Professional Documents
Culture Documents
Wealth Management
Wealth Management
Management
What is WEALTH?
14. Gold and real estate together form nearly 92% of the
physical wealth in India.
WEALTH MANAGEMENT
Financial Planning :
Risk
Management Tax Planning
Expenditure
Estate Planning Planning
Retirement Education
Planning Planning
Gift/
Succession Philanthropic
Planning Planning
WEALTH MANAGEMENT
Family Life Cycle
Individuals and families tend to go through a "life cycle:"
The simple life cycle goes from
Empty Nest
I/ II
Older /
Single
WEALTH MANAGEMENT
2. Engaged couples
6. Single parents
7. Empty nester
WEALTH MANAGEMENT
Asset Class :
Fixed Deposits
Fixed Maturity Plans
Endowment Policies
WEALTH MANAGEMENT
DIRECT EQUITY
Unit-Linked Plans
ETF
WEALTH MANAGEMENT
RESIDENTIAL (Plots,
Apartments, Bungalows)
COMMERCIAL (Plots,
Buildings)
Livestock
WEALTH MANAGEMENT
ASSET ALLOCATION
Contd..
WEALTH MANAGEMENT
ASSET ALLOCATION STRATEGIES
Contd..
WEALTH MANAGEMENT
Status
Assessment
Strategic Asset
Portfolio Review
Allocation
Wealth
Management
Approach
Portfolio Tactical Asset
Implementation Allocation
Portfolio
Construction
WEALTH MANAGEMENT PROCESS
DISCOVERY
Identifying Values &
Goals
PLANNING
Choose Services &
Providers
WEALTH MANAGEMENT PROCESS
1. Discovery :
• Family, Key Issues
• Goals, Retirement Plans, Special Needs
• Values
• Comprehensive view of current financial status
• Risk tolerance, Time horizon, Attitude towards volatility
2. Analysis, Recommendations :
• Analyse Personal/ Financial information
• Income goals, Probability Analysis
• Liability Analysis
• Risks & Threats
• Coordination with external advisors
• Action Plan : Growth, Preservation, Transfer of wealth
WEALTH MANAGEMENT PROCESS
3. Implementation :
• Retirement & Education Plans
• Estate Plan, Trust/ Philanthropic Plans
• Borrowing Plans
• Diversification, Hedging, Insurance, Tax minimisation
• Family Mission & bylaws
• Asset Management
4. Monitoring :
• Track Progress vis-à-vis Goals
• Set/ Follow Guidelines for liquidity & asset allocation
• Alerts re. Shortfalls and Deviations
• Performance Reporting
• Online Access
Ethical Principles in Wealth Management
Ethics in Wealth Management :
Code of Ethics :
Structure :
• Individuals
• Families
• Institutions/ Trusts/ Corporates/ Governments
Location :
• Domestic
• Overseas
• Multilocational
WEALTH MANAGEMENT
• Wealth appreciation
• Wealth Transfer
• Communication/ Information
• Regulatory Compliance
WEALTH MANAGEMENT
Private Banking :
Family Office
Family Office
The concept of Family Office originated in Europe in the 18th
century.
Family Office is utilized when assets grow in size and
complexity, demanding full-time professional management.
The world's most affluent families establish the Family Office
to ensure their wealth is well preserved for their heirs.
The scope of Family Office is significantly broader than a pure
investment advisory. It also facilitates the provision of other
value added services to provide a complete solution.
This ensures that a client has a single point contact for taking
care of wealth, family and administrative needs.
WEALTH MANAGEMENT
Services provided by Family Office
Diverse range of services for Ultra High Net-worth
Individuals (UHNI) families:
➢ Wealth Advisory and Investment Services
➢ Banking and Credit
➢ Estate Planning Services
➢ Consolidated Reporting
➢ Referral for Philanthropy Services
➢ Professional, Taxation and Administrative Services
➢ Concierge Services
WEALTH MANAGEMENT
Financial Assets :
They are risk free instruments and therefore the returns are
not so attractive.
T-Bills are available both in primary market as well as
secondary market. They are issued with three-month, six-
month and one-year maturity periods.
Types of Bonds :
• Government Bonds
• Corporate Bonds
• Banks and other financial institutions Bonds
• Tax-Saving Bonds
Price FV RoNW
BV EPS P/E D/E % PH%
P&G 10159 10 377.27 129.12 78.68 0 46.50 71
HUL 1819 1 35.34 27.88 65.63 0 79 67
By Structure :
• Open-Ended
• Close-Ended
By Investment Objective :
• Growth Funds
• Income Funds
• Balanced Funds
• Money Market Funds
Others :
• Tax-Saving Schemes
• Index Schemes
• Sectoral Schemes
• Thematic Schemes
WEALTH MANAGEMENT
The acquirer (PE firm) seeks to purchase the target with funds
acquired through the use of the target as a sort of collateral. In
essence, in a leveraged buyout, the acquiring PE firms are able
to purchase companies with only having to put up a fraction of
the purchase price.
WEALTH MANAGEMENT
Benefits of SIP
5. Convenient
6. Power of compounding
WEALTH MANAGEMENT
Non-Financial Investments :
1. Real Estate
2. Collectables
3. Wine
4. Forestry
5. Gold
WEALTH MANAGEMENT
• Most REITs in India will have their shares listed on the stock
exchange. These listings will provide the retail investors a
good and new opportunity to participate in the real estate
growth story in India.
Asset Management
Ratios
Ideal Ratios in Personal Finance:
International Investment :
International investing is the strategy of selecting globally-
based investment instruments as part of an investment
portfolio.
International investing includes such investment vehicles as
mutual funds, American Depository Receipts, exchange-
traded funds (ETFs) or direct investments in foreign markets.
Advantages offered by International Investments:
1. Market opportunities
2. Diversification
3. Benefits of currency fluctuations
4. Wider choices
WEALTH MANAGEMENT
✓ Updated
✓ Comprehensive
✓ Timely
✓ Authentic
✓ Precise
✓ Informative
WEALTH MANAGEMENT
1. Performance Summary
(Filters: Segment/Strategy or Sector)
3. Contributions/ Withdrawals
(Filters : Types of contributions or withdrawals)
Contd..
WEALTH MANAGEMENT
4. Asset Mix
(Filters: Asset Size/ Class)
5. Equity Holdings
(Filters: Top 10/ 20)
6. Tax-Lot Holdings
(Filters : Acquisition date and tax implications)
Contd..
WEALTH MANAGEMENT
8. Sector Allocation
(Filters: % of Equity/ Largest sectors)
9. Country Allocation
(Filters: % of Investments/ Largest countries)
10. Transactions
(Filters : Transaction types/ Size)
Restoration
Tech.
of Investor
Advances
Confidence
WEALTH
MANAGEMENT
Emerging
Regulation
Markets