Anand Rathi Private Wealth Management

...

List of Tables and Figures

CHAPTER 1: INTRODUCTION

---------------------------------------------------------------

INDUSTRY OVERVIEW

WEALTH MANAGEMENT

Wealth Management as a concept originated in year 1990’s in the US. Essentially it is the investment advisory covering financial planning that provides individuals with private banking/ asset management/ taxation advisory & portfolio management. Warren Buffett is the most successful investor in world. He says that “The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing”. He is even called as wealth creator.

Wealth Management means:

Wealth administration is an state proficient administration that consolidates money venture exhortation, book keeping of assess administrations, retirement arranging and lawful domain getting ready for one expense. Speculators work with a solitary riches chief who arranges contribution from money related specialists and can incorporate organizing counsel from the financial specialists possess lawyer, bookkeepers and protection operator. Some riches supervisors additionally give managing an account administrations or counsel.

In others words, it is essentially a venture exhortation or help to deal with individual's monetary needs. These administrations are offered to financial specialists in bundles to furnish benefits with two principle objectives development and wellbeing of their current speculations.

At Anand Rathi Wealth means everything that the client has apart from the house that he lives in and Management involves setting up of objectives based on the clients details, make strategies to achieve those objectives ,Implement those strategies and finally monitor the direction of clients information.

FINANCIAL PLANNING

Everybody has necessities and desires. Money related Planning is a way to deal with survey the sufficiency of pay and resources of a man to meet the budgetary necessities for satisfaction of these requirements and desires. The part of money related arranging has been expanding in the market in light of the fact that:

---------------------------------------------------------------

- Needs and desires of individuals are steadily expanding. This builds the money related test that individuals confront. Financial specialists should be directed on thedifference between necessities (basics) and needs (wishes). Prioritization of costs is basic for individuals who are attempting to make a decent living.

- Joint families are offering approach to atomic families. The atomic family remains in a different house. The rentals or the securing expense of a house, are a critical monetary need to get ready for.

- In an atomic family, the individual is in charge of his close family. The more distant family, remaining under an alternate rooftop, can't be relied upon to bolster the general monetary needs of the person.

- The time of gaining for people is decreasing, while the life span (life traverse) of individuals is expanding. This implies earnings earned over a shorter day and age need to fund the necessities over a more drawn out timeframe. Thus the requirement for retirement arranging.

- Income levels are going up. Higher investible surplus should be contributed judiciously for what's to come. Subsequently the requirement for expert monetary arranging exhortation.

- The money related resources and liabilities that are accessible in the market for different needs are getting increasingly mind boggling. It is troublesome for a layman to have a thorough comprehension of these money related items.

- Tax arrangements continue evolving. Individuals need to arrange their assessments and guarantee that they take full advantage of the concessions accessible. This has opened the entryways for expert expense consultants.

- Increasing complexities in family structure can make issues while exchange riches to the people to come. In this way, bequest arranging is essential.

- A proficient budgetary organizer helping people explore these difficulties is a critical individual from our general public. The part and impact of money related organizers will undoubtedly develop in India.

KIND OF FINANCIAL PLANNING

There are two approaches to financial plan:

1. Goal based Financial Plan

The objective based budgetary arrangement can get more intricate, when we accommodate various objectives, with an alternate resource portion for every objective, and distinctive anticipated returns for every advantage class. Objective based monetary arrangements are a typical beginning stage for the financial specialist organizer relationship.

2. Compressive Financial Plan

A far reaching addresses the above confinements of an objective based monetary arrangement. It gives finish data on the general money related position of the speculator, and how the monetary objectives will be met occasionally. Numerous arrangements of Comprehensive Financial Plan are conceivable, for different circumstances.

ROLE OF FINANCIAL PLANNER/ WEALTH MANAGER

The financial planner’s fundamental role is to ensure that the investors have adequate money/ wealth for various financial needs/ goals.

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

- Preparing a financial blue print for the investors 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