I am P.

SRAVYA pursuing MBA in NALSAR University and as per my Summer Project

Training , I am conducting a study, which is aimed at Analysis on various wealth creation
products of Bank of Baroda. I request you to spare a few minutes of your valuable time to
answer this Questionnaire.
I assure you that the data would be kept confidential and strictly used for academic purpose
only.
Details of the investors:
Name: Gender: Age:=
Occupation: Annual income:
1. Which are the Investment products offered by Bank of Baroda are you aware of?
o Super Savings account o E-Kisan Vikas patra Scheme
o Baroda Samriddhi fixed deposit o Sukanya Samriddhi Scheme
o Public provident fund o Mutual fund
o Sovereign Gold Bond o Life insurance
o National Pension system o Baroda e trade (Share trading )
o Senior Citizen saving scheme
Which are the best investment options you would prefer to invest money?
(Choose from the above list)
Rank in the Order of Preference Reasons for Selecting the options:

1. __________________________ _______________________________

2. __________________________ _______________________________

3. __________________________ _______________________________

4. __________________________ ________________________________

2. What are the factors you look before any Investment?

a) Safety d) Liquidity
b) Return on investment e) Risk tolerance
c) Type of investment f) All
3. What will be your Long Term Investment Goal?
a) Health d) Children marriage
b) Children Education e) Retirement
c) Others –Please specify( _______________________________________ )
4. What is the purpose of your Investment?
o Wealth Creations
o Tax saving
o Earn returns
o Future expenses
o Others
5. % of return that you are expecting from your Investment
a) 5-10% c) 15 -20%
b) 10-15% d) Above 20%
6. What is the time horizon of your Investments ?

a) < 1 year c) 2- 5 years

b) 1-2 years d) > 5 Years
7. Rate the below GOI products from 1 to 5, (1 is the highest & 5 is the lowest rank)

a) Sovereign Gold Bond ( 1 2 3 4 5 )

b) National Pension System ( 1 2 3 4 5 )

c) Sukanya Samridhi ( 1 2 3 4 5 )

d) Public provident fund ( 1 2 3 4 5)

e) E-Kisan Vikas patra ( 1 2 3 4 5 )

8. Do you like to invest in insurance linked Investment Product ?

a) Yes b) No
if Yes, Which plan you prefer?
a) Unit Linked Insurance Plan c) Child plans
b) Savings plan d) Retirement plan
9. Are you interested in mutual fund investment?
a) Yes b) No
If Yes, Where would you like to invest in mutual fund?
a) Equity c) Balanced
b) Debt d) Tax Sheild
e) No idea
10. Which source do you trust for your investment decisions?
o Bank staff
o Family & friends
o Financial advisor
o Advertisements
o Govt Websites
o Any other………………..
 Page
S No. Topic
No.

1 Preface

2 Declaration

3 Acknowledgment

4 Company Profile

5 Introduction & History

6 Objective of study

7 Scope of the study

Research methodology
8

9 Recommendations

10 Wealth Management in India- Future

11 Bibliography

INTRODUCTION
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. Wealth
management is an investment advisory service for high net worth individuals. It is provided
by financial institutions to help individuals protect and grow their wealth. This advanced
investment advisory discipline involves providing a diverse range of services, such as
financial planning, investment management, tax and cash flow and debt management, based
on client requirements.

There are two aspects to the wealth management process:

-Protecting assets from creditors, market crashes or slowdowns, taxes, lawsuits and other
unexpected events,

-Growing asset values through methods that actively manage risk and reward profiles to
client’s needs.

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.

Clients work with a single wealth manager who coordinates input from financial experts and
can include coordinating advice from the client's own attorney, accountants and insurance
agent. Some wealth managers also provide banking services or advice on philanthropic
activities.

BREAKING DOWN 'Wealth Management'

In general, wealth management is more than just investment advice, as it can encompass all
parts of a person's financial life. The idea is that rather than trying to make sense of advice
from a series of professionals, high net worth individuals benefit from a holistic approach in
which a single manager coordinates all the services needed to manage their money and plan
for their own and/or their family's current and future needs.

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. After
the original plan is developed, the manager meets regularly with clients to update goals,
review and rebalance the financial portfolio, investigate whether additional services are
needed and ideally, follow clients throughout their life.
Wealth managers are often part of a wealth-management firm, with access to a team of
inhouse experts and services, but may also be solo practitioners who rely on their own
network of independent experts.

The client segmentation is as follows in six categories:

1. Ultra-high net worth, or Ultra-HNW (in excess of 700 million)

2. Super high net worth (between 700 million and 2088.06 million)
3. High net worth (between 70 million and 700 million)
4. Super affluent (between 8,700,250 and 70 million
5. Mass affluent (between 1740050 and 8700250 )
6. Mass market (between 348010 and 17,400,50)

Currently in India there are majorly four types of wealth management service providers viz.
Banks, Brokerage firms, Boutique advisory firms and Individual advisors.

 Banks – Banks are known to have larger investment distribution model which means
that they do not concentrate on only one investment options but on a large investment
portfolio. Further they cater also to mid-level segment clients apart from the HNWI’s
 Brokerage Firms – Brokerage firms focus on investing the customer’s money
majorly in shares and IPO which are equity market products.
 Boutique advisory firms – Boutique advisory firms are known to provide
customized financial solutions to the clients which are majorly the ultra-HNWI’s
(greater than USD30 million) and HNWI’s (USD 1 million to 30 million)
 Individual Advisors – An upcoming segment providing advisory and investment
services to small time investors and individuals with a relatively lower net worth.

FUNCTIONAL AREAS OF WEALTH MANAGEMENT

 Financial Planning
 Portfolio Strategy Definition/ Asset Allocation/ Strategy Implementation
 Portfolio Management - Administration, Performance Evaluation and Analytics
 Strategy Review and Modification

Financial Planning
Client profiling takes in account multitude of behavioural, 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)
 Behavioural History (Pattern of past investment decisions)
 Level of client's engagement in investment management (active / passive)
 Present investment holding and asset mix

Based on the client profile, investment expectations and financial goals of the client could
beclearly 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 Estate, Art/Antique and Lifestyle Assets (Car, Boat,
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
Share is accompliant investment, strategy formulation should consider investment options
meeting withthe client expectations.

Determination 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
broadlevel 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, or other debt variants. Return profile,
risk sensitivity and co-relation of constituents within portfolio model would help to determine
the size (weightage) of each individual constituent in the 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 have bearing on
overall performance of the portfolio, many times process of asset acquisition may be spread
over a period of time to take care of market movement and acquire the asset at favourable
price range.

WEALTH MANAGEMENT PROCESS

Wealth management involves various steps. It involves preparation of financial plan that help
the client to achieve their goals and objectives. Financial Planning is a process. If the process
is strictly followed, the chances of meeting your objectives and achieving financial
independence will be considerably improved.

1. Discovery & Insights: Creating an effective wealth management plan starts with asking the
right questions: delving deeply into objectives, risk tolerance, liquidity and credit needs,
family and estate issues and service preferences. The wealth manager works closely together
and defines the client’s ultimate objectives, both for lifestyle and wealth transfer, and confirm
expectations, thus establishing a solid foundation for a management plan.

2. Asset Allocation : Guided by the client’s circumstances, goals and comfort level with
investment risk, the wealth manager explores the appropriate mix of asset classes. They
further identify the diversification between each asset class, showing how variations to the
allocation might impact risk exposure or return expectations. The client and the manager then
agree together on the most appropriate strategy.

3. Structural AnalysisThe wealth manager analyses each entity within the client’s portfolio,
including trusts and credit facilities, as well as special situations such as business interests,
concentrated stock positions or executive compensation. This enables the manager to quantify
the impact and opportunities of the current holdings and recommend appropriate strategies to
address any gaps or issues from every vantage point. In doing so, he/she is able to identify
important implications of each element, such as potential tax ramifications, liquidity
considerations or other issues.

4. Asset Location Building from the extensive analysis, the wealth manager apportions asset
classes to the appropriate entities to fully realize after-tax performance potential. By
identifying each entity's optimal after-tax contribution within the overall portfolio, the
manager helps construct the most efficient strategy, then submits it to the client for review
and approval.

5. Implementation: The wealth manager documents the plan's details in an investment policy
statement, ensuring a common understanding and consistent execution. He/she also reviews
communication and service plans with the client, aligning them with requirements
beforemimplementing the strategy.

6. Active Management: Having a well-executed plan in place is only the beginning. The way
it responds and adapts to the ever-changing market and client’s dynamic needs is where its
true value lies. The portfolio manager therefore actively manages your portfolio, making
investment decisions across and within asset classes, rebalancing positions to ensure
alignment to the strategy in all market cycles, identifying opportunities to harvest gains and
losses to maximize total after-tax performance, identifying potential strategy implications of
regulatory or tax policy changes, and regularly revisiting the goals, requirements and personal
circumstances. By remaining engaged with the client and client’s advisors, the wealth
manager can proactively address the evolving needs and recommend new ideas to add value.

WEALTH MANAGEMENT SERVICES

Wealth management offers the following services:

 Investment planning assists a person in investing his/her money into various

investment markets, keeping in mind his/her investment goals.
 Insurance planning assists a person in selecting from various types of insurances,
self-insurance options and captive insurance companies.
 Retirement planning is critical to understand how much funds a person require in
his/her old age.
 Tax planning helps in minimizing tax returns. This might include planning for charity,
supporting his/her favourite causes while also receiving tax benefits.
 Estate planning helps in protecting a person and his/her estate from creditors,
lawsuits and taxes. This service is critical for every person whose net worth is high.
 Business planning: This service aims at optimizing the tax free advantages of running
his/her own business.

INVESTMENT PLANNING

Everyone needs to save for a rainy day. Once a person has saved enough to take care of
emergencies, a person should start thinking about investing and to make his/her money grow.
A person should plan his/her investments so that a person can reap adequate benefits and
achieve his/her financial goals.

Investment Planning Process includes:

 Risk Profiling
 Asset Allocation and Portfolio Construction
 Creation and Accumulation of Wealth through Systematic Investment Plans (SIP)
 Regular review of progress and Portfolio Rebalancing

Essentially, Investment Planning involves identifying his/her financial goals throughout

his/her life, and prioritising them. Investment Planning is important because it helps a person
to derive the maximum benefit from his/her investments. His/her success as an investor
depends upon his/her ability to choose the right investment options. This, in turn, depends on
his/her requirements, needs and goals. For most investors, however, the three prime criteria
of evaluating any investment option are liquidity, safety and return.

Investment Planning also helps a person to decide upon the right investment strategy. Besides
his/her individual requirement, his/her investment strategy would also depend upon his/her
age, personal circumstances and his/her risk appetite. These aspects are typically taken care
of during investment planning.

Investment Planning also helps a person to strike a balance between risk and returns. By
prudent planning, it is possible to arrive at an optimal mix of risk and returns, that suits
his/her particular needs and requirements.

INSURANCE PLANNING

"Insurance is not for the person who passes away, it is for those who survive”, goes a popular
saying that explains the importance of Insurance [Link] is extremely important that every
person, especially the breadwinner, covers the risks to his life, so that his family's quality of
life does not undergo any drastic change in case of an unfortunate eventuality.

Insurance Planning is concerned with ensuring adequate coverage against insurable risks.
Calculating the right level of risk cover is a specialised activity, requiring considerable
expertise. Proper Insurance Planning can help a person look at the possibility of getting a
wider coverage for the same amount of premium or the same level of coverage for the same
amount of premium or the same level of coverage for a reduced premium. Hence, there is a
need for proper insurance planning.

So what are the risks that we run? To name a few - the risk on our lives that is, the worries of
replacement of the incomes that we contribute to the running of the household), the risks of
medical contingencies (since they have the capability of depleting our wealth considerably)
and risks to assets (since the replacement of these can have tremendous financial
implications). If we can imagine a situation where our goals are disturbed by acts beyond our
control, we can realize the relevance of insurance in our lives.
RETIREMENT PLANNING

Retirement planning is the important task of deciding how a person will live once he/she
retires. Retirement planning involves the consideration of a number of factors, including
atwhat age a person hopes to retire, how much money a person will need to cover living
expenses coupled with the things a person plans to do once retired, and where his/her money
will come from.

Each person's situation is unique, and therefore, retirement planning isn't one standard plan
for every person. Saving money for retirement through one or all of the available retirement
planning options is the first place to start. Many employers have retirement planning options
available to their employees. Some companies have pension plans, even without company
sponsored plans, retirement planning is possible for any individual who wisely invests his or
her money. A person can choose to talk to a financial planner. Another option is to discuss
investment and savings options with the bank where a person currently has his/her checking
or savings account. Many banks offer free advice to their account holders hoping to gain
more of their business through long-term savings.

Retirement planning involves more than just saving money. It's important to determine as
closely as possible what his/her potential expenses and compare them to his/her potential
income. For instance, if a person will be able to pay his/her mortgage off before retiring,
thatis one less expense a person will need to cover.

Depending on what age a person hope to be when a person retires, retirement planning should
also involve tax planning. By doing a little research and talking to financial professionals, a
person should be able to come up with a savings and investment plan that orks for a person.
A person can begin retirement planning at any stage in life, though earlier is better.

TAX PLANNING

Tax planning is a broad term that is used to describe the processes utilized by individuals and
businesses to pay the taxes due to local, state, and Central tax agencies. The process includes
Such elements as managing tax implications, understanding what type of expenses are tax
deductible under current regulations, and in general planning for taxes in a manner that
ensures the amount of tax due will be paid in a timely manner.
One of the main focuses of tax planning is to apply current tax laws to the revenue that is
received during a given tax period. The revenue may come from any revenue producing
mechanism that is currently in operation for the entity concerned. For individuals, this can
mean income sources such as interest accrued on bank accounts, salaries, wages and tips,
bonuses, investment profits, and other sources of income as currently defined by law.

Businesses will consider revenue generated from sales to customers, stock and bond issues,
interest bearing bank accounts, and any other income source that is currently considered
taxable by the appropriate tax agencies.

There are three common approaches to tax planning for the purpose of minimizing the tax
burden. The first is to reduce the adjusted gross income for the tax period. This is where
understanding current tax laws as they relate to allowances and exemptions come into play.

A second approach to tax planning is to increase the number of tax deduction

optionsavailable to us. Again, this means knowing current laws and applying them when
appropriateto all usual and normal expenses associated with the household or the business.
Since thesecan change from one annual period to the next, it is always a good idea to check
currentregulations.

One final approach that may be applicable to effective tax planning has to do with the use
ofretirement savings plans, donations to religious institutions, donations to relief funds,
college expenses, adopting children, and several other.

ESTATE PLANNING

Whether or not it's something we want to think about, it's important to set our affairs in order
so our loved ones won't be burdened with too many details in the event of our passing. Estate
planning is important because it ensures our assets will be transferred smoothly and
effortlessly when we're longer here to oversee them.

Estate planning includes, among other things, writing out one's Last Will and Testament,
naming a Power of Attorney and installing trusts. Estate planning isn't only for the wealthy,
either. Anyone with assets would be wise to look into it. If a person has a home, a car,
aretirement fund, stocks, bonds, or any other investments, it would be in the best interests
ofhis/her family for a person to meet with an estate planning professional.
The benefits of estate planning are many. The first and most important is that a person get to
designate where, or to whom, his/her assets will go. To not do so means his/her relatives may
end up fighting over everything in court.

Estate planning will allow the money to flourish even after a person is gone. A person will
beable to set up accounts and trusts for children and grandchildren which allow money to
grow. A person will be able to specify at what age the children will be allowed access to
these funds.