investment and wealth mgt..docx

8/9/2019 investment and wealth mgt..docx

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MENTORING REPORT ON

Investment & Wealth Management BusinessA Portfolio Analysis

For !B"

#!u$mitte% in the Partial Fulfillment for the Reuirement ofPost

Gra%uate 'i(loma in Management)*PG'M+

!u$mitte% to, !u$mitte% $y,Ms- 'ee.sha T/in.le 0umar

Asstt- Professor Roll No- 12PG'M*IB+

3245641

7agannath International Management !8hool0al.a9i: Ne/ 'elhi


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CERTIFICATE OF COMPLETION

I Ms- TWIN0;E 0


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TO WHOMSOEVER IT MAY CONCERN

This is to 8ertify that stu%ent Twinkle Kumar of PG'M *IB+ *Trimester III+ 7IM!0al.a9i as "om(lete% the (ro9e8t on Inve!men! an" weal!# mana$emen!%uine& a '(r!)(li( anal*i )(r HS+C, un%er my gui%an8e /ith HS+C-

er /or. is u( to my satisfa8tion an% /orth a((re8iation-

I /ish her all the $est for future en%eavors-

!IGNAT


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CONTENTS

'es8ri(tion Page No-

"ertifi8ate 3

A8.no/le%gement =

E>e8utive !ummary 5

Intro%u8tion to to(i8 1

"om(any Profile 3?

Resear8h Metho%ology @2

Analysis & Inter(retation @3

Fin%ings & Inferen8es 11

"on8lusion an% Re8ommen%ations 1

;imitations ?3

Bi$liogra(hy ?=

A((en%i8es ?5

3


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ACKNOWLE./EMENT

It is the matter of great (leasure an% (rivilege to $e a$le to (resent this

(ro9e8t on inve!men! an" weal!# mana$emen! %uine& a '(r!)(li(

anal*i )(r HS+C,-

The 8om(ilation of the (ro9e8t is a milestone in the life of the management

stu%ent an% its e>e8ution is inevita$le /ith the 8o6o(eration of the (ro9e8t gui%e- I

/ish to re8or% a %ee( sense of res(e8t an% gratitu%e to my (ro9e8t gui%e: M-

.eek#afor her en8ouragement to 8ourse of my /or.- er en8ouragement to

8ourse of my /or.- It is %ue to the en%uring effort an% gui%an8e of my gui%e that

ultimately ma%e it su88ess-

I also ta.e this o((ortunity to e>(ress my %ee( regar%s an % gratitu%e to

the e>ternal mentor Mr- San"ee' Mi!!al /ho gave us gui%an8e to ta.e u( an%

(ursue the (ro9e8t -

I a8.no/le%ge my in%e$tness to various authors for ma.ing use of

valua$le information li$erally-

It is my (rou% (rivilege to e>(ress my %ee( sense of a((re8iation an%

gratitu%e to my (arents an% frien%s for their su((ort an% 8o6o(eration in the

8ourse of the (ro9e8t either %ire8tly or in%ire8tly involve% in time /ith their

valua$le 8ontri$ution-

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E0EC1TIVE S1MMARY

Ti!le& Investment an% /ealth management $usiness6 a (ortfolio analysis for

!B"

The objective of the project

The main o$9e8tive of my stu%y is to fin% the main strategies: (oli8ies use% &various sales (romotional a8tivities of !B" $an.

-

Research etho!o"o#$

.a!a 2(lle2!i(n

Intervie/ $ase% on uestionnaires-

Information through the uestionnaires-

!e8on%ary %ata from /e$sites: $oo.s: magaines et8-

Sa%p"e Si&eThe sam(le sie /as 4@2 res(on%ents 8om(rising of retail investors: $usiness

men: $uil%ers: in%ustrialists: e>(orters: %o8tors et8'

Sa%p"i# Techi*e

stratifie% ran%om sam(ling te8hniues /as use%

C(n2lui(n

From the stu%y an% /ith the hel( of the survey it 8an $e 8on8lu%e% that !B"has a very goo% mar.et /hi8h 8om(rises (otential investors $ut %ue to la8. of

$asi8 (romotion & (u$li8ity these investors are not fully a/are of our 8om(any &

/hosoever is a/are of the 8om(any their investment %e8isions are %one on the

$asis of se8urity: analysis of ris. yiel% & return fe/ (arameters li.e 'emogra(hi8:

Physiologi8al: In8ome: et8-

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Su$$e!i(n

!B" mar.et shoul% ma.e little more efforts to tra( the (otential investors: li.eMe%ia A%vertisement: Pa(er A%vertisement: !eminars & Business Meets &$uil%ing a goo% relationshi( /ith (otential $usiness: moreover frien%ly gui%an8e-

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INTRO.1CTION TO THE TOPIC

Weal!# Mana$emen! 3 +ran2# +ankin$

HS+C has 5? $ran8hes Pan6In%ia a8ross 31 lo8ations- Wealth Managementservi8es are %elivere% to 8ustomers through ualifie% Wealth Managementa8ross ea8h of these $ran8hes-Wealth Management hel(s 8ustomers %evelo( & e>e8ute a realisti8 & (ra8ti8allong term savings: investments & (rote8tion (lans $y investing in mutual fun%s:$on%s & (ur8hase of insuran8e (ro%u8ts manufa8ture% $y TATA AIG-Cualifie%: traine% & a88re%ite% Wealth Management assist 8ustomers in 8hartinga roa% ma( to a8hieve their in%ivi%ual finan8ial goals & (rote8t their family fromunforeseen eventualities .ee(ing in min% their availa$le resour8es & $ase% onea8h 8ustomers in%e(en%ent ris. (rofile- Wealth Management servi8es is8urrently offere% to !B" Premier & Po/er Dantage 8ustomers

COMMERCIAL +ANKIN/

!B" is a lea%ing (rovi%er of finan8ial servi8es to small: me%ium6sie% an%mi%%le6mar.et enter(rises- The Grou( has over 5=:222 su8h 8ustomers in In%ia:in8lu%ing sole (ro(rietors: 8lu$s an% asso8iations: in8or(orate% $usinesses an%(u$li8ly uote% 8om(anies- "ommer8ial Ban.ing (rovi%es a full range of $an.ingservi8es to these 8ustomers in8lu%ing multi68urren8y $usiness a88ounts:

(ayment an% 8ash management: tra%e servi8es: fa8toring an% a range of$orro/ing solutions-

In In%ia: "ommer8ial Ban.ing has a (resen8e in 5? $ran8hes 8overing 31 .ey8ities an% for the 8onvenien8e of our 8ustomers: a multi 8hannel servi8e in8lu%ingInternet an% Phone $an.ing- For !ME 8ustomers: !B" offers the 8om(leterange of transa8tion $a.ing servi8es as /ell as unse8ure% loans an% loans foran% against (ro(erty- The servi8es are su((orte% $y a large !ales an%Relationshi( Management team in .ey lo8ations a8ross the 8ountry- In%ia is thefirst 8ountry in the !B" Grou( /here "ommer8ial Ban.ing len%s toMi8rofinan8e Institutions: thus (rovi%ing in%ire8t fun%ing to hun%re%s of small

$usiness o/ne% an% run $y mem$ers of un%er(rivilege% se8tions of so8iety- A%e%i8ate% unit has $een forme% to fo8us on Mi8rofinan8e an% other Priority!e8tor institutions: /ith a vie/ to further rea8h out to the marginalie% an% un%er$an.e%-

Factori#7


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!B" In%ia offers a 8om(rehensive range of Fa8toring an% !u((ly "hainFinan8e !olutions: /hi8h in8lu%e the follo/ing (ro%u8ts,

For Den%ors!u((liersPur8hase "hannel of our 8or(orate 8ustomers Paya$les Finan8ing

Pur8hase Or%er Finan8ing

For the !ales "hannel of our 8or(orate 8ustomers Fa8toring *With or Without "re%it Prote8tion+

E>(ort Fa8toring *With or Without "re%it Prote8tion+

Portfolio Invoi8e 'is8ounting *With (artial 8re%it (rote8tion+

'istri$utor Finan8e

Pa*a%le Finan2in$, !B" In%ias Paya$le Finan8ing (ro%u8t ena$les8om(anies to finan8e their (aya$les to ven%ors- This hel(s 8om(anies to (rovi%eimme%iate liui%ity to ven%ors against their su((lies at 8om(etitive rates an% /illena$le the 8om(any to negotiate $etter (ri8ing terms /ith ven%ors-

It also ena$les the ven%ors to im(rove their 8ash flo/ $y (rovi%ing 8ontinuousliui%ity against their re8eiva$les- Our (aya$les finan8ing (ro%u8ts 8an $estru8ture% either against Bills of E>8hange or A88e(te% Invoi8es-

Pur2#ae Or"er Finan2in$4 is a fa8ility to su((liers of our "or(orate

Ban.ing "lients to finan8e their (re shi(ment /or.ing 8a(ital reuirements- Preshi(ment /or.ing 8a(ital lines are san8tione% to the su((liers against Pur8haseOr%ers issue% to the su((ler-

Fa2!(rin$, This is a servi8e that 8overs the finan8ing an% 8olle8tion of a88ountre8eiva$les in %omesti8 tra%e- Re8eiva$les are fa8tore%: $y !B" /ith a%%e%servi8e of 8re%it (rote8tion: 8olle8tion an% sales le%ges a%ministration- Thus themanagement of the 8om(any may 8on8entrate on (ro%u8tion an% sales an% nee%not 8on8ern itself /ith non68ore a8tivities li.e 8olle8tion an% sales le%gera%ministration-

E5'(r! Fa2!(rin$4ena$les 8om(anies to finan8e their o(en a88ount e>(ortsales at 8om(etitive rates either in Ru(ees or Foreign "urren8y- Through anet/or. of overseas $ase% 8orres(on%ent fa8tors: !B" (rovi%es 8re%it

(rote8tion against $uyer %efault an% 8olle8tion servi8es-

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P(r!)(li( Inv(i2e .i2(un!in$4Essentially 8overs (ur8hase of re8eiva$les/ith (artial 8re%it (rote8tion $ase% on a First ;oss 'efi8ien8y Guarantee- The(ortfolio shoul% $e /ell s(rea% /ith a88e(ta$le levels of 8on8entration an% the%e$tors must have ha% a satisfa8tory tra8. re8or% /ith the 8om(any- A fiel% au%it/ill $e 8on%u8te% to %etermine (ortfolio uality $ase% on /hi8h a First ;oss'efi8ien8y Guarantee (er8entage /ill $e agree%- "olle8tion remains the

res(onsi$ility of the "or(orate /ith re(ayments either on a (re6agree% s8he%uleor $ase% on a8tual 8olle8tions-

.i!ri%u!(r Finan2e4 is 8urrently offere% to the %istri$ution 8hannel of ;arge"or(orate Ban.ing "lients an% 8an $e stru8ture% to suit the s(e8ifi8 reuirementsof ea8h 8or(orate an% its %istri$ution 8hannel- Through the 'istri$ute Finan8eProgram: !B" finan8es 8om(anys %ealers: /hi8h /ill assist the 8om(any in(rovi%ing stea%y: assure% 8re%it to its %istri$ution 8hain-

+a$%ets a! cash %aa#e%etIntegrate% %omesti8 an% regional 8ash management solutions are (rovi%e% to8or(orate an% institutional 8ustomers in In%ia- The suite of offerings un%er the8ash management um$rella in8lu%es 8om(rehensive Re8eiva$les Managementsolutions: /ith an en%eavor to 8om(letely integrate /ith the 8ustomers $a8.6en%o(erating systems an% (ro8esses- !B" is the lea%ing foreign $an. in In%ia in(rovi%ing 8a(ital mar.et solutions: /hi8h in8lu%e Ban.ers to Issue: Es8ro/a88ount !ervi8es an% 'ivi%en% (ayments solutions- !i> !igma measurement(ra8ti8es are follo/e% for our o(erational 8a(a$ilities- !B" net: the !B"Grou(s online real time /e$6ena$le% 8or(orate $an.ing (latform: allo/s

8ustomers to e>e8ute finan8ial transa8tions: o$tain international finan8ial mar.etinformation an% revie/ %etails of their %omesti8 an% international a88ounts formany/here in the /orl%: 35 hours a %ay-

Tra!e (iteratioa" a! !o%estic) service!B" offers a /i%e range of international an% %omesti8 Tra%e (ro%u8ts- In In%ia:/e offer one of the largest tra%e (ro8essing 8a(a$ilities among (eer $an.s:s(rea% a8ross @ 8ities- Ea8h of our Tra%e (ro8essing 8enters is I!O 224632228ertifie%- We /or. 8losely /ith Grou( Offi8es overseas an% leverage oure>tensive glo$al net/or. to offer stru8ture%: tailor ma%e solutions to a /i%e rangeof 8ustomers- Our 8lients in In%ia in8lu%e large In%ia an% multinational

8om(anies: Mi% Mar.et 8om(anies as /ell as 8ustomers in the !mall an%Me%ium Enter(rises segment-

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CORPORATE AN. INSTIT1TIONAL +ANKIN/

"or(orate Ban.ing *"B+ is an integral (art of the Glo$al Ban.ing stru8ture: /hi8hfo8uses on offering a full range of servi8e to multinationals: large %omesti88or(orate an% institutional 8lients-Provi%es a /i%e range of $an.ing an% finan8ial servi8es (rovi%e% to %omesti8an% international o(erations of large lo8al 8or(orate an% lo8al o(erations ofmultinationals 8or(orations- !ervi8es in8lu%e a88ess to 8ommer8ial $an.ing(ro%u8ts: in8lu%ing /or.ing 8a(ital fa8ilities su8h as %omesti8 an% internationaltra%e o(erations an% fun%ing: 8hannel%istri$utor finan8ing: an% over%rafts: as/ell as %omesti8 an% international 8olle8tions an% (ayments: INR an% Foreign8urren8y term loans *e>ternal 8ommer8ial $orro/ing in foreign 8urren8y+: lettersof guarantee et8-

Institutional Ban.ing %rives the Grou(s relationshi( /ith $an.s: finan8ialinstitutions: se8urities houses: insuran8e 8om(anies: an% asset management8om(anies an% other non6$an.ing 8om(anies: non6government an%%evelo(ment organiations o(erating in In%ia- Mar.et lea%ershi( (osition $ase%on strong relationshi(s /ith ma9or finan8ial institutions-

Investment Ban.ing an% Mar.ets $rings together the a%visory an% finan8ing:euity!e8urities: euity lin.e% transa8tions: asset management: treasury an% 8a(italmar.ets: an% (rivate euity a8tivities of the Grou(s to 8om(lete the Glo$alBan.ing stru8ture an% (rovi%e a 8om(lete range of finan8ial (ro%u8ts to our8lients-

"lients are servi8e% $y se8tor $ase% 8lient servi8e teams that 8om$inerelationshi( managers: (ro%u8t s(e8ialists an% in%ustry s(e8ialists to %evelo(8ustomie% finan8ial solutions- These form the relationshi( team along /ith theInvestment Ban.ing stru8ture an% (rovi%e a 8om(lete range of finan8ial (ro%u8tsto our 8lients-"lients are servi8e% $y se8tor $ase% 8lient servi8e teams that 8om$inerelationshi( managers: (ro%u8t s(e8ialists an% in%ustry s(e8ialists to %evelo(8ustomie% finan8ial solutions- These form the relationshi( team along /ith theInvestment Ban.ing & A%visory %ivision- Ea8h team su((orts the

8lients lo8al an% glo$al nee%s: ensuring a full un%erstan%ing of the 8om(anys$usiness an% finan8ial nee%s- Base% on our 8lients reuirement: !B" assignsGlo$al Relationshi( Management teams to (rovi%e stru8ture% solutions for all itsnee%s-

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Our Glo$al Relationshi( Management teams are tas.e% /ith un%erstan%ing in%e(th the se8tors in /hi8h our 8lients o(erate /ith the aim of a%%ing valuethrough %etaile% in%ustry .no/le%ge an% stru8ture% finan8ial solutions-

Fo8us on overseas a8uisition finan8ing: 8or(orate finan8e an% a%visory roles:overseas 8ash management o((ortunities: 8ross $or%er fun%ing: (ro9e8t & e>(ort

finan8e through 8on8erte% mar.eting /ith all (ro%u8t (rovi%ers-

The "or(orate Ban. *"B+ in In%ia /as to( ran.e% *4 st overall+ in the 322@Green/i8h !urvey /ith a Green/i8h Cuality In%e> *GCI+ of 15?- "urrently "Bmanages a((ro>- 5?2 "B relationshi(s /ith total a%van8es of a((ro>-

"onsumer Bran%s Ban.sIn%ustrials &Te8hnology Finan8ial InstitutionsEnergy an%


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6 HS+C FI0E. .EPOSITS

When it 8omes to assure% returns: 8hoosing the right ty(e of savings s8hemema.es all the %ifferen8e- !B" Fi>e% 'e(osits let you ma.e the most of

value6a%%e% $enefits as you 8reate /ealth at lo/ ris.-

Fea!ure 3 +ene)i!

T#e u'eri(r Fi5e" .e'(i! !( inve! in7 )(r a e2ure )u!ure

Hou 8an no/ o(en a Fi>e% 'e(osit /ith Rs-42:222 only

En9oy high rate of returns on your !B" Fi>e%

'e(osits"hoose from a /i%e range of tenors as (er your8onvenien8e

Avail of our s(e8ial rates for sele8t tenors

In!ere! Ra!eFi5e" .e'(i! Peri(" In!ere! Ra!e Seni(r

Ci!i8en9 In!ere!

:; '-a-< Ra!e==

:; '-a- "a* ?-@@ ?-B !( 6D "a* ?-@@ ?-B6B !( "a* ?-B@ ?->B?@ !( B "a* D-B D-B@@ !( "a* B-B B-B@

@ !( 6> "a* B-B B-B@6@ !( "a* B-B@ B->B>@ !( 6 m(n!# -@@ -B? !( ? "a* -@@ -BD@@ "a* ->B -@@D@6 !( le !#an 6 m(n!# >-B >-B@6 m(n!# !( >?@ "a* >-B@ >->B>?6 "a* >-B@ >->B>? !( le !#an ? m(n!# >-B@ >->B

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Cer!i)i2a!e () .e'(i!

Earn interest for fun%s investe% from 4@ %ays to one year: /ith !B"s"ertifi8ate of 'e(osit *"'s+-

"'s 8an $e availe% $y in%ivi%uals *other than minors+: 8or(orations:$an.s: 8om(anies: trusts: fun%s: asso8iations et8- Non6Resi%ent In%ians

*NRIs+ may also su$s8ri$e to "'s on a non6re(atria$le $asis only-

A"van!a$e

Tenure GA "ertifi8ate of 'e(osit is issue% for a (erio% not less than4@ %ays & not e>8ee%ing 4 year from the %ate of issue-

Tran)er Me2#anim G "ertifi8ate of 'e(osit hel% in a (hysi8al

form are freely transfera$le $y en%orsement & %elivery- Those in%emat form 8an $e transferre% as (er the (ro8e%ure a((li8a$le to

other %emat se8urities-

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M1T1AL F1N.S

It is a ty(e of investment /here a num$er of investors money is (oole%together & use% $y the fun% manager*referre% to as the Asset Management"om(any or AM"+ to invest in un%erline se8urities inline /ith the o$9e8tives ofthe s8heme-By this metho% you 8an a8hieve a mu8h /i%er s(rea% of investments than ifyou /ere investing %ire8tly in the un%erlying investments- It is generallya88e(te% that $y s(rea%ing your investment you are s(rea%ing your ris.:therefore investing in mutual fun%s is 8onsi%ere% to $e lo/er ris. than %ire8tinvestment-When you invest in mutual fun%s you %o not o/n the un%erlying investments$ut have a 8laim to a num$er of units in the fun% re(resenting the sie of your

investment- The value of ea8h unit of the mutual fun% s8heme: 8al8ulate%$ase% on the mar.et value of the un%erlying investments after %e%u8tinge>(enses an% lia$ilities: is referre% to as the Net Asset Dalue or NAD-The first time a mutual fun% s8heme is availa$le for (ur8hase is referre% to as

a Ne/ Fun% Offering or NFO-

Im'(r!an! C#ara2!eri!i2 O) A Mu!ual Fun"

4 A mutual fun% a8tually $elongs to the investors /ho have (oole%their fun%s is in the han%s of the investors-

3 Investment (rofessionals an% other servi8e (rovi%ers: /ho earn a

free for their servi8es: from the fun%: manage a mutual fun%-

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= The (ool of fun%s investe% in a (ortfolio of mar.eta$le investments-

The value of the (ortfolio is u(%ate% every %ay-

5 The investors share in the fun% is %enominate% $y #units)- The

value of the units 8hanges in the (ortfolios value: every %ay- The

value of one unit of investment is 8alle% as the net asset value of

NAD-@ The investment (ortfolio of the mutual fun% is 8reate% a88or%ing to

the state% investment o$9e8tives of the fun%-

T*'e () Mu!ual Fun"

There are thousan%s of %ifferent mutual fun%s offere% on the mar.et- They range

from fun%s that in8lu%e a $roa% variety of investments to fun%s that investe>8lusively in single se8urities or narro/ se8tors of the mar.et- With the many%ifferent investment styles an% o$9e8tives: theres $oun% to $e a num$er ofmutual fun%s that are suite% to your investing (rofile- Ea8h of these fun%s hase>(ense: ris.: an% return 8hara8teristi8s- Be sure you un%erstan% these8hara8teristi8s $efore you invest- There are 4@ (rin8i(al ty(es of fun%s- We haveliste% them a88or%ing to their (rimary o$9e8tives, gro/th: in8ome: an%s(e8ialie%-

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+alan2e" Fun"Balan8e% fun%s see. to o$tain the highest return 8onsistent /ith a lo/6ris.strategy- They hol% a mi> of 8ommon an% (referre% sto8.s: $on%s an% 8ashreserves- The mi> 8an vary a88or%ing to 8urrent mar.et 8on%itions- Balan8e%fun%s usually offer higher yiel%s than (ure sto8. fun%s- Balan8e% fun%s are

generally the least ris.y of gro/th6oriente% mutual fun%s-

/r(w!# an" In2(me Fun"Gro/th an% in8ome fun%s attem(t to a8hieve $oth long6term gro/th an% 8urrentin8ome- They invest (rimarily in high6yiel% 8ommon sto8.: (referre% sto8.: an%8onverti$le %e$t *$on%s+ to generate $oth gro/th an% in8ome- Be8ause theyin8lu%e a mi> of investments: these fun%s are ty(i8ally less ris.y than gro/thfun%s-

/r(w!# Fun"Gro/th fun%s see. long6term a((re8iation $y investing in the sto8.s of

esta$lishe% 8om(anies that may $e (oise% for gro/th- These 8om(anies ty(i8ally(ay lo/ %ivi%en%s yet offer the (otential for long6term 8a(ital

a((re8iation- !ome gro/th fun%s limit their investments to s(e8ifi8 se8tors of thee8onomy- Gro/th fun%s are generally less ris.y than aggressive gro/th fun%s-

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In!erna!i(nal an" /l(%al /r(w!# Fun"International an% glo$al mutual fun%s offer %iversifi8ation into international sto8.mar.ets- International fun%s invest only in foreign se8urities- Glo$al fun%s: on theother han%: 8an invest in foreign and 8hange %ifferen8es: as /ell as e8onomi8 an% (oliti8al

systems that may $e %ifferent that those in the 6free in8ome- Money mar.et fun%s areneither insure% nor guarantee% $y the Fe%eral 'e(osit Insuran8e "or(oration orany other government agen8y- Although the fun% see.s to (reserve the value ofyour investment at J4-22 a share: it is (ossi$le to lose money $y investing in thefun%-

/(vernmen! Se2uri!ie Fun"Government se8urities fun%s invest (rimarily in Treasury an% government agen8yse8urities- Be8ause they are issue% or guarantee% $y the


19/73

fun%s issue% $y your state $e8ause they may offer %ou$le or even tri(le ta>6freein8ome- In some states you /ill have to (ay in8ome ta> if you $uy shares of amuni8i(al $on% fun% that invests in $on%s issue% $y other states- In a%%ition:/hile some muni8i(al $on%s in the fun% may not $e su$9e8t to regular in8ometa>es: they may $e su$9e8t to fe%eral: state: or lo8al alternative minimum ta>- Ifyou sell a ta>6free $on% fun% at a (rofit: there are 8a(ital gains ta>es to 8onsi%er-

As /ith all ty(es of $on% fun%s: the (rin8i(al value /ill flu8tuate /ith 8hanges ininterest rates-

C(r'(ra!e +(n" Fun""or(orate $on% fun%s invest in %e$t se8urities issue% $y 8or(orations- The ris. of8or(orate $on% fun%s may vary %e(en%ing on the o$9e8tives of the fun%- Be8ause8re%it ris. is some/hat higher: these fun%s may offer higher returns than fun%ss(e8ialiing in government se8urities- Prin8i(al /ill flu8tuate /ith 8hanges ininterest rates-

Hi$#&Yiel" +(n" Fun"

igh6yiel% $on% fun%s see. to ma>imie 8urrent in8ome $y investing in lo/er6uality K high6yiel%ing K 8or(orate $on%s- The $on%s hel% $y these fun%s aregenerally rate% BB or lo/er $y rating agen8ies- They offer the high 8urrent yiel%sto 8om(ensate for the greater ris. of %efault- !in8e they are more volatile thanan% (ay higher yiel%s than investment gra%e $on%s: they ten% to $e suite% toinvestors /ith a high %egree of ris. toleran8e-

Se2!(r Fun"

!e8tor fun%s invest in s(e8ifi8 in%ustries or se8tors of the e8onomy: su8h as8ommuni8ations: aeros(a8e an% %efense: or health 8are- While they may $e%iversifie% /ithin a (arti8ular se8tor: they la8. $roa% %iversifi8ation- Thisin8reases their investment ris.- These fun%s ty(i8ally see. long6term 8a(itala((re8iation-

/r(w!#&In2(me Fun"Gro/th6in8ome fun%s are s(e8ialists in $lue 8hi( sto8.s- These fun%s invest inutilities: 'o/ in%ustrials: an% other seasone% sto8.s- They /or. to ma>imie%ivi%en% in8ome /hile also generating 8a(ital gains- These fun%s are suita$le asa su$stitute for 8onservative investment in the sto8. mar.et-

In2(me Fun"In8ome fun%s fo8us on %ivi%en% in8ome: /hile also en9oying the 8a(ital gains thatusually a88om(any investment in 8ommon an% (referre% sto8.s- These fun%s are(arti8ularly favore% $y 8onservative investors-

18


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Ae! All(2a!i(n Fun"

Asset allo8ation fun%s %onLt invest in 9ust sto8.s- Instea%: they fo8us on sto8.s:

$on%s: gol%: real estate: an% money mar.et fun%s- This (ortfolio a((roa8h

%e8reases the relian8e on any one segment of the mar.et(la8e: easing any

%e8lines- A (lus fa8tor is limite% $y this strategy as /ell-

Pre2i(u Me!al Fun"

Pre8ious metal fun%s invest in gol%: silver: an% (latinum- Gol% an% silver oftenmove in the o((osite %ire8tion from the sto8. mar.et: an% thus these fun%s 8an(rovi%e a he%ge against investments in 8ommon sto8.s-

+(n" Fun"

Bon% fun%s invest in 8or(orate an% government $on%s- A 8ommonmisun%erstan%ing among investors is that the return on a $on% fun% is similar to

the returns of the $on%s (ur8hase%- One might e>(e8t that a fun% that o/ns(rimarily (er8ent6yiel%ing $on%s /oul% return (er8ent to investors- In fa8t: theyiel% from the fun% is $ase% (rimarily on the tra%ing of$on%s: /hi8h are e>traor%inarily sensitive to interest rates- Thus: one 8oul% fin% a$on% fun% that /as earning %ou$le6%igit returns as the (rime rate 8lim$e% from 5(er8ent to 1 (er8ent-In a%%ition to mutual fun%s: there are money mar.et fun%s: /hi8h are essentiallymutual fun%s that invest solely in government6insure% short6term instruments-These fun%s nearly al/ays refle8t the 8urrent interest rates: an% rarely engage ininterest6rate s(e8ulation-

Mu!ual )un" availa%le !#r(u$# HS+C

AIG Glo$al Investment Grou( Mutual Fun%

Birla !un ;ife Mutual Fun%

'!P Merrill ;yn8h Investment Managers

Fi%elity Mutual Fun%

Fran.lin Tem(leton Mutual Fun%

'F" Mutual Fun%

19
http://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=AIG%20Global%20Investment%20Group%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Birla%20Sun%20Life%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=DSP%20Merrill%20Lynch%20Investment%20Managershttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Fidelity%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Franklin%20Templeton%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=HDFC%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Birla%20Sun%20Life%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=DSP%20Merrill%20Lynch%20Investment%20Managershttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Fidelity%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Franklin%20Templeton%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=HDFC%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=AIG%20Global%20Investment%20Group%20Mutual%20Fund


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!B" Mutual Fun%

I"I"I Pru%ential Mutual Fun%

7PMorgan Mutual Fun%

0ota. Mahin%ra Mutual Fun%

Relian8e Mutual Fun%

!tan%ar% "hartere% Mutual Fun%

!un%aram BNP Pari$as Mutual Fun%

Tata Mutual Fun%

+ene)i! () Mu!ual Fun"

Re"u2!i(n in rik4

Mutual fun%s invest in a (ortfolio of se8urities- This means that all fun%s are not

investe% in the same Investment Avenue- ol%ing a (ortfolio that is %iversifie%

a8ross investment avenues is a /ise /ay to manage ris.- When su8h a (ortfolio

is liui% an% mar.e% to mar.et: it ena$les investors to 8ontinuously evaluate the

(ortfolio an% manage their ris.s more effi8iently-

Re"u2!i(n in !rana2!i(n 2(!4Through the in%ivi%ual investors 8ontri$ution may $e small the mutual fun% itselfis large enough to $e a$le to re%u8e 8osts in its transa8tions- These $enefits are(asse% on to the investors-

P(r!)(li( .iveri)i2a!i(n4By offering rea%yma%e %iversifie% (ortfolios: mutual fun% ena$les investors tohol% %iversifie% (ortfolios- Through investors 8an 8reate their o/n %iversifie%(ortfolios: the 8osts of 8reating an% monitoring su8h (ortfolios 8an $e high: a(artfrom the fa8t that investors may la8. the (rofessional e>(ertise to manage su8h a

(ortfolio-Liui"i!*4O(en6en%e% fun%s are very liui% as the Mutual Fun% 8om(anies offer an o(en/in%o/ for re%em(tion on all /or.ing %ays- The re%em(tion (ro8ee%s arenormally %is(at8he% /ithin three to four /or.ing %ays-

Pr()ei(nal )un" mana$emen!4

20
http://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=HSBC%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=ICICI%20Prudential%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=JPMorgan%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Kotak%20Mahindra%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Reliance%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Standard%20Chartered%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Sundaram%20BNP%20Paribas%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Tata%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=HSBC%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=ICICI%20Prudential%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=JPMorgan%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Kotak%20Mahindra%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Reliance%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Standard%20Chartered%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Sundaram%20BNP%20Paribas%20Mutual%20Fundhttp://www.banking.hsbc.co.in/script/in/personal/mfs/dailynav2.asp?house=Tata%20Mutual%20Fund


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Investing in mar.ets reuires $oth .no/le%ge an% e>(ertise- E>(erien8e% fun%managers are a$le to tra%e or negotiate $etter %eals: manage the (ri8e ris.effe8tively: e>(loit tren%s an% o((ortunities an% 8onstantly monitor theenvironment-

Ta5 e))i2ien2ie4

Investing in mutual fun%s is ta> effi8ient- If investors 8hoose the gro/th o(tionan% stay investe% for a year: they only (ay long term "a(ital Gains of 32-5 ofin%e>e% returns or 42-3 of un in%e>e% returns */hi8hever is lo/er+-

.iveri)i2a!i(n4'iversifi8ation is the 8ore of any investment strategy- It allo/s you to minimiethe ris.s asso8iate% /ith any investment- o/ever: it is very%iffi8ult for in%ivi%uals to have the reuisite %iversifi8ation for your investmentgiven smaller (ortfolios an% transa8tion 8osts- Mutual Fun%s 8an (ool in theinvestments of thousan%s of investors an% a8hieve the %esire% level of%iversifi8ation for ea8h-

FA9.( all mu!ual )un" 2arr* !#e ame inve!men! rikJ

No: they %o not- !ome mutual fun%s have $een %esigne% for investors /ho are8autious: /hile others for investors /ho are aggressive in their outloo. to ris.-There are also fun%s %esigne% for investors having a $alan8e% outloo.on ris.- Hou therefore nee% to %e8i%e /hat level of investment ris. you are ha((yto a88e(t an% then 8hoose a mutual fun% s8heme: /hi8h mat8hes your a((etitefor ris.-

H(w "( I kn(w w#i2# mu!ual )un" 2#eme i ri$#! )(r meJ

This /ill %e(en% u(on the level of ris. you are (re(are% to ta.e: your investmenthorion: /hat your investment o$9e8tives are an% /hether you have a (arti8ular(referen8e in the ty(e of se8urities you /oul% li.e to invest in- o/ever $eforeyou invest you nee% to ensure you fully un%erstan% the features an% ris.s relatingto the mutual fun% s8heme you ultimately %e8i%e to invest in-

W#a! 2#ar$e are inv(lve"J

"harges %o vary $et/een %ifferent ty(es of mutual fun% s8hemes to refle8t thelevel of management an% the ty(e of un%erlying se8urity involve%- o/ever thereare three main ty(es of 8harges involve% $ut you must refer to the offer

21


23/73

%o8ument of the fun% to fin% out e>a8tly /hat 8harges are involve% an% theiramounts-

Ini!ial 2#ar$e these e>(enses are in8urre% $y the fun% house for thes8heme*s+ $efore%uring its laun8h to/ar%s mar.eting: (u$li8ity: a%vertising:registrars e>(enses: $ro.ers agents 8ommission et8- !u$9e8t to an overall limit

*as a (er8entage of the 8or(us mo$ilie%+: these are su$seuently amortie% tothe s8heme over a fe/ years-

Annual Re2urrin$ E5'ene :ARE(enses an% other e>(enses an% othere>(enses %ire8tly attri$uta$le to the s8heme-

En!r* l(a"

This is a 8harge that is levie% on investors at the time of investment into as8heme- Entry loa%s are ty(i8ally restri8te% to euity fun%s an% $alan8e% fun%s

an% have the im(a8t of re%u8ing the net amount that is availa$le for investment$y the s8heme-

E5i! C#ar$e E5i! l(a"

Although %es8ri$e% as a 8harge it is really a (enalty for early en8ashment- Not allmutual fun%s in8lu%e this 8harge- This ten%s to $e e>(resse% as a (er8entage ofthe amount to $e en8ashe%- !ome fun% managers use this ty(eof 8harge /here the un%erlying se8urities are illiui% in nature or /here they %onot 8harge an initial 8harge or to %is8ourage (remature re%em(tions from 8lose6en%e% fun%s- A variant of the e>it loa%s is a "ontingent 'eferre% !ales "harge*"'!"+ /here the e>it loa% is 8harge% on gra%e% $asis an% %e8lines /ith

in8reasing time (erio%-

W#a! i !#e e))e2! () !#ee 2#ar$eJ

The effe8t of the initial 8harge is to imme%iately re%u8e the amount availa$le to(ur8hase units- This means imme%iately after you invest the value of yourinvestment /ill $e $elo/ the amount you investe%- This is one reason /hy youshoul% $e ha((y to leave your 8a(ital investe% for the me%ium to long term toallo/ (ossi$le future gro/th to over8ome the effe8t of the initial 8harge-

The ARE /ill have the effe8t of re%u8ing the overall returns you re8eive either inthe in8ome you re8eive or the 8a(ital gro/th you e>(erien8e- This ARE is%e%u8te% from the overall value of the fun% irres(e8tive of /hether the fun% hasma%e a (rofit or not therefore %e%u8tion of the ARE 8an also in8rease the lossthe fun% may have ma%e-

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24/73

The effe8t of Entry ;oa% /oul% $e to re%u8e the net amount availa$le forinvestment $y the fun%-

The effe8t of an E>it ;oa% /ill $e to re%u8e the a8tual amount you re8eive onen8ashment: /hi8h means you /ill re8eive less than mar.et value of theun%erlying investment- !u8h a 8harge a8ts as a %eterrent to early en8ashment-

I) I inve! w#a! am I 2(mmi!!in$ !(J

Hou are 8ommitting to invest at least the minimum amount: /hi8h varies fromfun% to fun%- In 8ase of fun%s %esigne% for a me%ium or long term horion: youshoul% also $e (re(are% to 8ommit your investment for the a((ro(riate timehorion an% not use 8a(ital that you might nee% in the short term: es(e8ially- Withregar% to 8lose6en%e% fun%s: you shoul% $e (re(are% to 8ommit fun%s for the8om(lete tenor of the s(e8ifi8 s8heme-

Any investment in mutual fun%s means that you are ha((y to ta.e a %egree of

investment ris. in return of the (otential for su(erior returns than 8an $e o$taine%from fi>e% %e(osits: in the full .no/le%ge that this out8ome is not guarantee% an%that it is (ossi$le you 8oul% ma.e a loss on your investment-

Hou shoul% also 8onsi%er 8arefully ho/ mu8h you /ant to 8ommit to any onety(e of investment: as over e>(osure to any (arti8ular investment is notre8ommen%e%-

Can I 2#an$e m* min" an" en2a# m* inve!men! a! an* !imeJ

Hes you 8an- Hou /ill ho/ever in8ur any e>it loa%s "'!" as may $e a((li8a$lean% if the (ri8e of the units has move% against you: then you /ill e>(erien8e a8a(ital loss- In 8ase of 8lose6en%e% fun%s: (remature e>it 8osts 8an $e es(e8iallystee(-

H(w "( I kee' !ra2k () m* inve!men!J

Dery easily: the (ri8e of units is availa$le through a variety of sour8es in8lu%ingne/s(a(ers: the internet *at ///-amfiin%ia-8om+: statements re8eive% from the

AM" or %ire8t enuiry to your !B" Relationshi( Manager-

W#a! a%(u! !a5J

23
http://www.amfiindia.com/http://www.amfiindia.com/


25/73

Hou shoul% refer to the s(e8ifi8 fun% %o8umentation for a full a((re8iation of theta> 8onseuen8es of $oth the fun% itself an% any effe8t this /ill have on you(ersonally- !B" %oes not give ta> a%vi8e an% /e re8ommen% you 8onsult yourusual ta> a%viser for fuller %etails as to ho/ you /ill $e (ersonally affe8te%- Theta> $enefits an% im(li8ations mentione% in any mar.eting material (rovi%e% $ythe fun% house are as (er 8urrently a((li8a$le ta> la/s an% are su$9e8t to 8hange

in future-

?- SYSTEMATIC INVESTMENT PLAN :SIPe% amount every month-;et Rs-4222When the NAD is high: you /ill get fe/er units- When it %ro(s: you /ill get more

.a!e NAV A''r(5 num%er () uni! *(u will$e! a! R-6@@@

an 6 6@ 6@@

Fe% 6 6@-B B-?

Mar 6 66 @-@

A'r 6 -B 6@B-

Ma* 6 666-66

un 6 66-B -B

Within si> months: you /oul% have @:5 units $y investing 9ust Rs-4222 every

month-

H(w an SIP 2(reJIt ma.es you %is8i(line% in your savings- Every month you are for8e% to .ee(assure% amount- This 8oul% either $e %e$ite% %ire8tly from your a88ount or you8oul% give mutual fun% (ost6%ate% 8heues- As you see a$ove: it hel(s you ma.emoney over the long term- !in8e you get more /hen the NAD %ro(s & fe/er

25


27/73

/hen it rises: the 8ost average out over time- !o over all the u(s & %o/ns of themar.et /ithout any %rasti8 losses-

Also: a num$er of mutual fun%s %o not 8harge an entry loa% if you o(t for an !IPa (er8entage of the amount you are investing- & if you %o not e>it *sell your unitsa year of $uying the units: you %o not have to (ay an e>it loa%+ *same as an entry

loa%: e>8e(t this is 8harge% /hen you sell your units+-If: ho/ever: you %o sell your units /ithin a year: you /oul% $e 8harge% an e>it lo/(ays to stay investe% for the long6run-The $est /ay to enter a mutual fun% is via an !IP- But to get the $enefit of an !IPat least a three6year time frame is nee%e% /hen you /ont tou8h your money-

D- INS1RANCEthe (oli8y: a%9usting losses: an% su((lying the 8a(ital Inuran2e: in la/ an%e8onomies: is a form of ris. management (rimarily use% to he%ge against the ris.of a 8ontingent loss- Insuran8e is %efine% as the euita$le transfer of the ris. of a(otential loss: from one entity to another: in e>8hange for a (remium- Inurer7ine8onomi8s: is the 8om(any that sells the insuran8e- Inuran2e ra!eis a fa8tor

use% to %etermine the amount: 8alle% the Premium7to $e 8harge% for a 8ertainamount of insuran8e 8overage- Ris. management: the (ra8ti8e of a((raising an%8ontrolling ris.: has evolve% as a %is8rete fiel% of stu%y an% (ra8ti8e-

4 A lar$e num%er () #(m($ene(u e5'(ure uni!- The vast ma9orityof insuran8e (oli8ies are (rovi%e% for in%ivi%ual mem$ers of very large8lasses- Automo$ile insuran8e: for e>am(le: 8overe% a$out 4?@ millionautomo$iles in the isten8e of a large num$er of homogeneous e>(osure unitsallo/s insurers to $enefit from the so68alle% #la/ of large num$ers:)

/hi8h is effe8t states that as the num$er of e>(osure units in8reases:the a8tual results are in8reasingly li.ely to $e8ome 8lose to e>(e8te%results- There are e>8e(tions to this 8riterion- ;loy%s of ;on%on isfamous for insuring the life or health of a8tors: a8tresses an% s(ortsfigures- !atellite ;aun8h insuran8e 8overs events that are infreuent:large 8ommer8ial (ro(erty (oli8ies may insure e>8e(tional (ro(ertiesfor /hi8h there are no homogeneous e>(osure units- 'es(ite failing ofthis 8riterion: many e>(osures li.e these are generally 8onsi%ere% to$e insura$le

26
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28/73

a .e)ini!e L(- The event that gives rise to the loss that is su$9e8tto insuran8e shoul%: at least in (rin8i(le: ta.e (la8e% at a .no/ntime: in a .no/n (la8e: an% from a .no/n 8ause- The 8lassi8e>am(le is %eath of an insure% on a life insuran8e (oli8y- Fire:automo$ile a88i%ents: an% /or.er in9uries may all easily meet this

8riterion- Other ty(es of losses may only $e %efinite in theory:O88u(ational %isease: for instan8e: may involve (rolonge%e>(osure to in9urious 8on%itions /here no s(e8ifi8 time: (la8e or8ause is i%entifia$le : I%eally: the time: (la8e an% 8ause of a lossshoul% $e 8lear enough that a reasona$le (erson: /ith suffi8ientinformation:8oul% o$9e8tively verify all three elements-

3 A22i"en!al L(- The event that 8onstitute the trigger of a 8laimshoul% $e fortuitous: or at least outsi%e the 8ontrol of the $enefi8iary ofthe insuran8e- The loss shoul% $e (ure: in the sense that it results

from an event for /hi8h there is only the o((ortunity for 8ost- Eventsthat 8ontain s(e8ulative elements: su8h as or%inary $usiness ris.s: aregenerally not 8onsi%ere% insura$le-

= Lar$e L(- The sie of the loss must $e meaningful from the(ers(e8tive of the insure%- Insuran8e Premiums nee% to 8over $oth thee>(e8te% 8ost of losses: (lus the 8ost of issuing an% a%ministeringnee%e% to reasona$le assure that the insurer /ill $e a$le to (ay8laims- For small losses these latter 8osts may $e several times thesie of the e>(e8te% 8ost of losses- There is little (oint in (aying su8h8osts unless the (rote8tion offere% has real value to a $uyer-

5 A))(r"a%le Premium- If the li.elihoo% of an insure% event is so high:

or the 8ost of the event so large: that the resulting (remium is largerelative to the amount of (rote8tion offere%: it is not li.ely that anyone/ill $uy insuran8e: even if on offer- Further: as the a88ounting(rofession formally re8ognies in finan8ial a88ounting stan%ar%s *!eeFA! 44= for e>am(le+: the (remium 8annot $e so large that there is nota reasona$le 8han8e of a signifi8ant loss to the insurer- If there is nosu8h 8han8e of loss: the transa8tion may have the form of insuran8e:$ut not the su$stan8e-

@ Cal2ula%le L(- There are t/o elements that must $e at leastestimata$le: if not formally 8al8ula$le e>er8ise: /hile 8ost has more to%o /ith the a$ility of a reasona$le (resente% un%er that (oli8y to ma.e

a reasona$ly %efinite an% o$9e8tive of the amount of the lossre8overa$le as a result of the 8laim-

1 Limi!e" rik () 2a!a!r('#i2all* lar$e l(e- The Essential ris. isoften aggregation- If the same event 8an 8ause losses to numerous(oli8yhol%ers of the same insurer: the a$ility of that insurer to issuer(oli8ies $e8omes 8onstraine%: not $y fa8tors surroun%ing the in%ivi%ual8hara8teristi8s of a given (oli8yhol%er: $ut $y the fa8tors surroun%ingthe sum of all (oli8yhol%ers so e>(ose%- Ty(i8ally: insurers (refer tolimit their e>(osure to a loss

27


29/73

from a single event to some small (ortion of their 8a(ital $ase: on the or%er of@- Where the loss 8an $e aggregate%: or an in%ivi%ual (oli8y 8oul% (ro%u8e

e>8e(tionally large 8laims: the 8a(ital 8onstraint /ill restri8t an insurers a((etitefor a%%itional (oli8yhol%ers- The 8lassi8 e>am(le is earthua.e insuran8e: /herethe a$ility of an un%er/riter to issue a (oli8y %e(en%s on the num$er an% sie ofthe (oli8ies that it has alrea%y un%er/ritten- Win% insuran8e in hurri8ane ones:(arti8ularly along 8oast lines: is another e>am(le of this (henomenon- In e>treme8ases: the aggregation 8an affe8t the entire in%ustry: sin8e the 8om$ine% 8a(italof insurers an% reinsures 8an $e small 8om(are% to the nee%s of (otential(oli8yhol%ers in areas e>(ose% to aggregation ris.- In 8ommer8ial fire insuran8eit is (ossi$le to fin% single (ro(erties /hose total e>(ose% value is /ell in e>8essof any insurers: or are insure% $y a single insurer /ho syn%i8ates the ris. into thereinsuran8e mar.et-

Inurer9 %uine m("el

Profit Q earne% (remium investment in8ome 6 in8urre% loss 6un%er/riting e>(enses-

Insurers ma.e money in t/o /ays, *4+ through un%er/riting: the (ro8ess$y insurers sele8ts the ris.s to insure an% %e8i%e ho/ mu8h in(remiums to 8harge for a88e(ting those ris.s an% *3+ $y investing the

(remiums they 8olle8t from insure%s-

The most %iffi8ult as(e8t of the insuran8e $usiness is the un%er/riting of(oli8ies-


30/73

T*'e () inuran2e

Any ris. that 8an $e uantifie% 8an (otentially $e insure%- !(e8ifi8 .in%s ofris. that may give rise to 8laims are .no/n as #(erils)- An insuran8e (oli8y/ill set out in %etails /hi8h (erils are 8overe% $y the (oli8y an% /hi8h arenot-

Belo/ is a *non6e>haustive+ list of the many %ifferent ty(es of insuran8ethat e>ist- A single (oli8y may 8over ris.s in one or more of the 8ategoriesset forth $elo/- For e>am(le: auto insuran8e /oul% ty(i8ally 8over $oth(ro(erty ris. *8overing the ris. of theft or %amage to the 8ar+ an% lia$ilityris. *8overing legal 8laims form 8ausing an a88i%ent+- A homeo/nersinsuran8e (oli8y in the (enses of guests /ho are in9ure% on the o/ners(ro(erty-

Au!(m(%ile inuran2e: .no/ in the


31/73

Caual!* inuran2einsures against a88i%ents: not ne8essarily tie%

to any s(e8ifi8 (ro(erty-

Cre"i! inuran2ere(ays some or all of a loan $a8. /hen 8ertain

things ha((en to the $orro/er su8h as unem(loyment: %isa$ility: or

%eath- Mortgage insuran8e */hi8h sees $elo/+ is a form of 8re%itinsuran8e: although the name 8re%it insuran8e more often is use%to refer to (oli8ies that 8over other .in%s of %e$t-

Crime inuran2einsures the (oli8yhol%er against losses from the

8riminal a8ts of thir% (arties- For e>am(le: a 8om(any 8ano$tain 8rime insuran8e to 8over losses arising from theft orem$element-

Cr(' inuran2e#Farmers use 8ro( insuran8e to re%u8e or manage

various ris.s asso8iate% /ith gro/ing 8ro(s- !u8h ris.s in8lu%e8ro( loss or %amage 8ause% $y /eather: hail: %rought: frost%amage: inse8ts: or %isease: for instan8e-

Heal!# inuran2e (oli8ies /ill often 8over the 8ost of (rivate

me%i8al treatments if the National ealth !ervi8e in the


32/73

HS+C TIE&1P WITH TATA AI/

Tata AIG ;ife Insuran8e "om(any limite%*Tata AIG life+ is a 9oint venture8om(any: forme% $y the Tata Grou( an% Ameri8an International Grou(: In8-*AIG+- Tata AIG life 8om$ines the Tata Grou(s (re6eminent lea%ershi( (osition inIn%ia an% AIGs glo$al (resen8e as the /orl%s lea%ing international insuran8ean% finan8ial servi8es organiation- The Tata Grou( hol%s ?5 (er8ent sta.e in theinsuran8e venture /ith AIG hol%ing the $alan8e 31 (er8ent- Tata AIG life (rovi%esinsuran8e solutions to in%ivi%uals an% 8or(orates- Tata AIG life insuran8e8om(any /as li8ense% to o(erate in In%ia on Fe$ruary 43:3224 an% starte%o(erations on

A(ril 4:3224

A 1NIT LINKE. INS1RANCE PLAN :1LIPi$ility of In8reasing !um Assure%

"over For the Whole of ;ife

;oyalty A%%itions

Fle>i$ility in Paying Premiums

Fle>i$ility of "hoosing your Investment Fun%

Fle>i$ility of !/it8hing Bet/een Fun%s

Fle>i$ility of To((ing6


35/73

.- Ma#aLi)e4 T#e W#(le Li)e Plan

Tata AIG ;ifes Maha;ife (lan is truly one of a .in%- For a start: itoffers you /ay too many $enefits,

Only a 43 year (remium (aying (erio% for lifetime 8overage-

Guarantee% annual (ayment for life from the 43th (oli8y anniversaryon/ar%s- Ta> free-

On %eath or at maturity at age 422: the entire sum assure% /ill $e (ai%-Ta>6free-

"ash %ivi%en%s from the 1th(oli8y anniversary on/ar%s- Ta>6free-

Premiums (ai% eligi$le for ta> e>em(tion $enefit- As (er 8urrent ta> la/s-

W#( i eli$i%le )(r !#i '(li2*J

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The minimum age of eligi$ility for this (oli8y is =2 %ays: /hi8h means: if you$uy this (oli8y for your 8hil% you only have to (ay (remiums for 43 years:after /hi8h the 8hil% gets an in8ome as /ell as 8overage for his entire life-The ma>imum age if eligi$ility is @2 years: /hi8h ma.es it i%eal for you as/ell: $e8ause it (rovi%es $oth a (ension an% lifetime 8overage-

35


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COMPANY PROFILE

Hi!(r*4The !B" Grou( is name% after its foun%ing mem$er: The ong.ong an%!hanghai Ban.ing "or(oration ;imite%: /hi8h /as esta$lishe% in 41@ to finan8ethe gro/ing tra%e $et/een Euro(e: In%ia an% "hina-

The ins(iration $ehin% the foun%ing of the $an. /as Thomas !utherlan%: a !8ot/ho /as then /or.ing for the Peninsular an% Oriental !team Navigation"om(any- e realie% that there /as 8onsi%era$le %eman% for lo8al $an.ingfa8ilities in ong 0ong an% on the "hina 8oast an% he hel(e% to esta$lish the$an.: /hi8h o(ene% in ong 0ong in Mar8h 41@ an% in !hanghai a month later-

!oon after its formation the $an. o(ene% agen8ies an% $ran8hes aroun% the/orl%- Although that net/or. rea8he% as far as Euro(e an% North Ameri8a: theem(hasis /as on $uil%ing u( re(resentation in "hina an% the rest of the Asia6Pa8ifi8 region- !B" /as a (ioneer of mo%ern $an.ing (ra8ti8es in a num$er of8ountries- In 7a(an: /here a $ran8h /as esta$lishe% in 411: the $an. a8te% asa%viser to the government on $an.ing an% 8urren8y- In 4: it /as the first $an.to $e esta$lishe% in Thailan%: /here it (rinte% the 8ountrys first $an.notes-

From the outset tra%e finan8e /as a strong feature of the lo8al an% international$usiness of the $an.: an e>(ertise that has $een re8ognie% throughout itshistory- Bullion: e>8hange: mer8hant $an.ing an% note issuing also (laye% anim(ortant (art- By the 42s: the $an. /as a8ting as $an.er to the ong 0onggovernment an% also (arti8i(ate% in the management of British governmenta88ounts in "hina: 7a(an: Penang an% !inga(ore- In 4?5 the $an. han%le%"hinas first (u$li8 loan an% thereafter issue% most of "hinas (u$li8 loans-

W#a! i HS+CJ

We are the /orl%s lo8al $an.-ea%uarters in ;on%on: !B" is one of the largest $an.ing & finan8ial servi8esorganiation in the /orl%-!B"s international net/or. 8om(rises over @22 offi8es in ?1 8ountries &territories in Euro(e: the Asia6Pa8ifi8 region: the Ameri8as: the Mi%%le East &

Afri8a-With listings on the ;on%on: ong.ong: Ne/ Hor.: Paris & Bermu%a sto8.e>8hange shares in !B" hol%ings (la8es are hel% $y nearly 322:222

36


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sharehol%ers in some 422 8ountries & territories- The shares are tra%e% on theNe/ Hor. sto8. e>8hange in the form of Ameri8an 'e(ository Re8ei(ts-Through an international net/or. lin.e% $y a%vertisement te8hniues: in8lu%ing ara(i%ly gro/ing e68ommer8e 8a(a$ility: !B" (rovi%es a 8om(rehensive rangeof finan8ial servi8es li.e6

3 Personal finan8ial servi8es= "ommer8ial Ban.ing5 "or(orate Ban.ing@ Investment Ban.ing

THE HS+C /RO1P IN IN.IA

Hear of 8ommen8ement of o(erations in In%ia

The Mer8antile Ban. of In%ia: "hina & ;on%on , 4@=The ong.ong & !hanghai Ban.ing "or(oration ;imite% *BAP+ , 41?!B" !e8urities & "a(ital Mar.ets *In%ia+ Private ;imite% *BAP+ , 4@!B" Private Euity Management *Mauritius+ ;imite%*In%ia liaison Offi8e+ *PEIN+ , 4@!B" Ele8troni8 'ata Pro8essing In%ia Private ;imite% *'PI+ , 3222!B" Primary 'ealershi( *In%ia+ Private ;imite% *"P'+ , 3224!B" Professional !ervi8es *In%ia+ Private ;imite% *P!I+ , 3224!B" !oft/are 'evelo(ment *In%ia+ Private ;imite% *!'I+ , 3223!B" Asset Management *In%ia+ Private ;imite% *I!IN+ , 3223!B" Insuran8e Bro.ers *In%ia+ Private ;imite% *ININ+ , 322=!B" O(erations & (ro8essing enter(rise*In%ia+ Pvt- ;t%- *OPE+ , 322="anara !B" Oriental $an. of 8ommer8e ;ife insuran8e 8o- ;t%- , 322

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O))i2e in in"ia Num%er O) em'l(*eea a! ?6! ul* @@

H+AP , @? :@=3

HSCI , 3 42

PEIN , 4 4=

H.PI , 41:1@2

HPSI , 4 @5

HS.I , 5 @:3

ININ , @ 32

HOPE, 4= =:3?5AMIN , 4 41

HFHI 4 24 24

38

TOTAL : 110 34,307


40/73

THE HON/KON/ 3 SHAN/HAI +ANKIN/ CORPORATIONLIMITE. :HS+C

39

Zone Branch Location No. of Branches


41/73

The !B" Grou( 8ommen8e% o(erations in In%ia in 41? /ith a $ran8h in"al8utta- They 8laim an earlier 8ommen8ement: as the Mer8antile Ban. of In%ia:

"hina & ;on%on: /hi8h the grou( a8uire% in 4@: /as esta$lishe% in 4@=:/ith a $ran8h in Bom$ay-

The Ban. has relo8ate% some $ran8hes in Mum$ai: Ne/ 'elhi: "hennai:Banglore: 0ol.ata & Disa.ha(atnam from /hat /ere on8e im(ortant tra%e8entres to more a((ro(riate (resent %ay lo8ations that hol% our target 8ustomer$ase-

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PERSONAL FINANCIAL SERVICES :PFS

Sam'le i8e

4@2 RE!PON'ENT!: I have 8olle8te% the %ata through stru8ture uestionnaire-

All these %ata is 8olle8te% through retail investors: $usiness men: $uil%ers:

in%ustrialists: e>(orters: %o8tors : et8-

PRIMARY .ATA

!am(ling is the (ro8ess of 8olle8ting information only from a small re(resentative

(art of the (o(ulation- !tratifie% Ran%om !am(ling is one amongst the most

elementary ran%om sam(ling te8hniues- A stratifie% ran%om sam(ling is a

metho% that allo/s ea8h (ossi$le sam(le to have an eual (ro$a$ility of $eing

(i8.e% an% ea8h item or in%ivi%ual in the entire (o(ulation have an eual 8han8e

of $eing in8lu%e% in the sam(le- For this (ro9e8t /or.: /ithout re(la8ement

sam(ling metho% is use%- It means that a (erson or item on8e sele8te% is not

returne% to the frame an% therefore 8annot $e sele8te% again- This sele8tion

(ro8ess 8ontinues until the %esire% sam(le sie n is o$taine%-The survey /as 8arrie% out at various levels & the target grou( /as retailinvestors: $usiness men: $uil%ers: in%ustrialists: e>(orters: %o8tors et8-Cuestionnaires /ere use% as an instrument to 8olle8t the (rimary %ata-

This %ata /as o$taine% $y various (romotion s8hemes li.e6

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CANNOPIES6 /e (ut 8ano(ies in front of various finan8ial institutionsli.e $an.s: 8ommer8ial (la8es: an% entertainment (la8es li.e Agar/alto/er: !hastri 8ir8le: "or(orate hu$ et8- There (eo(le

a((roa8h us an% /e give them the uestionnaire to fill an% (rovi%e the%etails of !B" (ro%u8ts-

APPROACHIN/ TO IN.1STRIAL 1NITS 6 We a((roa8h to in%ustrialareas an% give the uestionnaire to fill an% e>(lain the %etails of various!B" (ro%u8ts-

SECON.ARY .ATA

The !e8on%ary %ata are those: /hi8h have alrea%y $een 8olle8te% an%$eing (ro8esse% through the statisti8al (ro8ess-We got the se8on%ary %ata through

PREVIO1S TRANSACTION RECOR.S&

i We got the re8or%s of those (eo(le /ho have alrea%yinveste% in !B"-

ii Through %ire8tory6 We got the re8or%s of E>(orters:Businessmen: ar8hite8ts et8-

P('ula!i(n .e)ini!i(n

Element, Retail Investors: Business Men: Buil%ers:In%ustrialists: E>(orters: !enior "itiens: an%others-

!am(le


46/73

ANALYSIS AN. INTERPRETATION

Euity @2

'e$t 52

"ash 42

A/RESSIVE iNVESTORS

Euity 'e$t "ash

Eui!* >B.e%! @Ca# 6B

In the a$ove ta$le ?@ investors in Euity: 12 in 'e$t: & 4@ in "ash-'e$t instruments are6 "om(any fi>e% %e(osits: $on%s: Government !e8uritiesfun%: an% Govt- !aving s8hemes: Pension !8hemesEuity Instruments are6 Euity fun%s %iversifie%: Euity fun%s !e8toral Plan:Balan8e% Fun% *Euity Portion+: Euity IPO-"ash Instruments6 ;iui% Fun%s: Government !e8urities: In8ome Fun%s longTerm *In8lu%ing MIP+-

Aggressive investors 8om(rises of @2 in Euity: 42 in "ash: 52 in 'e$t-

45


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12=2

42

M("era!e Inve!(r

'e$t Euity "ash

.e%! @Eui!* DBCa# 6B

In the a$ove ta$le 5@ investors invest in Euity: 2 in 'e$t: & 4@ in "ash-'e$t instruments are6 "om(any fi>e% %e(osits: $on%s: Government !e8uritiesfun%: an% Govt- !aving s8hemes: Pension !8hemes-Euity Instruments are6 Euity fun%s %iversifie%: Euity Fun%s !e8toral Plan:Balan8e% Fun% *Euity Portion+: Euity IPO-"ash Instrument6 ;iui% Fun%s: Government !e8urities: In8ome Fun%s ;ongterm *in8lu%ing MIP+-Mo%erate investor 8om(rises of 12 in 'e$t: 42 in 8ash: an% =2 in Euity-

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?242

32

C(nerva!ive Inve!(r

'e$t "ash Euity

.e%! >@Ca# 6@Eui!* @

In the a$ove ta$le 32 investors invest in Euity: ?2 in 'e$t: &42 in "ash

'e$t Instruments are6 "om(any fi>e% %e(osits: $on%s: Government !e8uritiesfun%: an% Govt- !aving !8hemes: Pension !8hemes-Euity Instruments are6 Euity fun%s %iversifie%: Euity fun%s !e8toral Plan:Balan8e% Fun% *Euity Portion+: Euity IPO-"ash Instruments6 ;iui% Fun%s: Government !e8urities: an% In8ome Fun%s;ong Term *in8lu%ing MIP+-"onservative Investors 8om(rises of ?2 in 'e$t: 42 in "ash: an% 32 inEuity-

47


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'e$t 2

"ash 42Euity 42

Ver* C(nerva!ive Inve!(r

'e$t "ash Euity

.e%! 6@Ca# 6BEui!* 6B

In the a$ove ta$le 4@ investors invest in Euity: 432 in 'e$t: &432 in "ash-

'e$t Instruments are6 "om(any fi>e% %e(osits: $on%s: Government !e8uritiesFun%: an% Govt !aving !8hemes: Pensions !8hemes-Euity Instruments are6 Euity Fun%s %iversifie%: Euity Fun%s !e8toral Plan:Balan8e% Fun% *Euity (ortion+: an% Euity IPO-"ash Instruments6 ;iui% Fun%s: Government !e8urities: an% In8ome Fun%s;ong Term *in8lu%ing MIP+Dery 8onservative investors 8om(rises of 2 in %e$t: 42 in "ash & 42 in Euity

48


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12064;A0 4;A063;A03;A06=;A0=;A06ABODE2

42

32

=2

52

@2

12

?2

N(- O) Inve(!(r F(un" Wi!# T#eir Annual I2(me

@K&6LAKH 6LAKH&LAKH DLAKH&?LAKH D?LAKH&A+OVE 6

In the a$ove ta$le 13 investors are those /ho fell in the in8ome sla$ from 12thousan% to 4 la.h: 5 investors fell in the in8ome sla$ form 4 la.h63la.h: 35Investors fell in the in8ome sla$ from 3 la.h6=la.h: 41 investors fell in thein8ome sla$ of a$ove = la.hs-

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Aggressive InvestorsMo%erate Investors"onservative InvestorsDery "onservative Investors2

42

32

=2

52

@2

12

?2

T*'e () Inve!(r

A$$reive Inve!(r 6M("era!e Inve!(r @C(nerva!ive Inve!(r D>Ver* C(nerva!iveInve!(r B

4 investors are foun% Aggressive: 12 investors are foun% Mo%erate: an% 5?Investors are foun% "onservative & 3@ Investors are foun% very 8onservativein the survey-

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u' !( B; ?B;&6@; M(re T#an 6@; D?

In the a$ove ta$le = Investors u( to @ of their in8ome: 1 investors invest u(to @642 of their in8ome & 5= investors invest more than 42 of their in8ome-

In the a$ove gra(h 3@ of total surveye% investors invest u( to @ monthly-

51 of the total surveye% investors invest u( to @642 monthly-3 of the total surveye% investors invest more than 42 monthly-

51


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4=

14

3@

E5'e2!a!i(n O) Inve!(r re$ar"in$ !#eir Inve!men! !( $r(w

!tea%ily At average Fast

S!ea"il* @A!avera$e Fa! ?

In the a$ove ta$le 32 investors e>(e8te% their investment to gro/ stea%ily-

3 investors e>(e8te% their investment to gro/ at a average rate-= investors e>(e8te% their investment to gro/ at a fast rate-In the a$ove gra(h 4= of the surveye% investors e>(e8te% their investments togro/ stea%ily 13 of the surveye% investors e>(e8te% their investments to gro/at an average rate- 3@ of the surveye% investors e>(e8te% their investments togro/ at a fast rate-

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4@

15

34

Per2e'!i(n () Inve!(r wi!# re'2e!ive !( re!urn

!afety of Prin8i(al Earning return a$ove inflation rate

Earning igh returns

Sa)e!* () Prin2i'al

Earnin$ re!urn a%(vein)la!i(n ra!e Earnin$ Hi$# re!urn ?

In the a$ove ta$le 33 surveye% investors gave more im(ortan8e to safety of(rin8i(al: 1 investors gave more im(ortan8e to earning returns a$ove inflationrate: =3 investors gave more im(ortan8e to earning high returns-4@ of the surveye% investors ha% a (rimary motive of the safety of (rin8i(al:15 of the surveye% investors /ere more 8on8erne% a$out earning returnsa$ove inflation rate- 34 of the surveye% investors /ere more 8on8erne% a$outearning high returns-

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NilM

AverageM 1

Goo%M 3=

Inve!(rN Kn(wle"$e a%(u! vari(u Inve!men! S2#eme

Nil Average Goo%

Nil 6Avera$e 6@D/((" ?D

In the a$ove ta$le 43 investors /ere foun% /ith no .no/le%ge a$out variousinvestment s8hemes: 425 investors /ere foun% /ith average .no/le%ge a$outvarious investment s8hemes: =5 investors /ere foun% /ith goo% .no/le%gea$out various investment s8hemes-In the a$ove gra(h out of total surveye% investors /ere foun% /ith nilinvestment .no/le%ge: 1 /ere foun% /ith average investment .no/le%ge:3= /ere foun% /ith goo% investment .no/le%ge-

55


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A$ove @2 @4Bet/een =26@2 =3

Bet/een 326=2 4?

A$e /r(u' () Vari(u Inve!(r

A$ove @2 Bet/een =26@2 Bet/ een 326=2

In this a$ove ta$le out of the total surveye% investors?1 investors are a$ove @2 years: 5 are $et/een =26@2 years & 31 investors are$et/een 326=2 years-In the a$ove gra(h @4 /ere a$ove @2 years 4? /ere $et/een 326=2: & =3/ere $et/een =26@2-

56

A%(ve B@ >+e!ween ?@&B@ D+e!ween @&?@


58/73

!e8ure% 1@Not !e8ure% 4

'oesnLt affe8t 41

O22u'a!i(n S!a!u () Vari(u Inve!(r

!e8ure% Not !e8ure% 'oesnLt affe8t

Se2ure" N(!Se2ure" .(en!a))e2! D

In the a$ove ta$le out of the total surveye% investors investors /ere foun%/ith 9o$ se8urity: 3 investors /ere foun% /ith unse8ure% 9o$s & 35 investors/ere foun% in a no affe8t status-In the a$ove gra(h 1@ of the investors /ere in a state of se8ure% 9o$s: 4 ofthe investors /ere in the state of unse8ure% 9o$s & 41 of the investors /ere inthe state /here this fa8tor %oesnt affe8t them-

57


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More than 3 1@463 %e(en%ents 34

None 4=

Famil* S!a!u () Vari(u Inve!(r

More than 3 463 %e(en%ents None

M(re !#an 6&"e'en"en! ?N(ne @

In the a$ove ta$le out of the total surveye% investors investors /ere those/ho are having more than 3 %e(en%ents: =3 investors /ere those /ho arehaving 463 %e(en%ents: 32 investors /ere those /ho %i%nt ha% any %e(en%ent-In the a$ove gra(h 11 investors /ere those /ho are having more than 3%e(en%ents: 34 investors /ere those /ho are having 463 %e(en%ents & 4=investors are those /ho having no %e(en%ents-

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E%u8ate% Die/ 4@

Frien%ly A%vi8e 5

Guess Wor. =?

Inve!(r a''r(a2# in makin$ an Inve!men! "e2ii(n

E%u8ate% Die/ Frien%ly A%vi8e Guess Wor.

E"u2a!e"View Frien"l*A"vi2e >?/ue W(rk BB

In the a$ove ta$le out of the total surveye% investors 33 investors too. e%u8ate%vie/ $efore investment: ?= too. frien%ly a%vi8e $efore investment & @@ ma%eguess /or.-In the a$ove gra(h 5 too. frien%ly a%vi8e: 4@ too. e%u8ate% vie/ & =?ma%e guess /or.-

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With%ra/M 4

WaitM @=

InvestM 3

View () !#e Inve!(r i) !#e !(2k marke! 2ra#e" "(wn

Wi!#"raw Wai! >Inve! D?

Out of the total surveye% investors 3 investors /ere foun% in a state of/ith%ra/al of money: ? investors /ere foun% out in the state of /ait & /at8h &5= investors /ere foun% out in the state of more investment in the mar.et if themar.et 8rashes %o/n-In the a$ove gra(h @3 /ill /ait & /at8h 3 /ill invest more & 4 investors/ill /ith%ra/ their money-

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MARK

ET

/ROWTH

MARKET SHARE

STAR CATE/ORY PRO.1CT4 These are the (ro%u8ts that are not only mar.et

lea%ers $ut are also gro/ing fast- By this stu%y it 8an $e analyse% that F' is a(ro%u8t of !TAR "ATEGORH- If /e analyse the 8urrent status of investments:then all res(on%ents have their investments & if they are (rovi%e% /ithRs-42:22:222 then too they /ill invest a (art of it in F'- en8e (resently F' hasa large Mar.et !hare & in future also its mar.et share /ill in8rease $ut not%e8rease-

CASH COW PRO.1CT4 !u8h (ro%u8ts are /ea. in $oth the fa8tors i-e-: lo/gro/th & lo/ mar.et share- The investment avenues 8oming in this 8ategory are!IPs-Professional have investe% in !IP: $ut this is restri8te% to their future & !IP is$est o(tion for the $usinessmen- Rather (eo(le /oul% li.e to invest money in(ost offi8e-

61

!TAR

*F-'-+

C


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.O/ CATE/ORY PRO.1CT4 Pro%u8ts of this 8ategory are 8ategorie% $y'ominant share & ;o/ gro/th- The investments avenues 8oming in this 8ategoryis IN!


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FIN.IN/S

The $asi8 thrust of the resear8h is to fin% out ty(es of investors & their (ortfolio &their (rofile-

On the $asis of uestionnaire 8ertain (oints are given to the investors-

4- Those investors /ho o$taine% $et/een 4126312 are very 8onservative-3- Those investors /ho o$taine% $et/een 3146=52 are 8onservative

investors-=- Those investors /ho o$taine% $et/een =546542 are mo%erate investors-5- Those investors /ho o$taine% $et/een 544652 are aggressive investors-

A- In the survey 4 investors /ere foun% aggressive out of the total of 4@2

surveye% investors- The asset allo8ations of aggressive Investors are as follo/sThey invest @2 in euity instruments: 52 in %e$t instruments & 42 in 8ashinstruments-

B- 12 investors /ere foun% to $e mo%erate Investors- The asset allo8ations ofthese investors are as follo/s12 of the surveye% investors invest in %e$t & =2 of the them invest in euity &remaining 42 of them invest in 8ash instruments-

"- 5? investors foun% to $e 8onservative investors out of the total 4@2 surveye%investors- The asset allo8ations of 8onservative investors are as follo/s

?2 of them invest in %e$t instrument:32 of them invest in euity instruments:& 42 of them invest in 8ash instruments-

'- 3@ investors /ere foun% to $e very 8onservative out of the total 4@2 surveye%investors- Their asset allo8ations are as follo/s2 of them invest in %e$t instruments: 42 of them invest in euityinstruments: & 42 of them invest in 8ash instruments-

E- In the survey the %ata /as o$taine% regar%ing the investment 8a(a8ity of theinvestors also in or%er to get the (ur8hasing (o/er an% finan8ial effi8ien8y of the

investors-3@ of the total surveye% investors investe% u( to @ of their monthly in8ome-51 of the total surveye% investors investe% u( to @ to 42 of their monthlyin8ome-3 of the total surveye% investors investe% more than 42 to their monthlyin8ome-

F- The investment ma%e for the last num$er of years is also ta.en into8onsi%eration to ta.e into a88ount their investment (erio%s-

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41 of the total surveye% investors /ere investing sin8e last 46@ years-=? of the total surveye% investors /ere investing sin8e last @642 years-5= of the total surveye% investors /ere investing sin8e last 42 years an%a$ove-

G- E>(e8tations of the investors regar%ing their investments to gro/ /ere also

foun% out $e8ause on its $asis /e 8an ma.e out 8onsumers investment%e8isions an% 8onsumers min% setu( it /as all (sy8hologi8al $ase%-Out of the total surveye% investors only 4= e>(e8te% their investment to gro/stea%ily-Out of the total surveye% investors only 13 e>(e8te% their investment to gro/ ataverage rate-Out of the total surveye% investors only 3@ e>(e8te% their investment to gro/ ata fast rate-

- The most im(ortant (art of this survey /as to .no/ a$out the (er8e(tion ofthe investors /ith res(e8t to returns- The follo/ing results /ere o$taine%-

4@ of the total surveye% investors ha% a (er8e(tion that safety of (rin8i(al istheir (rimary area of 8on8ern-15 of the total surveye% investors ha% a (er8e(tion that earning returns a$oveinflation rate is their (rimary area of 8on8ern-34 of the total surveye% investors ha% a (er8e(tion that earning high returns istheir (rimary area of 8on8ern

I- As far as investors .no/le%ge (art regar%ing various investment s8hemes is

8on8erne% it /as foun% that

1 of the total surveye% investors ha% average .no/le%ge a$out variousinvestment s8hemes- of the total surveye% investors ha% no .no/le%ge a$out various investments8hemes3= of the total surveye% investors ha% goo% .no/le%ge a$out variousinvestment s8hemes-

7- Age grou( /as also a rational issue to .no/ /hile 8arrying out the resear8h-It /as foun% that 4? of the total surveye% investors /ere $et/een 32 to =2

years-It /as foun% that =3 of the total surveye% investors /ere $et/een =2 to @2years-It /as foun% that @4 of the total surveye% investors /ere a$ove @2 years-

0- O88u(ation status is also a great fa8tor to .no/ $e8ause it affe8ts 8onsumer$uying $ehavior an% $uying %e8isions-1@ of the total surveye% investors ha% se8ure% o88u(ation-

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4 of the total surveye% investors /ere in the state of non6se8urity ofo88u(ation-41 of the total surveye% investors /ere in that state /here o88u(ation %oesntaffe8t them-

;- To .no/ a$out investment a((roa8h in ma.ing investment %e8isions gives

signifi8an8e to the resear8h as $y .no/ing this as(e8t /e 8an 8on8lu%e to agreat e>tent a$out the ty(e of investors-=? of the total surveye% investors relie% on guess/or.-4@ of the total surveye% investors relie% on the e%u8ate% vie/-

5 of the total surveye% investors relie% on the frien%ly a%vi8e -

RECOMMEN.ATIONS

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4- The investors a$ove the age of @2 years must $e ta.en into 8onsi%erationas they are having great (otential regar%ing investment-

3- !B" must lay %o/n some soun% strategies to tra( more 8ustomers $ygiving them more 8ommission in 8om(arison to other investment 8enters-

=- !B" must use mar.eting tools li.e (oint of (ur8hase: a%vertisement

through Mass Me%ia li.e loa%ing Ne/s(a(ers: Magaines: Television:E>hi$ition: Fairs: !M! on Mo$iles: a%vertisement on the internet-

5- The organiation is la8.ing on the (arameters of motivation- It isre8ommen%e% that the organiation must a%o(t the 8on8e(t of motivation-

@- !B" shoul% organie (rograms for 8ustomer a/areness in %evelo(ingareas an% esta$lish a 8onfi%en8e an% $elief among the 8ustomers resi%ingthere-

CONCL1SION66


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From the analysis of the res(onses re8eive% from the investors in G


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LIMITATIONS

Many 8onstraints /ere involve% in %oing this stu%y- !ome of them are as follo/s-

The most signifi8ant limitation has $een the in%ivi%uals involve% in this

stu%y /ere very $usy an% %i% not s(are mu8h time in %is8ussion-

The sam(le sie sele8te% for the survey /as too small as 8om(are% to

large (o(ulation-

The (ro9e8t /as 8arrie% out only in the 'elhi N8r: so fin%ings on %ata

gathere% 8an $e $est true for 'elhi N8r only an% not a((li8a$le to other

(arts of state an% 8ountry-

In%ian sto8. mar.et is a mar.et /here sentiments (lay a ma9or role in (ri8e

hen8e 422 a88urate (re%i8tions 8annot $e ma%e a$out its future (ath

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+I+LIO/RAPHY

+OOKS4

-4- 0otler Phili(, Mar.eting in Ne/ Millennium: Millennium E%ition Prentin8e

all of In%ia: Ne/ 'elhi-3- "-R 0othari, Resear8h Metho%ology Wishva Pu$li8ation: Ne/ 'elhi-=- M-7 Methe/ , Ris. & Insuran8e Management

MA/AINES4&

4 Business /orl%-3 Invest one= Business To%ay

5 Invest time $y TATA6AIG@ Fun% Fa8t !heets of Relian8e Mutual Fun%-1 Offer 'o8uments of 'ifferent !8hemes-

NEWSPAPERS4&

4- Finan8ial Time-3- E8onomi8 Times-

WE+STIES4

///-relian8emutualfun%-8om ///-hs$8-8o-in ///-google-8om ///-yahoo-8om///-in%iainfiline-8om///-$se-8om

APPEN.ICES

1ESTIONNAIRE

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4- NAME,

3- A''RE!!,

=- PONE NO, *R+ *O+

5- AGE,326=2=26@2A$ove @2

@- PROFE!!ION,

Entre(reneur Private 7o$ Government 7o$In%ustrialist E>(orter

1- IN"OME ;EDE;,

12:222 4: 22:222 3: 22:222 =: 22:2224: 22:222 3: 22:222 A$ove =: 22:222

?- FAMI;H !TAT

'e(en%ents Non6'e(en%ents

- ave you ever investe% in the mar.et

Hes No

If Hes: What is your Portfolioa- Mutual Fun%$- Insuran8e8- !hares%- Others

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- Are you a/are of various !B"s investment s8hemes

Nil Average Fully

42-ave you ever investe% in !B"

Hes No

If yes: youre 'iversifi8ation *Mention your (referen8es+

4- Euity,3- 'e$t,=- "ash,

44- Please ti8.: I Am

First time Investor Regular

ABBREDIATION

!IP, !ystemati8 investment (lan

TM', Term %e(osit

AMFI, Asso8iation of mutual fun%s of In%ia

AM", Asset management 8om(any

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B!E , Bom$ay sto8. e>8hange

MF, Mutual fun%

investment and wealth mgt..docx

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