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Fundamentals of BFWM
Fundamentals of BFWM
Fundamentals of BFWM
Wealth Management
Vinay Dutta
Senior Professor in Finance
FORE School of Management, New Delhi
Three areas of discipline of finance
Discussion Issue
?
Prescriptive Descriptive
Portfolio Assets Current Price Cost Basis Yesterday's Close Year-end Close
A 10 7 11 19
B 12 13 13 13
C 14 9 15 13
Condition of well-being
Wealth Creation
1 0 4.5
2 0.6932 4
3 1.0987 3.5
5 1.6096 3
Utility
7 1.9461
2.5
Utility
2
10 2.3028
1.5
20 2.9960
1
30 3.4016
0.5
50 3.9124 0
100 4.6056 0 10 20 30 40 50 60 70
Wealth in Rs lakh
80 90 100
KEY to Learning
K-Keep E-Educating Y-Yourself (Be a life long learner).
Money Redefined
M Materialistic orientation
N Networking
E Emotions, Engagement and Enjoyment
Y Yield optimization
Income versus Wealth
Financial Freedom
Learning
Financial freedom begins not in a Bank or
even in financial planner’s office but in your
mind
Pursuing your passion is fulfilling
and leads to financial freedom
?
Money miser (Kanjus)
versus
Money wiser
Money miser (Kanjus)
Money wiser
PLANNING YOUR
RETIREMENT AND PERSONAL FINANCES
ESTATE PLANNING OBTAINING
INVESTING YOUR
FINANCIAL RESOURCES
INVESTING
PLANNING
INSURING YOUR
RESOURCES MANAGING RISK SAVING
BORROWING
SPENDING
MANAGING YOUR
PERSONAL FINANCES
MAKING YOUR PURCHASING
DECISIONS
Discussion Issue
?
The Perils of Procrastination
Solution to the Perils of Procrastination