Summer Internships 2012 PGDM 2011-13

Summer Internship Project Report on

Client Profiling & Client Relationship Management

Undertaken at

Jaipur
Prepared By: (Rakesh Kashyap) (11GM050) Company Guide: Mr. Dharmender Gupta (Relationship Manager) Faculty Guide : (Mr. Gaurav Khanna)

Acknowledgement

I would like to record my sincere gratitude to Edelweiss Capital Ltd., Jaipur for giving me a wonderful opportunity to do a project on Client Profiling and Client Relationship Management for Summer Internship Program

I would like to express my gratitude to those who are concerned with the processing of this project. I am thankful to my Company Guide Mr. Rocky Gupta (Sales Manager), & Mr. Dharmendra Gupta (Relationship Manager) for their valuable guidance in this project for Summer Internship Program

.I also express my sincere gratitude to my faculty guide Mr. Gaurav Khanna (Asst. Manager IILM) for guiding me all throughout the one and half months of my summer internship.

I also thank the other staff members of Edelweiss Capital Ltd. - Jaipur who helped me whenever I needed guidance and help during my summer internship program.

Executive Summary
The title of my project is client profiling and client relationship management:-

It involves implementing tools and technique of client profiling and client relationship management for generating revenue for the company

Project includes identifying the customer, gathering information about the customer and finally providing him/her with a product or service which is need driven an promoting a client-oriented product/service providing successful client support, handling client complaints, building a long term relationship. The project reveals the importance of client profiling and client relationship management for generating revenues for the organization

I am profiling the employees of Emphasis (BPO Company) for Edelweiss Securities Ltd. As per my schedule for the purpose of profiling the clients I have used the primary sources of data which has been planned by the use of questionnaires. Employees were asked to fill up the questionnaire to facilitate client profiling

TABLE OF CONTENTS Page No.

o Acknowledgement o Executive Summary o Introduction of project Scope of project Object of the project Scope of the study

o Industrial analysis & analysis of financial sector o Future of Indian financial sector o Opportunity of Indian financial sector o Company analysis o Evaluation of company o About Company Awards & academic Service provide by company

o About the product Equity & debt fund Edelweiss comtrade Mutual fund insurance

o Training program o Financial performance o Learning from the project o Recommendation o conclusion

Introduction
Relationship with customers has existed since the advent of trade and business. Companies that need customers in order to build a profit need to have a system in place that effectively and successfully manages the customer/client relationship. Client profiling and Client Relationship Management has become a strategic initiative in most companies today. Client profiling and Client relationship management enables an organization capability to manage and nurture its one to one relationship with its customers. In order to generate clients and to maintain good relations with them organizations are realizing the importance of client profiling and client relationship management. Moreover companies are more attentive for relationship building due to growing competition to attract customers.

Scope of the project

Client profiling involves identifying the customer, gathering information about the customer and finally providing him/her with a product or service which is need driven. The information could relate to age, gender , occupation, income, status, lifestyle, savings etc. After the process of client profiling comes client relationship management

Client Relationship Management systems are also important to the top management because it provides crucial data like customer satisfaction and efficiency of service by the frontline crews.

Customer Profiler helps organization find new customers for the business. It will extract people and/or businesses that match the profile of the current customers.

This will provide with a list of prospective customers As the economy is growing, the demands and expectations of the customers are also growing at a much faster rate, so the need is to concentrate on the needs and requirements of the various customers and accordingly deliver superior product or service qualities which fulfills the customer expectations, it is the customer service levels that really matters and this is where customer relationship management (CRM) plays an important role.CRM is a strategy that is desired to develop a stronger relationship with customers, especially the most profitable ones

Object of the project :- The aim of the project is also identify future scope of client profiling and customer
relationship management (CRM) ,the project also includes studying various CRM methods and technique which a particular company adopts to attach the new customer for example use of technology, use of software for building CRM and have a firm relation with the custom object includes o To understand the need of the corporate clients for the company o To identify the optimal customers o To analyze the buying patterns and behavior and gain a greater understanding of consumer motivations o To analyze the factor that affect customer relationship with organization o To recommend the company the ways for maintaining long term relationship with the client

Scope of the study:- By applying profiling techniques, an organization can fully exploit data about customers
buying patterns and behavior and gain a greater understanding of consumer motivations. Customer Profiling helps to dramatically increase response rates of marketing campaigns by micro targeting the right customer with the right product. Businesses today are using profiling to reduce fraud, to anticipate demand, to increase new customer acquisition and customer loyalty. Customer profiling is also used to develop lifelong relationships with Customers by anticipating and fulfilling their needs. Consumers appreciate a personal touch and something they can act on. When the message matches the need, the conversion rates for sales can skyrocket.

Industry Analysis &Analysis of Indian Financial Sector:- Reveals that it is at present going
through a phase of stable growth rate which is experiencing a upward swing. The rise can be maintained over a long period by keeping the inflation down. The financial sector in India has experienced a growth rate of 8.5% per annum. The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate.

The reforms pertaining to the monetary policies and the macroeconomic policies over the last few years have influenced the Indian economy to the core. With sustained deregulatory measures, exposure to international financial markets and the introduction of new products and services, the Indian financial sector is charting an impressive growth path. According to global research data from Macquarie, India is the most preferred stock market in terms of portfolio allocation owing to current lucrative valuations and the government fiscal measures taken to boost liquidity in the economy. With sustained deregulatory measures, exposure to international financial markets and the introduction of new products and services, the Indian financial sector is charting an impressive growth path. According to global research data from Macquarie, India is the most preferred stock market in terms of portfolio allocation owing to current lucrative valuations and the government fiscal measures taken to boost liquidity in the economy

The market is also expected to undergo structural transformation with organized players increasing their market share. As a measure to ease the present liquidity situation and boost market volumes, the Securities and Exchange Board of India (SEBI) will be allowing cross-margining norms to all the participants in the market. In a previous move in May 2008, SEBI had permitted institutional investors to avail this facility. According to SEBI, "In order to improve the efficiency of the use of the margin capital by market participants, it has now been decided to revise the existing facility of cross-margining and to extend it across cash and derivatives segments to all categories of market participants."In a recent move, the government has permitted liquidity support for non- banking finance companies (NBFCs) through a subsidiary of state-run lender Industrial Development Bank of India (IDBI). The liquidity support would be worth approx. US$ 3.94 billion US$ 4.93 billion and can be utilized by the NBFCs only to repay active liabilities.

The measure is expected to look after the liquidity needs of the NBFCs for around the first six months of 2009.According to a MasterCard survey, Mumbai leads the pack of strategically important commercial centre in emerging nations, ahead of Shanghai and Kuala Lumpur."In terms of financial services environment, Mumbai

ranks one among all 65cities covered by the index. It received the top score in the dimension of banking services and currency exchange regulations, and ranked highly on the volume of financial services traded," said the report. In all, eight cities from India found a place in the list. Furthermore, foreign pension funds are bullish on India, with over 40 such funds (endowments and university and family foundations) getting registered with the SEBI, during the last few months. One of the reasons for this was the simplification of regulations by SEBI.

Future of Indian Financial Service Sector: Indias financial services sector will enjoy generally
strong growth during coming years, driven by rising personal incomes, corporate restructuring, financial sector liberalization and the growth of a more consumer-orient

Credit -oriented culture. This should lead to increasing demand for financial products, including consumer loans (especially for cars and homes), as well as for insurance and pension products. Indias financial services sector is expected enjoy generally strong growth during coming years, driven by rising personal incomes, corporate restructuring, financial sector liberalization and the growth of a more consumer-oriented, credit-oriented culture. This is expected to lead to increasing demand for financial products, including consumer loans (especially for cars and homes), as well as for insurance and pension products.

Opportunities for the financial sector of India- The distributed financial gain of the venture
capital funds is not taxed. The financial gains are taxed after the investors receive as income o The have more insurance and banking products introduced into the market to broaden the spectrum which in turn would boost the growth of the sector o Further nullification of the regulations have to take place in order to increase the competition and boost the growth of the financial sector to reach the US$ 51 billion mark

Company Analysis:- Edelweiss is one of the leading financial services company in India. Its current
businesses include investment banking, securities broking, and investment management. It provides a wide range of services to corporations, institutional investors and high net-worth individuals.

Evolution of the company: The Edelweiss Group is a conglomerate of 31 entities including

28Subsidiaries and 2 Associate companies, engaged in the business of providing financial services, primarily linked to the capital markets.

Cii knowledge partner for manufacturer sector conference oct. 2003 Established Ny office Mar 2002 Team expansion-59 employees mar 2001

Capital raising in edelweiss oct. 2000

Rev. Rs.15m, 8 employees march 1999

Business acquires traction oct 2003

Founded nov.1995

Insurance advisory, retail broking fory 2003

IT services and BPO specialist First land mark deal may 1998 First course dec.1997

Edelweiss research rated oct 2002 Oct2002 Acquired rooshnil, our broking subsidiary dec.2000

ABOUT COMPANY

Edelweiss Capital Limited (www.edelcap.com), incorporated on 21st November 1995, today has emerged as one of Indias leading diversified financial services group. The Edelweiss Group offers one of the largest range of products and services spanning varied asset classes and diversified consumer segments. The Groups product offerings are broadly divided into Investment Banking, Brokerage Services, Asset Management and Financing. The companys research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate, institutional and HNI clients. Edelweiss Group now employs over 1300 employees, leveraging a strong partnership culture and unique model of employee ownership. It operates through 123 offices in 60 cities in India. Edelweiss has recently completed the acquisition of Anagram Capital Limited which adds 139 offices, 122 franchise offices and over 1300+ sub-brokers to its operations and enables it to enlarge its retail footprint. The Edelweiss Group is now a conglomerate of 46 entities including 39 Subsidiaries and 6 Associate companies (June 10), which are engaged in the business of providing diverse financial services. It is a listed company since December 2007 under the symbols NSE: EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN.

Board of Directors:- The Edelweiss Board comprises of three independent directors and one
non-independent non-executive director out of a total of six directors, each of whom brings in his own expertise in diverse areas.

These are the following Stages:o 2000 Acquisition of Cross border Investments Private Limited o 2001 F & O license obtained in the year 2001

o 2002 NBFC registration of Cross border Investments Private Limited o Acquisition of Rooshnil Securities Private Limited

o 2004 Commencement of Commodity Broking o 2005 Commencement of Insurance Broking

o 2006 NBFC registration of ECL Finance Limited o 2006 Managed the first Qualified Institutional Placement under the new regulatory framework in India.

o 2006 Advised the first AIM listing of a listed Indian corporate. o 2007 Clearing Member License

Award: o investment banking : completed over 120 transactions over multi-advisory platforms cy 2007 - ranked #1 in Bloomberg (mid-cap pe) and fy 2008 prime database (mid-market IPOs) outlook NDTV award for best merchant banker of the year 2008brokinginstitutional amongst top 5 institutional brokerage firm amongst top 3 derivatives desk unique alternative and quantitative research insights broking- hni services landmark tie-up with PSU bank union bank of India and bank of Rajasthan to engage HNI clients with innovative and customized

investment solutions debt syndication desk in the first full year of operations of debt syndication desk ranked #1 as per prime database in short term debt placement for cy08 ranked #9 by Bloomberg and Thomson reuters in Indian domestic bonds market league table for cy08

SERVICES PROVIDED BY THE COMPANY

Equities:

Company believes in fast, efficient, quality-based service with immediate execution and the timely pay-in/pay-out of deliveries and funds, resulting in substantial cost savings for our customers. Our processes have been developed so as to maximize customer benefits with personalized services.

Derivatives: Derivatives (Futures & Options) are ideal instruments to protect your portfolio against risk. You can trade with index movements, hedge and leverage your portfolio by limiting risk but keeping your upside unlimited.

Depository Services:
In the times of T+2 working days having a demat account linked to client trading account becomes really convenient. The non-trading clients also can avail of their Depository services. Client can receive regular account reports and an efficient service at all times.

Mutual Fund Distribution:

Based on client risk appetite, investment horizon and clients existing investments company will suggest investment in mutual fund schemes, which are best, suited. The fund and scheme selection is done after an in-depth research on parameters like risk-adjusted returns, rolling returns, volatility and portfolio churn. Company provides a mature and long-term view on mutual fund investments.

Internet Trading:
Company also provides internet trading facility through BSEWEBX.

New Issues:
IPO bidding facilities are available & Clients can apply for new issues through company.

Online Back office:

Clients can view their contract notes, bills and ledgers through company website.

About the product:- EQUTIY AND DEBT FUNDS

As per the schedule in the first two weeks I got the product knowledge and the various schemes which are to be provided to the various clients to maintain a long term relationship which in others refers to CRM from the company. The product includes: Investment Account It is a product which provides the investors with a platform of getting a Demat account, trading account, informations regarding mutual funds floating in the market and information regarding the various insurance floating in the market

Facilities included in investment account:o It includes Mutual fund investment o Annual maintenance cost free for two years o Online portal- www.edelblue.com o Offline trading facilities o Toll free number o Personalized Dealer o Relationship manager (RM) o Free mobile tips o Daily market report, weekly report and monthly report o Transaction charges nil in Intraday and delivery o No depository participant charges

o 75% margin holding. various schemes of Investment Account: 1250 Plan:In this, customers have to pay amount worth Rs.1250. These charges are for account opening. And six month brokerage free, turnover 200000.Features: There is no minimum margin compulsory for investment.

Subscription Amt. 1250 2450 4950 7450 9950

Broker charge

Validity

Turnover

0.045/0.45 0.04/0.4 0.03/0.3 0.25/.25 0.02/.2

6 months 1 year 1 year 1 year 1 year

200000 1000000 2500000 5000000 10000000

REASONS FOR INVESTING IN EQUITY FUNDS:o Your money needs to generate much higher returns to secure your retirement:Connect the dots of your ages, your 30s/ 40s or 50s and they WILL connect to 60,70 and even 80. You will turn old one day. And you will not want to depend on someone then, even your kids. The good news is that you can start today and build sizeable savings by 50% the time you retire.

The chart shows how saving at a more than average rate of 20% can make your savings increase substantially over the next 20 years. By how much? A 1 lakh savings today can increase to close to Rs. 40 lakhs by the time you are ready to hang up your boots.

The trick is not to be satisfied with the 5% or 10% returns and hunt for investments that can give you above average returns. Your search ends here.

Equity markets can give the returns needed to secure your future:- The graph below shows that returns generated by the Sensex over the past 20 year period have been a healthy 15%. This while the Indian economy grew at 3-4% for more than half that 150% period. Going forward, this growth is targeted to be 6-8%, now you know why we are optimistic about the equity markets.

If you have been wary of investing in equity funds because of the risk involved, we have some news for you

Historical data proves that investing in the Equity market becomes less risky in the long term

As shown above, the peaks and troughs of returns can be mellowed by remaining invested for the long term. The historical analysis shows how the maximum and minimum returns generated by the Sensex behave from 1 year to 20 years.

But you may be a complete beginner and may know nothing about how to invest. Fortunately, there are collections of investors called Mutual funds that have professional fund managers that invest in the stock market collectively on behalf of investors.

Introduction of edelweiss comtrade:_

o EFA agent will contact you either by telephone, or by tracking registrations on website regarding Commodities o Upon agreeing on a face to face meeting, the form along with details such as brokerage, lot sizes, volumes traded etc will be communicated to the client

o This communication happens via the dealer or Relationship Manager who will handle the client, he is also responsible for ensuring the form gets filled up correctly and is responsible for follow ups which may be required

Service Tax @ Plan Subscription 10.3% on subscription 258 515 1030 2575 5150 10300 25750 Total Amount Rs Validity 2758 5515 11030 27575 55150 110300 275750 12 months 12 months 12 months 12 months 12 months 12 months 12 months

Brokerage %

Number Amount Rs 1 2 3 4 5 6 7 2500 5000 10000 25000 50000 100000 250000

0.03 0.03 0.025 0.02 0.015 0.01 0.005

Overall timeline:- Lead Generation (Varies) o Lead Assignment and Activation (48 Hours) o Form Filling and Submission (24 Hours) o Verification by Branch and Submission to Ahmedabad (24 Hours) o Verfication by Ahmedabad and Reverting (48 Hours) o Client Code Generation / Activation of UCC / Verification of UCC by Exchange / Activation on Terminals (48 Hours) o Total Time 192 Hours 8 Days

Introduction of mutual funds

If you know absolutely anything about investing, and then you have probably heard of mutual funds. The one investment vehicle that has truly come of age in India in the past decade is mutual funds. Today, the mutual fund industry in the country manages around more than Rs 100,000 crore of assets, a large part of which comes from retail investors. And this amount is invested not just in equities, but also in the entire gamut of debt instruments. Mutual funds have emerged as an alternative for investing in avenues that are out of reach of most retail investors, particularly government securities and money market instruments. The popularity of mutual funds may be relatively new but not their origin which dates back to 18th century. Mutual fund means a fund established in the form of a trust to raise money through the sale of units to the public under one or more schemes for investing in securities including money market instruments Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart:-

TYPES OF MUTUAL FUNDS SCHEMES: There are a myriad of different mutual funds. The Investment Company Institute (ICI) is an association for mutual funds that classifies the many types of funds. Essentially, there are three basic types of mutual funds: equity funds, fixedincome funds and money-market funds. If you are not completely sure what classification a mutual fund belongs to, check its beta co-efficient. The funds with the higher betas will probably be aggressive growth funds (equity or stock funds), and those with lower betas will be fixed-income funds. By Structure
o o o

Open - Ended Schemes Close - Ended Schemes Interval Schemes

By Investment Objective
o o o o o o

Aggressive Growth Schemes Growth fund Income Schemes Balanced Schemes Bond fund Money Market Schemes

Other Schemes
o

Tax Saving Schemes

Introduction of edelweiss Tokyo life insurance:-

Edelweiss Tokio Life Insurance is a new generation Insurance company, set up with a start up capital of INR 550 Crores, thereby showing our commitment to building a long term sustainable business focused on a consumer centric approach. The company is a joint venture between Edelweiss Financial Services, one of India's leading diversified financial services companies with business straddling across Credit, Capital Markets, Asset Management, Housing finance and Insurance and Tokio Marine Holdings Inc, one of the oldest and the biggest Insurance companies in Japan now with presence across 39 countries around the world. As a part of the companys corporate philosophy of customer centricity, our products have been developed based on our understanding of Indian customers diverse financial needs and help them through all their life stages. Since its inception in 1996, Edelweiss has seamlessly grown into a large diversified financial services organization offering businesses ranging from Credit, Capital Market, Asset management, Housing Finance and Insurance. Currently, the groups net worth is in excess of INR 2,800 Crores. Over the last decade, Edelweiss revenue has grown at a CAGR of 63% and net profit has grown at a CAGR of 76% (till the end of FY 11). Present across 308 offices in 140 cities, the group, with over 2800 employees, and services a client base of more than 3,50,000 (Sept 11). The Groups core brand philosophy, Ideas Create, Values Protect is translated into an approach that is led by entrepreneurship and creativity, protected by intellectual rigour, research and analysis. Edelweiss has been recognized as a Business Super brand in the year

2011 by Super Brands India, testimony to the reputation enjoyed Tokio Marine Holdings Inc, the holding company for Tokio Marine group is one of the oldest and biggest Insurance companies in Japan; with interests in Life, Non-Life, and Re-Insurance, it has a presence in 427 cities across 39 countries around the world. The company has over 130 years of operational history in the Non-Life sector while it has been in Life Insurance since 1996. It has a presence in Japan, China, Singapore, Malaysia and Thailand. The Group has booked revenues of INR 1,77,650 Crore and Net Income of INR 3,884 Crore. In Life Insurance its Gross Written Premium (GWP) is over INR 31,834 Crore

Types of insurance: Life insurance:- Term plan o Accidental death benefit rider o Accidental total / permanent disability o Weave of rider o Critical illness rider Cash flow protection plan

Child education plan

UlLIP plan (tax benefit plan)

Training program:Roles & responsibility as a intern:o Duration of the training:-The duration my training was 45 days (7th may to 20th june)at edelweiss broking limited o Object of training:- Main Object:- To develop a client network for the edelweiss broking limited

Secondary objects:organization

To understand the business development process of the

o To relates various theoretical concept of finance studied in the class room to real market situation o To learn the art of convincing and negotiating and how to achieve the expected result Responsibility as a student intern:- As a summer internship my responsibility are as follow o To visit a corporate house and sell Dmat account, o Learn how to initiate trader pitch, handover the business to company what I get. o Callings to their existing clients and solving the problems o Retaining of client through cross selling of product

Scope and duties assigned:- I have visited the following area for client network
development. o Sikar road o Pratap nagar o Tonk road o C- scheme

Corporate Client- Bosch company & forest department

o During the initial phase of my project I along with my team member searched for the corporate clients. We searched for prospective corporate clients thorough internet and reference. We got contact numbers of many companies through internet. Our first approach with the company was telephonic. With the continuous search we were able to crack o Bosch company & forest department :- which is one of the company in sitapura (industrial area) & another one in c-scheme jaipur

Retail Clients:- For the retail clients I focused on Employees of Mphasis & TelePerphormencewhich is
a call centre in Indore. Mphasis, an EDS company, is a leading Applications Services, Remote Infrastructure Services, BPO and KPO services provider. We deliver real improvements in business performance for clients through a combination of technology know-how, domain and process expertise. With currently over 24,000 people on the roles, we service clients in Financial Services, Healthcare, Communications, Transportation, Consumer & Retail industries

Accomplishment: - Following is the list of retail clents of edelweiss broking limited

Babita singh Near dawai factory pratap nagar , sanganer jaipur

Description:- Get a margin money 5000/- now started a trding

Gopal singh jala Gaushala pratap nagar , sanganer jaipur

Description:- Get a margin money 25000/- now started a trding

Jain furniture Near raghunath bhawan gunj ajmer

Description:-sell a dmat account with margin of 1000/

Lalit singh 22gaudown jaipur

Description:- sell a dmat account with margin of 2000/-

New knowledge acquired:o Get an exposure to the different function of the organization and understand how they are perfomed and coordinate o How to relates various concept studied in the class room to real organization enviorment o Relationship building with industrial people o All over the practical exposure of the corporate world

Problem encountered:- Due to the nature of product-higly risky as well as in price. It

became a arise difficulty to sell the product across a large territory

Shortage of time Limited area

Learning from the Project:o Start early o Keep some cash aside o Decide how much risk you can tolerate o Bear in mind that inflation will eat into your savings o Think carefully about how long you will be investing for o Invest regularly o Spread your money across a range of investments o Choose your funds carefully o Remember that time not timing is the key to successful investing o Dont let the Sensex guide your senses o Review your investments

In detail, we can understand these easily:

o Start early:- The sooner one invests, the more time his money will have to grow. If he delays, he will almost certainly have to invest much more to achieve a similar result e.g. if you started investing Rs. 5,000 a month on your 40th birthday, in 20 years time you would have put aside Rs. 12 lakhs. If that investment grew by an average of 7% a year, it would be worth Rs. 25,52,994 when you reach 60. o Keep some cash a side:- It is always a good idea to have some money in a deposit account in case of emergencies. Enough to cover three months living expenses is often a rough guide to how much you need and make sure you can withdraw it when you need to, without penalties. The following may be the reasons for which you might need your money at short notice: making a major purchase,

taking an unplanned holiday,

seeing you through an emergency such as sudden hospitalization or job loss etc.

o Decide how much risk you can tolerate:- There is no point having a stock market investment you are going to lose sleep every time share prices go through a rough patch. Its vital that you are realistic about your appetite for risk an Investment Adviser may be able to help you decide how much risk you can tolerate. Peter Lynch, Vice Chairman of Fidelity Management & research Company has expressed his opinion as In many ways, the key organ for investing is the stomach, not the brain. What is your stomach going to do when an investment your brain selected declines for a year or two? o Bear in mind that inflation will eat into your savings:- Returns on risk free cash investments may sound respectable, but when you subtract the current rate of inflation you may not be so impressed. For significant long term grow you need to make your money work a little harder e.g. if you have Rs. 10,000 in a savings account earning 3% interest each year, in 20years time, your savings would be worth Rs. 18,061. Thats a return of just over 80%. However, if inflation is about 7%, Rs. 18,061 would only be worth Rs. 4,688 in todays terms o Think carefully about how long you will be investing for:- Only look at the stock market if you are prepared to put your money away for five or ten years, or perhaps even longer. If you are likely to need your money any sooner, keep it in a lower risk investment so there is less chance of a fall in value just before you make a withdrawal. As Peter Lynch, Vice Chairman of Fidelity Management & Research Company has said earlier If you are going to need money within the near future to pay college tuition or put a down payment on a house the stock market is not the place to be. You can flip a coin over where the market is headed over the next year. But if you are in the market for the long haul five, ten or twenty years then time is on your side and you should stick to your long term investment plan.

o Invest regularly:- vesting regularly can be a great way to build up a significant lump sum. You will also benefit from what is known as Rupee Cost Averaging. This means that, if you are investing in a mutual fund, over the years you will pay the average price for units. If the market goes up, the units you already own will increase in value. If it goes down, your next payment will buy more units. This can be frequently understood at the time of studying about the Systematic Investment Plan. The regular saver finishes the period with an investment that is worth more than that of the lump sum investor even though the starting price, finishing price and average price are exactly the same. It sounds unlikely, but its true.

o Spread your money across a range of investments:- Its rarely a good idea to have all your eggs in one basket. Depending upon your goals and your attitude to risk, you will probably want to spread your money across different types of investment equities, bonds and cash. You may also want to diversify within each of these categories.

The principle of diversification holds true within equities as well. Investing across a range of companies, sectors and even markets ensure that you are not reliant on the performance of any one type of equity and hence, do not run the risk of having all your eggs in one basket. Diversification within equities should ideally be considered at three levels:

Across stocks Across sectors Across markets

Type Of Asset

Advantage

Disadvantages
Interest rates are variable and currently very low The best rates may only be available on special terms or for

High level of security Cash

High liquidity Interest will always be paid Interest is set in advance and paid regularly The value of the bond in the open market may go up

larger amounts

The bond issuer may default on interest payments or be unable to make the final payment

Bonds Paying interest on bonds is a higher priority than paying dividends on shares Equities can increase significantly in value Equities Dividends can increase as company profits increase The value of a bond in the open market may go down

Equities can also fall significantly in value Its very difficult to predict what will happen in the short term

o Choose your funds carefully:- You should select investments on the basis of what is right for your personal circumstances and goals. If you are deciding on a mutual fund to invest in, dont opt for the one that is the flavor of the month, unless you are sure it will be right for your needs in the years to come. And dont assume that all funds investing in Indian equities are essentially the same look at the details of what a fund invests in and check if you are comfortable with its investment style and objectives.

2006 Industry Sector (%) Info. Technology (BSE IT Index) Public Sec. Utilities (BSE PSU Index) Capital Goods (BSE CG Index) Consumer Goods (BSE FMCG Index)
-37.2 -37.0 -35.9 -7.2

2007 (%)
-39.4 -4.2 -19.6 -10.9

2008 (%)
4.1 73.9 47.8 -11.4

2009 (%)
23.0 144.2 167.8 35.4

2010 (%)
24.7 11.6 27.2 -6.9

COMPOUNDED ANNUALISED RETURNS

60% 50% 40% 30% 20% 10% 0% 1 Year 3 Years

Actively managed funds BSE Sensex

5 Years

9 Years

Over each of these periods, actively managed funds have outperformed the Sensex. Over a five year period this out performance has been quite substantial more than four times better than the index. This is the benefit of active management.

Active fund mangers make their own decisions about which shares to buy. Some use statistical analysis, others follow fashion. A good fund manager will choose stocks on the basis of thorough research, seeking companies with the potential of reward investors.

For the greatest long term growth potential you could simply invest all your money in equity mutual funds, right from the start of your investing period to the end. But, of course, this would be a high risk strategy. The markets could dip just before you need the money. Thats why you need to think about changing your portfolio over time. You may want to aim for strong growth in the early years, and then, as the years go by, lock in any gains you have made and move into lower risk investments, such as bonds. As you get closer to needing your money, lower risk bond and cash investments could become your emphasis.
.

25 Years to go

10 Years to go

5 Years to go

Bonds

Equities

Cash

Bonds

Equities

Cash

Bonds

Equities

Cash

AGGRESIVE PORTFOLIO 2% 18%

80%

Equity

Fixed Income

Cash

MODERATE PORTFOLIO
3% 37%
60%

Equity

Fixed Income

Cash

CONSERVATIVE PORTFOLIO 6% 35% 59%

Equity

Fixed Income

Cash

Another way to ascertain the right asset allocation is by looking at your life cycle. The basis of this theory lies in the simple maxim that younger people with secure jobs will normally opt for higher returns and take higher risks compared to older retired people. One must remember that these are only indicative strategies and will probably have to be fine-tuned to meet your individual needs.

Age

Main Objectives Aggressive Growth Sow the seeds, plan for housing and create a safety cushion

Portfolio Strategy 50% - Growth Funds 30% - Balanced Funds 20% - Money Markets / Cash 45% - Growth Funds 30% - Balanced Funds 05% - Blue Chip Stocks 20% - Money Markets / Cash 40% - Growth Funds 30% - Balanced Funds 10% - Blue Chip Stocks

20-29

Growth Save for housing, childrens 30-39 expenses (present and future education etc.) and safety cushion

40-49

Growth Childrens expenses (present and future education etc.) and safety

cushion

20% - Money Markets / Cash 30% - Growth Funds

50-59

Retirement Save for retirement and build on safety cushion

40% - Balanced Funds 10% - Blue Chip Stocks 20% - Money Markets / Cash 10% - Balanced Funds 15% - Income Funds

60-69

Safety Preserve investments/ savings and opt for minimal growth

10% - Blue Chip Stocks 20% - Dividend Stocks 30% - Certificates of Deposits 15% - Money Markets / Cash

70 & Above

30% - Income Funds

Safety Preserve investments/ savings

25% - Dividend Stocks 35% - Certificates of Deposits 10% Money Markets / Cash

Financial performance:Profit & loss account of edelweiss financial services:-

Income Sales turnover Excise duty Net sales Other income Stock adjustment Total income Expenditure Raw materials Power & fuel Employee cost Other manufacturing expenses Selling & administration exp. Miscellanies exp. Total exp.

Mar12 (cr.) 166.32

Mar11 (cr.) 448.74

0.00 166.32 40.97 0.00

207.29 0.00 0.00 37.35 0.00 0.00 32.63 69.98 Mar12 (cr.) 96.34 137.31 59.62 77.69 1.71 0.00 75.89 0.00 75.98 7.34 68.63 69.98 0.00 45.43 -1.38 7567.99 0.91 60.00 17.85

0.00 448.74 -9.13 0.00

439.61 0.00 0.00 38.15 2.03 30.01 5.51 75.70 Mar,11 (cr.) 373.04 363.04 300.11 63.80 1.42 0.00 62.38 0.00 62.38 3.65 58.73 58.73 0.00 45.12 1.38 7520.26 0.78 60.00 17.56

Operating profit PBDIT interest PBDT Deprecation Other written off Profit before tax Extra ordinary items PBT Tax Reported net profit Total value addition Preference dividend Equity dividend Corporate dividend tax Per share data (annualized) Shares in issue(lakh) Earning per share (rs) Equity dividend (%) Book value (rs)

Balance sheet of edelweiss financial services:-

Source of found

Total equity share Equity share capital Share application money Preference share capital Reserve
Net worth Secured Loans Unsecured loans Total debth Application of funds Gross block Less: accum. depreciation Net block Capital work in progress Investment inventories Sundry debtor Cash and cash balance Total current assets Loans and advance Fixed deposit Total ca loans & advance Deffered Credit Current liabilities provision Total cl & liabilities Net current assets Miscellaneous expenses Total assets Contingent liabilities Book value (rs)

Mar12 (cr) 75.68 75.68 1.18 0.00 1274.95 1351.81 22.55 2360.06 2382.61 9.60 3.91 5.69 0.00 1464.48 0.00 20.48 1.48 21.96 2361.75 0.00 2383.71 0.00 88.31 31.15 119.46 2264.25 0.00 3734.42 3090.81 17.85

Mar11(cr) 75.20 75.20 2.14 0.00 1245.67 1323.01 99.51 3496.60 3596.11 11.73 7.98 3.75 0.00 1199.52 0.00 17.13 0.97 18.10 3800.56 0.00 3828.92 0.00 76.97 36.09 113.06 3715.86 0.00 4919.13 2097.04 17.56

Recommendations:- During my project I came across certain aspects about Edelweiss. These aspects are as follows:

More accessibility- Edelweiss has only one branch in rajasthan. In order to increase its reach Edelweiss needs have more no. of branches so that as much as clients can be converted into new business opportunities.

More promotional activities- Since Edelweiss has recently started its retail broking business; it needs to aggressively make itself aware to the common public. Although Edelweiss has done well in HNI sector, but to do well in retail sector it needs to do more of the promotional activities.

Customized Seminars for working persons :- As per my experience with Bosch company& forest department prospective clients are busy in their own job. Most of the retail clients are either employed or professionals who dont have time to think about investment planning. Edelweiss needs to cater to their needs by arranging seminars on weekends, so that prospective clients can command gain insight about the company and investment avenues.

Effective sales time:- Since market conditions is improving its important to capturethose clients who are not active due to bad financial

Conclusions:After going through all the aspects of client profiling and client relationship management, it can be inferred that client profiling and client relationship management is very much necessary to survive in the fiercely competitive market. In order to give clients the best product and maximum satisfaction, it is indispensable to do their profiling first. Customer Profiling helps in finding new customers for business. It will extract people and/or businesses that match the profile of our product. For example, we wouldn't try to sell a fur coat to an animal activist or a pack of cigarettes to a health advocate. Therefore client profiling should be first thing to be done by Edelweiss before approaching any of the client. Customer profiling is one of the best prospecting tools. By applying profiling techniques, you can fully exploit data about customers buying patterns and behavior and gain a greater understanding of consumer motivations. Customer Profiling helps to dramatically increase response rates of your marketing campaigns by micro targeting the right customer with the right product. I applied the concept of client profiling and I used it to profile the employees of Mphasis Tele Perphormence. Accordingly I approached them with the product that suits them best. Client Relationship management also helped me to build long term relations with my customers. This kind of harmonious relationship will further bring new business opportunities to Edelweiss in the form of new clients. Through continuous follow up of clients I could built personal and healthy relationship with my clients. With the economy showing signs of consolidation and recovery, it is now even more important for Edelweiss to attract new customer as the market is expected to-do well in coming months. To do so it is of utmost importance for Edelweiss to use client profiling and client relationship management.