Comparative Analysis of Various Alternative of Wealth Management

Alkesh Dinesh Mody Institute for Financial and Management Studies
Project Report On
“Comparative Analysis of Various Alternative Available in Market for

Wealth Management”
A Study Done For
Bank of Baroda
Submitted By,
Omkar Krishnakant Rasal
S.Y.MMS (Finance)
Roll No. 37
MMS Programme for The Year 2017-2019
For the Period
2nd May, 2018 to 30th June, 2018

PROJECT COMPLETION CERTIFICATE
___________________ ___________________
Dr. Smita Shukla Examiner’s Signature
Director
DECLARATION
I, Mr. Omkar Krishnakant Rasal, student of the course, Master in Management

Studies at Alkesh Dinesh Mody Institute for Financial and Management Studies
Mumbai hereby declare that this project report titled “Comparative Analysis of
Various Alternative Available in Market for Wealth Management” is my
own original work, not plagiarized and that all sources that I have consulted have
been duly acknowledged.
Date: Signature:
Place: Mumbai Name: Omkar Krishnakant Rasal
CERTIFICATE OF APPROVAL
This is to certify that the project titled “Comparative Analysis of Various
Alternative Available in Market for Wealth Management” as a part of the
curriculum of Master of Management Studies, submitted by Mr. Omkar
Krishnakant Rasal, student of Alkesh Dinesh Mody Institute for Financial and
Management Studies has been approved.
---------------------------- --------------------------
Dr. Aruna Deshpande Dr. Smita Shukla
MMS Coordinator Director
---------------------
Examiner
ACKNOWLEDGEMENT
It is a matter of great satisfaction and pleasure to present this report on Comparative

Analysis of Various Alternatives Available in the Market for Wealth Management,
with special focus on Bank of Baroda. I would like to take this opportunity to thank all
those involved in my summer training.
This project would not have been complete without the constant support and guidance of
my mentor Mr. Rajesh Kumar, Senior Branch Manager, Jacob Circle Branch, Bank of
Baroda. I am thankful for their help, practical insights and encouragement at every step of
my summer training. I would also like to express my sincere gratitude to the entire staff at
the Jacob Circle Branch of Bank of Baroda, for patiently answering my queries and helping
me throughout.
I would like to thank our institute director Dr. Smita Shukla and our placement officer
Mrs. Kavita Mishra for giving an opportunity to work on the project. Last but not the least
I would like to thank the teaching staff at Alkesh Dinesh Mody Institute for Financial and
Management Studies for making me capable enough to undertake this project
independently and for broadening my horizons. I would like to extend my gratitude to
everyone wo has ever been remotely associated with me.
EXECUTIVE SUMMARY
Bank of Baroda Wealth Management provides discretionary wealth management service,
in which wealth managers give recommendations to customers and invest according to
customer discretion. Bank of Baroda is one of the major banks of India offering wealth
management services. Bank of Baroda offers guidance and services to perspective investors
and offers products and services through which they can maximize their wealth. It offers
services suited to the needs of different class of customers, as have been discussed in detail
later in the report.
In the Beginning the report talks about Bank of Baroda in brief followed by its overall
financial status. After this the report talks about wealth management, its process and
services offered by the wealth management company in general. Further it has information
of alternative of wealth management and has discussed in brief
In the following chapter it has discussed related to what Bank of Baroda Wealth
Management offers to its customers and has been discussed in brief. Further it has discussed
who all are competitor of Bank of Baroda and what product they offer and what is their
asset size
In the end, I speak about conclusion and recommendations.

TABLE OF CONTENT
Sr. No Topic Page No

Company Profile
• Board of Directors
1. 1
• Balance Sheet
• Profit and Loss
2. Introduction 5
Functional Area of Wealth Management
• Financial Planning
3. • Portfolio Strategy /Asset Allocation 7
• Determines of Portfolio Constituents
• Strategy Implementation
Wealth Management Process
• Discovery & Insights
• Asset Allocation
4. • Structural Analysis 9
• Asset Location
• Implementation
• Active Management
Wealth Management Services
• Investment Planning
• Insurance Planning
5. 11
• Retirement Planning
• Tax Planning
• Estate Planning
Different Alternatives in The Market for Wealth Management
• Money Market Fund
6. • Certificate of Deposit 16
• Bonds
• Equity (Stocks)
• Exchange Traded Funds
• Structure Products
• Hedge Funds
• Fixed Deposit
• Mutual Funds
• Insurance
Bank of Baroda Wealth Management
• General Insurance
7. • Life Insurance 30
• Mutual Funds
• Baroda E-Trade
Competitive Player of Wealth Management and Their Product
• ICICI Prudential Asset Management Company
• Reliance Nippon Asset Management Company
• HDFC Asset Management Company
8. • Kotak Mahindra Asset Management 39
• BNP Paribas Asset Management Company Limited
• Axis Asset Management Company
• Motilal Oswal Asset Management Company
• Edelweiss Asset Management Limited
9. Conclusion 48
10. Recommendation 49
11. Bibliography 50
COMPANY PROFILE
Bank of Baroda is one of the leading commercial banks in India. The Banks solutions
includes personal banking, which includes deposits, gen-next services, retail loans, credit
cards, debit cards, services and lockers; business banking, which includes deposits, loans
and advances, services and lockers; corporate banking, which includes wholesale banking,
deposits, loans and advances and services, and international business, which includes non-
resident Indian (NRI) services, foreign currency credits, ECB, offshore banking, export
finance, import finance, correspondent banking, trade finance and international treasury.
The Bank offers services, such as domestic operations and Forex operations. They also
offer rural banking services, which include deposits, priority sector advances, remittance,
collection services, pension and lockers. They also offer fee-based services such as cash
management and remittance services. The Bank is having their head office located at
Baroda and their corporate office is located at Mumbai.
Bank of Baroda is one of India’s largest banks with a strong domestic presence spanning
5,458 branches and 10,027 ATMs and Cash Recyclers supported by self-service channels.
The bank has a significant international presence with a network of 105 branches/offices
subsidiaries, spanning 23 countries. The bank has wholly owned subsidiaries including
BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets.
Bank of Baroda also has a joint venture for life insurance business with India First Life
Insurance. The bank owns 98.57% in The Nainital Bank. The bank has also sponsored three
Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan
Gramin Bank and Baroda Gujarat Gramin Bank.
Bank of Baroda was incorporated on July 20, 1908 as a as a private bank with the name
The Bank of Baroda Ltd. The Bank was established with a paid-up capital of Rs 1 million
and was founded by Maharaja Sayajirao III of Baroda. In the year 1910, the Bank opened
their first branch in the city of Ahmedabad. In the year 1919, they opened their first branch
in Mumbai City. In the year 1953, the Bank opened first international branch at Mombasa,
Kenya.
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BOARD OF DIRECTORS
Mr. P. S. Jayakumar, 56 years is a Chartered Accountant by

qualification and additionally holds a Post Graduate Diploma
in Business Management from XLRI Jamshedpur. He also
has the distinction of being a Chevening Gurukul Scholar
through the London School of Economics and Political
Science.
Shri Mayank K. Mehta assumed the charge as Executive

Director of Bank of Baroda on 22nd January, 2016. Prior to
his elevation as Executive Director of Bank of Baroda, he was
General Manager and Chief Financial Officer (CFO) at Union
Bank of India.
Smt. Sengupta is a Science Graduate, with additional

qualification of CFA and CAIIB. She joined SBBJ in 1983 as
Probationary Officer and has handled responsibilities in
several offices of SBBJ, SBI and SBP.
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Balance Sheet
Particular 2017-18 2016-17 2015-16

Equities and Liabilities
Shareholder's Funds
Equity Share Capital 530.36 462.09 462.09
Total Share Capital 530.36 462.09 462.09
Reserves and Surplus 42,864.41 39,841.16 39,736.89
Total Reserves and Surplus 42,864.41 39,841.16 39,736.89
Total Shareholders’ Funds 43,394.77 40,303.25 40,198.99
Deposits 591,314.82 601,675.17 574,037.87
Borrowings 62,571.97 30,611.44 33,471.70
Other Liabilities and Provisions 22,718.21 22,285.56 23,667.92
Total Capital and Liabilities 719,999.77 694,875.42 671,376.48
Assets
Cash and Balances with Reserve Bank
22,699.64 22,780.21 21,672.42
of India
Balances with Banks Money at Call and
70,197.74 127,689.70 112,227.93
Short Notice
Investments 163,184.53 129,630.54 120,450.52
Advances 427,431.83 383,259.22 383,770.18
Fixed Assets 5,367.39 5,758.37 6,253.78
Other Assets 31,118.64 25,757.37 27,001.65
Total Assets 719,999.77 694,875.42 671,376.48
Contingent Liabilities,
Commitments
Bills for Collection 45,779.69 37,599.42 32,343.74
Contingent Liabilities 298,226.66 252,518.96 228,977.16
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Profit and Loss
Particular 2017-18 2016-17 2015-16

INCOME
Interest / Discount on Advances / Bills 29,069.82 27,523.93 29,796.23
Income from Investments 10,420.16 10,596.33 10,673.22
Interest on Balance with RBI and Other
2,414.79 1,990.86 1,305.92
Inter-Bank funds
Others 1,743.77 2,088.81 2,285.90
Total Interest Earned 43,648.54 42,199.93 44,061.28
Other Income 6,657.15 6,758.06 4,998.86
Total Income 50,305.69 48,957.99 49,060.14
EXPENDITURE
Interest Expended 28,126.77 28,686.52 31,321.43
Payments to and Provisions for Employees 4,606.87 4,637.77 4,978.03
Depreciation 863.08 511.35 501.33
Operating Expenses (excludes Employee
4,703.42 4,147.28 3,443.78
Cost & Depreciation)
Total Operating Expenses 10,173.37 9,296.40 8,923.14
Provision Towards Income Tax 1,664.24 1,089.56 1,769.84
Provision Towards Deferred Tax -2,023.17 0 -3,072.38
Other Provisions and Contingencies 14,796.30 8,502.37 15,513.65
Total Provisions and Contingencies 14,437.37 9,591.93 14,211.11
Total Expenditure 52,737.51 47,574.85 54,455.68
Net Profit / Loss for The Year -2,431.81 1,383.14 -5,395.54
Net Profit / Loss After EI & Prior Year
-2,431.81 1,383.14 -5,395.54
Items
Total Profit / Loss available for
-2,431.81 1,383.14 -5,395.54
Appropriations
APPROPRIATIONS
Transfer To / From Statutory Reserve 0 345.78 0
Transfer To / From Special Reserve 0 350.92 0
Transfer To / From Capital Reserve 0 353.65 0
Transfer To / From General Reserve 0 0 -5,395.54
Transfer To / From Investment Reserve 0 0 0
Transfer To / From Revenue and Other
-2,431.81 0 0
Reserves
Equity Share Dividend 0 332.79 0
Tax on Dividend 0 0 0
Total Appropriations -2,431.81 1,383.14 -5,395.54
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INTRODUCTION
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. Wealth
management is an investment advisory service for high net worth individuals. It is provided
by financial institutions to help individuals protect and grow their wealth. This advanced
investment advisory discipline involves providing a diverse range of services, such as
financial planning, investment management, tax and cash flow and debt management,
based on client requirements.
There are two aspects to the wealth management process:
• Protecting assets from creditors, market crashes or slowdowns, taxes, lawsuits and
other unexpected events,
• Growing asset values through methods that actively manage risk and reward profiles
to client’s needs.
Wealth management is a high-level professional service that combines financial/investment

advice, accounting/tax services, retirement planning and legal/estate planning for one fee.
Clients work with a single wealth manager who coordinates input from financial experts
and can include coordinating advice from the client's own attorney, accountants and
insurance agent. Some wealth managers also provide banking services or advice on
philanthropic activities.
BREAKING DOWN 'Wealth Management'
In general, wealth management is more than just investment advice, as it can encompass
all parts of a person's financial life. The idea is that rather than trying to make sense of
advice from a series of professionals, high net worth individuals benefit from a holistic
approach in which a single manager coordinates all the services needed to manage their
money and plan for their own and/or their family's current and future needs.
The wealth manager starts by developing a plan that will maintain and increase the client's
wealth based on that individual's financial situation, goals and comfort level with risk. After
the original plan is developed, the manager meets regularly with clients to update goals,
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review and rebalance the financial portfolio, investigate whether additional services are
needed and ideally, follow clients throughout their life.
Wealth managers are often part of a wealth-management firm, with access to a team of in-
house experts and services but may also be solo practitioners who rely on their own network
of independent experts.
The client segmentation is as follows in six categories:
• Ultra-high net worth, or Ultra-High Net Worth (in excess of US$30 million)
• Super high net worth (between US$10 and $30 million)
• High net worth (between US$1 million and $10 million)
• Super affluent (between US$125,000 and $1 million
• Mass affluent (between US$25,000 and $125,000)
• Mass market (between US$5,000 and $25,000)
Currently in India there are majorly four types of wealth management service providers viz.
Banks, Brokerage firms, Boutique advisory firms and Individual advisors.
Banks – Banks are known to have larger investment distribution model which means that
they do not concentrate on only one investment options but on a large investment portfolio.
Further they cater also to mid-level segment clients apart from the High Net Worth
Individuals
Brokerage Firms – Brokerage firms focus on investing the customer’s money majorly in
shares and IPO which are equity market products.
Boutique advisory firms – Boutique advisory firms are known to provide customized
financial solutions to the clients which are majorly the ultra-High Net Worth Individuals
(greater than USD 30 million) and High Net Worth Individuals (USD 1 million to 30
million)
Individual Advisors – An upcoming segment providing advisory and investment services

to small time investors and individuals with a relatively lower net worth.
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FUNCTIONAL AREAS OF WEALTH MANAGEMENT
• Financial Planning
• Portfolio Strategy Definition/ Asset Allocation/ Strategy Implementation
• Portfolio Management - Administration, Performance Evaluation and Analytics
• Strategy Review and Modification
Financial Planning
Client profiling takes in account multitude of behavioral, demographic and investment

characteristics of a client that would determine each client's wealth management
requirements. Some of key characteristics to be evaluated for defining client's 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, or compliant with Sharia laws)
• Behavioral History (Pattern of past investment decisions)
• Level of client's engagement in investment management (active / passive)
• Present investment holding and asset mix
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)
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• Capital Preservation (often preferred by elderly people to make sure they don't
outlive their money.)
Portfolio Strategy Definition / Asset Allocation
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 Estate, 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 client's 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, or other debt variants.
Return profile, risk sensitivity and co-relation of constituents within portfolio model would
help to determine the size (weightage) 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 have
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 favorable price range.
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WEALTH MANAGEMENT PROCESS
Wealth management involves various steps. It involves preparation of financial plan that
help the client to achieve their goals and objectives. Financial Planning is a process. If the
process is strictly followed, the chances of meeting your objectives and achieving financial
independence will be considerably improved.
1. Discovery & Insights-
Creating an effective wealth management plan starts with

asking the right questions: delving deeply into objectives,
risk tolerance, liquidity and credit needs, family and estate
issues and service preferences. The wealth manager works
closely together and defines the client’s ultimate
objectives, both for lifestyle and wealth transfer, and
confirm expectations, thus establishing a solid foundation
for a management plan.
2. Asset Allocation-
Guided by the client’s circumstances, goals and comfort level with investment risk, the
wealth manager explores the appropriate mix of asset classes. They further identify the
diversification between each asset class, showing how variations to the allocation might
impact risk exposure or return expectations. The client and the manager then agree together
on the most appropriate strategy.
3. Structural Analysis-
The wealth manager analyses each entity within the client’s portfolio, including trusts and
credit facilities, as well as special situations such as business interests, concentrated stock
positions or executive compensation. This enables the manager to quantify the impact and
opportunities of the current holdings and recommend appropriate strategies to address any
gaps or issues from every vantage point. In doing so, he/she is able to identify important
implications of each element, such as potential tax ramifications, liquidity considerations
or other issues.
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4. Asset Location-
Building from the extensive analysis, the wealth manager apportions asset classes to the
appropriate entities to fully realize after-tax performance potential. By identifying each
entity's optimal after-tax contribution within the overall portfolio, the manager helps
construct the most efficient strategy, then submits it to the client for review and approval.
5. Implementation-
The wealth manager documents the plan's details in an investment policy statement,
ensuring a common understanding and consistent execution. He/she also reviews
communication and service plans with the client, aligning them with requirements before
implementing the strategy.
6. Active Management-
Having a well-executed plan in place is only the beginning. The way it responds and adapts
to the ever-changing market and client’s dynamic needs is where its true value lies. The
portfolio manager therefore actively manages your portfolio, making investment decisions
across and within asset classes, rebalancing positions to ensure alignment to the strategy in
all market cycles, identifying opportunities to harvest gains and losses to maximize total
after-tax performance, identifying potential strategy implications of regulatory or tax policy
changes, and regularly revisiting the goals, requirements and personal circumstances. By
remaining engaged with the client and client’s advisors, the wealth manager can proactively
address the evolving needs and recommend new ideas to add value.
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WEALTH MANAGEMENT SERVICES
Wealth management offers the following services:
• Investment planning assists a person in investing his/her money into various

investment markets, keeping in mind his/her investment goals.
• Insurance planning assists a person in selecting from various types of insurances,
self-insurance options and captive insurance companies.
• Retirement planning is critical to understand how much funds a person require in
his/her old age.
• Tax planning helps in minimizing tax returns. This might include planning for
charity, supporting his/her favourite causes while also receiving tax benefits.
• Estate planning helps in protecting a person and his/her estate from creditors,
lawsuits and taxes. This service is critical for every person whose net worth is high.
• Business planning: This service aims at optimizing the tax-free advantages of
running his/her own business.
Investment Planning
Everyone needs to save for a rainy day. Once a person has saved enough to take care of
emergencies, a person should start thinking about investing and to make his/her money
grow. A person should plan his/her investments so that a person can reap adequate benefits
and achieve his/her financial goals.
Investment Planning Process includes:
• Risk Profiling
• Asset Allocation and Portfolio Construction
• Creation and Accumulation of Wealth through Systematic Investment Plans (SIP)
• Regular review of progress and Portfolio Rebalancing
Essentially, Investment Planning involves identifying his/her financial goals throughout

his/her life and prioritizing them. Investment Planning is important because it helps a
person to derive the maximum benefit from his/her investments. His/her success as an
investor depends upon his/her ability to choose the right investment options. This, in turn,
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depends on his/her requirements, needs and goals. For most investors, however, the three
prime criteria of evaluating any investment option are liquidity, safety and return.
Investment Planning also helps a person to decide upon the right investment strategy.
Besides his/her individual requirement, his/her investment strategy would also depend
upon his/her age, personal circumstances and his/her risk appetite. These aspects are
typically taken care of during investment planning.
Investment Planning also helps a person to strike a balance between risk and returns. By
prudent planning, it is possible to arrive at an optimal mix of risk and returns, that suits
his/her particular needs and requirements.
Insurance Planning
"Insurance is not for the person who passes away, it is for those who survive”, goes a
popular saying that explains the importance of Insurance Planning.
It is extremely important that every person, especially the breadwinner, covers the risks to
his life, so that his family's quality of life does not undergo any drastic change in case of
an unfortunate eventuality. Insurance Planning is concerned with ensuring adequate
coverage against insurable risks. Calculating the right level of risk cover is a specialized
activity, requiring considerable expertise. Proper Insurance Planning can help a person look
at the possibility of getting a wider coverage for the same amount of premium or the same
level of coverage for the same amount of premium or the same level of coverage for a
reduced premium. Hence, there is a need for proper insurance planning.
So, what are the risks that we run? To name a few - the risk on our lives that is, the worries
of replacement of the incomes that we contribute to the running of the household), the risks
of medical contingencies (since they have the capability of depleting our wealth
considerably) and risks to assets (since the replacement of these can have tremendous
financial implications). If we can imagine a situation where our goals are disturbed by acts
beyond our control, we can realize the relevance of insurance in our lives.
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Retirement Planning
Retirement planning is the important task of deciding how a person will live once he/she
retires. Retirement planning involves the consideration of a number of factors, including at
what age a person hopes to retire, how much money a person will need to cover living
expenses coupled with the things a person plans to do once retired, and where his/her
money will come from.
Each person's situation is unique, and therefore, retirement planning isn't one standard plan
for every person. Saving money for retirement through one or all of the available retirement
planning options is the first place to start. Many employers have retirement planning
options available to their employees. Some companies have pension plans, even without
company
sponsored plans, retirement planning is possible for any individual who wisely invests his
or her money. A person can choose to talk to a financial planner. Another option is to
discuss investment and savings options with the bank where a person currently has his/her
checking or savings account. Many banks offer free advice to their account holders hoping
to gain more of their business through long-term savings.
Retirement planning involves more than just saving money. It's important to determine as
closely as possible what his/her potential expenses and compare them to his/her potential
income. For instance, if a person will be able to pay his/her mortgage off before retiring,
that is one less expense a person will need to cover.
Depending on what age a person hopes to be when a person retires, retirement planning
should also involve tax planning. By doing a little research and talking to financial
professionals, a person should be able to come up with a savings and investment plan that
works for a person. A person can begin retirement planning at any stage in life, though
earlier is better.
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Tax Planning
Tax planning is a broad term that is used to describe the processes utilized by individuals
and businesses to pay the taxes due to local, state, and Central tax agencies. The process
includes such elements as managing tax implications, understanding what type of expenses
tax deductible under current regulations are, and in general planning for taxes in a manner
that ensures the amount of tax due will be paid in a timely manner.
One of the main focuses of tax planning is to apply current tax laws to the revenue that is
received during a given tax period. The revenue may come from any revenue producing
mechanism that is currently in operation for the entity concerned. For individuals, this can
mean income sources such as interest accrued on bank accounts, salaries, wages and tips,
bonuses, investment profits, and other sources of income as currently defined by law.
Businesses will consider revenue generated from sales to customers, stock and bond issues,
interest bearing bank accounts, and any other income source that is currently considered
taxable by the appropriate tax agencies.
There are three common approaches to tax planning for the purpose of minimizing the tax
burden. The first is to reduce the adjusted gross income for the tax period. This is where
understanding current tax laws as they relate to allowances and exemptions come into play.
A second approach to tax planning is to increase the number of tax deduction options
available to us. Again, this means knowing current laws and applying them when
appropriate to all usual and normal expenses associated with the household or the business.
Since these can change from one annual period to the next, it is always a good idea to check
current regulations.
One final approach that may be applicable to effective tax planning has to do with the use
of retirement savings plans, donations to religious institutions, donations to relief funds,
college expenses, adopting children, and several other.
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Estate Planning
Whether or not it's something we want to think about, it's important to set our affairs in
order so our loved ones won't be burdened with too many details in the event of our passing.
Estate planning is important because it ensures our assets will be transferred smoothly and
effortlessly when we're longer here to oversee them.
Estate planning includes, among other things, writing out one's Last Will and Testament,
naming a Power of Attorney and installing trusts. Estate planning isn't only for the wealthy,
either. Anyone with assets would be wise to look into it. If a person has a home, a car, a
retirement fund, stocks, bonds, or any other investments, it would be in the best interests of
his/her family for a person to meet with an estate planning professional.
The benefits of estate planning are many. The first and most important is that a person get
to designate where, or to whom, his/her assets will go. To not do so means his/her relatives
may end up fighting over everything in court.
Estate planning will allow the money to flourish even after a person is gone. A person will
be able to set up accounts and trusts for children and grandchildren which allow money to
grow. A person will be able to specify at what age the children will be allowed access to
these funds.
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DIFFERENT ALTERNATIVES IN THE MARKET FOR WEALTH
MANAGEMENT
1. Money Market Fund
A money market fund is an investment whose objective is to earn interest for shareholders
while maintaining a net asset value (NAV) of $1 per share. A money market fund’s
portfolio is comprised of short-term, or less than one year, securities representing high-
quality, liquid debt and monetary instruments. Investors can purchase shares of money
market funds through mutual funds, brokerage firms and banks. The money market in India
is considered to be an agglomeration of multiple sub markets each featuring a different
instrument that can differ based on maturity interval, risk level, etc. The following are some
key money market instruments available in India:
Call Money
Traded in a sub-market termed as the call money market, call money essentially represents
a short-term loan with maturities ranging from 1 day to 14 days and is repayable on demand.
The main uses of this instrument include providing short term loans to banks primarily for
the purpose of making stock exchange transactions and bullion deals.
Treasury Bills
Treasury Bills are by far the oldest of money market instruments and they are still used
heavily not just in Indian money markets but also the world over. Treasury Bills or T-Bills
in India are short term borrowing instruments issued by the Government of India that do
not pay any interest but are available at a discount from their face value at the time of issue.
Ready Forward Contract (Repo)
The term repo is derived from the phrase “repurchase agreement” which essentially is an
agreement that simultaneously mentions sale and purchase of an asset. In the Indian
context, repo agreements are made between banks as well as between a bank and the RBI
for short term loans.
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Money Market Mutual Funds
This is actually an alternate term for liquid funds, which are in fact debt funds featuring the
lowest possible risk. Because the money market is largely over the counter and mainly
features block deals, it is largely closed off to the general public and this is where liquid
funds fill the gap.
Interest Rate Swaps
This is the newest money market instruments in use in India today. Interest rate swap is a
financial transaction in which two parties sign a deal in which one pays a fixed rate of
interest, while the other pays a floating rate of interest. The fixed rate of interest payable is
calculated using a notional principal amount, while the floating rate of interest is paid on
the actual principal lent out/borrowed with the rate varying on the basis of market
conditions.
2. Certificate of Deposit
A Certificate of Deposit (CD) is a savings certificate with a fixed maturity date, specified
fixed interest rate and can be issued in any denomination aside from minimum investment
requirements. A CD restricts access to the funds until the maturity date of the investment.
CDs are generally issued by commercial banks and are insured by the FDIC up to $250,000
per individual.
Minimum size and maturity of a Certificate of Deposit
A certificate of deposit can only be issued for a minimum of Rs.1 lakh by a single issuer
and in multiples of Rs.1 lakh. The maturity of a certificate of deposit depends on the
investor. For instance, for a certificate of deposit issued by banks, the maturity period is
not less than 7 days and not above one year while for financial institutions, a certificate of
deposit should not be issued for less than 1 year and not above three years.
Page | 17
3. Bonds
A bond is a fixed income investment in which an investor loans money to an entity

(typically corporate or governmental) which borrows the funds for a defined period of time
at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and
sovereign governments to raise money and finance a variety of projects and activities.
Owners of bonds are debtholders, or creditors, of the issuer.
Characteristics of Bonds
• Face value is the money amount the bond will be worth at its maturity and is also
the reference amount the bond issuer uses when calculating interest payments.
• Coupon rate is the rate of interest the bond issuer will pay on the face value of the
bond, expressed as a percentage.
• Coupon dates are the dates on which the bond issuer will make interest payments.
Typical intervals are annual or semi-annual coupon payments.
• Maturity date is the date on which the bond will mature and the bond issuer will pay
the bond holder the face value of the bond.
• Issue price is the price at which the bond issuer originally sells the bonds.
Bond Issuers
• Corporate bonds are issued by companies.

• Municipal bonds are issued by states and municipalities. Municipal bonds can offer
tax-free coupon income for residents of those municipalities.
• U.S. Treasury bonds (more than 10 years to maturity), notes (1-10 years maturity)
and bills (less than one year to maturity) are collectively referred to as simply
"Treasuries."
Page | 18
4. Equity (Stocks)
A stock (also known as "shares" and "equity) is a type of security that signifies ownership
in a corporation and represents a claim on part of the corporation's assets and earnings.
There are two main types of stock: common and preferred. Common stock usually entitles
the owner to vote at shareholders' meetings and to receive dividends. Preferred stockholders
generally do not have voting rights, though they have a higher claim on assets and earnings
than the common stockholders. For example, owners of preferred stock receive dividends
before common shareholders and have priority in the event that a company goes bankrupt
and is liquidated. Some of its features are:
Its payout ratio: The less a company is paying out when compared to its earnings, the
better covered that dividend is, and the less likely it will be cut. For most stocks, if a
dividend payout ratio gets above 75% to 80% of earnings, it's getting into risky territory.
Its growth trend: Some companies pay a static dividend, but those that regularly increase
their dividends provide stronger signals of the underlying health of the business.
Its yield: Your best opportunity is to look for a "Goldilocks" dividend. One that's too low
won't be a sufficient reward. On the flip side, if a company's yield is substantially higher
than others in its industry, that's often a signal that the market expects its dividend to get
cut
Page | 19
5. Exchange Traded Funds
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a

commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF
trades like a common stock on a stock exchange. ETFs experience price changes throughout
the day as they are bought and sold. ETFs typically have higher daily liquidity and lower
fees than mutual fund shares, making them an attractive alternative for individual investors.
Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated
once at the end of every day like a mutual fund does.
6. Structure Product
A structured product is generally a pre-packaged investment strategy which is based on

derivatives, such as a single security, a basket of securities, options, indices, commodities,
debt issuances and/or foreign currencies, and to a lesser extent, swaps. The variety of
products just described is demonstrative of the fact that there is no single, uniform
definition of a structured product. A feature of some structured products is a “principal
guarantee” function which offers protection of principal if held to maturity. For example,
an investor invests 100 dollars, the issuer simply invests in a risk-free bond which has
sufficient interest to grow to 100 after the 5-year period. This bond might cost 80 dollars
today and after 5 years it will grow to 100 dollars. With the leftover funds the issuer
purchases the options and
swaps needed to perform whatever the investment strategy is. Theoretically an investor can
just do this themselves, but the costs and transaction volume requirements of many options
and swaps are beyond many individual investors. As such, structured products were created
to meet specific needs that cannot be met from the standardized financial instruments
available in the markets. Structured products can be used as an alternative to a direct
investment, as part of the asset allocation process to reduce risk exposure of a portfolio, or
to utilize the current market trend.
Page | 20
Composition
Structured products are usually issued by investment banks or affiliates thereof. They have
a fixed maturity and have two components: a note and a derivative. The derivative
component is often an option. The note provides for periodic interest payments to the
investor at a predetermined rate, and the derivative component provides for the payment at
maturity. Some products use the derivative component as a put option written by the
investor that gives the buyer of the put option the right to sell to the investor the security or
securities at a predetermined price. Other products use the derivative component to provide
for a call option written by the
investor that gives the buyer of the call option the right to buy the security or securities
from the investor at a predetermined price.
Risks
The risks associated with many structured products, especially those products that present
risks of loss of principal due to market movements, are similar to those risks involved with
options. The potential for serious risks involved with options trading are well established,
and as a result of those risks customers must be explicitly approved for options trading.
7. Hedge Fund
Hedge funds are alternative investments using pooled funds that employ numerous
different strategies to earn active return, or alpha, for their investors. Hedge funds may be
aggressively managed or make use of derivatives and leverage in both domestic and
international markets with the goal of generating high returns (either in an absolute sense
or over a specified market benchmark). It is important to note that hedge funds are generally
only accessible to accredited investors as they require less SEC regulations than other
funds. One aspect that has set the hedge fund industry apart is the fact that hedge funds face
less regulation than mutual funds and other investment vehicles.
Page | 21
Key Characteristics of Hedge Funds
They're only open to "accredited" or qualified investors: Hedge funds are only allowed
to take money from "qualified" investors—individuals with an annual income that exceeds
$200,000 for the past two years or a net worth exceeding $1 million, excluding their
primary residence. As such, the Securities and Exchange Commission deems qualified
investors suitable enough to handle the potential risks that come from a wider investment
mandate.
They offer wider investment latitude than other funds: A hedge fund's investment
universe is only limited by its mandate. A hedge fund can basically invest in anything—
land, real estate, stocks, derivatives, and currencies. Mutual funds, by contrast, have to
basically stick to stocks or bonds, and are usually long-only.
They often employ leverage: Hedge funds will often use borrowed money to amplify their
returns. As we saw during the financial crisis of 2008, leverage can also wipe out hedge
funds.
Fee structure: Instead of charging an expense ratio only, hedge funds charge both an
expense ratio and a performance fee. This fee structure is known as "Two and Twenty" a
2% asset management fee and then a 20% cut of any gains generated.
8. Fixed Deposit Account/Term Deposits
All Banks in India offer fixed deposits schemes with a wide range of tenures for periods
from 7 days to 10 years. These are also popularly known as FD accounts. The term "fixed"
in Fixed Deposits (FD) denotes the period of maturity or tenor. Therefore, the depositors
are supposed to continue such Fixed Deposits for the length of time for which the depositor
decides to keep the money with the bank. However, in case of need, the depositor can ask
for closing (or breaking) the fixed deposit prematurely by paying a penalty (usually of 1%,
but some banks either charge less or no penalty).
The rate of interest for Fixed Deposits differs from bank to bank (unlike earlier when the
same were regulated by RBI and all banks used to have the same interest rate structure. The
present trends indicate that private sector and foreign banks offer higher rate of interest.
Page | 22
9. Mutual Funds
Simply put, the money pooled in by a large number of investors is what makes up a Mutual
Fund. This money is then managed by a professional Fund Manager, who uses his
investment management skills to invest it in various financial instruments.
As an investor you own units, which basically represent the portion of the fund that you
hold, based on the amount invested by you. Therefore, an investor can also be known as a
unit holder. The increase in value of the investments along with other incomes earned from
it is then passed on to the investors / unit holders in proportion with the number of units
owned after deducting applicable expenses, load and taxes. Let’s have a look to the Types
of Mutual Fund
Open-Ended
This scheme allows investors to buy or sell units at any point in time. This does not have a
fixed maturity date.
Debt/ Income –
In a debt/income scheme, a major part of the investable funds is channelized towards

debentures, government securities, and other debt instruments. Although capital
appreciation is low (compared to the equity mutual funds), this is a relatively low risk-low
return investment avenue which is ideal for investors seeing a steady income.
Money Market/ Liquid
This is ideal for investors looking to utilize their surplus funds in short term instruments
while awaiting better options. These schemes invest in short-term debt instruments and
seek to provide reasonable returns for the investors.
Equity/ Growth
Equities are a popular mutual fund category amongst retail investors. Although it could be
a high-risk investment in the short term, investors can expect capital appreciation in the
long run. If you are at your prime earning stage and looking for long-term benefits, growth
schemes could be an ideal investment.
Page | 23
Index Scheme
Index schemes is a widely popular concept in the west. These follow a passive investment
strategy where your investments replicate the movements of benchmark indices like Nifty,
Sensex, etc.
Sectoral Scheme
Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc.
or segments of the capital market like large caps, mid-caps, etc. This scheme provides a
relatively high risk-high return opportunity within the equity space.
Tax Saving
As the name suggests, this scheme offers tax benefits to its investors. The funds are invested
in equities thereby offering long-term growth opportunities. Tax saving mutual funds
(called Equity Linked Savings Schemes) has a 3-year lock-in period.
Balanced
This scheme allows investors to enjoy growth and income at regular intervals. Funds are
invested in both equities and fixed income securities; the proportion is pre-determined and
disclosed in the scheme related offer document. These are ideal for the cautiously
aggressive investors.
Closed-Ended
In India, this type of scheme has a stipulated maturity period and investors can invest only
during the initial launch period known as the NFO (New Fund Offer) period.
Capital Protection
The primary objective of this scheme is to safeguard the principal amount while trying to
deliver reasonable returns. These invest in high-quality fixed income securities with
marginal exposure to equities and mature along with the maturity period of the scheme.
Page | 24
Fixed Maturity Plans (FMPs)
FMPs, as the name suggests, are mutual fund schemes with a defined maturity period.
These schemes normally comprise of debt instruments which mature in line with the
maturity of the scheme, thereby earning through the interest component (also called
coupons) of the securities in the portfolio. FMPs are normally passively managed, i.e. there
is no active trading of debt instruments in the portfolio. The expenses which are charged to
the scheme, are hence, generally lower than actively managed schemes.
Interval
Operating as a combination of open and closed ended schemes, it allows investors to trade
units at pre-defined intervals.
10. Insurance
A financial risk management tool in which the insured transfers a risk of potential financial
loss to the insurance company that mitigates it in exchange for monetary compensation
known as the premium.
Insurance has become a big industry in India now; more than 20 life insurance companies
are offering different products in India. In order to choose the suitable policy, it is very
important to know different product offerings by all insurance companies. The Insurance
Regulatory and Development Authority (IRDA), an agency of the Government, is the
regulatory body for the insurance sector's supervision and development in India.
Insurance policy is a contract between the policyholder and the insurance company. These
are of different types depending on the risk they mitigate. Broad categories include life,
health, motor, travel, home, rural, commercial and business insurance.
Page | 25
Type of Insurance Policies
Insurance can be broadly classified into two categories life and general insurance.
General Insurance
General insurance is basically non-life insurance, which is meant for short period of time,
ideally twelve months or less. Now a day, some companies make contracts for more than
twelve months but not more than 5 years. Vehicle insurance, fire insurance, marine
insurance etc. falls under general insurance category.
In India, ICICI Lombard, National Insurance, Oriental Insurance, Reliance, Tata AIG,
HDFC Ergo etc. provide general insurance.
Life Insurance
Life insurance is the most popular product in the industry. Life insurance is an insurance
coverage that pays out a certain amount of money to the insured or their specified
beneficiaries upon a certain event such as death of the individual who is insured.
The coverage period for life insurance is usually more than a year. So, this requires periodic
premium payments, either monthly, quarterly or annually.
The risks that are covered by life insurance are:
• Premature Death
• Income during retirement
• Illness
Life insurance can be classified as whole life plan, endowment, term plan, money back plan
and Unit Linked Insurance Plan (ULIP).
Whole-Life Plan
Insurance company collects premium from the insured till the retirement or the term of the
policy and pays the claims to the nominees only after the death of the insured person. This
helps the family to survive better after the death of insured.
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Endowment
Insurance company collect premium form the insured for the certain period of time like 15,
20, 25, 30 years. Company pays sum assured to the nominees in case of death of the insured
during the policy period or pay the premium paid by the insured with fix returns (as per
policy document) to the insured.
Money back
The policy is useful for that investor who needs periodical pay-outs. The insurance
company collects premium for a certain period of time which is called premium payment
term and pays percentage of sum assured to the insured on regular interval. If insured dies
during the policy term, insurance company pays sum assured and accrued bonus to the
nominees.
Term plan
In case of term insurance, insurer pays premium to cover the death risk. Insured does not
get anything from the insurance company if he survives till the end of policy term. The
premium paid for term cover goes to the company. The good part of this plan is, insured
gets maximum death cover with minimum premium. Nowadays, companies have come up
with insurance with return of premium, if nothing happens to insured during the term of the
policy, the company pays part of the premium back to the insured.
ULIP
It is a new flavor of insurance which is a mix of investment as well as insurance. Insurance

companies collects premium form client and invest the same into equity and debt markets.
The returns generated by this investment are passing on to the inventors at the maturity.
The insured person gets the benefit of risk cover as well as the investment gains. The
product also offers the flexibility of partial withdrawal after certain period of premium
payments. In case of death of insured, the nominee gets the sum assured or fund value,
whichever is higher.
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Claim
Insurance Grievances Maximum Cover Maximum
Settlement
Provider Solved (Sum Assured) Maturity Age
Ratio
Aegon Life
94.68% 89.78% No Upper Limit 75 Years
Insurance
HDFC Life
Insurance
Reliance Life
Insurance
Max Life
99.98% 96.03% 100 Crore 70 Years
Insurance
Bharti AXA Life
93.80% 80.90% 10 Crore 65 Years
Insurance
Aviva Life
100% 83.07% No Upper Limit 70 Years
Insurance
Bajaj Allianz
Life Insurance
SBI Life
Insurance
IDBI Federal Life
100% 75.80% 30 Crore 75 Years
Insurance
PNB MetLife
99.85% 92.86% 10 Crore 75 Years
Insurance
ICICI Prudential
99.50% 93.80% 15 Crore 65 Years
Life Insurance
Birla Sun Life
99.95% 95.30% 10 Crore 80 Years
Insurance
Future Generali
Life Insurance
Edelweiss Tokio
Life Insurance
Page | 28
Health Insurance
Health Insurance is an insurance policy that ensures that you stay healthy. It is a contract
between an insurance company and an individual, which covers the expenses incurred for
availing healthcare or medical treatment at the hospital in the event of a medical emergency.
The contract of health insurance or medical insurance requires the insurer to pay some or
all of one’s health care costs in exchange of a periodic premium. Additional benefits of
health insurance policies include regular health check-ups, cashless treatment across a
network of hospitals, pre and post hospitalization expense reimbursement etc.
Health insurance policies allow you save thousands on taxes under section 80D of Income
Tax Act, 1961. The premiums paid towards the policy reduce your annual tax liability,
thereby reducing your taxable income per year.
Types of Health Insurance Policies in India:
• Individual Health Insurance Policies

• Family Floater Health Insurance Policies
• Surgery & Critical Illness Insurance Plans
• Pre-Existing Disease Cover
• Senior Citizen Health Insurance Plans
• Preventive Healthcare
• Maternity Health Insurance
• Personal Accident Cover
Page | 29
BANK OF BARODA WEALTH MANAGEMENT
Bank of Baroda offer a bouquet of investment / insurance products looking to meet the
financial / investment needs of our clients / customers. Service that bank of Baroda provide
under the wealth Management are as follows:
• General Insurance
• Health Insurance
• Life Insurance
• Mutual Funds
• Baroda E-Trade (BOBCAPS)
Let’s have a look on the above services in detail:
1. General Insurance
General Insurance comprises of insurance of property against fire, burglary etc., personal
insurance such as Accident and Health Insurance, and liability insurance which covers legal
liabilities. There are also other covers such as Errors and Omissions insurance for
professionals, credit insurance etc.
Non-life insurance companies have products that cover property against Fire and allied
perils, flood storm and inundation, earthquake and so on. There are products that cover
property against burglary, theft etc. The non-life companies also offer policies covering
machinery against breakdown, there are policies that cover the hull of ships and so on. A
Marine Cargo policy covers goods in transit including by sea, air and road. Further,
insurance of motor vehicles against damages and theft forms a major chunk of non-life
insurance business. General Insurance in Bank of Baroda is done by 2 Companies that is
• Chola MS General Insurance

• Tata AIG General Insurance
Page | 30
Chola MS General Insurance
Cholamandalam MS General Insurance Company Limited is a Joint Venture between the

Murugappa Group and Mitsui Sumitomo Insurance Company Limited, Japan. Chola MS
offers a wide range of insurance products that includes Accident, Engineering, Health,
Liability, Marine, Motor, Property, Travel and Rural insurance for individuals and
corporates.
Chola MS champions a brand philosophy called T3, which stands for Trust, Transparency
and Technology. It has also been consistently recognized and awarded by the Government
of India, international entities and ratings agencies for its insurance service and delivery
innovations. The company has 109 branches and over 9000 agents across the country.
The Company achieved a Gross Written Premium (GWP) of Rs. 31,333 million registering
a robust growth rate of about 28% over the previous year. The Company’s market share as
at March 31, 2017 was 2.76% (among general insurance companies). The growth was
driven by new partnerships secured during the year and strong growth achieved in
proprietary channels. Together with investment income, the Company recorded its highest
ever operating profits. Profit before tax increased from Rs. 2,131 million to Rs. 2,971
million for the year ended March 31, 2017. Services provided by Chola MS General
Insurance are as follows:
• Health Insurance
• Car Insurance
• Travel Insurance
• Home Insurance
• Personal Accident
Page | 31
Health Insurance
Product Name Sum Insured Policy Tenure What does it cover
Upto 65 Years of Basic and Additional

Chola Healthline 2-2.5 Lakhs
Age Hospital Expenses
Pre and Post
CholaSwasth Parivar Upto 70 Years of
3-5 Lakhs Hospitalization Charge
Insurance Age
and 15 Disease
Hospitalization and
Chola Tax Plus Upto 45 Years of
1-5 lakhs Non-Hospitalization
Healthline Age
Cover
Hospitalization and
Chola MS Family Upto 70 Years of
2-5 lakhs Non-Hospitalization
Healthline Insurance Age
Expenses
Hospitalization and
Individual Healthline Upto 65 Years of
3-5 Lakhs Non-Hospitalization
Insurance Age
Expenses
Chola Top-up Upto 70 Years of Pre and Post
50000-15 Lakhs
Healthline Age Hospitalization Charge
Chola MS Critical Upto 65 Years of
3-10 Lakhs Critical Illnesses
Healthline Insurance Age
Chola Hospital Cash 678 -14234 Upto 80 Years of Hospital Confinement
Healthline (Premium) Age Cash Benefit
Car Insurance
Loss Due to Natural
Not Exceeding 5
Chola Protect 5-50% of IDV and Third-Party
Year
Property
Loss Due to Natural
Not Exceeding 5
Commercial Vehicle 5-50% of IDV and Third-Party
Year
Property
Page | 32
Travel Insurance
Travel Loss Upto the
Chola Comprehensive Upto 80 Years of
50000-5 Lakhs 185 Days for Single
Travel Insurance Age
Trip
Chola Overseas Travel Upto 80 Years of Loss Occur While
$30-$250000
Protection Policy Age Traveling
Chola Student Travel Loss During
$30-$250000 NA
Protection Plan Academic Year
Chola MS Corporate Loss Occur While
$30-$250000 NA
Travel Insurance Traveling
Home Insurance
Loss to Building
Home Protect NA NA Structure, Content and
People
Standard Fire and Loss Due to Fire and
15Lakhs-1Core Upto 25 Year
Special Perils Policy Natural Disaster
Tata AIG General Insurance
Tata AIG General Insurance Company Limited is a joint venture between Tata Group and
American International Group (AIG). Tata AIG General Insurance Company Limited
celebrated 15 years of service this year (2015) since it commenced operations in India on
January 22, 2001. The company offers a range of general insurance covers for businesses
and individuals and has a comprehensive range of general insurance products for Liability,
Marine Cargo, Personal Accident, Travel, Rural-Agriculture Insurance, Extended Warranty
etc. Each product offering is backed by professional expertise. Tata AIG General Insurance
Company Limited has an asset base of approximate 0.6 billion USD, a workforce of 2523
employees and 9446 agents. It is present in 98 locations across India.
Page | 33
Health Insurance
Medi Prime Health Pre and Post
2-10 lakhs NA
Insurance Hospitalization Charges
Wellsurance Benefit on diagnosis of 9
NA NA
Executive critical illnesses
Benefit on diagnosis of
Wellsurance Family NA NA
11 critical illnesses
Benefit amount on
diagnosis of any of 11
Wellsurance Women NA NA
Critical Illnesses. Higher
benefit in case of Cancer
Pre-hospitalization and
30-60 Days of
MediSenior 2-5 Lakhs post-hospitalization
Hospitalization
expenses
Basic Hospitalization
MediRaksha 50000-1Lakh NA
expenses
Pre-hospitalization and
91months- 65-Year-
MediPlus 1-5 Lakhs post-hospitalization
Old
expenses
Critical Illness Covers 11 Critical
NA NA
Policy Illnesses
Page | 34
Travel Insurance
Travel Guard 10000-2 Lakhs 6-71 Years of Age Loss During Travel
Student Guard -
Loss During
Overseas Health 2-5 Lakhs NA
Academic Years
Insurance Plan
Asia Travel Guard
NA NA Loss During Travel
Policy
Domestic Travel Loss During
25000-5 Lakhs NA
Guard Policy Domestic Travel
Car Insurance
Loss Due to Natural
Auto Secure-Private Not Exceeding 5
5-50% of IDV and Third-Party
Car Package Policy Year
Property
Auto Secure-Two- Loss Due to Natural
Not Exceeding 5
Wheeler Package 5-50% of IDV and Third-Party
Year
Policy Property
Long Term Two-
Not Exceeding 5 Loss Due to Natural
Wheeler Package 5-50% of IDV
Year Disaster
Policy
Auto Secure-
Loss Due to Natural
Commercial Not Exceeding 5
5-50% of IDV and Third-Party
Vehicle Package Year
Property
Policy
Page | 35
2. Life Insurance
Life insurance is a contract between an insurer and a policyholder in which the insurer
guarantees payment of a death benefit to named beneficiaries upon the death of the insured.
The insurance company promises a death benefit in consideration of the payment of
premium by the insured.
IndiaFirst Life Insurance
Following are the IndiaFirst Life Insurance products offered by Bank of Baroda:
IndiaFirst Maha Jeevan Plan – A traditional non – linked participating plan. This plan
also offers Term Rider to enhance life cover. Guaranteed death benefit and maturity benefit
is the key feature of this plan.
IndiaFirst Life Cash Back Plan – A traditional non – linked non – participating plan
which offers guaranteed additions as a percentage of premium paid depending on the
premium paying term. Periodic survival benefits as a percentage of sum assured and
balance sum assured on maturity is payable under the plan.
IndiaFirst Life Wealth Maximizer Plan – A unit linked plan offering three investment
strategies to suit your profile. A plan which provides additions to your fund value for paying
your premiums regularly and Systematic Partial Withdrawal (after completion of 5 policy
years) to access your funds when you require.
IndiaFirst Life Money Balance Plan – A unit linked plan offering market linked returns.
The Automatic Trigger Based Investment Strategy helps you to safeguard your returns from
the upside of the equity market.
IndiaFirst Life Plan – This is a pure term plan which offers only death benefit. Nothing is
payable if the life insured survives the policy term. This plan offers high cover at very
economical rates.
Baroda Jeevan Suraksha – A group term plan offering only death benefit to the group
members. Ideal for employer to take care of the employees’ families in case of untimely
demise of the employee.
Page | 36
IndiaFirst Group Credit Life Plan – A group term plan to take care of your loan liabilities
so that the burden of repaying the outstanding loan does not fall on the shoulders of the
family members of the person who has taken a loan.
3. Mutual Funds
A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust

that collects money from a number of investors who share a common investment objective
and invests the same in equities, bonds, money market instruments and/or other securities.
And the income / gains generated from this collective investment is distributed
proportionately amongst the investors after deducting applicable expenses and levies, by
calculating a scheme’s “Net Asset Value” or NAV. Simply put, the money pooled in by a
large number of investors is what makes up a Mutual Fund.
There are wide variety of Mutual fund schemes that cater to your needs, whatever your age,
financial position, Risk Tolerance and return Expectations. Before investing in Mutual
Fund Schemes; you should know which scheme suits your requirements.
• Growth Schemes
• Income Scheme
• Balanced Scheme
• Money Market / Liquid Schemes
• Tax Saving Schemes (Equity Linked Saving Scheme - ELSS)
• Fixed Maturity Plans
• Exchange Traded Funds (ETFs)
• Capital Protection Oriented Schemes
• Gold Exchange Traded Funds (GETFs)
• Quantitative Funds
• Funds Investing Abroad
• Fund of Funds
Page | 37
Suggested Portfolio Based on Risk Tolerance
Aggressive Plan Moderate Plan Conservative Plan

Growth Scheme 60-70% 30-40% 10%
Balanced Scheme 10-20% 40-50% 20-30%
Income Scheme 10-15% 20% 50-60%
Money Market
5% 10% 10%
Scheme
• Investors
• Investors in seeking
their prime income and • Retired and
earning years moderate other investors
and willing to growth who need to
Suitable For
take more risk • Investors preserve capital
• Investors looking for and earn
seeking growth growth and regular income
over a long term stability with
moderate risk
4. Baroda E-Trade (BOBCAPS)
Bank OF Baroda helps investor to trade in securities with the help of Bank of Baroda E
Trade also known as BOBCAPS. It a Demat Account where an investor can apply for IPO
and can do intraday trading can buy futures and options and can apply for mutual funds. It
also provides and unique option that is Buy It Today Sell It Tomorrow (BITSIT). In which
an investor can sell the shares that he has purchased even before he receives the delivery
of the shares from the Exchange. He will not have to wait till the time he receives the
delivery from the Exchange thus increasing his liquidity. The client has to allocate
sufficient funds from his linked bank account in order to buy the stock under BITSIT.
Page | 38
COMPETITIVE PLAYER OF WEALTH MANAGEMENT AND THEIR
PRODUCTS
The competitive rivalry is increasing in the wealth management sector in India as the
existing players are expanding and diversifying their operations where as there are new
local and global players wanting to make a stand here. As of now this industry is fragmented
with lot number of brokers, sub-brokers, financial advisers, insurance and tax consultants
Some of the Financial Institute are as follows:
• ICICI Prudential Asset Management Company

• Reliance Nippon Asset Management Company
• HDFC Asset Management Company
• Kotak Mahindra Asset Management
• BNP Paribas Asset Management Company Limited
• Axis Asset Management Company
• Motilal Oswal Asset Management Company
• Edelweiss Asset Management Limited
Let’s have a look in Detail:
ICICI Prudential Asset Management Company
ICICI Prudential Asset Management Company Ltd. is a leading asset management

company (AMC) in the country focused on bridging the gap between savings &
investments and creating long term wealth for investors through a range of simple and
relevant investment solutions. The AMC is a joint venture between ICICI Bank, a well-
known and trusted name in financial services in India and Prudential Plc, one of UK’s
largest players in the financial services sectors. Throughout these years of the joint venture,
the company has forged a position of pre-eminence in the Indian Mutual Fund industry.
Page | 39
Products:
Equity Funds: Equity schemes endeavor to provide potential for high growth and returns
with a moderate to high risk by investing in shares. Such schemes are either actively or
passively (replicate indices) managed and are best suited for investors with a long-term
investment horizon it includes:
• ICICI Prudential Bluechip Fund

• ICICI Prudential Value Discovery Fund
• ICICI Prudential Long-Term Equity Fund
• ICICI Prudential Infrastructure Fund
Debt Fund: Debt Funds primarily invests in bonds and other debt instruments and will suit
investors who want to optimize current income assuming low to moderate levels of risk it
includes:
• ICICI Prudential Savings Fund

• ICICI Prudential Floating Interest Fund
• ICICI Prudential Corporate Bond Fund
• ICICI Prudential Liquid Fund
Fund of Funds: A Fund of Funds is a mutual fund scheme that invests in other mutual
funds and is designed to suit the varying needs of different investor categories based on
their risk profiles, return expectations and investment goals. It provides investors an
opportunity to take advantage of the benefits of diversification by investing in a variety of
fund categories.
Exchange Traded Funds: Investing in Exchange Traded Funds (ETFs) can be a good way
of complementing your existing mutual fund investments. They can help in diversifying
your portfolio at a low cost. An understanding of the features and benefits of various ETFs
can help you make smarter investment choices and reach your life goals it includes:
• ICICI Prudential Nifty ETF
• ICICI Prudential Sensex ETF
• ICICI Prudential Midcap Select ETF
• ICICI Prudential Nifty 100 ETF
• ICICI Prudential Gold ETF
Asset Size: Rs. 310166.25 crore (Jun-30-2018)
Page | 40
Reliance Nippon Asset Management Company
RNAM has been appointed as the Asset Management Company (AMC) of Reliance Mutual
Fund (RMF) by the Trustees of RMF vide Investment Management Agreement (IMA)
dated May 12, 1995 amended on August 12, 1997, January 20, 2004 and February 17, 2011
in line with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
RNAM has ensured that key personnel of the AMC, the systems, back office, and bank and
securities accounts are segregated activity-wise and there exists systems to prohibit access
to inside information of various activities. As per SEBI regulations, it will further ensure
that the AMC meets the capital adequacy requirements, if any, separately for each such
activity.
Product:
Asset class that Reliance Nippon Asset Management offers are:
• Equity Funds
• Debt Funds
• Gold Funds
• Liquid Funds
The various other fund that Reliance Nippon offers are as follows:
• Top Trending Funds

• Retirement Funds
• New Fund Offer
Net Worth: Rs 2,245 Crore (March, 2018)
Page | 41
HDFC Asset Management Company
HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies
Act, 1956, on December 10, 1999, and was approved to act as an Asset Management
Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. In terms
of the Investment Management Agreement, the Trustee has appointed the HDFC Asset
Management Company Limited to manage the Mutual Fund. The paid-up capital of the
AMC is approx. Rs. 1052.77 million as on March 15, 2018.
Product
HDFC Asset Management Company Ltd offers various product to diversify the risk these
are follows:
• Equity Fund
• Debt Fund
• Liquid Fund
• Children’s Gift Fund
• Retirement Savings Fund
• Fixed Maturity Plan
• Rajiv Gandhi Equity Saving Scheme
• Dual Advantage Fund
• Fund of Funds
Net Worth: Rs 2,159.97 Crore (March 2018)
Page | 42
Kotak Mahindra Asset Management
Kotak Mahindra Group is one of India's leading financial services conglomerates. In

February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company,
received banking license from the Reserve Bank of India (RBI), becoming the first
nonbanking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd.
The consolidated net worth of the Group stands at Rs. 34,443 crores (US $ 5.1 billion; 1
US $ = Rs. 67.62) as on June 30, 2016. The Group offers a wide range of financial services
that encompass every sphere of life. From commercial banking, to stock broking, mutual
funds, life insurance and investment banking, the Group caters to the diverse financial
needs of individuals and the corporate sector.
Products
Kotak Mahindra Asset Management offers a wide range of products to its customers some
of these are as follows:
• Equity Fund
• Tax Saver Fund
• Hybrid Fund
• Debt Fund
• Liquid Fund
• Fund of Funds
• Systematic Investment Plan
• Exchange Traded Fund
Page | 43
BNP Paribas Asset Management Company Limited
BNP Paribas Asset Management is the dedicated asset management business line of BNP
Paribas and backed by the financial strength of one of the best rated banks in the world.
BNP Paribas Asset Management manages and advises assets of over EUR 571* bn across
30 countries with significant presence in Europe, Asia and the Americas. It is Europe's 6th
largest asset manager and among the leading asset managers in the world offering one of
the widest range of investment solutions in the industry.
Our Product:
Equity Funds
• BNP Paribas Large Cap Fund

• BNP Paribas Long Term Equity Fund
• BNP Paribas Multi Cap Fund
• BNP Paribas Midcap Fund
• BNP Paribas Focused 25 Equity Fund
Debt Funds
• BNP Paribas Flexi Debt Fund

• BNP Paribas Corporate Bond Fund
• BNP Paribas Short Term Fund
• BNP Paribas Low Duration Fund
• BNP Paribas Liquid Fund
• BNP Paribas Medium Term Fund
Hybrid Funds
• BNP Paribas Arbitrage Fund

• BNP Paribas Substantial Equity Hybrid Fund
• BNP Paribas Conservative Hybrid Fund
Page | 44
Axis Asset Management Company
Axis Asset Management Company Limited is a privately-owned investment manager. The

firm manages equity, fixed income, and balanced mutual funds and hedge funds for its
clients. It invests in the public equity, fixed income, and alternative markets of India. The
firm also invests in gold for some of its funds. It is based in Mumbai, India. Axis Asset
Management Company Limited operates as a subsidiary of Axis Bank Limited.
Axis Mutual Fund launched its first scheme in October 2009 Since then Axis Mutual fund
has grown strongly. We attribute our success thus far to our 3 founding principles - Long
term wealth creation, Outside in (Customer) view and Long-term relationship. Come join
our growing family of investors and give shape to your desires.
Our product, sales and service strategy are entirely guided by this. We aim to provide
quality financial and investment solutions which help customers feel financially secure and
feel confident of a brighter and prosperous future. We lay a strong emphasis on risk
management and planning. We encourage our investors and our partners to take a holistic
view which extends beyond mere investing surpluses to investing with an underlying
dream, aspiration or goal.
Product:
The Company offers versatile products under following asset class:
• Equity Fund
• Debt Fund
• Hybrid Fund
• Fund of Funds
• Exchange Traded Fund
• Special Situation Fund
Asset Size: Rs.79201.23 crore (Jun-30-2018)
Page | 45
Motilal Oswal Asset Management Company
Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company
incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered
Office at Mumbai. Motilal Oswal Asset Management Company Ltd. has been appointed as
the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment
Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal
Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.
Products:
Here are the list of products Motilal Oswal Asset Management Company Ltd. Offers:
• Motilal Oswal Focused 25 Fund

• Motilal Oswal Midcap 30 Fund
• Motilal Oswal Midcap 35 Fund
• Motilal Oswal Long Term Equity Fund
• Motilal Oswal Dynamic Fund
• Motilal Oswal Equity Hybrid Fund
• Motilal Oswal Ultra Short-Term Fund
• Motilal Oswal M50 ETF
• Motilal Oswal Midcap 100 ETF
• Motilal Oswal Nasdaq 100 ETF
Page | 46
Edelweiss Asset Management Limited
Edelweiss Mutual Fund is an important fiduciary business of Edelweiss Group. It is a trust

sponsored by Edelweiss Financial Services Limited. Edelweiss Asset Management
Limited, a subsidiary of Edelweiss Financial Services Limited, acts as the Investment
Manager to Edelweiss Mutual Fund. Edelweiss Asset Management, the Investment
Manager to the Mutual Fund encourages a work environment that is committed to offering
exemplary services with an emphasis on teamwork and intellectual rigor. Our professional
asset management team comes with a rich experience of working in the mutual fund
industry and finance-related areas. Their research-oriented methodology imbues them with
the right knowledge to spot the best investment opportunities in the Indian marketplace in
a disciplined manner for the benefit of the mutual fund schemes and its investors.
Products:
Edelweiss Asset Management Limited offers the following range of asset class:
• Equity Funds
• Fixed Income Funds
• Exchange Traded Schemes
• International Funds
Page | 47
CONCLUSION
A small survey/interaction was done with the customers visiting the Jacob Circle Branch
of Bank of Baroda. These customers were asked various questions like-
If they invested their money? What were their investment goals, expectations? What were
their preferred instruments for investment? Were they aware about the various Wealth
Management products offered by Bank of Baroda? And so on.
The important findings of this interaction are-
• Majorly the customers visiting the branch were low or medium net worth
individuals, or persons on bank business for their companies.
• There was a very high loyalty amongst the customers for Bank of Baroda, and there
was even one individual who had been with the bank for over 60 years
• The major objective for investment was safeguarding their money in times of
financial needs. The expectation from investment was steady returns and quick
liquidity.
• The most preferred instrument for investing was bank deposits, either in the form of
FDs or Savings accounts.
• They had hesitation to invest in the equity markets, and majority of them refrained
from investing in equity through shares or mutual funds. This was due to higher risk
perception of these instruments.
• People were aware of the Bank of Baroda WM instruments, but there was not many
investing in them. The reason for this was that the individuals were not well
informed about these products.
Page | 48
RECOMMENDATION
The investors need to be made aware. The general public is still afraid of investing in
instruments like mutual funds or other forms of equity. An online survey conducted by ET
Wealth in April 2016 throws up worrying figures. Nearly two out of five respondents (37%)
have not heard of direct plans of mutual funds, and one out of five (21%) believes that SIPs
make investments in equity funds risk free. Direct plans, launched more than three years
ago in January 2013, have lower charges and therefore, offer higher returns to investors.
And SIPs help reduces, but not completely remove, the risk of equity investments. The
above shows us how unaware are investors; and in order to expand their customer base, the
Government, Banks and other FIs are responsible for educating these investors. This would
lead to smart investors and the growth of the wealth management sector.
Bank of Baroda has a strong standing legacy and plenty of loyal customers; these need to
be taken care of. Bank deposits are still favored form of investments, so BoB should offer
its customers attractive and competitive rate of interest along with other additional services
to survive in the market.
Nowadays banks have gone from becoming mere borrowers and lenders to one-stop- shops
for all financial instruments, more like Financial Hubs. Banks provide customers with
means to invest in mutual funds, buy insurance policies, trade in equity markets and so on.
Bank of Baroda too provides Mutual Funds under the name Baroda Pioneer Mutual Fund.
However, these are not yet well known due to their low market awareness. The same goes
for insurance policies of Bank of Baroda provided in alliance with Chola MS, Star Life
Insurance and IndiaFirst Insurance Company. These instruments hence need to be marketed
well to ensure awareness.
Page | 49
BIBLIOGRAPHY
https://www.bankofbaroda.com/
https://www.bloomberg.com/asia
https://www.paisabazaar.com/
https://www.moneycontrol.com
https://www.investopedia.com
https://www.cholainsurance.com
https://www.tataaig.com
https://www.indiafirstlife.com
http://www.barodapioneer.in
https://www.icicipruamc.com/
https://www.reliancemutual.com/
http://www.hdfcfund.com/
https://assetmanagement.kotak.com/
https://www.axismf.com/
https://www.motilaloswalmf.com/
http://www.edelweissmf.com/
Page | 50

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Comparative Analysis of Various Alternative of Wealth Management

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Alkesh Dinesh Mody Institute for Financial and Management Studies

“Comparative Analysis of Various Alternative Available in Market for

A Study Done For

Omkar Krishnakant Rasal

MMS Programme for The Year 2017-2019

For the Period

2nd May, 2018 to 30th June, 2018

I, Mr. Omkar Krishnakant Rasal, student of the course, Master in Management

It is a matter of great satisfaction and pleasure to present this report on Comparative

In the end, I speak about conclusion and recommendations.

Sr. No Topic Page No

Mr. P. S. Jayakumar, 56 years is a Chartered Accountant by

Shri Mayank K. Mehta assumed the charge as Executive

Smt. Sengupta is a Science Graduate, with additional

Particular 2017-18 2016-17 2015-16

Particular 2017-18 2016-17 2015-16

There are two aspects to the wealth management process:

Wealth management is a high-level professional service that combines financial/investment

BREAKING DOWN 'Wealth Management'

The client segmentation is as follows in six categories:

Individual Advisors – An upcoming segment providing advisory and investment services

Client profiling takes in account multitude of behavioral, demographic and investment

• Current and future Income level

Portfolio Strategy Definition / Asset Allocation

After establishing investment objectives, a broad framework for harnessing possible

Determination of Portfolio Constituents and Allocation of Assets

1. Discovery & Insights-

Creating an effective wealth management plan starts with

Wealth management offers the following services:

• Investment planning assists a person in investing his/her money into various

Investment Planning Process includes:

Essentially, Investment Planning involves identifying his/her financial goals throughout

1. Money Market Fund

Ready Forward Contract (Repo)

Interest Rate Swaps

Minimum size and maturity of a Certificate of Deposit

A bond is a fixed income investment in which an investor loans money to an entity

• Corporate bonds are issued by companies.

An ETF, or exchange-traded fund, is a marketable security that tracks an index, a

A structured product is generally a pre-packaged investment strategy which is based on

8. Fixed Deposit Account/Term Deposits

In a debt/income scheme, a major part of the investable funds is channelized towards

Money Market/ Liquid

The risks that are covered by life insurance are:

It is a new flavor of insurance which is a mix of investment as well as insurance. Insurance

Types of Health Insurance Policies in India:

• Individual Health Insurance Policies

Let’s have a look on the above services in detail:

• Chola MS General Insurance

Cholamandalam MS General Insurance Company Limited is a Joint Venture between the

Product Name Sum Insured Policy Tenure What does it cover

Upto 65 Years of Basic and Additional

Tata AIG General Insurance

IndiaFirst Life Insurance

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust

Aggressive Plan Moderate Plan Conservative Plan

4. Baroda E-Trade (BOBCAPS)

Some of the Financial Institute are as follows:

• ICICI Prudential Asset Management Company

Let’s have a look in Detail:

ICICI Prudential Asset Management Company

ICICI Prudential Asset Management Company Ltd. is a leading asset management

• ICICI Prudential Bluechip Fund

• ICICI Prudential Savings Fund