Sip Project Report Wms

Hedge Equities Pvt Ltd
PROJECT REPORT
Project report submitted in partial fulfillment of the requirements for the post graduate
diploma in management.
ANOJ BABY
Roll no PG 2013-015
Under the Guidance of:
Mr. Vinay Sasidharan
(Assistant Vice President WMS)
Mr. Benil Dani Alexander
Assistant - Vice President
[Hedge School of Applied Economics]
FSG - Prof. Chetan G.K.
KIAMS, Harihar
KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMET STUDIES

PGDM 2013-2015
Kirloskar Institute of Advanced Management Studies
Industrial Study on Hedge Equities WMS & Dynamic

Asset Allocation strategies With Respect to Retail
Investors
Submitted by
Anoj Baby
WMS Intern
ACKNOWLEDGEMENT
It was my privilege to get the SIP in Hedge Equities where I get to learn the key aspects of the
companys Wealth Management Services. I would like to thank all my mentors, without whom
my SIP would not have been a great success.
Mr. Vinay Sasidharan and Mr. Benil Dani Alexander for invaluable assistance, support and
guidance. Their passion and commitment towards work constantly inspired us towards fulfilling
the objectives of the project and to get this project in the current position. We are grateful to them
for dedicating their precious time and extending all help possible from time to time to explain the
nuances of the Wealth Management Industry.
I would like to thank Mr. Suraj R for his support and assistance. With their help we were able to
overcome the challenges and obstacles faced during the course of the project.
I would also like to thank the illustrious management of Hedge Equities for providing us this
exciting opportunity to work on this challenging project.
I would also like to thank my FSG - Prof. Chetan G.K. KIAMS, Harihar for invaluable assistance
in 2 months of my internship
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
..
2. OBJECTIVE OF THE PROJECT
.
3. INTRODUCTION ON WEALTH MANAGEMENT .
4. WHY WEALTH MANAGEMENT IS IMPORTANT
.
5. PROCESS OF WEALTH MANAGEMENT SERVICE ..
6. UNDERSTANDING PROFILE OF CLIENT ...
7. PORTFOLIO ADVISORY SERVICES...
8. OVERVIEW OF TAXATION ON INVESTMENT PRODUCTS..
9. WORLD WMS INDUSTRY OVERVIEW ..
10. NEW RULES AND REGULATORY CHALLENGES
11. INDIAN WMS INDUSTRY OVERVIEW
.
12. INIVIDUAL WEALTH: INDIA VERSUS WORLD
13. FUTURE OF INDIAs INIVIDUAL WEALTH
14. COMPETITOR INFORMATION

15. DYNAMIC ASSET ALLOCATION STRATAGIES WITH RESPECT TO
RETAILINVESTOR
16. FINDINGS OF THE PROJECT
17. CONCLUSION
18. RECOMMENDATION
19. LIMITATION OF THE PROJECT
20. ACRONYMS
21. BLIBIOGRAPHY
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EXECUTIVE SUMMARY
Hedge Equities was established in 2008, under the leadership of Mr. Alex. K. Babu. He
is the Founder, Chairman, and Managing Director of the Hedge Group of Companies. Hedge
Equities is one of the leading financial services company in India. The firm offers wide range of
financial services and wealth management solutions to various individuals, institutions,
corporations. The firm have spanned their presence all over India through meticulous research,
high brand awareness, intellectual management and extensive industry knowledge. The philosophy
of the company was entirely focused on providing long term value addition to clients. The firm
maintains high ethical standards and professionalism in providing sustainable financial services
platform for its customers.
My Project is Industrial Study on Hedge Equities WMS & Dynamic Asset

Allocation strategies With Respect to Retail Investors
Since the financial crisis began in 2008, stock markets have enjoyed a considerable bull run, GDP
growth is again robust in many markets, and assets under management are on the upswing around
the globe. the prospects for wealth management have improved significantly over the last 12
months, but new global regulations (including the battle against undeclared offshore assets),
changing client behavior, the rapid advance of digitization, and a fluid competitive landscape have
permanently altered the rules of the game and raised the cost of doing business. Wealth managers
must learn the new rules quickly and adapt their playbook accordingly if they are to capitalize on
the continued economic recovery in 2014 and 2015
Asset allocation can be an active process to varying degrees or strictly passive in nature. Whether
an investor chooses a precise asset allocation strategy or a combination of different strategies
depends on that investor's goals, age, market expectations and risk tolerance
OBJECTIVE OF THE PROJECT
The main objective of This Project is to understand the role of a wealth manager and how
to manage the wealth in dynamic economic environment
To understand the process of wealth management

To Understand Current performance of Hedge WMS
Determine the Growth prospective of this industry
Comparison World and Indian wealth management services

Determination of risk profile of an investor
Determination of asset allocation strategies

Comparison between competitor
INTRODUCTION ON WEALTH MANAGEMENT

Wealth management as an investment-advisory discipline incorporates financial planning,
investment portfolio management and a number of aggregated financial services. High-net-worth
individuals (HNWIs), small-business owners and families who desire the assistance of a
credentialed financial advisory specialist call upon wealth managers to coordinate retail banking,
estate planning, legal resources, tax professionals and investment management
Many of them had different opinions about the term Wealth Management. Some consider it as
selecting the products while some confuse it with Portfolio Management.
In order to understand the definition of Wealth Management one has to know about the meaning of
wealth. Wealth is nothing but accumulation of resources. As per the definition Wealth
Management defined as service to optimise, protect and manage the financial goals of individual,
household or corporate.
Wealth management is selecting and investing in various asset classes and ensuring that client can
gain better returns for the risk taken by him. Wealth manager mainly focuses on requirements of
client rather than money manager who specialises in specific asset class or asset manager who
specialises in maintaining portfolio. Wealth manager always works on helping the clients to achieve
their financial goals through effective management of their wealth.
In wealth management the process of asset allocation is considered as prime importance. According
to various studies returns are mainly varied due to selection of right assets but not due to timing of
market or skills of wealth manager.
Why is wealth management important?

Wealth creation is a pursuit followed by everyone. However, successful management of wealth is
not everybodys forte. It calls for a lot of planning, discretion and commitment. No matter you
earn money the hard way, win a lottery or inherit some wealth, without a well-planned strategy in
place, wealth can get depleted before you realize it. A better quality of life and financial security
are the major factors driving ones efforts for wealth creation and management. However, in the
endeavor of these, people often overlook that in the absence of proper management of assets, all
wealth is potentially at stake of getting diminished. In order to facilitate the growth of wealth, it is
best to trust private wealth management companies for their expertise. They have a rich experience
of the financial market and can advise best on investment concerns.
Wealth management experts suggest that investment in Private Equity firms is a good option to
grow wealth as it offers attractive Return on Investment (ROI).
PROCESS OF WEALTH MANAGEMENT SERVICE

Firstly, if any client wants to open an account in WMS its mandatory to maintain a Demat account.
To open a Demat account one needs to furnish following documents:
PAN Card
Proof of Address
Bank Proof
Copy of ITR Acknowledgement
In case of salary income Salary slip, copy of Form 16 etc.
Once the Demat account is opened then fund manager can invest on behalf of client basing on
his requirement criteria. Hedge WMS supports only investors who are systematic and logic oriented
in their decisions.
A fund manager will be allocated to each and every client. He helps to choose the schemes that
best suit the requirements of client. Fund manager also can advise client on following options
according to variable market conditions.
Redemptions
Switch of Units
Awareness about new products etc.,
In Hedge WMS, a fund manager will be meeting the client in person at least once in three months.
Every month they update the client about the status of his portfolio either through call or meeting him
in person.
Portfolios are constructed, managed, and rebalanced as needed under the expert supervision of the
Fund Manager backed by a strong research team. Portfolios are regularly monitored and new
information is continuously assimilated into the investment decision making process. This provides
rebalancing the portfolio as and when needed.
Hedge research team provides customized and research oriented investment solutions that aids fund
managers in decision making. Needs identification and portfolios selection based on customer riskreward profile ensures that the investments are made considering customer risk appetite and long term
financial needs.
Investors in Hedge WMS can monitor their investments through a dedicated website. Monthly reports
are emailed to customers detailing account performance. Investors can also get reports of performance
and research notes in their respective portfolios
Some benefits of investing in Private Equity firms:
High ROI- Private Equity investors choose opportunities where they can invest into
something of value at reduced costs, nurture it and wait for it to appreciate so that it can be
sold for a profit. PE investors are prepared to wait for this scenario most of the times. They
are usually willing to invest more money into the company if required, in the hope of
maximizing the ROI.
Great scope- Private equity firms offer a great scope as compared to the public markets.
Be it a small manufacturing company or the largest division of a multi-national giant, any
organization can be a private equity investment opportunity. Private Equity firms also
attract public companies that are looking on to go private.
Transparency and Accountability- Private Equity firm investors can hold the company
accountable for their performance deliverables and target milestones. They can even
bargain a chair on the board and exert a lot more authority than a public company
stakeholder. Moreover, Private Equity firms grant direct access to investors if they want to
get in touch with the top officials of the company; which is in quite contrast to a public
sector company.
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UNDERSTANDING PROFILE OF CLIENT

Knowing the client is an important aspect to provide Wealth Management Service. One
needs to assess following details in constructing the portfolio of an extremely interested customer.
Investor
Attitude
Tax
Constraints
Need of
Investment
Investor
Horizon
Net Worth
Client
Data
Disposable
Income
Investor
Type
Expecting
Rate of
return
Choice of
Securities
Regulatory
Provisions
Investment
Size
Details need to know are:
A. Investor attitude:
Basing on his attitude they can be classified into 3 fields as
Conservative Investors who seek some modest potential increase in the value
of their investments and are willing and able to accept some limited volatility in
the capital investments.
Moderate Investors whose primary investment objective is to seek moderate
returns over investment time horizon. A moderate investor is equally concerned
about the risk return trade off and is willing to accept limited volatility for the
capital invested.
Aggressive Investors whose primary investment objective is to appreciate their
returns on the capital they invested. An aggressive investor is ready to accept
relatively higher degree of risk. High level of risk tolerance makes them to
choose more equity stocks than fixed income and cash.
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B. Type of Investor:
Investor can be an institutional or an individual investor.
C. Need for Investment:

Fund manager need to know the need of client for investing the money. It can be of
various types like for retirement, for children education, for children marriage etc.
D. Expecting Rate of return:

As a part of choosing the securities for his profile we need to know the level of return
he is expecting.
E. Investment Horizon:
It can be either short or long which differs due to change in the need of investment.
F. Investment Size:
Total amount how much client is interested in investing. If he is a regular investor then
we can suggest him to go with SIP mutual funds also.
G. Regulatory Provisions:
Few investors might be interested in investing in foreign securities also. So, we need
to clearly know the regulatory constraints w.r.t. his geography.
H. Choice of securities:
Securities are of various types like
Equity
Mutual Funds
Debt Instruments
Commodities
Currencies
Options
Futures
Fixed Maturity Plans
Non Convertible Debentures etc.
So, basing on his interest and risk profile we can choose the securities among the above.
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I. Disposable Income:
From disposable income we would be able to know what is the amount that the client
can invests in various schemes as savings.
J. Net Worth:
Fund manager can maintain the portfolio in appropriate manner only by knowing the
net salary of individual.
K. Tax Constraints:
Investors might be looking to invest the money for the benefit of tax. So, fund manager
as well as investor should be aware of tax benefit schemes and tax constraints imposed by
government.
Apart from the above mentioned list fund manager should also be aware of
Constraint set of investors
Liquidity Risk:
This risk mainly explains about the marketability of an asset (ease of
asset to be converted into cash (vice versa))
Market Risk
Mandatory cash level for certain asset classes
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Portfolio advisory services of Hedge Equities

Portfolio Advisory Services is a value-added service offered to our esteemed clients who seek to
a high-quality wealth management advisory desk and research team but are comfortable making
their own investment decisions.
As a Portfolio Advisory Services client, you have
A dedicated Wealth Advisory Desk standing ready to answer your queries and unique
needs
Assessment of your risk profile and help with constructing / rebalancing an investment
portfolio that matches your risk appetite.
Access to high quality research and investment strategies
The guidance can be on-going or as needed at client discretion
Under these services, our Wealth Management Service desk can only suggest investment ideas
that match the assessed risk-reward profile agreed for the investor. The choice as well as the
execution of the investment decisions rest solely with the Investor.
Minimum account balance for availing Portfolio Advisory Services is Rs. Twenty Five
Lakhs
Customer needs to sign a Portfolio Advisory Services agreement and get his Risk Profile
assessed
We do not charge any fees to provide this service
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Portfolio Management Services

Portfolio Management Service (PMS) is a product offering that caters to the investment needs and
objectives of a certain investor class.
It is ideally suited for investors who,
Lack sufficient time to adequately monitor and manage a portfolio

Lack sufficient interest and knowledge of financial marketplace to obtain the desired
results
Desire Customized and Research oriented investment solutions
Desire investment decisions that minimize emotion and manage risk
Desire returns that are in sync with their risk profile (ability to take risk)
Our portfolios are designed and offered solely based on identifying the risk profile of the customer
and investment in these portfolios are tailored to the risk-reward profile that is established for the
same. The portfolios invests in equities, debt instruments, gold ETFs, and other structured
products and is managed by competent portfolio managers. The securities are held in an investors
own depository account and as such can be monitored and viewed by the investor. Regular
performance reports and research notes are also provided to the investors in the respective
portfolios.
Benefits of PMS
Competent Management
Portfolios are constructed, managed, and rebalanced as needed under the expert
supervision of the Portfolio Manager backed by a strong research team.
Ongoing Monitoring
Portfolios are monitored daily and new information is continuously assimilated into the
investment decision making process. This facilitates rebalancing the portfolio as and
when needed.
Best of Breed Research
Our research team provides customized and research oriented investment solutions that
aids portfolio managers in decision making.
Tailored to meet your profile
Needs identification and portfolios selection based on your risk-reward profile ensures
that the investments are made considering your risk appetite and long term financial
needs.
Transparency
Investors in PMS can monitor their investments through a dedicated website. Monthly
reports are emailed to customers detailing account performance
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Conservative Portfolio
Investment Philosophy
Hedge Conservative Portfolio is designed for investors who seek some modest potential increase
in the value of their investments and are willing and able to accept some limited volatility in the
capital investments. As such this portfolio is designed as a long term defensive portfolio designed
to provide a real return after inflation and taxes in line with an investors conservative risk profile,
while providing the most protective cover possible. The portfolio implements detailed fundamental
analysis and long term technical indicators to ensure that investors funds are invested in reliable
and competent manner in securities which have a history of providing stable and secure returns.
In keeping with this philosophy, we have designed this portfolio on some basic principles which
are summarized below,
Stock Selection is made through detailed fundamental analysis of the securities.

Investments are made in equities, debt instruments, gold ETFs, and other instruments.
Opportunity cost on idle cash is managed through efficient management and exposure on
mutual funds and other debt instruments.
Investments are made with a view to buy and hold, but to take advantage of short term
gains a moderate churn ratio will be maintained.
Investment Process
Evaluation and analysis of,
Company Financials
Valuation
Financial Ratios
Cash Flow Generation
Net Profit Margins
Debt to Equity Ratio
Sector analysis and future prospects using both fundamentals and technical indicators.
Portfolio Construction
This portfolio assigns a slightly higher weightage to equity instruments but still maintains
a conservative bias.
Investments are spread across Equities, Debt, Gold ETFs, and other Liquid Investments
with the purpose of generating a real return after inflation & taxes.
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Who can invest
Resident Indians
Non Resident Indians
Corporate Institutions
Minimum Investment: Rs Twenty Five Lakhs.

Mode of Corpus: Introduced by way of Cash only
Our PMS Service offers various features such as:
24 x 7 Online Access
Performance Reports accessible via our secure website
Transaction & Holding Statements
Trial Balance & Other Financial Reports
Moderate Portfolio
Hedge Moderate Portfolio is intended for the investors whose primary investment objective is to
seek moderate returns over investment time horizon. A moderate investor is equally concerned
about the risk return trade off and is willing to accept limited volatility for the capital invested.
This Portfolio is called moderate as it is designed to adapt to various situations, perfectly molding
itself into the best shape for the current market situation. As with our other portfolios, this one too
has its set of principles which are used in its design and construction:
Stock selection based on extensive fundamental and technical analysis.

Both sectorial and individual stock performance is taken into consideration.
Portfolio would generally consist of equities and debt instruments with some exposure to
gold ETFs; however derivatives would be used to hedge the portfolio against losses.
Opportunity cost on idle cash would be minimized through efficient management and
exposure to mutual funds and other debt instruments.
To take advantage of short term gains in the market, a moderate churn ratio would be
maintained.
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Investment Process
In-depth evaluation of fundamental factors and detailed technical indicators are used to pick
diversified and versatile stocks.
A detailed historical analysis is undertaken to ensure the pedigree of the company and to
model future growth prospects for the company.
A comprehensive financial analysis is undertaken which includes analysis of:
Company Financials
Valuation
Financial Ratios
Net Profit Margins
Sector analysis and future prospects using both fundamentals and technical indicators
This portfolio may hold 40% 60% directly in equities with the rest held in debt
instruments, gold, or other liquid investments.
The portfolios top 10 holdings may carry 50% of the total investment weight-age
The Portfolios will be rebalanced continuously on the basis of market situation
Aggressive Portfolio
The primary objective of this portfolio is to seek considerable accumulation of wealth over the
investment time horizon. The investors who are willing to accept fair amount of volatility in the
capital and fully understand the emotional and monetary impacts these could have on the value of
the
investment
are
the
right
prospect
for
Hedge
Aggressive
Portfolio.
Hedge Aggressive Portfolio endeavors to deliver superior performance of investment over a long
period through extensive technical research and fundamental backing. The portfolio constitutes
equities, which have a historical track record of outperformance compared to other investment
avenues like bank deposits, bonds, real estate, gold, commodities, etc. We believe that investing
in a properly managed business through equity shares can deliver returns of around 20-30% per
annum in the long term, compared to returns of between 10% 18% for other modes of investment.
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In keeping with this philosophy, we have designed this portfolio, on some basic principles which
are summarized below.
To invest in stocks which have fundamentally sound business and a good technical track
record
Investing in companies which have excellent growth prospects and are consequently
cheaper in terms of valuation.
Ensuring maximum returns while at the same time minimizing risk; portfolios generally
consist of equity protected and hedged using derivatives.
Minimizing opportunity cost incurred by idle cash through efficient cash management.
Investment Strategy
The portfolio weightage will constitute 60-70% in equities which are diverse in nature. The stocks
are invested in different weightages and allotted on the basis of market movement and potential
future movements. For example, equities which have high beta will be included when retracement
of the index is imminent and vice versa. We realize that some short term gains may be lost if the
portfolio is held with a long term objective only and thus a moderate churn ratio of investment is
implemented to capture short term gains. In order to maintain such a churn ratio a percentage
amount of cash is kept. This cash and derivatives also serve the purpose of tactically hedging the
portfolio against any losses.
Investment Process
Our investment process follows our investment philosophy closely; we first evaluate the
fundamental factors of the particular stock, then identify the technical trend exhibited and finally
we make sure that the company has a diversified product mix which make it a stable and long term
growth prospect. We also initiate an in-depth analysis which include,
Company Financials
Valuation
Financial Ratios
Net Profit Margins
Sector analysis and future prospects using both fundamentals and technical indicators
We believe that a portfolio of 10-15 stock with 60%-70% weight age in equity will
adequately create a perfect diversification.
The portfolios top 10 holdings carries 50% of the total investment weight-age,
Any shifts in investment and weights are done based on market movements and any
opportunity cost on non-deployed cash will be nullified through mutual fund and debt fund
exposure.
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Mutual Fund Advisory Services

Hedge Wealth Management Services can help you choose the mutual fund schemes that best suit
your requirements. We can also advise you on redemptions, switch of units, etc according to
variable market conditions, etc.
Purchase and redemption of mutual funds are now made easier through our online mutual fund
purchase terminals and the mutual fund units can be held in your demat account. This allows for a
faster purchase & settlement process and facilitates online viewing of your mutual fund holdings.
Investors can choose to invest either a lump-sum investment or through a Systematic Investment
Plan (SIP) in Mutual Funds. Our exclusive research team will help you to make the right choice.
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OVERVIEW OF TAXATION ON INVESTMENT PRODUCTS

Key tax planning strategies used by Hedge Equities are:
Capital Gains reduction/ deferment strategies
Tax efficient investment strategies
o Selections of right funds in case of mutual funds
o Products which offer indexation benefits
Strategies to reduce liability across heads of income
Strategies to set off/ carry forward losses
The income gained through these asset classes are called as capital gains and are taxed
differently. Investor needs to be aware of tax implications on these assets to ensure better returns
from their investment. The key tax rates as per the latest financial year were mentioned below.
These capital gains are mainly classified as
I.
Long-Term Capital Gains:
Capital gain is considered to be long term when an investor holds certain
asset class for definite period. Minimum years of investment vary from 1 year to 3
years across different asset classes. Applicable tax rate for various asset classes is
as shown below.
Type of Investment
Min. years of investment
Taxation
Equity
1 year
NIL
Debt Instruments
1 year
(Whichever is beneficial among

these)
10% without Indexation
20% with indexation benefit
Gold
3 years (physical gold, e- 20% with indexation benefit

gold)
(Whichever is beneficial among
1 year (Gold ETF, Gold these)
MF)
10% without Indexation
Real Estate
3 years
Bonds/NCDs
1 year
10% without indexation
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II.
Short-Term Capital Gains:

Capital gain is considered as short term when an investor holds asset class
for very short period. These taxed as short term capital gains. Only the asset class
equity charges 15% tax rate whereas others are included in investor income and
taxed according to tax slab rate. Following table shows various asset classes in
detail.
Type of Investment
Min. years of investment
Taxation
Equity
Less than 1 year
15%
Debt Instruments
Less than 1 year
Added to Income
Gold
Below 3 years (physical Added to Income

gold, e-gold)
Below 1 year (Gold ETF,

Added to Income
Gold MF)
Real Estate
Below 3 years
Added to Income
Bonds/NCDs
Less than 1 year
Added to Income
Indexation Benefit:
In order to reduce the effect of inflation indexation benefit is provided on long term capital
gain. Returns on investment are adjusted to the inflation using cost of inflation.
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World WMS Industry Overview

Since the financial crisis began in 2008, stock markets have enjoyed a considerable bull run, GDP
growth is again robust in many markets, and assets under management are on the upswing around the
globe. But these gains have not translated into the amount of top- and bottom line growth that wealth
managers would expect based on past recoveries the prospects for wealth management have improved
significantly over the last 12 months, but new global regulations (including the battle against undeclared
offshore assets), changing client behavior, the rapid advance of digitization, and a fluid competitive
landscape have permanently altered the rules of the game and raised the cost of doing business. Wealth
managers must learn the new rules quickly and adapt their playbook accordingly if they are to capitalize
on the continued economic recovery in 2014 and 2015Wealth management is back and firms are winning
clients and assets at an accelerating rate. Wealth management is arguably now one of the fastest growing
segments of the financial services industry with global wealth expected to grow 61% to USD 313 trillion
by 2015.1 A recent study conducted by the Deloitte Center for Financial Services found that the total
wealth of millionaire households may grow from $92 trillion in 2010 to $202 trillion in 2020 (based on
a review of 25 economies).
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An industry still in transition

After surviving a tumultuous period of plummeting asset prices, spiraling revenue, and the near
collapse of some of the worlds leading wealth management firms during the 2008 financial crisis,
the global wealth management industry is winning back some lost ground. But it is still struggling
on several fronts. According to a global wealth management study conducted by Strategy&,
consisting of quantitative market analysis and complemented by in depth interviews with more
than 150 wealth management executives, senior financial advisors, and regulators, assets under
management (AUM) are growing worldwide. In North America, after four years of steady growth,
these assets have recently passed their pre-crisis levels. In China, Latin America, and other
emerging markets, they have grown far beyond their mid-2000s levels. Only Europe is lagging
and, even there, assets under management have increased significantly since the nadir of
2008 .Nonetheless, market participants report that earnings are still under pressure and they dont
expect the industry to return to a pre-crisis way of doing business. The rules for wealth
management have changed structurally driven by increasing global regulations, the move from
undeclared to declared offshore assets, changing client behavior, the advance of digitization, and
a fluid competitive landscape
Wealth management: What it is, how its changing, what is required
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AUM make steady gains

Many of the worlds wealth managers enjoyed solid AuM growth in 2012 for a number of reasons:
strong GDP performance in emerging economies, rebounding equity markets worldwide, net investor
inflows, and the fact that the number of high-net-worth individuals those with more than US$1
million of investable assets continued to grow two to three times faster than GDP in most markets.
However, performance by region varied significantly. In 2012, the Middle East was once again the
standout region for wealth creation, posting its third consecutive year of impressive gains 19 percent
in 2012 after growth of 15 percent in both 2010 and 2011.The large Middle East wealth management
centers (such as Dubai)experienced particularly robust AuM growth, fueled by inflows from Syria and
politically unstable countries in North Africa, as well as the increasing number of HNWI households in
more stable countries in the Middle East and North Africa (MENA) region. The year 2012 also saw
AuM growth accelerate in other regions. Asias growth rate jumped to 20 percent, up from 2 percent in
2011, thanks to strong economic growth and increasing wealth concentration. This made Asia the
hottest region for wealth managers. Meanwhile, North America and Latin America both posted
healthy 12 percent AuM gains, up from 1 percent and 5 percent, respectively. In North America, AuM
have now passed their precrisis level. Latin America was the only region to notch positive AuM growth
every year from 2007 to 2012. The regions largest market, Brazil, enjoyed political and macroeconomic
stability as well as relatively high interest rates, encouraging investors to keep more assets onshore. At
the same time, a flurry of initial public offerings by family-owned businesses, higher private-equity
activity, and the economic rise of various industries (such as agribusiness) contributed to wealth
creation. The one exception to full AuM recovery is Europe, which despite 7 percent growth in 2012
has not returned to its precrisis levels. A number of factors weighed on Europes performance. Besides
weak GDP growth, which was the primary culprit, other factors included the euro debt crisis, the
transition from undeclared to declared money (which significantly reduced assets held offshore), and
the growing confidence of wealthy citizens of emerging economies to manage their assets themselves.
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Growth of assets under management worldwide, 200712, by region
New rules and regulatory challenges

The financial industry faces an unprecedented degree of regulation, covering a wide range of issues:
capital, liquidity, proprietary trading, derivatives, corporate governance, and the transparency of
offshore assets and income. These costly, complex rules have become a major if not the most
important factor affecting the strategy of wealth managers. This is true globally, although European
firms have arguably experienced the most pain; regulations on the continent have driven overall cost
increases by 5 to 10 percent since the financial crisis. If there is any good news on the regulatory front,
its that new global rules are finally taking clear shape, ending years of uncertainty about how to
prepare. Also, in an ironic twist, these regulations will likely raise the industrys barriers to entry,
which may ultimately help wealth managers preserve their margins. We see the major regulatory
challenges for wealth managers falling into two main categories: taxation and transparency, and client
protection and suitability.
Client behavior
Besides the myriad regulatory issues reshaping the global wealth management landscape, the industry
must also placate clients whose daily experiences on sites such as Google and Amazon, and on devices
such as smartphones and tablets, are influencing their expectations for wealth management. Clients
want plentiful, transparent information at their fingertips, as well as the freedom to conduct research
and make decisions wherever and whenever its convenient. That might be at home on the couch after
the kids are put to bed, or on the train commuting to and from work. As more and more high-net-worth
individuals are motivated to use technology and emerging channels to manage their wealth, the
industry is moving toward a 24/7 multichannel, digital environment dictated by clients especially for
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standard products and services. About half of wealth managers surveyed expect the number of selfdirected investors to increase, while only 6 percent expect it to decline.
Client protection and suitability

Besides creating taxation and transparency issues, new regulations are also changing traditional
distribution, compensation, and pricing models in the wealth management industry, altering wellestablished ways of doing business. In the past, product manufacturers paid banks handsome
distribution remunerations (retrocessions). But recent legislative initiatives aimed at eliminating
conflicts of interest such as MiFID II and the Retail Distribution Review spell the end for these
business practices. The U.K. has banned retrocessions since the beginning of 2013, and stricter
regulations are expected soon in the European Union (E.U.) and Switzerland. Most of those surveyed
expect that these bans will lower product costs for clients and profits for banks as has already
proven the case in the United Kingdom. Interviewees also expect that integrated players with their
own asset management capabilities will prove more profitable than pure distribution banks going
forward. On the issue of suitability the matching of riskiness to client risk tolerance in financial
guidance regulators have pushed national and international client protection initiatives such as
packaged retail investment products to improve client information, eliminate conflicts of interest, and
document client meetings. The current draft of MiFID II also contains suitability rules. For example,
a client relationship manager (CRM) must be certain that a client is sophisticated enough to
Understand the financial markets and a particular investments associated risks. If the client lacks
sufficient understanding, the CRM is at risk of being sued for mis-selling. Suitability rules like this
increase sales and marketing risks for wealth managers, along with their cost burdens.
27
Client behavior
Not surprisingly, younger HNWIs embrace the new technologies with gusto, and their digital approach
to wealth management has become much more sophisticated. Generation Y investors (those born since
the early 1980s, currently in their 20s and 30s), are not simply making trades online. They are joining
peer-to-peer networks and other virtual communities to benchmark their own results and make
investment
28
Decisions. Some platforms leverage social media by allowing participants to follow successful
portfolio managers and replicate their portfolios and trades. Clients still desire personal consultations
for more complex wealth management decisions, but they also expect these interactions to occur
whenever and wherever they want.
Enter new digital players

Three types of digital providers are targeting the wealth management
market: investment advisors that provide real-time customized advice including goal setting,
allocation, monitoring, and rebalancing; portfolio review providers that offer financial management
portals to track portfolio and advisor performance; and investment communities that offer a platform
to share and discuss investment ideas. But their long-term viability is uncertain. So far these digital
innovators have mainly managed to destroy the value pools of incumbent players by offering digital
services for free or at a much lower price point, rather than taking market share. Nevertheless, they
are forcing incumbents to make significant technology investments to keep pace. Over time, a more
serious threat to todays wealth management firms will be established online brokers that decide to
complement their transactional expertise with wealth management services. For example, Charles
Schwab has made several acquisitions to expand its fee advisory offerings and is rolling out 80
branches in 2014. It has already enjoyed some success: Revenue from advisory services saw
compound annual growth of 30 percent from 2009 to 2012
Four response priorities

We believe wealth managers can keep pace with the industrys changing dynamics and capitalize on
the recovery in 2014 and 2015 by concentrating on four priorities: focus on markets that offer superior
growth by applying a capabilities lens, rethink the value proposition; go digital; and adopt a Fit for
Growth approach.
1. Apply a capabilities lens

First, wealth managers need to define clearly which markets they intend to play in onshore and/or
offshore. As noted earlier, wealth managers are understandably drawn to markets that promise superior
underlying growth, but the expense and patience required to compete in some of these markets make
profits elusive. Going forward, wealth managers need to apply a capabilities lens to identify the
markets where they can most effectively compete and maintain long-term differentiation. Even
The biggest wealth managers can no longer be all things to all people. This inevitably requires some
difficult trade-offs in terms of markets to play in, client segments to target, and business models to
adopt. Managers need the discipline and rigor to stick to whatever capabilities strategy they choose
and execute diligently over time.
29
2 Rethink the value proposition

New regulations on suitability and compensation, as well as the demands of clients for tailored
solutions and digital access to financial information, are forcing banks to rethink how they bundle
products and services in tiered service offerings that appeal to different client segments and enable the
wealth manager to control the cost-to-serve
Appropriately for the different segments. These packages should include digital client communication
elements including post-advisory services such as notifying clients when a product drops off the
banks recommendation lists. The industry also needs new pricing models. Clients want to know
exactly what they are paying for, and regulators want clients to have the ability to compare prices
across the industry. Transparency is the name of the game. This will fundamentally change how wealth
management services get priced. Two-thirds of banks believe that pricing will shift from fee- and
transaction-based models toward pay for advice or flat-fee arrangements. In fact, some banks have
already introduced such pricing models, particularly in the U.K., where new client protection and
suitability laws are already in effect. Though the U.K. experience suggests that pay-for-advice pricing
will become more widespread, many wealth managers still doubt the HNWIs willingness to pay for
advice. Self-directed clients in particular are highly price sensitive and shop for the lowest rates and
commissions. But even less self-directed, less price-sensitive investors increasingly demand
transparent pricing schemes, such as flat fees for basic packages, all-in fees for advanced packages,
and volume/transaction fees clearly linked to established thresholds. With retrocession payments
phasing out, banks may need to reduce their product partnerships for economic reasons and build or
buy their own menu of offerings to maintain an adequate diversity of investment options. On the flip
side, if product providers choose to vertically integrate by building or buying in-house retail
distribution capabilities, they could compete effectively against wealth managers, given their pricing
advantage. In a world of increased transparency around advice and investment performance, wealth
managers must perform more rigorous risk profiling of clients and take a more controlled and
centralized approach to investment management for both tactical and strategic asset allocations. This
could represent a major culture change for many wealth managers, but those that are making the
change are already reaping the benefits.
3 Go digital
The perceived imperative to digitize the business model varies by region to a surprising degree. In the
U.S., digitization is a top priority. Wire houses see digitization as a way to profile and segment clients
for target product and service offerings. Discount brokers see digitization as a way to provide high
touch, low cost services. Wealth managers use digitization to track client interactions for compliance
and audit purposes. And, overall, managers in the U.S. tend to be on the
Lookout for novel digital offerings they might mimic, acquire, or gain
Through partnership. In other parts of the world, digitization is a greater priority for large players than
small players. Some even argue that being non-digital is a differentiator and part of their value
proposition. Overall, Latin American wealth managers gave the lowest priority to digitization 60
percent said its not relevant, and 20 percent more described digitization as a low priority. This despite
30
the fact that digitization is critical to fulfilling wealth managers stated priorities for 201415: to better
understand client needs, generate client-centric holistic advice, and deliver a superior client
experience. Demographics may influence digitizations low priority among wealth managers in
general. New technologies appeal strongly to clients in their 20s, 30s, and 40s, but some HNWI clients
are 65 years of age or older and may still prefer low-tech, high-touch interactions with an advisor.
There are five pillars to a digital agenda: Build a 360-degree view of clients assets and behavioral
profiles to provide high-quality, competitive, and personalized advice. Provide high-speed, always-on
access to portfolio, research, and advice through mobile technologies, such as advisorclient chat,
videoconferencing, and interactive applications (financial planning and portfolio simulations, for
example). Enhance the quality and personalization of advice using big data analytics to identify the
most relevant opportunities for each client. Streamline and automate back-office operations to
eliminate time consuming manual activities. Establish a social media presence to evaluate client
sentiment (through mining text on blogs and forums), to communicate with existing clients (for
example, by enabling advisors to connect with LinkedIn groups and Twitter followers), and to
strengthen the financial advisors community (using internal blogs and enterprise social networks, for
instance).
31
4 Adopt a Fit for Growth approach

Wealth managers have worked hard over the past two years to lower their cost bases, but the effort
has not been enough to overcome the escalating cost of doing business. In response, wealth managers
need a strategic, ongoing approach to fixing their cost base and positioning themselves for growth.
Taking a Fit for Growth approach starts by articulating a clear and compelling cost agenda from the
front line to the back office; continues with building lean and resilient processes, systems, operations,
and organization structures; and culminates in the institutionalization of capabilities that keep
resources flowing to good costs and away from bad costs. Growth markets need an approach to
cost management very different from one appropriate for mature
Markets. For wealth managers, the process of cutting costs while growing stronger manifests itself in
several identifiable moves: Exit markets of nonstrategic importance where the company does not have
the capabilities to win, and make sure no stranded costs remain; set client profitability standards and,
when these standards are not met, fix, sell, or close the book; introduce tiered service offerings to align
cost-to serve
with client value; avoid duplicating activities across the organization (e.g., multiple house views),
which drives up costs, confuses clients, and creates compliance risks; build or buy only when
differentiation is possible otherwise partner with low-cost specialists across the value chain; and
avoid damaging fat-tail events by adopting
Careful policies for managing reputational and operational risks and a zero tolerance for transgressions
An attractive industry
Despite the trials of the last few years and the challenges that lie ahead, wealth management is an
attractive growth industry for the long term with return on equity superior to that of any other financialservices segment. As noted earlier, the number of HNWIs is growing two to three times faster than
GDP growth in many regions of the world; that, plus the continued strong economic activity in the
worlds most robust
Emerging markets, bodes well for the industry. Yet this positive outlook does not make the industrys
transition any easier to manage today. Given the regulatory load, changing client behavior, and new
competitors enabled by digitization, the costs of doing business have never been higher and earnings
are under intense pressure. However, we believe that by focusing on the priorities set forth in this
paper apply a capabilities lens, rethink the value proposition, go digital, and apply a Fit for Growth
approach wealth managers can navigate the industrys transformation and capitalize on the
continuing global recovery in 2014 and 2015
32
LEVERAGING
MANAGEMENT
PRIVATE
WEALTH
Liberalization of economy has led to mushrooming of private banking systems in India. Private
wealth management companies are helping people manage their wealth. Investors are getting
attracted to private equity firms, which are now a lucrative option for a good ROI.
Leveraging private wealth management

Private banking has been a part of the Indian economy ever since banking system started in India.
After the liberalization of the Indian Banking Industry by the Reserve Bank of India, private
banking systems in India gained a lot of momentum. Senior private bankers began setting up
private wealth management firms to provide wealth management services. People began seeking
their services to plan their wealth management strategy.
33
Pivot, tweak or pounce: Strategic challenges in wealth management

The private banking sector used to have a reputation as being rather cozy as well as lucrative. No
longer. Multiple developments in the last few years have driven major change. Clients and
providers alike now have dramatically different constraints and expectations. The opportunity
remains to develop sound, profitable business. But clear strategic decisions are needed.
Private banking and wealth management have always been attractive business sectors. Wealthy
individuals not only have more money, but they also require specialist investment management
support, income protection and tax advice for which they are willing to pay a significant price. The
numbers of such individuals are growing, despite the financial crisis, both in developed markets
and particularly in high-growth emerging markets, such as Asia and Latin America. From the
banks perspective, wealth management carries low credit risk and, as a result, requires lower
regulatory capital. A high proportion of revenue comes from recurring fees. With low overheads
and limited need for an extensive branch network, this adds up to traditionally profitable business.
Change and challenges

But the wealth management business is changing and will change further in the wake of the crisis
and as regulatory changes begin to bite. One significant challenge is that margins are coming under
increasing pressure. While assets under management have recovered since the financial crisis in
2008, increases in adviser remuneration and other expenses have resulted in a higher cost-to
income ratio. This trend is being exacerbated by current market conditions, as investors prefer
capital preservation products, which generate low fees for the wealth managers.
Investors are also becoming much more demanding of their relationships with wealth managers.
In a world where returns are low, assets have suffered losses and trust has been damaged, clients
are far less willing to take the performance of wealth managers for granted. They want more
vigorous action to generate returns; they want strong frameworks for risk management and wealth
protection; and they want transparency and justification over fees and charges. They are
increasingly wary of bespoke products and in-house funds; they are looking for portability and
low-cost asset classes such as exchange-traded funds. The internet offers them the ability to
compare the performance and costs of service providers in an instant.
On the policy and regulatory front, profound changes in attitudes to financial services are still
working their way through. The industry is under greater scrutiny and greater pressure to reform
itself than ever before. Traditional banking privacy is rapidly being destroyed as banking secrecy
in offshore centers and in traditional private banking locations such as Luxembourg and
Switzerland is being blown away by a combination of regulatory and fiscal authorities. The
Foreign Account Tax Compliance Act (FATCA) will require effectively full disclosure of all
accounts held by US nationals anywhere in the world. Tax authorities are increasingly extracting
account information from domestic institutions and passing it over to counterparties in other
jurisdictions. Specific regulatory initiatives, such as the Alternative Investment Fund Managers
Directive (AIFMD) and the Markets in Financial Instruments Directive (MiFID) II in Europe as
34
well as the complex set of new regulations emerging under the Dodd-Frank Wall Street Reform
and Consumer Protection Act in the US are all having serious ripple effects throughout private
banking.
These pressures all increase operating costs and require extensive and expensive investment in
information technology, systems and processes. The demands of compliance, reporting, more
active client account management and other factors can no longer be satisfied with traditional
back-office systems and low-technology customer relationship channels.
The industry is under greater scrutiny and greater pressure to reform itself than ever before.
Traditional banking privacy is rapidly being destroyed as banking secrecy in offshore centers and
in traditional private banking locations such as Luxembourg and Switzerland is being blown away
by a combination of regulatory and fiscal authorities.
Strategic options
Wealth management firms that want to survive these increasing pressures and succeed in the new
environment have a number of options available. The least radical, but most challenging to
accomplish, would be to sustain the existing business model attempt to drive it back to acceptable
profitability. This is what we term the tweak strategy. It involves rationalizing unprofitable
clients and increasing revenue per client by cross-selling a broader range of services and products.
On the operations side, it means ruthlessly streamlining processes and driving up efficiency across
the whole front-to-back office chain. It will be especially challenging to reconcile the costs of
necessary investment with improving profitability and to satisfy increasing client demands while
streamlining and automating the relationship.
A second approach is to look much more strategically at the future business and regulatory
environment and at the longer-term requirements for success in order to reconfigure the business
accordingly. We refer to this as a pivot strategy. This may involve disposing of unprofitable
businesses or client books; developing and focusing on particular niche products or market sectors
where high value can be added; and perhaps changing the geographical target of operations to
focus more closely on areas such as Asia, which have the most rapid growth in high-net-worth
(HNW) individuals.
Finally, churn in the marketplace is likely to increase and open up other opportunities. More
stringent regulatory capital requirements may force multinational parents of private banks to
dispose of assets in the course of optimizing their balance sheets, especially in the case of smaller
companies where the fixed cost of implementing new regulations becomes too burdensome. On
the other hand, the sector is still significantly fragmented. Industry estimates suggest that the 20
largest wealth managers, who have a little over US$11 trillion of assets under management, only
account for around 10 percent of the total private wealth available to be targeted.1 The current
turmoil is likely to stimulate consolidation of the industry. Those who are determined to expand
their presence, especially in developing markets, should find significant opportunities to do so, but
need to be prepared to act to pounce when necessary.
35
Potential
Significant potential remains, despite the pressures facing the industry. The Boston Consulting
Group estimates that over the 5-year period ending 2016, private wealth will reach US$151.2
trillion, with an overall compound annual growth rate (CAGR) of 4.2 percent.2 Within this total,
growth in HNW and ultra-high-net-worth (UHNW) households is expected to be more rapid, at 6
percent and 7.5 percent, respectively. These investors are relatively more resilient than average
retail investors. They have deeper pockets and access to timely and sophisticated advice, which
also helps them ride out market cyclicality better. They remain an attractive prospect.
The big opportunities will increasingly be found in Latin America and in Asia. The Julius Baer
Group, which currently derives one-third of its assets under management from developing markets
such as these, expects this proportion to grow to over 50 percent by 2015. HNW individual wealth
in Asia-Pacific region is forecast to grow at over 10 percent until 2016. More significantly, only
around 17 percent of Asias HNW individuals have wealth management relationships with their
banks. Thus, a large pool of HNW individuals remains untapped.
This is not to say that success will come easily. New regulatory requirements will mean stronger
processes for risk management, customer protection and capital management. Business models
will have to remain flexible and responsive to rapid changes in the global distribution of wealth.
The days of easy profits in private banking may be over, and rightly so, but significant
opportunities remain for those who are prepared to grasp them.
INDIAN WMS Industry Overview

As with any almost any element of the financial markets in India, wealth management is at an early
stage of development. Only about 1% of the population owns equities to articulate the opportunity
in the Indian wealth management market the country has more billionaires than Japan. The Indian
economy is the tenth largest in the world in terms of nominal GDP and ranks as the third largest in
terms of GDP based on Purchasing Power Parity (PPP), behind only United States of America and
China. With the economy performing well after the global economic downturn of 2008, recording a
GDP growth rate of 9.2% in FY11 and 6.2% in FY12, the GDP growth slumped to a 10 year low of
5% in FY13. FY13 was a year of challenges for the economy with a slowdown experienced in
agriculture, manufacturing as well as service sector. This coupled with rising current account deficit,
high inflation, weakening exports due to weak global demand and delayed policy action slowed
down the GDP growth rate. As a result, even Foreign Direct Investment inflows took a hit,
registering a 38%1 decline from FY12, making foreign investors wary about India. Growth is
expected to remain at 5% in FY14. Agricultural sector owing to normal monsoon and growth in
36
Exports is likely to give a boost to the economy. However growth in manufacturing and service
sectors are expected to remain subdued
The Indian Economy is growing at a robust rate. Indian Financial Services Industry gets a rub-off of
this growth, but also has some complexities to shoulder along the way. The challenges are a transition
from Commission based to Advisory based services as a result of No load regime in Mutual Fund
schemes. The investor today is not only looking for a financial product in isolation but in a holistic
manner for meeting his/her life goals and risk factors. Therefore, there is a crying need to enhance
and upgrade the skill set of the financial product advisor in order to protect and safeguard the interest
of the investor and develop a long term relationship with him.
The Wealth Management industry in India is a prime example of the success of free competition in
the country. Wealth Management is one of the fastest growing disciplines of the banking sector and
with a GDP growth rate hovering around the 9% mark and a strong future outlook, Indias growth
story is making it an increasingly attractive market for wealth management firms. This trend is
expected to continue, with India estimated to become the third largest global economy by 2030.
Given the nascent stage of the market and a demographic and regulatory environment that is
significantly different from elsewhere in the world, Wealth Management Business Houses consider
the following to succeed in the Indian market:
Building of brand and focus on overcoming the trust barrier.

Invest in advisor technology to improve advisor productivity and retention.
Evaluate a partnership-based model, coupled with innovative use of technology, to increase reach.
Focus on transparency and compliance, while targeting customers with attractive, segment
focused products.
Current Primary Focus of Wealth Management Business Houses
Qualified advisors will be the best brand ambassadors for new firms seeking to gain a competitive
edge against established players.
Investor education programs could deliver information pertaining to various asset classes and the
associated risks, fee structures and benefits of each.
Establishing trust is a vital component for any successful brand-building exercise in India.
Strategies Opted by Wealth Management Business Houses
Invest in brand building to build trust.

Invest in advisor technology to improve productivity and advisor retention.
Offer a 360-degree view.
Shifting to a profit-sharing model (where the advisors fees are based on the overall performance
of the portfolio) would help mitigate issues to some extent.
37
Immediate Issues before Wealth Management Business Houses
Difficulty in putting a value to your service & advice.

Building the right business model.
Maintaining brokerage structure may be difficult and cumbersome and bulky.
Technology Online platforms with direct investments.
Immediate cash-flow concerns.
Need for Qualified Advisors!
The Current Indian Financial Advisory Market is looking for Brand building through its
Qualified Advisors as Brand Ambassadors.
Qualified Advisors shall develop trust with the clients on a better footings.
Qualified advisors will be the best brand ambassadors for new firms seeking to gain a
competitive edge against established players.
Advisor platforms that offer lead management, portfolio management, financial profiling,
asset allocation and transaction management capabilities can integrate multiple touch points
and improve advisor experience.
IFAs require a qualification to equip themselves with the required skill set and knowledge to call
themselves as Qualified Advisors
Individual Wealth in India

The amount of individual wealth in India is arrived by a summation of all asset classes in which
investments are made by individuals. It does not consider government and institutional holdings. In
this report, Financial assets and Physical assets, where investments are made by individuals of India
are considered. Also International investments made by these individuals in financial and physical
assets have been considered. As on FY13, Indian Individual wealth in financial assets stands at
`109.86 lakh crore whereas Indian Individual wealth in Physical
assets (Gold & Real Estate Investments) stands at `92.06 lakh crore. Hence the total Individual Wealth
in India stands at `201.90 lakh crore. Due to the stupendous growth and development in financial
markets in the last two decades since liberalisation, Indians now have 54.4% of their wealth invested
in financial assets.
Asset Class Amount (` Cr) Proportion (%)
38
39
Investments in fixed deposits & bonds form the largest component of the total individual wealth in
financial assets with 23% of Indian Individual financial wealth being held in this asset class. Direct
Equity comes a close second attracting 22.1% of total individual wealth in financial assets. Assets
held in Fixed Deposits have been increasing over the past couple of years as banks are now offering
high interest rates in the range of 8-12%. Indian Equity market saw the Nifty giving a return of 9.39%
as compared to a -8% in FY12. Growth in equity markets was also largely driven by higher inflows
from foreign institutional investors (FIIs).
40
Key Trends
Overall wealth held by individuals in India is expected to double to `411 lakh crore in the next 5
years. However the ratio of financial assets to Physical assets in total wealth (55:45) are expected to
broadly remain the same.
The Wealth held in Real Estate (excluding Primary Residence of the Individual) is expected to double
in the next 3 years.
In the coming years with improvement in the economy and the percentage of households owning
primary homes set to increase to greater than 90%, the fresh inflow into physical assets will increase
at a decreasing rate.
With expected upturn in the economy there will be a gradual shift of more financial savings being
invested in equities.
Even with a higher minimum investment size, alternative investments such as high yield debt, private
equity, real estate funds and hedge funds will remain popular among the HNIs.
With the expansion of workforce and pension benefits being limited for the newer generation from
employers/government, retirement/pension funds are expected to grow at a rapid pace in the next
decade.
41
Individual Wealth: India versus World

In this age of global integration, trends in Indian asset allocation should ideally be similar to trends
of asset allocation globally, Table 20 shows the proportion of investments in key asset classes by
individuals in India and globally
As is evident that investment in debt instruments is highest among asset classes

Both globally and in India. Investments in Alternative assets form a larger portion in India as
compared to that done globally primarily because of investments in Gold, where Indian individuals
preference to invest in Gold is still higher as compared to other nations. Investing in Equity in India
is still very low as compared to globally, however we foresee this to gradually increase in the future.
42
Future of Indias Individual Wealth

The global economy is still going through an upheaval and there are uncertainties ahead. The global
economic recession and crisis has, quite expectedly, impacted India, too. It is well known that - on a
purchasing power parity basis India is already, at over USD four trillion of GDP, the third largest
economy in the world. In the next 15 to 18 years this size is expected to grow, as per various studies
and estimates, four to five times. As a result many foreign investors and a majority
of global companies and businesses are making a beeline for the Indian market, which promises a
booming middle class, expanding steadily in the next few decades. Indias GDP for FY13 is `100
lakh crore and is expected to grow to `176 lakh crore by FY18. Individual wealth in financial assets
is expected to grow from the current `109.86 lakh crore to `228.36 lakh crore by FY18. Investment
in Physical assets is expected to increase from the current `92.06 lakh croreto `183.15 lakh crore by
FY18.
Hence the total wealth is expected to more than double from the current `201.92 lakh crore to `411.51
lakh crore
43
Competitor Information (Kerala circle)

1. Geojit BNP Paribas
Geojit BNP Paribas, today, is a leading retail financial services company in India with a growing
presence in the Middle East. The gamut of value-added products and services offered ranges from
equities and derivatives to Mutual Funds, Life & General Insurance and third party Fixed Deposits.
In 2007, global banking major BNP Paribas joined the company The needs of over 672800 clients
are met via multichannel services - a countrywide network of over 522 offices, phone service,
dedicated Customer Care Centre and the Internet
2. Acumen Capital Market India Pvt Ltd

Acumen Capital Market (India) Limited provides stock broking services. The company was
formerly known as Peninsular Capital Market Ltd. before it changed its name in May, 2008. The
company was incorporated in 1995 and is based in Kochi, India. Acumen Capital Market (India)
Limited operates as a subsidiary of Acumen Group. Acumen has emerged as a leading financial
services provider, having a network of 40,000 customers, spread over 12 states across the country,
served by over 375 associates
3. Doha Brokerage & Financial Services Ltd

Doha Brokerage & Financial Services Ltd, the flagship company of the DBFS group had its origin
in 1992 as one the first corporate brokerages in India and one of the leading financial service
companies in the country. Select group, as it was known then had a very humble beginning with
branches in select locations in Kerala. The group has a network of over 280 branches spread across
India and offices in Middle East. DBFS has trading licenses in BSE and NSE for cash and
derivative segment. We have memberships in premier commodity exchanges like MCX, NMCE
and NCDEX
4. Sharewealth Securities Ltd

Sharewealth Securities Ltd is the first corporate member of National Stock Exchange of India Ltd,
Bombay Stock Exchange Ltd and MCX Stock Exchange Ltd(MCX-SX) from THRISSUR, the
Cultural Capital of Kerala. Sharewealth is also a Depository Participant with CDSL (Central
Depository
Services
(India)
Ltd).
Sharewealth Securities Ltd has two group companies, Sharewealth Commodities Pvt Ltd
44
(Member: MCX, NCDEX, NMCE ,ICEX & NSEL) and Sharewealth Financial Services Ltd
(AMFI Registered Mutual Fund Distributor). Sharewealth has a group (Overseas Joint Venture)
company
at
Abu
Dhabi,
Sharewealth
Financial
Consultancy
LLC.
Registered & Corporate offices of Sharewealth Group of companies are at Thrissur.
Top Wealth Management Companies in India

1. ICICI Asset Management Company
ICICI group is the third largest fund based asset management company in India. This financial
company was founded in 1954 and currently K V Kamath is the chairman of the firm.
Market Capitalization: Total revenue of the ICICI financial services is around Rs 2000
crore to Rs 4000 crore. The profit of the company is around Rs 80 Crore to 90 Crore and
growing at the rate of 25% every year.
Business and Services: Core Banking, Financing, Asset Management.
Employees: 8000 to 15000.
Headquarters: The bank is based in Mumbai with offices and operations all over the
country.
Website: www.icicibank.com
2. HDFC Asset Management Company

HDFC Asset Management Company was formed in the year 1990 HDFC has over 318 outlets
including 77 offices across India and it covers over 90 locations.
Market Capitalization: market value of the HDFC is around $3.5 billion, for asset
management services profit is around Rs 400 Crore approx.
Business and Services: Banking, Wealth Management Services, Loans, Financial Security
Services.
Employees: 1700 to 2000 for various operations.
Headquarters: Corporate Office is in Mumbai and Deepak Parekh is the chairman.
Website: www.hdfc.com
3. Reliance Asset Management Company

Reliance Capital was founded in year 1986 and currently Anil Ambani is the chairman.
45
Market Capitalization: Total revenue is over $1 billion and average asset managed by
44 fund houses is Rs 6,60,000+ Crore
Business and Services: Asset management, Mutual funds, Life and general insurance,
Private equity and proprietary investments, Stock broking, Reliance PMS, Depository
services and financial products, Consumer finance and other activities in financial
services.
Employees: 12,500+
Headquarters: The company is based in Mumbai and Sundeep Sikka is the CEO of the
firm
Website: www.reliancecapital.co.in
4. UTI Asset Management Company

UTI asset Management Company was established in the year 2003 and incorporated on the date
Nov 14 2002.
Market Capitalization: Asset managed until this date is around Rs 74233.29 Crore
Business and Services: Mutual Funds, Wealth Management services
Employees: 3000 to 4000, company has a network of 149 UTI financial Centers and UTI
international offices in London, Dubai and Singapore
Headquarters: Headquarter of UTI is in Mumbai and Mr Leo Puri is CEO and Managing
Director
Website: www.utimf.com
5. Birla Sun Life Asset Management Company

The company is joint venture between Aditya Birla Group and Sun Life Financials.
Market Capitalization: Total revenue of the firm is around Rs 1000 crore to Rs 2000
crore.
Business and Services: capital market, corporate finance, wealth management services,
commercial real estate and mortgage and structured finance.
Employees: 10,000 to 15000 for various sectors.
Headquarters: Corporate office is in Mumbai.
Website: www.adityabirlafinance.com
6. Kotak Mahindra Asset Management
Kotak Mahindra has over 7 million loyal customers. It stated its operation in the year 1998
46
Market Capitalization: The Net worth of the company is over Rs 7911 Crore
Business and Services: Asset management services and various bonds & funds
Employees: 20,000+
Headquarters: Headquarter is in Mumbai and the Company has over 76 branches in 79

cities
Website: www.kotakmutual.com
7. Religare Asset Management Company

Religare Mutual fund is the sole product developed and marketed by Religare asset management
company. The company was registered in National Stock Exchange in the Year 1994. The firm
has over 1 million customers around the world.
Market Capitalization: Total revenue is around Rs 120 crore and average asset is Rs 126
Billion
Business and Services: brokerage, health & life insurance, asset management, Small and
medium enterprises (SME) lending, wealth management, institutional equities and
investment banking services.
Employees: 8000 to 10000 across the country.
Headquarters: headquarter of the company is in New Delhi with 2200 offices in 550 cities
around the world.
Website: www.religareinvesco.com
8. Reliance Mutual Fund

Reliance Mutual fund is subsidiary of Reliance group. Reliance Mutual fund has over 6 million to
7 million investors
Market Capitalization: Total assets worth Rs 86,327 Crores
Business and Services: Mutual Funds and Asset Management services
Employees: 10,000 to 15,000
Headquarters: Corporate office is in Mumbai with presence in over 179 cities
Website: www.reliancemutual.com
47
9. Tata AMC
Tata Group wealth or asset management company is subsidiary of Tata Group, it was established
in the year 1995. It fully enjoys the support of Tata Group. There are around 5 to 10 lakhs investors
that Tata AMC caters to.
Market Capitalization: Total Assets worth around Rs 20,000 Crore to Rs 22,000 Crore
until now
Business and Services: Fund Management, Asset Management, Mutual Funds etc
Employees: 8000 to 10,000
Headquarters: Mumbai, Maharashtra
Website: www.tatamutualfund.com
The Worlds Largest Wealth Manager by Client Assets (June 11 -2014)
Rank YoY
Firm
2013 change
AuM
($bln)
+2
UBS AG
2,055
-1
Bank of America Corp.
2,002
-1
Morgan Stanley
1,909
--
Wells Fargo & Co.
1,618
--
Credit Suisse Group AG
887
--
Royal Bank of Canada
660
+2
Raymond James Financial Inc.
454
+2
BNP Paribas SA
383
-2
HSBC Holdings Plc
382
10
-2
Deutsche Bank AG
380
48
Top Brokerage Companies in India

1. Sharekhan Limited
ShareKhan is an online trading company of SSKI group. It has presence in over 170 cities of the
country and Indias most trusted brokerage firms.
Head Office: Mumbai, India
Number of Terminals: 2000 to 2500
Number of Sub Brokers: 200 to 300
Number of Branches: 510 offices
Number of Employees: 1000 to 2000
Account Opening Fee: Rs 750/- for Classic Account and Rs 1000/- for Trade Tiger
Website: www.sharekhan.com
2. India Bulls
India bulls was founded by Sameer Gehlaut in the year 2000. India bull has a net worth of Rs
17,000 crore.
Head Office: Gurgaon, Haryana
Number of Branches: 414 to 450
Account Opening Fee: Rs 1200/- (Rs 250/- for equity + Rs 200/- for Demat + Rs 750/for software )
Website: www.indiabulls.com
49
3. Angel Broking Limited

Angel is counted among top 3 broking firms in India. It was founded in the year 1987 and it offers
various services like ebroking, commodity trading and other wealth management services.
Account Opening Fee: Stock Trading Account + Demat Account = Rs 500/-, Commodity
Trading = Rs 625/-
Website: www.angelbroking.com
4. Reliance Money
Reliance money is Indias number one broking firm. It has over 3.5 million customers with more
than 6000 outlets around the country.
Head Office: Lower Parel, Mumbai
Account Opening Fee: Trading + Demat = Rs 750/- and for foreign nationals it is Rs
1000/-
Website: www.reliancemoney.com
5. India Infoline Limited

India Infoline was started in year 1996 and has over 2 million customers.
Head Office: Andheri, Mumbai
50
Account Opening Fee: Trading + Demat = Rs 750/-
Website: www.indiainfoline.com
6. Kotak Securities Limited

Kotak Securities was incorporated in 1994 and it is subsidiary of Kotak Mahindra.
Head Office: Nariman Point, Mumbai
Account Opening Fee: Derivative brokerage Rs 150 per contract and delivery brokerage
is .45%
Website: www.kotaksecurities.com
7. ICICI Direct
ICICI Direct is a stock trading company of ICICI bank.
Head Office: Mumbai, Maharashtra
Account Opening Fee: Rs 750/- for share trading account, wise investment, active trader
account
Website: www.ICICIdirect.com
8. Motilal Oswal Securities

Motilal Oswal securities Ltd was founded in 1987 and considered to be best local brokerage firm.
Head Office: Mumbai, Maharashtra
51
Account Opening Fee: Rs 600/- with first year Amc and from next year only Rs 400/-
Website: www.motilaloswal.com
9. HDFC Securities
HDFC securities was established 10 years back. It has over a million customers.
Account Opening Fee: Minimum Brokerage per order Rs 25/- for resident and NRI.
Subject to ceiling of 2.5% of total traded value
Website: www.hdfcsec.com
10. Bajaj Capital

Bajaj Capital started its website justtrade.in in the year 2008.
Account Opening Fee: Onetime payment of Rs 499/- and trading account with 1st year
AMC and from next year it is Rs 180/- and Rs 1499/- for DEMAT
Website: www.justtrade.in
11. Aditya Birla Money

There are seven companies representing Aditya Birla Money are Birla Sun Life Insurance
Company, Birla Sun Life Asset Management Company, Aditya Birla Money, Birla Sun Life
Distribution Company, Aditya Birla Finance, Birla Insurance Advisory and Broking Services
52
Account Opening Fee: Account charges are around Rs 750/- for online cum offline
trading and Demat A/C
Website: www.adityabirlamoney.com
12. SMC Global Securities Limited

SMC Global Securities is present all over the country. It has over 6 million satisfied investors and
over 3.5 million trades per day.
Head Office: New Delhi, India
Account Opening Fee: Demat + Trading One Time Charge = 499/-
Website: www.smcindiaonline.com
13. Geojit BNP Paribas

Geojit BNP Praibas has over 7 million clients with 522 offices around the country and in Middle
East also.
Head Office: Kochi, Kerala
Account Opening Fee: For deliver based trading: .10% to .30%, for intra-day trading:
.01% to .03% and F &O trading brokerage is Rs 30 to Rs 75 per lot.
Website: www.geojitbnpparibas.com
53
Dynamic Asset Allocation strategies With Respect to

Retail Investors
Who is Retail Investor?
A retail investor is an individual who purchases securities for his or her own personal account
rather than for an organization. Retail investors typically trade in much smaller amounts than
institutional investors. Retail investing generally occurs through four channels: individual
investors, retail brokers (who act at the direction of these individuals), managed accounts (whereby
the account manager makes the buy and sell decisions for the individual), and investment clubs
(groups of people who pool their money to make investment)
What is Asset Allocation?

An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets
according to an individual's goals, risk tolerance and investment horizon.
The three main asset classes - equities, fixed-income, and cash and equivalents - have different
levels of risk and return, so each will behave differently over time.
6 Asset Allocation Strategies That Work

Establishing an appropriate asset mix is a dynamic process, and it plays a key role in determining
your portfolio's overall risk and return. As such, your portfolio's asset mix should reflect your goals
at any point in time. Here we outline some different strategies of establishing asset allocations and
examine their basic management approaches
1. Strategic Asset Allocation

This method establishes and adheres to a "base policy mix" - a proportional combination of assets
based on expected rates of return for. each asset class For example, if stocks have historically
returned 10% per year and bonds have returned 5% per year, a mix of 50% stocks and 50% bonds
would be expected to return 7.5% per year.
2. Constant-Weighting Asset Allocation

Strategic asset allocation generally implies a buy-and-hold strategy, even as the shift in values of
ssets causes a drift from the initially established policy mix. For this reason, you may choose to
adopt a constant-weighting approach to asset allocation. With this approach, you continually
54
rebalance your portfolio. For example, if one asset is declining in value, you would purchase more of
that asset; and if that asset value is increasing, you would sell it. There are no hard-and-fast rules for
timing portfolio rebalancing under strategic or constant-weighting asset allocation. However, a
common rule of thumb is that the portfolio should be rebalanced to its original mix when any given
asset class moves more than 5% from its original value.
3. Tactical Asset Allocation

Over the long run, a strategic asset allocation strategy may seem relatively rigid. Therefore, you may
find it necessary to occasionally engage in short-term, tactical deviations from the mix to capitalize
on unusual or exceptional investment opportunities. This flexibility adds a market timing component
to the portfolio, allowing you to participate in economic conditions more favorable for one asset
class than for others.
Tactical asset allocation can be described as a moderately active strategy, since the overall strategic
asset mix is returned to when desired short-term profits are achieved. This strategy demands some
discipline, as you must first be able to recognize when short-term opportunities have run their
course, and then rebalance the portfolio to the long-term asset position.
4. Dynamic Asset Allocation

Another active asset allocation strategy is dynamic asset allocation, with which you constantly adjust
the mix of assets as markets rise and fall, and as the economy strengthens and weakens. With this
strategy you sell assets that are declining and purchase assets that are increasing, making dynamic
asset allocation the polar opposite of a constant-weighting strategy. For example, if the stock market
is showing weakness, you sell stocks in anticipation of further decreases; and if the market is strong,
you purchase stocks in anticipation of continued market gains.
5. Insured Asset Allocation

With an insured asset allocation strategy, you establish a base portfolio value under which the portfolio
should not be allowed to drop. As long as the portfolio achieves a return above its base, you exercise
active management to try to increase the portfolio value as much as possible. If, however, the portfolio
should ever drop to the base value, you invest in risk-free assets so that the base value becomes fixed.
At such time, you would consult with your advisor on re-allocating assets, perhaps even changing your
investment strategy entirely.
Insured asset allocation may be suitable for risk-averse investors who desire a certain level of active
portfolio management but appreciate the security of establishing a guaranteed floor below which the
portfolio is not allowed to decline. For example, an investor who wishes to establish a minimum
55
standard of living during retirement might find an insured asset allocation strategy ideally suited to his
or her management goals.
6. Integrated Asset Allocation

With integrated asset allocation, you consider both your economic expectations and your risk in
establishing an asset mix. While all of the above-mentioned strategies take into account expectations
for future market returns, not all of the strategies account for investment risk tolerance. Integrated
asset allocation, on the other hand, includes aspects of all strategies, accounting not only for
expectations but also actual changes in capital markets and your risk tolerance. Integrated asset
allocation is a broader asset allocation strategy, albeit allowing only either dynamic or constantweighting allocation. Obviously, an investor would not wish to implement two strategies that compete
with one another.
Dynamic Asset Allocation

All investment portfolios have an asset allocation; whether intentional or not. However, dogmatically
relying on any static long-term strategic asset allocation to ensure that investment objectives are
achieved can be detrimental, especially where investors have multi-faceted objectives across a
continuum of timeframes. Market dynamics are continually changing and short-term risks can
dominate news headlines and market volatility. Dynamic asset allocation continuously evaluates the
investment market landscape to deliver additional returns and abate portfolio risks; such as tail events.
Dynamic asset allocation (DAA) describes active portfolio management from a macro, or top down,
perspective. The process aims to generate additional returns, or abate portfolio risks, by reallocating
capital when capital markets deviate from fair value. DAA bridges the divide from strategic asset
allocation (SAA) which uses equilibrium assumptions to provide long-term policy weights by
introducing a more flexible framework to increase exposure to under-valued opportunities while
reducing exposure to overvalued assets.
How it works/Example:
Lets assume you have $100,000 to invest. Based on your circumstances, risk aversion, goals and tax
situation, you put $50,000 of the money in stocks, $30,000 in bonds, $10,000 in real estate, and
$10,000 in cash. Thus, 50% of the portfolio is in stocks, 30% is in bonds, 10% is in real estate, and
10% is in cash. As time passes, the stocks in the portfolio might rise so much in value that the stock
weighting increases from 50% to 70% and consequently reduces the proportion of the other asset
classes in the portfolio.
In this situation, the investor might sell some of the stocks or purchase securities in other asset classes
in order to bring the portfolio back to the original weighting. If the investor reweights the portfolio
frequently, say every three months, then the investor is said to engage in market timing, tactical asset
allocation, or active investing. In both types of rebalancing approaches, the investor must consider
whether the effort and additional transaction costs will increase returns. However, if the investor
56
refrains from rebalancing the portfolio at all, effectively leaving the investments to do what they may,
the investor is practicing a true buy and hold strategy.
Why it Matters:
Many experts believe that what an investor buys or sells is more important than when he or she buys
or sells it. This is the essence of asset allocation. Because many asset classes tend to rise and fall
together, a portfolios overall return is much more affected by how the portfolio is allocated rather
than the specific securities chosen. A well-known 1986 study by Brinson, Hood and Bee bower
confirmed that 95% of the time, asset allocation determined a portfolios returns rather than the
specific securities chosen. A dynamic asset allocation strategy is a mix of active and passive investing.
On one hand the investor keeps a consistent, long-term asset allocation and does not alter that based
on short-term market swings or stock fads. On the other hand, the investor buys and sells securities in
his portfolio occasionally in order to keep the portfolio aligned with the original weightings. Dynamic
asset allocation is often cheaper than active trading. It can have tax benefits if the IRS taxes long-term
capital gains at a lower rate than short-term capital gains. Also, the strategy requires less in trading
commissions and advisory fees, which often force investors to have higher return requirements to
compensate for these extra costs.
There is no simple formula that can find the right Dynamic asset allocation for every Retail investors.
However, the consensus among most financial professionals is that asset allocation is one of the most
important decisions that investors make. In other words, your selection of individual securities is
secondary to the way you allocate your investment in stocks, bonds, and cash and equivalents, which
will be the principal determinants of your investment results.
Methodology Followed
The Project Industrial Study on Hedge Equities WMS & Dynamic Asset Allocation strategies
With Respect to Retail Investors forecasting two components wealth and Asset Allocation since
it is an industry analysis primary data analysis is not possible. Secondary data analysis is the most
suitable methodology for this particular project and for the asset allocation strategies questionnaire
can also be included but continues relationship with investor will more effective to determine the
risk profile of the investor
57
Findings of the Project
Wealth management is arguably now one of the fastest growing segments of the financial
services industry with global wealth expected to grow 61% to USD 313 trillion by 2015
The total wealth of millionaire households may grow from $92 trillion in 2010 to $202
trillion in 2020 (based on a review of 25 economies).
The Boston Consulting Group estimates that over the 5-year period ending 2016, private
wealth will reach US$151.2 trillion, with an overall compound annual growth rate (CAGR)
of 4.2 percent.2 Within this total, growth in HNW and ultra-high-net-worth (UHNW)
households is expected to be more rapid, at 6 percent and 7.5 percent,
Indias GDP for FY13 is `100 lakh crore and is expected to grow to `176 lakh crore by
FY18
Individual wealth in financial assets is expected to grow from the current `109.86 lakh crore
to `228.36 lakh crore by FY18
lakh crore in the next 5 years. However the ratio of financial assets to Physical assets in
total wealth (55:45) are expected to broadly remain the same.
The Wealth held in Real Estate (excluding Primary Residence of the Individual) is expected
to double in the next 3 years
With the expansion of workforce and pension benefits being limited for the newer
generation from employers/government, retirement/pension funds are expected to grow at
a rapid pace in the next decade.
only about 1% of the Indian population owns equities
In WMS nobody has a significant market share
International wealth managers are exiting India UBS and Morgan Stanley, which
announced their own Indian exits
There is no simple formula that can find the right Dynamic asset allocation for every Retail
investors it is based on the
58
Conclusion
Hedge Equities has over 20,000 satisfied customer and is awarded the best brand by the investor
community of Asianet channel. It offers a variety of products to the investor community. It was
able to achieve a good growth within a short period of time and is ready heading its head high like
the bull logo of the company.
Wealth Management department of Hedge has grown tremendously over a very short time and
now handles 500 crore. It is filled with enthusiastic people who have the zeal and enthusiasm to
work in the market. It is this team that is responsible for the success of the department
The Wealth Management industry in India is a prime example of the success of free competition
in the country. Wealth Management is one of the fastest growing disciplines of the banking sector
and with a GDP growth rate hovering around the 9% mark and a strong future outlook, Indias
growth story is making it an increasingly attractive market for wealth management firms. This
trend is expected to continue, with India estimated to become the third largest global economy by
2030
Asset allocation can be an active process to varying degrees or strictly passive in nature. Whether
an investor chooses a precise asset allocation strategy or a combination of different strategies
depends on that investor's goals, age, market expectations and risk tolerance
Be aware that allocation approaches that involve anticipating and reacting to market movements
require a great deal of expertise and talent in using particular tools for timing these movements.
Some would say that accurately timing the market is next to impossible, so make sure your strategy
isn't too vulnerable to unforeseeable errors.
59
RECOMMENDATION
Based on the above study, the following recommendations have been made
People of Kerala are unaware of many of the investment options they have. They still
follow old methods of investing. Awareness can be created by conducting workshops and
seminars. This will increase the turnover of the WMS department in the long run.
While drawing a financial plan to a customer, it would be better to follow observe his life
stage and a FBR kind of report needs to be obtained for better results.
I suggest clubbed profiling were in a two main members of the family are profiled
(Husband and wife mainly) and clubbed to make a single profile for them. This is needed
to cover the hidden risk tolerances and meeting forgotten expectations that may incur on
single customer man profiling.
Macro-economic report needs to be submitted by the research team to the Wealth managers
in crisp manner whenever there is a news regarding the same. It can be put in the bulletin
as well.
Debt instruments is found to be underutilised .It should be utilised more. Time value of
money calculations needs to be done on same.
Alternate assets like gold and real estate related investments should be looked upon.
Currently it forms a small percentage of the investments.
Hedge funds are not been considered till now. It can be looked by the WMS team if it can
meet all statutory requirements.
All the members in the WMS departments should look and attain qualifications in different
courses and certifications issued by NSE NCFM and NISM. This will keep them updated
about new techniques used in this wealth management sector.
From a marketing point of view, I have found that WMS department requires a good
advertising and penetration into the masses. Hedge being a popular name among people
should make their WMS department the best perceived name in wealth management and
this will help the company a lot in years to come as this sector will witness a boom as
explained in the industry analysis.
60
Limitation of the Project
As the project is an industrial analysis primary data collection is very difficult

Trust worthiness of secondary data is questionable
As the company provides daily works project have to do single handily with fixed time frame
As the stock market changes every seconds our guide is helpless to help in our project
As Hedge Equities is an financial company the confidential data is not available or they are
not ready to give
As I make this as a Research paper my lack of experience in the same acted as a big obstacle
Since the future uncertain making assumption regarding wealth of economies may go wrong
like 2008 crisis
ACRONYMS
WMS
Wealth Management Services
GDP
Gross Domestic Product
HNWIs
High-net-worth individuals
ROI
Return on Investment
PE
Private Equity
SIP
Systematic Investment Plan
PMS
Portfolio Management Service
ETF
Exchange-Traded Funds
AUM
Assets under Management
PPP
Purchasing Power Parity
61
Bibliography
www.hedgeequities.com
http://www.geojitbnpparibas.com
http://www.karvy.com
www.bcg.com/
www.pwc.com
www.sebi.gov.in
www.moneycontrol.com/
http://www.kpmg.com/in/en/pages/default.aspx
http://www.crisil.com
62

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KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMET STUDIES

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Industrial Study on Hedge Equities WMS & Dynamic

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

14. COMPETITOR INFORMATION

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

My Project is Industrial Study on Hedge Equities WMS & Dynamic Asset

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

OBJECTIVE OF THE PROJECT

To understand the process of wealth management

Determine the Growth prospective of this industry

Comparison World and Indian wealth management services

Determination of asset allocation strategies

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

INTRODUCTION ON WEALTH MANAGEMENT

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Why is wealth management important?

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

PROCESS OF WEALTH MANAGEMENT SERVICE

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Some benefits of investing in Private Equity firms:

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

UNDERSTANDING PROFILE OF CLIENT

Details need to know are:

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

C. Need for Investment:

D. Expecting Rate of return:

Hedge Equities Pvt Ltd

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Portfolio advisory services of Hedge Equities

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Portfolio Management Services

Lack sufficient time to adequately monitor and manage a portfolio

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Stock Selection is made through detailed fundamental analysis of the securities.

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Who can invest

Minimum Investment: Rs Twenty Five Lakhs.

Stock selection based on extensive fundamental and technical analysis.

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd

Kirloskar Institute of Advanced Management Studies

Hedge Equities Pvt Ltd