Wealth Management Services

FAQs ON WEALTH MANAGEMENT SERVICES

What is Wealth Management? Wealth Management is defined as the complete blend of various asset classes, tax consultancy and risk management strategies molded into a single cast normally targeted at High Net worth Individuals. It normally addresses certain critical issues such as asset allocation, retirement planning, estate and trust planning, business succession planning as well as equity planning. It can be represented in a time scale as under:

What is the need for financial advisory services? In an ever changing and increasingly competitive world, one needs to navigate through a maze of complexities to manage wealth efficiently and optimally. In today’s world of conflicting situations like the tendency to spend vs. the need to save, ability to earn better earlier in life Vs chances of shorter earning cycle with longer life span, complex and multitude of investment options vs. need for simple investment solutions, planned and disciplined investing becomes a necessity. This requires attention away from one’s profession. Assistance of experienced and committed professionals will make investment process effective. Customers require Financial planning for various below mentioned reasons as survey reveals:

Who is a High Net worth Individual? There is no authenticated / accepted definition for HNIs. However, universally accepted practice is as under: • Individuals, having financial assets over $ 1 million are treated as HNIs & • Individuals, having financial assets over $ 30 million are treated as Ultra HNIs. What is the growth potential for HNI Segment? As per World Wealth Report 2008 published by Cap Gemini Merrill Lynch & Co.: 10.1 million people globally hold more than US$1 million in financial assets, an increase of 6% over 2006. HNWI wealth totals US$40.7 trillion, representing an 9.4% gain since 2006 Wealth generation was driven by real GDP gains and continued market capitalization growth India(22.7%), China (20.3%), Brazil (19.3%) and South Korea (18.9%) witnessed the highest growth in HNWI population during 2007.  HNWI financial wealth is expected to reach US$59.1 trillion by 2012, growing at an annual rate of 7.7% How well HNI segment in India is placed? • HNI segment in India registered a growth of 22.7% during 2007 compared to 12.2% in Asia Pacific & 9.4% world-wide. • India accounts for more than 123,000 HNIs and about 1,000 Ultra HNIs. • India has accounted for 20% of Asia Growth and 10% of World Growth during 2005. • Mumbai, Delhi & Bangalore accounts for bulk of HNIs. • Bangalore accounts for over 10,000 Millionaires with an investiable surplus of Rs. 50 lacs to Rs.4.5 Cr. • 7% of HNIs are in the age group of 30 years or younger. • India’s millionaires on an average hold $ 3.5 million in assets. • India’s millionaire club largely consists of young entrepreneurs and businessmen. Is HNI growth in India is sustainable? This growth rate is likely to be sustained because of favorable demographic factors, rising opportunities for job as well as self-employment and graduation of middle-income group into high-income group. HNIs are unable to optimize their return on investments due to constraint of time and lack of proper advisory support services. The growth trend indicates immense opportunities in this particular segment. What are all the services HNIs normally expects? The HNI client segment is in need of the following services: • Advisory support on Investment decision. • Tax optimization. • Wealth protection, Insurance advisory. • Research support on different investment opportunities. • Other requirements like succession planning, legal advisory services, etc. The gamut of product and services can be as under:

What are all the financial services generally we offer as of now? • On-line equity Trading through Third Party Service Providers. • Distribution of Insurance Products both life & non-life. • Distribution of Mutual Funds schemes. • Demat accounts. • Utility bill & Tax Payment Services.