Private Welth Management With Refernce To HDFC Bank

Wealth Management With Reference To Hdfc Bank
CHAPTER I
1.1 INTRODUCTION ABOUT WEALTH MANAGEMENT
The term wealth management now a day’s having very importance. So many banking
companies are engaged in the business of wealth management. The premier insurance
industry is now booming because so many bankers are also adopting and playing safe in
the business of insurance the term called banc assurance. Now a day, Wealth
Management has very craze in the business world. In a survey, it was found that India
had 100,000 milliners day end of year 2006 is now growing up by 21% from a year
earlier (Asia pacific Wealth report).
Wealth management services area in financial sector has been witnessing more attention
during last couple of years. Capgemini Merrill Lynch Wealth Report 2007 cites number
of HNWIs (high net worth individuals) globally to be around 9.5 million with wealth held
by them totaling to US$37.2 trillion in year 2006. Value of wealth held by HNWIs
represents an increase of around 11.4% since 2005.
While growing volume of premium services to affluent clients becomes the key driver for
most of the service provider firms, many unique elements inherent to wealth management
services requires completely different service offering model than the existing model for
transactional services.
Considering long-term high value business proposition, number of banks and niche
players has started offering full range of wealth management services targeted to HNWIs
and emerging affluent.
Greatly accustomed in offering commoditized financial services so far, demand of

unconventional form of service model poses a big challenge in charting growth path for
these wealth management firms.
Sydenham College Of Commerce And Economics 1

1.1.1 Concept of Wealth Management
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 – Funding, assets, investments and cash. It means the term Wealth
Management deft with fund assets, instrument, cash, and any other item of similar nature.
While defining the 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”.
1.2 Key Elements of Wealth Management Services
Wealth management services involve fiduciary responsibilities in providing professional

investment advice and investment management services to a client. Depending on the
mandate of the services given to the Wealth Manager, wealth management services could
be packaged at various levels:
• 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.
• Investment Processing (transaction oriented) Client engages wealth manager to execute

specific transaction or set of transactions. Investment planning, decision and further
management remain vested with the client
• Custody, Safekeeping and Asset Servicing Client is responsible for investment

planning, decision and execution. Wealth manager is entrusted with management,
administration and oversight of investment process.
• End-to-end Investment Lifecycle Management Wealth manager owns the whole gamut
of investment planning, decision, execution and management, on behalf of the client. He
is mandated to make financial planning, implement investment decisions and manage the
investment throughout its life.

1.3 Concept of Private Wealth Management
Private wealth management is an investment advisory practice that incorporates financial

planning, portfolio management and other aggregated financial services for individuals,
as opposed to corporations, trusts, funds or other institutional investors. From the client's
perspective, private wealth management is the practice of solving or enhancing his or her
financial situation and achieving short-, medium- and long-term financial goals with the
help of a financial adviser. From the financial adviser's perspective, private wealth
management is the practice of delivering a full range of financial products and services to
an affluent clientele, so that the clientele can achieve specific financial goals.
1.3.1 Who Needs Private Wealth Managers?

Many private individuals of means lack the time, effort or knowledge to manage their
finances successfully. To make up for what may be lacking, they seek the consultation of
wealth managers who specialize in managing the finances of private, often high-net-
worth individuals (HNWI). HNWIs have unique financial situations that require greater
diligence and a higher degree of active management. Further, HNWIs require a more
holistic approach to investment management than many financial advisers are capable of
providing. HNWIs can have issues with income taxes, estate planning, investment
management and other legal issues that need more attention and specific expertise than
traditional investment advisers are qualified to give.
1.3.2 Who are Private Wealth Managers?

Private wealth management services can be provided by banks and large brokerage
houses, independent financial advisers or multi-licensed portfolio managers who focus on
high-net-worth individuals, and family offices. Many private wealth management firms
are smaller groups within larger financial institutions that are focused on providing
personalized service to their clients. Most private wealth management firms are fee-
based. They charge their clients a percentage of the assets under management. HNWIs
may believe that fee-based financial advisers have less conflict of interest as opposed to
traditional commission-based advisers. Some HNWIs may want to consider opening
a family office.

1.4 Key Challenging Area
While immense business potentiality of this emerging sector is a driving point for most of
the firms, they face many challenges in formulating winning services offering meeting
the client needs. In the following section, we would briefly take a look on the key
challenges area in the present context
 Highly Personalized and Customized Services
Unlike other stream of financial services, mostly being transactional / commoditized in

nature, private wealth management services require client specific solution and service
offering. No one solution exactly meets the needs of other client. In a situation of highly
personalized and customized nature of service offering, developing any form of generic
service model does not support growth of the business.
 Personal relationship driving the business
To meet client expectation of personal attention, mode of communication in private

wealth management services tends to be highly personalized. Thus, the conventional
grids of communication, such as call centre, data centre does not fit well. Success of
wealth management services heavily draws on personal interaction with the dedicated
relationship manager, who takes care of whole investment management lifecycle for
bunch of clients on one-to-one basis.
 Evolving Client Profile
The biggest challenge in providing private wealth management service offering is to

factor and reckon the evolving nature of client profile, in terms of investment objective,
time horizon, risk appetite and so on. Thus, a service model developed for a particular
client cannot remain static over a period of time. Any service model has to be flexible
enough to consider the dynamic nature of client profile and expectations arising out of it.

 Client Involvement Level
The conventional adage – the more money you have, more effort is needed to manage it –
proves to be otherwise in case of HNWIs. Generally, client involvement in managing the
finance remains on the lower side. This brings onus of managing the whole gamut of
investment and due performance single-handedly on the shoulders of investment
manager.
 Technical Architecture and Technology Investment
As business architecture is still evolving, a proven basis of resilient technical architecture

and framework to support the emerging business greatly remains missing. In absence of
this framework, any investment commitment towards application development / system
implementation would be fraught with severe risk. Intricate Knowledge of Cross-
functional Domain
By very nature of private wealth management, it not just involves matters of plain vanilla
finance but has intricate relationship with many elements of domestic / international law,
taxation and regulatory norms. In order to provide sound investment guidance, a
relationship manager is required to have intricate knowledge of domestic/cross-border
finance, accounting, legal and taxation subjects.
 Passion Investment (Philanthropy and Social Responsibility)
In the recent years a trend has been observed that bulk of investments by HNWIs has
been directed towards passion investments (art, antique, jewelers, coins, unique assets,
luxury), philanthropy and social/community causes. As per World Wealth report, 11% of
HNW investors worldwide contributed to philanthropic causes with a contribution over
7% of their wealth in year 2006. Ultra-HNWIs contribution was even more - 17% of
Ultra-HNW investors that gave to philanthropy contributed over 10% of their wealth. In
total, this equates to more than US$285 billion globally.

1.5 Functional Area
 Financial Planning
 Portfolio Strategy Definition/ Asset Allocation
 Strategy Implementation
 Portfolio Management – Administration, Performance Evaluation and Analytics
 Strategy Review and Modification

1.5.1 Basic Aspect of Wealth Management Service
 Financial Planning
Client profiling takes in account multitude of behavioral, demographic and investment

characteristics of a client that would determine each client’s wealth management
requirements. Some of key characteristics to be evaluated for defining client’s investment
objective are:-
 Current and future Income level
 Family and life events
 Risk appetite / tolerance
 Taxability status
 Investment horizon
 Asset Preference /restriction
 Cash flow expectations
 Religious belief (non investment in sin sector like - alcohol, tobacco, gambling
firms, or compliant with Sharia laws)
 Behavioral History (Pattern of past investment decisions)
 Level of client’s engagement in investment management (active / passive)

Based on the client profile, investment expectations and financial goals of the client could
be clearly outlined. Defining investment objectives helps to identify investment options
to be considered for evaluation. Investment objective for most of the investors could be
generally considered amongst the following:-
Current Income Growth (Capital Appreciation) Tax Efficiency (Tax Harvesting) Capital
Preservation (often preferred by elderly people to make sure they don’t outlive their
money.)
 Portfolio Strategy Definition / Asset Allocation
 After establishing investment objectives, a broad framework for harnessing

possible investment opportunities is formulated. This framework would factor for
risk-return trade-off of considered options, investment horizon and provide a clear
blueprint for investment direction.
 Investment strategy helps in forming broad level envisioning of asset class

(Securities, Forex, Commodity, Real State, Reference and Indices, Art/Antique
and Lifestyle Assets (Car, Boat, and Aircraft), market, geography, sector and
industry. Each of these asset classes is to be comprehensively evaluated for
inclusion in portfolio model, in view of defined investment objectives.
 While defining the strategy, consideration of client preference or avoidance for

specific asset class, risk tolerance, religious beliefs is the key element, which
would come into picture. Thus, for a client with a belief of avoidance of
investment in sin industries (alcohol, tobacco, gambling etc.) is to be duly taken
care of. Likewise, for a client looking for Sharia- compliant investment, strategy
formulation should consider investment options meeting with the client
expectations.

 Determinations of Portfolio Constituents and Allocation of Assets Guided with

the investment strategy, constituents in portfolio model are determined, which
would directly and efficiently contribute towards client’s investment objectives.
 Thus, a broad level investment guidance of – “investment in fixed income in

emerging market” would further determine classification within Fixed Income
such as Govt. or corporate bonds, fixed or variable rate bonds, Long or short
maturity bonds, Deep discounted or Par bonds, Asset backed or other debt
variants.
 Return profile, risk sensitivity and co-relation of constituents within portfolio

model would help to determine the size (weight age) of each individual
constituent in the portfolio.
 DISCIPLINED PORTFOLIO BUILDING APPROACH
• Review investment objective, portfolio progress, asset allocation & portfolio

strategy
• Risk Profiling
• Investment Objective
• Existing Portfolio
• Asset Allocation
• Planning
• Rebalancing existing portfolio

 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 favorable price range.
 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. Performance Evaluation and Analytics.
Performance evaluation of the portfolio is an ongoing process. Portfolio return is

continuously monitored and analyzed with respect to defined portfolio objectives.
Analysis dimension could be varied – simple and complex. These may include - absolute
return, relative return (in comparison to chosen benchmark), trend, pattern, cost impact,
tax impact, concentration, lost opportunity and other form of sensitivity and what-if
analysis. Any deviation of portfolio performance observed during performance evaluation
would lead to strategy review and any possible alignment of portfolio strategy.

 Strategy Review and Alignment
Based on performance evaluation and future outlook of the investment, portfolio strategy
is evaluated on periodic basis. To keep it aligned with the defined investment objectives,
portfolio strategy is suitably re-calibrated from time to time. Many times, review of
portfolio strategy would be necessitated due to change in client profile or expectations.
Any re-calibration of strategy and consequent change in portfolio model would require
rebalancing of the assets in portfolio. This would be achieved through rebalancing the
asset (divesting over-allocated part and acquiring under allocated), relocation (from one
sector the other or from one instrument to other instrument in the same class) or complete
divestment.
1.6 Wealth management practice orientation overview
 Transactions:
 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.

1.7 About the Hdfc Bank
HDFC Bank ltd is commercial bank of India, incorporated in August 1994, after the
Reserve Bank of India allowed establishing private sector banks. The bank was promoted
by the Housing Development Finance Corporation, a premier housing finance of India.
HDFC Bank has 1,412 branches and over 3295 ATMs, in 528 cities in India, and all
branches of the bank are linked on an online real time basis. As on September 30, 2008
the bank had total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has
reported net profit of Rs 2,244.9 crore, up 41% from the previous fiscal year. Total
annual earnings of the increased by 58% reaching at Rs 19622.8 crore in 2008-09.
1.7.1 History
HDFC Bank was incorporated in the year 1994 by Housing Development Finance
Corporation Limited (HDFC). India’s premier housing finance company. It was among
the first companies to receive ‘In Principle’ approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector. The bank commenced its operations as a
scheduled commercial bank in January, 1995 with the help of RBI’s Liberalization
policies.
1.7.2 Branch
HDFC has 1725 branches spread in 771 cities across India. All branches are linked on an
online real time basis. The bank on to cross-sell and sell its products aggressively,
growing into India’s largest private sector bank. HDFC’s impressive rise over the last
couple decades cannot be denied, but now as the brand starts to over extend with a
dizzying array of products and services, one worry that an impressive fall may follow.

1.8 About Wealth Management Services by HDFC Bank
In India HDFC bank is a very Well known bank in the field of Wealth management.
HDFC Bank will float subsidiary for the purpose of WM activities in Canada & other
market even as HDFC has rolled out HDFC Group Global Private Clients for those with
net worth of $ 1 million or more. HDFC 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. HDFC Bank is using the services of global players
like Merrill Lynch, City group, and UBS for catching the clients for Wealth Management
business. HDFC 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
HDFC 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 lender
banker HDFC expects to sustain the 70% growth in its private Wealth management
business. HDFC has 150,000 customers with investible surplus of at least Rs. 10 lakhs
equity, real estate and private equity is driving the private banking business in India.
India has market of Wealth management about $ 600 billion.
Private Wealth management is a high-level professional service that combines

financial/investment advice, accounting/tax services, retirement planning and legal/estate
planning for one fee. Investors work with a single wealth manager who coordinates input
from financial experts and can include coordinating advice from the investors own
attorney, accountants and insurance agent. Some wealth managers also provide banking
services or advice.
In others words, it is basically an investment advice or assistance to manage person’s

financial needs. These services are offered to investors in packages to provide benefits
with two main goals growth and safety of their existing investments.

1.8.1 Private Wealth Management Products & Solutions
HDFC Bank Wealth Management offers the advice on the entire universe of mutual
funds. So be it equity funds, where investor look for growth and capital appreciation or
debt funds for capital preservation, they can help investor in selecting the right mix to suit
them. Choose from an array of more than 15 fund houses with innumerable schemes.
 Structured Products
HDFC Structured Product offerings are tailor-made to suit investor’s investment

objective and risk appetite. HDFC services include Discretionary Portfolio Management
and specially designed products that are Equity or Index-linked in nature.
 Alternate Asset Products
HDFC Bank Wealth Management broadens investment avenues. They offer products
which complement existing investments e.g. Art Funds, Private Equity Funding, Realty
Funds. So, if investor is looking beyond the stock market, they’ll find HDFC Bank there
too.
 Life Insurance & Retirement Solutions
No need to worry about family’s future or expenses post-retirement. HDFC Bank Private
Wealth Management has protection and pension covered. With HDFC’s assistance they
can choose a plan customized to their benefit.
 General Insurance
HDFC Bank Private Wealth Management doesn’t just protect life, but also makes
everyday living simple. HDFC offer products in areas of Health Insurance, Home
Insurance, Travel Insurance and Motor Insurance.

1.9 Advantages & Limitations
 Advantages:
 Helpful in Tax Planning
 Helpful in selection of investment strategy
 Helpful in Estate Management
 Helpful in forward looking
 Helpful in Indian Economy
 Disadvantages:
 WM reduces the scope of Management
 Chances of fraud
 Actual picture v/s Inflation
1.9.1 Strategy & Outlook of Hdfc Bank
 Shareholders Value
 Retail Banking Platforms
 International Banking
 Rural Banking
 Life Insurance
 General Insurance

CHAPTER II
2.1 RESEARCH METHODOLOGY

The systematic and objective identification, collection, analysis, dissemination and use of
information for the purposes of assisting management in decision making relating to the
identification and solution of problems (and opportunities) in marketing.
It is a way to systematically solve the research problem. In it we study various steps that
are generally adopted by a researcher in studying his research problem along with the
logic behind them. It is important for the researcher not only to understand the research
methods and techniques but also the methodology.
2.2 Objective
 To know the investor’s preference for investment.
 Investor’s reaction on recession.
 Risk tolerance of people in today’s scenario.
 Investor’s awareness for wealth management services by HDFC Bank.
 Process of wealth management service by HDFC Bank.
 To figure out the popular source of investment avenue.
 Percentage up to which individuals is ready to save at how much risk.
2.3 Scope of Study
 The Indian Private Wealth Management industry is one of the most rapidly
growing industries in India. The huge potential of this industry can be established
through the rapidly expanding HNI / HNW base in India.

 Comprehensive reporting, product due diligence and product pipeline, and family
office services are most in demand and these have become the key differentiators.
 The importance of advice will remain critical to success since at the core of
wealth management lies the edge of knowledge translating to unbiased, quality
advice.
 Develop a plan to generate cash flow for your short and long term needs.
 Develop a strategy for planning for retirement by incorporating social security,

pension, and IRA assets into a comprehensive plan.
 Identify and implement tax-efficient portfolio strategies to manage capital gains

and losses. Consideration is given to other tax issues such as Alternative
Minimum Tax (AMT).
 Work with tax and legal advisors to develop a flexible asset and wealth
preservation plan. We thoroughly review and address life insurance, disability
insurance, and long term care needs.
2.4 Limitation of study
Limitations are influences that the researcher cannot control. They are the
shortcomings, conditions or influences that cannot be controlled by the researcher that
place restrictions on your methodology and conclusions. Following are limitation -
 People were not interested in providing the true financial position of them.
 Time limit was one the limitation in this project. I got approximately 5 weeks
To complete the project.

 Some people were so much busy that they didn’t shown their interest in giving
Information.
 In secondary data collection, I found problem in collecting the latest reliable data
after recession.
2.5 Significance of Study
The Project has been based to understand the private wealth management of HNWI and
in Depth research will be taken to understand how HDFC Bank manage their HNWI'S
portfolios and what understanding do the clients have about their ongoing wealth
management.
Timely decision-making: When banks follow the route of private wealth management
services they have a time bound plan to be followed. For instance wealth management
advisers know the time frame around which the markets demand for certain investments
will be high and low and advise their clients to trade in the capital markets accordingly.
This way firms do not miss any opportunity of investing, buying or selling their assets
and can make maximum earning out of them.
Covers multiple aspects: The term wealth is a broadened concept in terms of business and
includes many things. From shares, securities, bonds, property, hard cash; multiple
elements together are categorized under wealth, HDFC Bank treat every company and
individuals as a unique customer and manage their wealth in a customized manner.
2.6 Data Collection
In dealing with any real life problem it is often found that data at hand are inadequate and
hence, it becomes necessary to collect data that are appropriate. There are several ways of
collecting the appropriate data which differ considerably in context of money costs, time
and other resources at the disposal of the researcher.
For data collection, questionnaire (survey instrument) will have to be prepared so that
adequate information will be collected from the respondents by asking appropriate

questions. Data collection should be systematic so that reliable and relevant data are
collected for research purpose. “Without data, you are just another person with an
opinion”.
The study is based on both primary and secondary data, however the secondary data
plays major role to achieve aims and objective of the study. The primary and secondary
data are used in the appropriate proportion. Both the data are having the vital significance
in the research study. The primary data is first hand information which is generated from
primary sources and secondary data is second hand information which is generated from
secondary sources. Both primary and secondary data in the project. Primary data through
questionnaire and secondary data through journals, office documents, and other sources
of published information like website of company.
2.6.1 Primary Data
Primary data constitute first-hand information which is collected for the first time in
order to solve research problem. it is the data collected from primary sources which are
original sources. It is fresh data collected for the first time directly from the respondents.
Primary data is important as it gives reliable factual first-hand information for research
purpose. Primary data collection is time consuming and costly. Primary data are collected
for detailed information on certain aspects of research project. Such data are also
collected when the secondary data available are old, outdated or inadequate.
Examples of primary data: Data collected through observation, experimentation, surveys

and questionnaire.
There are many sources of primary data which are used to generate first hand
information. This data is collected by conducting bank account holders and bank
employees which are effectively engaged in banking business. The questionnaire
specially prepared to conduct interviews of the bank account holders and the bank
employees. Many factors are considered for formulating this questionnaire. It is
formulated in such way that the relevant information would be collected. It took about six

days to formulate this questionnaire for collecting adequate care is taken to formulate the
questionnaire for collecting adequate information to achieve said aims and objective.
2.6.2 Secondary Data
Secondary data are easily or readily available in the published form and are used for
conduct of research activity. Secondary data are actually borrowed data from its
published source. Initially, such data may be primary data but when used for research
purpose, they are to be treated as secondary data. Such data are used extensively in
academic research. Secondary data are available from internal sources (old records of the
company, sales invoices, financial records, etc.) and external sources. Secondary data are
supportive in character. Secondary data are used to support and substantiate the primary
data collected for the research project under study. This data are quantitative data used
for supporting primary data.
Examples of secondary data: census reports, reports of committees and published

information through print media, journals and government publications like economic
survey and budget documents.
Secondary data is inexpensive and takes less time in obtaining it. Even the processing of
data is economical. Secondary data are affordable. As it is readily available its validity
needs confirmation. There is no privacy or secrecy of secondary data. The data are kept
on sale and any person in need of it can buy it. Data is easily accessible to anyone. There
is no problem as regards its disclosure and secrecy. The significance of secondary data is
that it leads to saving time, because the data is readily available it enable to make quick
decisions. Moreover, the data is available in processed form. There is no need to make
elaborate processing. The secondary data available may not be relevant to the subject
matter of research work. Lack of in-depth information in secondary data, possibility of
biased information available, unsuitability of secondary data for specific research project,
may affect the quality of research work.
2.7 Research Technique
Structured Questionnaire and personal interview, telephonic interview and observation

research technique was used in the project. Type of questionnaire In this project I have
used close ended structured questionnaire to collect the actual view of the consumers and
their approach towards the company and investment decision services.
2.7.1 Contact Method

Personal contact method was used: - This is the most versatile method. The interviewer
can ask more question and record additional observation about the respondent. These are
of two forms (i):- Arranged interviews: Responded are contacted for an appointment (ii):-
Intercept interview: Involved stopping people at the shopping mall or busy street corner
and requesting an interview. Intercept interview is the gives of Non-probability sample.
2.8 Sampling Unit
A decision has to be taken concerning a sampling unit before selecting sample. Sampling
unit may be a geographical one such as state, district, village, etc., or a construction unit
such as house, flat, etc., or it may be a social unit such as family, club, school, etc., or it
may be an individual. Sampling unit was taken from different areas.
2.8.1 Size of Sample
This refers to the number of items to be selected from the universe e to constitute a
sample a major problem before a researcher; the size of sample should neither be
excessively large, nor too small. It should be optimum. “I have taken 63 people as a
sample size in the project”.
2.9 Demographic Analysis
Demographic analysis is a technique used to develop an understanding of the age, sex,

and racial composition of a population and how it has changed over time through the
basic demographic processes of birth, death, and migration. Demographic Analysis
(usually abbreviated as DA) also refers to a specific set of techniques for developing
national population estimates by age, sex, and race from administrative records to be used
to assess the quality of the decennial census.
The DA population estimates are constructed using vital statistics, estimates of net
international migration, and for the population aged 65 and over, data from Medicare.
Traditionally, the DA estimates have been disaggregated by sex and single year of age,
and the race categories have been Black and non-Black. Characteristics such as race,
ethnicity, gender, age, education, profession, occupation, income level and marital status,
are all typical examples of demographics that are used in surveys are factors taken under
consideration while doing this project and research.

 Analysis Of Gender
Male 39
Female 24
Gender
Male Female
38%
62%
From the above table shows that 38% respondents are Female and 62% are Male.
 Family Structure
Nuclear 40
Joint 23
Family
Nuclear Joint
37%
63%
From the above table shows that 37% respondents are Female and 63% are Male.

 Annual Income (in Rs.)
Up to 2,00,000 16
2,00,000 – 5,00,000 23
5,00,000 – 10,00,000 16
10,00,000 – 25,00,000 7
More than 25,00,000 1
Annual Income
up to 2,00,000 2,00,000 - 5,00,000 5,00,000 - 10,00,000
10,00,000 - 25,00,000 More than 25,00,000
2%
11%
25%
25%
37%
The above graph shows that 25% Respondents earns around up to Rs.2, 00,000 per year.
37% respondent earns Rs. 2,00,000 to Rs. 5,00,000 per year. 25% respondent earns Rs.
5,00,00 to Rs. 10,00,000 per year.
 Stage Of Life Cycle
Young and Unmarried 27

Young and married, with no children 6
Married and having young children 21
Married and having older children 6
Retirement 3

Stage of Life Cycle

Young and Unmarried Young and married, with no children
Married and having young children Married and having older children
Retirement
5%
10%
43%
33%
10%
From the above graph that 43% respondents are from young & unmarried. 33%
respondent are married & having young children. 9% respondents are from young and
married, with no children. 10% are married and having older children.
 Sector In Which They Are Employed
Government Sector 14
Private sector 26
Business 11
Professionals 5
Home Maker 4
Others 3

Employed Sector
Government Sector Private sector Business
Professionals Home Maker Others
5%
6%
22%
8%
17%
41%
The above graph says 41% works in private sectors. 18% work in their own business.
22% are government employees. 11% are home maker and others.
 Years They Are Working In Profession
Less than 2 Years 24

2-5 years 13
5-10 years 8
10-20 years 4
20-30 years 5
More than 30 years 9

Years They Are Working In Profession

Less than 2 Years 2-5 years 5-10 years
10-20 years 20-30 years More than 30 years
14%
8%
38%
6%
13%
21%
38% respondents are working less than 2 years. 21% respondents are working from 2-5
Years. 13% are working from 5-10 years. 14% respondents are working from more than
30 years.14% respondents are working in between 10- 30 years.

CHAPTER III
3.1 LITERTURE REVIEW
A literature review discusses published information in a particular subject area, and

sometimes information in a particular subject area within a certain time period.
A literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a recap
of the important information of the source, but a synthesis is a re-organization, or a
reshuffling, of that information. It might give a new interpretation of old material or
combine new with old interpretations. Or it might trace the intellectual progression of the
field, including major debates. And depending on the situation, the literature review may
evaluate the sources and advise the reader on the most pertinent or relevant.
 Velmurugan et al (2002)1 concludes that investment done in various investment

avenues with the expectation of capital appreciation and short and long term
earnings. The basic idea behind investment of all government, private, self-
employed and retired person in this study is to utilize the surplus money in
favorable plans so that the money will be rolled back as well as it will give high
returns also. When a common men thinks about investment he will never go for
any risky plan. In the present scenario the share and gold market is highly
uncertain and unpredictable, so the investor should analyze the market cautiously
and then make investment decision.
 Rahul agarwal (2014)2 says that digital is a threat to established participants in

Private wealth management. Younger, technologically-savvy investors have a
greater comfort level with self-directed investing than the older generation of
today. These investors have also grown up in a world where young companies
routinely disrupt older companies—and often create entirely new industries. As a
result, the next generation of investors is likely to have a greater openness to
directing their savings to entities that rely on new models and different
1
A new Banking policy and book of procedure (vol-1) 1997-2002, Velmurugan et al (2002)
2
University of Bombay on ‘A study of Private Wealth Management Pattern of HDFC Bank in India year
2014

technologies—all at lower cost—than established private wealth managers. But

there are also digitally-oriented opportunities for established private wealth
managers to deepen their connection with investors through the use of enhanced
communications platforms, while also improving the overall investor experience.
Significantly, technology can also be harnessed to reduce operating costs—
savings that can be passed along as lower fees to investors.
 Schroder (2013)3 analyzes the responses to a represent survey of wealth advisors

on private wealth management practices, and compares the advisors’ views to
academic research in household finance. This study demonstrates that many
wealth managers do not apply novel insights proposed by financial economists
when advising their investors. Many practitioners focus on managing only the
market risk exposure of their investors’ portfolios. Although financial research
has stressed the importance of incorporating human capital, planned future
expenditures and the investment time horizon into the investor’s asset allocation,
these aspects are neglected by most practitioners.
 Gilotra, A. (2003),4 in his study on retail lending, views that the success of retail
lending of a bank depends on factors like marketing efficiency, proper appraisal
and follow-up. He also finds that HDFC has become very excellent in housing
finance solely due to the long term strategies adopted by them.
 Cognizant Reports (2011)5 published a report which says that India’s wealth
management services sector is largely fragmented, which isn’t surprising given
the industry is still in its early days. Most organized players have so far focused
mainly on the urban segment, leaving untapped about one-fifth of India’s high net
3
A Study of Performance of Private Sector Banks in Kerala. Ph D Thesis, Kerala University, Schroder
(2013)
4
Gilotra, A. (2003). Retail Banking: Lending. IBA Bulletin, 25 (11), 22-25,
5
Performance Effectiveness of New Generation Banks, Cognizant Reports (2011)

worth individuals (HNWI) population. While early entrants and established local
players have gained trust with potential investors, firms looking to enter the
market will need to invest heavily in brand-building exercises to convey their
trustworthiness. Hence, it is recommended that firms take a long-term view while
evaluating potential return on investment. The overall outlook and trends in India
indicate a huge potential for growth for new and established wealth management
firms.
 Sharma (2008-2010)6 says that wealth management strategies for individuals in

retirement, focusing on trade-offs regarding wealth creation and income security.
Systematic withdrawals from mutual funds generally give opportunities for
greater wealth creation at the risk of large investment losses and income
shortfalls. Fixed and variable life annuities forgo bequest considerations and
distribute the highest incomes. A variable annuity with guaranteed minimum
withdrawal benefit (VA GMWB) somewhat addresses both income need and
wealth preservation. Mixes of mutual funds and fixed life annuities deliver
solutions broadly similar to an even more flexible than a VA GMWB strategy.
 Sarkar, P. C. and Das, A. (1997),7 Say make a comparison of the performance of

the three bank sectors - public, private and foreign - for the year 1995-1996.
These banks are compared in terms of profitability, productivity and financial
management. They find that the public sector banks are very poor in performance
on the basis of these variables than the other two sectors.
6
A Comparison of Financial Performance of Private Sector Banks. Finance India, XVII (4), 1345-1356,
Sharma (2008-2010)
7
Sarkar, P. C. and Das, A. (1997). Development of Composite Index of Banking Efficiency, the Indian
Case. Occasional papers 18, RBI central office Mumbai,

 Casella et al (2005).8 Explains the segment of banking services that focus on

families and family-owned businesses, within the private banking business, by
examining synergies among the various financial integrated activities and by
offering ideas on how to develop new business opportunities.
 Varghese, N. S. (2000 March 15).9 The opinion that new generation private
sector banks with their latest technology are able to implement e-banking and are
highly preferred by investors in the stock market. He also points out that
prominent new generation private sector banks like HDFC and ICICI have
entered into internet banking through which greater convenience is offered with
lower transaction cost.
 Bikram, De. (2003).10 Makes a study on the effects of ownership on bank

performance. He compared old private sector banks and new generation banks in
terms of profitability, efficiency, liquidity etc.
 Qamar, F. (2003).11 Has done a comparative study on the “Profitability and

resource use efficiency in scheduled commercial banks in India”. He finds that
efficiency of new private bank is better though marginally than the old private
sector banks and public sector banks.
8
Casella et al(2005), Banking on a Change. ICFAI Reader, ICFAI University press, Benjara Hills,
Hyderabad, 69-72.
9
Varghese, N. S. (2000 March 15). New Private Sector Banks: New Kids on the Block. Business line,
10
Bikram, De. (2003). Ownership Effects on Bank Performance: A Panel Study of Indian Banks. Paper
Presented at Fifth Annual Conference on Money & Finance in the Indian Economy.
11
Qamar, F. (2003). Profitability and Resource Use Efficiency in Scheduled Commercial Banks in India: A
Comparative Analysis of Foreign, New Private Sector, Old Private Sector and Public Sector banks.
Synthesis, 1 (1), 1-16.

 Sudhir, M. (2005).12 In his study “private banking – a paradigm shift” points out
that the potentials of private banking in rural and semi urban areas remain
untapped. The potential customers in the rural and semi urban areas provide
opportunities for the growth of retail banking in future.
 Vyas, R.K. and Dhade, A. (2007).13 who conducted a study on “The impact of
new private sector banks on State Bank of India” observe that the new private
sector banks are not a threat to the SBI at present but the situation may change in
future. The SBI with a vast net work of branches and presence is able to compete
with these banks at present.
 Arti, Gaur. (2009).14 In her comparative study of HDFC bank and SBI found
that HDFC bank performs better in staff behavior and services than SBI. She also
found that the competitive rate and commitment make satisfied customers while
hidden charges is the reason for dissatisfaction with HDFC bank.
 Bharathi, Pathak (2003).15 Is of the opinion that new generation private sector
banks with their latest technology are able to implement e-banking and are highly
preferred by investors in the stock market. He also points out that prominent new
generation private sector banks like HDFC and ICICI have entered into internet
banking through which greater convenience is offered with lower transaction cost.
12
Sudhir, M. (2005). Retail Banking in India - a Paradigm Shift. Chartered Financial Analyst, XI (2), 63-
64.
13
Vyas, R.K. and Dhade, A. (2007). A Study on the Impact of New Private Sector Banks on State Bank of
India. The IUP Journal of Bank Management, 6, 61-76.
14
Arti, Gaur. (2009). Customer Satisfaction Regarding Home Loans– A Comparative Study of HDFC Bank
and SBI Bank. International Journal of Information Technology and Knowledge Management, 2 (2), 379-
381.
15
Bharathi, Pathak (2003). A Comparison of Financial Performance of Private Sector Banks. Finance India,
XVII (4), 1345-1356,

CHAPTER IV
4.1 DATA ANALYSIS & INTERPRETATION
Analysis of data I the process of re-arranging the collected data in a systematic manner
for interpretation purpose. Analysis prepares data ready for interpretation and drawing
conclusions. Raw data has no usage in marketing research. Hence, appropriate analytical
tools must be used. Advanced statistical tools can also be used if the researcher has an
access to it techniques.
In the analysis of data, the arranged data are examined as regards relevance, validity and
practical utility in the marketing research project undertaken. It is a critical evaluation of
data in terms of quality and making the data ready for interpretation purpose. Analysis of
data provides basis for the interpretation. It is the critical study of the data from different
angles. It is the most skilled task in the research process.
According to David J. Luck and Ronald S. Rubin, statistical analysis means “ the
refinement and manipulation of data that prepares them for the application of logical
inference.”
Analysis of data and interpretation of data are closely related concepts. However, analysis
is prior to interpretation and prepares proper background for the interpretation and also
for drawing conclusions.

4.1.1 Types of Data Analysis

Analysis of data may be classified into the following types / categories:
 Descriptive Analysis:
Descriptive analysis uses both qualitative and quantitative research methods. Descriptive
research refers to the type of research question, design and data analysis that will be
applied to a given topic. Descriptive research reports summary data such as measures of
central tendency.
 Inferential Analysis:
Inferential analysis is used to generalize the results obtained from a random sample back
to the population from which the sample was drawn. This analysis is required when a
sample is drawn by a random procedure and the response rate is very high. Inferential is
the process of trying to reach conclusions that extend beyond the immediate data.
 Correlation Analysis:
Correlation Analysis is conducted by drawing a graph of the two series under study. Such
a graph is called scatter diagram. Correlation is a statistical technique. Correlation does
not always show a causal relationship between two or more variables. When there is
perfect correlation the points fell on a straight line in a diagonal form. If this straight line
is rising on the right, the correlation is positive and if it is falling, the correlation is
negative.
 Causal Analysis:
Causal Analysis is attempted when the researcher tries to answer a question that asks
“why?” He tries to determine a cause for an effect. showing causes, reason, effects and
the results or consequences is a natural way of thinking. Causal analysis seeks to identify
and understand the reasons why things are a they are and hence enabling focus of change
activity.

4.1.2 MEANING OF INTERPRETATION OF DATA
In research project, analysis and interpretation of data are two major concluding steps.
Analysis of data is the verification of data already arranged in a systematic manner. It is
followed by the interpretation of data.
Interpretation is the climax of the research process. It is basically subjective process in

which the researcher has to draw conclusion by using the data as a base. He has to use his
common sense, knowledge, experience and intellectual honesty while drawing specific
conclusion and also while making concrete recommendations.
It is rightly said that interpretation means adding information to mere facts and figures.
Interpretation is a process of drawing inference from collected facts. Interpretation is the
ultimate purpose of all research activates. Interpretation of data is not mere
summarization of data. It is adding new meaning and significance to the conclusions
available from the data collected. Interpretation of data is very crucial stage in the
research process. Analysis and interpretation are two key components of a research
process.

1. Do You Have Proper Financial Planning?
Series 1
45
40
35
30
25 Series 1
20
15
10
0
YES NO
Figure 1: shows the responses on proper financial planning
Interpretation:
The above data shows that 65% of surveyed respondents have proper financial
planning of their income; the remaining 35% respondents don’t have proper
financial planning which is an issue in this fast growing economy.
2. If YES, Do You Have Systematic Approach To Investing?
Series 1
30
25
20
Series 1
15
10
0
YES NO NOT SURE

Figure 2: Show that how many respondents have Systematic approach to investing
Interpretation:
This graph show that how much respondent knows about systematic approach of
investment. 60% of respondents said that either they are not sure about it or they
don’t know anything on systematic investment approach, whereas 40%
respondents know about systematic investment approach.
3. What Percent Of Income You Invest (Save)?
Series 1
20
18
16
14
12
Series 1
10
8
6
4
2
0
Less than 5% 5% - 15% 15% - 25% 25% - 30% more than 30%
Figure 3: Show percent of income respondent invest (save) for
Interpretation:
The graph shows that 30% of respondents save around 5 to 15% of their total
income. Only 15 responded save around 15 to 25% and only 9% respondent save
more than 30%.

4. Are You Aware Of Agencies/ Private Services Provided By Banks?
Series 1
35
30
25
20 Series 1
15
10
0
YES NO NOT SURE
Figure 4: awareness about agencies services of bank
Interpretation:
Here 50% of the respondents are aware about private banking services, on same
hand 31% are not aware about the same and 19% are not sure about these
services.

5. According To You Which Bank Provide Better Services Private Or Public

Sector?
Series 1
40
35
30
25
Series 1
20
15
10
0
Private sector Public sector
Figure 5: Better service provided by the private or public sector
Interpretation:
In this graph 61% respondent knows how to balancing uncertainty with various
asset mixes in investment where as only 39% does not know how to manage
uncertainty.
6. Do You Have An Account In HDFC Bank?

Series 1
60
50
40
Series 1
30
20
10
0
YES NO
Figure 6: show how many respondent consult Financial Planner
Interpretation:
By the above data shows that around 23.8% of respondents consult financial
planner whereas 77.2% proportion of respondents do not consult any financial
planner which might lead to inefficient wealth management.
7. If Yes, The Services Provided By Hdfc Bank Are Satisfying?
Series 1
14
12
10
8 Series 1
0
YES NO
Figure 7: If respondent is satisfied with the service of HDFC bank

Interpretation:
In this graph only those respondent who said yes in previous question are
examined in this and 98% respondent are satisfied with the services provided and
remaining 2% are dissatisfied.
8. Are you aware of Private Wealth Management?
Series 1
60
50
40
Series 1
30
20
10
0
YES NO
Figure 8: To know the awareness about Private wealth management
Interpretation:
76% of respondents know about private wealth management where as only 24%
respondents are not aware about private wealth management.
9. Do you know about Portfolio Management Services?

Series 1
32.2
32
31.8
31.6
31.4 Series 1
31.2
31
30.8
30.6
30.4
YES NO
Figure 9: Do respondent know about portfolio management services
Interpretation:
By this graph we can say that 51% of the respondent knows about portfolio
management services where as half don’t know about it.
10. Have you read any material on Wealth Management?
Series 1
50
45
40
35
30
Series 1
25
20
15
10
5
0
YES NO
Figure 10: How many respondents read any material on wealth management
Interpretation:

43 respondents haven’t studied any material on wealth management where as only

20 respondents who belongs basically to related field of wealth management.
11. Do you think HDFC bank provide better facility then other private banks?
Series 1
30
25
20
Series 1
15
10
0
YES NO NOT SURE
Figure 11: Respondent view about the facility provided by HDFC bank.
Interpretation:
This graph show that how much respondent knows about systematic approach of
investment. 60% of respondents said that either they are not sure about it or they
don’t know anything on systematic investment approach, whereas 40%
respondents know about systematic investment approach.
12. Duration you prefer for investment

Series 1
35
30
25
20 Series 1
15
10
0
Short Term Medium Term Long Term
Figure 12: Time horizon respondent invest for
Interpretation:
Horizon is very important will investing in any investment; here 50% of the
respondents prefer medium term investment, on same hand 31% investors prefer
long term investments but 19% investors invest for short term.
13. Would you prefer HDFC bank to provide to agency facility related to investment?
Series 1
50
45
40
35
30
Series 1
25
20
15
10
5
0
YES NO

Figure 13: Respondent view over HDFC bank as choice
Interpretation:
71% respondents will prefer HDFC bank while 29% respondents do not prefer.
14. Which Of The Following Investment Avenues You Have Invested?

(Till date) (Please rank them in your preference)
Rank Saving Bank Public Nation Post Governm Gold Life

Account Fixed Provid al Office ent Insur
Depos ent Saving Certific Securities ance
it Fund Certific ate
ate
1 26 19 10 0 4 1 6 6
2 8 9 7 3 2 1 6 2
3 5 9 5 3 2 1 3 6
4 6 3 3 2 5 0 3 4
5 4 3 1 2 1 1 6 9
6 2 4 1 1 1 3 0 1
7 3 0 1 0 0 2 2 2
8 1 0 0 2 0 0 1 1
9 1 0 0 1 1 1 1 0
10 0 1 0 0 0 1 1 1
Not 7 15 35 49 47 52 34 31
Answe
red

70
60
50
Not Answered
40
Series 10
30 Series 9
Series 8
20 Series 7
Series 6
10 Series 5
Series 4
0 Series 3
Series 2
Series 1
Figure 14: Investment avenues respondent have invested
Rank Real Equity Mutua Debentur Bond Commodit Forex Chit

estate market l fund e s y market marke fund
t s
1 6 1 7 0 0 3 4 1
2 2 2 3 2 2 3 2 1
3 2 1 2 1 4 2 2 1
4 2 4 1 1 0 1 3 0
5 1 2 1 0 0 1 0 1
6 2 1 4 0 0 1 1 0
7 1 3 2 0 0 1 1 0
8 0 0 1 0 1 2 0 0
9 1 0 2 0 0 0 0 0
10 1 2 0 1 1 1 2 1
Not 45 47 40 58 55 48 48 58
Answer
ed

70
60
50
Not answered
40 Series 10
Series 9
30 Series 8
Series 7
20 Series 6
Series 5
10 Series 4
Series 3
0 Series 2
Series 1
Figure 15: Investment avenues respondent have invested
Interpretation:
After studying all the investment avenues we can say that saving account has
given first rank by 41% of respondent. Followed by bank fixed deposit, public provident
fund, mutual funds, life insurance, gold, real estate. Many respondents didn’t diversify
very much with their requirements with minimum risk they want to diversify most.

15. Do you think private wealth management service is profitable for the
investor?
Series 1
35
30
25
20 Series 1
15
10
0
yes no not sure
Figure 16: Private wealth management profitable.
Interpretation:
51% of respondent thinks it is profitable while 19% think it’s not profitable and
30% respondents are not sure.

CHAPTER V
5.1 FINDING
 56% of young and unmarried people working in the private sector don’t have
proper financial planning.
 On other hand married and having young & older children prefer for financial
planning and do consult with financial plan to manage their asset mix.
 We can categorize married people into 4 segments i.e. young and married, with no
children; married and having young children; married and having older children
and retirement it will constitute 36 out of 63 respondents, out of those 36
respondents only 29 respondents says that they have proper financial planning,
but from those 29 only 9 respondent consult to financial planner to plan their asset
mix.
 Mostly Male prefers comprehensive financial planning as they invest in various
asset mixes.
 Most of the mutual fund investors prefer systematic approach based on SIP for
investment. But on other hand we can say that most of the respondent doesn’t
know the benefits of systematic approach.
 Respondent having their annual income up to 5, 00,000 prefers to save only 5% to
15%. In a same way only 6 respondents go for more than 30% of saving as they
prefer comprehensive financial planning.
 Extremely risk averse haven’t invested in any risky asset as they play a safe game
and most of respondent prefer saving account to be their 1st option but on same
extremely risk oriented prefer to invest in most risky assets.
 Respondent who are young either unmarried & married are not aware how to
balance uncertainty with various asset mix.
 Long term horizon is mostly prefers by fixed asset allocation respondent and even
they have proper financial planning.

5.2 CONCLUSION
The wealth management industry in India is poised for significant expansion,

given the favorable market landscape and expected regulatory boosts for the
sector. This provides exciting growth opportunities which will drive rapid market
expansion, coupled with an increase in the number of industry participants. To
successfully tap into these potential, financial services organizations must
undertake a customized approach, taking into account the specific variables of the
Indian market. This will need to be supported by cost-effective business model
focused on improved transparency and compliance, partnerships and efficient
technology solutions.
By survey we can say that many individual don’t know the real meaning of
wealth management as they interpret it as financial planning. Out of 63
respondents 58 respondents say that they are aware about wealth management.
Respondent prefer risk free asset to be in their portfolio like PPF, FD’s, Life
insurance, Gold etc. thus we can say that these are some popular sources other
than saving account.
On an average saving percentage give an outlook of risk that person can beer.
Low saving ratio lead to lower risk & high saving ratio lead to high risk.
Higher the return, higher the risk will be. Mutual funds though given the higher
return in long run than any other asset mix but yet not been preferred by many of
respondents, now a day SIP is more popularizing in mutual fund.
In recent years, the proliferation of wealth management products and innovative

financial services have contributed to the steady growth of wealth management as
an attractive and lucrative service sector within the financial industry around the
world. The constant forward march of technology is opening new markets in
wealth management.


Private Welth Management With Refernce To HDFC Bank

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Wealth Management With Reference To Hdfc Bank

1.1 INTRODUCTION ABOUT WEALTH MANAGEMENT

Greatly accustomed in offering commoditized financial services so far, demand of

Sydenham College Of Commerce And Economics 1

1.1.1 Concept of Wealth Management

1.2 Key Elements of Wealth Management Services

Wealth management services involve fiduciary responsibilities in providing professional

• Advisory Wealth manger’s role is limited to the extent of providing guidance on

• Investment Processing (transaction oriented) Client engages wealth manager to execute

• Custody, Safekeeping and Asset Servicing Client is responsible for investment

Sydenham College Of Commerce And Economics 2

1.3 Concept of Private Wealth Management

Private wealth management is an investment advisory practice that incorporates financial

1.3.1 Who Needs Private Wealth Managers?

traditional investment advisers are qualified to give.

1.3.2 Who are Private Wealth Managers?

Sydenham College Of Commerce And Economics 3

1.4 Key Challenging Area

 Highly Personalized and Customized Services

Unlike other stream of financial services, mostly being transactional / commoditized in

 Personal relationship driving the business

To meet client expectation of personal attention, mode of communication in private

 Evolving Client Profile

The biggest challenge in providing private wealth management service offering is to

Sydenham College Of Commerce And Economics 4

 Client Involvement Level

 Technical Architecture and Technology Investment

As business architecture is still evolving, a proven basis of resilient technical architecture

 Passion Investment (Philanthropy and Social Responsibility)

Sydenham College Of Commerce And Economics 5

1.5 Functional Area

 Portfolio Strategy Definition/ Asset Allocation

 Portfolio Management – Administration, Performance Evaluation and Analytics

 Strategy Review and Modification

Client profiling takes in account multitude of behavioral, demographic and investment

 Current and future Income level

 Family and life events

 Risk appetite / tolerance

 Asset Preference /restriction

 Cash flow expectations

 Behavioral History (Pattern of past investment decisions)

 Level of client’s engagement in investment management (active / passive)

Sydenham College Of Commerce And Economics 6

 Portfolio Strategy Definition / Asset Allocation

 After establishing investment objectives, a broad framework for harnessing

 Investment strategy helps in forming broad level envisioning of asset class

 While defining the strategy, consideration of client preference or avoidance for

Sydenham College Of Commerce And Economics 7

 Determinations of Portfolio Constituents and Allocation of Assets Guided with

 Thus, a broad level investment guidance of – “investment in fixed income in

 Return profile, risk sensitivity and co-relation of constituents within portfolio

 DISCIPLINED PORTFOLIO BUILDING APPROACH

• Review investment objective, portfolio progress, asset allocation & portfolio

• Rebalancing existing portfolio

Sydenham College Of Commerce And Economics 8

 Portfolio Management Portfolio Administration

Portfolio Administration involves handling of investment processes and asset servicing.

Performance evaluation of the portfolio is an ongoing process. Portfolio return is

Sydenham College Of Commerce And Economics 9

 Strategy Review and Alignment

1.6 Wealth management practice orientation overview

 Product Expert: Handles high-volume transactions involving sophisticated

 Investment Broker: Handles transactions involving basic asset classes, such as