“A STUDY WEALTH MANEGMENT DONE BY BANK”

A Project Submitted to University of Mumbai for partial completion

of the degree Master in Commerce

By

(ROHAN RANE)

Under the Guidance Of

Mr. PRASAD NAIK SIR

CHETANA ’S
HAZARIMAL SOMANI COLLEGE OF COMMERCE &
ECONOMICS
BANDRA (E), MUMBAI 4000051.
 DECLARATION
I the undersigned Mr. ROHAN RANE hereby, declare that the work embodied in this project work
titled, STUDY OF WEALTH MANAGEMNT DONE BY BANKS forms my own contribution to
the research work carried out under the guidance of MR PRASAD NAIK SIR is a result of my
own research work and has not been previously submitted to any other university for any other
degree to this or any other university.

Wherever reference has been made to previous works of others, it has been clearly indicated as
much and included in the bibliography.

I here by further declare that all information of this document has been obtained And presented in
accordance rules and ethical conduct.

Declaration Name
 CERTIFICATE

This is to certify that MR. ROHAN RANE has worked and duly completed his project work for
the degree of MASTER OF COMMERCE under the Faculty of commerce in the subject of
Management and his project is entitled , WEALTH MANAGMENT DONE BY BANK under my
supervision.

I further certify that the entire

work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree
Or Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Project guide course

Coordinator

External
Principal Examiner
 ACKONWLEDGMENT
TO list who all have helped me difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my principal dr. Mahesh chandra joshi for providing the necessary facilities
required for completion of this project.

I take this opporunity to thank our cordinator prof.NIYOMI fonseca, for her moral support and
guidance.

I would like to express my sincere gratitude towards my project guide PRASAD SIR whose
guidance and care made this project successful.

I would like to thank my college library , for having provided various refernce books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly hepled me in the
completion of the project especially my parents and peers who supported me throughout my
project.
 EXECUTIVE SUMMARY

Traditionally wealth management services were the preserve for very rich, which needed help to
manage substantial sums of money . wealth management is both an art and science. It involves
understanding the investor very well.

However, the internet has opened up the world of financial management to a much wider audiance
and once doesn’t have to be millionaire to take advantage of the sort services. Other than
managing stocks and share portfolio, wealth manegers in bank help the investors to pick and
choose between different collective funds which they may be interseted he also can help the
investor in selecting form a range of wealth management plans for specific individuals.

Here in this research project , I am studying differnt types of wealth management services
provided by bank. Study of customer prefrence in investment ,their views regarding investment.
And how much risk people can take? How much return people expected ?

By taking investors prefernce for investment, I tried to find out that how wealth management
services provide by bank manages wealth .
 INDEX

Chapter TABLE OF Page No.

CONTENTS
No.

1 INTRODUCTION 11 - 24

Concept of wealth management

Key element of wealth management services

Functional areas

Kind of financial planning

Systematic approach to investing

Basic aspects of wealth management services

Key challenging area

Wealth management practices overview

2 25
Objectives of study

3 REVIEW OF LITERATURE 26-28

4 DATA ANALYSIS AND INTERPRETATION 29- 48

5 49
limitations
6 CONCLUSION

50

7 BIBLIOGRAPHY 51

ANEXURE 52 -55
 INTRODUCTION

The term wealth management now a day’s having very importance. So many
banking companies are engaged in the business of wealth management. The
premier insurance industry is now booming because so many bankers are also
adopting and playing safe in the business of insurance the term called banc
assurance. Now days, wealth management has very craze in the in the
business world. In survey, it was found that India had 100,000 milliners day
end of year 2006 is now growing up by 21% from year earlier ( Asia Pacific
Wealth Report).Wealth management services area in financial sector has been
witnessing more attention during last couple of years. Capgemini Merill
Lyunch wealth report 2007 cites number of HNWIs ( high net worth
individuals) globally to be around 9.5 million with wealth held by them
totalling to US $37.2 trillion in year 2006. Value of wealth held by HNWI
represents an increase of around 11.4% since 2005Considering long term high
value business proposition, number of banks and niche players has started
offering full range of wealth management services targeted to HNWIs and
emerging affluent. While growing volume of premium services to affluent
clients becomes the key driver for the most of the service provide firms, many
unique elements inherent to wealth management services requires completely
different service offering Model than the existing model for transactional
services. Greatly accustomed in offering commoditized financial services so
far, demand of unconventional form service model poses a big challenge in
charting growth path for these banks

1
CONCEPT OF WEALTH MANAGEMENT

The term wealth management formed with two words “wealth “ &
“management”. the meaning of management they have already seen in the
steering introduction.
The meaning of wealth is - funding,assets,investments and cash and any other
item of similar nature. While defining the wealth management, they have to
think in planned manner. “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 RANGE

The indian market has been segmented by wealth management service

provider into five categories, namely :
1) ultra - high net worth, or Ultra- HNW( in excess of US $30 Million ), will
have a total population of 10,500 households by 2012 2) super- high net
worth (between US $10 Million to $30 Million) will have a total population
of 42000 household by 2012 3) High -net worth (between US$1 Million to
$10 Million) will have a total population of 320000 household by 2012 4)
super affluent (between US $12500 to $ 1million ) will have a total
population 350000 households by 2012 5) Mass affluent(between US $25000
to $125000) will have a total population of 1.8 million household by 2012.
Mass Market (between US $5000 TO $ 25000 ) will have a total population
of 39 million households by 2012.

2
KEY ELEMENTS OF WEALTH MANAGEMENT
SERVICES

Wealth management services involve fiduciary responsibilities in providing

professional investment advice and investment management services to a
client depending on the mandate of the services given to the wealth manager,
wealth management services could be packaged at various levels:

A) Advisory wealth manager’s 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
the behalf of client. He is mandated to make financial planning, implement
investment decisions and manage the investment throughout its life.

3
 FUNCTIONAL AREAS

1) Portfolio strategy definition / asset allocation

2) Strategy implementation

3) Portfolio management - administration, performance evaluation and Analytics

4) Strat Strategy review and modification

5) Financial planning

4
 Kind of Financial Planning

There are two approaches to financial plan:

1. Goal based Financial Plan

The goal-based financial plan can get more complex, when we provide for
multiple goals, with a different asset allocation for each goal, and different
projected returns for each asset class. Goal-based financial plans are a usual
starting point for the investorplanner relationship.

2. Compressive Financial Plan

A comprehensive addresses the above limitations of a goal-based financial

plan. It provides complete information on the overall financial position of the
investor, and how the financial goals will be met periodically. Multiple
formats of Comprehensive Financial Plan are possible, for various situations.

5
Role of Financial Planner/ Wealth Manager
The financial planner’s fundamental role is to ensure that the investors have
adequate money/ wealth for various financial needs/ goals.

While performing this role, financial planners offer some or all of the
following services:

o Preparing a financial blue print for the investors future

o Advice on investment in share market
o Advice on investment in small savings schemes and other debt
instruments
o Advice on investment in mutual funds and other investment products
Suggesting a suitable asset allocation based on risk profile of the invest.
o Management of loans and other liabilities
o Insurance planning and risk management
o Tax planning
o Planning for smooth inheritance of wealth to the next generation.

6
 Systematic Approach to Investing

In the long term, equity share prices track corporate performance. More
profitable a company, higher is likely to be its share price. However, in
shorter time frames, the market is unpredictable. Market fluctuations are a
source of risk for investors. Over the period of time equity has given a better
return than any other source of investments. Hence it is the major investment
avenue in wealth management. Because of this reason investors are advised to
take a systematic approach to investing. This can take any of the following
forms:

1. Systematic Investment Plan (SIP) Systematic Investment Plan is an

investment strategy wherein an investor needs to invest the same amount of
money in a particular mutual fund at every stipulated time period. Though an
SIP, an investor commits to invest a constant amount periodically.

2. Systematic Withdrawal Plan (SWP) SWP refers to Systematic

Withdrawal Plan which allows an investor to withdraw a fixed or variable
amount from his mutual fund scheme on a preset date every month, quarterly,
semi annually or annually as per his needs.

3. Systematic Transfer Plan (STP) STP refers to the Systematic Transfer

Plan whereby an investor is able to invest lump sum amount in a scheme and
regularly transfer a fixed or variable amount into another scheme.

7
BASIC ASPECT OF WEALTH MANAGEMENT
SERVICE

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 complaint with sharia laws)

-behavioral history ( pattern of past investment decisions)

-level of clients engagement in investment management (active/ passive)

-present investment holding and asset mix.

8
Based on 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 among the following :-

Current income growth (capital appreciation) tax efficiency ( tax harvesting)

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, commidity, real estate, 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 avoidant 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 client
expectations.

9
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, 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 (weightage) of each individual
constituent in the portfolio.

10
 DISCIPLINED PORTFOLIO BUILDING APPROACH

• Review investment objective, portfolio progress, asset allocation &

portfolio strategy

• Risk Profiling

• Investment Objective

• Existing Portfolio

• Asset Allocation

• Planning

• Rebalancing existing portfolio

• Tactical Rebalancing

• Maintain asset allocation

• Execution of debt, Equity & other investments

11
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
favorable 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.

12
Strategy Review and Alignment

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.

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.

13
Key Challenging Area

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 cross
functional skills. •

14
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.

15
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.

16
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.

17
Wealth Management Practice Orientation Overview

Transactors:

• Product Expert: Handles high-volume transactions involving

sophisticated products or asset classes, such as foreign exchange derivatives.

• Investment Broker: Handles transactions involving basic asset classes,

such as equities, fixed income and options.

Investment Managers:

• Investment Advisor: Offers strategic investment planning, as well as

playing a hands-on role in constructing, reviewing and rebalancing client
portfolios.
• Relationship Manager: Establishes and nurtures client relationships,
delegating portfolio management to internal or external managers.

Wealth Planners:

• Wealth Planner: Offers holistic advice in accordance with client’s

finances and short/long-term goals, such as real estate, retirement and
generational wealth transfer.

• Personal CFO: Aspires to provide quasi family-office services, often

acting in a lead discretionary role coordinating with the client’s other trusted
advisors.
18
 OBJECTIVES OF STUDY

_ To know the potential market in urban & semi-urban area.

_To know the investor’s preference for investment.

_Investor’s reaction on recession.

_Risk tolerance of people in today’s scenario.

_Investor’s awareness for wealth management services by Bank.

_Process of wealth management service by Bank.

19
 LITERATURE REVIEW

Velmurugan et al (2015) concludes that investment done in various

investment avenues with the expectation of capital appreciation and short and
long term earnings. The basic idea behind investment of all government,
private, self-employed and retired person in this study is to utilize the surplus
money in favourable plans so that the money will be rolled back as well as it
will give high returns also. When a common men thinks about investment he
will never go for any risky plan. In the present scenario the share and gold
market is highly uncertain and unpredictable, so the investor should analyze
the market cautiously and then make investment decision.

Wyman et al (2014) says that digital is a threat to established participants in

wealth management. Younger, technologically-savvy investors have a greater
comfort level with self-directed investing than the older generation of today.
These investors have also grown up in a world where young companies
routinely disrupt older companies— and often create entirely new industries.
As a result, the next generation of investors is likely to have a greater
openness to directing their savings to entities that rely on new models and
different technologies—all at lower cost—than established wealth managers.
But there are also digitally-oriented opportunities for established wealth
managers to deepen their connection with investors through the use of
enhanced communications platforms, while also improving the overall
investor experience. Significantly, technology can also be harnessed to reduce
operating costs—savings that can be passed along as lower fees to investors.

Nayak (2013) in his report says that there has been a significant change
in the levels and density of savings pattern of the rural households because of
the increase in saving opportunities available with a convenient bar. The
increase in the financial institutions like banks, micro finance institutions,
20
SHGs and other local banks provided an opportunity to the rural people to
save more. The increase in awareness among the people for their future
security as through the unforeseen cases like sudden death of a family
member, medical emergency and any other financial crisis, education of their
children, marriage of a family member has made people inclined to save. The
degree of change in savings as compared to urban communities of the rural
households are not much but still has brought a revolution in the pattern of
savings of the rural households.

Schröder (2013) analyzes the responses to a represent survey of wealth

advisors on private wealth management practices, and compares the advisors’
views to academic research in household finance. This study demonstrates
that many wealth managers do not apply novel insights proposed by financial
economists when advising their investors. Many practitioners focus on
managing only the market risk exposure of their investors’ portfolios.
Although financial research has stressed the importance of incorporating
human capital, planned future expenditures and the investment time horizon
into the investor’s asset allocation, these aspects are neglected by most
practitioners.

21
Cognizant Reports (2011) published a report whuch says that India’s wealth
management services sector is largely fragmented, which isn’t surprising
given the industry is still in its early days. Most organized players have so far
focused mainly on the urban segment, leaving untapped about one-fifth of
India’s high net worth individuals (HNWI) population. While early entrants
and established local players have gained trust with potential investors, firms
looking to enter the market will need to invest heavily in brand-building
exercises to convey their trustworthiness. Hence, it is recommended that firms
take a long-term view while evaluating potential return on investment. The
overall outlook and trends in India indicate a huge potential for growth for
new and established wealth management firms.

Lucarelli et al (2011)in this paper proposes a theoretical framework which

sets alternative business models (BMs) in the wealth management industry,
testing them with experimental data. Our “map” of business models arises
when wealth managers (WMs) potentially make a mix of business process
standardization/customization, together with ‘make or buy choices’, after an
external and internal strategic analysis has been carried out. Operational data
support that our business models map can be a reliable instrument both to
describe and to guide the strategic position of WMs.

Sharma (2008-2010) concluded that Indian investors are very conservative

and less risk taker. They prefer to invest their money into safe securities even
they know that they will get the less return on the investment and may be
possible that they could not cover up the inflation rate but still they prefer to
invest in these securities. This is not because they all are risk averse or they
don’t want to get more return but it is because of lack of knowledge and lack
of expertise services in small cities. Investors are not getting the expert’s
services because they are not aware of such kind of services.

Nita et al (2009) examines the features of private banking business

focusing on the substantial growth in private banking over the last decade as
commercial banks have targeted up market high net worth individuals. The
accumulation of wealth has prompted the development of private banking
services for high net worth individuals, offering special relationships and

22
investment services. Private banking is about much more than traditional
banking services of deposits and loans. These kinds of services include:
Protecting and growing assets in the present, providing specialized financing
solutions, planning retirement and passing wealth on to future generations.

Pang et al (2009) says that wealth management strategies for individuals

in retirement, focusing on trade-offs regarding wealth creation and income
security. Systematic withdrawals from mutual funds generally give
opportunities for greater wealth creation at the risk of large investment losses
and income shortfalls. Fixed and variable life annuities forgo bequest
considerations and distribute the highest incomes. A variable annuity with
guaranteed minimum withdrawal benefit (VA GMWB) somewhat addresses
both income need and wealth preservation. Mixes of mutual funds and fixed
life annuities deliver solutions broadly similar to an even more flexible than a
VA GMWB strategy.

Caselli et al(2005) explains the segment of banking services that focus on

families and family-owned businesses, within the private banking business,
by examining synergies among the various financial integrated activities and
by offering ideas on how to develop new business opportunities

23
 RESEARCH METHODOLOGY

“The systematic and objective identification, collection, analysis,

dissemination and use of information for the purposes of assisting
management in decision making relating to the identification and solution of
problems ( and opportunities) in marketing.
It is a way to systematically solve the research problem. In it we study various
steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. It is important for the researcher
not only to understand the research methods and techniques but also the
methodology.

COLLECTING OF DATA
In dealing with any real life problem it is often found that data at hand are
inadequate and hence, it becomes necessary to collect data that are
appropriate. There are several ways of collecting the appropriate data which
differ considerably in context of money costs, time and other resources at the
disposal of the researcher.
“I have taken both primary and secondary data in the project”. Primary data
through questionnaire and secondary data through journals, office documents,
and other sources of published information like website of company. “I have
chosen survey method because of some advantages”.

24
Advantages of Survey Method
(i) Survey is conducted in case of descriptive research studies. Survey –
type research studies usually have larger samples because the percentage of
responses generally happens to be low, as low as 20 to 30 %, especially in
mailed questionnaire studies. Thus, the survey method gathers data from a
relatively large number of cases at a particular time it is essentially cross-
sectional.

(ii) Survey are concerned with describing, recording, analyzing and

interpreting conditions that either exits or exited, The researcher does not
manipulate the variable or arrange for events to happen Survey are only
concerned wit condition or relationships that exits, opinion that are held ,
processes that are going on, effects that evident or trends that are developing .
They are primarily concerned with the present but at times do consider past
events and influences as they relate to current conditions. Thus in survey,
variables that exist or have already occurred are selected and observed.

(iii) Survey is usually appropriate in case of social and behavioral sciences.

Survey is an example of field research. Survey may either be census or
sample survey. They may also be classified as social survey, economic survey
or public surveys. The method of data collection happens to be either
observation, or interview or questionnaire or some projective technique.

(iv) Possible relationships between the data and the unknown in the
universe can be studied through survey.

25
RESEARCH TECHNIQUE

“Structured Questionnaire and personal interview, telephonic interview and

observation research technique was used in the project” Type of questionnaire
“In this project I have used close ended structured questionnaire to collect the
actual view of the consumers and their approach towards the company and
investment decision services”

CONTACT METHOD:- Personal contact method was used: - This is the

most versatile method. The interviewer can ask more question and record
additional observation about the respondent. These are of two forms (i):-
Arranged interviews: Responded are contacted for an appointment and often a
smallpayment or incentive is offered. (ii):-Intercept interview: Involved
stopping people at the shopping mall or busy streetcorner and requesting an
interview. Intercept interview is the gives of Non-probability sample.

“Personal contact method was used: - This is the most versatile method. The
interviewer can ask more question and record additional observation about
the respondent.

26
SAMPLING UNIT: A decision has to be taken concerning a sampling unit
before selecting sample. Sampling unit may be a geographical one such as
state, district, village, etc., or a construction unit such as house, flat, etc., or it
may be a social unit such as family, club, school, etc., or it may be an
individual. “Sampling unit were taken from VILE PARLE (EAST) areas” .
SIZE OF SAMPLE: This refers to the number of items to be selected from
the universe e to constitute a sample a major problem before a researcher; the
size of sample should neither be excessively large, nor too small. It should be
optimum. An optimum sample is one which fulfills the requirement of
efficiency, representativeness, reliability and flexibility, while deciding the
size of sample; researcher must determine the desired precision as also an
acceptable confidence level for the estimate. The size of population variance
needs to be considered as in case of larger variance usually a bigger sample is
needed. The parameter of interest in a research study must be kept in view,
while deciding the size of the samples. Cost too dictates the size of sample
that we draw. As such, budgetary constraint must invariably be taken into
consideration when we decide the sample size. “I have taken 100 people as a
sample size in the project” SAMPLING PROCEDURE:On the representation
basis, the sample may be probability sampling or it may be nonprobability
sampling. “I have used non probabilistic sampling procedure in this project”.
For consumer selection “convenience sampling”.

27
DATA ANALYSIS AND INTERPRETATION

Percentage analysis is one of the descriptive statistical measures used to

describe the characteristics of the sample or population in totality. Percentage
analysis involve computing measures of variables selected of the study and its
finding will give easy interpretation for the reader.

Demographic Analysis Demographics are characteristics of a population.

Characteristics such as race, ethnicity, gender, age, education, profession,
occupation, income level and marital status, are all typical examples of
demographics that are used in surveys.

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A) Data analysis of demographic profile.
1) Analysis of age

Age group No of participants

15 -25 52%
26-35 18%
36-50 22%
More than 50 8%

Interpretation : As shown in the data the respondents from the age bracket 15-
25 consists of 52% of overall age group following by the 18% age group of
26-25, 22% of 36-50, and 8% of 50 above age group.

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2 ) Analysis of gender

Interpretation: The respondents for the survey on the basis of gender resulted
that male respondents are slightly high with 88% than the female respondents
with 12%.

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3) Analysis of occupation

options No of respondents

Self employed 30%

salaried 70%

Home maker -

others -

Interpretation: With respect to occupation, self employed and salaried found

to be the most active in participating for the survey with a responses with
30% and 70%. Others and home makers are not Concerned.

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B) Data analysis of research based profile.

1) Do you aware about wealth management services

provided by bank

In above graph red denoted for no and blue denoted for yes

Interpretation: The above data shows that 86% of surveyed respondents

are aware about wealth management service provided by bank; the remaining
14% respondents not aware about wealth management service provided by
banks which is an issue in this fast growing economy

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2) Do you take advice from financial advisor before investing

Interpretation: in above pie diagram indicates that 22% people usually takes
advice from financial advisor. And 6% maybe takes advice from
Financial advisor. And 54% and 18% people takes advice rarely or not any
respectively.

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3) Do you have any life insurance plan ?

Interpretation: in above pie diagram 88% people having life insurance

policy. And 8% people are looking for take life insurance plan.
And 4% don’t have life insurance plan.

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4) Do you have any proper financial planning?

Interpretation :
Above diagram indicate78% people know about financial planing. And 12%
are looking for this in future. And 10% don’t have any.

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5) What is your primary investment objective

Interpretation : from above diagram we understand that 18% people wants to

earn maximun amount of returns. And 48% want regular income. 12% want
to preserve capital. 14% want inflation adjusted return. and 10% don’t have
any primary investment objective.

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6) What kind of financial planning people opt for?

Interpretation : 66% people having goal oriented financial plan. 20% having
comprehensive financial plan and 14% don’t have any
plan.

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7) which systematic investment plan you have invested?

Interpretation : 66% people invested in SIP , 14% invested in SWP , and

10% want to invest in STP , and 10% don’t want invest in any plan.

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8) What percent of income you invest?

Interpretation :
32% people invest 5% to 15% saving , 56% invest 15 to 25% ,to 30 %
people invest 25% to 30%. while remaining people want to invest more
than 30% saving.

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9) What is your risk profiling ?

Interpretation:

16%of respondent go for extremely risk averse and only

42% respondent are modereately risk averse at same time 16% are ready to
take moderate risk oriented in their investment
and 12% are extremely risk oriented people.

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10) Do you balance uncertainty with various asset mix investments ?

Interpretation: In this graph 80% respondent knows how to balancing

uncertainty with various asset mixes in investment where as only 14% does
not know how to manage uncertainty.

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11 ) Duration you prefer for investment

Interpretation: Horizon is very important will investing in any

investment; here 40% of the respondents prefer medium term investment, on
same hand 24% investors
prefer long term investments but 28% investors invest for short term. And 8%
are not any

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 12) Are you aware of wealth management service by bank?

Interpretation: In this graph 84% respondent knows wealth management services provided
by bank. Where as only 16% does not know about management services provided by bank.

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13 ) Have you read any material on Wealth Management?

Interpretation: 82%respondents haven’t studied any material on wealth

management where as only 14% respondents who belongs basically to related
field of wealth management studied material about wealth management.

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 Limitation

The limitations of the study are those characteristics of design or

methodology that impacted or influenced the interpretation of the findings
from your research.

1. Sample size may not complete representative the universe.

2. Completely relying on the data provided by individual through questionnaire.

3. A failure to use a random sampling technique significantly limits the

ability to make broader generalizations from results.

4. Less geographical reach.

5. Man Power constraint.

6. Lack of face to face communication as large number of survey is done

through google forms.

7. Lack of time to study the border concept.

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 CONCLUSION

The wealth management industry in India is poised for significant

expansion, given the favorable market landscape and expected regulatory
boosts for the sector. This provides exciting growth opportunities which will
drive rapid market expansion, coupled with an increase in the number of
industry participants. To successfully tap into these potential, financial
services organizations must undertake a customized approach, taking into
account the specific variables of the Indian market. This will need to be
supported by cost-effective business model focused on improved
transparency and compliance, partnerships and efficient technology solution

By survey we can say that many individual know the real meaning of wealth
management provided by bank as they interpret it as financial planning. Out
of 100% respondents 88% respondents say that they are aware about wealth
management.

Respondent prefer risk free asset to be in their portfolio like PPF, FD’s, Life
insurance, Gold etc. thus we can say that these are some popular sources other
than saving account.

On an average saving percentage give an outlook of risk that person can beer.
Low saving ratio lead to lower risk & high saving ratio lead to high risk.

Higher the return, higher the risk will be. Mutual funds though given the
higher return in long run than any other asset mix but yet not been preferred
by many of respondents, now a day SIP is more popularizing in mutual fund.
In recent years, the proliferation of wealth management products and
innovative financial services have contributed to the steady growth of wealth
management as an attractive and lucrative service sector within the financial
industry around the world. The constant forward march of technology is
opening new markets in wealth management. At the same time, rapid product
development and changing needs of the investors and globalization of
businesses are posing new challenges for the professionals in wealth
management.

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 BIBLIOGRAPHY

RESERVE BANK OF INDIA:- WWW.RBI.ORG.IN

WWW.GOOGLE.COM

PHILIP KOTLER IN MARKETING MANAGEMENT

WWW.MUTUALFUNDSINDIA.COM

WWW.VALUERESEARCHONLINE.COM

ECONOMIC TIMES

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 ANNEXURE

1 Gender

A. Male
B. Female

2 Age group
A. 15-25
B. 26-35
C. 36-50
D. More than 50

3 Occupation

A. Self employed
B. Salaried
C. Home maker
D. Retired

4 Gross annual income A. 5000 to 10000

B. 10000 to 25000
C. 25000 to 50000
D. 50000 onwards

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5 Do you take advice from financial adviser?

A. Rarely
B. Usually
C. Maybe
D. Not any

6 do you have any life insurance plan

A. yes
B. No
C. Looking for

7 do you have any proper financial planning

A. Yes
B. No
C. Looking for

8 What ids your primary investment objective

A. To earn inflation adjusted return

B. To preserve initial capital
C. To earn regular income
D. To earn maximum amount of return

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9 What kind of financial planning you opt for ?
A. Goal based financial plan
B. Comprehensive based financial plan
C. Not any

10 Which systematic plan you invested in ?

A. SIP
B. SWP
C. STP
D. Not any

11 What percent of income you invest?

A. 5% to 15%
B. 15% to 25%
C. 25% to 30%
D. More than 30%

12 What is your risk profiling

A. Extremely reverse averse

B. Moderately risk averse
C. Extremely risk averse

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13 Do you balance uncertainty with various asset mix investment ?

A. Yes
B. No

14 Duration you prefer for investment

A. Short term
B. Medium term
C. Long term

17 do you know portfolio management services ?

A. Yes
B. No
C. Maybe

18 have you read any material about wealth management?

A. Yes
B. No
C. Maybe

51