The present report is prepared for the partial fulfilment of MBA An - PDF document

1 Jiyo Easy........ 1
Jiyo Easy........ 1 SYNOPSIS The present report is prepared for the partial fulfilment of M.B.A. And as a part of curriculum . This is an attempt to Study of Awareness about Wealth Management in Lucknow with ING Vysya Bank . To pursue the research area are commercial places like ING Vysya Bank, Sahara Ganj Mall and various other places in Hazrat ganj Market, in Lucknow City was chosen, where the survey was conducted th rough QUESTIONNARE and INTERVIEW. The data collection is as analyzed and some practical tools were applied to get inferences from the survey. The results are printed in forms of graphs and diagrams. The research report has three sections, in its first section introduction to topic, in second section company and industry profile is given, where as in third section, research methodology is given which includes sample design, analysis on sample and presentation is in the form of bar diagra m and pi - charts. Suggestions with respect to the survey for future improvement are given to improve

2 the survey because their competitors ha
the survey because their competitors have also taken up the survey. At the end of the report, limitation s, recommendations and suggestions , conclusio n of the research and appendix which includes questionnaire has been included. Last there is Bibliography, Glossary which has th e technical terms of the report . Jiyo Easy........ 2 CHAPTER - 1 INTRODUCTION Jiyo Easy........ 3 OBJECTIVES OF THE REPORT  To determine and analyze the awareness and trends of wealth management in Lucknow City.  To study the overall scenario currently prevailing in the market, namely, the per capita income, occupation, literacy rate, etc.  To study and determine the competitor position in the market.  To determine the risk taking ability of responded.  To know about the trends in mutual fund and life insurance.  To know about the position of ING Vysya Bank in the market. Jiyo Easy........ 4 THEORETICAL PRESENTATION OF THE TOPIC DESIGN OF THE PROJECT SCOPE OF STUDY The Literature Survey I

3 NG Vysya Bank today is a part of the ING
NG Vysya Bank today is a part of the ING Group, the world's fourth largest financial services company and the seventeenth largest global corporation. The ING Group brings to ING Vysya 150 years of financial services ex perience and a heritage trusted by 60 million customers in 50 countries. The ING Group's customers have entrusted it with over US $700 billion of their wealth. The ING Group is a global leader with the financial strength and expertise to provide simple and effective answers to the customer's changing financial needs. ING Vysya in India is active in life insurance, asset management and banking. ING Vysya Bank intends to bring to its customers in India a range of integrated financial solutions tailored to meet customer needs in banking. Jiyo Easy........ 5 BANK A bank is an institution that provides financial service, particularly taking deposits and extending credit. SERVICES TYPICALLY OFFERED BY BANKS Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include:  Taking deposits from their customers and is

4 suing checking and savings accounts
suing checking and savings accounts to individuals and businesses  Extending loans to individuals and businesses  Cashing cheques  Facilitating money transactions such as wire transfers and cashier‘s checks  Issuing credit cards , ATM , and debit cards  Storing valuables, particularly in a safe deposit box Banking system of a nation is the shadow of nation‘s economy. A healthy and profitable banking system is just like the backbone of nation‘s economy. It is necessary for a nation to achieve growth and remain stable in this global world and glo bal economy. The Indian banking system, with on e of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution Jiyo Easy........ 6 HISTORY OF INDIAN BANKING SYSTEM Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct The oldest bank in existence in Ind

5 ia is the State Ba nk of India, a govern
ia is the State Ba nk of India, a government - owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence i n 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationali zed the 14 largest commercial banks; the government nationalized the six next largest in 1980. In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.  In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."  The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened with

6 out a license from the RBI, and no two
out a license from the RBI, and no two banks could have common directors Jiyo Easy........ 7 Fig. 1 Jiyo Easy........ 8 WEALTH MANAGEMENT Wealth Management is a discipline that incorporates financial planning, Investment portfolio management and a number of financial services. It is a professional service it can also encompass all parts of a person‘s financial life. Wealth management is done by wealth manage rs. Wealth managers can be MBAs, CFAs, certified financial planners or any credentialed professional money manager who works to enhance the growth and income. Investors must have already accumulated a proper amount of wealth for wealth management strategie s to be efficient and effective. It can be provided by large company entities, independent financial advisers or multi - licensed portfolio managers. Their services are designed to focus on high - net worth customers. Wealth Managers use their experience in es tate planning, risk management and legal specialists, t

7 o manage the holdings of high net worth
o manage the holdings of high net worth client. Wealth managers must contain a current profile of client holdings. Wealth management is an integrated process for helping clients manages their wealth. I t involves huge a wide range of services and the services depend upon each investor but the condition is that services should include investment management, financial planning, retirement, Estate planning, tax planning, debt management and cash flow. It is based on the long term relationship with the customer. It results in deeper customer relationship which leads to increased profitability and more client referrals. Wealth management offers wealth managers the opportunity to cross - sell a huge range of serv ices and products to each customer as appropriate. Wealth management is an emerging sector. Jiyo Easy........ 9 W EALTH MANAGEMENT SERVICES Wealth management offers the following services: Investment planning: assists you in investing your money into various investment markets, keeping in mind your investment goals. Insurance planning : a

8 ssists you in selecting from various typ
ssists you in selecting from various types of insurances, self in surance options and captive insurance companies. Retirement planning: is critical to understand how much funds you require in your old age. Asset protection: begins with your financial advisor trying to understand your preferred lifestyle and then helping you deal with threats, such as taxes, volatility, inflation, creditors and lawsuits, to maintaining this lifestyle. Tax planning: helps in minimizing tax returns. This might include planning for charity, supporting your favourite causes while also receivin g tax benefits. Estate planning: helps in protecting you and your 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 ru nning your own business. Business succession planning: assists in planning for the inevitable to maximize returns. Wealth transfer: helps you pass on your wealth to your dependents. Jiyo Easy........ 10 T YPES OF INVESTMENT PRODUCTS When formulating your investment strate

9 gy it is important to determine your ri
gy it is important to determine your risk profile and attitude towards risk, the volatility of asset classes and the risk return profile of the products at hand. For maximum benefits from the asset allocation process, you need:  Access to a wide range of produ ct offerings  Support of an in - depth research team  Superior means of executing transactions Engage Domain Experts As an investor, you can engage the services of an investment firm offering transaction services, which encompass wide product range access, res earch and execution services. Depending on the firm and your level of expertise, you can choose to work in two modes:  Outsource: to a firm capable of translating the complex asset allocation  Delegate: as the asset allocator yourself while the firm executes decisions The wide range of products offered by investment firms can be broadly divided in traditional and specialized products Traditional Products Investment products that are commonly known avenues to grow wealth are:  Direct Equity Direct Equity invest ment refers to the buying and holding of shares on a stock ma

10 rket by individual investors in anticip
rket by individual investors in anticipation of dividends and capital gains with changes in the value of the stock. Jiyo Easy........ 11  Mutual Funds Mutual Funds are professionally managed pools of money from investors with similar investment objectives. Each mutual fund represents many individual stocks from a variety of industries and is managed by a fund manager.  Insurance Life Insurance policies are investments that protect you and your family against an un certain future. There are a variety of policies which cover your life and invest your money towards your plans for the decided amount of insurance.  Banking Account and Credit Services Beyond the regular banking services, you can gain access to exclusive ba nking benefits and a wide variety of credit products. Specialized Products New investment products have emerged over time and are available as:  Structured Products Structured investment products are pre - packaged investment strategies based on various underlying assets such as equities, interest rates, currencies, commodities etc. The value of the product can thus d

11 epend on the value of the underlying sto
epend on the value of the underlying stocks or indices. The idea is to generate a particular payoff on the product to suit particular market views and maximize the returns thereof. Some structured products offer a ‗principal protection‘ function if held to maturity. Derivatives - Instruments which derive their value from the value of the underlying such as prices of stocks, basket of stocks, i ndices, currencies etc. They form a part of the above mentioned structured products and help generate specific payoffs. Equities - Discretionary Portfolio Management Service (PMS) and Non - Discretionary Portfolio Management Service (NDPMS) are solutions for investing in equities. With Portfolio Management Service, your customized portfolio is tracked, monitored and optimized by Jiyo Easy........ 12 portfolio managers while Non - Discretionary Portfolio Management Service offers these services in a consultative method.  Private Equi ty Private Equities are equity securities of unlisted companies exempt from the high level of government regulation as public offerings. The other side to this investment is that

12 private is far less liquid than public
private is far less liquid than publicly traded stock.  Real Estate Real Estate Funds are investment vehicles that are used by its subscribers to invest into Real Estate projects and/or Real Estate linked securities (Equity or Debt). Some real estate funds invest in bonds/instruments secured by property instead of actually owni ng property as it involves risk due to volatility in property prices.  Estate Planning Estate Planning includes creating a plan for your estate to enable effecti ve management, preservation and longevity during and after your life time. The primary goal is to ensure it reaches the estate owner's intended beneficiaries, and often includes efficient tax and minimizing succession procedures.  Commodities Commodity trad ing helps you hedge against inflation and buy a piece of global demand growth based on the understanding of the demand cycle. You can take up commodity exposure either directly through the commodity exchange or through various mutual funds with a mandate o f investing in commodities.  Art Art investments are a combination of business and pleasure. Though a fick

13 le market with no guarantee of profitab
le market with no guarantee of profitability, research based decisions can prove art to be worthy investments down the years. Depending on your investm ent requirement, a combination of investment products can be chosen. Jiyo Easy........ 13 Features of Wealth Management:  Allows customer to review risk profiles.  Track holdings against model portfolios for returns.  Captures Customer‘s details and risk profile.  On approval by client they execute financial plans.  Based on the advanced algorithms they provide tax coverage, education and insurance.  Interfaces with banks, portfolios management systems, price vendors and other agencies.  Provides dynamic search.  Document Management.  Dynamic user access control. They handle information for the following segments:  Stocks.  Stock Options.  Bonds.  Funds.  Insurance.  Cash flow s.  Education Planning.  Tax Planning.  Estate Planning.

14 Benefits of Wealth Management a
Benefits of Wealth Management are as follows:  It is possible to revise risk profiles multiple times.  Safe, Reliable and scalable for clients.  Online access to returns.  Consolidated view of cash flows.  Online proposal generation.  Keeping accounts up to date. Jiyo Easy........ 14  Monitoring changes in client‘s portfolio.  Multiple account reservations.  Multiple investment scenario analysis.  Allocation of Assets Process of Wealth Management includes: Step1: Finding Facts Step2: Investment Strategy Step3: Allocation of Assets Step4: Structuring Accounts Step5: Structuring Implementation. Step6: Communication Step7: Annual review & Monitoring. Step8: Refine Strat egy. First step to be considered is to create a profile of customer in which personal details, current financial situation and family circumstances. In personal details they involve income, savings, investments, retirement, tax status, Family. In step2 inv estment objectives and risk tolerance is to be unde

15 rtaken. Then assets are allocated and it
rtaken. Then assets are allocated and it‘s all about getting the balance right. After this wealth management need to consider the account structure that best suits the client. To be highly communicative is quite necessary because it is an important aspect of client - wealth manager relationship. They organize regular face - to - face meetings. Then after monitoring it is essential to refine the strategies . Jiyo Easy........ 15 The Wealth Management Formula Three essential components for success. A growing number of financial advisors have come to an important conclusion: Wealth management is the key to greater success. Even if you're already highly successful as a traditional CPA, you probably realize that the best way to a chieve even greater success is to provide comprehensive wealth management to your clients. Wealth management is, by definition, a holistic approach to und erstanding and providing solutions to all of the major financial challenges of an investor's financial life. From a client's perspe

16 ctive, this means having all financial c
ctive, this means having all financial challenges solved. From your perspective, it means the ability to profitably provide a wide range of products and services in a consultative way. There are three essential components to true wealth management: 1. A consultative process. Your wealth management process must enable you to gain a detailed understanding of clients' goals and their most significant financial wants and needs. This allows you to establish close relationships with clients that help you serve them better and retain them over time. 2. Customized choices and solutions. What you offer clients must be designed to fit the full range of each individual's needs. The select group of services you use might include investment management, insurance, estate planning and retirement planning. 3. Delivery in close consultation with your clients. Whether or not you are a CPA by training, top wealth managers provide their services by working closely with clients on an ongoing basis. The key is that they know how to identify clients‘ specific needs and how those needs change over time. And they don‘t just iden

17 tify needs — they proactively desi
tify needs — they proactively desig n solutions around those needs. If, up until now, you have been focusing solely on investment management, you can see that you need to expand the scope of your offerings if you want to be a wealth manager. Jiyo Easy........ 16 In its simplest terms, wealth management can be s ummed up using a single, all - encompassing formula: Wealth management = investment consulting + advanced planning + relationship management (or WM = IC + AP + RM) Investment consulting is the core offering for many wealth managers and the foundation upon which they begin the client relationship. Advanced planning addresses four key areas of financial needs that affluent investors have beyond investments: wealth enhancement, wealth trans fer, wealth protection and charitable giving. Relationship management focuses on three areas: fully understanding and meeting clients' critical needs over time; assembling and overseeing a network of financial experts to help you meet client needs; working effectively with your affluent clients' other professional advisors, such as their attorneys and accou

18 ntants. Wealth management breaks the f
ntants. Wealth management breaks the familiar mould in which affluent individuals must contract with a range of professionals, each specializing in a sin gle area: the investment advisor managing portfolios, the insurance agent selling life insurance, the accountant handling taxes and the attorney taking care of estate planning. As their finances have grown ever more complex, this compartmentalized approach has become less appealing to wealthy individuals wishing to streamline their affairs. Wealth Management in India: Issues & Concerns INTRODUCTION Management is what a manager does "the statement given by Louis Allen has very broad and meaningful meaning. Though we all know that 'Manage' is nothing but to forecast and plan, to organize, to command, to co - ordinate and to control. The eminent writer and management guru William Spriegal has given very valuable definition that 'Management is that function of an enterprise which concern itself with the direction and control of the various activities to attain business objectives. Management embraces all duties and functions that pertain to the initiation of

19 an enterprise; it's financing the establ
an enterprise; it's financing the establishment of all major policies and the provisions under Jiyo Easy........ 17 which the organization is to be run and the selection of the principal officers'. In the general view the word management is form with Manage + Men + 'T' where ‘T‘ stands for the factor time. The term wealth management also now a day‘s having very importance. So many Banking com panies 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 is Banc assurance. Now a day‘s wealth Managemen t 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 grow up by 21% from a year earlier (Asia pacific wealth report). CONCEPT OF WEALTH MANAGEMENT : The term wealth management formed with two words wealth & Management. The Meaning of Management we have already seen in the steering introduction. The meaning of wealth is

20 – Funds, Assets, investments and ca
– Funds, Assets, investments and cash it means the term wealth management deft with funds Asset, instrument, cash an d any other item of similar nature. While defining wealth Management we 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 in tegrated manner. " MIDDLE EAST & WEALTH MANAGEMENT: In this globalized era Middle East countries have huge wealth management need. There are two types of wealth management institutions. They are: - (1) Private Banks (2) Family Offices, engaged in the b usiness of wealth management in Middle East. For our information the wealth management institute (WMI), the first centre of excellence for the wealth management education in Asia was established in Singapore in the year 2003. The wealth management Institute (WMI) is providing professionals for wealth management with a nice combination of l earning and practical training. T he aim of WMI is to establish Singapore as the Asi

21 an hub for wealth Management. Where
an hub for wealth Management. Where Pvt. Banks and Family Offices are discussing about the strategies to capture the wealth management business in the Middle East. The global institutions are looking towards the Middle East to grow their wealth management business and Jiyo Easy........ 18 attracting the big business houses by their attractive service providing facilities. Tapping in to the Middle East market it is very crucial for private banks and private wealth managers, the entry and increasing market share is not very eas y task for them but they are fighting. The Middle East region has become very highly competitive over the last five years. Local banks now competing with international banks. WEALTH MANAGEMENT RANGE - The range of wealth management can be expressed by th is exhibit chart. STUDENT START OF CAREER CAREER ESTABLISHED RETIREMENT Liquidity Management (Cash Mgt) * Deposit based comfort A/C * Credit cards * Comfort A/c with credit limit * Gold Card * Premium A/c * Platinum Card * Premium A/c * Platinum Card * Overnight money A/c * Money

22 Market & Fixed Income Fund * Near Mone
Market & Fixed Income Fund * Near Money Market Fund * ZINS Plus * Overnight money A/c * Money Market & Fixed Income Fund * Near Money Market Fund * ZINS Plus * Special Investments Wealth Formation (Savings Plans) * Top portfolio * Flagship portfolio * Titan portfolio * Top portfolio * Flagship portfolio * Titan portfolio * Capital formation benefit funds * Top portfolio * Flagship portfolio * Titan portfolio Wealth Optimization (Lump sum Investment) * Absolute Return Portfolio * Holding and Private Equities * Modular Wealth Management * Individual Wealth Management * Premium Portfolio * Titan Portfolio Chart 1 Jiyo Easy........ 19 WEALTH MANAGEMENT: INDIAN CONCERN Sometimes people confuse asset management or financial management with the wealth management. But wealth management has very broad area. Position of India in Wealth Management In the annual survey don e by Cap Gemini, SA and Merrill Lynch it was found that ranks of milli

23 onaires grew 6% in the previous year, be
onaires grew 6% in the previous year, because the number of richer people grew in India & China where India is competing China. India & China posted the biggest gain in millionaires adv ancing by 23% & 20% respectively. When we are watching the world wide increase in number of millionaires the facts collected by Cap Gemini, S.A. and Merrill Lynch survey report. India has 23% growth in the last year. The biggest Asian economy China stands on second position with 20%, west Asia 16%, United States 4% and United Kingdom (UK) 2%. So we can understand that there is more opportunities in the wealth management business in Asia specially in India. ICICI BANK & WEALTH MANAGEMENT In India ICIC I bank and Axis - Bank are very well known banks in the field of wealth management. ICICI Bank will float subsidiary for the purpose of WM activities in Canada & other market even as ICICI has rolled out ICICI Group Global Private Clients for those with net worth of $ 1 million or more. ICICI GCPC launched their business in Dubai very recently in the month of April - 08 and caught 2500 clients. They are going to add another

24 1000 high network clients this year.
1000 high network clients this year. ICICI Bank is using the services of global playe rs like Merrill Lynch, City group, and UBS for catching the clients for Wealth Management business. ICICI Bank and its subsidiaries are engaged in the development of various attractive products (services) for the clients with net worth of $ 1 million. Jiyo Easy........ 20 The eyes of ICICI Group Global Pvt. Clients on the rising number of dollar millionaires at present they are 100,000 in number in few year the number will definitely increase. India's No.2 lender banker ICICI expects to sustain the 70% growth in its private w ealth management business. ICICI 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. AXI S BANK & WEALTH MANAGEMENT One of India's leading private sector bankers Axis bank also combined with Banque Privee Edmond de Rothschild Europe based wealth management expertise institution & is going to make new standard for the NRI's wealth ma

25 nagement. T he LCF Rothschild group ha
nagement. T he LCF Rothschild group has based its reputation in the area of wealth management on its big banking experience. Actually the institution is engaged in the task of providing financial adviser to the Europe's leading families, Government and various corpor ations for the last '7' generations. The Axis Bank 5 th largest bank by market capitalization in India provides payroll services to over 12000 corporate across 2.8 million salary accounts. The market capitalization of Axis Bank was 235 million in the last year 2007 is engaged in the business of wealth management, with its international presence in Dubai, Singapore Hong Kong, Shanghai and so on. ING BANK & WEALTH MANAGEMENT In today‘s economy, the questions about your financial fu ture are becoming more complex. How often do you ask yourself ? ―What can I do today to plan for a comfortable retirement?‖ ―How will we finance our child‘s college expenses?‖ ―How will we finance our child‘s marriage?‖ ―Do I have enough insurance to protect my family?‖ Jiyo Easy........ 21 The answers to these questions are ea

26 sy. Through ING Wealth Management Servic
sy. Through ING Wealth Management Services we offer an extensive range of Wealth Management solutions designed specificall y to meet your financial needs and aspirations, letting you jiyo easy! At ING Vysya Bank, we understand your needs and seek to find solutions for them. The approach to designing your Wealth Management solution is based on understanding your need horiz on and risk preferences which we integrate with the right product ING Fortuna trade Trade seamlessly with ING Fortuna trade, an integrated platform that easily connects your Trading, Demat and Savings account. ING Fortuna Trade gives you seamless integration through a single platform. What's more, you pay for only the services you select, to make it a customized trading solution. Equity markets tend to be volatile in the short term, but have the potential to generate higher returns in the long term. Averaging out the cost of purchase, systematic investments inculcate the healthy habit of regular investing, making your money work harder with the power of compounding. It is never too early to start investing .In fa

27 ct, the earlier you start, and the more
ct, the earlier you start, and the more the magic of compounding will work for you. Small regular investments will am ount to a substantial corpus. ING Creating Star Guarantee d Future ING Creating Star Guaranteed Future is a Non - Linked, Non - participating Life Insurance Product. This product guarantees all the policy benefits, maturity benefit, death benefit and guaranteed surrender benefit. However the benefits are subject to all premiums being paid on time Jiyo Easy........ 22 4 Guarantees  Guaranteed Maturity Benefit  Guaranteed Death Benefit  Guaranteed Policy Continuation  Guaranteed Long Term Protection Other regular benefits  Surrender benefit  Loan benefit  Tax benefit General Insurance Family Floater Health Insur

28 ance Secure your family against financia
ance Secure your family against financial emergencies during sudden illness, surgery and accidents with Family Floater Health Insurance Car Insurance Get triple protection of Own Damage, Personal Accident and Third Part y Liability cover, all in one policy. Investment Products . Mutual Fund As a distributor of Mutual Funds, we are tied up with almost all the Asset Management Companies thereby assisting our clients to invest in mutual fund schemes, which meet with their investment requirements. Life insurance ING is actively engaged in selling ING Life Insurance products. ING Life Insurance provides a range of products including endowment, pension & unit linked plans. Government of India and tax saving bonds Our clients can invest through us in 8% Government of India bonds as well as in tax savings bonds like REC, NHAI and NHB. Jiyo Easy........ 23 Wealth Management Process Our Wealth Managers are based at ING branches all over India. They interact directly with the Bank's customers and advise them on the best ways to invest their money in appropriate investment channels while

29 achieving tax efficiencies and increasin
achieving tax efficiencies and increasing returns . We have an in - house research team, which is poised to provide the latest market developments, mutual funds performance and recommendations. In addition, we constantly evaluate our asset allocation and change asset weightages in line with our market outl ook. What's more, these services are free of consultation charges and there is no minimum portfolio size that we limit our services to. SERVICES PROVIDED BY WEALTH MANAGEMENT INSTITUTIONS (1) Custodian Services (A) Securities Safekeeping (B) Income collection from Securities (C) Settlement of Securities trades as directed (D) Payment of fund when directed (E) Timely settlement delivery (2) Trust Services (A) Chari table Trust (B) Revocable Trust (C) Irrevocable life Insurance Trust (D) Special Nee d Trust (E) Institutional Trust Jiyo Easy........ 24 (3) Retirement Plan Services: (A) IRA's Custodian or Trustee (B) Defined Benefit Plans (C) Defined Contribution Plans ADVANTAGES : The following are the advantages of wealth management concept. 1) Helpful in Ta

30 x Planning : The wealth management pr
x Planning : The wealth management professional always shows the good path to the customers and provide the service of tax planning. How to minimize the tax and save more money? 2) Helpful in Selection of Investment Strategy : Another advantage from the customer point of view is with the help of WM Professional the customer can easily know the investment strategy and analyze risk and return. 3) Helpful in Estate Management : With the help of wealth management professional we can also manage our estate. Estate management is a task to provide objective administration of our funds tailored to aim in responsible distribution and protection of our overall estate. 4) Helpful in forward looking : We can say planning, that recognizes as our estate grows and changes occurs we require some team of professionals who help us in future planning. 5) Helpful for Indian Economy : Banks which are engaged in business of WM earning revenues from the foreign cou ntries i.e. outsourcing for economy LIMITATIONS 1. WM Reduces The S

31 cope Of Management : Though we all know
cope Of Management : Though we all know that management has existence at all levels of life and society but the term wealth management only related with the higher level means rich people, a nd is not having any plans and provisions for poor and lower and middle level of society. Jiyo Easy........ 25 2. Chances of Fraud: Another demerit or limitation of the WM concept is it is not showing the actual position. The customer doesn't know about the things going on with using his wealth and there may be chances of forgery and fraud with customers. 3. Actual Picture VS Inflation : What is the actual position of mar ket we don't know because every thing is done by so me WM professionals? So we can not assume our position i n the market that also results in inflation because economy is unknown about the actual state. There may be chance that the customers are in risk but they are showing the false return and vice - versa. CONCLUSIONS after studying the overall concept of wealth management we can say that it has various aspects some are favourable and friendly for the Indian economy and some are very dangero

32 us for the Indian economy. The cust
us for the Indian economy. The customers have to beware and they have to make SWOT analysis before choosing the wealt h management option. At present Indian Economy is facing a lot of trouble by increasing inflation by 11.05% and hike in fuel prices in the Indian as well as international market. As per India n concept wealth management can not success in India. But if In dian financial institutions are engaged and choosing the WM business in foreign countries, most probably middle - east countries, it may be some relief for the downward moving Indian economy. Latest on Wealth Management in India India on its way to become tr illion - dollar wealth management market by 2012 Look at the predictions from various sectors:  According to a recent report, the wealth management market in India will be having a target size of 42 million households by 2012, as against only about 13 million in 2007.  New Delhi: Indians will be having one trillion dollars worth investable wealth by year 2012, indicating the country's robust economic growth that drives a four - fold surge from just about 250 billion dollars i

33 n 2007.  In a report by internati
n 2007.  In a report by international consultancy firm Celent, the number of potential clients for wealth managers and size of mana geable wealth are both expected to grow four - times Jiyo Easy........ 26 through 2012. India is all set to become a huge hunting ground for wealth managers across the globe.  The report titled 'Overview of the Wealth Management Market in India' noted that the wealth management market will be having a target size of 42 million households by 2012, as against only about 13 million in 2007.  The wealth management sector in India is poised to witness tremendous growth. The country's economic growth is making larger sections of its population prospective customers of wealth management providers.  The growth will be seen across all income - levels. However, the lower - income segment is the one that would record maximum growth in terms of volume, while high - net worth households would be contributing the most in terms of wealth size.  Celent has define

34 d the lowest end of the target market fo
d the lowest end of the target market for wealth ma nagers as a household with a minimum income of $5,000 (Rs2 lakh), while the ones with at least $30 million (Rs120 crore) of investable income has been added in the category of ultra - high net worth.  The wealth management revenues are expected to contribute nearly 32 - 37% of the total revenue of full - service financial institutions by 2012.  The mass - market (having Rs. 2 - 10 lakh of disposable income) would be the key driver, accounting for nearly 40% of the overall growth in number of households.  Except the n iche players, majority of wealth managers would target the mass market owing to its youth - dominance and this market would be seeing more service providers entering the fray with an 'own them young' policy.  The ultra - high net worth households [having wealt h in excess of $30 million] would have a total population of around 10,500 households by 2012, while the super high net worth households ($10 - 30 million) would grow to 42,000.  The count of high net worth households ($1 - 10 million) will grow to 3, 20,000, while there wo

35 uld be 3, 50,000 households in the super
uld be 3, 50,000 households in the super - affluent category (Rs. 50 - 400 lakh).  Also, 10 lakh new households would be joining mass - affluent category (Rs10 - 50 lakh), taking their total population to 18 lakh by 2012. However, a vast majority of 39 million Jiyo Easy........ 27 households, out of the total 42 million target market population in 2012, would belong to the mass market (Rs 2 - 10 lakh).  Private Bank s, full service brokerages & independent financial advisors would serve the high net worth segment, while ultra high net worth households would be served by private banks & family offices. India’s wealth potential As with any almost any element of the fin ancial markets in India, wealth management is at an early stage of development. For example, said James Shapiro , head of market development at the Bombay Stock Exchange, only about 1% of the population owns equities. Yet the creation of wealth is happening rapidly, especially in second - tier cities, he added. To articul

36 ate the opportunity in the Indian wealt
ate the opportunity in the Indian wealth management market, Anshu Kapoor , head of private wealth management at Edelweiss Capital , said the country has more billionaires than Japan. Plus, there are around 1,000 families with US$30 million and above, and 250,000 households with US$1 million or more in investible assets , he added. And this is even without looking at the mass affluent space. Of the total number of high net worth individu als, the proportion of the wealth believed to be in organized wealth management is less than 5%, said Hrishikesh Parandekar , chief executive officer of Karvy Private Wealth. As a result, it is a nascent and fragmented industry. For instance, added Rajesh Saluja , chief executive officer of ASK Wealth Advisers, there are about 25 private banks targeting this segment, accounting for perhaps 15,000 of the high net worth clients combined. This means there is still a huge number of clients yet to experience weal th management in a formal way, Given the market is so fragmented, Kapoor said that even if a firm can penetrate 2%, this could mean about US$5 billion in assets

37 under management.
under management. The next level of opportunity lies with the mass affluent – from around US$50,000 to US$1 million in investible assets – which is a rapidly - growing pool of people. Today this is roughly 1.5 Jiyo Easy........ 28 million households, said Par andekar, adding that this is expected to grow by around 20% per annum. Yet business models are evolving. And following the 2008 financial crisis, he explained that the industry has shifted from being opaque in terms of the pricing and products offered to a new paradigm in terms of more transparency and more of an open - architecture approach. Although it is general difficult, however, to put numbers on the Indian wealth industry, Harsh Vardhan , a partner at Bain & Company, said that if the country continues t o grow at its expected 8% to 9%, then India will likely be the second - largest wealth management market in the world – after China – in terms of incremental amount of wealth created. When breaking down the figures,

38 Kapoor said that since Indians save arou
Kapoor said that since Indians save around US$300 billion annually, based on the fact that the average household saves around 30% of GDP, this means the economy is worth around US$1 trillion. Yet the amount allocated to capital markets is currently meaningless. As a result, that is all available p otentially for the wealth management industry to advise on, explained Hansi Mehrotra head of wealth management within Mercer‘s investment consulting business in Asia Pacific – especially since so much of it gets saved in cash - and insurance - type products. The evolution of the market In the early 1990s, the economic reforms started by the Indian government to attract foreign investment created a lot of opportunities for entrepreneurs . And because of the GDP growth of 7% to 8% in the earlier years, and then a bit higher more recently, a huge amount of wealth has been created for a lot of people. More specifically, after around 1999 / 2000, on th e back of the new service economy and IT boom,

39 a lot more w ealth got created, and the
a lot more w ealth got created, and the nature of wealthy individuals changed. So rather than their only being wealth in the form of old money, a lot of new wealth led to the development of more formal wealth m anagement offerings in India. Jiyo Easy........ 29 W ealth management in India was historically conducted in a relatively disorganized way – with accountants, lawyers and other trusted adviser providing the advice, rather than private bankers. The formal wealth management indus try is therefore only really about 10 to 12 years old. Until 2003, banks only really focused on deposit - taking, but then slowly foreign banks introduced more formal wealth management offerings and began to scale those businesses. The more formal wealth man agement landscape began with banks selling mutual funds and insurance products to their customer. And then as capital markets started to take off in 2004 and 2005, the main thrust behind the industry‘s growth began. Since then, everyone wants to have a pie ce of the Indian wealth market, from foreign banks to Indian non - banking brokerages to tra

40 ditional domestic banks and also indepen
ditional domestic banks and also independent financial advisers. So far, the industry has barely scraped the surface, with a holistic wealth solution not yet availabl e to clients in India. Indian clients and typical portfolios When it comes to typical clients in India, many people assume that if they are successful in their businesses, they will also be successful in managing their wealth Individuals haven‘t yet really got used to advice, although they are familiar with tips from stockbrokers, they are not used to thinking of their overall wealth in a portfolio sense. In turn , clients tend to be very transactional in nature – so in good times there is a tendency to get very concentrated, and then they get fearful in bearish markets Jiyo Easy........ 30 Client behaviour differs from region to region. For example, in north and south India they are m ore conservative and interested in real estate and gold. While in west and east India, clients have more exposure to equities and better understand the financial m

41 arkets. Return expectations mirror the
arkets. Return expectations mirror these trends, he explained. So in east and west India, cli ents want to see returns from their investments which are in line with what they have been getting from their own businesses. By contrast, in north and south India, expectations are linked to trying to beat what they currently get from fixed deposits or go ld. Indian clients tend to do their own asset allocation , mainly in India. So the money they give to their bankers is what they have already ear - marked for equities. For a typical high net worth client in India, that even the most aggressive profiles don‘ t tend to have more than 15% in alternatives – with 65% to 70% in equities, and 20% in fixed income. On the flipside, the most conservative clients will have 15% in equities a nd 85% in fixed income. The opportunity overall, therefore, is to develop product s which make investors think about their capital markets allocation more rationally – not as play money, but rather as a nest - egg where they can rely on the return from the portfolio every year. At the highest end, it is key to get individuals focused on

42 diversification and make them aware
diversification and make them aware of other markets where they can balance their portfolio. Key Trends in the Indian Wealth Management Market ABSTRACT The organized wealth management sector in India is growing, and there is a major opportunity for providers, which has led to the evolution of business models. The organized wealth management sector has seen tremendous growth in the past two years, reaching 60% market share (compared to 40% in 2007). This is due to a three - way push: Jiyo Easy........ 31 increasing presence of organized providers, income and profitability pressures resulting in consolidation, and talent migration. In a new report, Key Trends in the Indian Wealth Management Market , Celent examines emerging product, provider, client, and regulatory trends impa cting the wealth management industry in the country. Graph 1 ―The sheer size of the wealth management market in India and the desire of financial institutions to corner a large market share have resulted in fascinating trends in the sector,‖ says Ravi Nawal , Senior Analyst with Celent‘s Indian Financial Services Gro

43 up and author of the report. ―The sig
up and author of the report. ―The significant growth of the industry is impacting providers, products, and clients and their interactions with each other in a number of ways.‖ This report examines sector - related changes, the size and growth of various client segments, shifts in product preferences, specialization of provider classes and the emergence of new provider classes, and changing customer behavior. Jiyo Easy........ 32 Wealth Management Glo ssary Acquisitions Definition: The act of acquiring or buying a company or real estate by another company or an individual is called acquisition. An acquisition is also known as takeover. Alternative Investment Definiti on: An alternative investment is regarded as an investment product other than traditional investments such as stocks, bonds, money markets, and/or cash. Alternative investments include commodities (such as managed futures), financial derivatives, hedge st rategies (or absolute return strategies), real estate, and private equity, as well as venture capital. Also, wine, art, and antiques are also emergin

44 g as alternative investment asset classe
g as alternative investment asset classes that are rising in popularity. Annual report Document representing an annual report of the activity of a firm or a group of companies, and published after the closing of the fiscal year. Asset Management Definition: Asset Management is the function or process of controlling and managing assets and liabilities to achieve high returns. Asset Management is sometimes referred to as liability management. Jiyo Easy........ 33 Bearing of bonds Financial transaction consisting for an investor in buying bonds to a seller who takes th e irrevocable commitment to buy them back at an agreed date and exchange rate. Blue chip Term indicating securities of first order, the shares of large industrial companies and which are the object of important volumes of exchange. B ond Negotiable evidence of indebtedness, representing a fraction of a bond issue by a company or public body. Bond conversion Replacement of a bond by another, on the initiative of the issuer. The ca

45 rrier then has the possibility to refus
rrier then has the possibility to refuse conv ersion and choose the immediate repayment of his bonds. Bonds Definition: A certificate of debt (usually interest - bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal. Jiyo Easy........ 34 Capital gains Definition: A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purc hase price. Capital gains Tax Definition: A capital gains tax is a tax charged on capital gains (It is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.

46 ). Capital
). Capital Investment Definition: Capital Investment is an act where money is used by a business or an individual to purchase fixed assets such as land, machinery or buildings. Capital investment also refers to the money invested in a business with the understanding that the money will be used to purchase fixed assets, rather than used to cover the day to d ay operating expenses of the business. Capital Market Definition: The capital market is a market for securities where companies and government can raise long - term funds. The capital markets include the stock markets & the bond mar kets. The capital markets consist of the primary markets and the secondary markets. The primary markets are where new stocks and bonds issues are sold to investors. The secondary markets are where existing securities are sold and bought from one investor or speculator to another, usually on an exchange (for example the New York Stock Exchange). Jiyo Easy........ 35 Collective portfolio management Management of a securities portfolio by undertakings for

47 collective investment (mutual fund) whi
collective investment (mutual fund) which collect capital stock and invest them in Stock Exchange. The customer receives shares of mutual fund. Corporate Trust Definition: A corporate trust is a trust created by a corporation. Custody Services Definition: Custody services are a kind of back - office administration for financial services. Deposit Definition: A deposit is the amount of money kept in a bank account by an account holder. Dividend share Share of which whole or part of no minal was refunded to the shareholders, by withdrawal on the reserves, often as an advance on the product of the forthcoming liquidation of the company. Donation Legal transaction by which a giver, while still living, transfers irrevocably, fre ely and without delay, the property of a good to a done who accepts it. In France, a donation is generally certified by an act drawn up by a notary. Jiyo Easy........ 36 EMTN (Euro medium term note) Medium term bond whose issue is uninterrupted, in ac

48 cordance with the principal characteris
cordance with the principal characteristics defined within the framework of a program of issuing: currency, ceiling of the issuing, duration, maturity… Equity warrant Security giving the poss ibility to subscribe a share or a new bond at a certain price during a certain period. Escrow Services Definition: Escrow services act as a third party for buyers and sellers who have reached an agreement on an item or a property for sale. The escrow service keeps the payment on hold in trust until the buyer inspects and accepts the merchandise or property. If the buyer is satisfied, the escrow service releases the payment to the seller. Often escrow services are used during private property transactions to hold solicitors' client's money . Ethical mutual fund Mutual fund whose objective of management is to reconcile prof itability and morals concerns. The principal catego ries of ethical funds relate to :  Funds with human e or ecological vocation, resting on the concept of the sharing of the performance and the expenses in the form of gifts to charitable asso

49 ciations.  Socially correct funds
ciations.  Socially correct funds, not proposing any gift or reduction of expenses, centered towards the investment in shares of listed companies whose policy regarding human relations is seen as "socially correct". To detect the potentialities of the firms and the results of the funds, there exists : Jiyo Easy........ 37 1) Rating agencies for "social" matter (in France the Arese cabinet - A nalyses et Recherché Socials sur les Enterprises) whose rating rests on five criteria : employment and human relations in the firm, the integration of the environment, the clients and suppliers relations, political quality towards the shareholders and rela tions with the civil companies . 2) Security indexes specific to these companies, in particular DSI index - Domini social index made up of 400 firms in the United States. FCP (mutual fund) Joint ownership of securities and sums placed in the short run, without legal status, managed by a company of management acting on behalf of the carriers of shares emitted by the Mutual Fund. Fiduciary Services Definition:

50 A fiduciary service is trusts impose in
A fiduciary service is trusts impose in a person to act on s omeone's behalf. In other words it is an act of holding and managing assets in trust for a beneficiary. Fiscal Definition: It is a term used to refer to any financial matters. Foreign exchange Market Definition: The foreign exchange (FX) market is where currency trading takes place. Foreign exchange transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. Today the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The purpose of FX market is to facilitate trade and investment. Jiyo Easy........ 38 Fund of funds Undertaking for collective investment in securities (mutual fund) whose assets are invested in other mutual funds and not directly in shares or bonds on a market. In France, bonds from a same issuer cannot represent more than 10 % of t he assets

51 for the same category of bonds.
for the same category of bonds. Hedge funds Investment funds whose objective of management is to obtain the best possible output for the funded capital, which implies the taking of important risks. High Net worth Individua ls Definition: A high - Net - Worth Individual (HNWI) is a person with a high net worth (total assets minus total outside liabilities of an individual). In the private banking business, these individuals typically are defined as having investable assets (financial assets not including primary residence) in excess of US$1 million. Holding company Commercial or civil company owning stakes in other companies which it controls and directs without dealing directly with the exploitation. Investment Portfolio Definition: A list of investments or a group of investments made by an individual or a bank or other financial institution is called a portfolio. Jiyo Easy........ 39 Lending Definition: The process of providing credit or granting a loan by one party to another party is called lending whe

52 re by the second party does not reimburs
re by the second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those res ources (or materials of equal value) at a later date. The first party is called a creditor, also known as a lender, while the second party is called a debtor, also known as a borrower. Market Capitalization Definition: M arket Capit alisation is a measurement of corporate or economic size equal to the share price times the number of shares outstanding of a public company. As owning stock represents owning the company, including all its assets, capitalization could represent the public opinion of a company's net worth and is a determining factor in stock valuation. Market capitalization represents the public consensus on the value of a company's equity. MATIF Regulated market of financial instruments in the long term on which are negotiated purchases and sales of contracts or options on financial instruments and goods. Merger Definition: In the business world, it is the act of combining or bringin

53 g together two companies into one large
g together two companies into one larger company. Merger - absorption Operation by which a company transfers the whole of its property to an absorbing company, against the attribution of shares of the latter to the shareholders of the former company, with possibly a balance in cash. Jiyo Easy........ 40 MONEP (Paris Market of Negotiable Options) Regulated market of long term conditional financial instruments on which contracts of options on shares and indices are negotiated. Mutual fund with risks French type of mutual funds, created in 1983 , intended to help the development of powerful but little known Small and medium - sized firms, because of their recent creation, by taking sign ificant stakes in their capital Mutual Funds Definition: A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors or individuals and invests it in stocks, bonds, short - term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basi

54 s. Net income per share
s. Net income per share It is equal to the net income of a company divided by the number of shares which make the capital stock. Nominal amount For a deposit : capital amount deposited in accordance with the subscription of a ser vice For a loan : amount of the granted loan. On - shore Banking Definition: On - shore banking is a term used when the banking services are subject to the laws, tax and foreign exchange rules of the country in which the account is held and also in which the account holder is a resident. Jiyo Easy........ 41 Open architecture Definition: In banking terms especially at SG Private Banking, open architecture refers to the option where a client, at his bank, can have a choice of financial products issued by other institutions. Option on shares Optional contract being the subject of a negotiation on the MON EP and bearing on some shares. Securities known as negotiable supports of options are the only one concerned. There are around fifty of them, selected among the most active securities of the Monthly settlement market

55 (RM) and of the CAC 40 index. There
(RM) and of the CAC 40 index. There are short options, which can be exerted at any time until their expiry and long options, which can be exerted only at the due date. The options are negotiated by batches. Portfolio Definition: A list or a group of financial assets held by an individual or a bank or other financial institution is called a portfolio. Portfolio Management Definition: The act and the process of managing a list of financial assets (portfolio) is called portfolio management. D epending on the service level required by the portfolio owner, this can be managed by a private banker, a wealth manager, a fund manager or by the owner of the portfolio itself. Jiyo Easy........ 42 Portfolio management under mandate Management of a customer's securities portfolio who empowers a specialist in the bank to carry out the purchas es and the sales on his behalf. The mandate clearly defines the degree of risk accepted by the customer as well as the fields of intervention (lon g term market, derivative, etc). Private Banker

56 Definition: A Private Banker is an
Definition: A Private Banker is an individual who is employed in a Private bank. Because Private Banking firms provide private and personalised services to customers, a Private Banker is the point of convergence between the bank and customer. a private banker would de al with a very few clients in order to provide exclusive and high quality wealth management services. Rating Qualitative evaluation reflecting the opinion of a rating agency on the quality of a bond, a company, a State… Registered bond Nature of a bond whose owner is designated by name and registered on the register of the issuer. Share Marketable security issued by a company and representative of a quota of its capital stock. It confers to its owner, the shareholder, the quality of partner. Jiyo Easy........ 43 SICAV (Mutual fund) Company having a legal status and which purpose is the management of a portfolio of bonds for the account of its shareholders. SICOVAM French organization in charge of facilit ating, by operations of transfer from account to

57 account, the circulation of the securit
account, the circulation of the securities between its partners… Split Reduction of the nominal value of all the shares of a company by increasing the number of outstanding shares of stock. Stake Part of the capital of a firm held by an individual or a body corporate, conferring a right to the distribution of the profit and more generally to management. Stock exchange Term used to indicate a regulated market where are swapped the offers of sale and purchase of goods, of securities, of services, of financial instruments… Stock Options Definition: It is the right to buy or sell a stock at a specified price within a stated period. Stock picking St ripping of the right of ownership The stripping of the property right can result from a legal bond (in the event of estate) or from the will of the parties (donation - sharing...) Jiyo Easy........ 44 Structured Product Definition: A structured product is generally a pre - packaged investment strategy which is based on derivatives, such as a single security, a basket of se

58 curities, options, indices, commodities
curities, options, indices, commodities, debt issuances and/or foreign currencies. At SG Private Banking, structured products can be tailor made accor ding to the client‘s needs. Tender offer Operation by which one or more body corporate or natural persons make known publicly their intention to acquire all the shares of a certain company, negotiated on a regulated market. Trust Definition: It is something (such as property) held by one party (the trustee) for the benefit of another (the beneficiary) binding by an official document (the trust deed). Ultra High Net Worth Individuals Defini tion: A high - Net - Worth Individual (HNWI) is a person with a extremely high net worth (total assets minus total outside liabilities of an individual). In the private banking business, these individuals typically are defined as having investable assets (fina ncial assets not including primary residence) in excess of US$50 million. The dividing line depends on how the private bank wants to segment its market. Venture capital Financial st

59 ake taken in an innovating project the c
ake taken in an innovating project the creation of a new company, accompaniment of the expansion of a firm. Jiyo Easy........ 45 Vertical spread In the stock exchange field : Type of spread on the option markets, consisting in simultaneously carrying out the buying and selling of two options of the same class and with the same due date but different strike prices. Volatility Relative amplitude of the variations of a bond exchange rate around its average value. Volatility constitutes an indicator of risk: the higher it is the larger the risk. Wage funds Mutual fund created by a firm to invest the saving of its employees in bonds issued by the firm (shares, certif icates of investment, bonds...) Warrant Financial instrument conferring to its holder the ri ght or the obligation: - to acquire (option to buy or "call warrant") or to yield (option to sell or "put warrant") subjacent assets at a given price, at the due date or during one defined period. - to cash (in the case of an option to buy) or to pay (in the case of an option to sell) an amount

60 corresponding to the difference - whe
corresponding to the difference - when it is positive - between the exchange rate of the subjacent assets at the date of exercise and the price of exercise of the warrant fixed in his contract of issuing. Wealth Management Definition: Wealth Management is a term used in the banking industry to describe a bank which provides banking, financial and wealth management services to private individuals who have a considerable amou nt of wealth. These private individuals are often High Net worth Individuals or Ultra High Net Worth individuals. The other term used to describe Jiyo Easy........ 46 this form of banking is ―Private Banking‖.. Some of the wealth management services include savings, discretion ary portfolio management, and establishment of trusts, fund administration, inheritance as well as tax planning and advisory. Wealth Planner Definition: A wealth planner is someone who is responsible for planning the creation and the maintenan ce of wealth for a client by defining a road map for the future, with taking into account all the fiscal, personal and professional conseque

61 nces of these recommendations.
nces of these recommendations. Yield curve Chart of the whole of the interest rates in force on the market according to th e duration of the investments. The yield curve materializes the gap between the short term rates and the long term rates. Zero coupon security Bond not offering to the bond - holder any payment of interest, but only the payment of a lump sum at maturity. Jiyo Easy........ 47 CHAPTER – 2 ORGANIZATIONAL PROFILE OF THE COMPANY Jiyo Easy........ 48 COMPANY PROFILE THE ING VYSYA BANK Lt d. ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile ,Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of vis ionaries came together to form a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services. ING and ING Vysya Life In

62 surance are headquartered at Bangalore,
surance are headquartered at Bangalore, while the corporate office of ING Investment Managemen t is situated at Mumbai. The synergies arising out of the three distinct but complimentary businesses are bound to be an asset to the group in the changing market dynamics of the future. The first such signs are already visible on the horizon with combined products being successfully launched by the different entities of the group in conjunction with each other It's been a long journey since then and the Bank has grown in size and stature to encompass every area of present - day banking activity and has carve d a distinct identity of being India's Premier Private Sector Bank. In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being the number one private sector bank. In 19 90, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the then Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank stupendous. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005.

63 Jiyo Easy........ 49 The lo
Jiyo Easy........ 49 The long journey of seventy - five years has had several milestones… 1930 Set up in Bangalore 1948 Scheduled Bank 1985 Largest Private Sector Bank 1987 The Vysya Bank Leasing Ltd. Commenced 1988 Pioneered the concept of Co branding of Credit Cards 1990 Promoted Vysya Bank Housing Finance Ltd. 1992 Deposits cross Rs.1000 crores 1993 Number of Branches crossed 300 1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion 1998 Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998) 2000 State - of - the - art Date Centre at ITPL, Bangalore. RBI clears setting up of ING Vysya Life Insurance Company 2001 ING - Vysya commenced life insurance business. 2002 The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM serv

64 ices, Smartserv, personal assistant ser
ices, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi - b@nk net banki ng service. 2002 ING takes over the Management of the Bank from October 7th , 2002 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02 2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans 2004 Introduced Protected Home Loans - a housing loan product 2005 Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking Service 2006 Bank has networked all the branches to facilitate ‗AAA‘ transactions i.e. Anywhere, Anytime & Anyhow Banking Table 1 Jiyo Easy........ 50 THE ORIGIN OF ING GROUP On the other hand, ING group originated in 1990 from the merger between Nationale – Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV. Combining roots and ambitions, the newly formed company called ―Internationale Nederlanden Group‖. Mar

65 ket circles soon abbreviated the name t
ket circles soon abbreviated the name to I - N - G. The company followed suit by changing the statutory name to ―ING Group N.V.‖. PROFILE ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services. We serve more than 85 million private, corporate and institutional customers in E urope, North and Latin America, Asia and Australia. We draw on our experience and expertise, our commitment to excellent service and our global scale to meet the needs of a broad customer base, comprising individuals, families, small businesses, large corp orations , institutions and governments. OUR MISSION ING aims to deliver its financial products and services in the way its customers want them delivered: with exemplary service, convenience and at competitive prices. This is reflected in our mission statement: to set the standard in helping our customers manage their financial future. STRATEGY ING‘s overall mission is to help customers manage their financial future. Capitalising on changing customer preferences and building on our solid business capa bilities, ING‘

66 s strategic focus is on banking, invest
s strategic focus is on banking, investments, and life insurance and retirement services. We want to provide retail customers with the products they need during their lives to grow savings, manage investments and prepare for retirement with confidence. With our wide range of products, innovative distribution models and strong footprints in both mature and developing markets, we have the long - run economic, technological and demographic trends on our side. We align our business strategy around a universal Jiyo Easy........ 51 customer ideal: saving and investing f or the future shoul d be easier. While steering the business through turbulent times, we will execute efforts across all our business lines to strengthen customer confidence and meet their needs, preserve a strong capital position, further mitigate risks and bring our costs i n line with revenue expectations. STAKEHOLDERS ING conducts business on the basis of clearly defined business principles. In all our activities, we carefully weigh the interests of our various stakeholders: customers, employees, communities and shareholders. ING strives to be

67 a good corporate citizen. CORPORATE SO
a good corporate citizen. CORPORATE SOCIAL RESPONSIBILITY ING wants to pursue profit on the basis of sound business ethics and respect for its stakeholders. Corporate responsibility is therefore a fundamental part of ING‘s strategy: ethical, social and environmental Factors play an integral role in our business decisions. Jiyo Easy........ 52 In terms of pure numbers, the performance over the decades can better be appreciated from the following table: In terms of pure numbers, the performance over the decades can better be appreciated from the following table: Rs. in millions Year Net worth Deposits Advances Profits Outlets 1940 0.001 0.400 0.400 0.001 4 1950 1.40 5.30 3.80 0.09 16 1960 1.60 20.10 13.50 0.13 19 1970 3.00 91.50 62.80 0.74 39 1980 11.50 1414.30 813.70 1.13 228 1990 162.10 8509.40 4584.80 50.35 319 2000 5900.00 74240.00 39380.00 443.10 481 2001 6527.00 81411.10 43163.10 371.90 484 2002 6863.24 80680.00 44180.00 687.

68 50 483 2003 7067.90 91870.00
50 483 2003 7067.90 91870.00 56120.00 863.50 456 2004 7473.20 104780.00 69367.30 590.01 523 2005 7094.00 125693.10 90805.90 (381.80) 536 2006 10196.70 133352.50 102315.20 90.6 562 2007 11101.90 154185.70 119761.70 889.0 626 2008 14260.00 204980.00 146500.00 1569.00 677 2009 15940.00 248900.00 167510.00 1888.00 857 2010 2223.00 258650.00 185070.00 2422.00 866 * Table 2 *Outlets comprises of 468 branches, 13 ECs, 28 Satellite Offices and 357 ATMs as of March 31st 2010. Additionally the bank also has Internet Banking, Mobile Banking and Customer Service Line for Phone Banking Service. Jiyo Easy........ 53 BOARDS OF DIRECTERS Name (Sri) Arun Thiagarajan Part - time Chairman Shailendra Bhandari Managing Director & Chief Executive Officer Aditya Krishna Director Philippe Damas Director Richa rd Cox Director Santosh Ramesh Desai Director M Damodaran Director Vaughn Nigel Richtor Director Peter Henri Maria

69 Staal Director Lars Kramer Direc
Staal Director Lars Kramer Direct or Vikram Talwar Director Jiyo Easy........ 54 ING BUSINESS PRINCIPLES As a global provider of financial products and services, ING plays an important role in society. In order to fulfill this role it needs to maintain the confidence of its customers, shareholders, employees, and other stakeholders by acting with professionalism and integrity. ING Group attaches paramount importance to upholding its reputation, and the ING Business Principles play an important role in this respect. ING expects the highest levels of integrity from i ts employees, regardless of their position in the organization. The ING Business Principles were first introduced in 1999. They were updated in 2004. The ING Business Principles are:  We are committed to our integrity  We aim for an above average return  We are open and clear  We promote sustainable development and respect human rights Jiyo Easy........ 55 The customer is the Fig. 2 ―The customer is the v

70 ital axis around which all our activitie
ital axis around which all our activities revolves ‖ Jan Hommen , chairman Jiyo Easy........ 56 SERVICES OFFERED BY ING VYSYA BANK IN INDIA ING Vysya Bank Limited is a premier private sector Indian bank (formerly known as The Vysya Bank Limited) with a heritage of over 75 Years and over 3 million satisfied customers. ING Vysya Bank is a part of the ING Group in India, which is active in life insurance, asset management, and ba nking. ING Vysya intends to bring to its customers in India a range of integrated financial solutions tailored to meet customers‘ needs in :  Life Insurance  Mutual Funds  Home Loan  Financial Services &  Banking Jiyo Easy........ 57 CHAPTER – 3 Data Analysis and Interpretation Jiyo Easy........ 58 RESEARCH METHODOLOGY Research Methodology in simple terms means a systematic and scientific way to solve the research problems. It includes the research design, data collection and sampling plan. The methodology

71 used to solve the above problem is as
used to solve the above problem is as follows: Research Design - It is a framework or blueprint for research plan of action, giving a general statement of the methods to be used. In order to find out the reason behind the problem an exploratory research design is used. I collected the secondary data related to the ING VYSYA BANK and mutual funds. I also took certain interviews of bank officials who are in wealth management department to find out the background of the problem i.e. why people make so less investments through mutual funds. Sampling Plan – A simple random sampling technique was used for data collection as in this technique each member of the population an equal chance of being chosen. In my survey I have tried to cover a large variety of people which in cludes salaried, businessman, student, professional and retired. The sample size of the survey was 100. Data Collection - (i) Primary Data - The source of primary data was through filling up of questionnaires by various customers at bank and during personal visits. The questionnaires had 16 questions and the survey was conducted

72 near major hubs of mutual fund offices i
near major hubs of mutual fund offices in Lucknow. (ii) Secondary Data - Secondary data has been collected through various sources like websites, financial reports, online documents, etc . . Jiyo Easy........ 59 Data Analysis and Interpretation 1) Occupation Occupation Number Salaried 34 Business 34 House Wife 0 Student 12 Professional 18 Retired 2 Total 100 Interpretation It can be interpreted from the data that the major chunk of people in salaried class and business class and the number of professional is few and rest are retired. 34% 34% 12% 18% 2% Occupation Salaried Business House Wife Student Pofessional Retired Jiyo Easy........ 60 2) Annual Income Annual Income Number Below Rs.2, 00,000 14 Rs.2, 00,000 - Rs.4, 00,000 60 4, 00,000 - 6, 00,000 20 Above Rs.6, 00,000 6 Total 100 Interpretation Most number of people fall in the category of 2 lakh - 4 lakh group which means that they belong to a middle class group and the percentage of rest of the cate

73 gories is very few. 20% 60
gories is very few. 20% 60% 14% 6% Annual Income Below 2L 2L-4L 4L-6L Above 6L Jiyo Easy........ 61 3) Qualification Qualification Number Under Graduate 14 Graduate 64 Post Graduate 22 Total 100 Interpretation This shows that the majority of people are graduates and the percentage of people in rest of the 2 category viz. under graduate and post graduate are in minority. 14% 64% 22% Qualification Under Graduate Graduate Post Graduate Jiyo Easy........ 62 4) Gender Gender Number Male 88 Female 12 Total 100 Interpretation The majority of working population is of males. 88% 12% Gender Male Female Jiyo Easy........ 6 3 5) Age Group Age Group Number Between 20 - 30 50 Between 30 - 40 22 Above 40 28 Total 100 Interpretation 50% of respondents are of the age group between 20 - 30 which means that the major population that is working is young. Whereas the number of people of age group between 30 - 40 and above 40 years are nearly

74 equal. 50% 22% 28% Ag
equal. 50% 22% 28% Age Group Between 20-30 Between 30-40 Above 40 Jiyo Easy........ 64 6) Are you aware about wealth management? Awareness about wealth mgt. Number Yes 27 No 33 Little bit 40 Total 100 Interpretation Most of the people is not aware about the wealth management yes 27% no 33% little bit 40% Chart Title Jiyo Easy........ 65 7) Before this survey have you heard of ING Vysya Bank and its wealth management? Heard of ING Vysya Bank Number Yes 52 No 48 Total 100 Interpretation Most of the population has not even heard of ING Vysya bank which can be proved from the above graph. 52% 48% Heard of ING Vysya Bank Yes No Jiyo Easy........ 66 8) What Percentage of Income you Invest? Percentage of Income Invested Number 0 - 15% 68 15 - 30% 32 Total 100 Interpretation It‘s clear from the graph that most of the investors invest very small amount of their income. 68% 32% Percentage of Income Invested 0

75 -15% 15-30% Jiyo Easy........ 67
-15% 15-30% Jiyo Easy........ 67 9) At present what are your Investment Needs? Investment Needs Number Medical Emergencies 13 Retirement 16 Home Purchase 20 Children‘s Education 20 Children‘s Marriage 15 Others 16 Total 100 Interpretation In this we can see that there is a greater ratio of people who are concerned about home purchase and children‘s Education. The thing to be noticed is that people are getting more aware about their health and a big proportion of people are also concerned about Medical Emergencies. The others option may include land purchase or start up a new business or anything else. 13% 16% 20% 20% 15% 16% Investment Needs Medical Emergencies Retirement Home Purchase Children's Education Children's Marrige Others Jiyo Easy........ 68 10) What is the time Period of your Investment? Time Period of Investment Number Short Term 47 Long Term 53 Total 100 Interpretation There are nearly equal percentage of people who inves t for short term and long term.N umber of respondents who invest both for long term

76 and short term. 47%
and short term. 47% 53% Time Period of Investment Short Term Long Term Jiyo Easy........ 69 11) How long have you been investing in Mutual Funds? Duration Number Less than 1 year 16 1 - 2 year 40 2 - 4 year 17 4 - 5 year 13 Above 6 year 14 Total 100 Interpretation Most of the people have been investing in mutual fund since 1 - 2 years less than 1 year 16% 1 - 2 year 40% 2 - 4 year 17% 4 - 5year 13% above 6 year 14% Chart Title Jiyo Easy........ 70 12) Amount of investment in Mutual Funds? Amount of investment Number Below Rs.20000 13 Rs.20000 - Rs.50000 17 Rs.50000 - 100000 45 Above Rs.100000 25 Total 100 Interpretation Most of the people are investing for 50000 - 100000 � 20000 13% 20000 - 50000 17% 50000 - 100000 45% above 100000 25% Chart Title Jiyo Easy........ 71 13) Your type of Investment in Mutual Fund is? Type of Investment in MF Number Single MF 35 More than one MF 65 Total 100

77 Interpretation Most of the people
Interpretation Most of the people are investing in more than one MF single mf 35% more than one 65% Chart Title Jiyo Easy........ 72 14) If it is in more than one what factors influence your decision to invest in either Load/No Load Interpretation Most of the people look for return 0 5 10 15 20 25 30 35 40 return commision presonalize service type of amc issuing mf other Series1 Jiyo Easy........ 73 15) Do u have a life insurance? Life insurance Number Yes 33 No 67 Total 100 Interpretation - most of the people have not any insurance policy yes 33% no 67% Chart Title Jiyo Easy........ 74 If yes then which company Interpretation - M ost of t he people prefer LIC. 0 5 10 15 20 25 30 35 Series1 Jiyo Easy........ 75 16) Would you like to hire ING VYSYA Financial advisor? Like to Hire ING Vysya Financial Advisor Number Yes 26 No 74 Total 100 Interpretation This shows that people are not much

78 aware about ING Vysya bank that‘s the
aware about ING Vysya bank that‘s the reason that they don‘t want to hire ING Vysya financial advisor. 26% 74% Like to hire ING Vysya Financial Advisor Yes No Jiyo Easy........ 76 CHAPTER - 4 LIMITATIONS, FINDINGS, CONCLUSIONS AND SUGGESTIONS Jiyo Easy........ 77 Limitations It is known that all limitations are bound to be present in any study and it is correct in my case also. My study contains various limitations which are as follows: -  The survey has been conducted in a very small region due to various constraints.  The number of respondents is very small so a correct scenario cannot be known.  People are not willing to give their correct financial data because they are afraid of revealing t heir correct incomes.  Many respondents are uninterested while giving the information as they think that they will not gain anything from this and its very risky after a high breakdown in 2003.  The information provided by the people in response to queries put forward was based on to a great extent on approximation.

79 Jiyo Easy........ 78
Jiyo Easy........ 78 FINDINGS  Most of the people are not aware about the wealth management .  Risk profile mainly lies in moderate category .  Branding of ING Vysya is not good in Lucknow .  Very large scope for insurance sector .  Most of the people having no life ins u rance .  Most of the pe o ple look for retu r n .  Mostly people invest in more than one MF for 1 - 2 year .  Male are the dominant in investment.  People invest very few portion of their income. Jiyo Easy........ 79 RECOMMENDATIONS AND SUGGESTIONS  ING Vysya Bank should target salaried and business class to convert them in to their prospective investors.  ING Vysya Bank should launch such product which suits the middle class families as there is presence of a large number of low income group people.  Aggressive advertising is needed for ING Vysya Bank as most of the people of Lucknow are unaware about its presence. Advertising through newspapers, local television channels, banners, canopies are the

80 best methods of advertising locally thes
best methods of advertising locally these methods should be adopted to make people aware about the bank and its products.  As the trend in wealth management is increasing so ING Vysya Bank should also promote its services aggressively. The bank should launch new products & services and advertise then in a manner that the investors are attracted towards those schemes.  As a big chunk of respondents were not satisfied with their current financial advisors so ING Vysya financial advisors should tap those customers. ING Vysya Bank should retain its old customers and try to tap new customers and retain them.  Customers of IN G Vysya Bank should be made aware about wealth management and its benefits so that they ma y start investing . The customers visiting the bank should be made aware about what wealth management is and various pamphlets of various attractive schemes should be given to them so that they may also start investing. Jiyo Easy........ 80 CONCLUSION Running a successful wealth management requires complete understanding of the peculiarities of the Indian Stock Market and als

81 o the psyche of the small investors. Thi
o the psyche of the small investors. This study has made an attempt to understand the knowledge of wealth management among investors and the awareness of ING Vysya Bank. I observed that many of people have fear of wealth management services and products after the breakdown in 2003. They think their money is not se cure. They need the knowledge of wealth management and its related terms. Many people do not invest due to lack of awareness although they have money to invest. As the awareness and income is growing the number investors are also growing. ―Brand‖ plays an important role for the investment. People invest in those Companies where they have faith or which are well known with them so ING Vysya Bank has to make its brand name by aggressively advertising and providing satisfactory services to the customers. Dist ribution channels are also important for the investment. Financial Advisors are the most preferred channel for the investment. They can change investors‘ mind from one investment option to others. New products targeting middle class population should be la unched and advertised locally to attract investors an

82 d increase the awareness level of ING V
d increase the awareness level of ING Vysya Bank and its products and services among the people of Lucknow. Jiyo Easy........ 81 BIBLIOGRAPHY WEBSITES  www. ing vysyabank.com  w http://www.amfiindia.com  www. ing im.co.in  http://www.sebi.gov.in  http://en.wikipedia.org  http://www.investopedia.com  http://www.investorwords.com  http://www.mysmp.com  http://finance.indiamart.com  www.nseindia.com  http://www.moneycontrol.com  http://www.info2india.com REFERENCE BOOK  Annual Reports of ING Vysya Bank NEWSPAPERS  Economic Times of India  The Hin du Jiyo Easy........ 82 ANNEXURE Questionnaire Name: ……………………………………………………………………… 1) Occupation: Salaried Business House Wife Student Professional

83 Retired 2) Annual Income:
Retired 2) Annual Income: Below Rs.2, 00,000 Rs.2, 00,000 - Rs.4, 00,000 4, 00,000 - 6, 00,000 above Rs.6, 00,000 3) Qualification: Under Graduate Graduate Post Graduate 4) Gender: Male Female 5) Age Group: Below 20 Between 20 - 30 Between 30 - 40 Above 40 6) Are you aware about wealth management? Yes No Little bit 7) Before this survey have you heard of ING VYSYA Bank and about its wealth management? Yes No 8) What percentage of income you invest? 0 - 15% 15 - 30% 30 - 50% Jiyo Easy........ 83 9) At present what are your investment needs? Medical Emergencies Retirement Home Purchase Children‘s Education Children‘s Marriage Others 10) What is the time period of your investment? Short Term Long Term 11) How l ong have you been investing in Mutual Funds? Less tha

84 n 1 yr 1yr to 2 yr
n 1 yr 1yr to 2 yr 2 yr to 4yr 4yr to 6yr Above 6 yr 12) Amount of investment in Mutual F unds? Less than Rs20000 20000 - 50000 50000 - 100000 Above 100000 13) Your type of Investment in Mu tual Fund is - ? Single MF More than one MF 14) If it is in more than one what factors influence your decision to invest in either Load/No Load? Return Commission Personalized Service/Advice Type of AMC issuing MF Other___________ Jiyo Easy........ 84 15) Do u have a life insurance? YES……… NO……………. If yes, Which is it? LIC ICICI Prudential Birla sun life SBI life HDFC standard life Bajaj alliance TATA AIG Kotak Mahindra ING Vysya Max New Yark Met life Reliance Sri Ram 16 ) Would you like to hire ING VYSYA F