Summer Internship Project Report_Aakash Kamra

8/2/2019 Summer Internship Project Report_Aakash Kamra

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A STUDY ON RISK PROFILING AND

WEALTH MANAGEMENT

STANDARD CHARTERED BANK

SUBMITTED BY:AAKASH KAMRA

PGDM 2010-2012

Roll no: 2010001

Specialization: Finance & International Business

UNDER THE GUIDANCE OF:

INDUSTRY GUIDE: FACULTY GUIDE:

Mr. AMIT GUPTA Mrs. Ritu Srivastava

RELATIONSHIP MANAGER NIILM-CMS,

STANDARD CHARTERED BANK GREATER NOIDA.

PREET VIHAR, DELHI.

SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME

POST GRADUATE DIPLOMA IN MANAGEMENT (2010-12)

NIILM CENTRE FOR MANAGEMENT STUDIES,

GREATER NOIDA, U.P.


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Certificate of Completion from Faculty Guide

This is to certify that Summer Project Report on Risk Profiling and Wealth

Management prepared by Aakash Kamra, student of PGDM Batch 2010-12 is his

genuine effort under my guidance and supervision.

Signatures of the Faculty Guide Signatures of the Student

Ritu Srivastava Aakash Kamra

======================================================

==


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UNDERTAKING

This is to certify that Mr. Aakash Kamra, a student of Post GraduateDiploma in Management, NIILM-CMS, Greater Noida has worked

in Standard Chartered Bank, under the guidance and supervision of

Mr. AMIT GUPTA, Relationship Manager, Standard Chartered

Bank, Preet Vihar, Delhi. The period of training was of 8 weeks,

starting from 14th

May 2011 to 9th

July 2011. This summer internship

report has the requisite standard for the partial fulfillment of Post

Graduation Diploma. To the best of their knowledge no part of this

report has been reproduced from any other report and the contentsare based on original research.

RITU SRIVASTAVA AAKASH KAMRA


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ACKNOWLEDGEMENT

I take this opportunity to thank all those people who have helped me

in completing this project. The satisfaction that accompanies the

success of any work would be incomplete without the people who

made it possible by constant encouragement and guidance.

I express my sincere gratitude to MR. NIRMALENDU MISHRA,

Branch Manager who provided me the opportunity to undertake the

activity and my Industry Guide MR. AMIT GUPTA, Relationship

Manager, Standard Chartered Bank, Preet Vihar, Delhi. Under his

able guidance, continuous support and cooperation throughout my

project, without which the present work, would not have been

possible.

I am also thankful to my Faculty Guide Mrs. Ritu Srivastava of my

institute, for her continued guidance and invaluable encouragement.

AAKASH KAMRA


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PREFACE

Education is continuous process of learning it covers theoretical as well as behavioral

aspect. Every study is incomplete without having well planned and concrete exposure

to its students. So far management is no exception. This project report was made

during the summer training in partial fulfillment requirement for the Post Graduate

Diploma in Management.

India is a developing country and they all know that banking sector plays a very

important role. In development with the increasing use of banking and finance inevery field, new trends in their technology and modern use are being evolved day

after day to meet the requirements. In fact BANKING has become the need of

today.

The purpose of PROJECT REPORT is to expose the students in the market and in the

field of banking, finance and investments and to develop the ability in the students to

deal with all types of customers.

Preparing project report in the summer vacations and undergoing the summer training

is the indispensable part of the college period. It provides the opportunity to review

what they have gained in the training period and also provides the way to convey the

knowledge and ideas to others.

The present project provides the information on STANDARD CHARTERED

BANK.

Learning is not possible in solitude and has to have the support and able guidance of

some people around us in various roles and capacities. The satisfaction and euphoria

that accompanies the successful completion of any task would be incomplete without

the mention of the people who made it possible because success is the epitome of hardwork, undeterred missionary zeal, fast determination, and consideration.

Therefore, they consider it a pleasant duty to express their heartiest appreciation,

gratitude, and indebtedness to their project guide for his keen interest, sincere

extortion, invaluable and pain taking excellent guidance, continuous calm endurance,

inspiration and encouragement during each phase of the present project.


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TABLE OF CONTENTS

S. No. CONTENTS PAGE NO.

1 EXECUTIVE SUMMARY 7

2 OBJECTIVE OF THE REPORT 10

2

Chapter 1: INTRODUCTION

SIGNIFICANCE OF THE TOPIC

ITS BACKGROUND

SCOPE AND OBJECTIVES

12-36

3

Chapter 2: INDUSTRY PROFILE

ORGANISATION STRUCTURE

ITS PRODUCT AND FEATURES

BUSINESS ENVIRONMENT

ACHEIVEMENTS AND AWARDS

SWOT ANALYSIS etc.

37-65

4

Chapter 3: PESENTATION OD DATA

RESEARCH METHODOLY

ANALYSIS OF THE DATA

66-91

5 FINDINGS 92

6 CONCLUSIONS 93

7 ANNEXURE: QUESTIONAIRE & CURRICULAM

VITAE

94

8 BIBLOGRAPHY 96


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EXECUTIVE SUMMARY

EXCELLENCE ALWAYS SHOWS..

A Leader is one who knows the way, goes the way and shows the way

-John C Maxwell

Expertise is a skill acquired through years of experience, understanding and depth of

knowledge

When they are at the highest echelons of success it is that much more important to

have the right financial partners, who assist us in maintaining and building wealth.

The challenge of navigating complex and unpredictable capital markets can only be

met with the utmost focus, planning and discipline.

Standard Chartered Bank, using over 150 years of expertise, promises to guide us

through the world of exciting new investment opportunities in India. From shortest

term deployment of funds to planning your retirement, they pledge to go the extra

mile to help you reach your choose financial goals.

In India, there has been significant growth in income and wealth levels over past few

years. Financial services industry players have begun to recognize the potential of

wealth management as a profitable business. The wealth management industry,

though at a nascent phase, is experiencing rapid growth in terms of the member of

providers, clients and assets under management.

Wealth management as an organized industry is growing in terms of both the numbers

of players as well as the number of high net worth individuals in India. Wealth


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managers are aggressively marketing their services to the existing clients; wealth

managers are ramping up their capabilities to manage growing volume of assets. India

is both attracting foreign wealth managers to set up business and domestic banks to

set up wealth management businesses. Going forward this is a trend that is likely to

continue, with Indias key advantages attracting more and more competitors.

In the view of many in the industry there is a challenge of client education that must

be addressed going forward. The primary area of concern is in equity investment and

the need to invest long-term rather than short-term. This is not a problem that is

confined to India; many other countries around the globe have similar problems.

The basic idea of wealth management is to help the individual investors get a

complete perspective of their wealth. A wealth manager is more objective. He first

analyses ones portfolio, finds out the long-term and short-term goals of the investor

and decides on the asset mix that will fetch the best desired returns after being given

the investors risk profile.

According to a study unveiled by IBM Business Consulting Services, the wealth

management industry in India is poised for tremendous growth. The study also

revealed that successful wealth managers with a clear vision and strategy and

equipped with supporting people, processes and systems, will reap significant gains.

The study, Indian Wealth Management and Private Banking Survey 2003-04, predicts

that increased customer demand for sophisticated products will drive wealth managers

to offer a wider array of more complex products and services. Technology tools will

be critical for both enabling revenue generation as well as achieving operational


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effectiveness. Furthermore, increasing deregulation will enable customers to diversify

their wealth locally and globally.

Through this dissertation, I have tried to analyze the problems affecting the wealth

management industry in India with special focus on the High Net-Worth Individuals

(HNWI) segment. A further study of the scope and future of wealth management,

which is somewhat synonymous with Investment Banking, has been attempted for a

better understanding.


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OBJECTIVE OF THE REPORT

The project report is prepared to analyze the functions of wealth managers. How well

financial managers help their investors in investing into various companies.

There is common saying on the bourses: Bears make money, bulls make money and

pigs get slaughtered.

The richer one gets, the less sure he becomes of his investments. The options

for saving have multiplied today. The need of the hour is more informed investment

decisions. As personal net worth increases, the financial issues and challenges become

increasingly complex. Protecting and distributing ones asset with maximum tax

advantages requires sophisticated planning strategies and professional advice.

THE FOLLOWING ARE THE OBJECTIVES

Understanding Wealth Management Services in Banking Industry. Understanding Mutual Fund Industry in particular. Recommending financial planning strategies to investors. Analyzing various products offered by Mutual Fund companies. Need based selling to investors. Recommending model portfolios and selecting the right funds.


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In this project, I have to study the most important products of banking

industry i.e. Savings account, Insurance and Mutual Funds. After gaining

appropriate knowledge of these products, I have to promote the products of

Standard Chartered to the customers and try to convince them to buy the products

via explaining them its benefits. I also have to prepare a questionnaire in order to

understand the customer psychology of investments and also get relevant

information required in the project.


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CHAPTER 1


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WEALTH MANAGEMENT

Wealth management is an investment advisory discipline that incorporates financial

planning, investment portfolio management and a number of aggregated financial

services. High Net Worth Individuals (HNWIs), small business owners and families

who desire the assistance of a credentialed financial advisory specialist call upon

wealth managers to coordinate retail banking, estate planning, legal resources, tax

professionals and investment management. Wealth managers can be independent

certified financial planners, MBAs, CFA Charter holders or any credentialed

professional money manager who works to enhance the income, growth and tax

favored treatment of long-term investors. One must already have accumulated a

significant amount of wealth for wealth management strategies to be effective and is

also one of the key areas that are growing at a tremendous rate. Wealth management

can be provided by large corporate entities, independent financial advisers or multi-

licensed portfolio managers whose services are designed to focus on high-net worth

customers. Large banks and large brokerage houses create segmentation marketing-

strategies to sell both proprietary and non-proprietary products and services to

investors designated as potential high net-worth customers. Independent wealth

managers use their experience in estate planning, risk management, and their

affiliations with tax and legal specialists, to manage the diverse holdings of high net

worth clients. Banks and brokerage firms use advisory talent pools to aggregate these

same services.


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The events of 2008 in the financial markets caused investors to address concerns

within their portfolios. "The past 18 months have challenged traditional thinking

about investing and asset allocation, diversification, and correlation. For individual

investors, risk tolerances have been tested, investment assumptions have been

overturned, and fundamental truisms have been questioned." For this reason wealth

managers must be prepared to respond to a greater need by clients to understand,

access, and communicate with advisers regarding their current relationship as well as

the products and services that may satisfy future needs. Moreover, advisors must have

sufficient information, from objective sources, regarding all products and services

owned by their clients to answer inquiries regarding performance and degree of risk-at

the client, portfolio and individual security levels. "This state of affairs poses a

dilemma for wealth managers, who, for a generation, have adhered to the core

principles of asset allocation and earned their keep by preaching the mantras of 'buy

and hold', 'invest for the long term', and when things get tough, 'stay the course'.

Today wealth management advisors must have access to an objective content.

Wealth accumulation: The clients wealth should grow.

Wealth preservation: The clients wealth should be well protected.

Wealth transfer: Smooth transfer of clients assets to his legal heirs at a minimum

cost.


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WEALTH MANAGEMENT AT

STANDARD CHARTERED BANK

STANDARD CHARTERED BANK offers a team of expert and experiencedinvestment advisors who are wholly dedicated to studying financial markets and

investment opportunities just for you.

With years of investment experience to draw from, combined with their intimate

understanding of the Indian environment, they can help you make the best investment

choices customized just for customers.Here is 4 step financial planning process:

RISK PROFILING:Through a simple, easy-to-answer questionnaire, they try to gauge their risk appetite.

Your investment decisions should be dominated most heavily by how much risk you

are willing to take. Depending on their risk appetite, the specific instruments required

to fulfill all their needs across various time periods will be identified.

NEED ANALYSIS:

It identifies all their prospective financial requirements and liabilities. These may

range from buying a car to sending their kid for education abroad.


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MAPPING YOUR RISK PROFILE WITH NEEDS:

To fulfill the needs, the right asset allocation mix has to be identified. Investments

have to be embarked for their needs, depending on risk profile. It aims for right asset

allocation mix for your investment through this exercise.

IDENTIFYING THE RIGHT INVESTMENT INSTRUMENTS:

It provides a wide variety of investment instruments like MUTUAL FUNDS, FIXED

INCOME BONDS, RBI BONDS, PRINCIPAL PROTECTION PLAN, etc. Bank has

tie ups with a variety of mutual funds for investment suitable for us. Their unique

proprietary research cherry-picks the best mutual funds in various funds in various

risk categories to enable us to take an informed decision.

WEALTH MANAGEMENT is important because you have a lotmore to manage than just your wealth

It's time to throw out your notions of what you can talk about with your Financial

Advisor.

Maybe you're worried that the lifestyle you've worked for is becoming the

lifestyle your children will feel entitled to

Maybe you long ago made a decision to retire by 62, and then you turned 58and found out that decision may be up to somebody else

Maybe your friends are about to stop asking why you waited to start a family,and start asking what in the world you are going to do with triplets


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Wealth management can help you determine what's really important to you, then

develop actionable strategies to help you realize your most cherished hopes and

defend against the things that might undo them.

Income and Lifestyle

Through an in-depth discovery process your Financial Advisors will work with you to

understand and document what you want to do in this lifetime, from now until

retirement and from then on. They'll then map out a course to help you seek the

returns you'll need for how you intend to live and to achieve the income you'll need to

do exactly what you want one year at a time and, if they like, strategies to guarantee

that income.

Borrowing

They view borrowing as a strategy an array of ways to unlock value in assets you

own, without compromising the ability of those assets to continue to work for you

over time.

If such talk of strategy sounds like how most firms talk about investing, it should.

They believe how people invest and how they borrow is inextricably linked both

sides of one balance sheet, one plan.

Asset Protection

By understanding the lifestyle you enjoy, and the one you're building toward, your

Financial Advisor can see the threats against ittaxes, inflation, volatility, creditors,

lawsuits, identity thieves, tragedyand help you deal with them using everything in

the arsenal of one of the world's largest financial services firms.


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Wealth Transfer

Your Financial Advisor will approach your plan for wealth transfer from a wider

angle than a traditional estate plan. They work with you to understand your definition

of a rich life, and then craft a plan to help you lead it and pass on what you see as

most important to the next generation.

Your advisor will approach your plan for wealth transfer from a wider angle than a

traditional estate plan. They work with you to understand your definition of a rich life,

then craft a plan to help you lead it and pass on what you see as most important to the

next generation.

This might mean a passion for education, or a sense of obligation for each generation

to help give the one that follows a leg up in life or both. It could mean protecting a

work ethic and thirst for accomplishment, or protecting your family's bonds of

affection toward one another. Whatever it is, it should start with your definition of a

rich life.

Investment Management

They believe that your plan for your life is the most important part of investing. Little

things...like when you plan to retire and when you secretly hope to retire. The

business you'll open when you do. How much you'd like to travel. And the aging

parent who will need to move in with you in the next few years.

Investing with a Financial Advisor is based on the simple yet potheyrful premise of

wealth management: Your investments and your life are uniquely intertwined.


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Whether by design or by accident, they are all part of one plan. they advise that it be

by design.

Business Strategies

As you lead your business toward its next stage whatever that stage may be

you'll be pleased to learn that your Financial Advisor understands the connection

between your business and your life. They are one and the same.

Their clients tell us that seeing this bigger picture makes all the difference between us

and what they used to expect from a financial firm in how they think, how they

plan and in the scope of what they do. From their standpoint, it's simply a matter of

treating your business like it's the biggest investment of your life, if for no other

reason than that it is.


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WEALTH MANAGEMENT IN INDIA

Wealth Management in India covers the recent trends in the industry, global market

and its trend, estimates of the future market, growth drivers, critical success factors,

issues and challenges, regulatory environment, and profiles of major players and their

products offerings. The report will be useful for industry research analysts, banks and

other non-banking financial companies, and wealth management service companies.

Wealth management is classified as a type of financial planning tool that provides

corporate and their families with private banking, asset management, legal resources,

real estate planning, investment management and portfolio management with the goal

of sustaining and growing long-term wealth. Wealth management service providers

have segmented the Indian market into four categories: the mass market (investible

surplus USD 5,000 to 25,000); the mass affluent (USD25,000 to 1 million); the high-

net-worth (USD1 million to 30 million) and the ultra-high net worth (greater than

USD30 million).

Key Findings and highlights

- During the second half of 2007, there was a contrasting difference between the

matured and emerging economies where emerging market captured the major portion

of wealth management.

- In 2007, the global economy grew by 5.1%, down slightly from the 5.3% global

growth in 2006.


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- The United States had one of the worlds lowest savings rates in 2007

- The population of HNWIs reached 10.1 trillion in 2007

- The Indian market has outperformed global markets significantly and formed new

highs coincided with a continuous increase in derivatives position which peaked at

over Rs1 trillion.

OBJECTIVES:

Investment planning: assists you in investing your money into various investmentmarkets, keeping in mind your investment goals.

Insurance planning: assists you in selecting from various types of insurances, selfinsurance options and captive insurance companies.

Retirement planning: is critical to understand how much funds you require in yourold age.

Asset protection: begins with your financial advisor trying to understand yourpreferred lifestyle and then helping you deal with threats, such as taxes, volatility,

inflation, creditors and lawsuits, to maintaining this lifestyle.

Tax planning: helps in minimizing tax returns. This might include planning forcharity, supporting your favorite causes while also receiving tax benefits.


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Estate planning: helps in protecting you and your estate from creditors, lawsuits and

taxes. This service is critical for every person whose net worth is high.

Business planning: This service aims at optimizing the tax free advantages ofrunning your own business.

Business succession planning: assists in planning for the inevitable to maximizereturns.

Wealth transfer: helps you pass on your wealth to your dependents.

But so many advantages will make the process of understanding Wealth Management

will make it very complicated rather than simplifying the process of Wealth


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GRAPHICAL PRESENTATION

Dig 1: Wealth Management Cycle


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WEALTH MANAGEMENT-PRODUCTS AND SERVICES

They provide you with new investment opportunities and investment advice which

allows you to choose from a broad spectrum of products and services. Standard

Chartered Wealth Management by your side, you can be rest assured that you will

have access to only the most viable wealth management products and solutions. With

a well planned wealth consolidation strategy they ensure a lasting legacy for you and

your loved ones.

PRODUCTS:

DIRECT INVESTMENT IN THE EQUITY MARKET

Equity investment generally refers to buying and holding of shares of stock on the

stock market by individuals and funds in anticipation of income from dividends and

capital gains as the value of the stock rises. It also sometimes refers to the acquisition

of equity participation in private company or start up. When the investment is in

infant companies, it is referred to as venture capital investing and is generally

understood to be higher risk then investment in listed and going concern situations.

MUTUAL FUNDS

A mutual fund is a corporation that pools the savings, which are then invested in

money market, debt market and capital market instruments such as shares, debentures

and other securities. Thus the mutual fund serves as a link between the public and the

capital markets so as to mobilize savings from the investors and invest them in the

capital markets to generate to access to well defined equities, bonds and other

securities. Each share holder participates in the gain or the loss of the fund. Units are

issued according to the:


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Money put in by the investor Type of equity or bond chosen NAV of the security prevailing in the market

NAV is the main performance indicator. A funds NAV is calculated as total assets

minus all the expenses and divided by the number of its total outstanding units.

Mutual funds are financial intermediaries. They are companies set up to receive your

money and then having received it, make investments with the money Via an AMC. It

is an ideal tool for people who want to invest but dont want to be bothered with

deciphering the numbers and Number of stocks from various markets and industries.

Depending on the amount you invest, you own part of the overall fund.

TWO TYPES OF MUTUAL FUND ARE:

1. STRUCTURED BASED

2. INVESTMENT BASED

STRUCTURED BASED MUTUAL FUNDS ARE:

(a)OPEN ENDED FUNDS: An open ended fund is that kind of fund that isavailable for subscription all through the year. These not have fixed maturity.

(b)CLOSE ENDED FUNDS: A close ended fund has a stipulated maturityperiod, which generally ranges from 3 to 15 years. The fund is open forsubscription only during a specified period. Investors can invest in the scheme

at the time of the initial public issue and thereafter they can buy or sell the

units of the scheme on the stock exchanges, if they are listed, The market price

at the stock exchange could vary from the schemes NAV on account of

demand and supply situation, unit holders expectations and other market

factors.

INVESTMENT BASED MUTUAL FUNDS ARE:


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(a)GROWTH FUNDS: Growth funds are to provide capital appreciation overthe medium to long term. Growth schemes are ideal for investors who have a

long-term outlook and are seeking growth over a period of time.

(b)INCOME FUNDS: The aim of income funds is to provide regular and steadyincome to investors. Such schemes generally invest in fixed income securities

such as bonds, corporate debentures and Government securities. Income funds

are ideal for regular income and capital stability.

(c)BALANCED FUNDS: The aim of balanced fund is to provide both growthand regular income. Such schemes periodically distribute a part of their

earning and invest both in equities and fixed income securities in the

proportion indicated in their offer documents. This proportion affects the risks

and the returns associated with the balanced fund in case equities are allocated

a higher proportion, investors would be exposed to risks similar to that of the

equity market.

(d)MONEY MARKET FUNDS: The aim of money market funds is to provideeasy liquidity, preservation of capital and moderate income. These schemes

generally invest in safer short-term instruments such as Treasury Bills,

Certificates of Deposit, Commercial Paper and inter-Bank Call Money.

Returns on these schemes may fluctuate depending upon the interest rates

prevailing in the market.

These are ideal for corporate and individual investors as a means to park their surplus

funds for short periods.

ADVANTAGES OF MUTUAL FUND

PORTFOLIO DIVERSIFICATION/RISK REDUCATION: An investor holdsa diversified portfolio even with a small amount of investment, which would

otherwise require a big capital. Further, the fund invests in diverse portfolios,

hence reducing the riskiness of the investments.


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REDUCTION OF TRANSACTION COSTS: While investing through thefunds and investor has the benefit of economies of scale; the funds incur lesser

costs because of larger volumes, a benefit passed on to its investor.

PROFESSIONAL MANAGEMENT: Mutual funds are managed byprofessional management who has requisite skills and resources to analyze the

various investment options in these fast-moving, global and sophisticated

markets.

LIQUIDITY: Often, investors hold shares or bonds they cannot directly, easilyand quickly sell. If they invest in the units of a fund, they can generally cash

their investment any time, by selling their units to the fund if open-ended, or

selling them in the market if the fund is close-end.

CONVENIENCE AND FLEXIBILITY: Investors have the option oftransferring their holding from one scheme to the other; get updated market

information and so on.

FIXED DEPOSITS

Fixed deposits is made for those investors who want to deposits a lump sum

amount of money for a fixed period of time say a minimum of 15 days to 5

years and above there by earning a higher rate of interest in return. Investors

get a lump sum amount at the maturity at the deposit.

Banks fixed deposits are one of the common saving scheme open to an

average investor. Fixed deposits are one of the most common savings schemes

open to an average investor. Fixed deposits also give a higher rate of interestthan a savings bank account. The facilities vary from bank to bank. Some of

the facilities offered by banks are overdraft (loan) facility on the amount

deposited, premature withdrawal before maturity period (which involves a loss

of interest) etc.


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ULIP

ULIP stands for unit linked insurance plan. It is a kind of the life insurancewhere the policy value at any time varies according to the underlying assets at

that time. It is a kind of the policy which provides the benefit of protection

with the flexibility in the investment. The investment is denoted as units and is

represented by the value that it has attained called as net asset value (NAV).

ULIP came into play in 1960 and soon became popular in many in many

countries in the world. The reason for the wide popularity was because it is a

very transparent scheme and the flexibility it offers and investments.

ADVANTAGE OF ULIP:

Simple, clear and easy to understand Easy in decision for investors Flexible and adaptable Puts the policyholder in control Policyholder gets the entire upside on the performance of his fund\

SIP

SIP is termed as Systematic Investment Plan. In this the investor has the

option of managing his investments on the periodic basis and thus inculcates

the regular saving habit. Investor has to issue post dated cheques in favor of

the fund and then gets the no. of units on the date of the cheque. The number

of units depends on the amount, the kind of fund and the NAV of that date.

SIP allows the investor to invest a prefixed amount with the scheme at set

intervals and derive the benefit of fluctuating share prices and NAV. SIP

works on the concept rupee cost averaging. So if the NAV is high the entire

investment is valued.

Derivative:

A derivative can be defined as something which derives its value from an

underlying product being, stock currency, commodity or anything that carries


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a market price. The market price of a product is subject to fluctuations due to

various factors effecting its demand and supply thereby associating itself to

various risk factors. So derivatives are a byproduct of the care product which

can be used to hedge, separate & also undertake arbitrage activities.

IPOs:

An initial public offering, or IPO, is the first sale of stock by a company to the

public. A company can raise money by issuing either debt or equity. If the

company has never issued equity to the public, it's known as an IPO.

STRUCTURED PRODUCTS-

They offer customized investment solutions to access various asset classes. Most

structures will offer principal protection with returns based on performance of an

associated asset class. Based on your preference, returns can be linked to a variety of

asset types such as equity indices, basket of stocks, commodities.

ALTERNATIVE ASSET PRODUCTS-

Through their distribution tie-ups, they offer a wide range of Private Equity Funds,

which invest in the unlisted securities, to give you the opportunity of investing in the

growing Indian economy. Access to these types of products and strategies can support

a variety of investor objectives including capital preservation, risk protection,

leverage, and diversification e.g. Private Equity Funds. So, if you are looking beyond

the stock market, you will find us there too!


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REAL ESTATE-

They offer niche property investment services. They bring in a combination of in-

depth market knowledge and real estate industry experience to offer a range of

specialized real estate investment services. According to the analysis of the needs and

objectives of the investor, they provide expert advice and innovative real estate

solutions to their clients.

LONG AGAINST SECURITIES AND MUTUAL FUNDS-

Their tie up with Finance will allow investors to use their investments in shares as

security for their borrowing, which in turn can fund the purchase of additional

investments. In this way clients are able to invest more and increase the size of their

total portfolio.

GOLD-

A healthy portfolio is about the diversification and management of risk. Holding gold

in a portfolio can provide distinct benefits, its most valuable contribution to a

portfolio lies in the fact that it is not correlated with most other assets. They offer

multiple avenues of investing in gold so that you can benefit from effective portfolio

diversification


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LIFE INSURANCE-

While offering solutions for building and preserving capital, Relationship Manager

will offer you comprehensive advice on how best to protect yourself and your family

against all the most serious risks that you face. Their affiliation with Birla Sun Life

Insurance provides the opportunity to obtain more favorable offers, which can result

in lower costs and greater benefits. Their Policy Analyst review ensures that the

planning youve previously done remains competitive and current.

SERVICES:

RESEARCH-

Their quality research provides clients with the information they need to make

informed investment decisions. Wealth Management Research team is dedicated to

keep you updated with an access to these publications and to a wide range of research

tools including market depth, breaking commentary, long-term forecasts to detailed

daily updates and the latest financial news.

HIGHLY PROACTIVE SERVICES-


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They deliver a fast, effective and friendly service that often exceeds their client's

expectations. The service includes daily Market Update, Weekly Update on MF,

Event Based SMS; you will be kept fully informed on the markets.

ONLINE PORTFOLIO ACCESS-

Wherever you are, their network works for you. This process is simple yet efficient,

and ensures that you are always aware of every detail regarding your investments.

You can constantly monitor the composition of your portfolio as well as all

transactions, which will enable you to see if you can meet your long term objectives.

FINANCIAL PLANNING-

To complement your investment strategy they offer comprehensive financial

planning. This planning session will be followed by a complimentary personalized

report containing specific recommendations on the actions you need to take to achieve

your financial goals.

REGULAR PORTFOLIO REVIEWS-

Periodic reviews to ensure the integrity of the portfolio and continued viability of

assets within the portfolio. They believe in diversification and are committed to

providing sound and conservative investment acumen.


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SERVICES, ADVANTAGES AND DISADVANTAGES OF

PRIVATE WEALTH MANAGEMENT IN INDIA

Private Wealth Management is the management that deals with the sophisticated

financial solutions and highly customized investment management. They provide the

financial planning session to the people that include the advices on the use of trusts

and other estate planning vehicles, the use of hedging derivatives for large blocks of

stock and business succession or stock option planning.

Private Wealth Management-

It offers product and service on the demand of the wealthiest retail clients of

investment firms. As the number of affluent investors had increased, so demand for

sophisticated financial solutions and expertise throughout the world has been

increased.

ICICI bank and Axis-Bank are very reputed and well known banks in the field of

wealth management In India. ICICI Bank is using the services of global players like

City group, Merrill Lynch and UBS for attracting and catching the customers for their

Wealth Management business. Axis bank, one of Indias leading private sector bank

also combined with Banque Privee Edmond de Rothschild, which is the Europe

based wealth management expertise institution and is going to make new standard for

the NRI people wealth management. In India, the Axis Bank is the fifth largest bank
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by market capitalization that provides payroll services to over 12000 corporate across

2.8 million salary accounts.

Services of Private Wealth Management Institutions:

1) Retirement Plan Services:

Defined Contribution Plans IRAs Custodian Or Trustee Defined Benefit Plans

2) Custodian Services:

Income collection from Securities Securities Safekeeping Settlement of Securities trades as directed Timely settlement delivery Payment of fund when directed

3) Trust Services:

Revocable Trust Charitable Trust Irrevocable life Insurance Trust Institutional Trust Special Need Trust


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Advantages of Private Wealth Management are:

The customer can easily know the investment strategy and analyze return andrisk with the help of wealth management professional.

The Private wealth management professional provides the good service of taxplanning like how customers can minimize save and the tax more money.

Customer can also manage their estate with the help of wealth management professional. Estate management provides protection of customers overall

estate.

Those Banks which are engaged in business of wealth managementprofessional are earning revenues from the foreign countries that mean

outsourcing for economy.

Wealth management professional helps the customer in future planning forestate.

Disadvantages of Private Wealth Management are:

The big limitation of Wealth management is that they do not show their actualposition to the customers. So, there may be chances of fraud and forgery with

customers.

As they know that wealth management is now only related with the richpeople and is not having any plans and solutions for poor, middle and lower

class of people of society.

Thus wealth management reduces the scope of Management.


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Mostly customers do not know the actual position of market because

everything is done by some Wealth management professional. So, that results

in inflation and also there may be chances that the customers are in risk but

they are showing the false return etc.

So, they can say that Private wealth management has various aspects in which some

are favorable and some are very dangerous for the Indian economy. So, people should

aware of this.


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CHAPTER 2


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COMPANY PROFILE

STANDARD CHARTERED BANK (LSE: STAN, SEHK: 2888, OTCBB: SCBFF)

is a British Bank headquartered in London with operations in more than seventy

countries. It operates a network of over 1,700 branches and outlets (including

subsidiaries, associates and joint ventures) and employs 73,000 people.

Despite its British base, it has few customers in UNITED KINGDOM and 90% of

profits come from Asia, Africa, and the Middle East. Because the banks history is

entwined with the development of the British Empire its operations lie predominantly

in former British colonies, though over the past two decades it has expanded into

countries that have historically had little British influence. It aims to provide a safe

regulatory bridge between these developing economies.

The Standard Chartered Group was formed in 1969 through a merger of two banks:

the Standard Chartered Bank of British South Africa founded in 1863 and the

Chartered Bank of India.

It now focuses on customer, corporate, and institutional banking, and on the provision

of treasury services- areas in which the Group had particular strength and expertise.


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Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock

Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Tease

Holdings.

The name Standard Chartered comes from the two original banks from which it was

founded and which is merged in 1969- The Chartered Bank of India, Australia and

China, and the Standard Bank of British South Africa.

Australia and China, founded in 1853.

HISTORY

Founded by James Wilson following the grant of a Royal Charter by QueenVictoria in 1853.

Chartered opened its first branches in Mumbai (Bombay), Calcutta , andShanghai in 1858 followed by Hong Kong and Singapore in 1859.

Played a major role in the development of trade with the East which followedthe opening of the Suez Canal in 1869 and the extension of the telegraph to

China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the IonianBanks Cyprus Branches. This established a presence in Gulf.

In 1969, the decision was made by Chartered and by Standard to undergo a friendly

merger. All was going well until 1986, when a hostile takeover bid was made for the

Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard

Chartered entered a period of change. Provisions had to be made against third world

debt exposure and loans to corporations and entrepreneurs who could not meet their


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commitments. Standard Chartered began a series of divestments notably in the United

States and South Africa, and also entered into a number of asset sales.

From the early 90s, Standard Chartered has focused on developing its strong

franchises in Asia, the Middle East and Africa using its operations in United Kingdom

and North America to provide customers with a bridge between these markets.

Secondly, it would focus on consumer, corporate and institutional banking, and on the

provision of treasury services- areas in which the Group had particular strength and

expertise.

In the new millennium they acquired Grindlays Bank from the ANZ Group and the

Chase Consumer Banking operations in Hong Kong in 2000.


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STANDARD CHARTERED-LEADING THE WAY

Standard Chartered PLC is listed on both the London Stock Exchange and Hong

Kong Stock Exchange and is consistently ranked in top 25 among FTSE-100

companies by market capitalization.

Standard Chartered has a history of over 150 years in banking and operates in many

of the worlds fastest-growing markets with an extensive global network of over

1,400 branches (including subsidiaries, associates, and joint ventures0 in 50 countries

in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom

and the America.

As one of the worlds most international banks, Standard Chartered employs almost

60, 000 people, representing over 100 nationalities, worldwide. This diversity lies at

the heart of the Banks values and supports the Banks growth as the world

increasingly becomes one market.

With strong organic growth supported by strategic alliances and acquisitions and

driven by its strengths in the balance and diversity of its business, products,

geography and people, Standard Chartered is well positioned in the emerging trade

corridors of Asia, Africa and the Middle East.


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RECENT ALLIANCES AND ACHEIVEMENTS

2005 and 2006 were historic years for Standard Chartered as they achieved several

milestones with a number of strategic alliances and acquisitions that will extend their

customer or geographic reach and broaden their product range.

They completed, rebranded and successfully integrated SC First Bank in Korea,

which to date is the biggest acquisition in their history.

They completed full integration between Standard Chartered Bank

Thailand and Standard Chartered Nakornthon Bank in October.

They formed strategic alliances with Fleming Family & Partners to expand private

wealth management in Asia and the Middle East.

They acquired stakes in ACB Vietnam and Travelex.

They acquired the business operations of American Express Bank in

Bangladesh.

They acquired a stake in Bahia Bank in Tianjin, China, making us the first foreign

bank to be allowed a stake in a local bank in China.

They acquired a 25% stake in First Africa Group Holdings in June

2006.

They acquired an additional 26% stake in Permata Bank through consortium with

PT Astra International, thus giving the consortium a total stake of 89%.

They acquired Union Bank in Pakistan in September 2006 and have successfully

rebranded all branches.


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PETER SANDS BECOMES CEO OF STANDARD CHARTERED

BANK

It was announced today that Peter Sands (LLL, LON 88-02) will become the new

CEO of Standard Chartered Bank, effective immediately.

Sands have been with the bank since 2002, and were most recently serving as Group

Finance Director. Previously, he was a Director at McKinsey & Company.

Standard Chartered plc is a British bank headquartered in London, with operations in

many countries, especially Asia, Africa and the Middle East.

Priorities at Standard Chartered

Standard Chartered believes that their future success depends on their ability to

deliver a sustainable business. Their building a sustainable business strategy will

help them long-term view of the implications of everything they do. This means

taking responsible decisions that benefit their business, the economy, society and the

environment-and build the trust of all stakeholders.

Their building a sustainable business strategy explicitly reorganizes seven areas

where them and their stakeholders believe that they are most likely to make greatest

contribution to sustainability.
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They are:

Sustainable lending- making sure when they lend money they are aware ofthe environmental, social and governance risks attached to such decisions and

that they take steps to address them

Tackling financial crimemaking sure that they have the right systems inplace to detect such things as fraud and money laundering and exceed, rather

than simply meet, increasingly stringent legal requirements in this field

Access to financial servicesmaking sure they develop new ways forthose deprived of banking services to get proper access to finance so that

they can improve their standard of living and economic independence

Responsible selling & marketingmaking sure they treat customersfairly and set the highest standards in service and transparency

Protecting the environmentmaking sure they not only minimize theirown direct impact on the environment but support others, such as customers,

to do the same. They also want to support the development and

commercialization of technologies and schemes that tackle environmental

threats like climate change

Great place to workmaking sure that with their people, who representover 100 nationalities from over 50 countries, feel valued, included and

engaged. They're determined to attract, develop and retain the best people

and to leverage the strength the diversity of their people brings, which is an

incomparable advantage


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Community investmentmaking sure they involve their employees andutilize their core expertise and networks to help communities develop and

economies to grow

GOVERNANCE:

The governance structure they have set up for Sustainability provides strategic

direction for the Bank and ensures they continue to make progress with their approach

to sustainable development.

The Corporate Responsibility and Community Committee sit at the top of this

structure alongside the Remuneration, Audit and Risk, and Nomination Committees

of their Board. It is supported by a Group Sustainability team, steering groups for

specific programmes and their branches and offices in each country they operate in.

The Committee is chaired by Mervyn Davies, the Group Chairman, and meets

quarterly. It drives the Sustainability agenda at Standard

Chartered and is responsible for responding to issues coming out of new

Sustainability legislation, regulation, stakeholder guidance and reporting and for

making sure their activities are aligned with their overall business strategy. It also

ensures they publish a Sustainability report, supported by accurate data, each year, in

line with best practice.

A dedicated Sustainability team, based in the London office, supports the Committee,

the Business and other Group functions. The role of the team is to talk with

stakeholders, monitor good practice and flag up potential trends and emerging issues.


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It co-ordinates the collection of data and is responsible for their annual Sustainability

Review and web site, participating in thought leadership events and raising their

Sustainability profile outside the Bank

INVESTMENTS STRATEGIES AND PORTFOLIO

MANAGEMENT

About Investment

It is the money that you save and channelize into sources that gives you return i.e. use

of money in hope of making more money.

One needs to invest to:

Earn returns on idle resources

Generate a specified sum of money for a specific goal in life

Make a provision for a uncertain future

To meet the cost of inflation

The aim of investment should be to provide a return above the inflation rate and also

to ensure that the investment does not decrease in value.

There are various options available for of investment:

Physical assets like real estate, gold/jewelers, commodities etc Financial assets like fixed deposits with banks, small saving

instruments with post offices, insurance/provident/pension fund, securities

market related instruments like shares, bonds, debentures etc.


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TYPES OF INVESTMENTS (PERIOD SPECIFIC)

1) Short Term Investments- The investment period is usually less than a year and it

provides liquidity to investor.

Saving Bank Account- It is most often the first banking product that people use. This

offers them interest (4%-5%p.a.) which is better than idle money.

Money Market of Liquid Fund-These are specialized form mutual funds that invest

in extremely short-term fixed income instruments and also provide liquidity. It

focuses on protecting your capital and then making returns. These are better sources

of investment than savings account but lower than fixed deposits.

Fixed Deposit with Banks-Also known as term deposits and the minimum

investment period with banks FD is 30 days. It is for those investors who are risk

averse and it provides higher rate of return than money market instruments.

2) LONG TERM INVESTMENT- The investments period is more than a year and

the returns are much higher than short term investments. Long term instruments are

less liquid than short term investments.

Post office Savings-The post office monthly income scheme is a risk saving

instrument, which can be availed through any post office. It provides an interest rate

8%per annum, which is paid monthly, minimum amount, which can be invested is Rs.

1,000 and maximum is Rs. 3, 00,000. It has a maturity period of 6 years, premature

withdrawal is permitted if deposit is more than one year old. A deduction of 5% is

levied from the principle amount if withdrawn prematurely


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Public Provident Fund- A long term savings instrument with a maturity of 15 years

and interest payable at 8% per annum compounded annually. A PPF account can be

opened through a nationalized bank at anytime during the year and is open all through

the year for depositing money, tax benefits can be availed for the amount invested and

interested accrued is tax free.

Company Fixed Deposits- These are short- term [six months] to medium- term [three

to five years] borrowings by companies at a fixed rate of interest which is payable

monthly, quarterly, semiannually or annually, there can also be cumulative fixed

deposits where the entire principal along with the interest is paid at the end of the loan

period, the rate of interest varies between 6- 9 % per annum for company FDs, the

interest received is after deduction of taxes

Bonds- It is a fixed income [debt] instrument issued for a period of more than one

year with purpose of raising capital, the central of state government corporations and

similar institutions sell bonds. A bond is generally a promise to repay the principal

along with a fixed rate of interest on a specified date called the maturity date.

MUTUAL FUNDS-These are funds operated by an investment company which arises

money from the public and invests in a group of assets (shares, debentures etc.) in

accordance with a stated set of objectives. It is a substitute for those who are unable to

invest directly in equities or debt because of resource, time or knowledge constraints.

Benefits include professional money management, buying in small amounts and

diversification. Mutual fund units are issued and redeemed by the fund management

company based on the funds Net Asset Value [NAV], which is determined at the end


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of each trading session. Mutual funds are usually long terms investment vehicle

though there are some categories of mutual funds, such as money market mutual

funds which are short term instruments.

Products of Standard Chartered

1. SAVINGS ACCOUNT

a. AXcess Plus

Get instant cash at over 20,000 ATMs across India and over 10,00,000 ATMs across

the world through the Visa network. And get a globally valid Debit Card that lets

you shop at over 3,26,000 outlets in India and at over 14 million outlets across the

world.

FREE Unlimited Visa ATM transactions* (Cash withdrawal andBalance enquiry)

FREE Standard Chartered Bank branch access across the county FREE Doorstep Banking* FREE Demand Drafts/Pay Orders* (drawn at SCB locations) FREE Payable at Par Chequebook

Other features available are:

International Debit Card Phone Banking Net Banking and Extended Banking Hours


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b. Parivaar

Parivaar is much more than a regular Savings Account. It allows you maintain your

individual identity while allowing you to tap your family's financial strength. It also

offers attractive insurance options to protect against unforeseen events and the

facility of Systematic Investment Plan (SIP), a unique long-term wealth building

tool.

Your family can maintain individual savings accounts with the benefit ofclubbing balances in grouped accounts.

Anytime, anywhere access to accounts through ATMs, Phone Banking andInternet Banking.

Option of Systematic Investment Plan (SIP), a well known long term wealthbuilding tool that allows you to invest a fixed amount of money every month in

specific mutual funds. This comes with a direct debit facility and avoids the need

to remember dates and write cheques every month.

Globally valid ATM-cum-debit card can be used at 55,000merchant outlets inIndia and 12 million outlets worldwide

c. No Frills Account

You can now open an account with Standard Chartered Bank, with an average

quarterly balance of as low as Rs. 250. Whats more you can avail of Anywhere

Banking, by which you can access your account from any branch of Standard

Chartered Bank in India.


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Quarterly Average Balance, as low as Rs. 250.

ATM card & Debit Card available 4 free transactions per month at any Standard Chartered Bank channel

(Internet banking, Phone Banking, ATM & Branch)

Anywhere bankingAccess your account from any branch of StandardChartered Bank.

Access to Phone Banking and Internet Banking Free Cheque deposit at anySCB Branch or ATM.

d. AaSaan

No Minimum Balance requirement Free unlimited access to any SCB branch across the country for

Customer in-person

Unlimited Free across to SCB ATMS Up to 4 free cash withdrawal transactions per month at other domestic VISA

ATMs

Nominal quarterly fee of Rs. 100 (reversed if Average Balance in the quarteris Rs. 10, 000 or more)

OTHER FACILITIES:

International Debit Card Phone Banking Extended banking hours


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Locker facility

Doorstep banking

To open an aaSaan account, you have to initially fund the account with Rs.

10,000.

2. ULIP- Unit Linked Insurance Plan

LIFE INSURANCE is a guarantee that your family will receive financial support,

even in your absence. Put simply, life insurance provides your family with a sum of

money should something happen to you. It thus permanently protects your family

from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-

saving scheme, which empowers you to accumulate wealth-to buy a new car, get your

children married and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme. To know more, read the

Key Benefits of Life Insurance.

Key Benefits of Life Insurance

Life insurance, especially tailored to meet financial needs

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income instruments, mutual

funds and of course, life insurance. Given the plethora of choices, it becomes

imperative to make the right choice when investing your hard-earned money. Life


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insurance is a unique investment that helps you to meet your dual needs - saving for

life's important goals, and protecting your assets.

Asset Protection

From an investor's point of view, an investment can play two roles - asset appreciation

or asset protection. While most financial instruments have the underlying benefit of

asset appreciation, life insurance is unique in that it gives the customer the

reassurance of asset protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of ones family remain

protected from circumstances such as loss of income due to critical illness or death of

the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth

creation proposition. The customer therefore benefits on two counts and life insurance

occupies a unique space in the landscape of investment options available to a

customer.

Goal based savings

Each of us has some goals in life for which they need to save. For a young, newly

married couple, it could be buying a house. Once, they decide to start a family, the

goal changes to planning for the education or marriage of their children. As one grows

older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in

which you invest should offer corresponding benefits pertinent to the new life stage.


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Life insurance is the only investment option that offers specific products tailor-made

for different life stages. It thus ensures that the benefits offered to the customer reflect

the needs of the customer at that particular life stage, and hence ensures that the

financial goals of that life stage are met.

The table below gives a general guide to the plans that are appropriate for different

life stages.

Life Stage Primary Need Life Insurance Product

Young & Asset creation Wealth creation plans

Single

Young & Just Married Asset creation Wealth creation and

Mortgage protection plan

Married with Children's Education insurance

Kids Education, Asset Mortgage protection

Creation and protection and wealth creation plans

Middle aged Planning for Retirement

with grown retirement and Solutions & mortgage

up kids asset protection protection

Across all Life-stages Health plans Health Insurance

Standard chartered Bank has a tie up with Bajaj Allianz Life Insurance to sell their

insurance plans.


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Some of the key Life Insurance plans available are:

Max Gain: A product that offers the opportunity to get upside benefit of

units price with complete downside protection from the fall in the equity

market

o Guarantee to encash units at maturity at the highest unit price achievedby the fund over the 10 year term of the policy

o Guaranteed Addition at maturity : Up to 350% of total allocationcharges

o No surrender charge after 3rd policy yearo Continuance of life cover even if premiums are not paid in the first 3

years

o Flexibility to increase / decrease regular premiums to suit changingneeds

Invest plus: A product that offers a guaranteed investment return and an

insurance wrap

o Investment return is declared at the beginning of the year. It will beapplicable on the entire policy value and not just on the premium paid

o Investment returns once declared are guaranteedo The policy value is enhanced by adding Additional Bonus @ 10% on

Net Premiums paid after 10th year till policy term

o Regular Premium allocation is 95% while top-up premium allocation isup to 121%


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o Refund of up to 100% of the cost of life insurance cover at maturity

Shield plus: A unit linked single premium endowment plan that offers the

dual advantage of Guarantee Return and Capital Preservation

o It gives a Guaranteed minimum 170% of unit price at maturityo Option to choose Life Cover (1.1 or 5 times of the Single Premium )o Up to 100% allocation of the Single Premium paido Flexibility to decrease Sum Assured and avail Partial Withdrawalso No Surrender Charge from 6th Policy Year onwards

Young Care II & Young Care Plus II: A unit linked regular premium

plan specially designed to secure your childs future

o Option to choose from two additional rider benefits.o The Product has a WOP feature where in on the death of Life assured,

the policy continues with premiums paid into the policy by the

insurance company till the end of term

o Provides loyalty additions starting from 6th Policy Year to enhance thefund value

o Sum Assured is paid on Death and WOP is triggered. Nomineereceives the fund value at the end of the term

o In case of financial constraint, there is an option to decrease thepremium


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New Unit Gain II: New Unit Gain is a regular premium Unit-Linked

Endowment Plan

o Your investment, apart from normal allocation, receives Loyalty Unitsequivalent to 0.35% p.a. of the regular premium fund value at the end

of each policy year starting from 6th year till maturity provided all due

regular premiums have been paid

o Choice of 7 investment funds, with complete flexibility to switchmoney from one fund to the other

o The policy continues to participate in investment performance of thefund(s) even if one is unable to pay the premium for 3 full years

o Flexibility: 1) To increase / decrease regular premium 2) To availPartial withdrawals at any time after 3 years from commencement of

the policy 3) To avail Unlimited free switches every year under

Investor Selectable Portfolio Strategy

Future Secure II : Enjoy your retirement years with this pension plan

o This pension plan with 2 options - with a life cover & without a lifecover

o The allocation to funds starts from 80% and keeps reducing dependingon the premium size

o Future Secure has an Unlimited Top-up facilityo Loyalty Units get infused from Year 6 onwards as a % of fund value


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MRTA: Mortgage Reducing Term Insurance Plan: An offering for customers

with a home loan or loan against property

o The policy is a stand-alone policy and continues even if the loan isforeclosed or transferred.

o The product provides valuable life cover at an attractive benefit-to-premium ratio

o The life cover amount paid is TaxFree.o Insurance Premium can be structured as a part of the loan EMIo In the event of untimely death of any member, the borrowers family is

relieved from the burden of financial debt.

INVESTMENTS:

MUTUAL FUND

Mutual Funds are a pool of funds to diversify risk. These are funds operated by an

investment company which raises money from the public and invests in a group of

assets [shares, debentures etc] in accordance with a stated set of objectives .It is a

substitute for those who are unable to invest directly in equities or debt because of

resource, time or knowledge constraints. Benefits include professional money

management, buying in small amounts and diversification. Mutual fund units are

issued and redeemed by the fund management company based on the funds Net

Asset Value [NAV], which is determined at the end of each trading session. Mutual

funds are usually long terms investment vehicle though there some categories of

mutual funds, such as money market mutual funds which are short term instruments.


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Benefits

The reason that mutual funds are so popular is that they offer the ability to easily

invest in increasingly more complicated financial markets. A large part of the success

of mutual funds is also the advantages they offer in terms of diversification,

professional management and liquidity

In MFs, the risk involved decreases and the return increases because of diversified

pool of funds.

It is the cheapest of all investments. But if you invest through broker then you have

to any 2.5% of the total investment but if you invest directly into the company no

entry charges will be taken.

There is no lock in period in case of MFs but if you divest your investment within

a period of 1year then you will have to pay an exit load between 1%- 2%.

Tax saving is another benefit given to the investors.

Flexibility - Mutual Fund investments also offers you a lot of flexibility with features

such as systematic investment plans, systematic withdrawal plans & dividend

reinvestment.

Affordability - They are available in units so this makes it very affordable. Because

of the large corpus, even a small investor can benefit from its investment strategy.


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Liquidity - In open ended schemes, you have the option of withdrawing or redeeming

your money at any point of time at the current NAV.

Diversification - Risk is lowered with Mutual Funds as they invest across different

industries & stocks.

Professional Management - Expert Fund Managers of the Mutual Fund analyze all

options based on experience & research

Potential of return -The fund managers who take care of your Mutual Fund have

access to information and statistics from leading economists and analysts around the

world. Because of this, they are in a better position than individual investors to

identify opportunities for your investments to flourish.

Low Costs - The benefits of scale in brokerage, custodial and other fees translate into

lower costs for investors.

Regulated for investor protection - The Mutual Funds sector is regulated to

safeguard the investor's interests.

If the market price decreases, the no. of units held by the investor increases and vice

versa.

APPROACH AND PROGRESS

2011 priorities

Drive performance through continued focus on engagement and retention.


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Develop deeper leadership pipelines by ensuring delivery of personal

development plans, mentoring and networking for their high performing

talent.

Build depth in local talent pools especially in key, high growth markets. Use the new brand positioning for the Bank and the Customer Charter to

further embed their differentiated culture and values.

A workforce is more than a group of individuals; it is what brings an organization to

life. Operating in 71 markets and representing 125 nationalities, their employees

immediately demonstrate their diverse nature.

Seven years ago they articulated five values: International, Courageous, Responsive,

Creative and Trustworthy. These are the values that they live by. They are what stand

us apart from their competitors and create a culture that truly makes Standard

Chartered a great place to work.

From Peter Sands, their Group Chief Executive, to the most junior people in their

branches, they ask their staff to live their values. Their senior managers lead by

example. They bring their values to life every day in the way that they treat their

employees, interact with customers and become involved in their local communities.

They strive to ensure every employee is very clear on what they expect of them. In a

new development this year, objectives are now online, making them easily accessible

to each employee and their manager. This will help raise the bar on performance and

place it at the heart of their business. They expect every employee to perform strongly

from a business point of view, and to do so in a way that is consistent with their


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values. Decisions on performance related remuneration are determined based on what

people achieve as well as how it is achieved.

At its best their culture fosters loyalty and creates an environment in which their

employees thrive, which is fundamental to sustained high performance.

Their reward structures inevitably play a role in creating sustainable performance.

They remain committed to paying for performance and, as always, aim to align their

remuneration policy with regulatory requirements and best practice while ensuring

that reward is appropriate and competitive. These policies support and drive their

business strategy and help reinforce their values.

They have an illustrious history and an enviable future operating in markets, such as

Asia, Africa and the Middle East, where the pace of change and development is

unprecedented.

Building a sustainable business is critical. Their success will depend on the efforts of

their employees. It is vital that their culture engenders loyalty and creates an

environment in which their employees thrive.


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PRESENCE OF STANDARD CHARTERED IN INDIA


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SWOT ANALYSIS

STRENGTHS-

Strong presence in India-150 years of banking in India.

Provides variety of convenience of online banking to access information about

various accounts and also transfer money.

Strong Brand Name- Worldwide presence

Variety of services offered.

WEAKNESS-

ATM coverage not as good as other private banks.

Service does not cater to the mass.

Advertising is not aggressive

Credit cards facilities not good as other private banks.

Not many branch networks.

OPPORTUNITIES-

Government removing restrictions on foreign banks on 2009,

Would allow those banks to open shop in India. Standard Chartered has an

opportunity to increase its branches in India, and further utilize its good image here.


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Scope for more effective use of their Brand Name.

THREATS-

Emergence of Indian private banks.

Nationalization of Banks- these banks has many more branches networks than foreign

banks.


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CHAPTER 3


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PRESENTATION OF DATA

OJECTIVE- To understand the basics of investment and various alternatives that is

available with the investor.

Also to understand the customer psychology of investments and what are thevarious objectives behind the investment.

TYPES OF RESEARCH

DESCRIPTIVE IN NATURE-

The descriptive research design is one that describes the things such as the market

potential for a product or the demographics and attitudes of customers who buy the

product. It includes questionnaire survey and fact finding inquiry.

SAMPLE DESIGN

SAMPLE UNIT: DELHI/NCR REGION

SAMPLE SIZE: 50

SAMPLE SELECTION: RANDOM, CONVENIENT

SOURCES OF DATA COLLECTION

PRIMARY DATA COLLECTION:

Primary data was collected through questionnaires. Refer to the appendix for the data.

SECONDARY DATA COLLECTION:

Secondary sources through

Internet Papers

Articles and Books


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ANALYSIS AND INTERPRETATIONS

Q1. What is your age group?

Dig 2.Distribution according to Age Group

According to the survey, maximum number of people belongs to the age group of 18-

25 years. So they can say that most of the respondents will be willing to take risk and

make investments in the market instruments with moderate risk.


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Q2. What is your Occupation?

Graph 1: Distribution According to their Occupation

The above graph shows the occupation of the sample respondents.

50% of the respondents belong to the category of salaried employees.

16% of the respondents are into Business.

14% of the responds are self employed and the rest 20% into other occupation


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3. Under which range your Household Income falls?

Dig 3: Household Income Range

The graph above depicts the household income range of the respondents.

The income range of the maximum respondents lie in the 5-10 lakhs category whereas

only 4% i.e. only 2 respondents income falls in the category of < 2 lakhs.


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Q4. What is your objective behind Investments?

Graph 2: Proportion of Objectives

According to the graph, the basic objective of most of the people behind investments

in Tax benefits followed by good returns.

It is really important for the investor to get good amount of profits on his investment.

The next possible reason for investment is future plans for themselves and their

family. Various other reasons for investments include safety and security of capital

and managing uncertainties.


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Q5. How do you take financial decision?

Dig 4. Financial Decisions

According to the survey, 29% i.e. maximum no. of respondents take their financial

decisions based on others opinion i.e. word of mouth.

22% of the total respondents take their financial decision independently. They take

this decision based on their own interpretation and calculations.

19% of the respondents take their financial decisions with the help of financial

advisors.

12% of the respondents take their financial decision based on the interpretation of the

broker.

Remaining respondents take their financial decisions either with the help of the bank

or from the CA.


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Q6. How much Risk are you willing to take?

Dig. 5: Risk Ability

According to the graph above, 70% of the respondents are willing to take moderate

risk i.e. 35 respondents take moderate risk while taking investments decisions.

12% of the respondents i.e. 6 people out of 50 surveyed are willing to take high risk.

18% of the respondents i.e. 9 people are risk averse so they make investments in those

securities which have less risk involved.


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Q7. What do you have presently in your portfolio in form of investment?

Graph 3: Various Financial products for Investments

According to the survey, most of the respondents have insurance policies in their

portfolio followed by fixed deposits. These two are those instruments which involve

low risk. Those who can moderate risk have invested in property, mutual funds and

equity. Some of the people have also invested in ULIP and gold which involved low

risk


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Q8. How would you rate the satisfaction level with your current portfolio?

Dig. 6: Distribution of Satisfaction level

The above chart shows the satisfaction level of the sample population.

Majority of the sample population rate their current portfolio as Good which

constitutes to 70%.

18% of the sample population i.e. 9 respondents out of 50 rate their current portfolio

as Very Good.

6% of the respondents are not much satisfied with their portfolio so they rate it asAverage.

Out of the total sample size of 50, only 4% of the respondents i.e. 2 people rate their

portfolio as Excellent as they must be getting good returns from their investment.

Remaining 2% of the total population do not have much idea about the investment

strategies so may not be getting much returns so they rate their portfolio as Poor.

ANALYSIS BASED ON THE AGE GROUP OF THE


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RESPONDENTS

A)Age Group 18-25 years

i) Occupation

.

Graph 4: Distribution of Occupation for the Age Category 18-25 yrs

In this age group, maximum no. of the res Out of the total sample population, 7

respondents out of 27 is neither into job, nor business. They have either invested into

the share or commodity markets or they are students.

Out of 27, 4 respondents are self employed i.e. they have joined their family business.

Remaining 2 respondents out of 27 in this age group are into business respondents are

salaried employees.


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ii) Income

Graph 5: Graph of distribution of Income

Dig. 7: Diagramof distribution of Income

The above graph shows the income level of the respondents in the age group of 18-25

years.


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In this age group, maximum no. of respondents has an income in the range of 2-5

lakhs.

10 of out of 27 respondents in this age group have an income range between 5-10

lakhs.

Around 20% of this age group has an income above 10 lakhs and the remaining 10%

are below 2 lakhs.

iii) RISK

Dig 8: Risk Ability

According to the graph, 66% of the respondents i.e. 17 respondents out of 27 can take

moderate risk and invest in both the stock market and the government bonds. These

people can have a portfolio with large as well as small cap funds.


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Those who take low risk invest in liquid funds, debt funds and in some of the

government bonds.

The remaining 15% of the respondents take high risk which means that they invest in

equity, mutual funds and other risky instruments.

This graph shows a correlation betwe

Documents

Summer Internship Project Report_Aakash Kamra