INSTRUMENTS OF WEALTH MANAGEMENT:

Indian weddings have always been grand and festive affairs, as reflected in films like Monsoon Wedding and Bride and Prejudice. But India's burgeoning middle class -now 300 million strong - are turning weddings into showcases of their growing disposable incomes and newfound appetites for the goodies of the global market place. The minimum budget for a wedding ceremony is $34,000, say wedding planners ,while the upper-middle and rich classes are known to spend upward of $2 million.(The average American wedding costs $26,327.) This doesn't include cash and valuables given as part of a dowry. According to the National Council for Applied Economic Research (NCAER), the middle class are those making $4,545 to $23,000 a year. NCAER projects that the market for all categories of products, from daily consumables to consumer durables, will double in annual sales by 2010. With the economy expected to maintain steady 6 percent annual growth, India is widely seen as one of the world's 10 largest emerging markets. When it comes to the instruments of wealth management in India, instruments like the banking sector, stock market, mutual funds can be considered in this category.

BANK DEPOSITS:
Independent research shows that customers prefer to deal with a local operator for management of his assets. The wealth management industry has begun to follow thetrend set by the likes of shoe brand Nike and fashion retailer Gap in moving parts of its operations to cheaper environments. As ever, the back and middle offices are the bits that wealth managers want to offload. In India it is both the public sector and the private sector banks who have demonstrated themselves in the assets managementmarket to tap the growing potentiality of this sector. State Bank of India, the nation'slargest lender, plans to offer wealth management services to affluent clients, seeking ashare of a fast-growing market that is now worth $10 billion, and that may doubleevery two years. "Wealth management has tremendous growth potential," said IndrajitGupta, managing director of SBI Capital Markets, State Bank's investment bankingunit. Foreign banks with Indian collaborations are not also far from others. For example, Fidelity and Citibank have some operations in India, including call centres, processing and systems development. Outsourcing to India is about more than simplysaving costs, according to the high commissioner of India, Ronen Sen. Depending onthe particular operation sought to be outsourced, and the scale of th e project, costsavings range from 30 per cent to as much as 70 per cent. Citigroup, ABNAMRO Holding, Standard Chartered and ICICI Bank already offer wealthmanagement services in the nation. About 70,000 Indians had financial assets of morethan $1 million each in 2004, according to a study by the management consultantsCap Gemini and Merrill Lynch. DSP Merrill Lynch estimates that wealth

under management in India totals about $10 billion. ICICI Bank, India's secondbiggestlender, believes that amount could double every two years, said Arpit Agarwal, thelender's head of private banking. Now government-controlled banks, including StateBank, are seeking wealth management business as economic growth, forecast by thegovernment at an annual average pace of 7 percent, raises incomes and as Indiansseek more ways to earn higher returns on their wealth. "In the current interest rate,taxation and macroeconomic environment, with a positive corporate performance andGDP growth, more and more individuals are seeking professional management of their finances," said Sharad Mohan, a marketing director of wealth management atCitigroup's India unit. Canara Bank, the third-biggest lender in India, plans to open branches catering specifically to affluent individuals, said B. Sukumaran, a deputygeneral manager. Canara Bank initially would offer financial advice, mutual fundsand insurance products, he said. Bank of India, which started an online stocktradingsystem in July, also said it was studying plans to offer wealth management services.Union Bank of India, the seventh-biggest lender by assets, has also started an onlinestock trading service for customers, in addition to offering mutual funds and insurance products. ICICI has 500 financial advisers for its clients, having expanded the number fourfold in the past three years. It has 260 billion rupees, or $5.9 billion, of assetsunder management. Citibank has a well-organized system of Wealth Managementservices in India that give you unparalleled advantage and opens up the opportunity tomaximize wealth. For example, Citigold Wealth Management Scheme. CitiGoldWealth Management offers exclusive privileges to its customers that comprises of: Tax and estate advisory services through a leading tax advisory firm in India. Free for life Citibank International Gold Credit Card. Updated information on treasury, currency markets Invites to seminars on capital markets, mutual funds, budget and taxation. Free insurance benefits - upto Rs 30 lakh personal accident, and baggage and householder insurance. Free access to airport lounges at Domestic and International airports in India. DBS Bank offers power packed Savings Account with convenient features and chargefree banking options. So now you can bank and transact without the stress of fees levied on transactions. No Frills account is made to order, working to provide vital banking services with nominal average quarterly balance requirements. Saving Power Plus Account is tailored especially for individuals with an investible surplus of Rs. 5 to 25 lacs. In other words, the account is suited for individuals who are looking for exclusive banking services. Saving Power Plus operates in INR currency with a high balance and zero charge structure. With its features and benefits, the accounts is a unique offering. The minimum balance per month is Rs. 100,000. Account

holdersreceive free monthly and quarterly statements as well as personalised cheque books.Saving Power Plus offers all Banking Services without service charges. The DepositPlus account is for individuals looking for a medium term investment option with aninvestible surplus of 15 lacs or more. This is a pure deposit relationship and is offeredin INR currency. The difference with this account is the bundle of banking servicesand competitive interest rates.Private banking is emerging as an important segment of business for some banks andnon-banking financial companies (NBFCs) in India. Banks and NBFCs say there has been an increase in the number of private banking or wealth management clients theyare dealing with today. Foreign banks, which mostly cater to high net worthindividuals, with financial surplus or investible incomes of over Rs 2 crore per year,say that this segment is expected to grow by almost 20 per cent over the next coupleof years. About the potential for wealth management, Mr. Sharad Mohan, MarketingDirector, CitiGold Wealth Management, CitiBank, said, "Wealth management is afast evolving domain with tremendous growth opportunity in India. In the currentinterest rate and taxation environment, more individuals are seeking professionalmanagement of their finances." 36