set of measures to create a transparent and

competitive environment in mutual funds. Some of them were like relaxing
investment restrictions into the market, introduction of open-ended funds, and
paving the gateway for mutual funds to launch pension schemes.

77
The measure was taken to make mutual funds the key instrument for long-Term
saving. The more the variety offered, the quantitative will be investors. At last to
mention, as long as mutual fund companies are performing with lower risks and
higher profitability within a short span of time, more and more people will be
inclined to invest until and unless they are fully educated with the dos and
donts of mutual funds

ORIGIN OF MUTUAL FUND

The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was slow,
but it accelerated from the year 1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen dramatic
improvements, both quality wise as well as quantity wise. Before, the monopoly
of the market had seen an ending phase; the Assets under Management (AUM)
were Rs. 67bn. The private sector entry to the fund family rose the AUM to Rs.
470 bn in March 1993 and till April 2004, it reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total
of it is less than the deposits of SBI alone, constitute less than 11% of the total
deposits held by the Indian banking industry.

The main reason of its poor growth is that the mutual fund industry in India is
new in the country. Large sections of Indian investors are yet to be intellectuated
with the concept.

Hence, it is the prime responsibility of all mutual fund companies, to market the
product correctly abreast of selling. The mutual fund industry can be broadly put

78
into four phases according to the development of the sector. Each phase is briefly
described as under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI.

The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI
had Rs.6, 700 crores of assets under management

Second Phase - 1987-1993 (Entry of Public Sector Funds)

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can
bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian
Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual
Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as
assets under management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund Regulations
came into being, under which all mutual funds, except UTI were to be registered
and governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered in July 1993.

79
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996.

The industry now functions under the SEBI (Mutual Fund) Regulations 1996.The
number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several
mergers and acquisitions. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,
541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase - since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with AUM of
Rs.29, 835 crores (as on January 2003). The Specified Undertaking of Unit Trust of
India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund
Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It
is registered with SEBI and functions under the Mutual Fund Regulations. With
the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,
000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among
different private sector funds.

The mutual fund industry has entered its current phase of consolidation and
growth. As at the end of September 2004, there were 29 funds, which manage
assets of Rs.153108 crores under 421 schemes.

GROWTH IN ASSETS UNDER MANAGEMENT

80
Source: - amfiindia.com

81
Note:
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified
Undertaking of the Unit Trust of India effective from February 2003.

The Assets under management of the Specified Undertaking of the Unit Trust of
India has therefore been excluded from the total assets of the industry as a whole
from February 2003 onwards.

Source: - amfiindia.com

82
Mutual fund is a form of collective investment that pools money from many investors
and invests their money in stocks, bonds, dividends, short-term money market
instruments, and/or other securities. In a mutual fund, the fund manager trades
the fund's underlying securities, realizing capital gains or losses, and collects the
dividend or interest income.

The investment proceeds are then passed along to the individual investors. The
value of a share of the mutual fund, known as the net asset value per share
(NAV), is calculated daily based on the total value of the fund divided by the
number of shares currently issued and outstanding

Since their creation, mutual funds have been a popular investment vehicle for
investors. Their simplicities along with other attributes provide great benefit to
investors with limited knowledge, time, or money. To help you decide whether
mutual funds are best for you and your situation, we are going to look at some
reasons why you might want to consider investing in mutual funds.

83
ADVANTAGES

Diversification

One rule of investing that both large and small investors should follow is asset
diversification. Used to manage risk, diversification involves the mixing of
investments within a portfolio.

For example, by choosing to buy stocks in the retail sector and offsetting them
with stocks in the industrial sector, you can reduce the impact of the
performance of any one security on your entire portfolio. To achieve a truly
diversified portfolio, you may have to buy stocks with different capitalizations from
different industries and bonds having varying maturities from different issuers. For
the individual investor this can be quite costly.

By purchasing mutual funds, you are provided with the immediate benefit of
instant diversification and asset allocation without the large amounts of cash
needed to create individual portfolios.

One caveat (beware), however, is that simply purchasing one mutual fund
might not give you adequate diversification - check to see if the fund is sector or
industry specific.

For example, investing in an oil and energy mutual fund might spread your
money over fifty companies, but if energy prices fall, your portfolio wills likely
suffer.

84
Economies of Scale

The easiest way to understand economies of scale is by thinking about volume

discounts: in many stores the more of one product you buy, the cheaper that
product becomes.For example, when you buy a dozen donuts, the price per
donut is usually cheaper than buying a single one. This occurs also in the
purchase and sale of securities.

If you buy only one security at a time, the transaction fees will be relatively large.
Mutual funds are able to take advantage of their buying and selling size and
thereby reduce transaction costs for investors. When you buy a mutual fund, you are
able to diversify without the numerous commission charges. Imagine if you had to
buy the 10-20 stocks needed for diversification.

The commission charges alone would eat up a good chunk of your savings. Add
to this the fact that you would have to pay more transaction fees every time you
wanted to modify your portfolio - as you can see the costs begin to add up.
Mutual funds are able to make transactions on a much larger scale (and cheaper).

Divisibility

Many investors don't have the exact sums of money to buy round lots of
securities. One to two hundred dollars is usually not enough to buy a round lot
of a stock, especially after deducting commissions.

Investors can purchase mutual funds in smaller denominations, ranging from $100 to
$1000 minimums. So, rather than having to wait until you have enough money to
buy higher-cost investments, you can get in right away with mutual funds. This
leads us to the next advantage.

85
Liquidity

Another advantage of mutual funds is the ability to get in and out with relative
ease.

You can sell mutual funds at any time as they are as liquid as regular stocks.
Both the liquidity and smaller denominations of mutual funds provide mutual fund
investors the ability to make periodic investments through monthly purchase
plans while taking advantage of dollar-cost averaging.

Professional Management

When you buy a mutual fund, you are also choosing a professional money manager. This
manager will use the money that you invest to buy and sell stocks that he or she
has carefully researched. Therefore, rather than having to research thoroughly
every investment before you decide to buy or sell, you have a mutual fund's
money manager to handle it for you.

As with any investment, there are risks involved in buying mutual funds. These
investment vehicles can experience market fluctuations and sometimes provide
returns below the overall market. Also, the advantages gained from mutual
funds are not free: many of them carry loads, annual expense fees and penalties for
early withdrawal. In the next article we will take a closer look at some of these
drawbacks so you can decide if mutual funds are right for you.

DISADVANTAGES

Fluctuating Returns

86
Mutual funds are like many other investments without a guaranteed return.
There is always the possibility that the value of your mutual fund will
depreciate. Unlike fixed-income products, such as bonds and Treasury bills, mutual funds
experience price fluctuations along with the stocks that make up the fund.

When deciding on a particular fund to buy, you need to research the risks
involved - just because a professional manager is looking after the fund, that doesn't
mean the performance will be stellar. Another important thing to know is that
the U.S does not guarantee mutual funds. Government, so in the case of
dissolution, you won't get anything back. This is especially important for
investors in money market funds. Unlike a bank deposit, a mutual fund will not
be FDIC insured.

Diversification

Although diversification is one of the keys to successful investing, many Mutual fund
investors tend to over diversify.

The idea of diversification is to reduce the risks associated with holding a single
security; over diversification occurs when investors acquire many funds that are
highly related and so don't get the risk reducing benefits of diversification.

87
Cash, Cash and More Cash

As you know already, mutual funds pool money from thousands of investors, so
everyday investors are putting money into the fund as well as withdrawing
investments. To maintain liquidity and the capacity to accommodate withdrawals,
funds typically have to keep a large portion of their portfolio as cash. Having
ample cash is great for liquidity, but money sitting around as cash is not working
for you and thus is not very advantageous.

Costs

Mutual funds provide investors with professional management; however, it

comes at a cost. Funds will typically have a range of different fees that reduce the
overall payout.

In mutual funds the fees are classified into two categories: shareholder fees and
annual fund-operating fees. The shareholder fees, in the forms of loads and
redemption fees are paid directly by shareholders purchasing or selling the
funds. The annual fund operating fees are charged as an annual percentage -
usually ranging from 1-3%.

These fees are assessed to mutual fund investors regardless of the performance
of the fund. As you can imagine, in years when the fund doesn't make money
these fees only magnify losses.

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The misleading advertisements of different funds can guide investors down the
wrong path. Some funds may be incorrectly labeled as growth funds, while
others are classified as small-cap or income.

The SEC (Securities and Exchange Commission) requires funds to have at least
80% of assets in the particular type of investment implied in their names. The
remaining assets are under the discretion solely of the fund manager.

The different categories that qualify for the required 80% of the assets, however,
may be vague and wide-ranging. A fund can therefore manipulate prospective
investors by using names that are attractive and misleading. Instead of labeling
itself a small cap, a fund may be sold under the heading growth fund.

Evaluating Funds

Another disadvantage of mutual funds is the difficulty they pose for investors
interested in researching and evaluating the different funds. Unlike stocks,
mutual funds do not offer investors the opportunity to compare the P/E ratio,
sales growth, earnings per share, etc.

A mutual fund's net asset value gives investors the total value of the fund's
portfolio less liabilities, but how do you know if one fund is better than another?

Furthermore, advertisements, rankings and ratings issued by fund companies

only describe past performance. Always note that mutual fund
descriptions/advertisements always include the tagline "past results are not
indicative of future returns".

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Be sure not to pick funds only because they have performed well in the past -
yesterday's big winners may be today's big losers. Whenever an investor plans to
buy any investment, it's important to understand both the good and bad points.

If the advantages that the investment offers outweigh its disadvantages, it's
quite possible that mutual funds are something to consider. Whether you decide
in favor or against mutual funds, the probability of a successful portfolio
increases dramatically when you do your homework.

On the basis of their structure and objective, mutual funds can be classified into
following major types:
Closed-end funds
Open-end funds
Large cap funds
Mid-cap funds
Equity funds
Balanced funds
Growth funds
No load funds
Exchange traded funds
Value funds
Money market funds
International mutual funds
Regional mutual funds
Sector funds
Index funds
Fund of funds

Investment Contracts and Limited Partnerships

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Investors sometimes pool money into a common enterprise managed for profit
by a third party. This is called an investment contract. Such enterprises may
involve anything from cattle breeding programs to movie productions. This is
often done through the establishment of a limited partnership in which investors,
as limited partners, own an interest in a venture but do not take an active
management role. Some of these securities have been issued in the past primarily
for purposes of reducing income tax liability. Such opportunities are limited
today. Care should be taken in investing in these securities since they can be
illiquid and require a great deal of expertise. You should consult with your
financial advisor regarding these types of investments.

Real Estate Investment Trust (REIT)

Real estate investment trusts are set up in a fashion similar to mutual funds.
Instead of investing in stocks or bonds, however, REIT investors pool their funds
to buy and manage real estate or to finance real estate construction or purchases.
Real estate limited partnerships are also common. This is a way to get
diversification from real estate investment without the headaches of property
ownership and management.

Asset Allocation

Asset allocation is the process of allocating your investments among the broad
categories of stocks, corporate bonds, government bonds, etc. It is extremely
important in investment success. In fact, portfolio selection should generally be
based on asset allocation, whether formal or informal. This process can be
complicated, but computer programs are available to assist in performing the
allocation.

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Risk vs. Return

There are many types of risk. The one most people think of is market risk, which
is the risk that market prices can fluctuate. If you have a short investment
horizon, generally something less than five years, this risk is important since the
market could be down at the time you most need the money. On the other hand,
if you have a long time horizon, for example when saving for retirement, you
may be unconcerned with market risk. The investment has the opportunity to
come back prior to the time you need the funds.

Another risk, which many people dont think about, is purchasing power risk.
This is the risk that your investment will not keep up with inflation and you will
not be able to maintain your desired standard of living. A bank CD for example
might pay interest of 3% and have no market risk. Your principal does not
fluctuate in value and you are insured against loss. However, if inflation exceeds
3% you will lose purchasing power

You need to assess how much risk you can tolerate. One easy way to measure
this is how well do you sleep at night. If you lie awake worrying about your
investments, you risk tolerance is probably too low for your current investment
strategy. In general the longer your investment horizon the greater the amount of
risk you can afford to take. Your financial advisor can also assist you in
measuring your risk tolerance.

Risk can also be reduced through diversification. Rather than buying one stock,
buy a basket of 20 to 30 stocks. This reduces your overall risk. You can also
reduce risk by combining different investment types such as stocks, corporate
bonds and government bonds. These securities are not highly correlated (i.e. they
tend not to go up or down at the same time).

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Return

Why would one want to take on more risk? Because it generally comes with a
higher expected return. While stocks may have the greatest market risk, they
have also provide that highest market return over the long haul. Stock returns
have averaged between 10 and 11% since the early part of this century.
Corporate bonds on the other hand have averaged between 6 and 7% and
government bonds closer to 5%. As you can see the lower the risk the lower the
expected return. You must balance the amount of risk you are willing to tolerate
with the amount of return you expect to achieve. There is no such thing as a high
return/low risk investment

5.2Planning Techniques

You should assess your current resources and future goals. This will assist you
and your advisors in determining what rate of return is necessary to achieve
your goals and how much risk you can tolerate. Here is a suggested checklist:

Assess your current financial resources. How much do you have to invest?
Assess your future financial resources. Do you have an excess of income
over expenses that can be invested?
Determine your financial goals. How much money do you need and when
do you need it?
Determine the rate of return you need to achieve your goals.
Determine how much risk you can tolerate based upon your time horizon
and personal preferences.
Choose an appropriate asset allocation to achieve the desired risk/return
relationship. How should you allocate your investment among the various
classes of investments?

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 Choose the individual securities within each asset class. Which securities
should you buy?

Security Selection

Once you have decided what percentage of your assets should go in each asset
class, you need to select the appropriate individual securities. You should
consider the same techniques as in selecting the asset classes to invest in. For
each security you must evaluate its unique risk and its expected return. There are
a number of sources of information about specific securities that you can
explore.. Generally, the most important of these for mutual funds and new stock
issues is the prospectus, which is the security's selling document, containing
information about costs, risks, past performance (if any) and the investment
goals. Read it and exercise your judgment carefully, before you invest. You can
obtain the prospectus from the company or mutual fund or from your financial
advisor.

In the case of a mutual fund, there is also a Statement of Additional Information

(SAI, also called Part B of the prospectus). It explains a fund's operations in
greater detail than the prospectus. You can get a clearer picture of a fund's
investment goals and policies by reading its annual and semi-annual reports to
shareholders. If you ask, the fund must send you an SAI and/or its periodic
reports. This process is time-consuming and requires a great deal of time and
expertise.

Keep in mind that proper security analysis is extremely complex. Computer

programs (the good ones are usually quite expensive) are invaluable in helping
choose an appropriate portfolio; however, these programs require a familiarity
with their use and an understanding of their limitations. Generally, if you do not

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have the time to perform the necessary analyses or the experience or expertise in
security selection, you should consult with your financial advisor

5.3 Six Investing Pitfalls To Avoid

Here are the top mistakes that cause investors to lose money unnecessarily.

1. Using A Cookie-Cutter Approach

Most investorsalong with many of the people who advise themare

satisfied with a one-size-fits-all investment plan. The "model portfolio" is
useless to most investors. Your individual needs as an investor must
govern any plans you make for investment. For instance, how much of
your investment can you risk losing? What is your investment timetable
(i.e., are you retired, a young professional, or middle-aged)? The
allocation of your portfolios assets among various types of investments
Treasuries, blue-chip stocks, equity mutual funds, and others-- should
match your needs perfectly.

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2. Taking Unnecessary Risks

You do not have to risk your capital to make a decent return on your money.
There are many investments that offer a return that beats inflationand more
without unduly jeopardizing your hard-earned money. For instance, Treasuries,
the safest possible investment, offer a decent return with virtually no risk. Blue-
chip preferred stocks, common stocks, and mutual funds offer high returns with
a fairly low level of risk.

3. Allowing Fees and Commissions to Eat Up Profits

Many investors allow brokers commissions and other return-eating costs to cut
into their returns. Professionals need to be compensated for their time, however,
you should make certain that the fees you are paying are appropriate for the
services performed.

4. Not Starting Early Enough

Many investors are not cognizant of the power of interest compounding. By

starting out early enough with your investment plan, you can invest less, and
still come out with double or even quadruple the amount you would have had if
you started later. Another way to look at it is that by investing as much as
possible earlier on, youll be able to meet your goals and have more current cash
on hand to spend.

5. Ignoring the Cost of Taxes

Every time you or your mutual fund sells stocks, there is a capital gains tax to
pay. Unless you are in a tax-deferred retirement account, the taxes will eat into
your profits. What to do: Invest in funds that have low turnover (i.e., in which

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shares are bought and sold less frequently). Your portfolio, overall, should have
a turnover of 10% or less per year.

6. Letting Emotionor Magical Thinking--Govern Your Investing

Never give in to pressure from a broker to invest in a "hot" security or to sell a

fund and get into another one. The key to a successful portfolio lies in planning,
discipline, and reason. Emotion and impulse have no role to play in investing.
Similarly, do not be too quick to unload a stock or fund just because it slips a few
points. Try to stay in a security or fund for the long haul. (On the other hand,
when its time to unload a loser, then let go of it.) Finally, do not fall prey to the
myth of "market timing." This is the belief that by getting into or out of a security
at exactly the right moment, we can retire rich. Market timing does not work.
Instead, use the investment strategies that do work: a balanced allocation of your
portfolios assets among securities that suit your individual needs, the use of
dividend-reinvestment programs and other cost-saving strategies, and a well-
disciplined, long-haul approach to saving and investment

5.4 Asset Allocation

Asset allocation is based on the proven theory that the type or class of security
you own is much more important than the particular security itself. Asset
allocation is a way to control risk in your portfolio. The risk is controlled because
the six or seven asset classes in the well-balanced portfolio will react differently
to changes in market conditions such as inflation, rising or falling interest rates,
market sectors coming into or falling out of favor, a recession, etc.

Asset allocation should not be confused with simple diversification. Suppose you
diversify by owning 100 or even 1,000 different stocks. You really havent done
anything to control risk in your portfolio if those 1,000 stocks all come from only

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one or two different asset classessay, blue chip stocks (which usually fall into
the category known as large-capitalization, or large-cap, stocks) and mid-cap
stocks. Those classes will often react to market conditions in a similar waythey
will generally all either go up or down after a given market event. This is known
as "correlation."

Similarly, many investors make the mistake of building a portfolio of various

top-performing growth funds, perhaps thinking that even if one goes down, one
or two others will continue to perform well. The problem here is that growth
funds are highly correlatedthey tend to move in the same direction in response
to a given market force. Thus, whether you own two or 20 growth funds, they
will tend to react in the same way.

Not only does it lower risk, but asset allocation maximizes returns over a period
of time. This is because the proper blend of six or seven asset classes will allow
you to benefit from the returns in all of those classes.

How Does Asset Allocation Work?

Asset allocation planning can range from the relatively simple to the complex. It
can range from generic recommendations that have no relevance to your specific
needs (dangerous) to recommendations based on sophisticated computer
techniques (very reliable although far from perfect). Between these extremes, it
can include recommendations based only on your time horizon (still risky) or on
your time horizon adjusted for your risk tolerance (less risky) or any
combination of factors.

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Computerized asset allocations are based on a questionnaire you fill out. Your
answers provide the information the computer needs to become familiar with
your unique circumstances. From the questionnaire will be determined:

Your investment time horizon (mainly, your age and retirement

objectives).
Your risk threshold (how much of your capital you are willing to lose
during a given time frame), and
Your financial situation (your wealth, income, expenses, tax bracket,
liquidity needs, etc.).
Your goals (the financial goals you and your family want to achieve).

The goal of the computer analysis is to determine the best blend of asset classes,
in the right percentages, that will match your particular financial profile.

What Are the Asset Classes?

The securities that exist in todays financial markets can be divided into four
main classes: stocks, bonds, cash, and foreign holdings, with the first two
representing the major part of most portfolios. These categories can be further
subdivided by "style." Let's take a look at these classes in the context of mutual
fund investments:

Equity Funds: The style of an equity fund is a combination of both (1) the fund's
particular investment methodology (growth-oriented, value-oriented or a blend
of the two) and (2) the size of the companies in which it invests (large, medium
and small). Combining these two variables investment methodology and
company size offers a broad view of a fund's holdings and risk level. Thus, for
equity funds, there are nine possible style combinations, ranging from large

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capitalization/value for the safest funds to small capitalization/growth for the
riskiest.

Fixed Income Funds: The style of a domestic or international fixed-income fund is

to focus on the two pillars of fixed-income performance interest-rate
sensitivity (based on maturity) and credit quality. Thus, fixed-income funds are
split into three maturity groups (short-term, intermediate-term, and long-term)
and three credit-quality groups (high, medium and low). These groupings
display a portfolio's effective maturity and credit quality to provide an overall
representation of the fund's risk, given the length and quality of bonds in its
portfolio.

How Are Asset Allocation Models Built?

Simply stated, financial advisors build asset allocation models by (1) taking
historic market data on classes of securities, individual securities, interest rates
and various market conditions; (2) applying projections of future economic
conditions and other relevant factors; (3) analyzing, comparing and weighting
the data with computer programs; and (4) further analyzing the data to create
model portfolios.

There are three key areas that determine investment performance for each asset
class:

1. Expected return. This is an estimate of what the asset class will earn in the
futureboth income and capital gainbased on both historical
performance and economic projections.
2. Risk. This is measured by looking to the asset classs past performance. If
an investments returns are volatile (vary widely from year to year), it is
considered high-risk.

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 3. Correlation. Correlation is determined by viewing the extent it which asset
classes tend to rise and fall together. If there is a high correlation, a
decision to invest in these asset classes increases risk. The correct asset mix
will have a low correlation among asset classes. Correlation coefficients
are calculated by looking back over the historical performance of the asset
classes being compared.

5.5 Secret of Creating Wealth

There are a lot of ways to build wealth, but there is a simple, sure way that can
always work. It is simply to develop the habit from a young age of saving a share
of your income, say 10%. Paying this amount to your investment account must
become the same as paying your monthly rent or mortgage payment.

Developing the habit of saving money should be developed the same as the
habits of bathing, washing hands before a meal, or shaving.

If you can't have certain luxuries now and maintain your savings ritual, postpone
the luxuries now so you can enjoy them and financial security

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 Chapter 6 - Recommendations

Financial institutes, Banks, AMCs, and brokering houses increasingly looking at

wealth management to augment their revenues. Sophisticated financial products
and solutions are no longer seen as value propositions by the affluent investors,
as these products with little variation are available from all the players in the
market. The real difference stands out in the personal touch and technology of
the service provider. Based on this and my entire study on wealth management I
have chalked out some recommendations for the bank to increase market share.

The new money and mass affluent segments will experience the highest
growth. These customers are time constraint, technology savvy and will
be the major users of wealth management services. Banks that are geared
to service this segment in terms of reach, technology, products and
knowledgeable staff, will reap significant gains in market share and
profitability.

Banks should invest in profitability models and MIS tools to understand

profitability at all levels in the wealth management business as wealthy
clients generate more fees but incur higher cost due to high level of
service. Hence, banks need to strike an optimum balance between the
increased revenue and higher costs due to high level of service.
Performance should be monitored by measuring client, product, and
relationship manager and distribution channel profitability. This analysis
will unable bank to refocus its efforts on high value customer segments
and rethink strategy on unprofitable clients.

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 The success of the wealth management industry is dependent on global
and domestic economic factors. Banks need to innovate and
appropriate products and services to meet the needs of wealthy
individuals in times of economic boom as well as depression.

The decision to outsource certain services should be driven by cost

consideration. If a service is not part of a banks core offering and
competency, it may be more cost effective and prudent, to hire outside
specialists. In the end, this service will be provided more effectively, with
a greater degree of confidence, and at a lower total cost. All this will
eventually result in more satisfied clients.

Currently, I have found that banks are investing very little in training
their advisors on market and economic trends. And often banks are just
selling product. They say here is a mutual fund, a loan or a deposit. Most
advisors are dependent on newspapers and industry newsletters. After
going through the various research papers on wealth management, I think
imparting regular updates on the market and trends in the form of
internal newsletters or posting important data on the intranet helps
advisors in analyzing data before counseling their clients. Hiring product
specialists help both internal advisors as well as client in identifying
market trends opportunities well in advance. This will help in building
the clients Confidence and rebalancing the portfolio on regular intervals.

Technology has the potential to bring banks long-term cost savings,

greater efficiency and enhanced customer service. Technology tools
covering the areas of financial planning, straight through processing,
product and account aggregation and performance monitoring will unable

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 banks to enhance their service quality and responsiveness. Product
aggregation tools will enable the banks provide from different suppliers to
their clients from its own website. Account aggregation tools will enable
the customer to access account information across multiple providers
from a single banks site. And performance monitoring tools will track the
investment portfolio helps in timely corrective actions of the investment
not delivering the returns as per the expectations.

Customer retention will become critical issue going forward in this

business. Banks should have a formal mechanism like in house and
external surveys, complaint monitoring etc. to measure customer
satisfaction on an ongoing basis. The customer retention strategies will
succeed in the long term and benefit the bank increase its market share.

Banks must provide wealth management clients with interpersonal

service through help desk, financial Advisor, or Relationship Manager
depending on level of service the client is qualified. Using the internet as a
channel for information delivery, self service and communications
facilitator between the banks and the client eliminates costly paper and
people laden process to the extent possible.

Broad and deep client relationshipsthis is the essential point of

differentiation between wealth managers and other type of investment
advisors managers and speaks to the wealth managers holistic approach
to service delivery. To have an upper hand in this business I will
recommend HSBC bank to hire wealth managers over the investment
advisors as latter is more interested in the volume of the business rather
than in the profit of the client.

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 Banks must provide more comprehensive set of services to its clients
under wealth management. By doing so, the banks could expand and
strengthen relationships with existing clients and potentially attract new
clients who may be more profitable to the firm. As a result, deeper client
relationships may lead to greater profitability of success for both bank and
client.

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 REFERENCES

www.finanaceindiamart.com
www.yahoo.com
www.quote.yahoo.com
www.myiris.com
www.google.com
www.investoreducatio.org
www.moneycontrol.com

Economic times
Business Today

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