1. The Emerging Changes in theWealth Management Spectrumin India Presented by :Vyas Rai Nagpal, BA LLB

2. Transformation of the Industry The Wealth Management industry in India is a prime example of the success of free competition in the country With a GDP growth rate hovering around the 9% mark and a strong future outlook, Indias growth story is making it an increasingly attractive market for wealth management firms. This trend is expected to continue, with India estimated to become the third largest global economy by 2030. (Source: Cognizant Reports) 3. Current State of Financial Inclusion * Source: AMFI, CBDT, RBI, SEBI, NSDL, CDSL & IIMS Dataworks Survey 2007 4. Current State of Financial InclusionTotal Gross Savings2005-06 (P) 2006-07 (P)2007-08 # (Rs In Crores)597,694768,730734,372P : Provisional. # : Preliminary Estimates * Source: RBI Data, 2008 5. With whom would Indians trust theirmoney?* Source: IIMS Dataworks Survey 2007 6. Selling Preferences of FinancialIntermediaries Business ProfileAge Profile Financial Intermediaries profile is not restricted to a single product or serviceLI : Life Insurance Scope for skilled employment generation at varying age profiles * Source: IIMS Dataworks 2008 7. Wealth Managers CFOs to Individuals 8. Advisors Satisfaction to the Client 9. Size and Growth of WM IndustryThe total size of the HNWI population in India is just 53,000 a meager figure compared with a maturemarket such as the U.S. However, with the total HNWI population presently growing at over 20%CAGR, and the value of liquid assets expected to grow at 19.8% CAGR (see Figure 1), India is oneof the fastest growing wealth management markets. Also, overall HNWI liquid assets (whenmeasured as a percentage of Indian GDP) are increasing at a healthy pace, indicating the expansionof investable wealth in the economy (see Figure 2). 10. WM Objectives and Channel PreferencesFinancial Literacy However, awareness of available financial products is low in the target population,especially in Tier 2 and Tier 3 cities. In addition, a number of factors including aseries of high-profile scams, detrimental practices of advisors with a short-term viewand the lack of a strong investor protection environment have contributed toinvestor insecurity. This is the primary reason for Indian investors taking a myopic view towardsinvestments, largely discarding the option of long-term investments and personalretirement planning unless offered as an additional tax savings instrument. 11. WM- Organized & Un-Organized SectorsThe share of unorganized players (typically independent advisors or smallbrokers/agents offering financial advice) has shrunk considerably over the last fewyears, primarily due to the increased presence of organized providers, as well asincome and profitability pressures that have resulted in consolidation (see Figure 3).This has caused an increase in liquid assets available for organized wealthmanagement players, which has contributed to their growth in assets undermanagement. 12. Current Primary Focus of WM Firms Qualified advisors will be the best brand ambassadors for new firms seeking to gain a competitive edge against established players Investor education programs could deliver information pertaining to various asset classes and the associated risks, fee structures and benefits of each. Establishing trust is a vital component for any successful brand-building exercise in India. 13. Strategies Opted by WM Firms Invest in brand building to build trust Invest in advisor technologyto improveproductivity and advisor retention. Offer a 360-degree view Shifting to a profit-sharing model (where theadvisors fees are based on the overallperformance of the portfolio) would help mitigateissues to some extent. 14. Mutual Fund: No Entry Load! 15. ULIPs: Charges Capped! 16. What is an IFA? 17. Questions Clients Ask - 1 Ive just received an offer for a new job. Can you tell me if this salary structure is in my best interests? 18. Ponder1. Is this asked of by every distributor? And ifnot, why? 19. The Answer Is TrustIntegrity is what you are when no one is looking. 20. Questions Clients Ask - 2 Which is the best Mutual Fund to invest in? Do I need insurance? Shall I sell this property now? 21. Competency Is Essential Knowledge is the only instrument of production that is not subject to diminishing returns. --- J M Clark 22. Without Complacency Its what you learn after you know it all that counts. --- John Wooden, college basketball coach 23. Financial Architect! Understand needs, arrive at a budget Make the drawings, get okay, convert to blueprint Build the house 24. Opportunities of No Entry Load Rule Relationship becomes more advice and customercentric than transaction based Will open doors for Wealth Management Good advice will be appreciated and hence rewarded Customer service will be the key Knowledge is a must, hence certification becomesimportant Those who work in clients interest will be rewarded 25. Immediate Issues Difficulty in putting a value to your service & advice Building the right business model Maintaining brokerage structure may be difficult andcumbersome and bulky Technology Online platforms with direct investments Immediate cash-flow concerns 26. Need for Qualified Advisors ! The Current Indian Financial Advisory Market is looking for Brand building through its Qualified Advisors as Brand Ambassadors Qualified Advisors shall develop trust with the clients on a better footings IFAs require a qualification to equip themselves with the required skill set and knowledge to call themselves as Qualified Advisors 27. New Certifications / Degrees for theQualified Advisors American Academy of Financial Management TMs was founded in 1996,its professional development programs are Executive CertificationPrograms that are designed to ensure PRACTICAL WORKPLACERELEVANCE The American Academy of Financial Management TMis a worldwideBoard of Standards and financial professional organization, withmembers in 150+ countries offering our exclusive certified designations,charters, and masters certification to candidates who meet the highstandards. AFMTM now has representative offices in the US World Trade CenterN.O. Center, Hong Kong, Beijing, India, Dubai, Kuwait, Latin Americaand South America, Singapore, The Caribbean, Europe, and more.Moreover, AAFM is a candidate for recognition from the UnitedNations. AAFMTM mandates consent to high standards of professional conduct,and AAFM activities are International in nature and scope. As seen inthe Wall Street Journal, CNN, Financial Times, The Hindu National, TheEl Norte Latin America, The Arab Times, and The Beijing Times. 28. Certification / Designations Some of the AAFM Certifications are:CWM - Chartered Wealth ManagerCertificationRFS - Registered Financial SpecialistRBA - Registered Business AnalystMFP - Master Financial Professional Many other Certifications they have to offer to theIndustry . 29. CWM - Chartered Wealth ManagerCertification Wealth Management is one of the fastest growingdisciplines of the banking sector. The CWMfocuses on developing relationship management,sales, communication and core financial planningskills to equip Wealth Management Professionalswith graduate education. The AAFM CWM Program is a FederallyCopyrighted Program founded in the UnitedStates with Wall Street Sector Trademarks ownedby AAFM. 30. RFS - Registered Financial Specialist Covering financial planning, asset management, investment advising, and insurance topics, the RFS is the fundamental graduate qualification on AAFMs Banking and Investment Management program. 31. RBA - Registered Business Analyst A strategic MBA refresher with an intensive coverage on innovative and high-powered graduate level finance, business analysis, and leadership topics. Designed for the busy executive or upcoming management graduate. Includes focuson competitive intelligence and benchmarking. 32. MFP - Master Financial Professional Available via accreditation legal recognition agreements andarticulations. Complete a degree from an AACSB and ACBSP doubleaccredited programs with concentration in finance, and then becomeimmediately eligible for MFP. The MFP Path is the first Graduate credential that is awarded forcompleting a 4 year program or graduate program from anaccredited institution. The MFP establishes the fundamental global standards required forthe Financial Professional in todays business environment. It recognizes concentrations in finance, economics, investments,asset and portfolio management, ethics, regulatory issues, tax, andaccounting. It is also available as a conversion program. 33. Certification / Designations Launched In India Recent launch in India is CWM - Chartered Wealth Manager Certification CWM has 2 Levels of Examination Level 1: Foundation Course Level 2: Awarded with CWM Course Duration: 3- 6 Months Globally Recognized : The Certification will directly be awarded by American Academy of Financial ManagementTM, USA 34. Other Certifications of AAFMTM CAM Chartered Asset Manager - AAFM Charter AFA Accredited Financial Analyst - Financial AnalystDesignate CPM Chartered Portfolio Manager - AAFM Charter CRA Chartered Risk Analyst - IBS Charter & AAFMCharter CTEP Chartered Trust and Estate Planner - AAFM Charter CMA Chartered Market Analyst - Financial AnalystDesignate - AAFM Charter and Designation CCA Chartered Compliance Analyst - AAFM Charter CAMC Certified Anti-Money Laundering Consultant -AAFM Charter CAPA Certified Asset Protection Analyst - AAFM Charter CEC Certified E-Commerce Consultant - - AAFM Charter MPM Master Project Manager Legal Analyst - AAFM 35. Thank you for bearing with Me : )In case of any suggestion / questions please feel free to contact me at:vyasrainagpal@gmail.com or 9711797800