wealth management business plan

7/27/2019 Wealth Management Business Plan

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Zenith Wealth

ManagementBusiness Plan

PREPARED BY :

VAGEESH KUMAR 212038

AKASH NIJHAWAN 202002

ANWER RAHI 202009

NITISH SHARMA 202024

RAKESH 202025


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Introduction

Zenith Wealth Management will be afinancial planning and estate planningconsultancy.

Serving Delhi/NCR region.

offered products and services includemutual funds, equities, estate planningand an intensive market research for ourclients along with advisory.


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Mission

Our mission is to provide comprehensivefinancial planning services for ourcustomers. We exist to attract and

maintain customers. When we adhere tothis maxim, everything else will fall intoplace. Our services will exceed the

expectations of our customers.


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Objectives

The objectives for the first three years ofoperation include: To create a service-based company whose primary

goal is to exceed customer's expectations. To increase the number of clients served by at least

20% per year through superior performance andword-of-mouth referrals.

To develop a sustainable financial managementcompany that generates value for their customers.


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Competitive Advantage

Experience

Customer Relationship

Network in the industry


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Startup Plan

Arrange a mutual fund AUM ofapproximately 50 cr.

This will be done through present contacts

and we are almost certain of this value.

This will generate a trail income for us thatwill help us to sustain initially.

We will initially register as a partnershipfirm.


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Startup Expenses

Desk, chair and file cabinet.

Couch and table.

Scanner, copier.

Laptop with printer, CD-RW, and Internet connection (we shall use our personallaptops initially).

Landline Phone and 2 Mobile phones. Legal fees for business formation.

AMFI/ IRDA License

Crisil software for generating financial plans, maintaining client portfolios andgenerating research reports.

The office space will be rented at an approx. cost of 40k per month

Runner and an office boy.

Approximate Initial Capital3 Lakhs (Contributed By Partners)

Running Cost90 - 100k per month.


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Service Offerings

Stocks Fee sharing tie-up with a local broker

Mutual Funds

Acquire an AMFI license Estate planning

Through an attorney specializing in tax

consequences Life and General Insurance

get empanelled with only one life and generalinsurance company


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Service Offerings

Real Estate

Empanel a real estate broker

PMS/ Alternate investments

PE funds, Equity PMSs and other structures


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Opportunity

[src: http://www.cognizant.com/InsightsWhitepapers/Wealth-Management-in-India-

Challenges-and-Strategies.pdf]


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The total size of the HNWI population inIndia is just 53,000 but its growing at over20% CAGR.

The value of liquid assets expected togrow at 19.8% CAGR.

India is one of the fastest growing wealthmanagement markets.

Opportunity


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Opportunity

The mass affluent segment ($50K to$75K), constituting approximately 37% ofthe total number of wealthy individuals,

holds liquid assets of $54 billion.6 Thissegment is expected to grow at CAGR17.5% and, consequently, is expected to

demand a higher level of wealthmanagement services.


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Market Segmentation


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Marketing Strategy

Use existing network of relationships to fetch thefirst set of clients.

Build strong and lasting relationships

Emphasize on comprehensive research anddifferent product offerings.

Turn prospective clients into long-term

customers by assuring them a secured future. Concentrate to build our mutual fund AUM and

focus on Systematic Investment Plans.


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Revenue Model

Two Sources

Advisory fee (from clients investing less than25 Lakhs)

Commissions from sales of instruments(varies depending on product and company)

Investment Range Advisory Charges (%)

Upto 10 Lakhs 2%

10 Lakhs 25 Lakhs 1%

Above 25 Lakhs NIL


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Sales Forecast

No operational activity in first month This period will be used in setting up the

business

Revenue will begin to occur during thesecond month.

Fourth month onwards we will be receiving

the actual revenue from commissions. We aim to receive break even in 8thmonth

of service.


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Risks and Risk Mitigation

Failure in Convincing Investors

Mitigation Measure: Relationship Building andintensive CRM

Partnership Dispute

Mitigation Measure: Trust and Team Building,Share details among each other.

Market Risk Mitigation Measure: Intensive market

research, diverse portfolio.


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wealth management business plan

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