This document provides an overview of wealth management including what it is, who provides services, target audiences, benefits, and how the industry has evolved. Wealth management involves providing financial planning, investment management, retirement planning, and estate planning services to high net worth individuals and others. Services are offered by asset management companies, portfolio management companies, private wealth advisors, and banks. The goals are to completely analyze a client's financial situation, monitor it over time, help build and protect their wealth, and provide expert advice.

1. Wealth Management Industry
October 7, 2015

2. Wealth Management
A Sneak Preview to…
Wealth Management

3. What is Wealth Management ?
Investment Advisory Service consisting of :
Financial
Planning &
Goal
Setting
Investment
Management
Retirement
Planning
Estate
Planning
Private
Portfolio
Management
Services
Who Provides these services?
Asset
Management
Companies
Portfolio
Management
Companies
Private Wealth
Advisors
Banks
&
NBFC’s

4. Target Audience?
Target Audiences
High Net Worth Individuals
Small & Medium Enterprises
Professionals who lack knowledge in financial
markets
Individuals focusing on other core competencies

5. Complete analysis of your financial situation
Monitoring & Alteration as per changing requirements
Help build and protect your wealth
Professional management of your finances
Expert advice, every step of the way
Why Wealth Management ?

6. It simply
includes
How did Wealth Management Evolve?
• Started in the early 1900’s by Brokerage firms.
• Lacked sophistication and holistic view towards Wealth Creation
• Wealth Management is a fairly new practice in the Indian concept and continues to evolve.
• Client’s needs – Monetary & Non-Monetary.
• ‘Client’ should be the focus not the ‘product’.
• Customized approach – One size fits all doesn’t work.
• Ongoing approach to achieve customer goals.
• Co-ordinated approach with various professionals involved.
• Simple & easy to understand advice.

7. Stages in Human Life…

8. The Wealth Planning Process….
DISCOVERY
MEETING
Complete discovery
process
INVESTMENT
PLAN MEETING
Presentation of
investment plan
MUTUAL
COMMITMENT
MEETING
Confirmation of
commitment
45-DAY
FOLLOW UP
MEETING
Organization of
account
paperwork
REGULAR PROGRESS
MEETINGS
Review of progress
and implementation
of wealth
management
INVESTMENT PLAN
Analysis of current
situation, our
recommendations for
moving forward and
details on our investing
approach
THE WEALTH
MANAGEMENT PLAN
Comprehensive evaluation
of the entire range of
financial needs and
remanded strategies
(prioritized)
Two Weeks One Week 45 Days 90 Days

9. The Wealth Planning Process….
Choosing services &
Providers
Implementation
Ongoing evaluation &
reporting
Monitoring
Client
Identifying your values
& goals
Discovery
Building an Action Plan
Analysis &
Recommendations
Comprehensive Wealth Planning Discovery
• Family, key issues
• Goals, retirement timing, special needs
• Values
• Comprehensive view of current financial picture
• Risk tolerance, time horizon, attitude toward volatility
Analysis, Recommendations
• Analyze personal, financial information
• Income goals, probability analysis
• Analyze liabilities
• Analysis of risks and treats
• Coordination with outside advisors
• Action plan: growth, preservation, transfer of wealth
Implementation
• Retirement and education plans
• Estate plan, trust, philanthropic plans
• Borrowing plan
• Risk plan including diversification, hedging, insurance, tax
minimization
• Family mission and bylaws
• Asset management
Monitoring
• Track progress toward goals
• Set / follow guidelines for liquidity, asset allocation
• Notification when portfolio strays outside guidelines
• Performance reporting

10. Risk tolerance – Risk
Profiling
Time Horizon – Age
Assets & Liabilities –
Immediate & Future
Cash Flows –
Monthly/Yearly
Income & Expenses
Family Issue & Special
needs
Lifestyle Assessment
Retirement Plans –
Future needs
Discovery…

11. Suggestions & Recommendations - Investments

12. Suggestions & Recommendations - Retirement
• Assessment of current financial status
• Ascertain post retirement needs
• Determine what you need to save and how
• Find extra money for savings

13. Suggestions & Recommendations - Tax
• Income Tax Exemptions
• Splitting income by creating several entities such as HUF or Trust.
• Making gifts within specified limits
• Making investments which qualify for rebates
• Reducing taxable income by claiming expenses
• Philanthropy/ Charity
Income Tax

14. Suggestions & Recommendations - Estate
• Will Creation
• Trust creation
• Philanthropic Ventures

15. Asset Allocation
Strategy to divide the portfolio among various
asset classes:
Equity, Debt, Money Markets, Mutual Funds,
Structured Products, Real Estate etc…
Strategic Asset
Allocation
Tactical Asset Allocation
Dynamic Asset
Allocation
Policy constantly adjusted to markets
Tactical Deviations to capitalize on unusual investment
opportunities.
Base Policy Mix

16. Evaluating Investment Options

17. Research your Investments
• Discover historical trends
• Perform financial analysis
• Compare with the peer group
• Obtain relevant economic news
• Forecast future performance
• View recommendations of the experts
To…

18. Asset Class Characteristics

19. What one should keep in mind before investing…
Understanding of Risk :
1. Systemic Risk - Associated with the Market
2. Un-systemic Risk – Associated with specific firm, security or industry
• Risk is measured in terms of Beta
• Market Risk Premium
• Rupee Cost Averaging
• Look at historic trends

20. Portfolio Creation
• Diversification - Asset Class wise allocation
• Right Asset Allocation
• Aim : Maximize Returns & Minimize Risk
Money Market or Government
Treasuries will have lower risk and
lower returns
Investment – grade Corporate Bonds
Blue Chip (Large-Cap) Equities
Mid-Cap Equities
Small Cap equities will have
higher risk and higher return
potential
Return%
Return% (Standard Deviation)

21. Portfolio Tracking & Monitoring
• Tracking of progress towards goals
• Follow guidelines set during Asset Allocation
• Notification when portfolio goes astray
• Regular Monitor for returns
• Re-assess goals & objectively periodically as change asset allocation accordingly

22. What is Asset Management ?
• Generally done for Corporates & Financial Institutions as opposed to Wealth
Management done for Individuals
• A sub-set of Wealth Management.
• Involves professional advice for investment into capital markets viz: stocks, bonds,
real estate, mutual funds etc. – mutually co-dependant assets to gain optimum
results.
• The focus is to decide the Asset Allocation & the Weightages in the Portfolio.

23. Value Based Investing
Stock Picking based on Intrinsic Value:
1. Analyzing Financial Statements
2. Look at Debt ratios
3. Cash Flows
4. Future Prospects
5. Earning Potential
• Picking Under Valued Stocks
• Margin of Safety
• Buying the Business & not the Share
• Investment in Quality Companies and not just trading in shares

24. Fund Management

25. What is Fund Management?
Investors
Pool their
money with
Fund
Management
Invest in
Securities
Generates
Returns
Passed back to

26. Benefits of Investing in Funds

27. Broad Fund Categories

28. How to become a successful Wealth Manager ?
• Invest in Brand Building – Build Trust
• Offer a 360 – degree view
• Embrace Mobility
• Increase reach through Technology
• Focus on Transparency & Compliance
Invest in Technology to improve productivity and advisor retention

29. www.milessoft.com
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Contact us
October 7, 2015