1

PROJECT REPORT
ON
“IMPORTANCE OF FINANCIAL PLANNING AND BASICS OF WEALTH
MANAGEMENT.”
SUBMITTED IN PARTIAL FULFILLMENT
OF
POST GRADUATE DIPLOMA IN
MANAGEMENT (AICTE
PROGRAM)

2
 PROJECT REPORT
ON
“IMPORTANCE OF FINANCIAL PLANNING AND BASICS OF
WEALTH MANAGEMENT”
AT
ANAND RATHI WEALTH LIMITED

SUBMITTED IN PARTIAL FULFILLMENT

OF
POST GRADUATE DIPLOMA IN MANAGEMENT
(AICTE PROGRAM)
BY
MR. ONKAR PEDNEKAR
OF
IIEBM,INDUS BUSINESS SCHOOL WAKAD, PUNE – 57

PGDM – 2023-25

3
 TABLE OF CONTENTS

CHAPTER INDEX PAGE

NO NO

Student Declaration 3

Acknowledgment 5

Certificate from the Institute(to be collected from 6

college)
Certificate from the Company 7

1. INTRODUCTION 8-19

2. COMPANY PROFILE 20-24

3 Wealth Management 25-40

3. REVIEW OF LITERATURE 41-43

4. RESEARCH METHODOLOGY 44-48

5. DATA ANALYSIS AND INTERPRETATION 49-54

6. FINDINGS, SUFGGESTIONS AND CONCLUSION 55-59

REFERENCES 60

APPENDICES 60-73
ACHIEVEMENTS
QUESTIONNAIRE
DAILY WORK LOG
WEEKLY PROGRESS REPORT
COMPANY MENTOR
FEEDBACK

STUDENT DECLARATION
4
I, ONKAR PEDNEKAR, student of Post Graduate Diploma in Management Program of Batch
2023-25, bearing Registration Number IBS|10308 do hereby declare that the project report
titled “IMPORTANCE OF FINANCIAL PLANNING AND BASICS OF WEALTH MANAGEMENT.”
submitted under the guidance of DR.VISHAKHA VIDHWANS to IIEBM, Indus Business School
this is my original work and has not been reproduced from any other source.

Name of Student: ONKAR PEDNEKAR Date: 20 August 2024

Signature: Place: Pune

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 ACKNOWLEDGEMENTS

I take this opportunity to convey sincere thanks and gratitude to Dr. Jai Singh and
Dr Poonam Nikam who directly or indirectly helped and contributed towards the
completion of this report.

I take a great opportunity to express my sincere and deep sense of gratitude to Dr. Jai Singh
Marwah, Managing Trustee Indus Business School (IIEBM), Pune. I would also like to express
my gratitude and thanks to Associate Dean Dr. Vishal Bhole and my faculty member CA
Vishakha Vidwans for their guidance. The support and guidance were a great help and It
was extremely valuable. I would like to express my gratitude to them for their constant
support and encouragement.

I would also like to thank the company's mentor, Ms. Sejal Koshta for their support and
encouragement, the unwavering support, insightful guidance, and constant encouragement
from them were truly invaluable. They were always available to answer questions, provide
constructive feedback, and share their wealth of experience.
Their dedication to my growth was evident in the regular check-ins and personalized advice
they offered, pushing me to step out of my comfort zone and strive for excellence. This
nurturing environment not only enhanced my technical skills but also boosted my
confidence, making the internship a profoundly enriching experience.

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CERTIFICATE FROM INSTITUTE

7
CERTIFICATE FROM COMPANY

8
INTRODUCATION
FINANCIAL PLANNING

Whether you're a student or retired, financial

planning is necessary for everyone. The earlier you start
managing your money, the better. Financial planning is a dynamic
process that involves charting an individual’s financial goals.

A financial plan is a comprehensive evaluation of an individual’s

current pay and future financial state by using current known
variables to predict future income, asset values and withdrawal
plans.

This often includes a budget, which organizes a person's finances

and sometimes includes a series of specific milestones or goals for
spending and saving in the future.

This plan allocates future income among different types of expenses,

such as rent or utilities, and also sets aside a portion of income
for short- and long-term savings.

Financial planning is a process that

involves planning an individual's financial goals and long-
term objectives, as well as ways and means to achieve those long-
term goals and objectives.

It includes elements of protection, wealth

creation, emergency and contingency planning, and planning for
specific life stages.

It is important to modify an individual's financial plan according to

different stages of life and the different requirements that come with
a particular stage of life.

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Financial planners are experts in creating financial plans for people.
These financial plans often include cash flow management,
retirement planning, investment planning, financial risk
management, insurance planning, tax planning, and estate planning.

10
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 investor- planner
relationship.

2. Compressive Financial Plan

A comprehensive address 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.

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Indian financial plan
• Build a monthly budget -The most important and basic financial plan is a strategy to
manage money.

And it should start by making a monthly budget.

Consider these simple steps:

1. List your various sources of income (salary, rental income, etc.);

2. Look at your essential expenses like groceries, medicines, and other expenses like travel,
clothing, and entertainment, and allocate your income accordingly.

3.Make sure you have funds set aside for emergencies, savings, and investment goals.

4.Once you have assigned money, monitor and save the cost so that you do not exceed your
budget.

This helps to regulate your costs and stay within the limits.

• Tax planning: Financial advisors often assist their clients with specific tax issues and can
also determine how to maximize tax refunds and minimize tax liability.

Some advisors also help you prepare your taxes and file your annual tax returns.

• Create a long-term financial plan. One of the key goals of financial planning is
to achieve your future financial goals.

Therefore, it is important to find out your financial goals and calculate the funds you need,
taking into account the timeline and the corresponding inflation rate. After you have
decided on your financial goals like education, retirement, etc., you can set goals for
different stages of your life and make a long-term financial plan to achieve your goals by
systematically taking loans, saving and investing.

• Diversify your portfolio – One of the most important steps in financial planning is to
diversify your portfolio.

Depending on your lifestyle and future family goals, you need to invest in different types of
products to secure your investment.

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• Start early savings and investment -If you start early, you can use the biggest financial
benefit of savings and investment plans. The faster you start, the more time you can and the
more returns.

Furthermore, when you are young, you can reduce the financial duty of your family's
financial obligations, invest more discipline, and permeate them regularly.

Use a financial plan to determine the investment period according to the necessary
funds, the amount required to invest every year, and the expected criteria
for the profit of the investment.

• Retirement planning: you probably want to stop working one day. Retirement planning
services help you prepare for this day.

They ensure that you have enough money saved to live the lifestyle you want in retirement.

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Roles of Financial Planner

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:
 Preparing a financial blue print for the investor’s future
 Advice on investment in share market
 Advice on investment in small savings schemes and other debt instruments
 Advice on investment in mutual funds and other investment products
 Suggesting a suitable asset allocation based on risk profile of the investors
 Management of loans and other liabilities
 Insurance planning and risk management
 Tax planning
 Planning for smooth inheritance of wealth to the next generation.

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Life Cycle

1.A person goes through different stages in the life cycle, such as:

2. Young and single

3. Young and married, no kids

4. Married with young children

5. Married with older children

6. Retirement

Position on the life cycle determines the kinds of challenges the investors is likely to face
and therefore the approach to financial planning.

For instance, younger investors have the entire earning cycle ahead of them.

Their insurance needs will increase.

For those with dependents, it is important to have the right life insurance to
protect them against premature death.

Saving and spending habits are formed at a young age and Systematic Investment Plans
(SIPs) are a good way to ensure that investors do not waste money.

They need to know how to save a comfortable future provision.

Parents with young children need to be prepared for an important exit for education,
marriage, or requirements for other children.

It is also necessary to plan retirement not only for financial assets, but also for
companies that may not be available in the future, such as medical re -
exemption, accommodation, cars, and club facilities.

If the salary or business revenue stops after retirement, investors should be aware of taking
risks.

At a younger age, the investors can take greater risk.

Asset Allocation is a key decision across the life cycle of the investors.

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Wealth Cycle
As with life cycle, the position of the investor on the wealth-cycle changes over time. The
key stages are:

Wealth
Accumulation

Wealth Preservation

Wealth Distribution

A systematic approach to investing: Over the long term, stock prices reflect business
performance: the more profits a company makes, the higher its stock price is likely
to be. However, markets are unpredictable in the short term and market fluctuations are a
source of risk for investors.

During the period, capital has made better profits than any other investment resource.

Therefore, this is a major investment in asset management.

For this reason, investors are advised to adopt a systematic approach to investing.

This can take one of the following forms:

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1. Systematic Investment Plan (SIP): - Systematic Investment Plan is an investment
strategy in which an investor has to invest the same amount of money in a particular mutual
fund in every stipulated period.

Through an SIP, an investor commits to investing a constant amount periodically,

2. Systematic Withdrawal Plan (SWP):- SWP refers to the systematic withdrawal plan which
allows an investor to withdraw a fixed or variable amount from his mutual fund on
a predefined date every month, quarter, half-year or year as per his requirement.

3. Systematic Transfer Plan (STP): STP refers to a systematic transfer plan where an
investor can invest a lump sum in a scheme and periodically transfer a fixed or variable
amount to another scheme.

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Risk Profiling
The more risk-oriented investor is having greater risk so the exposure that can be suggested
to risky assets. In general, equity is viewed as the risky asset, while debt is considered the
safer asset. Gold protects the portfolio in extremely adverse situations, where both debt
and equity under-perform. Real estate is an illiquid asset that can grow over time, and also
give rental income. Debt, Equity, Gold and Real Estate are asset classes.
In Risk Profiling Investor data analysis including positioning on the Life Cycle and Wealth
Cycle which will suggest the investor's risk profile. Planners classify their investors into
groups, such as

1.Extremely risk averse:

The term "risk averse" refers to investors who choose capital preservation over
the possibility of above-average returns. In investing, risk equals price fluctuation.

Volatile investments can make you rich or eat away at your savings.

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2. Moderately risk averse:

A risk averse investor is one who prefers a low return from known risk over a high return
from unknown risk. In other words, among various investments offering the same
return at different levels of risk, this investor will always prefer the alternative that offers
the lowest interest rate.

3. Risk Neutral:

Risk neutral is a term used to describe the attitude of someone who can
evaluate investment options.

A person who focuses only on potential benefits, regardless of risk, is said to be

risk neutral.

4. Focused on the risk moderately:

Mid -level risk investors are ready to accept the market volatility period in exchange for
the possibility of receiving income.

This means that investors want to make good profits, but he is inconvenient to take risks.

5. Very suitable for risk:

Simply put, it is a unique risk measurement that is likely to be accepted by people.

This influences their approach to decision-making, change, conflict and virtually any
situation they encounter in the workplace.The Risk Orientation Model is the basis of the
QO2™ concept and defines the five subscales used to calculate the QO2™.

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Financial Planning for Wealth Management
The purpose of financial planning is to ensure that assets and cash flows are sufficient to
achieve the investor's financial goals.

For wealth investors, asset adequacy is not an issue.

Investors hold assets, but if not invested properly, cash flow (liquidity) can become an issue.

Asset managers try to understand what investors want from their assets.

grow your wealth by being willing to take risks; consolidate your wealth by adopting a
conservative approach to risk; or preserve your wealth while avoiding risk as much
as possible.

A different asset allocation would be appropriate for each of these profiles.

Wealth management is the creation, accumulation, preservation and realization of wealth.

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COMPANY PROFILE
ANAND RATHI WEALTH LIMITED

ORGANIZATION HISTORY

Company Profile

Milestones

AR Core Strengths

Management Team

About Anand Rathi Wealth Limited

Anand Rathi (AR) is a leading full service securities firm providing the entire gamut of
financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has a pan India
presence as well as an international presence through offices in Dubai and Bangkok. AR
provides a breadth of financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage & distribution of equities, commodities,
mutual funds and insurance, structured products - all of which are supported by powerful
research teams.

The firm's philosophy is entirely client centric, with a clear focus on providing long term
value addition to clients, while maintaining the highest standards of excellence, ethics and
professionalism. The entire firm activities are divided across distinct client groups:
Individuals, Private Clients, Corporate and Institutions and was recently ranked by Asia
Moncy 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich.

In year 2007 Citigroup Venture Capital International joined the group as a financial partner.

Milestones

1994:

Started activities in consulting and Institutional equity sales with staff of 15

1995:

Set up a research desk and empanelled with major institutional investors

1997:

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Introduced investment banking businesses

Retail brokerage services launched

1999:

Lead managed first IPO and executed first M & A deal

2001:

Initiated Wealth Management Services

2002:

Retail business expansion recommences with ownership model

2003:

Wealth Management assets cross Rs1500 crores

Insurance broking launched

Launch of Wealth Management services in Dubai

Retail Branch network exceeds 50

2004:

Commodities brokerage and real estate services introduced

Wealth Management assets cross Rs3000crores

Institutional equities business re-launched and senior research team put in place

Retail Branch network expands across 100 locations within India

2005:

Real Estate Private Equity Fund Launched Retail Branch network expands across 200
locations within India
2006:

AR Middle East, WOS acquires membership of Dubai Gold & Commodity Exchange (DGCX)

Ranked amongst South Asia's top 5 wealth managers for the ultra-rich by Asia Moncy 2006
poll

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Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Net
worth Individuals (HNI) Category

Ranked 9th in the Retail Category having more than 5% market share

Completes its presence in all States across the country with offices at 300+ locations within
India

2007: Citigroup Venture Capital International picks up 19.9% equity stake

Retail customer base crosses 100 thousand

Establishes presence in over 350 locations

AR Core Strengths

Breadth of Services

In line with its client-centric philosophy, the firm offers to its clients the entire spectrum of
financial services ranging from brokerage services in equities and commodities, distribution
of mutual funds, IPO's and insurance products, real estate, investment banking, merger and
acquisitions, corporate finance and corporate advisory.

Clients deal with a relationship manager who leverages and brings together the product
specialists from across the firm to create an optimum solution to the client needs.
Management Team

AR brings together a highly professional core management team that comprises of

individuals with extensive business as well as industry experience.

In-Depth Research

Our research expertise is at the core of the value proposition that we offer to our clients.
Research teams across the firm continuously track various markets and products. The aim is
however common to go far deeper than others, to deliver incisive insights and ideas and be
accountable for results.

Management Team

The senior Management comprises a diverse talent pool that brings together rich
experience from across industry as well as financial services.

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Mr. Anand Rathi - Group Chairman Chartered Accountant

Past President, BSE Held several Senior Management positions with one of India's largest
industrial groups

Mr. Pradeep Gupta - Vice Chairman Plus 17 years of experience in Financial Services

Mr. Amit Rathi - Managing Director Chartered Accountant & MBA Plus 11 years of
experience in Financial Services

ACQUISITION:

ANZ Grind lays : $ 1.34 bn from August 2000.

Hong Kong Consumer Bank: $1.32 bn

Thailand Nakornthan Bank: $320 million

Indonesians Bank Per-Mata : $366 million from Oct. 2004.

Korea First Bank : $ 3.3 bn from Apr. 2005.

Standard Chartered PLC is listed on both the London Stock Exchange and the Stock Exchange
of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalization. Top 100
companies list, no other bank present except Bank of America's position 69th and position
of standard chartered bank is 74th.

Offices of ANANDRATHI are in 197 cities across 28 states & it has also branches in Dubai &
Bangkok with more than 44000 employees. It has daily turnover in excess of Rs.4bn. It has 1,
00,000+ clients nationwide. It is also leading distributor of IPO's.

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In India where ANAND RATHI is present in 21 STATES:

Andhra Pradesh

Assam

Bihar

Chhattisgarh

Delhi

Goa

Gujarat

Haryana

Jammu & Kashmir

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Orissa

Punjab

Rajasthan

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Wealth definition

Wealth usually refers to money, property, or anything of economic value. It is the state
of abundance of things of value and the accumulation of those things. The use of the word
itself assumes some socially-accepted means of identifying objects, land, or money
as \"belonging to\" someone, i.e. a broadly accepted notion of property and a means of
protection of that property that can be invoked with minimal (or, ideally, no) effort and
expense on the part of the owner.

Concepts of wealth vary among societies.

Anthropology characterizes societies based, in part, on their concept of wealth and the
institutional structures and power used to protect that wealth.

We define several types below.

They can be seen as evolutionary progress: industrialization emphasized the role

of technology; Many jobs have been automated.

Cars replaced some employees, while other employees became more specialized.

Specialization of labor has become essential for economic success, but so-called physical
capital, consisting of natural capital (the raw materials from nature) and infrastructural
capital (the technologies that enable development), is central to the analysis of wealth.

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Wealth Management
INTRODUCTION
Wealth, like your health, must be carefully preserved. Your assets must be protected
from the potential threats of erosion due to taxation, the effects of inflation and investment
risks. No matter what your wealth level is, there is no problem to make a decision Prepare a
strategy for rejection of risk. Risk avoidance is a reasonable and rational strategy for
everyone Who is convinced that they have enough to secure their families future.

Introduction
Like health, wealth must be carefully preserved. Your assets must be protected
Potential threats of erosion due to taxation, inflation and investment impacts
Risks. Regardless of your wealth level, there is nothing wrong with deciding to develop a risk
aversion strategy. For those who believe they already have enough money to provide for
themselves and their family in the future, risk aversion is a smart and sensible strategy.

Introduction

Just like your health, your inheritance must be carefully preserved. Your assets need to be
protected against potential threats such as erosion by taxation, the effects of inflation and
investment risks. No matter your wealth level, there is nothing wrong with
deciding to develop a risk-avoidance strategy. Risk aversion is a smart and prudent strategy
for those who believe they already have enough money to support themselves and
their families in the future.

Wealth management as a concept originated in the United States in the 1990s.

It is essentially an investment advisory business that includes financial

planning and provides private banking, asset management, tax advisory and
portfolio management services to individuals. Warren Buffett is the world's most
successful investor. He said, "The fundamental idea of investing is to treat stocks like a
business, to take advantage of market fluctuations and look for a margin of safety." Ben
Graham taught us that.

100 years from now, they will still be the cornerstones of investing. He is also known as a
wealth creator. 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.

Investors work with a single wealth management firm that coordinates input from financial
experts and may also include coordinating advice from the investor's lawyers,
accountants, and insurance agents. Some asset management companies also offer banking
or advisory services.

27
In other words, it's essentially investment advice, or assistance with managing an
individual's financial needs.

These services are provided to investors in packages to guarantee the advantages of

the two major purposes, the growth and security of existing investments.

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Asset Allocation
Times have changed, and so has thinking.It’s important to recognize the power of asset
allocation at all times, including in challenging times. Investors are
now placing more emphasis on asset allocation and investment planning with long-term
financial goals in mind. Asset allocation refers to the process of allocating
investments to different asset classes. Asset allocation involves spreading your
money across different types of investment categories like stocks, bonds, gold, real estate,
cash, etc. The aim is to reduce risk and optimize returns.
The purpose of asset allocation is to create the optimal mixture of the asset class that can
be evaluated while reaching the level of risk tolerance and financial goals.

Most investors add bonds to reduce the risk of volatility and decrease in basic
portfolios. With real bond yields low and inflation rising, investors may not be able to
achieve some of their long-term financial goals. An individual's goal may be to send their
child to college in five years or to buy a home in ten years. Categories with different assets
will be from risks -return profiles.

For example, stocks provide both growth and income, but bond tools guarantee capital
and sustainable income. You can combine the benefits of different asset classes into a
portfolio with an acceptable level of risk.Creating a well-diversified portfolio helps you avoid
the risks associated with putting all your eggs in one basket.

There's no simple formula for finding the right asset allocation for each individual, but most
financial experts agree that asset allocation is one of the most important decisions an
investor makes. Your selection of individual securities is secondary to the way you allocate
your investment instocks, bonds, and cash and equivalents, which will be the principal
determinants of your investment results.

Asset allocation decisions depend on the following factors:

- Time frame

- Risk tolerance

- Personal circumstances

- Liquidity needs

- Tax consideration

Different asset classes perform well in varied economic and market scenarios.

Analysts interpret leading indicators and try to predict the likely trajectory of the market,
however, it is impossible to predict the market with certainty.

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An approach to balancing uncertainty is to invest across a range of asset classes,
ensuring that some asset classes in your portfolio will perform well and others will not.
This allocation of investment portfolio among asset classes is called "asset allocation".
Relevance of "Risk Profiling" in financial planning process:
Investors have different life stages and risk profile may vary at each stage of life. Risk
profiling helps investors find suitable asset allocation strategy at different stages of life.
Like a fingerprint, people's investment profile is always unique.
Age, life stage, income, savings, dependents and mind-set are the factors that define an
individual's attitude towards investing. Ability to take risks

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Types of Asset allocation

Strategic Asset Allocation: -

The strategic distribution of assets is a portfolio strategy, investors set a variety of asset
classes and rebalancing target allowances, and regular distributions are the factors such
as risk, time, and investment investors. Based on. In other words, allocating among asset
classes based on the investor's risk profile is called "strategic asset allocation".

Tactical Asset Allocation:-

Risk-seeking investors make asset allocation decisions based on their view of the market.
When they fell, the market is underestimated, they increase their effect on
capital. They get out of their investments in shareholder capital when the opinion is that
the market is overheating.This investment approach is called "Tactical Asset Allocation".

Flexible Asset Allocation:-

Flex funds are mutual funds or other pooled investments that offer
greater flexibility in investment decisions and allocations. Flexible funds usually target a
specific set of securities. However, they may be able to invest in any type of asset.
Flexible funds usually do not have underlying investment criteria or requirements that the
portfolio manager must follow. This gives portfolio managers a broader investment
universe to choose from.

It also allows managers to allocate investments more actively, based on opportunity

and market conditions rather than specific investment requirements

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Investment Avenues
Investment Avenues are different ways that you can invest your money. Following
investment avenues that are considered in this report are as follows

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Some important areas of investment are discussed below:

1. Mutual Funds:-

A mutual fund is an investment vehicle that consists of a pool of money collected from many
investors for the purpose of investing in securities such as stocks, bonds, money
market instruments, and similar assets.

Mutual funds are operated by money managers, who invest the fund\'s capital and attempt
to produce capital gains and income for the fund\'s investors.

A mutual fund\'s portfolio is structured and maintained to match the investment objectives
stated in its prospectus.

2. Life of life insurance: -

Insurance is the protection of the loss of income caused when the

insured dies. The designated beneficiary will receive the benefit and be protected from the
financial consequences of the insured's death. The purpose of life insurance is to provide
a certain level of financial security to the family after the insured passes away.

Therefore, before purchasing life insurance, you should consider your financial situation and
the standard of living you want to maintain for your dependents and surviving family
members.

3. Bonds and Bonds:-

Bonds are a type of debt instrument that is not backed by physical assets or collateral.
Bonds are backed only by the general creditworthiness and reputation of the issuer.
Corporations and governments often issue these types of bonds to provide capital. Like
other types of bonds, debentures are documented in the trust indenture.

There are two types of debts.

It is a conversion and non -convergination.

Obligations are investments in debt in which investors give money to subjects (generally the
company or government), which borrow certain periods of variables or fixed
interest rates. Bonds are used by corporations, local, state, and sovereign governments to
raise capital and fund a variety of projects and activities.

4. Stock Market: -

The stock market is one of the most important areas of a market economy as it provides
businesses with access to capital and investors with a stake in a company with the potential
to make profits based on its future performance.

33
Securities traded in the stock market can be either public stocks listed
on a stock exchange or private stocks.

5. Commodity Market:

A physical or virtual market for the purchase, sale and trading of raw or
primary commodities. For investors, there are currently around 50 major commodity
markets around the world facilitating investment in around 100 major commodities.
Goods are divided into two types: hard goods and soft goods. Hard commodities are
typically natural resources that need to be mined or extracted (gold, rubber, oil,
etc.), while soft commodities are agricultural products or livestock (corn, wheat, coffee,
sugar, soybeans, etc.)

6. FOREX Market: -

FOREX is a market where currencies are traded.

The foreign exchange market is the largest and most liquid in the world, with average daily
trading volumes reaching trillions of dollars. It includes all global currencies. There is no
central market for foreign exchange, and exchange is conducted over-the-counter.

Foreign exchange transactions are carried out in spot or forward form.

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EXPLAINING IN DETAILS
• Life Insurance

Life insurance is an insurance contract offered by an insurance company, which, in

exchange for premiums, is obligated to pay a certain amount (lump sum or a small amount)
upon the death of the beneficiary. The insured. Since taking out life insurance is essentially
planning for life after death, life insurance is literally about life and death.
When people are healthy and wealthy, no matter what their situation, they don't
want to think about the fact that they will die someday. But planning for after life is just as
important as planning for other important life activities. By paying a very small amount of
money, a person can financially protect themselves and their family from mishaps. Life
insurance can provide financial support to family dependents and in some cases, create a
legacy. Factor to Consider Before Buying a Life Insurance Policy Before buying a life
insurance policy, it is always important to find out why I want to buy insurance and for what
purpose. How much coverage do I need comes second.
Here are some factors to consider:

•Age and number of dependents.

•Annual income and annual expenses.

•Outstanding debts like mortgage, car loan etc.

Investments and savings.

• Living expenses.

You will need money in the future.

1. Term insurance:
as the name suggests, covers you for a specific period of
time and is the cheapest insurance plan available.You can choose a coverage period of up to
35 years. The payout is a fixed amount that does not increase over the term. In the
event of premature death, your dependents will receive the benefit amount set out in the
term life insurance policy. Limited term policies cover only the risk for the selected term
period.If the policyholder outlives the term, the risk coverage ends. A person can renew
most limited term policies for one or more terms, even if their health condition changes.
Every time a policy is updated in a new term, the Meyrin Bonus increases.

If a policy owner experiences political terms, people do not have the right to spend.
Insurance companies hold the total insurance premium paid during the police
period.Therefore, such a policy does not have any savings or investment factors. This is
a 100% risk coverage. It simply means that a person pays a certain premium to protect his

35
family from his sudden death.If you exceed the policy term, you lose the benefit, which
explains why term insurance policies are the lowest cost.

2. Whole Life Insurance

Whole life insurance policies do not have a fixed end date for the policy; only the death
benefit exists and is paid to the designated beneficiary.

In a whole life insurance plan, the risk is covered for the entire life of the
policyholder, regardless of when it happens, which is why they are called whole
life insurance policies.

The policy holder does not have the right to make money in his life or life.

In other words, survival has no advantage. This plan is ideal if the property remains. Primary
advantages of Whole Life Insurance are guaranteed deathbenefits, guaranteed cash values,
and fixed and known annual premiums.This policy, however, fails to address the additional
needs of the insured during his post-retirement years.

It doesn\'t take into account a person\'s increasing needs either.

If the insured takes out a contract at a very young age, his requirements will increase
over time, and at the time of his death the sum insured will be too low to cover the needs
of his family.

Due to these shortcomings, insurance companies are now offering either a modified whole
life insurance policy or combining it with another type of policy.

•ULIP
Unit Linked Insurance Plan (ULIP) is a life insurance solution that offers the benefits of
risk protection and investment flexibility.

The investments are designated in the form of units and are represented by the
value achieved, called Net Asset Value (NAV).

The sum assured fluctuates from time to time depending on the value of the underlying
assets at that time.

In a ULIP, the investment amount of premium after deducting all fees and risk
cover premiums under all insurance policies of a particular fund selected by the policyholder
is pooled to form a unit fund.

Units are the fund component in a unit-linked insurance contract.

Returns in ULIPs depend on the performance of the fund in the capital market.

36
ULIP investors have the option to invest in various schemes like diversified equity
funds, balanced funds, debt funds etc.

It is important to remember that in a ULIP, the investment risk is usually borne by

the investor.
In ULIPs, investors can choose to invest a lump sum (lump sum) or pay
the premium annually, half-yearly, quarterly or monthly.
Investors also have the option to change the premium amount during the contract tenure.
For example, if an individual has excessive funds, he can improve the contribution of
Ulip.Contiformes, individuals facing the tightening of fluidity may be paid in the upstream
(his).
The difference is adjusted by the accumulated value of ULIP).
ULIPINVESTORS can move investment through various plans /asset classes (diverse
compensation, balanced funds, debt fund) at nominal expenses.

• Equity fund

Action fund is considered to be the most dangerous fund than other types of funds,
but also provides higher yields than other funds.

An investor wishing to invest in an equity fund is advised to invest for the long term, i.e. 3
years or more.

There are different types of equity funds, each with different risk profiles. In descending
order of risk level, the following types of equity funds are distinguished:

Aggressive growth funds -

In aggressive growth funds, fund managers seek maximum capital growth and invest in
less sought-after speculative stocks.

Due to these speculative investments, aggressive growth funds become more volatile and
therefore subject to a higher risk than other equity funds.

Growth Funds -

Growth funds also invest for capital appreciation (with a 3-5 year time horizon), but
they differ from aggressive growth funds in that they invest in companies that are expected
to outperform the market in the future.

While not entirely speculative, growth funds invest in companies that are
expected to produce above-average returns in the future.

37
Specialized Funds :

Specialized funds have defined investment criteria and

their portfolio only includes companies that meet these criteria.
The criteria of some specialized funds may be to invest or not to invest in particular
regions/companies.Speciality funds are concentrated and thus, are comparatively riskier
than diversified funds..

There arefollowing types of speciality funds:

Sector Funds:

Equity funds that invest in a particular sector/industry of the market areknown as Sector
Funds. The impact of these means is limited by the
specific sector (Sayinformation Technology, because, Banking, Pharmaceuticals or Rapidly
replaces Consumer Products), they are therefore more risky than the action funds that
invest in many sectors.

Freedom of foreign securities:

The action funds for foreign securities have the opportunity to invest in one or more foreign
companies.

Foreign securities funds have the benefit of international diversification and therefore are
less risky than sector funds, but are still exposed to currency and country risks.

Midcap or Small cap Funds:

Funds that invest in companies with lower market capitalization than largecap companies
are called midcap or smallcap funds.

Midcap stocks have a lower market capitalization than large blue chip companies
(less than Rs 2,500 crore and more than Rs 500 crore) and smallcap stocks have a
market capitalization below Rs 500 crore.

The market capitalization of a company can be calculated by multiplying the market price of
the company's shares with the total number of shares outstanding in the market.

Mid-cap and small-cap stocks are not as liquid as large-cap stocks,

leading to fluctuations in the share prices of these companies and making investments risky.

• Mutual funds

Mutual funds allow a group of people to pool their funds and have them professionally
managed according to pre-determined investment objectives.

38
This type of investment is popular due to its cost-effectiveness, risk diversification,
professional management, and strong regulation.

People can invest as much as rupees.

1000 perermant of common investment fund.

The general and theme investment funds are different, and risk and yields are different.

Common investment funds are trusted that combines savings from many investors who
share Acomon's financial goals. The funds thus collected are then invested in capital market
instruments like stocks, bonds, other securities etc.

The income received and capital gains realized thanks to this investment are divided by the
unit.

shareholders in proportion to the number of shares they own.

Thus, a mutual fund is the most appropriate investment for ordinary people, as it
offers the opportunity to invest in a diversified basket of securities managed by
professionals at a relatively low cost.

The flow chart below provides a general outline of how a mutual fund works.

Types of Mutual Funds Scheme in India

Wide variety of Mutual Fund Schemes exist to cater tothe needs such as financial position,
risk tolerance and return expectations etc. The tablebelow gives an overview into the
existing types of schemes in the Industry

By Structure
 Open-Ended Scheme
 Close – Ended Scheme

By Investment Objective
 Growth Scheme
 Income Scheme
 Balanced Scheme
 Money Market Scheme

Other Scheme
 Tax saving scheme
 Special Scheme
 Index Scheme
Debt/Income Funds

39
Funds that invest in medium to long-term debt instruments issued by private companies,
banks, financial institutions, governments and other entities belonging to various sectors
(like infrastructure companies etc.) are known as Debt/Income Funds. Debt funds are low
risk profile funds that seek to generate fixed current income (and not capital appreciation) to
investors. In order to ensure regular income to investors, debt (or income) funds distribute
large fraction of their surplus to investors. Although debt securities are generally less risky
than equities, they are subject to credit risk (risk of default) by the issuer at the time of
interest or principal payment. To minimize the risk of default, debt funds usually invest in
securities from issuers who are rated by credit rating agencies and are considered to be of
"Investment Grade". Debt funds that target high returns are more risky. Based on different
investment objectives, there can be following types of debt funds:

Diversified Debt Funds - Debt funds that invest in all securities issued by entities belonging
to all sectors of the market are known as diversified debt funds. The best feature of
diversified debt funds is that investments are properly diversified into all sectors which
results in risk reduction. Any loss incurred, on account of default by a debt issuer, is shared
by all investors which further reduces risk for an individual investor.
Focused Debt Funds Unlike diversified debt funds, focused debt funds are narrow focus
funds that are confined to investments in selective debt securities, issued by companies of a
specific sector or industry or origin. Some examples of focused debt funds are sector,
specialized and offshore debt funds, funds that invest only in Tax Free Infrastructure or
Municipal Bonds. Because of their narrow orientation, focused debt funds are more risky as
compared to diversified debt funds. Although not yet available in India, these funds are
conceivable and may be offered to investors very soon.

High Yield Debt funds - As we now understand thatisk of default is present in all debt funds,
and therefore, debt funds generally try to minimize the risk of default by investing in
securities issued by only those borrowers who are considered to be of "investment grade".
But, High Yield Debt Funds adopt a different strategy and prefer securities issued by those
issuers who are considered to be of "below investment grade". The motive behind adopting
this sort of risky strategy is to earn higher interest returns from these issuers. These funds
are more volatile and bear higher default risk, although they may earn at times higher
returns for investors.

Gilt Funds

40
Also known as Government Securities in India, Gilt Funds invest in government papers
(named dated securities) having medium to long term maturity period. Issued by the
Government of India, these investments have little credit risk (risk of default) and provide
safety of principal to the investors. However, like all debt funds, gilt funds too are exposed to
interest rate risk. Interest rates and prices of debt securities are inversely related and any
change in the interest rates results in a change in the NAV of debt/gilt funds in an
opposite direction.

 Money Market / Liquid Funds

Money market / liquid funds invest in short-term (maturing within one year) interest bearing
debt instruments. These securities are highly liquid and provide safety of investment, thus
making money market / liquid funds the safest investment option when compared with
other mutual fund types. However, even money market / liquid funds are exposed to the
interest rate risk. The typical investment options for liquid funds include Treasury Bills
(issued by governments), Commercial papers (issued by companies) and Certificates of
Deposit (issued by banks).

 Commodity Funds
Those funds that focus on investing in different commodities (like metals, food grains, crude
oil etc.) or commodity companies or commodity futures contracts are termed as Commodity
Funds. A commodity fund that invests in a single commodity or a group of commodities is a
specialized commodity fund and a commodity fund that invests in all available commodities
is a diversified commodity fund and bears less risk than a specialized commodity fund.
"Precious Metals Fund" and Gold Funds (that invest in gold, gold futures or shares of gold
mines) are common examples of commodity funds.

 Real Estate Funds

Funds that invest directly in real estate or lend to real estate developers or invest in
shares/securitized assets of housing finance companies, are known as Specialized Real Estate
Funds. The objective of these funds may be to generate regular income for investors or
capital appreciation.

41
CHAPTER-3
LITERATURE REVIEW
Wealth management is a comprehensive approach to financial planning and investment
management aimed at optimizing the wealth of individuals and families. This literature
review provides an overview of the key concepts, theories, and best practices related to
wealth management. The purpose is to present a comprehensive understanding of the
subject and inform the project report on wealth management. There is some review on
Wealth Management is taken from different books & authors are given below: -
BY BOOKS: -
Wealth Management and Financial Planning:
Wealth management involves the integration of financial planning and investment
management to achieve the long-term financial goals of individuals. It encompasses various
aspects such as retirement planning, tax planning, estate planning, and risk management.
The literature in this area emphasizes the importance of aligning investment strategies with
individual goals and risk tolerance.

Portfolio Management and Asset Allocation:

Asset allocation is a critical component of wealth management, where investments are
allocated across different asset classes to achieve diversification and risk management. The
literature highlights the role of modern portfolio theory in asset allocation and the use of
techniques such as mean-variance optimization and risk-adjusted returns in portfolio
construction
Investment Strategies and Financial Markets:
The literature on investment strategies in wealth management covers a range of approaches,
including active versus passive management, value investing, growth investing, and factor-
based investing. It explores the impact of market efficiency, behavioural biases, and
macroeconomic factors on investment decision-making.
Risk Management and Wealth Preservation:
Effective risk management is crucial in wealth management to protect capital and preserve
wealth. The literature discusses various risk management strategies, including
diversification, hedging, and the use of alternative investments. It also examines the role of
insurance, estate planning, and asset protection in mitigating risks
Behavioural Finance and Investor Psychology:
Understanding investor behaviour and psychology is essential for wealth managers. The
literature on behavioural finance explores cognitive biases, emotional decision-making, and
herd behaviour that influence investment choices. It provides insights into the application of

42
behavioural finance principles in wealth management, such as goal based investing and
investor education.
AUTHORS:-
Caselli et al (2005) (A New Challenges for Wealth Management):- 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
Clustering Indian stock market data for portfolio management, Author links open overlay
panel, S.R. Nanda, B. Mahanty, M.K. Tiwari (6 July 2010):- In this section, portfolio
management and clustering techniques are briefly reviewed. We found that the problem of
efficient frontier can be solved more efficiently by clustering the stocks and then choosing to
enhance the criteria of diversification. We propose clustering of high dimensional stock data
by the popular clustering methods K-means, SOM and Fuzzy Cmeans and then selecting
stocks to build an efficient portfolio. All the clustering methods are used to cluster financial
stock data from Bombay Stock Exchange that consists of returns.

The Journal of Wealth Management (DOI 08 May 2023) 10.3905/jwm.2023.1.215 Sony

Thomas S. S. S. Kumar:- This study addresses an important asset allocation dilemma, namely
whether investors should diversify their portfolios using commodities directly or commodity
stocks, which are equity shares of companies that produce commodities or have a strong
relationship to them. The results of the study indicate that commodities added to a stock-
bond portfolio perform better than commodity stocks in a stock-bond portfolio. The
dominance of commodities portfolios is observed during the in-sample, out-of-sample, and
current epidemic time periods.

David Lee, Dhamayanthi Arumugan (2019), studied about factors influencing personal financial
planning among young working adults in Malaysia. The aim of this study was to identify the factors
stated that affecting the personal financial planning among the young working adult in Malaysia. The
research design was descriptive research design. This study was implemented under quantitative
method with primary data in order to generate the data. The survey method is simple random
sampling and questionnaires. The findings of the study are relationship of financial planners and
financial planning also similar with the prior researchers. That also found that the older the
individuals.

A. R Shanmugam Priya, R. Krishna Raj, M. Chitra (2015), studied about the awareness of personal
financial planning among pharma students. The aim of studied was to evaluate the knowledge of the
pharmaceutical students with regard to financial planning. The research design was descriptive in
nature. The survey method was random sampling method from the list of students attached to top
fine colleges. The sample size is 100. The key finding of this studied that has been pharmaceutical
students are much pessimistic about their saving and budget. Vere few pharmaceutical students are
confident about managing their money. David S. Murphy (2010), s

43
Suresh G. And Dr. K. Kevan (2020), studied about National Centre for Financial Education–for a
Financially Aware and Empowered India. The aim of the studied was to critically analyses the
initiatives and key services provided by NCFE on Financial Education for the beneficial of the people
entire country. This present studied was descriptive in nature and based on the secondary data that
have been Gathered through various articles, newspapers, reputed journals, National Centre for
Financial Education, The Survey/Annual reports, the bulletin, booklets, pamphlets, fliers, worksheets,
statements, Financial Literacy guides/posters. The findings of the study Show gender effect and
positive correlation between the actual school performance among the students During the
academic year and the scores of Mathematical

Bhatia, Chandani, Divekar, Mehta and Vijay (28 July 2021)

studied the effect of digital technologies in wealth management. The impact of Robo- advisory
services on investment decision-making and behavioural biases was investigated in this study. They
employed a five-point Likert scale to collect 172 responses from investors, as well as purposeful
sampling to get investor responses. They discovered that behavioural biases had a favourable and
significant impact on investment decision-making irrationality The findings of this study also showed
that individual investors' use of Robo-advisory services is still ineffective at mitigating behavioural
biases such as overconfidencelias and loss-aversion bias.

Aggarwal and Singh (2019)

studied the issue of women's wealth management in India, they explore the awareness of working
women in India about financial planning and what they think about wealth management. The
methodology included an exploratory study and a convenience sampling method to collect
information from working women. They discovered that the majority of respondents are not only
financially literate but also understand the importance of current financial instruments. They
recognise the value of a well-balanced financial plan and acknowledge that they will need
professional assistance in developing one. Overall, the research has laid the groundwork for future
extensive research on the topic of women's money management.

pimple (2019)

He investigated the function of wealth managers in investment planning, as well as the investment
habits of individuals and their investment objectives. They used primary and secondary data
collection as part of their research technique. The primary data was gathered using a structured
questionnaire that included both optional and Likert's 5-point scale items Secondary data is gathered
via the internet, books, and newspapers, as well as random sampling. Wealth Management services
are normally offered for bigger amounts, but they can also be launched for lower amounts, according
to their findings. Many of the respondents who do not hire wealth management services are ignoring
their financial goals when investing, which is a major source of concern.

44
Bhatia, Chandani, Divekar,
Mehta and Vijay (28 July 2021)
studied the effect of digital
technologies in wealth
management. The impact of
Robo-
advisory services on
investment decision-making
and behavioural biases was
investigated in
this study. They employed a
five-point Likert scale to
collect 172 responses from
investors, as
45
well as purposeful sampling to
get investor responses. They
discovered that behavioural
biases had a favourable and
significant impact on
investment decision-making
irrationality.
The findings of this study also
showed that individual
investors' use of Robo-
advisory
services is still ineffective at
mitigating behavioural biases
such as overconfidence bias
and
46
loss-aversion bias

Bhatia, Chandani, Divekar,

Mehta and Vijay (28 July 2021)
studied the effect of digital
technologies in wealth
management. The impact of
Robo-
advisory services on
investment decision-making
and behavioural biases was
investigated in
this study. They employed a
five-point Likert scale to

47
collect 172 responses from
investors, as
well as purposeful sampling to
get investor responses. They
discovered that behavioural
biases had a favourable and
significant impact on
investment decision-making
irrationality.
The findings of this study also
showed that individual
investors' use of Robo-
advisory
services is still ineffective at
mitigating behavioural biases
48
such as overconfidence bias
and
loss-aversion bias

CHAPTER-4
RESEARCH METHODOLOGY

Research Methodology is the systematic and theoretical analysis of the methods applied to
a field of study. It involves qualitative and quantities techniques. In other words, it is a
process used to collect information and data for the purpose of the making business
decisions.
A Research is the process of in-depth analysis of the data in order to find the actual results,
solutions and societal benefits etc. There are different types of research viz., Descriptive
research, exploratory research, cross sectional research etc.
The Research is primarily done with some strong Primary and Secondary Objectives. Primary
Objectives are the main purpose of conducting research and the Secondary Objectives are
the next level focus of this research. Data Collection and Analysis is the crucial part of a
research process. The Data can be collected from 2 sources, they are: Primary Data,
Secondary Data. Primary Data are those which are collected for the first time and the
secondary data are those which already collected and use.
This part aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research.
Title of study
“Importance Of Financial Planning and Basics of Wealth Management”
Research Objective
1. To know the awareness among individual for wealth management
2. To Figure out the popular source of investment avenue
3. Percentage up to which individuals is ready to save at how much risk

Research Design

Data Collection Survey through Questionnaire

49
 Type of Data Primary Data

Sample Area Individual Equal and above the age young

Research Instrument Questionnaire

Type Of Questionnaire Structured

Statistical Charts Used Pie Chart, Column & Bar Graphs

Sample Size 50

Demographic Analysis
Demographics are characteristics of a population. Characteristics such as race, ethnicity, age,
education, profession, occupation, income level and marital status are all typical examples of
demographics that are used in surveys
1. Analysis Of Gender

The following table show that how many males are there & how many woman’s are
there:-

Female 26
Male 24

From the above figure show that 48% respondents are males and 52% respondents are
female

50
 2. Family Structure
From the following table we identify that there is Joint family or Nuclear family:

Joint 22
Nuclear 28

From the above figure show that 44% respondents are joint family and 56% respondents are
nuclear family

3. Sector which they employed

From the following we understand that the individual are work from which sector:-

Government Sector 5
Private Sector 15
Business Sector 12
Professional Sector 14
Other Sector 4

51
The above graph says 10% respondent are work in government sector. 30% respondent are
work in private sector. 24% respondent are work in business sector. 28% respondent are
work in professional sector. 8% respondent are work in other sector

4.Annual Income (In Rs.)

In this following table we analyzed that the annual income of the people:-

Up to 2,00,000 15
2,00,000 – 5,00,00 23
5,00,000 – 10,00,000 10
10,00,000 – 15,00,000 2

From the above graph show that 30% respondent earns around up to 2,00,000 per year.
46% respondent earns around 2,00,000 – 5,00,000 per year. 20% respondent earns

52
 around 5,00,000 – 10,00,000 per year. 4% respondent earns around 10,00,000 –
15,00,000 per year.
1. Stages of Life
In this we identify the stages of life of the people

Young and Unmarried 15

Married with no children 7
Married and having young children 12
Married and having older children 10
Retirement 6

From the above graph show that 30% respondent are from young and unmarried. 14%
respondent are from married having no children. 24% respondent are from married
having young children. 20% respondent are from married having older children. 12%
respondent are from retirement stage of life.

53
 ANALYSIS & INTERPRETATION

1. Do you have proper financial planning?

Interpretation:- The above data show that 64% (that is 32 out of 50) of surveyed respondent
have proper financial planning of their income, the remaining 36% (that is 18 out of 50)
respondent don’t have any proper planning which is an issue in this fast growing economy.

2. Do you consult any financial planner?

54
Interpretation:- By the above data show that around 58% (that is 29 out of 50) of respondent
consult financial planner, whereas 42% (that is 21 out of 50) proportion respondent do not
consult any financial planner which might lead to inefficient wealth management.

3. What kind of financial planning you option for?

Interpretation:- By the above data show that around 54% (that is 27 out of 50) of respondent
preferred goal based financial planning, whereas 46% (that is 23 out of 50) respondent
preferred for comprehensive financial planning

55
 4. Do you have systematic approach to investing

Interpretation:- This graph show that how much respondent know about systematic
approach of investment. Around 44% (that is 22 out of 50) of respondent know
about systematic approach, 24% (that is 12 out of 50) respondent preferred for
comprehensive financial planning. 32% (that is 16 out of 50) respondent are not sure
about systematic approach.

5.If yes, then in which plan you have invested?

56
 Interpretation:- This graph only those people respond that said yes in previous
question and know about systematic approach. Around 95% (that is 21 out of 22) of
respondent have SIP as their systematic approach, remaining 5% (that is 1 out of 22)
respondent are invested in SWP, there is no respondent in STP.

6.What is your risk profiling?

Interpretation:- From the above graph show that there are 6% (that is 3 out of 50)
respondent go for extremely risk averse, 20% (that is 10 out of 50) respondent go for
moderately risk averse, 44% (that is 22 out of 50) respondent go for neutral risk, 24%
(that is 12 out of 50) respondent go for moderately risk oriented, 6% (that is 3 out of
50) respondent go for extremely risk oriented.

7.What kind of asset allocation you prefer?

57
 Interpretation:- The above graph explain that 20% (that is 10 out of 50) respondent
prefer strategic asset allocation, 30% (that is 15 out of 50) respondent prefer tactical asset
allocation, 34% (that is 17 out of 50) respondent prefer fixed asset allocation, 16% (that is 8
out of 50) respondent flexible asset allocation.

8.Duration you prefer for investment?

Interpretation:- By this graph we analysis that 20% (that is 10 out of 50) respondent
prefer short term investment, 48% (that is 24 out of 50) respondent prefer medium
term investment, 32% (that is 16 out of 50) respondent prefer long term investment

9.Are you aware of wealth management?

58
Interpretation:- By this graph we understand that 72% (that is 36 out of 50) respondent are
aware about wealth management, 28% (that is 14 out of 50) respondent are not aware
about wealth management.

10.Do you know about portfolio management services?

Interpretation:- By this graph we identify that 52% (that is 26 out of 50) respondent
know about portfolio management services, 48% (that is 24 out of 50) respondent
are not have any idea about portfolio management services.

59
FINDINGS
There are some Major findings which below:-
 Some of them young and unmarried people don't have proper financial planning
 On other hand married and having young & older children prefer for financial
planning and do consult with financial planner to manage their asset mix.
 We can categorize people into 4 segments i.e. young and married, married with no
children; married and having young children; married and having older children and
retirement.
 Mostly people prefers goal-based financial planning as they invest in various asset
mixes.
 Most of the people are interested to invest in mutual fund, and some investors prefer
systematic approach based investment. But on other hand we can say that most of
the respondent doesn't know the benefits of systematic approach.
 By the data we identify that most of the people prefer medium term duration for the
investment

 There are some General/Minor findings which below:-

 Respondent who are young either unmarried & married are not aware how to
balance uncertainty with various asset mix.
 Tactical asset allocation is preferred by that respondent who invests in risky market
where as fixed asset allocation is preferred by most of the respondent as their risk is
neutral.
 By the data we notice that long term horizon is mostly prefers by fixed asset
allocation respondent and even they have proper financial planning.
 According to data we understand that 72% people are aware about wealth
management, but rest of them are not aware about the wealth management. By this
most of the people are not read anything about wealth management and not have
any idea about wealth management
 Some respondent believe that wealth management is systematic management of all
the income or investment

60
FINANCIAL INNOVATION IN WEALTH MANAGEMENT

Robo-Advisory wealth management is undergoing structural change due to digital

disruption. The new generation of investors are groomed by variety of technology
innovations offered bystartups and this in turn has caused industry incumbents to come up
with breakthroughs of theirown.Clients are no longer satisfied with traditional wealth
management offerings, as lot of investmentdecisions and asset allocation ideas could be
generated real time via artificial intelligence whichcan process huge chunk of financial data
and client data to narrow down appropriate assetallocation as per clients risk and return
expectations preference. The offerings of Robo-Advisory are feasible to the mass affluent
classes of the population who wereuntil now vary of fees charges by wealth advisory in
private banks.Globally, according to a 2015 EY report on wealth management, this is leading
to the emergenceof two models for the business: one being a fully-automated digital wealth
manager and the other hybrid, combining automated services and the human adviser. The
growth of Robo-Advisoryespecially in more developed markets, has in part been driven by a
shortage of financial advisers.Many experienced professionals are in their 50s, with fewer
young people willing to join this highly-competitive industry. This is the segment that is
likely to feel the biggest positive impact of technology driven services. According to
Capgemini world wealth report 2018, although widespread global entry
ofBigTech(technology giants) into wealth management remains uncertain, leading firms
(nearly three-quarters of all interviewed private banking firms) are investing in innovative
technologies such as intelligent automation(back end processes) and artificial intelligence
(AI) over the next 24months, as they prepare for Biotech to play a larger role in the industry.
Furthermore, according to the same study younger HNWIs (under age 40) demand for
artificial intelligence (AI) optimized advisory for their wealth management needs.

61
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
8. Demographic Analysis When preparing a project report on wealth management, there are
a few limitations that you should be aware of:

1. Data availability: Wealth management involves analyzing financial data, market trends,
and investment strategies. One limitation is the availability and accessibility of accurate and
up-to-date data. Depending on the scope and timeframe of your project, obtaining
comprehensive and reliable data may be a challenge.

2. Confidentiality and privacy concerns: Wealth management is a sensitive field that deals
with personal financial information. It is important to respect client confidentiality and
privacy when conducting research or gathering information. Access to detailed case studies
or real- life examples may be restricted, limiting the depth of analysis in your project report.

3. Subjectivity and individual preferences: Wealth management is highly personalized, and

individual clients may have unique investment goals, risk tolerances, and preferences. It can
be challenging to generalize findings or recommendations across different clients or
segments of the market. Your project report should acknowledge the subjectivity inherent in
wealth management and focus on providing a framework rather than definitive solutions.

4. Regulatory and legal considerations: The wealth management industry is subject to

various regulations and legal frameworks that vary across jurisdictions. When discussing
specific investment strategies, financial instruments, or compliance practices, it is essential
to consider the legal and regulatory environment. Failure to do so may result in inaccurate or
outdated information in your project report.

5. Dynamic and evolving nature of the industry: The financial markets and wealth
management industry are constantly evolving. New technologies, regulatory changes,
economic conditions, and market trends can have a significant impact on wealth
management practices. Your project report may have limitations in capturing the most
recent developments or addressing emerging challenges faced by the industry.

6. Limited scope of analysis: Depending on the scope and resources available for your
project, you may need to limit the depth and breadth of your analysis. Wealth management
is a vast field encompassing various aspects such as financial planning, investment

62
 management, tax planning, estate planning, and more. It may not be feasible to cover all
these aspects comprehensively within a single project report.

2. Practical implementation challenges: While a project report can provide theoretical insights and
recommendations, implementing wealth management strategies in practice can be complex.
Factors such as client behavior, market volatility, and unforeseen events can influence the
effectiveness of proposed strategies. Acknowledging these implementation challenges in your
project report can provide a more realistic perspective.

It is important to consider these limitations and provide appropriate caveats in your project
report to ensure the readers have a clear understanding of the scope and context of your
analysis.

63
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 solutions.  By survey we
can say that many individual don't know the real meaning of wealth management as they
interpret it as financial planning. Out of 50 respondents 36 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

64
BIBLIOGRAPHY

 Wealth Management and Financial Planning

 Portfolio Management and Asset Allocation
 Investment Strategies and Financial Markets
 Risk Management and Wealth Preservation
 Behavioural Finance and Investor Psychology

1. www.sebi.gov.in/
2. www.rbi.org.in/
3. www.amfiindia.com/
4. www.mcx-sx.com
5. www.ftkmc.com
6. www.fmc.gov.in
7.www.fimmda.org.in
8. www.fsa.gov.uk
9. www.nseindia.com
10. www.federalreserve.gov

"https://docs.google.com/forms/d/e/1FAIpQLSfLYodAaTPzBF Dz6qQls74S0Nrm
OnifOswsUclpCboTrOcrg/viewform?embed ded=true"

http://www.investopedia.com/terms/w/wealthmanagement.asp?l avout-infini&v=5C&adtest=

https://link.springer.com/chapter/10.1057/9781137001863 11

http://www.agefiactifs.com/sites/agefiactifs.com/files/fichiers/2 014/11/ipm20667
futureofwealthmanagement.pdf

https://www.wikipedia.org/

65
DPR (DAILY PROGRESS
REPORT) & WEEKLY
PROGRESS REPORT

66
09-05-2024 1. Interaction with MENTOR And VP 2. brief
introduction/ orientation given by owner of
ARWL. Also under stood the work done by
other interns by sitting with them. 3. Discussed
rules and regulations of office. 4. Go through
with website

10-05-2024 learnt Basic concept of mutual fund and go

through ARWL Website

11-05-2024 2nd Saturday was off

12-05-2024 Sunday

13-05-2024 1.Alloted mentor 2. Brief about Mutual fund

and company by mentor 3.Known about the
products.

14-05-2024 Read Factsheet of AMC and know basics of it

15-05-2024 Read Aide memoire and understand it.

16-05-2024 Download portfolio report and understand it

properly

17-05-2024 Download portfolio report and understand it

properly

18-05-2024 Updating client holdings

19-05-2024 Sunday

20-05-2024 Creating Aide Memoire

21-05-2024 Research regarding new clients prospects

through LinkedIn

22-05-2024 Creation of Aide Memoire and make Holding

and make cash flow with proper formatting

23-05-2024 Create Aide Memoire

24-05-2024 Upgradation of clients portfolio

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25-05-2024 Saturday

26-05-2024 Sunday

27-05-2024 Doing research on various financial instrument

28-05-2024 Documentation

29-05-2024 Process of Audits sheet and Go throughly with

process

30-05-2024 Creating Aide Memoire

31-05-2024 Documentation of Demat Form

01-06-2024 Updating clients holding

02-06-2024 Sunday

03-06-2024 Creating Relignment plan

04-06-2024 Clients Documentation

05-06-2024 Arranging Clients Meeting

06-06-2024 Creating Aide Memoire

07-06-2024 Creation of Aide Memoire and make Holding

and make cash flow with proper formatting

08-06-2024 Saturday

09-06-2024 Sunday

10-06-2024 Relignment plan

11-06-2024 Updating clients holding

12-06-2024 Demat Form Documentation

13-06-2024 Doing research on Investment Avenue

14-06-2024 Updating Clients holding

15-06-2024 Doing realignment plan

16-06-2024 Sunday

17-06-2024 Filling forms and opening Demat of new clients

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18-06-2024 Documentation family demat form

19-06-2024 Calling AMC to collect information regarding

client current holding
20-06-2024 Arranging client meeting

21-06-2024 Updating Clients holding

22-06-2024 Saturday

23-06-2024 Sunday

24-06-2024 Updating Clients holding

25-06-2024 Create Aide Memoire

26-06-2024 Documentation of clients Form

27-06-2024 Create Aide Memoire

28-06-2024 Updating clients holding

29-06-2024 Create Aide Memoire

30-06-2024 Sunday

01-07-2024 Arranging client meeting

02-07-2024 Ade Memoire

03-07-2024 Documentation for family and individuals

04-07-2024 Updating clients holding

05-07-2024 Calling AMC to collect information regarding

client current holding
06-07-2024 Create Aide Memoire

07-07-2024 sunday

08-07-2024 Updating clients holding

09-07-2024 Create Aide Memoire

10-07-2024 Doing realignment plan

11-07-2024 Updating clients holding

69
12-07-2024 Documentation for family and individuals

13-07-2024 Saturday

14-07-2024 Sunday

15-07-2024 Create Aide Memoire

16-07-2024 Updating Clients holding

17-07-2024 Doing realignment plan

18-07-2024 Documentation for family and individuals

19-07-2024 Create Aide Memoire

20-07-2024 Updating Clients holding

21-07-2024 Sunday

22-07-2024 Documentation for family and individuals

23-07-2024 Updating Clients holding

24-07-2024 Documentation of clients Form

25-07-2024 Create Aide Memoire

26-07-2024 Documentation for family and individuals

27-07-2024 Saturday

28-07-2024 Sunday

29-07-2024 Updating clients holding

01-08-2024 Updating clients holding

02-08-2024 Create Aide Memoire

03-08-2024 Documentation for family and individuals

04-08-2024 sunday

05-08-2024 Documentation for family and individuals

06-08-2024 Create Aide Memoire

07-08-2024 Create Aide Memoire and realignment action

plan

70
08-08-2024 Create Aide Memoire and realignment action
plan
09-08-2024 Create Aide Memoire and realignment action
plan

71
WEEK NO WORK

WEEK NO 1 Induction and company overview how to use

company dashboard and others platforms

WEEK NO 2 Updating and creating clients portfolios and

do research on various financial avenues

WEEK NO 3 Updating clients portfolios and arrange

clients meeting
WEEK NO 4 Creating Aide memoire and documentation
of demat account of individuals, family and
trust

WEEK NO 5 Realignment and creating action plan and do

research on new clients through likedin and
various platforms

WEEK NO 6 Creating Aide Memoire and Arrange the

clients meeting and documentation
WEEK NO 7 Reliagnment plan and MF Audit for clients
holdings
WEEK NO 8 Creating Aide memoire and documentation
of demat account of individuals, family and
trust

WEEK NO 9 Doing proper formatting and maintaining

record of one family
WEEK NO 10 Relignment and MF audit sheet creating and
analysing
WEEK NO 11 Aide Memoire and documentation of
individuals and family accounts

WEEK NO 12 Creating Aide Memoire and doing

realignment and MF audit sheet for clients
holding.

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WEALTH MANAGENMENT

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FEEDBACK FORM

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