ON
AT
ACKNOWLEDGEMENT
WEALTH MANAGEMENT
SECTOR
AN ANALYSIS
OF
MARKET
COMPANY GUIDE : FACULTY
GUIDE :
INDEX
1 Executive Summary
3 Company Profile
4 Theoretical Background**
5 Projections
6 Bibliography
6
**
1. INTRODUCTION
3 Solution Framework
Advisory
Investment Processing (transaction oriented)
Custody, Safekeeping and Asset Servicing
End-to-end Investment Lifecycle Management
Financial Planning
7
Client Profiling
Investment Objective
Strategy Implementation
Portfolio Management
Portfolio Administration
7. Solution Framework
• Custodian Services
• Trust Services
• Retirement Plan Services
• Asset Mix
•
• List Of Different Asset Class
Fixed Deposits
Merits and Demerits
Interest rates on FDs
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Effective Return
MUTUAL FUND
Open-end fund
Exchange-traded funds
Equity funds
Capitalization
Bond funds
Money market funds
Funds of funds
Hedge funds
Equity investment
Diversified portfolio
Tie-ups with galleries
REAL ESTATE FUND
Insurance Product
General Insurance
Unit Linked Insurance Plan (ULIP)
Structured Product
Composition
Risks
GOLD
Bank failures
Low or negative real interest rates
War, invasion, looting, crisis
Currency
Portfolio composition of currency
• Kotak securities
INTRODUCTION
PRODUCTS
ASSET CLASSES USED
ASSET SIZE
INVESTMENT PHILOSPHY
• Morgan Stanley
INTRODUCTION
PRODUCTS
ASSET CLASSES USED
ASSET SIZE
INVESTMENT PHILOSPHY
INTRODUCTION
PRODUCTS
ASSET CLASSES USED
ASSET SIZE
INVESTMENT PHILOSOPHY
• Standard chartered
INTRODUCTION
PRODUCTS
PRODUCTS
ASSET SIZE
INVESTMENT PHILOSPHY
PRODUCTS
ASSET SIZE
INVESTMENT PHILOSOPHY
14
• Citi Bank
INTRODUCTION
PRODUCTS
ASSET SIZE
ASSET CLASSES USED
INVESTMENT PHILSPOHY
EXECUTIVE SUMMARY
Axis Bank Wealth Management provides discretionary wealth
management service, in which wealth managers give
recommendations to customers and invest according to
customer discretion.
My Project is the study of Wealth Management Sector,An
Analysis Of Existing And Potential Market.
OBJECTIVES
1) Through the past results, to identify the potential of wealth
management sector.
2) Understanding company’s procedure in wealth management
department.
3) To know the comparative position of the companies offering
wealth management services.
4) To have a general notion on different asset classes available
in financial market.
5) To have a conceptualized view on wealth mangagment
services.
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COMPANY PROFILE
Axis Bank was the first of the new private banks to have begun
operations in 1994, after the Government of India allowed new
private banks to be established. The Bank was promoted
jointly by the Administrator of the specified undertaking of the
Unit Trust of India (UTI - I), Life Insurance Corporation of India
(LIC) and General Insurance Corporation of India (GIC) and
other four PSU insurance companies, i.e. National Insurance
Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance
Company Ltd.
The Bank today is capitalized to the extent of Rs. 358.56 crores
with the public holding (other than promoters) at 57.60%.
The Bank’s Registered Office is at Ahmedabad and its Central
Office is located at Mumbai. Presently, the Bank has a very
wide network of more than 701 branch offices and Extension
Counters. The Bank has a network of over 2854 ATMs providing
24 hrs a day banking convenience to its customers. This is one
of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking
and is committed to adopting the best industry practices
internationally in order to achieve excellence.
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Theoretical Background
INTRODUCTION
The term Wealth management formed with two words Wealth &
Management. The Meaning of Management They have already seen in
the steering introduction. The meaning of Wealth is – Funds, Assets,
investments and cash it means the term Wealth management deft with
funds Asset, instrument, cash and any other item of similar nature.
While defining Wealth Management They have to think in planned
manner. “Wealth Management is an all inclusive set of strategies that
aims to grow, manage, protect and distribute assets in a much
planned systematic and integrated manner”.
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• 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.
CAREER
STUDENT START OF CAREER RETIREMENT
ESTABLISHED
* Deposit based comfort * Comfort A/c with credit limit * Premium A/c * Premium A/c
A/c
* Gold Card * Platinum Card
Liquidity * Credit cards * Platinum Card
Management * Overnight money A/c* Overnight money A/c
(Cash Mgt) * Money Market & Fixed Income Fund* Money Market & Fixed Income Fund
* Near Money Market Fund * Near Money Market Fund
* ZINS Plus * ZINS Plus
* Special Investments
* Top portfolio* Top portfolio* Top portfolio
Wealth
* Flagship portfolio* Flagship portfolio* Flagship portfolio
Formation
* Titan portfolio * Titan portfolio* Titan portfolio
(Savings Plans)
* Capital formation benefit funds
* Absolute Return Portfolio
Wealth * Holding and Private Equities
Optimization * Modular Wealth Management
(Lump sum * Individual Wealth Management
Investment) * Premium Portfolio
* Titan Portfolio
• Depending on the mandate of the services given to the Wealth Manager, wealth
management services could be Packaged at various levels
a) Advisory
Wealth manger’s role is limited to the extent of providing guidance on investment
/ financial planning and tax advisory, based on client profile. Investment decisions
are solely taken by the client, as per his /her own judgment.
a) Financial Planning
Client Profiling
Investment Objective
c) Strategy Implementation
Having decided the portfolio constituents and its composition,
transactions to acquire specific instruments and identified
asset class is initiated. As acquisition cost would be having
bearing on overall performance of the portfolio, many times
process of asset acquisition may be spread over a period of
time to take care of market movement and acquire the asset at
favourable price range.
d) Portfolio Management
Portfolio Administration
Portfolio Administration involves handling of investment
processes and asset servicing. This would also require tax
management, portfolio accounting, fee administration, client
reporting, document management and general administration
relating with portfolio and client. This function would involve
back office administration and custodial services to manage
transaction processes (trading and settlement) - interfacing
with brokers/dealers/agents, Fund managers, Custodians, Cash
Agent and many other market intermediaries.
Solution Framework
Generic services offering model is going to draw big blank in
case of wealth management services. A HNWI client expects
exclusiveness in services in a normal manner. In highly
competitive market, key to success for a firm lies in offering
exclusiveness in services delivery (high quality services on
most personalized basis), going beyond the client
expectations.
A solution framework with considered inclusion of following
key elements would help firms in meeting and exceeding client
needs towards sustainable business growth.
• Quality of Service Level
.
40
41
Transactors:
• Product Expert: Handles high-volume transactions involving sophisticated products
or asset classes, such as foreign exchange derivatives.
• Investment Broker: Handles transactions involving basic asset classes, such as
equities, fixed income and options.
Investment Managers:
• Investment Advisor: Offers strategic investment planning, as well as playing a hands-
on role in constructing, reviewing and rebalancing client portfolios.
• Relationship Manager: Establishes and nurtures client relationships, delegating
portfolio management to internal or external managers.
Wealth Planners:
• Wealth Planner: Offers holistic advice in accordance with client’s finances and short-
/long-term goals, such as real estate, retirement and generational wealth transfer.
• Personal CFO: Aspires to provide quasi family-office services, often acting in a lead
discretionary role coordinating with the client’s other trusted advisors.
49
LIMITATIONS
Asset Mix
2. Mutual Fund
3. Equity
4 Commodities
5. Art Fund
6. Real-Estate Fund
7. Insurance product
8. Structured product
9. Gold
10.Currency
11.Oil
Fixed Deposits
With FDs you deposit a lump sum of money for a fixed period ranging
from a few weeks to a few years and earn a pre-determined rate of
interest. FDs are offered by both banks and companies though putting
your money with the latter is generally considered riskier.
The main advantage is that FDs from reputed banks are a very safe
investment because such banks are carefully regulated by the Reserve
Bank of India, RBI, the banking regulator in India.
Note that company FDs isn’t as safe as bank FDs because if the
company goes bankrupt you may lose your money. Make sure you
check the credit rating of a company before investing in its FDs. You
should be especially wary of companies which offer interest rates
significantly higher than the average to attract your money.
The other advantage of FDs is that you have the option of receiving
regular income through the interest payments that are made every
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The rate of interest on FDs varies according to the maturity with longer
deposits generally earning a higher interest rate. Interest paid on a
fixed deposit is paid either monthly or quarterly according to the
investor’s choice. So if you invest Rs 3 lakhs in a one year fixed
deposit which pays 8 per cent you can earn Rs 2,000 of interest every
month or Rs 6,000 of interest every quarter.
The rate of interest on FDs varies according to the maturity with longer
deposits generally earning a higher interest rate. Here are the interest
rates offered by ICICI Bank on their FDs. Note that FDs vary quite a bit
from bank to bank so you should search around before investing.
Effective Return
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MUTUAL FUND
Open-end fund
The term mutual fund is the common name for what is classified as an
open-end investment company by the SEC. Being open-ended means
that, at the end of every day, the fund issues new shares to investors
and buys back shares from investors wishing to leave the fund.
Exchange-traded funds
Equity funds
Equity funds, which consist mainly of stock investments, are the most
common type of mutual fund. Equity funds hold 50 percent of all
amounts invested in mutual funds in the United States.Often equity
funds focus investments on particular strategies and certain types of
issuers.
63
• Capitalization
Bond funds
Bond funds account for 18% of mutual fund asse Types of bond funds
include term funds, which have a fixed set of time (short-, medium-,
or long-term) before they mature. Municipal bond funds generally have
loTheyr returns, but have tax advantages and loTheyr risk. High-yield
bond funds invest in corporate bonds, including high-yield or junk
bonds. With the potential for high yield, these bonds also come with
greater risk.
Money market funds hold 26% of mutual fund assets in the United
States. Money market funds entail the least risk, as Well as loTheyr
rates of return. Unlike certificates of deposit (CDs), money market
shares are liquid and redeemable at any time. The interest rate quoted
by money market funds is known as the 7 Day SEC Yield.
Funds of funds
64
Are mutual funds which invest in other underlying mutual funds (i.e.,
they are funds comprised of other funds). The funds at the underlying
level are typically funds which an investor can invest in individually. A
fund of funds will typically charge a management fee which is smaller
than that of a normal fund because it is considered a fee charged for
asset allocation services. The fees charged at the underlying fund level
do not pass through the statement of operations, but are usually
disclosed in the fund’s annual report, prospectus, or statement of
additional information. The fund should be evaluated on the
combination of the fund-level expenses and underlying fund expenses,
as these both reduce the return to the investor.
Most FoFs invest in affiliated funds (i.e., mutual funds managed by the
same advisor), although some invest in funds managed by other
(unaffiliated) advisors. The cost associated with investing in an
unaffiliated underlying fund is most often higher than investing in an
affiliated underlying because of the investment management research
involved in investing in fund advised by a different advisor. Recently,
FoFs have been classified into those that are actively managed (in
which the investment advisor reallocates frequently among the
underlying funds in order to adjust to changing market conditions) and
those that are passively managed (the investment advisor allocates
assets on the basis of on an allocation model which is rebalanced on a
regular basis).
usually vary by the time the investor would like to retire: 2020, 2030,
2050, etc. The more distant the target retirement date, the more
aggressive the asset mix.
Hedge funds
Hedge funds in the United States are pooled investment funds with
loose SEC regulation and should not be confused with mutual funds.
Some hedge fund managers are required to register with SEC as
investment advisers under the Investment Advisers Act. The Act does
not require an adviser to follow or avoid any particular investment
strategies, nor does it require or prohibit specific investments. Hedge
funds typically charge a management fee of 1% or more, plus a
“performance fee” of 20% of the hedge fund’s profits. There may be a
“lock-up” period, during which an investor cannot cash in shares. A
variation of the hedge strategy is the 130-30 fund for individual
investors.
Latest Asset Under Management for all Mutual Fund houses, sales & redemption figures..
No. of
Mutual Fund Name Asset Under Management
Schemes*
Net inc/dec in
As on Corpus As on Corpus
corpus
ABN AMRO Mutual 368 Jun 30, 6,993.19 May 31, 6,066.30
Fund 2008 2008
926.894
AIG Global 54 Jun 30, 3,206.23 May 31, 4,138.86
Investment Group 2008 2008
Mutual Fund
-932.63
Benchmark Mutual 12 Feb 29, 4,954.72 Jan 31, 5,611.00
Fund 2008 2008
-656.276
348 Jun 30, 37,446.00 May 31, 41,426.64
Birla Mutual Fund
2008 2008
-3980.64
22 Jun 30, 53.86 May 31, 64.83
BOB Mutual Fund
2008 2008
-10.968
Canara Robeco 59 Jun 30, 3,913.65 May 30, 4,122.37
Mutual Fund 2008 2008
-208.72
DBS Chola Mutual 78 Jun 30, 2,249.56 May 30, 2,100.14
Fund 2008 2008
149.42
Deutsche Mutual 199 Apr 30, 12,740.00 Mar 31, 11,996.00
Fund 2008 2008
744
DSP Merrill Lynch 226 Feb 29, 19,940.40 Jan 31, 19,136.00
Mutual Fund 2008 2008
804.396
38 Mar 31, 173.42 Feb 29, 146.93
Escorts Mutual Fund
2008 2008
26.491
39 May 31, 7,898.64 Apr 30, 8,943.36
Fidelity Mutual Fund
2008 2008
-1044.72
Franklin Templeton 241 Mar 31, 25,621.97 Feb 29, 29,424.58
Investments 2008 2008
-3802.607
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Equity investment
The equities held by private individuals are often held via mutual funds
or other forms of pooled investment vehicle, many of which have
quoted prices that are listed in financial newspapers or magazines; the
mutual funds are typically managed by prominent fund management
firms (e.g. Fidelity Investments or The Vanguard Group). Such
holdings allow individual investors to obtain the diversification of the
fund(s) and to obtain the skill of the professional fund managers in
charge of the fund(s). An alternative, usually employed by large
private investors and pension funds, is to hold shares directly;in the
institutional environment many clients that own portfolios have what
are called segregated funds as opposed to, or in addition to, the
pooled e.g. mutual fund alternative.
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Commodities Market
72
This article focuses on the history and current debates regarding global
commodity markets. It covers physical product (food, metals,
electricity) markets but not the ways that services, including those of
governments, nor investment, nor debt, can be seen as a commodity.
Articles on reinsurance markets, stock markets, bond markets and
currency markets cover those concerns separately and in more depth.
One focus of this article is the relationship between simple commodity
money and the more complex instruments offered in the commodity
markets.
ART FUND
WITH prices of paintings rising 10 times in the last two years, three
new financial entities have launched ‘art advisory’ services as part of
Wealth management services. While Citibank has been providing art
advisory services like art insurance, art storage and using art as a
tradable collateral for some time, the recent surge in prices has driven
Yes Bank, ABN Amro and Dawnay Day to start this service.
The works of M.F. Hussain, Jatin Das or Anjolie Ela Menon are sought
after by art lovers not only for their aesthethic value but also as an
asset. Art galleries are involved in art valuations, i.e. mapping the
pricing history of an artist or research on art.
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Diversified portfolio
“The bank is planning tie-ups with real estate consultant agencies. The
service will largely cater to non-resident Indians seeking opportunities
to invest in real estate in the country,”.
In the art segment, tie-up with art galleries. “Contemporary Indian art
will be at focus. The hiring specialists in the field for advisory,” High
networth individuals in India are increasingly looking at contemporary
Indian art as a good investment. With the advent of private art funds
and galleries, art is becoming an emerging asset class.
According to the banks, some clients also invest in these asset classes
to minimise risk because they are looking at protecting their capital.
Investment in these asset classes requires a review of client’s age,
personal ability to take risk and most importantly, client’s interest.
What percentage of assets would be allocated to alternative assets
would depend on the client’s interest and ability to take risk.
1. HDFC Property Fund- HDFC India Real Estate Fund (HI-REF), the
first scheme HDFC Property Fund, invest in all the stages of the
real estate projects.
The further involvement of the real estate mutual funds have improved
the quality of the construction practices. The 10th Five-Year Plan has
proposed that Securities and Exchange Board of India would regulate
the India real estate mutual funds.
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1.Warburg Pincus
2.Blackstone Group
3.Broadstreet
4.Morgan Stanley Real Estate Fund
5.Columbia Endowment Fund
6.Hines
7.Tishman Speyer
8.Sam Zell’s Equity International
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Insurance Product
78
ULIP came into play in the 1960s and is popular in many countries in
the world. The reason that is attributed to the wide spread popularity
of ULIP is because of the transparency and the flexibility which it
offers.
Structured Product
Composition
Risks
GOLD
Bank failures
When dollars were fully convertible into gold, both were regarded as money.
However, most people preferred to carry around paper banknotes rather than the
somewhat heavier and less divisible gold coins. If people feared their bank
would fail, a bank run might have been the result. This is what happened in the
USA during the Great Depression of the 1930s, leading President
Roosevelt to impose a national emergency and to outlaw the holding of gold by
US citizens known as Executive Order 6102 which has since been ended.
In times of national crisis, people fear that their assets may be seized and that the
currency may become worthless. They see gold as a solid asset which will always
buy food or transportation. Thus in times of great uncertainty, particularly when
war is feared, the demand for gold rises.
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Currency
The modern hedge fund manager’s liberal tongue-in-cheek
definition is: “If it moves up and down independently, then it’s
an asset class.” While currencies surely do a lot of moving up
and down, they also stand out for other reasons:
• The global foreign-exchange (FX) market can be considered by far the largest
marketplace in the world, not only geographically but also with reference to trading
volume. The daily turnover is growing constantly and has long ago surpassed the $1
trillion mark: forty times the size of world trade.
• An important difference between currencies and other markets is that currency prices
allow us to analyse also their
reciprocal values. A falling dollar/yen is synonymous with a rising yen because the
dollar can be expressed in yen and, vice versa, the yen in dollars. By comparison, the
dollar is never measured in units, as the Dow Jones for example.
• For the same reason the expression ‘short sale’ – so much maligned in equity trading
– does not exist in currency trading because the short sale of a currency is equivalent
to a purchase of the other currency.
• For similar reasons, the currency market cannot suffer a ‘crash’ (such as the stock
market crashes of 1929 or 1987) through which the wealth of all market participants
dwindles. In the currency market eachloss is matched by an equivalent gain of the
counter-party.
• Another unique feature of the currency market is that it is active without interruption
‘round-the-clock’.
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Kotak securities
INTRODUCTION
is handling Wealth management department with a name of
Kotak portfolio management.
PRODUCTS
• GEMS Portfolio
• Origin
• Select Portfolio
• Select Optima
• Klassic Portfolio - Flexi
• Investguard Portfolio
• Core Portfolio
• NRI
Asset Size
Morgan Stanley
INTRODUCTION
Morgan Stanley is a leading global financial services firm providing a
wide range of investment banking, securities, investment management
and Wealth management services. The Firm’s employees serve clients
worldwide including corporations, governments, institutions and
individuals from more than 600 offices in 33 countries
Morgan Stanley which has been active in the country since 1993 and is
seeking to develop an integrated platform in India, which encompasses
the full range of businesses the Firm conducts globally.
PRODUCTS
90
• Mutual funds
• Structured products
• Insurance products
• Fixed deposits.
Asset size
The India Magnum Fund, an offshore fund set up in 1989, marked the
entry of Morgan Stanley in the Indian market. In 1994, Morgan
Stanley launched its first domestic fund, Morgan Stanley Growth Fund
(MSGF). As of December 31, 2007, Morgan Stanley Rs 4380 crores in
assets under management.
INVESTMENT PHILOSPHY
INTRODUCTION
In today’s complex financial environment, investors have
unique needs which are derived from their risk appetite and
financial goals. But regardless of this, every investor seeks to
maximize his returns on investments without capital erosion.
PRODUCTS
• Value Portfolio
• Bull’s Eye Portfolio
• Next Trillion Dollar Opportunity Portfolio
Asset Size
Our investment process is solid and consistent at its core, yet dynamic
in its application. The premise, as outlined above, remains constant. At
the same time, we continually update its application for the most
current economic climate so as to keep our investment
recommendations up-to-date and relevant. Additionally, when applied
to each client’s portfolio, the process accommodates that client’s
specific situation, time horizon, risk tolerance, and other factors so
that the result is a truly customized portfolio.
95
• Portfolio management
• Art Intiative
The new brand for the venture-Religare Macquarie Private Wealth shall
strive to proactively manage their Wealth and is hungry and keen to
bring about a much needed refreshingly different paradigm shift in the
Indian market place.
96
Religare Macquarie Private Wealth shall draw strength and its core
essence from the values of Religare’s “Diligence” and Macquarie’s
“Forward Thinking”.
PRODUCTS :
• Panther
• Tortoise
• • Elephant
• Caterpillar
• Leo
• Panther
• Tortoise
• Elephant
100 index. This plan is suitable for the “Low Risk Low Return” investor
with a strategy to invest in blue chip companies, as these companies
have steady performance and reduce liquidity risk in the market.
• Caterpillar
• Leo
The RAI will provide a platform for artists of all ages, genres, and
statures. They are already in the process of creating a transparent and
highly rich infrastructure that would involve cataloguing,
documentation, art research, and the development of an art aesthetic
on an institutional basis. RAI will work closely with the Indian art and
design schools on the issues such as the curriculum and resources to
bring them into the same quality domain as their international
counterparts.
ASSET SIZE :
Investment Philosophy
Standard chartered
INTRODUCTION
PRODUCTS :
Excel Banking
What’s more, you also get fee waivers on premium savings and
current accounts and preferred pricing on a range of complementary
banking products and services.
101
Parivaar Account
Parivaar is much more than a regular Savings Account. It allows you maintain
your individual identity while allowing you to tap your family’s financial strength.
Here are some of the features of the Parivaar savings account :
• Your family can maintain individual savings accounts with the benefit of
clubbing balances in grouped accounts.
• Anytime, anywhere access to accounts through ATMs, Phone Banking and
Online Banking.
• Globally valid ATM-cum-debit card can be used at 3,26,000 merchant outlets in
India and 14 million outlets worldwide.
• Equities
• Debts
• Mutual funds.
102
• Commodities
• Structured Products
ASSET SIZE :
INVESTMENT PHILOSPHY:
Our appreciation that every investor is complex and different and can
have complex needs, has led us to our development of a highly
innovative new approach that we call our investment philosophy. We
believe it radically improves the management of private client
investments.
PRODUCTS
INVESTMENT SERVICES : They recognize financial needs vary
and there is no “one-size-fits all” approach. ABN AMRO
Investment Services brings to you an unmatched blend of
personalized services and an array of innovative and exclusive
products suited for each of your investment needs. Whether
you are in India or abroad, They extend Their hand of
partnership as your trusted financial advisors.
Their expert Investment Counselors ensure that your individual
risk profile is drawn so that They can cater to your specific and
precise investment needs. Optimal asset allocation among a
wide range of investment products helps to create a portfolio
best suited to your requirements and preferences, while
maintaining the best balance between risk and return
ASSET SIZE
106
US $40.40cr
INVESTMENT PHILOSPHY
The main objective is to help you to preserve your wealth in line with
your investment objectives.
PRODUCTS
• Signature Portfolio
• Strategic Portfolio.
ASSET SIZE
Globally, the Group Investment Business currently manages
and distributes assets over US $ 297 billion worldwide, at the
close of May 2006. Assets, which range from retail mutual
funds and money market funds to lifecycle products to
portfolios for private clients and institutions.
109
INVESTMENT PHILOSOPHY
Need-based sales approach with innovation
Our team works to suggest financial solutions based on your
risk appetite, profile and needs. Using customer insight, we
have developed a financial planning tool. It analyses and
generates a comprehensive financial plan based on your
existing financial position, expected future cash flows,
inflation and identified financial objectives. Our Relationship
Managers extensively use this tool to do financial planning for
you taking into account your long-term objectives and / or
medium to short term requirements.
For consistent and uniform delivery of financial planning as per
the defined customer need centric process, there is a
dedicated, independent Sales Quality team to conduct regular
quality checks close to the point-of-sale.
White-listed funds
The concept of white listed funds lies in the bank’s open
architecture model, which lays emphasis on meritocracy. We
carefully look at various products available in the market and
after thorough due diligence select product providers /
schemes which adequately correspond to the needs of our
customers. White listed funds are selected based on various
proprietary models that are used for intense quantitative
analysis. These funds help our clients build a long-term
portfolio and in achieving long-term financial goals.
Technology is a potent weapon
For consistency in the manner in which our Relationship
Managers identify customer needs and suggest suitable
solutions, we extensively leverage technology to support our
sales process. Our indigenously developed systems like Wealth
Management System, Financial Planning System and Customer
Relationship Management System have been built basis
customer insights. We constantly look at evolving these
systems to address sales process requirements arising out of
dynamically changing market conditions and customer needs.
We therefore treat technology as a vital ally in executing our
philosophy of customer need centricity in a structured and
uniform fashion.
Sharing the knowledge
We frequently organise wealth management events and
investment seminars, where you can interact with investment
experts and fund managers. This provides us a platform to
know and understand the market and economic developments
and trends.
110
Citi Bank
INTRODUCTION
Citi has the largest footprint among wealth managers in the
Asia Pacific with more than 20 offices across the region. Over
2,000 wealth management professionals, including 600-plus
private bankers, financial advisors and investment specialists,
serve 6000 high net worth individuals and families, including
half of all billionaires in Asia ex-Japan. Citi Global Wealth
Management is a top-tier global wealth manager providing
some of the best institutional capabilities available today.
Serving both private and institutional clients, Citi Global
Wealth Management taps the strength and resources of
Citigroup to maximize value and service.
The Global Wealth Management division at Citi comprises three
of the most respected brands in wealth management:
PRODUCTS
• Citi Private Bank
• Citi Smith Barney
• Citi Investment Research.
INSURANCE PRODUCTS :
Structured products :
Art advisory services :-
In today’s market, art presents an attractive investment
option. To assist you with advice on various art investments, or
to help you in buying or selling art, Citigold has tied up with a
111
INVESTMENT PHILSPOHY
INTRODUCTION
In India ICICI bank is a very Well known banks in the field of Wealth
management. ICICI Bank will float subsidiary for the purpose of WM
activities in Canada & other market even as ICICI has rolled out ICICI
Group Global Private Clients for those with net worth of $ 1 million or
more. ICICI GCPC launched their business in Dubai very recently in
the month of April-08 and caught 2500 clients. They are going to add
another 1000 high network clients this year.
ICICI Bank is using the services of global players like Merrill Lynch,
City group, and UBS for catching the clients for Wealth Management
business. ICICI Bank and its subsidiaries are engaged in the
development of various attractive products (services) for the clients
with net worth of $ 1 million.
The eyes of ICICI Group Global Pvt. Clients on the rising number of
dollar millionaires at present they are 100,000 in number in few year
the number will definitely increase. India’s No.2 lender banker ICICI
expects to sustain the 70% growth in its private Wealth management
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PRODUCTS
N.A
Asset SIZE
Rs.1230 Cr.
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One of India’s leading private sector banker Axis bank also combined
with Banque Privee Edmond de Rothschild Europe based Wealth
management expertise institution & is going to make new standard for
the NRI’s Wealth management.
The LCF Rothschild group has based its reputation in the area of
Wealth management on its big banking experience. Actually the
institution is engaged in the task of providing financial advise to the
Europe’s leading families, Government and various corporations for the
last ‘7’ generations.
Asset Size
Rs.181.20 Cr.
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1. Any customer who has a portfolio having more than 30 lakhs can
request for wealth management services at any branch of Axis
Bank.
2. After the request of customer the wealth mangment relationship
manager will meet the customer and make a view about his risk
taking ability according to his current financial position and
future needs.
3. The customer has to fill a risk profilier form,details of which is
interpreted in a software called “mohar” by which the analyst will
come to know the actual risk taking ability of customer.
4. Documentation :- The customer has to make available the
following documents to the Bank :-
b. 8 Photographs
5. The client has to open four accounts with the Axis Bank :-
8. All the transaction done for the customer either sell or purchase
of the asset classes is done fully electronically through “Mohar”
software.
General Characterstics :-
Investment Needs :-
Recommendation :-
Negotiate tax-efficient salary.
Budget and keep track of expenses.
Use credit card prudently.
Save regularly and consciously.
90 % investments in equity.
10 % investment in debt.
General Characteristics :-
Investment Needs :-
Shelter income from taxes.
Plan for children’s higher education
Start to build capital for retirement ,if not started
already.
Maintain an emergency fund & keep adding to it.
Buy a home/service a home loan.
Save for holidays/recreation.
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General Profile :-
Usually at the peak of carrer
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Grown up children.
May need take care of dependent children.
Retirement is not very distant.
Could opt for VRS.
May have a inherited portfolio of investments from
parents.
General Characterstics :-
surplus fund higher than in previous life stage.
High outgo on household expenses.
Childrens expenses continue to increase.
Life style expenses still high.
2-3 major oputflows of money (overseas
education/marriage/set up business).
High liquidity is a must.
Sensitized to medical and retirement needs.
Recommendations :-
Decide when to reire.
Acquire all necessary consumer durables while still to
plug future outflows.
Consolidate and continue with wealth creation
Start de-riskiking yoyr portfolio.
Revisit and revise financial goals.
Rebalance your portfolio as per future needs.
Medical insurance a must.
Pension plans must be started if not done already.
Prepare a will.
Recommended Investment Style :-
Greater vunerability to risk hence focus on moderate
balanced growth.
Shift focus from capital growth to capital preservation.
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In the annual survey done by Cap Gemini, SA and Merrill Lynch it was
found that ranks of millionaires grew 6% in the previous year, because
the number of richer people grew in India & China where India is
competing China. India & China posted the biggest gain in millionaires
advancing by 23% & 20% respectively.
The repercussions of the mutual fund scandal of the 1990s are still
evident. Many Indian retail customers averse to diversifying their asset
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PROJECTIONS
After studying the overall concept of Wealth management we
can say that it has various aspects some are favorable and
friendly for the economy and some are very dangerous for the
economy.
BIBLOGRAPHY
2.www.moneycontrol.com.
3.www.google.com.