PROJECT REPORT

ON

“Wealth Management Analyst Internship”

UNDER THE GUIDANCE OF: Mrs. Mamta Arora

SUBMITTED BY: Christ Paul

Enrollment No. 19010031002

Course, Semester Bachelors of Business Administration, 5th

College logo

Gateway Institute of Engineering and Technology, DCRUST

SECTOR-11, SONIPAT, HARYANA - 131001

 TABLE OF CONTENTS

Page No

Student Declaration…...................................................................................................i

Certificate from Company (If Required).....................................................................................ii

Executive Summary.................................................................iii

CHAPTER-1 (WHAT I LEARNT)......................................................................................................iv

TASKS......................................................................................................v
 ACKNOWLEDGEMENT

The internship opportunity I had with WISE FINSERV was a great chance for learning and

professional development . Therefore I consider myself as a very lucky individual as I was

provided with this opportunity. I am also very grateful for having a chance to connect with so

many wonderful people and professionals who led me through this internship.

I would also like to express my deepest gratitude and special thanks to Mrs. Mamta Arora for

guiding me through the process of being an intern and also enhancing my knowledge base of this

field.

Name of the Student – Christ Paul

Enrollment No. - 19010031002

Class & Section – BBA, 5th sem & ‘A’

 EXECUTIVE SUMMARY

The main aim of the internship was to learn and apply what we had learned. As a wealth
management analyst , the first task at hand was to collect data through different mediums. After
collecting the data , we analysed the data and understood our target audience.The next few tasks
revolved around how we can improve our reach and have an impact on the target audience. And
then towards the tail end of the internship period, our focus was more on financial planning and
creating apt portfolios. We did this by using the value research website and brainstorming on
case studies. To conclude, we learnt everything from the basics to the advance. We started off
with data collection and moved towards sorting it out and analysing it using excel. We learnt
financial planning and how we can design a portfolio. All in all these 2 months of internship
have been a ride filled with skills , knowledge and overall personality development.
 CHAPTER 1

WHAT I LEARNT?
 SECTION-1.1

WHAT IS MUTUAL FUND?

A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Mutual funds are operated by professional money managers, who allocate the fund's assets and
attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios of
equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in
the gains or losses of the fund. Mutual funds invest in a vast number of securities, and
performance is usually tracked as the change in the total market cap of the fund—derived by the
aggregating performance of the underlying investments.
 SECTION-1.2

TYPES OF MUTUAL FUNDS

ON THE BASIS OF STRUCTURE

OPEN ENDED FUNDS

According to the Securities and Exchange Board of India (SEBI), an open-ended fund or scheme
is one that is available for repurchase and subscription continuously. The key feature of open-
ended funds is liquidity. Moreover, these funds do not have any fixed maturity period.

CLOSE ENDED FUNDS

A closed ended fund is an equity or debt fund in which the fund house issues a fixed number of
units at launch. Once the NFO (New Fund Offer) period ends, investors cannot purchase or
redeem units of a closed ended fund......In simple words, a closed ended fund 'closes' after the
launch period until maturity.

INTERVAL

An interval fund is a non-traditional type of closed-end mutual fund that periodically offers to
buy back a percentage of outstanding shares from shareholders.....After all the shares have sold,
the offering is "closed" to new assets—hence, the name. No new investment capital flows into
the fund.

ON THE BASIS OF ASSETS

EQUITY MUTUAL FUND

An Equity Fund is a Mutual Fund Scheme that invests predominantly in shares/stocks of

companies. They are also known as Growth Funds.

DEBT MUTUAL FUND

A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as Corporate
and Government Bonds, corporate debt securities, and money market instruments etc. that offer
capital appreciation. Debt funds are also referred to as Fixed Income Funds or Bond Funds.

HYBRID MUTUAL FUND

As the name suggests, hybrid funds are a combination of equity and debt investments which are
designed to meet the investment objective of the scheme. Each hybrid fund has a different
combination of equity and debt targeted at different types of investors.

SECTION- 1.3

OTHER TYPES OF FUNDS

CONTRA FUNDS

A contra fund is defined by its against-the-wind kind of investing style. The manager of a contra fund bets
against the prevailing market trends by buying assets that are either under-performing or depressed at that
point in time. This is done with the belief that the herd mentality followed by investors on the Street will
lead to mispricing of assets, which will pick up steam in the long run, creating opportunities for investors
to generate superlative returns.

DIVIDEND YEILD FUND

Dividends are an important aspect of investing equity or equity-related instruments. Many companies
share a portion of their profits with their shareholders by declaring dividends. Some companies pay high
dividends while some others don’t declare dividends at all. It is not mandatory for companies to offer
dividends companies choose to declare them to make investing in their stocks more attractive. Here, we
are going to talk about Dividend Yield Mutual Funds and explore some salient features and factors that
you need to know about them.

ELSS

An ELSS is an Equity Linked Savings Scheme, that allows an individual or HUF a deduction from total
income of up to Rs. 1.5 lacs under Sec 80C of Income Tax Act 1961.

Thus if an investor was to invest Rs. 50,000 in an ELSS, then this amount would be deducted from the
total taxable income, thus reducing her tax burden.

These schemes have a lock-in period of three years from date of units allotment. After the lock-in period
is over, the units are free to be redeemed or switched. ELSS offer both growth and dividend options.
Investors can also invest through Systematic Investment Plans (SIP), and investments up to ₹ 1.5
lakhs, made in a financial year are eligible for tax deduction

SEMENTIC FUND OR SEMENTIC VENTURE

Semantic Ventures is a venture capital fund that invests in new rails for data and digital economy.
 SECTION-1.4

CAPITAL GAINS AND ITS TYPES

WHAT IS CAPITAL GAINS?

Capital gain is denoted as the net profit that an investor makes after selling a capital asset exceeding the
price of purchase. The entire value earned from selling a capital asset is considered as taxable income. To
be eligible for taxation during a financial year, the transfer of a capital asset should take place in the
previous fiscal year.

WHAT ARE ITS TYPES?

Depending on the tenure of holding an asset, gains against an investment can be broadly divided into the
following types –

Short term capital gain

If an asset is sold within 36 months of acquisition, then the profits earned from it is known as short term
capital gains. For instance, if a property is sold within 27 months of purchase, it will come under short
term capital gains.

However, tenure varies in the case of different assets. For Mutual Funds and listed shares, Long term
capital gain happens if an asset is sold after holding back for 1 year.

Long term capital gain

The profit earned by selling an asset that is in holding for more than 36 months is known as long-term
capital gains. After 31st March 2017, a holding period for non-moveable properties was changed to 24
months. However, it is not applicable in case of movable assets such as jewelry, debt-oriented Mutual
Funds, etc.

Invest in elss funds

Furthermore, a few assets are considered as short-term capital assets if the holding period is less than 12
months.
 SECTION-1.5

ALL TYPES OF CAPS

LARGE-CAP

These are some of the most stable groups of companies in the market. Consequently, investing in these
companies is the least risky option. However, another important factor to keep in mind is that since these
are stable companies, the return from these companies is comparatively low. Typically, these companies
have reached the pinnacle of their growth, and as a result, there is a lesser chance of any drastic change in
stock prices. However, the low risk accompanied by less aggressive growth makes investment in these
stocks a conservative option.

MID-CAP

Companies which have had a certain growth and are somewhat stable; and yet have immense potential of
growth, come under this group of evaluation by market capitalization. These stocks indicate that a
company is established to a certain extent in its industry, along with the promise of further growth. While
investing in these companies can still be risky since they are not established in their industry, the risk in
investing in their stocks is much less than that of the next group of companies. Subsequently, the return
on them can be potentially higher than those of large-cap stocks.

SMALL CAP

Constituting companies which have the least market cap are the riskiest of all stocks. These are
companies who are budding and are yet to establish themselves in their industry. This makes them highly
risky. Success can sky-rocket their stock prices while failure can lead to a major loss for their
shareholders. These are the most aggressive investment options.
 SECTION-1.6

ASSET ALLOCATION

Asset allocation is an investment strategy that aims to balance risk and reward by dividing an investment
portfolio among different types of asset classes such as equity, fixed income, cash and cash equivalents,
real estate, etc. The theory is that asset allocation helps the investor to lessen the impact of risk their
portfolio is exposed to as each asset class has a different correlation to one another.

IMPORTANCE OF ASSET ALLOCATION

Different asset class move in different directions. All types of asset classes hardly perform in tandem.
One might assume that it is best to invest in mutual funds that is performing really well at a particular
time with an aim to time the market. However, it is quite challenging for any individual to predict in
which direction any asset class would move at any given point of time. For instance, when equities may
be up, gold investment might go down and vice versa. So, it makes sense to allocate investments in a mix
of asset classes. This is done so that if one set of asset classes or funds underperforms, the other asset
classes will balance the underperformance. Investing one’s portfolio in just one asset class or mutual fund
scheme can be extremely risky. However, if an investor’s wealth is spread across asset classes, they tend
to make better returns.
 SECTION-1.7

REBALANCING

Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves
periodically buying or selling assets in a portfolio to maintain an original or desired level of asset
allocation or risk.

For example, say an original target asset allocation was 50% stocks and 50% bonds. If the stocks
performed well during the period, it could have increased the stock weighting of the portfolio to 70%. The
investor may then decide to sell some stocks and buy bonds to get the portfolio back to the original target
allocation of 50/50.

HOW IT WORKS?

Primarily, portfolio rebalancing safeguards the investor from being overly exposed to undesirable risks.
Secondly, rebalancing ensures that the portfolio exposures remain within the manager's area of expertise.
Often, these steps are taken to ensure the amount of risk involved is at the investor's desired level. As
stock performance can vary more dramatically than bonds, the percentage of assets associated with stocks
will change with market conditions. Along with the performance variable, investors may adjust the
overall risk within their portfolios to meet changing financial needs.
 SECTION-1.9

QUANT FUND

WHAT IS QUANT FUND?

A quant fund is an investment fund whose securities are chosen based on numerical data compiled
through quantitative analysis. These funds are considered non-traditional and passive.1 They are built
with customized models using software programs to determine investments.

Proponents of quant funds believe that choosing investments using inputs and computer programs helps
fund companies cut down on the risks and losses associated with management by human fund managers.

HOW IT WORKS?

Quant funds rely on algorithmic or systematically programmed investment strategies. As such, they don't
use the experience, judgment, or opinions of human managers to make investment decisions.3 They use
quantitative analysis rather than fundamental analysis, which is why they're also called quantitative
funds.4 Not only can they be one of many investment offerings supported by asset managers, but they
may also be part of the central management focus of specialized investment managers.

Greater access to a broader range of market data fueled the growth of quant funds, not to mention the
growing number of solutions surrounding the use of big data. Developments in financial technology and
increasing innovation around automation have vastly broadened the data sets quant fund managers can
work with, giving them even more robust data feeds for a broader analysis of scenarios and time horizons.
 SECTION-1.10

NEW TERMINOLOGIES

ALPHA

Alpha is a measure of an investment's performance on a risk-adjusted basis. It takes the volatility (price
risk) of a security or fund portfolio and compares its risk-adjusted performance to a benchmark index.
The excess return of the investment relative to the return of the benchmark index is its alpha.

BETA

Beta, also known as the beta coefficient, is a measure of the volatility, or systematic risk, of a security or a
portfolio, compared to the market as a whole. Beta is calculated using regression analysis and it represents
the tendency of an investment's return to respond to movements in the market.

STANDARD DEVIATION

Standard deviation measures the dispersion of data from its mean. Basically, the more spread out the data,
the greater the difference is from the norm. In finance, standard deviation is applied to the annual rate of
return of an investment to measure its volatility (risk). A volatile stock would have a high standard
deviation. With mutual funds, the standard deviation tells us how much the return on a fund is deviating
from the expected returns based on its historical performance.

SHARPE RATIO

The Sharpe ratio measures risk-adjusted performance. It is calculated by subtracting the risk-free rate of
return from the rate of return for an investment and dividing the result by the investment's standard
deviation of its return.The Sharpe ratio tells investors whether an investment's returns are due to wise
investment decisions or the result of excess risk. This measurement is useful because while one portfolio
or security may generate higher returns than its peers, it is only a good investment if those higher returns
do not come with too much additional risk. The greater an investment's Sharpe ratio, the better its risk-
adjusted performance.
 SECTION-1.11

WHAT ARE SIPS?

A Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by mutual funds
to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount
of money at pre-defined intervals in the selected mutual fund scheme. The fixed amount of money can be
as low as Rs. 500, while the pre-defined SIP intervals can be on a weekly/monthly/quarterly/semi-
annually or annual basis. By taking the SIP route to investments, the investor invests in a time-bound
manner without worrying about the market dynamics and stands to benefit in the long-term due to average
costing and power of compounding.
 TASKS
TASK -1

To write an article on “FINANCIAL LITERACY”.

Link to the article-

https://drive.google.com/file/d/1KvAnGew-alv1eTrUBY8VPzL5lW53D3jv/view?usp=drivesdk

TASK -2

We were asked to put polls on linkedin and maintain data.

Link to excel sheet of that data-

https://docs.google.com/spreadsheets/d/1KpTxITvhXvbhLdcstvc9VQhZcfYR6KUg/edit?usp=drivesdk&
ouid=116985843530986067649&rtpof=true&sd=true

INSIGHTS:

 Most of the people purchases invests in mutual fund by taking advice from there family and
friends.
 Most of the people get advised with respect to the financial planning.
 People’s favourite investment vehicle on the basis of the data are Fixed deposit and Mutual
fund.
 CONCLUSION

I am happy to complete my Internship Program in Wealth Management Analyst. To my own experience

the learning environment of the organization is very inspiring. The course is always keen to implement
new rules and actions for improvement. This Internship helps the students to keep innovating and let them
do their thing according to their interest and will. If this effort goes on than they can able to cover the
untapped markets, increase their distribution reach and which will also ensure future source of business.