This presentation discusses wealth management. It defines wealth as savings that have been channeled into investments over time. The objective of wealth management is to generate passive income on a regular basis from investment holdings. Various traditional and modern investment options are available, including gold, property, stocks, bonds, and mutual funds. Metrics for evaluating portfolio performance include the Treynor, Sharpe, and Jensen measures. An example calculates these measures for a mutual fund called Fund L based on its mean return, standard deviation, beta, and the risk-free rate.

1. Department of Management Studies
KDK College of Engineering
Presentation On-
Wealth Management
Presented By-
Devendra N. Uprade

2. Wealth Management
 Savings when channelized becomes investment and
investment when channelized becomes wealth.
Savings
Investments
Wealth

3. Wealth Management Continue
 The objective of wealth management to generate
passive income.
 Wealth is the stock concept and Income is the flow
concept.
 Wealth is the stock wherefrom income flow on
regular basis.

4. Investment Options Available
Traditional
Gold
Property
LIC
RD
Modern
Mutual
Fund
Shares
Bonds
Debentu
res
Options
Derivati
ves

5. Doubling Period
 It is the time period required to double the amount of
investment of investor.
 There are two rules used to find out the doubling
period:
Rule of 72:
72
Doubling Period=
rate of interest
Rule of 69:
69
Doubling Period= 0.35+
rate of interest

6. Portfolio Performance Evaluation Measures
 Portfolio is the basket of securities.
 To analyze the portfolio based on securities, there are
three methods,
Treynor’s measure
Sharpe’s measure
Jenson’s measure

7. Question:-
Consider the following information for the mutual fund
L.
The mean risk free rate was 8 percent. Calculate the
Traynor measure, Sharpe measure, Jensen measure for
the mutual fund.
Mean Return
%
Standard
Deviation
%
Beta
L 15 20 1.6

8. Solution:-
Traynor’s Measure =
L =
= 4.375
Sharpe’s Measure =
L =
= 0.35

9. Jenson’s Measure =
L =
=15-16
= -1

10. Thank You….!