Navkonkan Education Society’s

Institute of Management Studies, Chiplun

MMS-IV Semester – Prelim Exam. April-2019

Subject: Wealth Management Date: 12/04/2019

Duration: 3:00 hrs Max. Marks: 60
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Note: 1) Question No.1 is compulsory.
2) Attempt any four questions from Q. 2 to Q. 7 .
3) Figures to right indicate full marks.
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Q.1 Caselets
Que.A Rama wishes to go to meet her daughter who will be starting studies in the US. The (05)
present cost of going to US is Rs. 2,00,000 and will increase every year by 4 % per
annum. The rate of return is 12 % per annum. How much should she invest now to meet
the expenses of visiting the US for all 6 years?
B. You are 40 years old and make $65,000 per year. After examining your family budget, (05)
it is determined that $48,500 per year is needed to support your family. It is also
determined that this income would need to be replaced until retirement at the age of 65
(25 years). If we assume a 5% discount rate. What would be your life’s value as per
HLV approach?

C You have two choices: 1- 11% annual compounded rate of return on CD. 2- 10% (05)
monthly compounded rate of return on CD How can you compare these two nominal
rates?
D You are valuing an investment that will pay you $27,000 per year for the first ten years, (05)
$35,000 per year for the next ten years, and $48,000 per year the following ten years
(all payments are at the end of each year). If the appropriate annual discount rate is
9.00%, what is the value of the investment to you today?
Que. 2 Attempt the following (any two)
A) Define Wealth Management. Explain components of Wealth Management. (05)
B) What are the types of investment risks? (05)
C) What is the need for retirement planning? Explain different tools for retirement (05)
planning.

Que. 3 Attempt the following (any two)

A) Enumerate needs and expectations of clients in context to WM.
B) What is insurance planning? What are the different types of insurance policies? (05)
C) You plan to retire 33 years from now. You expect that you will live 27 years after (05)
retiring. You want to have enough money upon reaching retirement age to withdraw
$180,000 from the account at the beginning of each year you expect to live, and yet still
have $2,500,000 left in the account at the time of your expected death (60 years from
now). You plan to accumulate the retirement fund by making equal annual deposits at the
end of each year for the next 33 years. You expect that you will be able to earn 12%
per year on your deposits. However, you only expect to earn 6% per year on your
investment after you retire since you will choose to place the money in less risky
 investments. What equal annual deposits must you make each year to reach your
retirement goal?

Que. 4 Attempt the following (any two)

A) Rajan is 28 years old salaried employee with a private sector bank. He is currently (05)
investing Rs.5000 per month in each of the following mutual funds through SIP. Details
of his allocation are as follows- Mirae Tax Saver Fund, SBI Healthcare Opportunity
Fund and ICICI Dynamic Equity Fund. Explain the nature and types of mutual funds.
How do they help in wealth enhancement?
B) What is asset allocation and various steps in determining a unique asset allocation (05)
model?
C) What do you mean by risk and return trade off? (05)
Que. 5 Attempt the following (any two)
A) What are the type and advantages of health insurance? (05)
B) Explain scope and challenges of Wealth management in India. (05)
C) If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an (05)
account that pays an annual interest rate of 14%?
Que. 6 Attempt the following (any two)
A) Describe principles of insurance in detail. (05)
B) What are the various tax saving avenues for Indians? (05)
C) At what annual interest rate must $137,000 be invested so that it will grow to be (05)
$475,000 in 14 years?
Que. 7 Attempt the following (any two) -short notes
A) Estate Planning (05)
B) Asset Classes (05)
C) Role of financial planner (05)
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 Navkonkan Education Society’s
Institute of Management Studies, Chiplun
MMS-IV Semester – Exam. April-2019

Subject: Organizational Development and Change Management Date: /04/2019

Duration: 3:00 hrs Max. Marks: 60
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Note: 1) Question No.1 is compulsory.
2) Attempt any four questions from Q. 2 to Q. 7 .
3) Figures to right indicate full marks.
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Que. 1 Caselets
A. Suggest various investment/s best suited in accordance with the objectives and (15)
constraints in each of the below mentioned cases.
1) Mr. Ramesh is a 40 year old married person. He has a 10 year old son. He
works in an MNC, getting (in hand) salary of
Rs. 1 lakh per month. His wife is also working in an MNC, getting (in hand)
salary of Rs. 70,000 per month. Monthly expenses all included are Rs.
60,000 per month.
2) Mr. Utkarsh is a 60 year old person. He has just retired and has received Rs.
60 Lakh as total retirement benefits. He lives with his wife in his own house.
His monthly expenses are Rs. 25000 (all included). He no longer has any
other source of income.
3) Mr. Sachit is a 24 year old person (bachelor) He works in an IT company.
The take home pay is Rs. 30,000 and his bare minimum expenses are
15,000.
You may use the combination of various investment avenues like life
insurance, mutual funds, bank fixed deposits, stock market, and real estate
etc. (ignore taxes)

B. Rohit is planning to invest in mutual fund from this month through monthly SIP of Rs. (05)
5000 in each of the following funds- Reliance Growth Fund, Kotak Emerging Equity
Scheme and L & T Mid Cap Fund. What are the benefits he can enjoy by investing in
mutual funds? Explain the concept of SIP and how does it work?
Que. 2 Attempt the following (any two)
A) Define Wealth Management. Explain components of Wealth Management. (05)
B) What are the various types of mutual funds and how does it help the investors in (05)
attainment of his financial goals?
C) What is the need for retirement planning? Explain different tools for retirement (05)
planning.
Que. 3 Attempt the following (any two)
A) Explain the role and responsibilities of financial planner. What are the various avenues (05)
of growth in the area of financial planning and wealth management?
B) You are valuing an investment that will pay you $12,000 the first year, $14,000 the (05)
second year, $17,000 the third year, $19,000 the fourth year, $23,000 the fifth year, and
$29,000 the sixth year (all payments are at the end of each year). What it the value of
the investment to you now is the appropriate annual discount rate is 11.00%?
C) Discuss various measures to evaluate performance of mutual funds. (05)

Que. 4 Attempt the following (any two)

A) Diversification of risk requires various assets classes in the portfolio of the investors. (05)
Explain various asset classes to meet the needs of investors in detail.
B) What is asset allocation and various steps in determining a unique asset allocation (05)
model?
C) What do you mean by risk and return trade off? (05)
Que. 5 Attempt the following (any two)
A) What are the type and advantages of health insurance? (05)
B) Explain scope and challenges of Wealth management in India. (05)
C) What will $247,000 grow to be in 9 years if it is invested today in an account with an (05)
annual interest rate of 11%?
Que. 6 Attempt the following (any two)
A) Describe principles of insurance in detail. (05)
B) What are the various tax saving avenues for Indians? (05)
C) You are valuing an investment that will pay you $26,000 per year for the first 9 years, (05)
$34,000 per year for the next 11 years, and $47,000 per year the following 14 years (all
payments are at the end of each year). Another similar risk investment alternative is an
account with a quoted annual interest rate of 9.00% with monthly compounding of
interest. What is the value in today's dollars of the set of cash flows you have been
offered?
Que. 7 Attempt the following (any two) -short notes
A) Estate Planning (05)
B) Asset Classes (05)
C) Process of Financial Planning (05)
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