Department of Management StudiesKDK College of Engineering

Presentation On-Wealth Management

Presented By-Devendra N. Uprade

Wealth ManagementSavings when channelized becomes investment and

investment when channelized becomes wealth.

Savings

Investments

Wealth

Wealth Management ContinueThe 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.

Investment Options AvailableTraditional

Gold

Property

LIC

RD

Doubling PeriodIt 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

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

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

Solution:-

Traynor’s Measure =

L =

= 4.375

Sharpe’s Measure =

L =

= 0.35

Jenson’s Measure = L = =15-16 = -1

Thank You….!