A Report On Wealth Management

Submitted in partial fulfilment for the Award of degree of

Master of Business Administration

2011-2012

ACKNOWLEDGEMENT

Any job in this world, however trivial or tough cannot be accomplished without the assistance of other. I would hereby take the opportunity to express my indebtedness to people who have helped me to accomplish this task.

No task however small can be completed without proper guidance and acknowledgement. This acknowledgement transcends the reality of formality when I would like to express my deep thanks and gratitude to all those people who helped me to transform an idea into reality.

This report bears the imprint of many persons, who have helped me in numerous ways in writing this report. I express my sincere thanks to who helped me in this project, which not only increased my awareness about the latest fields but also helped to increase my confidence level.

EXECUTIVE SUMMARY

Wealth Management provides discretionary wealth management service, in which wealth managers give recommendations to customers and invest according to customer discretion.

Apart from objectives, some of the points which are considered in this topic to make it more comprehensive are:1. Core Elements of Wealth Management Services 2. Key Challenge Areas. 3. Solution framework for wealth management.

S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Content Introduction Objectives and Scope Research Methodology Review of Literature Core Study Finding, Data & Analysis Conclusion Recommendations Limitation Bibliography

Page No.

Introduction:
What is Wealth?
Wealth usually refers to money and property or something which has economic value attached to it. It is the abundance of objects of value and also the state of having accumulated these objects. The use of the word itself assumes some socially-accepted means of identifying objects, land, or money as "belonging to" someone, i.e. a broadly accepted notion of property and a means of protection of that property that can be invoked with minimal (or, ideally, no) effort and expense on the part of the owner. Concepts of wealth vary among societies. Anthropology characterizes societies, in part, based on a society's concept of wealth, and the institutional structures and power used to protect this wealth. Several types are defined below. They can be viewed as an evolutionary progression. Industrialization emphasized the role of technology. Many jobs were automated. Machines replaced some workers while other workers became more specialized. Labour specialization became critical to economic success. However, physical capital, as it came to be known, consisting of both the natural capital (raw materials from nature) and the infrastructural capital (facilitating technology), became the focus of the analysis of wealth.

Introduction to wealth management:

The concept of wealth management refers to management of both the sources and the facets of various forms of both tangible and non-tangible wealth. India has become a highly potential market for wealth management because wealth managers, both domestic and international, are able to establish the beginnings of a market with few obstacles, relative to the other emerging markets. Where there are regulatory restrictions, these are less problematic than those in China or the Middle East. Wealth Management is an all inclusive set of strategies that aims to grow, manage, protect and distribute assets in a much planned systematic and integrated manner.

Objectives and Scope:

Objectives:
To study the concept of Wealth Management. To have a general notion on different asset classes available in financial market. To study the advantages of Wealth Management. To study the disadvantages of Wealth Management. To have a conceptualized view on wealth management services.

SCOPE:
Scope of study is to determine the Wealth Management. It tends to find out the effectiveness of Wealth Management in firms. Wealth Management is as import in business firm as blood in a human life. Each and every business concern should have adequate funds to meet out day-to-day expenses and to finance wealth. Proper wealth management of is necessary to maintain both tangible and non-tangible wealth.

The goal of wealth management is to manage the firms wealth in such a way that a satisfactory level of wealth maintained. It is the process of planning and controlling the level wealth of the firm.

RESEARCH METHODOLOGY
The present study is purely an exploratory study, dependent on both the primary and the Secondary sources of data. The primary sources of data constitutes formal and informal data of the research which are directly associated with the wealth management. The data selected on the method of simple random sampling. The relevant literature and facts and figures available on the problem of the study in various books, journals and magazines constitutes the Secondary sources of data.

Wealth Management An Emerging Sector

Wealth management services area in financial sector, hitherto used to be the preserve of some top multinational banks and financial firms- offering exclusive services to a select few, has been witnessing more attention during last couple of years. A booming economy, rising stock prices and an increase in income and spending power have brought sharp focus on this sector.

Core Elements of Wealth Management Services

In most basic sense, wealth management services involve fiduciary responsibilities in providing professional investment advice and investment management services to Institutions, funds.(Pension/mutual/Hedge), corporations, trusts as well as HNWIs. In the present context of our discussion, we would keep our focus limited to HNWIs.

Some of analogous terms used for wealth management could be considered as Portfolio Management, Investment Management and many times Fund Management or Asset Management. Depending on the mandate of the services given to the Wealth Manager, wealth management services could be packaged at various levels:

a) Advisory
Wealth mangers role is limited to the extent of providing guidance on investment / financial planning and tax advisory, based on client profile. Investment decisions are solely taken by the client, as per his/her own judgment.

b) Investment processing (transaction oriented)

Client engages wealth manager to execute specific transaction or set of transactions. Investment planning, decision and further management remain vested with the client.

c) Custody, Safekeeping and Asset Servicing

Client is responsible for investment planning, decision and execution. Wealth manager is entrusted with management, administration and oversight of investment process.

d) End-to-end Investment Lifecycle Management

Wealth manager owns the whole gamut of investment planning, decision, execution and management, on behalf of the client. He is mandated to make financial planning, implement investment decisions and manage the investment throughout its life.

Key Elements of Wealth Management Services

Financial Planning

Client Profiling Client profiling takes in account multitude of behavioural, demographic and investment characteristics of a client that would determine each clients wealth management requirements. Some of key characteristics to be evaluated for defining clients investment objective are: Current and future Income level Family and life events Risk appetite / tolerance Taxability status Investment horizon Asset Preference /restriction Cash flow expectations Religious belief (non investment in sin sector like - alcohol, tobacco, gambling firms) Behavioural History (Pattern of past investment decisions) Level of clients engagement in investment management (active / passive) Present investment holding and asset mix

Investment Objective

Based on the client profile, investment expectations and financial goals of the client could be clearly outlined. Defining investment objectives helps to identify investment options to be considered for evaluation. Investment objective for most of the investors could be generally considered amongst the following: Current Income Growth (Capital Appreciation) Tax Efficiency (Tax Harvesting) Capital Preservation (often preferred by elderly people to make sure they dont outlive their money.)

Portfolio Strategy Definition / Asset Allocation

Defining Portfolio Strategies and Portfolio Modelling

After establishing investment objectives, a broad framework for harnessing possible investment opportunities is formulated. This framework would factor for risk-return trade-off of considered options, investment horizon and provide a clear blueprint for investment direction.

Investment strategy helps in forming broad level envisioning of asset class (Securities, Forex, Commodity, Real State, Reference and Indices, Art/Antique and Lifestyle Assets (Car, Boat, Aircraft)), market, geography, sector and industry. Each of these asset classes is to be comprehensively evaluated for inclusion in portfolio model, in view of defined investment objectives.

While defining the strategy, consideration of client preference or avoidance for specific asset class, risk tolerance, religious beliefs is the key element, which would come into picture. Thus, for a client with a belief of avoidance of investment in sin industries (alcohol, tobacco, gambling etc.) is to be duly taken care of. Likewise, for a client looking for Sharia- compliant investment, strategy formulation should consider investment options meeting with the client expectations.

Determination of Portfolio Constituents and Allocation of Assets Guided with the investment strategy, constituents in portfolio model are determined, which would directly and efficiently contribute towards clients investment objectives. Thus, a broad level investment guidance of investment in fixed income in emerging market would further determine classification within Fixed Income such as Govt. or corporate bonds, fixed or variable rate bonds, Long or short maturity bonds, Deep discounted or Par bonds, Asset backed or other debt variants.

Return profile, risk sensitivity and co-relation of constituents within portfolio model would help to determine the size (weight age) of each individual constituent in the portfolio.

Strategy Implementation

Having decided the portfolio constituents and its composition, transactions to acquire specific instruments and identified asset class is initiated. As acquisition cost would be having bearing on overall performance of the portfolio, many times process of asset acquisition may be spread over a period of time to take care of market movement and acquire the asset at favourable price range.

Portfolio Management
Portfolio Administration Portfolio Administration involves handling of investment processes and asset servicing. This would also require tax management, portfolio accounting, fee administration, client reporting, document management and general administration relating with portfolio and client.

This function would involve back office administration and custodial services to manage transaction processes (trading and settlement) - interfacing with

brokers/dealers/agents, Fund managers, Custodians, Cash Agent and many other market intermediaries.

Performance Evaluation and Analytics Performance evaluation of the portfolio is an ongoing process. Portfolio return is continuously monitored and analyzed with respect to defined portfolio objectives. Analysis dimension could be varied simple and complex. These may include absolute return, relative return (in comparison to chosen benchmark), trend, pattern, cost impact, tax impact, concentration, lost opportunity and other form of sensitivity and what-if analysis.

Any deviation of portfolio performance observed during performance evaluation would lead to strategy review and any possible alignment of portfolio strategy.

Strategy Review and Alignment

Recalibration of Portfolio Strategy Based on performance evaluation and future outlook of the investment, portfolio strategy is evaluated on periodic basis. To keep it aligned with the defined

investment objectives, portfolio strategy is suitably re-calibrated from time to time. Many times, review of portfolio strategy would be necessitated due to change in client profile or expectations.

Rebalancing, Reallocation and Divestment of Assets Any re-calibration of strategy and consequent change in portfolio model would require rebalancing of the assets in portfolio. This would be achieved through rebalancing the asset (divesting over-allocated part and acquiring under allocated), relocation (from one sector the other or from one instrument to other instrument in the same class) or complete divestment.

Key Challenge Areas:

While immense business potentiality of this emerging sector is a driving point for most of the firms, they face many challenges in formulating winning services offering meeting the client needs. In the following section, we would briefly take a look on the key challenges area in the present context.

Highly Personalized and Customized Services:

Unlike other stream of financial services, mostly being transactional /commoditized in nature, wealth management services require client specific solution and service offering. No one solution exactly meets the needs of other client. In a situation of highly personalized and customized nature of service offering, developing any form of generic service model does not support growth of the business.

Personal relationship driving the business:

To meet client expectation of personal attention, mode of communication in wealth management services tends to be highly personalized. Thus, the conventional grids of communication, such as call centre, data centre does not fit well. Success of wealth management services heavily draws on personal interaction with the dedicated relationship

manager, who takes care of whole investment management lifecycle for bunch of clients on one-to-one basis. This essentially requires service firm to invest heavily in human processes to groom and retain a team on competent relationship managers with crossfunctional skills.

Evolving Client Profile:

The biggest challenge in providing wealth management service offering is to factor and reckon the evolving nature of client profile, in terms of investment objective, time horizon, risk appetite and so on.

Thus, a service model developed for a particular client cannot remain static over a period of time. Any service model has to be flexible enough to consider the dynamic nature of client profile and expectations arising out of it.

Client Involvement Level:

The conventional adage the more money you have, more effort is needed to manage it proves to be otherwise in case of HNWIs. Generally, client involvement in managing the finance remains on the lower side. This brings onus of managing the whole gamut of investment and due performance single-handedly on the shoulders of investment manager.

Passion Investment (Philanthropy and Social Responsibility):

In the recent years a trend has been observed that bulk of investments by HNWIs has been directed towards passion investments (art, antique, jewellery, coins, unique assets, luxury), philanthropy and social/community causes.

As per World Wealth report, 11% of HNW investors worldwide contributed to philanthropic causes with a contribution over 7% of their wealth in year 2006. Ultra-HNWIs contribution was even more - 17% of Ultra-HNW investors that gave to philanthropy contributed over 10% of their wealth. In total, this equates to more than US$285 billion globally.

Against this backdrop, new breed of HNWIs expect to strategically manage the wealth and personal resources allocated to philanthropy purpose, in order to maximize its impact. This demands a relationship manager not just to be a passive financial advisor rather a passionate partner sharing interest and inclination of the associated client.

Limited Leveraging Capabilities of Technology (as an enabler):

In the recent times, we have witnessed technology a key enabler to help business to expand its market reach with reduced cost of services offering. Online banking and online trading/brokerage services are the best examples in this regard. Technology leveraging has helped services firm to achieve universal proliferation of market with substantially reducing transaction cost.

As business rules and service definitions to guide the applications tends to be quite composite in wealth management services, leveraging the capabilities of technology to meet the business requirement may not be highly feasible in the initial years.

Technical Architecture and Technology Investment:

As business architecture is still evolving, a proven basis of resilient technical architecture and framework to support the emerging business greatly remains missing. In absence of this framework, any investment commitment towards application development / system implementation would be fraught with severe risk.

Intricate Knowledge of Cross-functional Domain:

By very nature of wealth management, it not just involves matters of plain vanilla finance but has intricate relationship with many elements of domestic / international law, taxation and regulatory norms. In order to provide sound investment guidance, a relationship manager is required to have intricate knowledge of domestic/cross-border finance, accounting, legal and taxation subjects.

Advantages and Disadvantages of Wealth Management:

Advantages of Wealth Management:

Wealth management is the process of managing an individual's financial, investment, tax, legal and estate planning. A comprehensive process manages more than just investments. It takes care of the financial planning of an individual for the entire life. They can handle your personal as well as business financial needs. Wealth management has several benefits and offers various services. Types of Services Offered (For Individuals):

Estate Planning - This would include all your estates and property. It includes assets planning projects, your estate from creditors and lawsuits. It also helps in saving taxes since an expert like Tyrone Jacques in this area offers the best advice.

Tax Planning - Tax planning is about minimizing your tax returns. An independent professional like Teresa M. Collo will design strategies to increase tax benefits and relief. They know how to plan charity and apply for tax exemptions. So, you will be able to support a cause and save some money in the form of taxes.

Investment Planning - These types of wealth management includes investments in diversified markets. Your money should not be blocked in one industry or market. A financial planner like Thomas a. Rothstein will create a diverse investment portfolio.

Insurance Planning - Insurance is a very crucial aspect of an individual. It is important to plan your insurance needs. An independent certified planner will evaluate your case and suggest the best possible insurance plans.

Retirement Planning - This is about assessing your future financial needs, i.e. how much money you would require during old age.

Wealth Transfer - Wealth management also helps you transfer your wealth to your legal heirs or other beneficiaries after your death. It includes tools like wills and trust. Apart from these services, you can also expect business planning, business succession planning and asset protections.

Benefits of Financial Planning: There are several advantages of financial planning. It helps in reducing income tax, estate tax and capital gains tax. It also enables you to multiply your assets and earn higher yields. It protects assets from liabilities, creditors, mortgages and much more.

Wealth management secures your principal assets and helps in increasing the rate of return on your assets and investments. Several tools are used for achieving this purpose. The tools are in the form of savings planner, education planner, time deposit calculator, etc. Financial planning was earlier limited to corporate world. It did not exist at an individual level. However, with awareness and need for a professional planner individuals too have chosen such services. It is beyond investment planning since it is a holistic approach for managing the financial life of an individual.

Protecting assets and preserving wealth Minimizing taxes Managing risk Managing cash flow Life insurance planning Coordinating estate distributions Managing family business succession planning Maintaining control over personal financial affairs Establishing leveraged funding strategies

Disadvantages of Wealth Management:

The big limitation of Wealth management is that they do not show their actual position to the customers. So, there may be chances of fraud and forgery with customers.

As we know that wealth management is now only related with the rich people and is not having any plans and solutions for poor, middle and lower class of people of society.

Thus wealth management reduces the scope of Management. Mostly customers do not know the actual position of market because everything is done by some Wealth management professional. So, that results in inflation and also

there may be chances that the customers are in risk but they are showing the false return etc.

Wealth Management Process:

We have designed our wealth management process with the client in mind. This is by no means an inflexible, mechanical assembly line but rather a consultative process and an approach, which puts the client centre-stage. Please learn more about our process following the links provided:

Wealth Management is a process - not a product or a one-time event. The Wealth Management Process provides a long-term strategy for your financial future. There is 8 Key Wealth Management Issues that clients are likely to face at some point. When these issues

will become priorities is not the same for every client, so it is incumbent upon a Wealth Management Advisor to take a disciplined and structured approach to helping a client to manage these issues. The Wealth Management Process includes the following phases:

Discovery and Data Gathering:

At the beginning of the process, it is important to sit down and discuss each client's unique values, priorities and goals. Barbara works with clients to complete the "Organizing Your Financial Future" questionnaire booklet and helps them to define their personal and financial goals, understand their timeframe for results, and their comfort with risk.

Analysis and Refine Strategy:

Once the Discovery and Data Gathering is complete, the results are reviewed and a Plan is designed to meet the individual client's goals and objectives. This step of the process includes such areas as analyzing assets, liabilities, cash flow, risk management, current investments and strategies related to tax issues.

Presentation:
All recommendations are presented to the client for review and approval. These recommendations address each client's individual goals and objectives. Extra care is taken to be sure that each client thoroughly understands the recommendations and alternatives so they can make informed decisions.

Implementation:
Implementation is key to what makes the Wealth Management Process work. At this point, a pro-active approach is taken to help clients meet their financial and life goals. During this step of the process, the implementation of the Plan finalized during the Presentation is thoroughly discussed. Communication:

The results of the implemented Wealth Management Plan are continually assessed to ensure each client's objectives are being met and Barbara is always available to update a Wealth Management Plan to suit a client's changing personal needs. A personal communication plan is tailored for each client that includes a schedule of review meetings, ongoing education and client events. A high level of access and communication is a Barbara Larson CPA service mark.

Advisory Approach:

Product Presentation Flow:

Mutual Fund Introduction:

What is Mutual fund?

A mutual fund is pool of money that is that is invested in various securities and professionally managed by an investment manager.

How does Mutual fund work?

Structure:

Benefits of Investing in Mutual funds:

Mutual Funds Regulation Investments regulated Expenses regulated Income regulated Operations regulated Advertising regulated

Other Benefits of Investing in Mutual Fund:

Professional Management Diversification of risks Opportunity to earn market related returns Ease of liquidity Transparency Flexibility of switching within schemes of the same fund house

Affordability: Investors individually may lack sufficient funds to invest in high grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

Wider choice of options depending upon the investment objective, risk profile and investment period Regulated by SEBI

Mutual fund classification:

By Structure

By Investment Objective
Mutual Funds can be broadly classified into

Growth/Equity Funds: These funds provide capital appreciation over the medium to long term. Such schemes normally invest a majority of their corpus in equities Income Funds: These fund provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.

Balanced Funds: The aim of balanced funds is to provide both growth and regular income. Money Market Funds: These funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term

instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money

Index Funds: These funds are generally index funds whose portfolio composition is a replica of the benchmark index selected by the fund house.

Sector Funds: Sector funds invest in shares of companies which are a part of a particular Industry

Equity Linked Savings Scheme: Investors have been given tax concessions (in terms of deductions under Section 80C) in these schemes to encourage them to invest in equity markets. According to the provisions of ELSS notifications, these funds have a lock in period of 3 years and a specific Asset Allocation Pattern.

Equity Funds:

Invest a major proportion of their corpus in equity shares issued by companies, acquired directly in IPOs or through the secondary market Index Funds are passive funds with the objective to invest in securities of companies from a stated index that the fund proposes to track ELSS Funds are schemes that entitle the investor to claim an income tax rebate with a lock in period before which funds cannot be withdrawn Sector Funds are schemes that invest only in one industry or sector of the market such as IT, Pharma, FMCG etc.

Hybrid Funds (Balanced and/Monthly Income Plans):

Invest in a mix of different class of securities, from both equity and debt, seeking to provide a combination of capital appreciation and income for investors. Monthly Income Plans are funds that invest 0 30% of the portfolio into Equitys & Equity Related Instruments, the rest being invested in Debt Balanced Funds are funds that seek to strike a balance between capital appreciation and steady income, such funds, such funds usually have exposures in equity ranging from 40% upwards

Floating Rate Funds:

Investment vehicle to hedge investors from fluctuating interest rates. Invest in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns, and also fixed rate instruments and money market instruments. Invest typically 65-100% of their investible corpus in floating rate and related instruments as stated in their offer document.

Offshore Funds:

Funds raised abroad and invested in India through an Indian AMC Exchange Traded Funds (ETFs): Baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock. The funds rely on an arbitrage mechanism to keep the prices at which they trade roughly in line with the net asset values of their underlying portfolios.

Arbitrage Funds:

Seek to capitalise on the difference between the prices in the cash and the derivative segment of the market Buy into equal but opposite positions in both spot and future markets, thereby resulting in an interest differential on account of convergence of spot and future prices on expiry

Asset Allocation Funds / Dynamic Funds: Funds with flexibility to invest in equity and debt markets as per the asset allocation predetermined within certain parameters

Fund of Funds:

Invest in other mutual funds Benefit of diversification across Asset management companies (AMCs)

Liquid Funds:

Invest in securities of a short term nature which are generally of a maturity less than one year

Short Term Income Funds:

Seek to generate steady income with low risk & high level of liquidity from a portfolio that includes money market securities & debt

Structured Funds:

Capital Protected Funds structured with an aim to provide protection of capital to investors Split Capital Funds are closed end funds with more than one class of shares, each class having separate portfolios Mostly in the nature of Balanced Funds

Gold ETFs:

Exchange Traded Mutual Fund (ETF) Unit listed and traded on a stock exchange. Gold is the underlying asset for the units of that fund. Every Gold ETF Unit represents a definite quantum of pure gold and the traded price of that Gold Unit moves in tandem with the price of the actual gold metal as is traded in any big gold merchant or in any metal exchange.

Real Estate Funds:

Invest in real estate directly or fund / lend to real estate developers or buy shares / securitized assets of housing finance companies May also make money from rentals on property owned by them

Income Funds:

Invests in corporate debt and government securities. Fixed Maturity Plans (FMPs) are essentially closeended schemes which aim to provide investors with an expected return within a short period

Gilt Funds: Invests in Government securities with a medium to long term maturity

Data analysis & interpretation:

What is the state of the wealth management industry?

The wealth and disposable income are growing substantially. We are also noticing that for the first time the ability to earn and save are slightly different. Earlier you just put away your money in some guaranteed products. Today, when even the government is withdrawing from those products (it recently stopped the maturity bonus on post-office savings), investors, whether they be doctors, architects or anyone else, need professional help.

Is wealth management only for the wealthy?

Enormous wealth but a massive 71 percent felt that it is for everybody. The person who is earning Rs 30,000 per month also needs this advice. For instance, if there is a 25-year-old guy who earns this sum, his first priority is to buy a house for, say, around Rs 20 lakh. He has to now protect this property from, say, flood, cyclone or other natural disasters. You have building insurance that doesn't cost more than Rs 800-1,000. Only 6 percent responded in terms of do not know/ cannot say.

What are the emerging trends in wealth management in India? Real estate and private equity are increasingly becoming important asset classes for high net worth individuals (HNIs). The demand for realty is on a high growth path on account of

the burgeoning economy. While a few realty funds have been launched, the agencies believe that retail investors have been left out as only HNIs and institutional players have the capacity to participate in these. However, equity participation will be ensured by the introduction of real estate mutual funds, which are fairly common in developed countries.

Is the client base expanding? Is it becoming more expensive for people to mandate a private wealth manager?

India is becoming an increasingly attractive market for many industries - wealth management is no exception. There is a promising onshore wealth management services sector here. Driving the development has been the country's exceptional economic performance over the last decade. The booming economy has led to innumerable opportunities and pushed individual wealth growth. According to one estimate, India has seen about 19 per cent growth in HNI population in 2005 vis--vis the world growth rate of 6.5 per cent. The fee structure here is yet to be developed and is currently accrued from brokerage fees and commissions on the services rendered.

How can a wealth manager create a difference in prevailing market conditions? Wealth management is a highly specialized service, covering all asset classes. Asset allocation helps determine an optimal mix of asset classes, ranging from equity, debt and real estate to alternatives. The latter may include `investments of passion' - even fine art and collectables - as well as structured products and hedge funds. Clients' life goals, time horizon and risk tolerance are three vital factors on this front. What are the benefits of s systematic investment plan?

A systematic investment plan (SIP) offers 2 major benefits to an investor. It avoids lump sum investment at one point of time In a scenario of falling prices, it reduces your overall cost of acquisition by a process of rupee-cost averaging. This means that at lower prices you end up getting more units for the same investment

Conclusion:
Wealth managers are beginning to investigate innovative segmentation methods to manage the changing client profile. Over the next 20 years wealth managers will hone their segmentation methods. Wealth managers will develop segmentation as a service efficiency initiative. Segmentation models will apply holistic criteria to wealth management. The most important segments globally will be entrepreneurs and SMES/ CEOs. Financial advisers will become an important separate client segment for wealth managers The organization of direct client ownership will also change Availability and flexibility will become vital components of the business model Internal restructuring will aim to integrate client services. The rise of the mass affluent represents an opportunity for wealth managers in the medium term Wealth managers will capture the higher value mass affluent market by offering a scaled down wealth management service. The mass affluent proposition will run along the lines of the current wealth management service. Liability management is currently not part of the wealth management agenda but has proven potential. Clients in developed markets are seeking more holistic wealth management services Liability management is clearly a profitable area with a proven existing client base. The incorporation of lending into wealth management will shift the focus of the service. Specialist forms of lending will also become common additions to the offerings of many wealth managers. Some will fail due to a persistence of the asset focused service model and a lack of commitment. There are significant benefits in the area of liability management for the wealthy, and that the importance of liability management as part of wealth management will inevitably grow over the next 20 years, until it becomes a key service area. Rising income and wealth inequalities, if not matched by a corresponding rise of incomes across the nation, can lead to social unrest. An area of great concern is the level of ostentatious expenditure on weddings and other family events. Such vulgarity insults the poverty of the less privileged, it is socially wasteful and it plants the seeds of resentment in the minds of the have-nots.

Limitations:

Every research has its own positive and negative points. Many a times everything that a researcher wants to find out throught the research project is not done due to various limitations. The following are the limitations of this research project: Time constraint As we have use secondary data so reliability of data is not confirm As our topic is current appropriate data will not be available on our issue

Bibliography:
Websites:
www.wikipedia.com www.moneycontrol.com

Journals:

NCFM module on Mutual Funds. Journal of the ICFAI, on investments, 2010.

Books:

Prasanna Chandra, Investment Analysis and Portfolio Management, TATA McGraw Hill, New Delhi, 3nd edition 2010 Brigham & Houston, Fundamentals of Financial Management, Cengage Learning, 10th edition

Cooper Schindler, Business Research Methods.