S. P. MANDALI’S PRIN L. N.

WELINGKAR INSTITUTE OF MANAGEMENT

DEVELOPMENT & RESEARCH

SUMMER INTERNSHIP PROJECT REPORT

ON

COMPARATIVE STUDY OF VARIOUS ALTERNATIVES AVAILABLE IN

MARKET FOR WEALTH MANAGEMENT

BY

IYER MAHALAKSHMI NATARAJAN

MMS 2018 – 20

SEMESTER III

SPECIALISATION: FINANCE

ROLL NO :- 68
 NO PLAGIARISM DECLARATION BY THE STUDENT

I, the undersigned, hereby declare that the project titled “Comparative study of various
alternatives available in market for Wealth Management”

(a) Has been prepared by me towards the partial fulfilment for the award of Master in
Management Studies - Finance under the guidance of Vandana Sohoni Ma’am.
S. P. Mandali’s Prin. L. N. Welingkar Institute of Management Development and Research,
Mumbai.
(b) This work is original and has not been submitted for any degree/diploma in this or any other
Institute/Organization.
(c) The information furnished in this dissertation is genuine and original to the best of my
knowledge and belief.
(d) I have not indulged in plagiarism. The project report has been checked for plagiarism and
output report has been attached.

____________________________ _____________________________
Student Name Signature
Place: Date:
PLAGIARISM RESULT
 ACKNOWLEDGEMENT

I have immense satisfaction and pleasure to present this report on Comparative Analysis of
Various Alternatives Available in the Market for Wealth Management, with special focus on
Bank of Baroda. I would like to thank each and every one who helped me in this project. This
project would not have been complete without the constant support and guidance of my mentor
Mr S K Tripathi, Branch Manager, Mulund West, Bank of Baroda. I am thankful for continuous
support in helping me with the topic of my project. I also express my sincere gratitude to the
entire staff for patiently answering my queries and helping me throughout. I would like to thank
my Finance Dean Vanita Patel and my mentor Vandana Sohoni for giving an opportunity to
work on the project and guiding me throughout. Last but not the least I would like to thank the
teaching staff at Prin L N Welingkar Institute of Management, Research and Development for
making me prepared for this internship and helping me broaden my horizon.

Name :- Iyer Mahalakshmi Natarajan

Roll No:-

Signature
 TABLE OF CONTENTS

Sr No Title Page No
1 Executive Summary

2 Introduction

• Company Background

3 Literature Review

4 Objective of the Study

5 Research Design

• Data Collection & Questionnaire Development

6 Data Analysis

7 Result

• Bank of Baroda Wealth Management

• Study of various Wealth Management Services

8 Conclusion And Recommendation

9 References

10 Annexure

• Questionnaire
 LIST OF TABLES

Sr No Title Page No

1 Table1 – Balance Sheet

2 Table2:- Profit and Loss

3 Table3 :- CholaMS Health Insurance

4 Table4:- Investment Process

 LIST OF GRAPH

Sr No Title Page No

1 Graph1:- Asset Classes invested by Respondents

2 Graph2:- Asset Class in which investors are willing to invest

3 Graph3:- Future Income Growth

4 Graph4:- Future goals

 EXECUTIVE SUMMARY

Bank of Baroda owned by Government of India. After the merger with Vijaya and Dena Bank
it has become the 3rd largest Bank. It includes account, deposit, loans, investment, insurance,
digital banking, Bank of Baroda has a subsidiary called BOBCAPS. It is completely owned by
Bank of Baroda. It has various services like Investment Banking, Institutional & Retail
Broking, Wealth Management.

Our focus area is on Wealth management services provided by Bank of Baroda. Comparative
analysis of the services provided by some of the major competitors are also studied

• ICICI Bank
• HDFC Bank
• Kotak Mahindra
• Motilal Oswal Asset Management Company

After analysis of portfolio, relationship manager and investment adviser and provides
recommendation. Bank of Baroda provides end to end solution on wealth management to their
clients. Bank of Baroda has given the medical insurance to Star Health & Alliance Limited.

The study was conducted in the Bank of Baroda, Mulund West Branch. I have conducted
survey and also took data from manager and staff for this project. Survey questionnaire was
created keeping in mind the parameters like awareness on the wealth management products,
risk appetite. Using Microsoft Excel it is further analysed.

Some of the major findings as per the survey are as follows:-

Many investors prefer less risky asset class to invest in like Fixed Deposit.

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 • People also have invested in mutual fund, equity and insurance. One of the pane point
in investing these assets is that the investor should have a thorough knowledge about
the product so they can wisely choose the product to invest in.
• When asked about their interest in future investment product, they have considered
equity, mutual fund, foreign currency and gold, etc
• So awareness about these products is necessary. This will increase the investors in these
asset classes. One initiative related to Mutual Fund, “Mutual Fund sahi hai” will help
investors better understand about the products.
• Also the investors consider their future income to grow, this could increase the
investment made by investors.
• Most important is to create awareness and make individuals understand about the
products.

Wealth Management services of Bank of Baroda are diverse. Majorly the customers visiting
the branch were low or medium net worth individuals, or persons on bank business for their
companies.

• There is high loyalty amongst the customers for Bank of Baroda.

• The major objective is to safeguard their money during financial needs. The customers
expect liquidity, steady return and less risk.
• Customers prefer Saving / Fixed deposit instrument majorly.
• NRI/NRE accounts are opened as Bank of Baroda has international presence.
• Due to the fluctuating market, customers hesitated investing in equity through shares
or mutual funds.
• People were aware of the Bank of Baroda WM instruments, many have majorly
invested in insurance. More awareness about BOBCAPS is necessary through
advertisement, social media.
• There is no separate interest rate(higher) for senior citizens in Fixed Deposit
• Wealth management cell or go to person not available in the branch to give correct
information related to the same.
• It is necessary to target 1st Bank of Baroda customers to invest in wealth management
services then tap the individuals outside.

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 INTRODUCTION

Wealth Management is efficiently managing the wealth of High Net Worth Individuals(HNIs),
small business owners, families. It is the financial planning considering the cash flow and the
risk appetite of the individuals. Economy plays a crucial role in understanding the market
condition. There are indicators like lead, lag and co-incident indicators which helps us
understand the economy.

Interest rate and currency exchange rate also plays important role under various circumstances.
Before recommendation on the wealth management product, it is necessary to understand the
client by building relationship, gathering data, analysing them and then providing
recommendation.

Wealth management is not just investment advice, it covers whole of persons investment,
growth, and transferring of asset to next generation. It plays a role in entire life of the person’s
financial planning. The wealth manager starts by developing a plan that will maintain and
increase the client's wealth based on that individual's financial situation, goals and comfort
level with risk. Once the plan is developed and executed, the manager meets regularly with
clients to monitor the investment.

Client data are analysed based on 2 two cycles

• Life Cycle:- This show the stage at which the client is at present in terms of their family
structure and age. It can be categorized as single. Married but no children, married with
young or old children, retirement
• Wealth Cycle:- This shows the stage at which the individual is present according to
current or future wealth accumulation.

o Accumulation phase is the early stage of employment where there is no major

expense.
o Distribution Phase is when the client is in retirement stage.
o Transition phase is when the financial goal is near.
o Wind fall gain when sudden wealth is earned.
o Inter generation where the wealth is transferred to next generation

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Bank of Baroda has its presence in each of these asset classes through BOBCAPS or third
party.
Bank of Baroda operates on these asset classes

▪ Equity:- This asset class includes Direct Equity, Exchange Traded Funds(ETFs), and
Derivatives Mutual Funds, Portfolio Management Services and Structured Products.
▪ Debt:- This asset class includes Debt Mutual Funds, Non-Convertible Debentures,
Bonds, Hybrid Debt Securities.
▪ Alternate Assets:- This includes Gold in physical form, Mutual fund, ETFs, Real Estate
▪ Estate Planning

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 COMPANY BACKGROUND

Maharaja Sayajirao Gaekwad III, founded Bank of Baroda on 20 July 1908 in the Princely
State of Baroda, in Gujarat. The Bank of Baroda solutions includes personal banking, which
includes deposits, retail loans, credit cards, debit cards, services and lockers; business banking,
which includes deposits, loans and advances, services and lockers; corporate banking, which
includes wholesale banking, deposits, loans and advances and services, and international
business, which includes non-resident Indian (NRI) services, foreign currency credits, ECB,
offshore banking, export finance, import finance, correspondent banking, trade finance and
international treasury.

The Bank offers services like domestic and Forex operations. They also offer rural banking
services, which include deposits, priority sector advances, remittance, collection services,
pension and lockers. They also offer fee-based services such as cash management and
remittance services. The Bank is having their head office located at Baroda and their corporate
office is located at Mumbai.

Bank of Baroda is one of India’s largest banks with a strong domestic presence spanning
5,573 branches. They have 13 Zonal offices and 75 regional offices. the Government of India
proposed the merger of Dena Bank and Vijaya Bank with the Bank of Baroda. Dena Bank and
Vijaya Bank shareholders received 110 and 402 equity shares of the Bank of Baroda of face
value ₹2 for every 1,000 shares they held. Post-merger, the Bank of Baroda is the third largest
bank in India. They have over 9,500 branches 13,400 ATMs, 85,000 employees and serves 120
million customers. The bank has a significant international presence with a network of 107
branches/offices subsidiaries, spanning 24 countries.

The bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile
BOB Cards Ltd.) and BOB Capital Markets. Bank of Baroda and Andhra Bank has a joint
venture for life insurance business with India First Life Insurance Ltd. They have Max Bupa
Insurance Company Limited and Star Health & Allied Insurance company Ltd handling the
standalone health insurance of Bank of Baroda. They are targeting individuals through sales
personnel. Its necessary to target the right clients and help them invest in BOB’s Wealth
Management asset classes thus increasing the client base.

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BALANCE SHEET

Table1 – Balance Sheet

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PROFIT & LOSS STATEMENT

Table2:- Profit and Loss

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 LITERATURE REVIEW

Pompian (2012) has explained irrational investor behaviour and creating individual investors’
portfolios that account for these irrational behaviours.

Arshanapalli & Nelson, 2012 examined seven schemes as the best asset allocation scheme for
retirement investing and wealth accumulation.

Amenc, Martellini, Milhau, & Ziemann, (2009) had thrown light on the potential benefits of
asset liability management techniques, originally developed for institutional money
management, in a private wealth management context.

Pang & Warshawsky, (2009) compared the wealth management strategies for individuals in
retirement, focusing on trade-offs regarding wealth creation and income security.

Budge, (2007) addressed a segment of the wealth management market, which he believes is
not yet served adequately: business owners who are facing a number of unique challenges
surrounding management of their overall balance sheet through time.

Isdale, (2006) discusses the steps that wealthy individuals and their advisors can take to
increase the efficiency and effectiveness of their wealth management efforts.

Shamsuddoha, (2005) in his paper looks at the key strategies being applied by wealth
management and their competitive position.

Ceru, (2004) suggests that financial service institutions' interest in the new wealth
management‖ is a natural evolutionary response of institutions seeking to regain and renew
their competitive advantage and discuss the business and technology drivers that should be

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considered by financial institutions when deciding to implement technology solutions to
enhance their wealth management business.

Statement of the Problem:- Wealth Management has now become the important in people’s
life with changing goals and unexpected expenses. Here we study the various alternatives to
wealth management, their awareness to those products and the risk appetite.

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 OBJECTIVES OF STUDY

• To understand the various products and wealth management services in Bank of Baroda
and the competitors
• To understand the clients existing investment and their future interest in the investment.
• To study the people’s awareness and their response to various products.
• To understand the people’s risking taking ability.
• To understand their perception to wealth management services.

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 RESEARCH DESIGN

• Data Collection & Questionnaire :- Primary data using survey is collected and
a google form was created and circulated. Responses were captured and then
analysed using pie chart. This survey was conducted keeping in mind to
understand the awareness and risk appetite of individuals and their current and
future cash flows and interest on wealth management product.

Secondary data were collected from Bank of Baroda Website like details
regarding their mutual fund, insurance products available. Further competitors’
data were collected using google from their respective websites like HDFC
Bank, ICICI Bank.

Questionnaires were created to understand individuals existing investment,

their future growth in income, their awareness about the products.

Primary and Secondary Data where studied and analysed during the duration
of summer internship in Mulund Branch of Bank of Baroda.

• Sampling Technique :- Random Sampling is used to get the responses for the
questionnaires circulated. Data thus received where analysed using Microsoft
Excel. Data was captured in Excel and further using Pie chart the responses were
analysed according to which the survey was conducted.

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 DATA ANALYSIS

Primary Data obtained through questionnaire are analysed using Excel Sheet. Pie charts
where created to better depict the findings.

❖ Asset classes in which the respondents have already invested. Fixed Deposit is the 1st
thing investor invest in as it’s the safest option.

Graph1:- Asset Classes invested by Respondents

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❖ Asset classes in which investors are interested to invest in future

Graph 2:- Asset Class in which investors are willing to invest

❖ Investors prospective growth of income

Graph 3:- Future Income Growth

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❖ Future Goal they want to meet. These are important for financial planning of the
investors.

Graph 4:- Future goals

• Considering the response obtained from the survey, there is a prospective

growth in come, thus it will pave way to investment on various asset classes.
Further the investment in Fixed deposit are high due to less risk. Investors prefer
less risky assets. That could be the reason for not investing in the asset classed
like equity, debt due to fluctuating market. People are more towards moderate
gain and lesser risk assets.

• Investors are thinking about the goals that will come with 3 to 5 years like
starting business, paying education loan. Bringing awareness about the various
plan like Systematic Investment Plan will be helpful for these kind of investors.

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 RESULTS

Considering the data collected through primary data helped getting some insight, secondary
data is more towards studying Bank of Baroda and other banks wealth management products.

❖ BANK OF BARODA WEALTH MANAGEMENT

Bank of Baroda offer a wide range of investment / insurance products looking to meet the
financial / investment needs of our clients / customers. Service that bank of Baroda provide
under the wealth Management are as follows:
• General Insurance
• Health Insurance
• Life Insurance
• Mutual Funds
• Baroda E-Trade (BOBCAPS)

• General Insurance:- General Insurance comprises of insurance of property against

fire, burglary etc., personal insurance such as Accident and Health Insurance, and
liability insurance which covers legal liabilities.

o Chola Fire/Property :- It is an insurance covering financial loss following

damage to the property by fire and other specified named perils. Building and
contents- machinery, stock, furniture, fixtures, fittings, office equipment,
property held in trust if specifically declared at specified locations can be
covered in this insurance. The property may be of an individual or entity.
Insurance cover can be provided for dwellings, shops, offices, industrial risks
& other manufacturing/ commercial establishments.

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o Scope of Cover- Covered perils:- Fire, Lightning, Explosion/ Implosion,
Aircraft Damage, Riot Strike & Malicious damage (also called RSMD clause),
Impact Damage by any rail/ road vehicle or animal, other than owned vehicle/
animal, Missile testing operations, Bush fire, Subsidence & landslide including
rockslide etc., Bursting &/ or overflowing of water tanks, apparatus & pipes,
Leakage from automatic sprinkler installations

o CholaMS Group HEALTH Insurance

Table3:- CholaMS Health Insurance

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• Health Insurance:- Health Insurance in Bank of Baroda is handled by Max Bupa
Health Insurance Limited and Star Health & Allied Insurance Limited.

Max Bupa Health Insurance Limited :- Four policies are included here.

o GoActive:-Hospitalisation coverage up to Rs. 25, Health coaching,

OPD coverage, Avail Health Check-up / Diagnostic tests of your choice,
Avail i-protect option & beat medical inflation.
o HeartBeat:- Maternity & new born baby benefits, OPD benefit under
platinum plan, Cashless international cover under platinum plan, All day
care treatments covered, Alternative treatments like Ayurveda & Unani
covered.
o Health Companion:- Up to 19 relationships covered in one policy, Pre
& post hospitalisation coverage, No room rent capping (except suite or
above room category), All day care treatments covered, Added
protection with Refill benefit.
o Health Assurance:- Unique flexible combination of Personal Accident
& Critical Illness cover, Lumpsum payout, Option to cover family,
Assured policy renewal, Discount on multi-year policy tenure

Star Health & Allied Insurance Limited:- Some of the Star health schemes are as
follows:-

o Accident Care Individual Insurance policy:- Cover for Accident

death, Educational Grant, Medical Expenses Extension, Hospital Cash.
o Star Cardiac Care Insurance Policy:- This policy has two Plan
options – Gold Plan and Silver Plan, Out Patient Benefit is available
under both plans, Personal Accident Death Cover is available under both
plans.
o Family Health Optima Insurance Plan:- Single policy for entire
Family, Health Check-up benefit for every claim free year, New-born
baby cover from 16th day
o Super Surplus Insurance Policy:- No pre-acceptance medical
screening required. This policy can be taken on Floater basis.The policy
offers two plans: Silver Plan and Gold Plan.

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o Star Travel Protect Insurance Policy:- Personal Accident Cover.
Emergency medical expenses. Emergency medical expenses including
medical evacuation and transportation of mortal remains.
o Star Cancer Care Gold (Pilot Product):- A limited period offer. First
ever health insurance product for persons diagnosed with Cancer. No
pre acceptance medical tests
o Diabetes Safe Insurance Policy:- Covers hospitalization expenses for
complications of Diabetes, Policy can be taken on Individual and Floater
basis. No Waiting Period for Diabetes
o Medi Classic Insurance Policy (Individual):- No claim bonus of 5%
for every claim free year up to 25%. Health Checkup costs up to
Rs.5,000/- for every block of 4 claim free years.Automatic restoration
of entire Sum insured by 200%.
o Senior Citizens Red Carpet Health Insurance Policy:- For Senior
citizens aged between 60 to 75 years. No pre-insurance medical test
required. Covers pre-existing diseases from the second year onwards.
o Star Comprehensive Insurance Policy:- No capping on room rent -
Treatment at Single Standard A/C room. Covers medical expenses
incurred on Bariatric surgical. Air ambulance assistance, Second
medical opinion are covered.

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• Life Insurance: Life insurance is a contract between an insurer and a policyholder in
which the insurer guarantees payment of a death benefit to named beneficiaries upon
the death of the insured. The insurance company promises a death benefit in
consideration of the payment of premium by the insured. Following are the different
types of life insurance plans
o Term plans:- The most basic form of life insurance that promises to pay a
beneficiary a certain amount in case of untimely death of the insured, but
nothing in case the insured survives the term of the plan.
o Endowment plans:- Not only provides death benefit but also provides maturity
benefit.
o Whole life plans:- The insured is covered for his entire life and the benefit is
paid on death, whenever it occurs.
o Annuity plans:- Retirement plans that provide annuity upon retirement.

Bank of Baroda offers a variety of products of India First Life Insurance Company.
Following are the India First Life Insurance products offered by Bank of Baroda:-

o IndiaFirst Maha Jeevan Plan – A traditional non – linked participating plan.

This plan also offers Term Rider to enhance life cover. Guaranteed death benefit
and maturity benefit is the key feature of this plan.

o IndiaFirst Life Cash Back Plan – A traditional non – linked non –

participating plan which offers guaranteed additions as a percentage of premium
paid depending on the premium paying term. Periodic survival benefits as a
percentage of sum assured and balance sum assured on maturity is payable
under the plan.

o IndiaFirst Life Wealth Maximizer Plan – A unit linked plan offering three
investment strategies to suit your profile. A plan which provides additions to
your fund value for paying your premiums regularly and Systematic Partial
Withdrawal (after completion of 5 policy years) to access your funds when you
require.

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o IndiaFirst Life Money Balance Plan – A unit linked plan offering market
linked returns. The Automatic Trigger Based Investment Strategy helps you to
safeguard your returns from the upside of the equity market.

o IndiaFirst Life Plan – This is a pure term plan which offers only death benefit.
Nothing is payable if the life insured survives the policy term. This plan offers
high cover at very economical rates.

o Baroda Jeevan Suraksha – A group term plan offering only death benefit to
the group members. Ideal for employer to take care of the employees’ families
in case of untimely demise of the employee.

o IndiaFirst Group Credit Life Plan – A group term plan to take care of your
loan liabilities so that the burden of repaying the outstanding loan does not fall
on the shoulders of the family members of the person who has taken a loan.

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• Mutual Fund:- A mutual fund is a pool of money managed by a professional Fund
Manager. It is a trust that collects money from a number of investors who share a
common investment objective and invests the same in equities, bonds, money market
instruments and/or other securities. And the income / gains generated from this
collective investment is distributed proportionately amongst the investors after
deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value”
or NAV. Simply put, the money pooled in by a large number of investors is what makes
up a Mutual Fund.

There are wide variety of Mutual fund schemes that cater to your needs, whatever
your age, financial position, Risk Tolerance and return Expectations. Before investing
in Mutual Fund Schemes; you should know which scheme suits your requirements.

o Growth Schemes:- Aim to provide capital appreciation over the medium to

long term. These schemes normally invest a majority of their funds in equities
and are willing to bear short-term decline in value for possible future
appreciation.

o Income Schemes:- Aim to provide regular and steady income to investors.

These schemes generally invest in fixed income securities such as bonds and
corporate debentures. Capital appreciation in such schemes may be limited.

o Balanced Schemes:- Aim to provide both growth and income by periodically

distributing a part of the income and capital gains they earn. They invest in both
shares and fixed income securities in the proportion indicated in their offer
documents. In a rising stock market, the NAV of these schemes may not
normally keep pace or fall equally when the market falls.

o Money Market / Liquid Schemes:- Aim to provide easy liquidity, preservation

of capital and moderate income. These schemes generally invest in safer, short
term instruments such as treasury bills, certificates of deposit, commercial paper
and interbank call money. Returns on these schemes may fluctuate, depending
upon the interest rates prevailing in the market.

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o Tax Saving Schemes (Equity Linked Saving Scheme - ELSS):- These
schemes offer tax incentives to the investors under tax laws as prescribed from
time to time and promote long term investments in equities through Mutual
Funds.

o Fixed Maturity Plans:- Fixed Maturity Plans (FMPs) are investment schemes
floated by mutual funds and are close- ended with a fixed tenure, the maturity
period ranging from one month to three/five years. These plans are
predominantly debt-oriented, while some of them may have a small equity
component.

o Exchange Traded Funds (ETFs):- Exchange Traded Funds are essentially

index funds that are listed and traded on exchanges like stocks.

o Gold Exchange Traded Funds (GETFs):- Gold Exchange Traded Funds offer
investors an innovative, cost-efficient and secure way to access the gold market.
Gold ETFs are intended to offer investors a means of participating in the gold
bullion market by buying and selling units on the Stock Exchanges, without
taking physical delivery of gold.

o Quantitative Funds:- A quantitative fund is an investment fund that selects

securities based on quantitative analysis. The managers of such funds build
computer- based models to determine whether or not an investment is attractive.
In a pure "quant shop" the final decision to buy or sell is made by the model.
However, there is a middle ground where the fund manager will use human
judgment in addition to a quantitative model.

o Funds Investing Abroad:- With the opening up of the Indian economy, Mutual
Funds have been permitted to invest in foreign securities/ American Depository
Receipts (ADRs) / Global Depository Receipts (GDRs). Some of such schemes
are dedicated funds for investment abroad while others invest partly in foreign
securities and partly in domestic securities. While most such schemes invest in
securities across the world there are also schemes which are country specific in
their investment approach.

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 o Fund of Funds (FOFs):- Fund of Funds are schemes that invest in other mutual
fund schemes. The portfolio of these schemes comprise only of units of other
mutual fund schemes and cash / money market securities/ short term deposits
pending deployment. Fund of Funds can be Sector specific e.g. Real Estate
FOFs, Theme specific e.g. Equity FOFs, Objective specific e.g. Life Stages
FOFs or Style specific e.g. Aggressive/ Cautious FOFs etc.

Systematic Investment Plan:- Systematic Investment Plan (SIP) is an investment plan

(methodology) offered by Mutual Funds wherein one could invest a fixed amount in a
mutual fund scheme periodically, at fixed intervals – say once a month, instead of
making a lump-sum investment. The SIP instalment amount could be as little as ₹500
per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount
every month.

To get the best out of your investments, it is very important to invest for the long-term,
which means that you should start investing early, in order to maximize the end returns.

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• Baroda E-Trade (BOBCAPS)

Baroda e-trade offers online equity & derivatives trading facilities for investors who
are looking for the ease, convenience and hassle free trading experience. You can access
a multitude of resources like live quotes, charts, research, advice and online assistance
which helps you to take informed decisions.

The trading platform is a high-end, integrated application for fast, efficient and reliable
execution of trades. You can now trade on the both NSE and BSE platform
simultaneously from any location at your convenience.

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• Investment Process of Bank of Baroda in Wealth Management Solution:-
Considering the different products that are available, its necessary to understand the
client and then provide recommendation. For this proper investment plan is necessary.
Bank of Baroda carries out processes to help investors, invest in their wealth
management solution.

Table4:- Investment Process

Investment process include the Profiling and Risk assessment where the investor is
analysed based on the wealth and life cycle and their future goals along with the risk
appetite to overcome risk. These are done using the questionnaire to understand the
investor’s portfolio.

Asset allocation plays a vital role in handling the risk. It helps in investing on mix of
the Asset Classes so that if any one asset experiences the loss the other asset class could
balance it. This is basically to avoid the concentration risk. After the asset classes are
decided then the investment planning and execution takes place.

Once the investment is done it’s important to monitor and review the performance of
investment and suggest changes to the investor to give them a fruitful gain from the
investment.

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• Study of various Wealth Management Services:- Various asset management
company have evolved with their wealth management services.

Let’s consider some of the Competitors of Bank of Baroda like:-

➢ ICICI Prudential Asset Management Company

➢ HDFC Asset Management Company
➢ Kotak Mahindra Asset Management
➢ Motilal Oswal Asset Management Company

❖ ICICI Prudential Asset Management Company:- ICICI Prudential Asset

Management Company Ltd. is a leading asset management company (AMC) in
the country focused on bridging the gap between savings & investments and
creating long term wealth for investors through a range of simple and relevant
solutions.

The AMC manages significant Assets under Management (AUM) in the mutual
fund segment. The AMC also caters to Portfolio Management Services for
investors, spread across the country, along with International Advisory
Mandates for clients across international markets in asset classes like Debt,
Equity and Real Estate.

▪ Equity Mutual Funds:- Equity schemes endeavour to provide

potential for high growth and returns with a moderate to high risk by
investing in shares. Such schemes are either actively or passively
(replicate indices) managed, and are best suited for investors with a
long term investment horizon.

✓ ICICI Prudential Bluechip Fund

✓ ICICI Prudential Value Discovery Fund
✓ ICICI Prudential Long-Term Equity Fund
✓ ICICI Prudential Infrastructure Fund

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 ▪ Debt Funds:- Debt Funds primarily invests in bonds and other debt
instruments, and will suit investors who want to optimize current income
assuming low to moderate levels of risk.

✓ ICICI Prudential Savings Fund

✓ ICICI Prudential Floating Interest Fund
✓ ICICI Prudential Corporate Bond Fund
✓ ICICI Prudential Liquid Fund

▪ Hybrid Scheme:- Hybrid Schemes or balanced schemes bridge the gap

between equity and debt schemes. This category is characterized by a
portfolio that is made up of a mix of equity stocks and bonds and will
suit investors looking for debt plus returns with higher levels of risk than
fixed income schemes.

✓ ICICI Prudential Regular Savings Fund

✓ ICICI Prudential Equity & Debt Fund
✓ ICICI Prudential Equity - Arbitrage Fund
✓ ICICI Prudential Multi-Asset Fund
✓ ICICI Prudential Equity Savings Fund
✓ ICICI Prudential Balanced Advantage Fund

▪ Exchange Traded Fund:- Investing in Exchange Traded Funds (ETFs)

can be a good way of complementing your existing mutual fund
investments. They can help in diversifying your portfolio at a low cost.
An understanding of the features and benefits of various ETFs can help
you make smarter investment choices and reach your life goals.

✓ ICICI Prudential Nifty ETF

✓ ICICI Prudential Sensex ETF
✓ ICICI Prudential Midcap Select ETF
✓ ICICI Prudential Nifty 100 ETF
✓ ICICI Prudential Gold ETF

Asset Managed:- Rs. 320792.87 crore (Mar-31-2019)

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 ❖ HDFC Asset Management Company:- HDFC Mutual Fund is one of the
largest mutual funds and well-established fund house in the country with focus
on delivering consistent fund performance across categories since the launch of
the first scheme(s) in July 2000.

HDFC AMC have divided products into category and goal based

▪ Category based products are:-

✓ Diversified Equity
✓ Thematic Equity
✓ Equity Linked Saving Scheme
✓ Hybrid
✓ Solution Oriented
✓ Theme Based Debt
✓ Solution Based Debt
✓ Index/ETF
✓ Gold ETF/FOF

▪ Goal Based Solution includes:-

✓ Wealth Creation
✓ Tax Saving
✓ Children’s Fund
✓ Retirement Planning
✓ Regular Income

Asset Managed:- Rs. 342290.58 crore (Mar-31-2019)

28
❖ Kotak Mahindra Asset Management:- Kotak Mahindra Group is one of
India's leading financial services conglomerates. In February 2003, Kotak
Mahindra Finance Ltd. (KMFL), the Group's flagship company, received
banking licence from the Reserve Bank of India (RBI), becoming the first
nonbanking finance company in India to convert into a bank - Kotak Mahindra
Bank Ltd.

▪ Kotak Mahindra Asset Management offers a wide range of products to

its customers some of these are as follows:

✓ Equity Fund
✓ Tax Saver Fund
✓ Hybrid Fund
✓ Debt Fund
✓ Liquid Fund
✓ Fund of Funds
✓ Systematic Investment Plan
✓ Exchange Traded Fund

Assets Managed:- Rs. 150099.40 crore (Mar-31-2019)

29
 ❖ Motilal Oswal Asset Management Company:- Motilal Oswal Asset
Management Company Ltd. (MOAMC) is a public limited company
incorporated under the Companies Act, 1956 on November 14, 2008. Motilal
Oswal Asset Management Company Ltd. has been appointed as the Investment
Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment
Management Agreement (IMA) dated May 21, 2009, executed between Motilal
Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company
Ltd.

▪ The Company offers versatile products under following asset class:

✓ Equity Fund
✓ Debt Fund
✓ Hybrid Fund
✓ Fund of Funds
✓ Exchange Traded Fund
✓ Special Situation Fund

Asset Under Management:- ₹19090.43 crore(Mar-31-2019)

Considering some of the competitors of Bank of Baroda, all of them have Equity, Debt
and hybrid scheme. Bank of Baroda too have these schemes. They have Gold, ETF
schemes available. Bank of Baroda also has Real Estate investment options available.

30
 CONCLUSION AND RECOMMENDATION

Bank of Baroda’s BOBCAPS are reaching out to many investors. More awareness of these
wealth management product will increase the growth of these product.

From the analysis it if found that majority investors are risk averse and take a step back to take
risk. So the usually choose the less risky fixed deposit even though the rate of return being less.

The investors need to be made aware. The general public are not open to taking risk and don’t
invest in mutual fund, equity oriented investment. Systematic Investment Plans help reduce the
risk, but doesn’t completely remove the risk of equity investments. This shows awareness is of
utmost importance when it comes to growth of wealth management sector.

Bank of Baroda has a strong standing legacy and plenty of loyal customers; these need to be
taken care of. Bank deposits are still favoured form of investments, so Bank of Baroda should
offer its customers attractive and competitive rate of interest along with other additional
services to survive in the market.

Bank of Baroda too provides Mutual Funds under the name Baroda Mutual Fund. However,
these are not yet well known due to their low market awareness.

The same goes for insurance policies of Bank of Baroda provided in alliance with Chola MS,
Star Life Insurance and IndiaFirst Insurance Company. These instruments hence need to be
marketed well to ensure awareness.

31
 REFFERENCE

[1]https://en.wikipedia.org/wiki/Bank_of_Baroda
[2]https://www.livemint.com/Industry/XihVSIwxVQZEmG1BMqL3BP/BoB-sets-share-
swap-ratio-for-merger-with-Vijaya-Dena-banks.html
[3] https://www.bankofbaroda.in/overview.htm
[4] https://www.bankofbaroda.in/history.htm
[5] https://www.bankofbaroda.in/offices-branches.htm
[6] https://www.bankofbaroda.in/financial-reports.htm
[7]https://www.bloombergquint.com/business/merger-impact-bob-looks-to-rationalise-800-
900-branches
[8]http://jems.net.in/wp-content/uploads/2018/01/Wealth-Management-an-Analysis-of-
Client-Segmentation-and-their-Need.pdf
[9] http://indianresearchjournals.com/pdf/APJMMR/2013/February/4.pdf
[10] http://www.researchersworld.com/vol3/issue3/vol3_issue3_2/Paper_03.pdf
[11] https://www.bankofbaroda.in/insurance/health-insurance/chola-fire-property.htm
[12]https://www.bankofbaroda.in/insurance/health-insurance/cholams-group-health-
insurance.htm
[13] https://www.bankofbaroda.in/life-insurance.htm
[14] https://www.bankofbaroda.in/mutual-funds.htm
[15] https://www.bankofbaroda.in/max-bupa-health-insurance-company-limited.htm#927
[16] https://www.bankofbaroda.in/star-health-allied-insurance-company-limited.htm
[17] https://www.bobcaps.in/online-trading.asp
[18] https://www.icicipruamc.com/icici-prudential-mutual-fund/icici-equity-funds
[19] https://www.icicipruamc.com/icici-prudential-mutual-fund/fixed-income-funds.aspx
[20] https://www.icicipruamc.com/OurFunds/hybrid-funds.aspx
[21] https://www.icicipruamc.com/OurFunds/others.aspx
[22] https://www.hdfcfund.com/about-us/corporate/overview
[23] https://assetmanagement.kotak.com/aboutus
[24] https://assetmanagement.kotak.com/
[25] https://www.moneycontrol.com/mutual-funds/amc-details/MO
[26] https://www.moneycontrol.com/mutual-funds/amc-details/HD
[27] https://www.moneycontrol.com/mutual-funds/amc-details/PI
[28] https://www.moneycontrol.com/mutual-funds/amc-details/KM
[29]Pompian, M. M. (2012). Behavioral Finance and Wealth Management (2nd Edition ed.).
America: John Wiley & Sons,Inc.,Hoboken,New Jersey.
[30]Arshanapalli, B., & Nelson, W. (2012). The Journal of Wealth Management ,14 (4),22-27.
[31]Amenc, N., Martellini, L., Milhau, V., & Ziemann, V. (2009). Asset-Liability
Management in Private Wealth Management. The Journal of Portfolio Management,36
(1),100-120.
[32]Pang, G., & Warshawasky, M. (2009). Comparing Strategies for Retirement Wealth
Management: Mutual Funds and Annuities. Journal of Financial Planning,22(8),36-47.
[33]Budge, G. S. (2007). Continuing Challenges to Delivering Integrated Wealth Management
Services to Business Owners. The Journal of Wealth Management , X (2), 51-62.
[34]Isdale, M. H. (2006). Strategies for Simplifying and Increasing the Effectiveness of Wealth
Management. The Journal of Wealth Management , IX (2), 14-18.
[34]Shamsuddoha, M. (2005). Wealth Management Strategies in the Era of E-Commerce.
Pakistan Journal of Social Sciences , III (1), 216-224.
[35]Ceru, D. (2004). Strategy and Technology for the New Wealth Management. The Journal
of Wealth Management , VII (1), 81-91.

32
 ANNEXURE

• Questionnaires

Wealth Management Survey

I am conducting this survey for my Internship Project on Wealth

Management. Please help me fill this survey, it is an important source of
data for my project .

*Required

1.What is your age? *

o 20 years to 30 years
o 31 years to 40 years
o 41 years to 50 years
o 51 years to 60 years
o above 60 years

2.Major expenditure you are planning in few months/ a year? *

o Paying Education Loan

o Buying a House
o Starting a New Business
o Retirement Planning

3.Have you invested anywhere before? *

o Yes
o No

4.If Yes, in which asset class have you invested in? ( Tick all options you
have invested in)

o Fixed Deposit
o Insurance
o Mutual Fund
o Equity
o Gold
o Foreign Currency

33
5.If you have selected Mutual Fund in above question, which plan have
you chosen?

o
o Your answer

6.If given an alternative option which asset class would you like to invest
in? *

o Fixed Deposit
o Mutual Fund
o Insurance
o Equity
o Gold
o Foreign Currency

7.When would you like to use the bulk of money you are going to invest or
have been accumulating through investment? *

o Within 1 year
o 1 year to 5 years
o 6 years to 10 years
o 11 years to 20 years
o Not decided as of now

8.What is the prospective growth of Income in coming years? *

o Stay same
o Grow Moderately
o Grow Substantially
o Decrease Moderately
o Decrease Substantially

9.Are you a frequent trader? *

o Yes
o No

10.If Yes, through which online trading company, site or broker do you
trade?

o
o Your answer

34
11.Do you have account in Bank of Baroda? *

o Yes
o No

12.Have you heard of BOBCAPS( Bank of Baroda e-trade site)? *

o Yes
o No

13.Have you come across or invested in any Bank of Baroda Scheme like
Mutual Fund, Insurance, E-trade? *

o Yes
o No

14.If Yes, which scheme you have come across or invested in?

o
o Your answer

35