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I have done this project at KSBL H>O> Hyderabad.

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  • OBJECTIVE OF THIS KIT : This is a product training kit that shall be used for initial training of Personal finance executives (PFEs) and tele-callers for sales of Karvy Financial Planning. The aim is to educate the sales people and equip them with the necessary knowledge & skills to facilitate knowledge based selling of KFP across all branches.

Transcript

  • 1. Bringing industry, finance & people together.
  • 2. “ Wealth Management Business & Comparative analysis of structured products with other products”. By: Atul Abhiseck Singh. Registration No: 08/016.
  • 3.
    • Karvy Intro
    • Objective
    • Research Methodology and Scope
    • Wealth Management Outlook and Value chain.
    • Market Participants
    • Product Classes
    • Karvy WM: Client Profiling & Segmentation
    • Karvy Financial Planning & Business development model
    • Competitor Analysis
    • Structured Products, Features ,Types and Comparison with other Products
    • Future Outlook, Challenges and Opportunities
    • Experience and Recommendations
    • Achievements Karvy
    • 10 reasons why Karvy.
  • 4. 1979 1985 1990 1993 1995 1997 2000 2001 2003 2004 Inception Corporate Registry Services Stock Broking Services Financial Products Distribution Corporate Financial Services Depository Services IT Enabled Services Personal Finance Advisory Services Debt Market Services Karvy Global Services 2005 PCG group of Hongkong has taken 20% stake in KSBL JV with Australian Computershare 2008 Largest financial product distributor.
  • 5.
    • To understand the wealth management business and various financial products available in the financial sector.
    • Business development for wealth management division Karvy.
    • Career orientation towards financial services industry.
    • To interact with Affluent, HNIs and Ultra HNIs clients of Karvy.
    • Experience of marketing of financial products and personal financial planning services.
    • To understand various competitors in the wealth management domain.
    • To have practical exposure to the real market scenario.
    • To understand structured products concept, features and return with risk profile.
  • 6. Primary research Global wealth models Savings & Investments Industry statistics Secondary research program Market Context Competitive dynamics Customer preferences Forecasts Macro Economics. Retail Invsts. Wealthy Individuals & their assets. Trends Best practices Structured products Service offerings Distribution Financial planning Product & Services Sophistication Retail savings & Invsts. Wealthy Individuals & their assets
  • 7.
    • Originated in 1990s
    • WM= IC+AP+RM
    • It includes:
    • 1. Core banking type products like current account, time deposits etc.
    • 2. Brokerage
    • 3. Asset management-Both financial and non financial.
    • 4. Lending products such as credit cards and mortgages.
    • 5. Insurance and protection products
    • 6. Advice in all shapes and forms-asset allocation & wealth structuring.
    • 7. Other concierge type services like art storage, real estate location, hotel, restaurant & theatre booking.
    • It is nothing but services provided to wealthy individuals & their families.
  • 8. Wealth Management Process from a Client Advice Heritage Wealth Management Process from a Product-Driven Heritage Advice oriented Product oriented Private banks; Trusts Assets managers Brokers Client advisory driven Objective setting Asset allocation Product selection Trading Product driven
  • 9.
    • Brokerages
    • AMC.
    • Insurance agencies
    • Financial advisors/planners
    • Private banker’s
    • Family offices.
    • Equity- direct equity, futures & options, mutual funds etc.
    • Debt- bonds, WDM/RDM, fixed deposits etc.
    • Alternative Investments- gold/silver, real estate, structured products, commodities, art & antiques etc.
    • Risk Management- life insurance & non life Insurance.
  • 10.
    • Affluent category
    • HNIs
    • Ultra-HNIs
    • Based on Life cycle stage :
    • Young unmarried
    • Married with children
    • Married with older children
    • Based on Source of Income:
    • Salaried individual ( CEOs)
    • Professionals & freelancers (Doctors, teachers, designers, architects, etc.)
    • We also segment on the basis of:
    • Assets size
    • Sources of wealth and tax situation
    • Advice dependency & risk tolerance
  • 11. " To cater to the unique needs and requirements of the mass affluent by providing complete financial solutions and thereby enabling them to transform their dreams into reality.” Our Vision:
  • 12.
    • A personalized service - comprehensive & continuous
    • Comprises of the following services :
    Investment Planning Retirement Planning Tax Planning Insurance Planning Liability Planning Expenses Planning Contingency Planning Personal Financial Planning
  • 13.
      • What do I want to achieve and how?
      • Am I overspending?
      • Where do I invest?
      • How much will I need to invest to realize my financial freedom?
      • Am I taking too much or too little risk?
      • Am I doing enough with regard to tax planning?
      • Should I continue or foreclose my loan?
    Financial planning answers critical questions like:
  • 14. After we acquire a client we follow the 4 stages: Seamless Execution Plan Process Pre-Plan Interaction Actual Plan Making Product specific recommendation through research support Follow-Up
  • 15.
    • Personalized touch for understanding you better
    • Assistance in filling Input Sheet
    • Define and establish your ‘financial shock absorbers’
    • Helping you to identify, quantify and prioritize your financial goals
    Stage 1 Plan Process Pre-Plan Interaction Actual Plan Making Product specific recommendation through research support Follow-Up
  • 16. Stage 2
    • Team of experts working towards your financial future
    • Giving you valuable insights through different techniques like ratio analysis, net-worth analysis, open risk position, etc.
    • Tailor-made recommendations for you
    Plan Process Pre-Plan Interaction Actual Plan Making Product specific recommendation through research support Follow-Up
  • 17. Stage 3 Plan Process Pre-Plan Interaction Actual Plan Making Product specific recommendation through research support Follow-Up Real Estate Tax Planning Mutual Funds Insurance Commodities F&O Equities Research support
  • 18. Stage 4
    • Periodic litmus test to evaluate how close you are to your financial goals
    • Assessing any change in your risk tolerance levels
    • Quarterly portfolio review and feedback
    • Performance statement of your investments
    • Review of insurance needs at important junctures of life
    • Continuous research recommendations over all personal finance products
    Plan Process Pre-Plan Interaction Actual Plan Making Product specific recommendation through research support Follow-Up
  • 19. KARVY FINANCIAL PLANNING Wealth management services Portfolio management services Private banking services Have a wholesome meal! Here lies the difference
  • 20. And the wholesome meal at the best price *Taxes extra # Subject to changes
    • Value additions:
    • Need based review
    • Investment Calendar
    • Online portfolio
    • Access to exclusive research report
    • 2517.75 man hrs. of service
    • Exclusive login id
    Fee structure # One time membership fee* Rs.5,000 Annual maintenance charge* Rs.5,000
  • 21. Service Offering Fees Charged Remarks HSBC Bank WMS/ Need based Financial planning/ PMS None Relationship based business. Focus on banking, financial & Insurance products. PFP focus missing. ICICI Bank Private banking/ WMS None Relationship based business. Focus on pushing banking, financial & insurance products only. PFP focus missing. ABN Amro Bank WMS/ Preferred banking None Retail customers are not targeted; Clients with investible surplus >30 lakhs only. Focus on baking & financial products. Main focus on MF. PFP focus missing . HDFC Bank Private banking, Recommendation on Equity, MF & Insurance None Equity, DP, MF & F&O products pushed & recommended. PFP Focus missing.
  • 22. Service Offering Fees Charged Remarks Kotak Securities WMS None Relationship based business. Focus on banking, financial & Insurance products. PFP focus missing. Citibank WMS None A/c holders targeted, relationship based business, focus on banking, financial & Insurance products. PFP focus missing. Religare PMS Performance Linked DP,MF, Equity, Commodities, Derivatives. Portfolio management based on risk profiles. No PFP Focus. Deutsche Bank Private Banking/ PFP None Relationship > Rs.5 Lakhs; RM- single touch point; MF & Insurance products & recommendations offered; Consolidated gain/loss statements provided. However part of PFP focus missing due to lack of goal setting. Allegro PFP Rs. 10,000-20,000 RMs handle clients; analytical & solution driven approach for PFP.
  • 23.
    • Structured Products are one of the most practical and recently developed vehicles of wealth management.
    Security low return Risk high return Optional Part Fixed Income Part
  • 24. 100%. 80%. 20%. 65%. Performance Linked Component. Fixed-Income Component. Fixed-Income Component. Performance Linked Component. According to the market evolution. Guranteed. Returns: It varies according to the performance of the underlying assets.
  • 25.
    • Features :
    • Capital protection guaranteed.
    • Less risk then any other product.
    • Return linked to the value of an asset or level of an index
    • Fixed term-both capital and return.
    • Can be sold before maturity but return may be less.
    • Types:
    • Structured notes: Equity linked, Multi assets linked, Commodity linked, FX linked, Precious metal linked notes etc.
    • One touch deposit
    • Wedding cake deposit
    • Options & lending
    • Capital series
  • 26. Comparison of Structured Products with other Traditional Products. Basis of Comparison/ Products. Structured Products. Equity Shares/Stocks. Mutual Funds. Debts/FD/NSC/KVP. Bank Deposits. Alternative Investments. Investment Objectives. Capital Protected and better return than other Investments. To get maximum /highest return in quick time. To get high return in respect to Bank Deposit and NSC etc. Capital Security and Good return, whether market is favorable or not. Lowest Return But Capital Safe. In Future Investment Value will rise or to have Capital Gain. Risk Profile. Capital Protected if held till Maturity, So No Risk. Highly Risky due to dependency on capital and stock market. Risky, NAV Depends on Market Fluctuations. No Risk. No Risk. Somewhat Risk is there, especially in Gold Investment. Time Horizon. Lock in period is there. Full Tenure For Capital Protection and return. No Lock in Period in Existing one, but yes in New issued ones. Lock in Period is there in Close ended funds. No Lock in Period, But Return Differs. No Lock in Period. No Lock in Period. Profiles of Investors. Mostly HNIs All Clients, But for those who take high risk and want better and sooner return. Individuals who want to take less risk and better return than normal savings. Who don’t want to take risk and wants good return than normal savings. Normal No Risk taker Investors. HNIs who takes some risk on future predictions of market. Future Outlook. Huge, Research Analysts Predicting $ 180 Billion market Pretty well, but investors are more averse to it right now Good for individuals, small Investors, market growing at 26 %annually Somehow Stagnant Still Growing High Growth future Prospects
  • 27.
    • Future:
    • Population
    • Skills
    • Stock Market
    • Affluent, HNIs and Ultra HNIs
    • Market rules regarding structured products
    • Challenges & opportunities:
    • Client education
    • Scaling up
    • Unorganized sector.
    • Technology support
    • Regulatory reforms
    • Rolodex migration
    • Certification issues
    • Commoditization
  • 28.
    • Experience:
    • Attended presentation by SUPERFUND, an MNC based in Singapore on structured products.
    • Patience.
    • Tackle questions.
    • Recommendations:
    • Karvy should tap both organized and unorganized market on a large scale.
    • Karvy should improve its after sales service & tap the existing customer base of Karvy.
    • Karvy should make its website more attractive, user friendly and informative.
    • Karvy can advertise regarding wealth management, financial planning and structured products as many people don’t have idea about it.
    • There is need to make the people aware of financial planning and PMS, WM difference.
    • To consider the service charges as most companies to attract customers give discounts.
    • Different pricing for different income range can be introduced
  • 29. Among the Top 3 Depository Participants Amongst the Top 5 Stock Brokers Largest Network of Branches & Business Associates ISO 9002 certified operations by DNV Adjudged as one of The Top 50 IT Users in India by MIS Asia Full fledged IT driven operations Largest Independent Distributor for Financial Products Amongst Top 10 Investment Bankers India’s #1 Registrar & Securities Transfer Agent
  • 30.
    • Sound research team in equities, F&O, income tax, insurance, mutual funds
    • An ever expanding network of branches to provide you service at your door step
    • A wide basket of products which includes:- stock broking, commodity broking, derivatives trading, insurance broking, tax planning, mutual funds advice, property services etc.
    • Personalized service catering to your unique tastes and requirements
    • Over a 2 decade of experience in the financial services spectrum
    • A member of FPSB and an exclusive team of CFPs involved in the preparation of financial plan
    • An ever expanding product portfolio consisting of future products like Mint Street, co-branded credit cards etc.
    • An efficient and effective top management
    • Professional management
    • PASSION for making you financial successful.
  • 31. Looking forward to making you financially successful.
  • 32.
            • Any
            • Questions ?
  • 33. Thank YOU