WEALTH MANAGEMENT

PROJECT

Submitted By:
Sharika Kolenchery
PGDM
Rajagiri Business School
 1. Contact one investor with ‘savings’ and one investor with ‘wealth’ and
try to understand how their investment needs are met.
1) List products invested in
2) Analyze the asset classes and the asset allocation
3) The level of engagement with his/her service provider

Amount invested in Products

Investor with Savings:

Products Amount
Fixed Deposit 500000
Mutual Fund 250000
KSFE 150000
Shares 200000
Insurance 100000
Savings Account 150000

Investor with Wealth:

Products Amount
Real Estate 6400000
Mutual Funds 500000
Bonds 550000
Gold 2500000
 Asset Classes and Asset Allocation

For Savings:

Assets Classes Asset Allocation Weighted Allocation

Fixed Income 650000 48.2%
Bonds 250000 18.5%
Alternative Investments 250000 18.5%
Equity 200000 14.8%
TOTAL 1350000

For Wealth:

Assets Classes Asset Allocation Weighted Allocation

Precious Metal 2500000 25.1%
Bonds 1050000 10.6%
Alternative Investments 6400000 64.3%
TOTAL 9950000
 Level of Engagement with Service Providers

For Savings:

Products Level Of Engagement

Fixed Deposit Low
Mutual Fund Medium
KSFE Medium
Shares High
Insurance Medium
Savings Account Low

For Wealth:

Products Level Of Engagement

Real Estate NIL
Mutual Funds Medium
Bonds Medium
Gold NIL
 2. List the bonds/fixed income securities (Not MFs, Not Insurance) an
Indian investor can invest in to seek tax deduction, exemption or
avoidance

Section 80C – The section 80C of the IT laws provide exemption from income
tax on amounts that are invested by the individual. This usually includes the
amount the individual invests in certified instruments that are exempt from
tax. They are:

• PF – Provident Fund (A portion of your salary is deducted by your

employer as PF and would be remitted to the PF house that is
maintained by the government of India. A maximum of 12% of your
basic Salary is eligible for exemption from income tax)

• PPF – Public Provident Fund

• NSC – National Savings Certificate

• KVP – Kisan Vikas Patra

• 5 year bank fixed deposits

• Investment in with banking institution
•
• Investment in financial institution working for Industrial Development of
India
•
• Investment in a public company limited working for providing long term
financing of housing accommodation
 3. ICICI Prudential AMC
1) List the top performing funds in large cap diversified Equity, Balanced
Fund and Debt Fund
2) Compare their portfolios as of 1/Jan/2008 and 1/Jan/2009
3) Briefly describe their load structures.

Top performing Equity Funds:

ICICI Prudential Infrastructure Fund

SECTORS 2008 2009 CHANGE

Dredging 0.45 - -
Hotels 0.52 0.77 0.25
Transportation 0.85 1.88 1.03
Textile Products 0.87 0.28 (0.59)
Gas 1.60 0.97 (0.63)
Auto Ancillaries 1.80 0.61 (1.19)
Auto 1.86 - -
Industrial Products 2.95 0.49 (2.46)
Non Ferrous Metals 3.01 4.18 1.17
Finance 3.70 0.81 (2.89)
Oil 4.32 2.98 (1.34)
Cement 5.18 0.92 (4.26)
Telecom Services 5.26 9.05 3.79
Power 5.47 5.73 0.26
Construction 5.59 3.47 (2.12)
Banks 6.13 21.21 15.08
Petroleum Products 9.46 6.39 (3.07)
Ferrous Metals 12.32 4.38 (7.94)
Industrial Capital Goods 13.07 1.66 (11.41)
Construction Durables 0.13 -
Diversified 0.80 -
 ICICI Prudential Dynamic Plan

SECTORS 2008 2009 CHANGE

Oil 0.24 2.01 1.77

Pesticides 0.79 1.51 0.72
Construction 0.90 1.57 0.67
Auto Ancillaries 0.95 2.35 1.4
Fertilizers 1.46 1.13 (0.33)
Non Ferrous Metals 1.77 5.65 3.88
Power 2.38 3.95 1.57
Cement 2.51 1.54 (0.97)
Hotels 2.71 - -
Ferrous Metals 2.76 0.25 (2.51)
Software 2.95 3.69 0.74
Finance 3.79 - -
Consumer Non Durables 4.02 8.89 4.87
Auto 4.11 0.07 (4.04)
Telecom Services 4.27 9.19 4.92
Industrial Products 4.44 1.30 (3.14)
Textile Products 4.59 1.32 (3.27)
Pharmaceuticals 5.00 9.99 4.99
Industrial Capital Goods 5.07 2.22 (2.85)
Media & Entertainment 9.69 0.82 (8.87)
Banks 9.92 15.91 5.99
Petroleum Products 12.37 5.12 (7.25)
Telecom Equipment & Acce - 5.12 -
Chemicals - 1.12 -
Diversified - 2.00 -
 Top Performing Balanced Fund:

ICICI Prudential Balanced Fund

SECTORS 2008 2009 CHANGE

Finance 0.03 - -
Hardware 1.75 - -
Consumer Durables 2.19 0.58 (1.61)
Chemicals 2.64 0.96 (1.68)
Non Ferrous Metals 2.82 4.92 2.1
Construction 3.05 3.11 0.06
Textile Products 3.26 0.95 (2.31)
Media & Entertainment 3.93 - -
Auto 4.42 2.65 (1.77)
Ferrous Metals 4.43 1.24 (3.19)
Cement 5.20 1.50 (3.7)
Software 5.92 16.19 10.27
Telecom Services 6.27 7.51 1.24
Industrial Products 11.10 1.60 (9.5)
Petroleum Products 13.76 14.33 0.57
Industrial Capital Goods 14.59 5.27 (9.32)
Banks 14.61 9.40 (5.21)
Oil - 9.42 -
Consumer Non Durables - 7.16 -
Diversified - 5.71 -
Power - 4.00
Pharmaceuticals - 2.88 -
Telecom- Equipment & - 0.60 -
Acce:
Top Performing Debt Fund:

ICICI Prudential Floating Rate Plan

SECTORS 2008 2009 CHANGE

PSU/ PFI Bonds 2.58 - -

Private Corporate 24.97 5.24 (19.73)
Securities
CP’s, CD’s & Term 67.82 79.18 11.36
Deposits
Cash, CBLO & Reverse 3.64 14.84 11.2
Repo
Other Current Assets 1.00 0.73 (0.27)
 Performance of funds for last 1 year:

Equity Fund

ICICI Prudential Infrastructure

Month Assets
(Rs. in
cr.)
Jan-08 4140.01
Feb-08 4240.53
Mar-08 4090.15
Apr-08 4682.84
May-08 4203.81
Jun-08 3794.06
Jul-08 3548.85
Aug-08 3900.92
Sep-08 3717.74
Oct-08 2707.63
Nov-08 2408.8
Dec-08 2537.24
Jan-09 2552.68

5000
4500
4000
3500
3000
2500
2000
1500 Series1
1000
500
0
Balanced Fund:

ICICI Prudential Balanced Fund

Month Assets
(Rs. in
cr.)
Jan-08 406.12
Feb-08 404.96
Mar-08 361.11
Apr-08 349.56
May-08 350.16
Jun-08 314.06
Aug-08 303.73
Sep-08 289.58
Oct-08 226.79
Nov-08 212.9
Dec-08 218.72
Jan-09 217.43

Assets (Rs. in cr.)

450
400
350
300
250
200
150 Assets (Rs. in cr.)
100
50
0
Load Structure

1. ICICI Prudential Infrastructure Fund

Entry Load: 2.25%

Exit Load: 1.00%

2. ICICI Prudential Dynamic Plan

Entry Load: 2.25%

Exit Load: 1.50%

3. ICICI Prudential Balanced Fund

Entry Load: 2.25%

Exit Load: 1.00

4. ICICI Prudential Floating Rate Fund

Entry Load: NA

Exit Load: NA