Wealth Management

Only available on StudyMode
  • Download(s) : 154
  • Published : March 26, 2013
Open Document
Text Preview
EXECUTIVE SUMMARY

My project is on Financial Planning and Wealth Management. I have decided to take up this project because I had interest in the subject matter and wanted to learn more about Wealth Management. Financial Planning as the name suggests manages portfolio of every category of persons. Wealth Management is targeted at investors who want to improve their current approach to investment in shares and securities and other fixed income options. Whatever be their investment approach like active, research based or otherwise, it is clear that investment has become a more involved activity. It calls for awareness and understanding of the business. It also gives an opportunity to investors to interact with its investment team. This may enable investors to gain insights into the investment process and better understand the performance of their portfolio.

Financial Planning and Wealth Management means not just knowing about the shares and securities but also requires knowledge about Stock Exchange, Depository System, Dematerialization, Taxation on such transactions, knowledge about Mutual Funds, Bonds, Debentures, Fixed Deposits etc.

I tried to cover all this aspects in this project so that one can get complete insight into all the options available for financial planning of an Individual.

Objective of the project: -
“MONEY SAVED IS MONEY EARNED.” We all must have heard it sometimes or the other. The main objective of the study is directed towards this motive. Every individual or any organization is always interested in increasing its earnings. For this purpose the surplus fund is always invested outside so that there is proper utilization of financial resources, funds will not remain idle and there will be return on investment, which increases the profit of the organization. How this aim is achieved and what are the different ways of managing the portfolio, what are the different factors which one must know etc. are tried to be covered while preparing this project.

Research Methodology:
The information is gathered from Primary and Secondary sources. Primary sources: - Personal visits.
Secondary sources: - Books, Sites, Search Engines, Presentations & Brochures.

Limitations:
Most of the information is collected from secondary sources, so the limitations of the secondary sources are applicable to this project. Basic Concept
Investment
An investment is a sacrifice of current money or other resources for future benefits.

Portfolio
The set of all securities held by an investor is called his portfolio. The portfolio may contain just one security. However, since in general no one puts all one’s eggs in one basket, it will contain several securities. Such a portfolio is known as diversified portfolio. A portfolio can consist of any combination of shares, bonds, derivatives and such .It means the total holdings of securities belonging to any person.

Portfolio Management refers to the selection securities and their continuous shifting in the portfolio to optimize returns suit to object of an investor. The following three major activities are involved in an efficient portfolio management: a) Identification of assets or securities, allocation of investment and identifying assets classes. b) Deciding about major weights/ proportion of different assets/ securities in the portfolio. c) Securities selection within the assets classes as identified earlier.

Why should you invest?
Simply put, you should invest so that your money grows and shields you against rising inflation. The rate of return of on investments should be greater than the rate of inflation, leaving you with a nice surplus over a period of time. Whether your money is invested in stocks, bonds, mutual funds or certificates of deposit (CD), the end result is to create wealth for retirement, marriage, collage fees, vacations, and better standard of living or to just pass on...
tracking img