PROJECT REPORT

ACKNOWLEDGEMENT

I would like to express my gratitude to almighty God without whose blessing I wouldnt have been able to take initial step in this research. Words are insufficient to express my gratitude to Mr. Nitish ipankar !my industry guide for his guidance and support in preparing this pro"ect. I would also like to thank my faculty guide whose support and suggestions has helped me to complete this pro"ect successfully. My sincere thanks to all those people who gave me their valuable time and input by filling my #uestionnaires.

$inally I would like to thank my parents! family members and friends for their support.

DECLARATION

I hereby declare that the work presented in the pro"ect report! titled %Investment &trategies and 'ortfolio Management was carried out by me as a part of M() curriculum during * weeks summer training program in the +rd semester. ,he report is an authentic record of my work carried out under the guidance of Mr. Nitish ipankar in &tandard -hartered (ank. It is further declared that the report has not been submitted earlier for any other degree or diploma.

PREFACE
India is a developing country and we all know that banking sector plays a very important role. In development with the increasing use of banking and finance in every field, new trends in their technology and modern use are being evolved day to day to meet the requirements. Infact !"#I"$% has become the need of today. &he purpose of '()*+,& (+')(& is to e-pose 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. 'reparing pro.ect report in the summer vacations and under going the summer training is the indispensable part of the college period. It provides the opportunity to review what we have gained in the training period and also provides the way to convey the knowledge and ideas to others. &he present pro.ect provides the information on the STANDARD CHARTERED BANK%. /earning is not possible in solitude and has to have the support and able guidance of some people around us in various roles and capacities. &he 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 hard work, undeterred missionary 0eal, fast determination, and consideration. &herefore, we consider it a pleasant duty to e-press our heartiest appreciation, gratitude, and indebtedness to our pro.ect guide 1r. "itish
2

3ipankar for his keen interest, sincere e-tortion, invaluable and pain taking e-cellent guidance, continuous calm endurance, inspiration and encouragement during each phase of the present pro.ect.

EXECUTIVE SUMMARY

In this pro.ect, I have to study the most important products of banking industry i.e. 4avings account, Insurance and 1utual 5unds . !fter gaining appropriate knowledge of these products, I have to promote the products of 4tandard ,hartered to the customers and try to convince them to buy the products via e-plaining 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 pro.ect.

INDEX TITLE CHAPTER1 INTRODUCTION

/./ 0istory of (anking Industry /.1 0istory of &tandard -hartered (ank /.+ Introduction of the topic

PAGE NO.
. * /2 13 ++ +2 +4 +4 89 8. 29 .4 .* *9

CHAPTER-2 RESEARCH METHODOLOGY CHAPTER-3 DATA COLLECTION

+./ &ources of data collection +.1 'roducts of &tandard -hartered 5&avings )ccount 5 67I' 5Mutual $unds

CHAPTER- 4 ANALYSIS AND INTERPRETATION CHAPTERCHAPTERCONCLUSION APPENDIX

REFERENCES

CHAPTER 1
INTRODUCTION

1.1 Overview of the Banking System

6ntil the /329s! banking in India was carried on by a large number of banks! many of them #uite small. India is still primarily an agricultural country! with an economic and social structure based largely on the village. ,he integration of banking has been impeded by poor communications! by illiteracy! and by the barriers of language and caste. Modern banking in India is said to be developed during the (ritish era. In the first half of the /3th century! the (ritish :ast India -ompany established three banks ; the (ank of (engal in /*93! the (ank of (ombay in /*89 and the (ank of Madras in /*8+. (ut in the course of time these three banks were amalgamated to a new bank called Imperial (ank and later it was taken over by the &tate (ank of India in /322. )llahabad (ank was the first fully Indian owned bank. ,he <eserve (ank of India was established in /3+2 followed by other banks like 'un"ab National (ank! (ank of India! -anara (ank and Indian (ank. In /343! /8 ma"or banks were nationali=ed and in /3*9! 4 ma"or private sector banks were taken over by the government. ,oday! commercial banking system in India is divided into following categories.

-entral (ank
9

,he <eserve (ank of India is the central (ank that is fully owned by the Government. It is governed by a central board >headed by a Governor? appointed by the -entral Government. It issues guidelines for the functioning of all banks operating within the country. 'ublic &ector (anks a. &tate (ank of India and its associate banks called the &tate (ank Group b. /3 nationali=ed banks c. <egional rural banks mainly sponsored by public sector banks

'rivate &ector (anks a. @ld generation private banks b. New generation private banks c. $oreign banks operating in India d. &cheduled co5operative banks e. Non5scheduled banks

-o5operative &ector ,he co5operative sector is very much useful for rural people. ,he co5 operative banking sector is divided into the following categories. a. &tate co5operative (anks b. -entral co5operative banks c. 'rimary )griculture -redit &ocieties

evelopment (anksA$inancial Institutions

I$-I I (I I-I-I II(I

:

N)()< :xport5Import (ank of India National 0ousing (ank &mall Industries evelopment (ank of India North :astern evelopment $inance -orporation

(anking in India is so convenient and hassle free that one >individual! groups or whatever the case may be? can easily process transactions as and when re#uired. ,he most common services offered by banks in India are as followB (ank accountsB It is the most common service of the banking sector. )n individual can open a bank account which can be either savings! current or term deposits. 7oansB Cou can approach all banks for different kinds of loans. It can be a home loan! car loan! personal loan! loan against shares and educational loans. Money ,ransferB (anks can transfer money from one corner of the globe to the other by issuing demand drafts! money orders or che#ues. -redit and debit cards B Most banks offer credit cards to their customers which can be used to purchase products and services! or borrow money. 7ockersB Most banks have safe deposit lockers which can be used by the customers for storing valuables! like important documents or "ewellery.

(anking service for N<IsB Non <esident Indians or N<Is can open accounts in almost all Indian banks. ,he three types of accounts that N<Is can open areB o Non5<esident >@rdinary? )ccount 5 N<@ )Ac o Non5<esident >:xternal? <upee )ccount 5 N<: )Ac o Non5<esident >$oreign -urrency? )ccount 5 $-N< )Ac
1;

R!"!#$! %&'( )* I'+,& -R%I. ,he central bank of the country is the <eserve (ank of India ><(I?. <eserve (ank of India was nationalised in the year /383. ,he body of the central bank consists of the Governor and four eputy Governors! one Government official from the Ministry of $inance! ten nominated irectors by the Government to give representation to important elements in the economic life of the country! and four nominated irectors by the -entral Government to represent the four local (oards with the head#uarters at Mumbai! Dolkata! -hennai and New elhi. 7ocal (oards consist of five members each -entral Government appointed for a term of four years to represent territorial and economic interests and the interests of co5operative and indigenous banks. ,he need for bank isB

,o regulate the issue of banknotes ,o maintain reserves with a view to securing monetary stability and ,o operate the credit and currency system of the country to its advantage.

F/'01,)'" )* R!"!#$! %&'( )* I'+,& ,he <eserve (ank of India performs all the important functions of a central bank. %&'( )* I""/! ,he (ank has the sole right to issue bank notes of all denominations. ,he distribution of rupee notes and coins and small coins all over the country is undertaken by it as agent of the Government. ,he <eserve (ank has a separate Issue epartment which is concerned with the issue of currency notes. ,he <eserve (ank of India is re#uired to maintain gold and foreign exchange reserves of <a. 199 crores! of which at least <s. //2 crores should be in gold. ,he
11

system as it exists today is known as the minimum reserve system. %&'(!# 1) G)$!#'2!'1 ,he second important function of the <eserve (ank of India is to act as Government banker! agent and adviser. ,he <eserve (ank is agent of -entral Government and of all &tate Governments in India excepting that of Eammu and Dashmir on all monetary and banking matters. ,he <eserve (ank has the obligation to transact Government business! via. to keep the cash balances as deposits free of interest! to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. It makes loans and advances to the &tates and local authorities %&'(!#"3 %&'( &'+ L!'+!# )* 14! L&"1 R!")#1 ,he <eserve (ank of India acts as the bankersF bank. )ccording to the provisions of the (anking -ompanies )ct of /383! every scheduled bank was re#uired to maintain with the <eserve (ank a cash balance e#uivalent to 2G of its demand liabilites and 1 per cent of its time liabilities in India. (y an amendment of /341! the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves e#ual to *.12G per cent of their aggregate deposit liabilities. ,he minimum cash re#uirements can be changed by the <eserve (ank of India. ,he scheduled banks can borrow from the <eserve (ank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. &ince commercial banks can always expect the <eserve (ank of India to come to their help in times of banking crisis the <eserve (ank becomes not only the bankerFs bank but also the lender of the last resort.
12

C)'1#)55!# )* C#!+,1 ,he <eserve (ank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the (ank rate or through open market operations. It can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. ,he <eserve (ank of India is armed with many more powers to control the Indian money market. :ach scheduled bank must send a weekly return to the <eserve (ank showing! in detail! its assets and liabilities. ,his power of the (ank to call for information is also intended to give it effective control of the credit system. ,he <eserve (ank has also the power to inspect the accounts of any commercial bank. ,he <eserve (ank of India! therefore! has the following powersB >a? It holds the cash reserves of all the scheduled banks. >b? It controls the credit operations of banks through #uantitative and #ualitative controls. >c? It controls the banking system through the system of licensing! inspection and calling for information. >d? It acts as the lender of the last resort by providing rediscount facilities to scheduled banks. S/6!#$,")#7 */'01,)'" In addition to its traditional central banking functions! the <eserve bank has certain non5monetary functions of the nature of supervision of banks and promotion of sound banking in India. <(I has wide powers of supervision and control over commercial and co5operative banks! relating to licensing and establishments! branch expansion!
13

li#uidity of their assets! management and methods of working! amalgamation! reconstruction! and li#uidation. ,he <(I is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. ,he supervisory functions of the <(I have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation P#)2)1,)'&5 */'01,)'" ,he (ank performs a variety of developmental and promotional functions! which! at one time! were regarded as outside the normal scope of central banking. ,he <eserve (ank was asked to promote banking habit! extend banking facilities to rural and semi5urban areas! and establish and promote new specialised financing agencies. )ccordingly! the <eserve (ank has helped in the setting up of the I$-I and the &$-H it set up the eposit Insurance -orporation in /341! the 6nit ,rust of India in /348! the Industrial evelopment (ank of India also in /348! the )gricultural <efinance -orporation of India in /34+ and the Industrial <econstruction -orporation of India in /3.1. ,hese institutions were set up directly or indirectly by the <eserve (ank to promote saving habit and to mobilise savings! and to provide industrial finance as well as agricultural finance. ,he <(I has set up the )gricultural <efinance and evelopment -orporation to provide long5term finance to farmers.

12

1.2 istory of Stan!ar! "hartere! ,he &tandard -hartered Group was formed in /343 through a merger of two banksB ,he &tandard (ank of (ritish &outh )frica founded in /*4+! and the -hartered (ank of India! )ustralia and -hina! founded in /*2+. (oth companies were keen to capitali=e on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from :urope to the :ast and to )frica. T4! C4&#1!#!+ %&'( $ounded by Eames Wilson following the grant of a <oyal -harter by Iueen Jictoria in /*2+ -hartered opened its first branches in Mumbai >(ombay?! -alcutta and &hanghai in /*2*! followed by 0ong Dong and &ingapore in /*23 ,raditional business was in cotton from Mumbai >(ombay?! indigo and tea from -alcutta! rice in (urma! sugar from Eava! tobacco from &umatra! hemp in Manila and silk from Cokohama 'layed a ma"or role in the development of trade with the :ast which followed the opening of the &ue= -anal in /*43! and the extension of the telegraph to -hina in /*./ In /32. -hartered (ank bought the :astern (ank together with the Ionian (anks -yprus (ranches. ,his established a presence in the Gulf T4! S1&'+&#+ %&'(

16

 $ounded in the -ape 'rovince of &outh )frica in /*41 by Eohn 'aterson. -ommenced business in 'ort :li=abeth! &outh )frica! in Eanuary /*4+ Was prominent in financing the development of the diamond fields of Dimberley from /*4. and later extended its network further north to the new town of Eohannesburg when gold was discovered there in /**2 :xpanded in &outhern! -entral and :astern )frica and by /32+ had 499 offices In /342! it merged with the (ank of West )frica expanding its operations into -ameroon! Gambia! Ghana! Nigeria and &ierra 7eone In /343! the decision was made by -hartered and by &tandard to undergo a friendly merger. )ll was going well until /3*4! when a hostile takeover bid was made for the Group by 7loyds (ank of the 6nited Dingdom. When the bid was defeated! &tandard -hartered entered a period of change. 'rovisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. &tandard -hartered began a series of divestments notably in the 6nited &tates and &outh )frica! and also entered into a number of asset sales. $rom the early 39s! &tandard -hartered has focused on developing its strong franchises in )sia! the Middle :ast and )frica using its operations in the 6nited Dingdom and North )merica to provide customers with a bridge between these markets. &econdly! 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 we ac#uired Grindlays (ank from the )NK Group and the -hase -onsumer (anking operations in 0ong Dong
17

in

1999.

S1&'+&#+ C4&#1!#!+ 5!&+,'8 14! 9&7 &tandard -hartered '7- is listed on both the 7ondon &tock :xchange and the 0ong Dong &tock :xchange and is consistently ranked in the top 12 among $,&:5/99 companies by market capitali=ation. &tandard -hartered has a history of over /29 years in banking and operates in many of the worldFs fastest5growing markets with an extensive global network of over /!899 branches >including subsidiaries! associates and "oint ventures? in over 29 countries in the )sia 'acific <egion! &outh )sia! the Middle :ast! )frica! the 6nited Dingdom and the )mericas. )s one of the worldFs most international banks! &tandard -hartered employs almost 49!999 people! representing over /99 nationalities! worldwide. ,his diversity lies at the heart of the (ankFs values and supports the (ankFs growth as the world increasingly becomes one market. With strong organic growth supported by strategic alliances and ac#uisitions and driven by its strengths in the balance and diversity of its business! products! geography and people! &tandard -hartered is well positioned in the emerging trade corridors of )sia! )frica and the Middle :ast. &tandard -hartered derives over 39 per cent of profits from )sia! )frica and the Middle :ast. &erving both -onsumer and Wholesale
18

(anking customers worldwide! the (ank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award5winning solutions. ,rusted across its network for its standard of governance and corporate responsibility! &tandard -hartered takes a long term view of the conse#uences of its actions to ensure that the (ank builds a sustainable business through social inclusion! environmental protection and good governance. &tandard -hartered is also committed to all its stakeholders by living its values in its approach towards managing its people! exceeding expectations of its customers! making a difference in communities and working with regulators.

E"1&:5,"42!'1 )* S1&'+&#+ C4&#1!#!+ %&'( &#)/'+ 14! 9)#5+ Country <nited #ingdom Year Estab !s"e# Country 1963 !ustralia 1e-ico, )man 'eru *ersey ra0il >ene0uela Year Estab !s"e# 1:72 1:79 1:83 1:89 1:8: 1:9;

,hina, India, 4ri 1969 /anka =ong #ong, 4ingapore Indonesia, 'akistan 'hilippines 1alaysia *apan 196: 1973 1982 1986 199;

5alkland Islands, 1:93

19

1acau ?imbabwe &he $ambia, 4ierra /eone, &hailand $hana otswana <4! angladesh ?ambia #enya <ganda &an0ania ahrain *ordan #orea Aatar 19:2 19:2 19:7 19:8 1:;2 1:;6 1:;7 1:11 1:12 1:18 1:2; 1:26 1:2: 1:6; &aiwan ,ameroon "epal >ietnam 1:96 1:97 1:98 1::;

,ambodia, 4outh 1::2 !frica Iran ,olombia /aos, !rgentina "igeria /ebanon ,ote d@Ivoire 1auritius &urkey !fghanistan 1::3 1::6 1::7 1::: 2;;; 2;;1 2;;2 2;;3 2;;2

R!0!'1 "1#&1!8,0 &55,&'0!" &'+ &0;/,",1,)'" 2;;6 and 2;;7 were historic years for us as we achieved several milestones
1:

with a number of strategic alliances and acquisitions that will e-tend our customer or geographic reach and broaden our product range. Be completed, rebranded and successfully integrated 4, 5irst ank in #orea, which to date is the biggest acquisition in our history. Be completed full integration between 4tandard ,hartered ank &hailand and 4tandard ,hartered "akornthon ank in )ctober. Be formed strategic alliances with 5leming 5amily C 'artners to e-pand private wealth management in !sia and the 1iddle +ast. Be acquired stakes in !, >ietnam and &ravele-. Be acquired the business operations of !merican +-press ank in angladesh. Be acquired a stake in ohai ank in &ian.in, ,hina, making us the first foreign bank to be allowed a stake in a local bank in ,hina. Be acquired a 26D stake in 5irst !frica $roup =oldings in *une 2;;7. Be acquired an additional 27D stake in 'ermata ank through our consortium with '& !stra International, thus giving the consortium a total stake of 9:D. Be acquired <nion ank in 'akistan in 4eptember 2;;7 and we have successfully rebranded all branches. Be launched a tender offer in the end of 2;;7 for 1;;D in =sinchu International ank, &aiwan.

PERSONAL %ANKING
1< S&$,'8" A00)/'1 &avings )ccount )verage Iuarterly (alance a? aLcess ,his account i?$ree 6nlimited (s. 1;,;;; plus account provides Jisa ),M unparalleled transactions.
2;

:xclusive $eatures

$eatures

access to your money through a ii? $<:: oorstep variety of (anking. channels. iii? International ebit -ard iv? 'hone (anking v? @nline (anking b? No $rills It is designed to i?$ree che#ue <s. 129 )ccount meet you basic deposit at ant banking &-( branch or re#uirements ),M ii?)ccess your account from any branch of &-(

iii?),M card and ebit card iv?'hone banking v?@nline banking i?Maintain <s. 12!999 individual savings account with the benefit of clubbing balances in grouped accounts. ii?@ption of &I' that allows you to
21

cE'arivaar !ccount

It allows you to maintain your individual identity while allowing you to tap your family@s financial strength.

invest a fixed amount of money every month in specific portfolio. iii?Globally valid ),M5cum5 ebit card. iv?'hone (anking v?@nline (anking It is a basic! no i?No minimum <s. 9 maintenance and balance re#uired. hassle free ii?6nlimited free savings account. access to &-( ),Ms. iii?International ebit -ard iv?'hone (anking v?@nline (anking

d?)asaan )ccount

2< CREDIT CARDS &tandard -hartered (ank offers a wide range of credit cards! each tailored to satisfy an individual needs. 3< INSURANCE AND INVESTMENTS

4tandard ,hartered ank has a tie up with a.a. !llian0 /ife Insurance ,ompany and (oyal 4undaram $eneral Insurance to offer a variety of products in order to cover all insurance requirements. &hey offerF
22

o @ne5stop shopping for both life and general insurance protection o -omprehensive range of products to suit every stage of your life... from childhood to retirement o edicated insurance $inancial &ervices -onsultants from (a"a" )llian= 7ife Insurance -ompany to provide $<:: -onsultations to create customi=ed insurance plans for you

G#!&1 P5&0! 1) W)#( &tandard -hartered employs almost 49!999 people in 24 countries and territories! representing over /99 nationalities. emographic changes! competition in our markets and our own rapid growth provide a bigger challenge than ever to attract! develop and engage our employees to continue to deliver strong results. )s we grow! we believe our diverse and inclusive approach provides engaging opportunities for our employees to develop! both as individuals and as part of a team. We are committed to creating a healthy! safe and fulfilling work environment in which people can grow! individuals can make a difference and teams can win. @ur approach to managing people is underpinned by four principlesB ) focus on managing talent to identify! reward and retain talented employees (uilding a strengths5based approach by providing the skills to develop individuals and teams by focusing on peopleFs personal strengths

) commitment to drive employee engagement through the development of exceptional managers with the skills to identify and build talent

23

 -reating a diverse and inclusive workplace that encourages our employees to achieve their potential and support our growth P#,)#,1,!" &1 S1&'+&#+ C4&#1!#!+ )t &tandard -hartered! we believe that our future success depends on our ability to deliver a sustainable business. @ur Fbuilding a sustainable businessF strategy will help us take a long5term view of the implications of everything we do. ,his means taking responsible decisions that benefit our business! the economy! society and the environment ; and build the trust of all our stakeholders. @ur Fbuilding a sustainable businessF strategy explicitly recogni=es seven areas where we and our stakeholders believe we are most likely to make the greatest contribution to sustainability. ,hey areB S/"1&,'&:5! 5!'+,'8 ; making sure when we lend money we are aware of the environmental! social and governance risks attached to such decisions and that we take steps to address them T&0(5,'8 *,'&'0,&5 0#,2! ; making sure that we have the right systems in place to detect such things as fraud and money laundering and exceed! rather than simply meet! increasingly stringent legal re#uirements in this field A00!"" 1) *,'&'0,&5 "!#$,0!" ; making sure we develop new ways for those deprived of banking services to get proper access to finance so that they can improve their standard of living and economic independence R!"6)'",:5! "!55,'8 = 2&#(!1,'8 ; making sure we treat customers fairly and set the highest standards in service and transparency
22

 P#)1!01,'8 14! !'$,#)'2!'1 ; making sure we not only minimi=e our own direct impact on the environment but support others! such as customers! to do the same. We also want to support the development and commerciali=ation of technologies and schemes that tackle environmental threats like climate change G#!&1 65&0! 1) 9)#( ; making sure that with our people! who represent over /99 nationalities from over 29 countries! feel valued! included and engaged. WeFre determined to attract! develop and retain the best people and to leverage the strength the diversity of our people brings! which is an incomparable advantage C)22/',17 ,'$!"12!'1 ; making sure we involve our employees and utilise our core expertise! networks and resources to help communities develop and economies to grow

G)$!#'&'0! ,he governance structure we have set up for &ustainability provides strategic direction for the (ank and ensures we continue to make progress with our approach to sustainable development. ,he -orporate <esponsibility and -ommunity -ommittee sit at the top of this structure alongside the <emuneration! )udit and <isk! and Nomination -ommittees of our (oard. It is supported by a Group &ustainability team! steering groups for specific programmes and our branches and offices in each country we operate in.

26

,he -ommittee is chaired by Mervyn avies! the Group -hairman! and meets #uarterly. It drives the &ustainability agenda at &tandard -hartered and is responsible for responding to issues coming out of new &ustainability legislation! regulation! stakeholder guidance and reporting and for making sure our activities are aligned with our overall business strategy. It also ensures we publish a &ustainability report! supported by accurate data! each year! in line with best practice. ) dedicated &ustainability team! based in the 7ondon office! supports the -ommittee! the (usiness and other Group functions. ,he role of the team is to talk with stakeholders! monitor good practice and flag up potential trends and emerging issues. It co5 ordinates the collection of data and is responsible for our annual &ustainability <eview and web site! participating in thought leadership events and raising our &ustainability profile outside the (ank. Nine &teering Groups or -ommittees put the (ankFs strategy into action! co5ordinate Group5wide initiatives and provide policy recommendations to the (oard! its various committees or the -orporate <esponsibility and -ommunity -ommittee. ,hey areB &trategic &ourcing and Jendor Management -ommittee iversity -ouncil :nvironmental &teering Group 0ealth and &afety &teering Group Group <isk -ommittee <eputation <isk -ommittees &eeing is (elieving -ommittee
27

 7iving with 0IJ )dvisory -ommittee -ommunity 'artnership (oards (ecause our business is spread across the globe in very different market places! each -ountry 0ead is responsible for identifying and responding to local &ustainability issues. It is the responsibility of each business unit to adhere to policies that have been set on a global basis. Where local standards exceed group set policies! the higher standard is adopted. E'8&8!2!'1 0elping stakeholders understand the way we operate and the challenges we face is fundamental to making progress with our Fbuilding a sustainable businessF strategy. :ngagement is a word used by many organi=ations! but it means something very specific to &tandard -hartered. It is the way we go about communicating with three distinct but interconnected audiencesB O/# )9' !265)7!!" ; we want them to really understand what M(uilding a sustainable businessM means P!)65! &'+ )#8&',>&1,)'" 14&1 /"! )# ,'*5/!'0! )/# 6#)+/01" &'+ "!#$,0!" ; we want to work closely with them to develop and promote sustainable services P!)65! &'+ )#8&',>&1,)'" 14&1 4&$! 14! 6)9!# 1) 2&(! & 9,+!# +,**!#!'0! ; we want to use our geographic reach to promote the need for sustainable development We have been working on our stakeholder engagement programme for some years. Work in this area has recently increased as continue to build a clearer picture of our global stakeholder audience including government departments and agencies! socially responsible
28

investors! academic institutions! business associations and non5 governmental organisations. In 1994 we invited 49 of our key stakeholders to help us develop our Fbuilding a sustainable businessF strategy. ,heir contributions ; many of which are included in our 1994 &ustainability <eview ; helped us decide what our sustainable development priorities should be. (uilding a truly relevant stakeholder network is challenging! however! it is extremely important that we continue to build our network in the years ahead. O'!-S1)6 R&'8! )* P#)+/01" &'+ S!#$,0!" We have a full range of foreign exchange and risk management solutions to meet the needs of clients across the world. . S1&'+&#+ C4&#1!#!+ A51!#'&1! I'$!"12!'1 G#)/6 &tandard -hartered (ankFs )lternate Investment Group focuses on distressed and high5yield opportunities by investing in senior debt! me==anine or e#uity instruments. In addition! it provide asset management services to investment banks! financial institutions and value investors as well as advisory services to companies in financial distress or re#uiring assistance with their capital structure. O/# %/",'!""

I'$!"12!'1"< @ur investment program is aimed at both the primary and secondary markets. We provide li#uidity to the distressed and high yield market through the followingB

)c#uisition of distressed asset portfolios Investments in loans and bonds @ffering priority loans > I'?! subordinated or me==anine debt
29

@ffering structured investments Investments in e#uity Investments in hybrid structures

A""!1 M&'&8!2!'1< We offer a range of services under asset management including origination of investment opportunities! due diligence! loan servicing >monitoring and recovery? for single assets and portfolio investments. ,he (ank has a successful track record of managing and resolving non5performing loans. C)#6)#&1! A+$,")#7< We offer corporate advisory services to companies re#uiring capital structuring and to companies in financial distress. @ur range of services includesB

)ssessment of strategic issues! ranging from corporate and capital structures to potential mergers and sale of businesses evelopment and implementation of creative and comprehensive solutions to address clientsF various complex issues such as capital restructuring exercise )ssistance in implementing the appropriate debt and e#uity financing structure

O/# S1#!'814"

P#)*!"",)'&5 T!&2< We have a large experienced team of skilled individuals who have developed a reputation for competency in valuation! due diligence! ac#uisition and asset management in the distressed and high yield market. @ur local market knowledge and workout skills offer value to our clients. N!19)#(< We leverage &tandard -hartered (ankFs network in our core markets to provide us on5the5ground knowledge and early access to situations. ,he (ankFs client franchise offers investment opportunities while )lternate Investment GroupFs strong relationships
2:

with investment banks! financial institutions! brokers and value investors provides a valuable source of investors. We utilise superior information to maximise value for our clients. P)",1,)','8< ,he distressed and high5yield markets in )sia!)frica and the Middle :ast offer attractive revenue generating opportunities. ,he (ank is well positioned in these markets to enable )lternate Investment Group to deliver value to the (ank and our clients. 1.#IN$EST%ENT %ANAGE%ENT ST&ATEGIES AN' PO&T(OLIO

A:)/1 I'$!"12!'1 It is the money that you save and channeli=e into sources that gives you return i.e. use of money in hope of making more money. @ne needs to invest toB :arn returns on idle resources Generate a specified sum of money for a specific goal in life Make a provision for a uncertain future ,o meet the cost of inflation ,he 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. ,here are various options available for of investmentB o 'hysical assets like real estate! goldA"ewellery! commodities etc o $inancial assets like fixed deposits with banks! small saving instruments with post offices! insuranceAprovidentApension
3;

fund! securities market related instruments like shares! bonds! debentures etc.

,ypes of Investments >period specific? /. &hort ,erm Investment5 ,he investment period is usually less than a year and it provides li#uidity to the investor.

a? &avings (ank )ccount5 It is most often the first banking product that people use. ,his offers them interest >8G5 2G p.a.? which is better than idle money. b? Money Market of 7i#uid $unds5 ,hese are speciali=ed form of mutual funds that invest in extremely short5term fixed income instruments and also provides li#uidity. It focuses on protecting your capital and then on making returns. ,hese are a better source of investment than savings account but lower than fixed deposits. c? $ixed eposits with (anks5 )lso known as term deposits and the minimum investment period with banks $ is +9 days. It is for those investors who are risk averse and it provides higher rate of return than money market instruments. 1. 7ong ,erm Investment5 ,he investment period is more than a year and the returns are much higher than short term investments. 7ong term instruments are less li#uid than short term investments. a? 'ost office savings5 ,he post office monthly income scheme is a risk saving instrument! which can be availed
31

through any post office. It provides an interest rate of *G per annum! which is paid monthly! minimum amount! which can be invested is <s. /!999 and maximum is <s. +! 99!999. It has a maturity period of 4 years! premature withdrawal is permitted if deposit is more than one year old. ) deduction of 2G is levied from the principle amount if withdrawn prematurely. b? 'ublic 'rovident $und5 ) long term savings instrument with a maturity of /2 years and interest payable at *G per annum compounded annually. ) ''$ account can be opened through a nationali=ed 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.

c? -ompany $ixed eposits5 ,hese are short5 term Nsix monthsO to medium5 term Nthree to five yearsO borrowings by companies at a fixed rate of interest which is payable monthly! #uarterly! 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 45 3 G per annum for company $ s! the interest received is after deduction of taxes. d? (onds5 It is a fixed income NdebtO 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. ) bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date called the maturity date.

32

e? Mutual funds5 ,hese are funds operated by an investment company which raises money from the public and invests in a group of assets Nshares! debentures etcO in accordance with a stated set of ob"ectives .It is a substitute for those who are unable to invest directly in e#uities or debt because of resource! time or knowledge constraints. (enefits 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 )sset Jalue NN)JO! 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.

About Portfolio ) portfolio is a combination of different investment assets mixed and matched for the purpose of achieving an investors goals. ) portfolio may contain items like shares! debentures! bonds! any asset you own! mutual funds to items such as gold! art! real estate. @ne must have variety of investments within a portfolio in order to diversify market risk. ,he portfolio should be designed in such a way that it minimi=es the impact of one security on overall portfolio performance. )dvantages of having a iversified portfolioB ecline in any one security will not affect the entire portfolio

33

 Investments across various types of assets and markets will reduce the risk of entire portfolio getting affected by the adverse returns of any single asset class.

CHAPTER $ %
RESEARCH &ETHODO'O(Y

32

R!"!&#04 M!14)+)5)87 @(E:-,IJ: ,o understand the basics of investment alternatives that are available with the investor. and various

)lso to understand the customer psychology of investments and what are the various ob"ectives behind the investment. ,C': @$ <:&:)<-0 escriptive in nature5 ,he descriptive research design is one that describes the things such as the market potential for a product or the demographics and attitudes of consumers who buy the product. It includes #uestionnaire survey and fact finding in#uiry. &)M'7: :&IGN

&)M'7: 6NI,B elhi and N-< region &)M'7: &IK:B 29 &)M'7: &:7:-,I@NB <andom! convenient ),) -@77:-,I@N ,@@7& /. 'rimary data. ,he ma"or source of primary data was the information and #uestionnaire collected from the investors and the customers. ,he information collected from the "ournals and the trainer can also be referred to as the primary data.
36

1. &econdary data. ,he ma"or source of secondary data was the reference books and companys website. ,he companys articles and maga=ines were also referred to for the information.

CHAPTER)*
DATA CO''ECTION

37

3<1 S)/#0!" )* D&1& C)55!01,)' '<IM)<C ),) -@77:-,I@N

'rimary data was collected through #uestionnaires. <efer to the appendix for the data. &:-@N )<C ),) -@77:-,I@N

&econdary sources through ; Internet )rticles papers and books

3<2 P#)+/01" )* S1&'+&#+ C4&#1!#!+ 1< SAVINGS ACCOUNT

38

a< AX0!""P5/"
Get instant cash at over 19!999 ),Ms across India and over /9!99!999 ),Ms across the world through the Jisa network. )nd get a globally valid ebit -ard that lets you shop at over +!14!999 outlets in India and at over /8 million outlets across the world. P $<:: 6nlimited Jisa ),M transactionsQ >-ash withdrawal and balance en#uiry? P $<:: &tandard -hartered (ank branch access across the county P P P $<:: $<:: oorstep (ankingQ emand raftsA'ay @rdersQ >drawn at &-( locations?

$<:: 'ayable at 'ar -he#uebook

@ther features available areH P P P P International ebit -ard 'hone (anking Net(anking and :xtended (anking 0ours

:< P&#,$&&#

39

'arivaar is much more than a regular &avings )ccount. It allows you maintain your individual identity while allowing you to tap your familyFs financial strength. It also offers attractive insurance options to protect against unforeseen events and the facility of &ystematic Investment 'lan >&I'?! a uni#ue long5term wealth building tool. Cour family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts. )nytime! anywhere access to accounts through ),Ms! 'hone (anking and InterNet banking. @ption of &ystematic Investment 'lan >&I'?! a well known long term wealth building tool that allows you to invest a fixed amount of money every month in specific mutual funds. ,his comes with a direct debit facility and avoids the need to remember dates and write che#ues every month. Globally valid ),M5cum5debit card can be used at 22!999 merchant outlets in India and /1 million outlets worldwide.

c. N) F#,55" A00)/'1 Cou can now open an account with &tandard -hartered (ank! with an average #uarterly balance of as low as <s. 129. Whats more ; you can avail of )nywhere (anking! by which you can access your account from any branch of &tandard -hartered (ank in India. Iuarterly )verage (alance! as low as <s. 129. ),M card R ebit -ard available.. 8 free transactions per month at any &tandard -hartered (ank channel >Internet banking! 'hone (anking! ),M R (ranch?..

3:

 )nywhere banking ; )ccess your account from any branch of &tandard -hartered (ank. )ccess to 'hone (anking and Internet (anking $ree -he#ue deposit at any &-( (ranch or ),M. :ligibility criteria ,his account is available to individual <esident Indian customers. )ccount may be opened after being properly introduced in a manner approved by the (ank. +< A&S&&' No Minimum (alance re#uirement $ree unlimited access to any &-( branch across the country for -ustomer5in5person 6nlimited $ree access to &tandard -hartered (ank ),MFs 6pto 8 free cash withdrawal transactions per month at other domestic JI&) ),MsQ Nominal #uarterly fee of <s. /99 >reversed if the )verage (alance in the #uarter is <s /9!999 or more?

@ther $acilities International ebit -ard 'hone banking Net(anking

2;

 :xtended banking hoursQ 7ocker facilityQ oorstep banking

,o open an aa&aan account! you have to initially fund the account with <s. /9!999 ><s. ,en ,housand?

CO&PARISION O+ SA,IN(S ACCOUNT

Schedule of services provided by various bank - A Comparison

Kota&a"!n#ra +dge 'ro !ce ABN A.ro Stan#C"art 5le!dvantage aGcess 'lus 5le- 'lus 4uper >alue 5le'rvilage aa4an 4aving "o 5rills4avings

+eatures "ame of saving accounts

ICICI

HD+C 4aving (egular 4aving 'lus 4avings1a-

!verage Auarterly alance

1;,;;;

!dvantage H; 'lus H 'lus H 1;,;;; 'ro H 2;,;;; 1;,;;; 1a- H !ce H 'rivilage H 26,;;; 86,;;; 26,;;;

(egular H 6,;;;

+dge H 1;,;;;

aGcess H 1;,;;; 4uper value H 6;,;;; aa4an H "! "o 5rills H 26; 3.6;D

(ate of Interest !nnual 1aintenance charges

3.6;D

3.6;D (egular H 86;

3.6;D

3.6;D

86;

+dge H 86;

86;

aGcess H 86;H16;; 21

'lus H 86;H 1;;; 1a- H 1;;;H 16;; Issue of debit card !nnual 3ebit card charges Ies Ies

'ro H 86; !ce H 12;; Ies $lobal H 1;; Ies 19; J &a-es

4uper >alue H 126; "o frills H 1;; Ies

::

6;;

4hop 4mart H 2;; $old H 8::

3raft ,harges Kper thosandE

2;H66

<pto 26,;;; H "! !ndhra ank C 4 IH"!

6;

66 <&I C 6 transaction from any bankH 5ree

6;

!&1 4wap charges

5ree

=35,Hfree

5ree from all anks

1obile banking Internet banking 'hone banking ,heque book

5ree 5ree 5ree 5ree

5ree 5ree 5ree !t 'ar 5ree

5ree 5ree 5ree 2Lleaf Kat parE

5ree 5ree 5ree !t 'ar 5ree

5ree 5ree 5ree

2< ULIP- U',1 L,'(!+ I'"/#&'0! P5&' L,*! ,'"/#&'0! is a guarantee that your family will receive financial support! even in your absence. 'ut 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 money5saving scheme! which empowers you to accumulate wealth5to buy a new car! get your children married and even retire comfortably.
22

7ife insurance also triples up as an ideal tax5saving scheme. ,o know more! read the Dey (enefits of 7ife Insurance.

K!7 %!'!*,1" )* L,*! I'"/#&'0! 7ife insurance! especially tailored to meet financial needs N!!+ *)# L,*! I'"/#&'0! ,oday! 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 hard5earned money. 7ife insurance is a uni#ue investment that helps you to meet your dual needs 5 saving for lifeFs important goals! and protecting your assets. A""!1 P#)1!01,)' $rom an investorFs point of view! an investment can play two roles 5 asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation! life insurance is uni#ue in that it gives the customer the reassurance of asset protection! along with a strong element of asset appreciation. ,he 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. &imultaneously! insurance products also have a strong inbuilt wealth creation proposition. ,he customer therefore benefits on two counts
23

and life insurance occupies a uni#ue space in the landscape of investment options available to a customer. G)&5 :&"!+ "&$,'8" :ach of us has some goals in life for which we need to save. $or a young! newly married couple! it could be buying a house. @nce! they decide to start a family! the goal changes to planning for the education or marriage of their children. )s one grows older! planning for oneFs retirement will begin to take precedence. -learly! 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. 7ife insurance is the only investment option that offers specific products tailormade 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. ,he table below gives a general guide to the plans that are appropriate for different life stages. L,*! S1&8! P#,2&#7 N!!+ Coung R &ingle )sset creation L,*! I'"/#&'0! P#)+/01 Wealth creation plans Wealth creation and mortgage protection plans :ducation insurance! mortgage protection R
22

Coung R )sset creation Eust married R protection Married with -hildrenFs kids education! )sset creation and protection

'lanning for Middle aged retirement R with grown asset up kids protection )cross all 0ealth plans life5stages

wealth creation plans <etirement solutions R mortgage protection 0ealth Insurance

&tandard chartered (ank has a tie up with (a"a" )llian= 7ife Insurance to sell their insurance plans.

,he (a"a" )llian= New 6nitGain &uper comes with a host of features to allow you to have the best of all worlds 5 'rotection and Investments. It enables every participant to create a solid financial protection and savings plan for himself and his family. In this way! as a participant in the (a"a" )llian= New 6nitGain &uper 'lan! you can secure your well being and accumulate savings towards financial independence and a comfortable retirement. ,hey offer the best in financial planning. @ne can now avail of the twin benefit of risk protection as well as getting market5linked return on your investment. )n insurance plan that works round the clock to meet the changing re#uirements in life ; additional protection! more money to invest! sudden re#uirement of cash or a steady post5 retirement income. With (a"a" )llian= New 6nitGain &uper! you can invest in one life insurance plan that can take care of all your changing re#uirements. ,his plan has been designed to provide your family with higher financial assistance should anything unfortunate were to happen to you as well as flexibility! so that you do not have to worry about your changing needs.
26

T4! K!7 F!&1/#!" )* 14! N!9 U',1G&,' S/6!# P5&' &#! B P It is a unit linked plan with minimum term of /9 years and maximum maturity age .9 P Guaranteed death benefit P Cou have the option to choose a host of additional benefits ><iders?B 67 )ccidental eath (enefit! 67 )ccidental 'ermanent ,otalA'artial isability (enefit! 67 -ritical Illness (enefit and 67 0ospital -ash (enefit P It provides you with an easy! regular contribution mechanism to assist you in accumulating funds. $our different options to choose from ; &ilver! Gold! iamond R 'latinum @ptions 'remium <ange &ilver ST<s 12!999 but U <s 29!999 Gold ST<s 29!999 but U <s /99!999 iamond ST<s /99!999 but U <s 299!999 'latinum ST<s 299!999 R )bove P Cou can adopt your own investment strategy to grow the funds contributed. P -hoice of 4 investment funds today with flexible investment managementB you can change funds at any time and also invest in the newer funds that would be introduced from time to time. I'$!"12!'1 O61,)'"B
27

(a"a" )llian= New 6nitGain &uper offers you a choice of + funds. Cou can choose to invest fully in any one fund or allocate your premiums into the various funds in a proportion that suits your investment needs. ,he six funds offered are as underB 1<E;/,17 I'+!? F/'+ II - R,"( P#)*,5! H,84 @ ,he investment ob"ective of this fund is to provide capital appreciation through investment in e#uities forming part of N&: NI$,C. $6N :L'@&6<: (ank eposits and Money Market 9G5/2G Instruments :#uities *2G5 /99G

2<E;/,17 G#)914 F/'+- R,"( P#)*,5! V!#7 H,84 @ ,he investment ob"ective of this fund is to provide capital appreciation through investment in selected e#uity stocks that have the potential for capital appreciation. $6N :L'@&6<: (ank eposits and Money Market 9G519G Instruments :#uities *9G5 /99G

3<A00!5&1)# M,+-C&6 F/'+- R,"( P#)*,5!- V!#7 H,84@ ,he ob"ective of this fund is to achieve capital appreciation by investing in a diversified basket of mid cap stocks and large cap stocks. $6N :L'@&6<:
28

(ank eposits and Money Market 9G519G Instruments Not more than 19G of the *9G5 apportioned premium can be put /99G in this fund

4< A""!1 A55)0&1,)' F/'+ 5 <isk 'rofile5 0ighB the ob"ective of this fund will be to reali=e a level of total income! including current income and capital appreciation! which is consistent with reasonable investment risk. It allows for flexibility in allocating assets between e#uities! bonds and cash. It will help to capitali=e the changing financial markets and economic conditions. ,he funds will ad"ust its weights in e#uity! debt and cash depending on the relative attractiveness of each asset class. $6N :L'@&6<: :#uities 9G5 /99G ebt 9G5 /99G Money Market Instruments 9G519G

<L,;/,+ F/'+5 <isk 'rofile5 7owB ,he ob"ective of this fund is to have a fund that protects invested capital through investment in li#uid money market and short5term instruments. $6N :L'@&6<: (ank eposits and Money Market /99G Instruments Not more than 19G of the apportioned premium can be put in this fund

29

A<%)'+ F/'+5 <isk 'rofile5 ModerateB ,he ob"ective of this fund is to provide accumulation of income through investment in high #uality fixed income securities.

$6N :L'@&6<: (ank eposits and Money Market 9G519G Instruments G5&ecs! (onds and $ixed *9G5 eposits /99G

3< MUTUAL FUNDS Mutual $unds are a pool of funds to diversify risk. ,hese are funds operated by an investment company which raises money from the public and invests in a group of assets Nshares! debentures etcO in accordance with a stated set of ob"ectives .It is a substitute for those who are unable to invest directly in e#uities or debt because of resource! time or knowledge constraints. (enefits 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 )sset Jalue NN)JO! 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.

2:

%!'!*,1" ,he reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. ) large part of the success of mutual funds is also the advantages they offer in terms of diversification! professional management and li#uidity. In M$s! the risk involved decreases and the return increases because of diversified pool of funds. It is the cheapest of all investments. (ut if you invest through broker then you have to any 1.2G of the total investment but if you invest directly into the company no entry charges will be taken. ,here is no lock in period in case of M$s but if you divest toyur investment within a period of /year then you will have to pay an exit load between /G51G. ,ax &aving is another benefit given to the investors.

F5!?,:,517 5 Mutual $und investments also offers you a lot of flexibility with features such as systematic investment plans! systematic withdrawal plans R dividend reinvestment. A**)#+&:,5,17 5 ,hey are available in units so this makes it very affordable. (ecause of the large corpus! even a small investor can benefit from its investment strategy. L,;/,+,17 5 In open ended schemes! you have the option of withdrawing or redeeming your money at any point of time at the current N)J

6;

D,$!#",*,0&1,)' 5 <isk is lowered with Mutual $unds as they invest across different industries R stocks. P#)*!"",)'&5 M&'&8!2!'1 5 :xpert $und Managers of the Mutual $und analyse all options based on experience R research P)1!'1,&5 )* #!1/#' 5,he fund managers who take care of your Mutual $und have access to information and statistics from leading economists and analysts around the world. (ecause of this! they are in a better position than individual investors to identify opportunities for your investments to flourish. L)9 C)"1" 5 ,he benefits of scale in brokerage! custodial and other fees translate into lower costs for investors. R!8/5&1!+ *)# ,'$!"1)# 6#)1!01,)' 5 ,he Mutual $unds sector is regulated to safeguard the investorFs interests.

0ere we have to calculate the Net )sset Jalue which helps us in calculating the no. of units. N)JT -)5-7 No.of 6nits If the market price decreases! the no. of units held by the investor increases and vice versa.

61

CHAPTER)/
ANA'YSIS 0 INTERPRETATION

62

ANALYSIS AND INTERPRETATION

A1. What is your age groupV
D,"1#,:/1,)' )* R!"6)'+!#" A8! 8#)/6"

>d? S 82 yrs /8G >c? +2582 yrs /9G a? /*512 yrs 28G >b? 125+2 yrs 11G

)ccording to the survey! maximum number of people belong to the age group of /*512 years. &o we can say that most of the respondents will be willing to take risk and make investments in the market instruments with moderate risk.

63

A2. What is your @ccupationV

,he above graph shows the occupation of the sample respondents. 29G of the respondents belong to the category of salaried employees. /4G of the respondents are into (usiness. /8G of the responds are self employed and the rest 19G into other occupation.

62

A3. 6nder which range your 0ousehold Income fallsV

,he graph above depicts the household income range of the respondents. ,he income range of the maximum respondents lie in the 25/9 lakhs category whereas only 8G i.e. only 1 respondents income falls in the category of U 1 lakhs.
66

I8. What is your ob"ective behind InvestmentsV

)ccording to the graph! the basic ob"ective of most of the people behind investments in ,ax benefits followed by good returns. It is really important for the investor to get good amount of profits on his investment. ,he next possible reason for investment is future plans for themselves and their family. Jarious other reasons for investments include safety and security of capital and managing uncertainties.
67

A6. 0ow do you take financial decisionsV

sources of decision

/3G 3G

/G

11G

>a? Independently >b? Word of mouth >c? (roker >d? )dvise from a -) >e? )dvise from a (ank

*G /1G

13G

>f? $inancial )dvisors >g? @thers >please specify?

)ccording to the survey! 13G i.e. maximum no. of respondents take their financial decisions based on others opinion i.e. word of mouth. 11G of the total respondents take their financial decision independently. ,hey take this decision based on their own interpretation and calculations. /3G of the respondents take their financial decisions with the help of financial advisors.

68

/1G of the respondents take their financial decision based on the interpretation of the broker. <emaining respondents take their financial decisions either with the help of the bank or from the -).

A7. 0ow much <isk are you willing to takeV

)ccording to the graph above! .9G of the respondents are willing to take moderate risk i.e. +2 respondents take moderate risk while taking investments decisions. /1G of the respondents i.e. 4 people out of 29 surveyed are willing to take high risk. /*G of the respondents i.e. 3 people are risk averse so they make investments in those securities which have less risk involved.
69

A8. What do you have presently in your portfolio in form of

investmentV

*,'&'0,&5 6#)+/01"

88

N)< )* #!"6)'+!#" 4&$,'8 14! 6#)+/01 ,' 14,!# 6)#1*)5,)

+1

1. 18 19

14

/+

8 9 >a? $ixed deposits >b? 'ropertyA7and >c? 6lip >d? Gold >e? 7ife insurance policies >f? Government bonds >g? Mutual funds >h? :#uityA&hares >i? @thers

$&#,)/" *,'&'0,&5 6#)+/01" *)# ,'$!"12!'1"

6:

)ccording to the survey! most of the respondents have insurance policies in their portfolio followed by fixed deposits. ,hese two are those instruments which involve low risk. ,hose who can moderate risk have invested in property! mutual funds and e#uity. &ome of the people have also invested in 67I' and gold which involved low risk.

A9. 0ow would you rate the satisfaction level with your current

portfolioV
satisfaction level

8G /*G :xcellent 9G 4G 1G .9G Jery Good very poor )verage 'oor Good

,he above chart shows the satisfaction level of the sample population. Ma"ority of the sample population rate their current portfolio as WGoodX which constitutes to .9G. /*G of the sample population i.e. 3 respondents out of 29 rate their current portfolio as WJery GoodX.
7;

4G of the respondents are not much satisfied with their portfolio so they rate it as W)verageX. @ut of the total sample si=e of 29! only 8G of the respondents i.e. 1 people rate their portfolio as W:xcellentX as they must be getting good returns from their investment. <emaining 1G 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 W'oorX. ANALYSIS %ASED RESPONDENTS ON THE AGE GROUP OF THE

)? )ge Group /*512 years i? @ccupation

71

In this age group! maximum no. of the respondents are salaried employees. @ut of the total sample population! . respondents out of 1. are neither into "ob! nor business. ,hey have either invested into the share or commodity markets or they are students. @ut of 1.! 8 respondents are self employed i.e. they have "oined their family business. <emaining 1 respondents out of 1. in this age group are into business.

72

ii?

Income

73

,he above graph shows the income level of the respondents in the age group of /*512 years. In this age group! maximum no. of respondents has an income in the range of 152 lakhs. /9 of out of 1. respondents in this age group has an income range between 25/9 lakhs. )round 19G of this age group has an income above /9 lakhs and the remaining /9G are below 1 lakhs.

72

iii? <isk

)ccording to the graph! 44G of the respondents i.e. /. respondents out of 1. can take moderate risk and invest in both the stock market and the government bonds. ,hese people can have a portfolio with large as well as small cap funds.

,hose who take low risk invest in li#uid funds! debt funds and in some of the government bonds.

,he remaining /2G of the respondents take high risk which means that they invest in e#uity! mutual funds and other risky instruments.
76

,his graph shows a correlation between the occupation! risk and income of the respondents. ,he yellow line depicts the risk level! pink depicts the income level and blue depicts the occupation of the respondents. )ccording to the survey! when the income level of this age group is below 1 lakhs! they can invest in those instruments that have low risk attached to it and the occupation of such respondents is salaried employees.
77

)s the income level range increases to 152 lakhs! the respondents decide to invest in those instruments having moderate risk attached to it and these people are generally into business. )ll those whose income level range from 25/9 lakhs! they their risk taking ability is also higher then others. $inally all those respondents whose income level is above /9 lakhs invest in all those investments which have high risk associated with it.

(. )ge Group 125+2 years i? @ccupation

D,"1#,:/1,)' )* )00/6&1,)' *)# 14! &8! 8#)/6 2 -3 7#"

4 2 8 N)< )* + #!"6)'+!'1" 1 / 9 a? (usiness 4

1 /

b? &alaried

c?&elf :mployed

O00/6&1,)'

,here are // respondents out of 29 who are in the age group of 125 +2 years.
78

d?@thers

@ccupation a? (usiness b? &alaried c?&elf :mployed d?@thers ii? Income

No.of <espondents 1 4 1 /

D,"1#,:/1,)' )* I'0)2! *)# 14! A8! 8#)/6 2 -3 7#"

9G 1.G +4G U1 7acs 152 lacs 25/9 lacs S/9 7acs

+.G

@ut of the sample population! // respondents are in the age group of 125+2 years. +.G of the total respondents in this age group have an annual income of 25/9 lakhs. +4G of the respondents i.e. 8 respondents annual income is above /9 lakhs. ,he remaining 1.G of the respondents i.e. + of them have an annual income between 152 lakhs.
79

iii?

<isk

D,"1#,:/1,)' )* R,"( *)# 14! A8! 8#)/6 2 -3 7#"

3G 3G 0igh 7ow Moderate

*1G

)ccording to this graph! ma"ority of the respondents take moderate risk in investments. )nd rest 3G of them can take high and low risk.

7:

D,"1#,:/1,)' )* O00/6&1,)'B I'0)2! &'+ R,"( 5!$!5 )* #!"6)'+!'1" )* &8! 8#)/6 2 -3 7#"
/9 3 * N)< )* #!"6)'+!'1" 4 8 + 1 9 / 1 / 9 1 1 / + 8 / 9 4 8 8 @ccupation Income <isk

O00/6&1,)'B I'0)2! &'+ R,"( 5!$!5

In the graph above! yellow line depicts risk! ping line depicts income and blue line depicts occupation. In the graph above! as the income increases! the risk taking ability also increases. )ll those whose occupation is of salaried employee take less risk as compared to those who are into business.
8;

-. )ge Group +2582 years i? @ccupation

@ccupation (usiness &alary &elf employed @thers

No.of <espondents 1 / / /

81

ii?

Income

In this age group! there is no single respondent below the income level of 1 lakhs. 19G of the respondents lie in the income category of 152 lakhs. 89G of the respondents lie in the income category of 25/9 lakhs.

82

)gain 89G of the respondents lie in the income category of income above /9 lakhs. 0ence! e#ual no. of respondents have an income ranging from 25/9 lakhs.

iii?

<isk

)ccording to the graph! *9G of the people invest in those instruments carrying moderate risk. <emaining 19G of the respondents invest in low risk instruments. No one in this age group invest in instruments carrying high risk.

83

3. )ge Group S82 years

i?

@ccupation

D,"1#,:/1,)' )* O00/6&1,)' *)# 14! &8! 8#)/6 C4 7#"

49.99G 29.99G 89.99G +9.99G 19.99G /9.99G 9.99G a? (usiness b? &alaried 9.99G c? &elf :mployed d? @thers /8.13G &/ 1*.2.G 2../8G

In the graph above! maximum no. of people are salaried employees and minimum no. of people are into some other occupation. 1*.2.G of the respondents! are into business.

82

ii?

Income

D,"1#,:/1,)' )* I'0)2! *)# 14! A8! 8#)/6 C4 7#"

9G 9G 8+G U1 7acs 152 lacs 25/9 lacs 2.G S/9 7acs

In this age group! 8+G of the respondents have an income range between 25/9 lakhs. Ma"ority of respondents i.e. 2.G of the respondents have income above /9 lakhs.

86

iii?

<isk

D,"1#,:/1,)' )* R,"( *)# 14! A8! 8#)/6 C4 7#"

49.99G 29.99G 89.99G 1*.2.G +9.99G 19.99G /9.99G 9.99G 0igh 7ow /8.13G

2../8G

Moderate

In the graph above! maximum no. of respondents i.e. 2../8G of people have an ability to take moderate risk and invest in all kind of instruments. 1*.2.G of the respondents invest in those instruments that carry low risk attached with it. $inally there are only /8.13G of the respondents who invest in those instruments carrying high risk with it.
87

D,"1#,:/1,)' )* O00/6&1,)'B I'0)2! &'+ R,"( 5!$!5 *)# 149 #!"6)'+!'1" )* 14! &8! 8#)/6 C4 7#"
8.2 8 +.2 + 1.2 1 /.2 / 9.2 9 /

N)< )* #!"6)'+!'1"

8 +

8 @ccupation Income <isk /

1 / 9 1

9 +

9 8

L!$!5 )* O00/6&1,)'B I'0)2! &'+ R,"(

In the graph above! as you can see! the age group above 82 years is not willing to take high risk if their income level is not above 2 lakhs per year. )s the income level increases! the risk taking capability also increases.

88

,hose having income level above 25/9 lakhs can invest in those instruments that bear high risk. )ll those respondents who are into business can take moderate risk.

CHAPTER 1
CONC'USION

89

CONCLUSION

,he pro"ect WInvestment &trategies and 'ortfolio ManagementX has helped me a lot to gain an insight about the various banking products. &tandard -hartered (ank is one of the leading private banks which provide all the banking products and investment solutions to their customer. ,hey have differentiated themselves in a very distinct way by providing the best of their services. ,his bank is listed on both 7ondon &tock :xchange and 0ong Dong &tock :xchange. &tandard -hartered has a history of over /29 years in banking and operates in many of the worldFs fastest5growing markets with an extensive global network of over /!899 branches >including subsidiaries! associates and "oint ventures? in over 29 countries in the )sia 'acific <egion! &outh )sia! the Middle :ast! )frica! the 6nited Dingdom and the )mericas. With strong organic growth supported by strategic alliances and ac#uisitions and driven by its strengths in the balance and diversity of its business! products! geography and people! &tandard -hartered is well positioned in the emerging trade corridors of )sia! )frica and
8:

the Middle :ast. &tandard -hartered derives over 39 per cent of profits from )sia! )frica and the Middle :ast. ,he products of &tandard -hartered are very competitive and provide the best of their services to the customer. )ccording to the survey! 33G of the respondents have their saving account which means that it is the hot selling cake in the banking industry. )round +9G of the people have invested in the plan 67I' and +9G5 89G of the respondents have invested in Mutual $unds.

CHAPTER) 2
APPENDI3
9;

4UESTIONNAIRE
3ear respondent this questionnaire is meant for the purpose of research on the topicI">+4&1+"& 4&(!&+$I+4 !"3 ')(&5)/I) 1!"!$+1+"&% for a continuous evaluation of summer internship as part of 1 ! K$E program of !mity usiness 4chool, !mity <niversity, <'. It will be assured that the data collected will not be misused. "ameF ,ontact "oF 1E Bhat is your age groupM KaE 19H26 yrs KbE 26H36 yrs 2E Bhat is your )ccupationM KaE usiness KbE 4alaried KcE 36H26 yrs KcE 4elf +mployed KdE N 26 yrs KdE )thers KdE N 1;lakhs

3E <nder which range your =ousehold Income fallsM KaE O 2 lakhs KbE 2H6 lakhs KcE 6H1; lakhs

2E Bhat is your ob.ective behind InvestmentsM KaE 4afety C security of capital KbE (etirement KcE &a- benefits KdE +-pecting good (eturns KeE 5uture plans KfE 1anaging uncertainties KgE )thers Kplease specifyE 6E =ow do you take financial decisionsM KaE Independently KbE Bord of mouth L friends L relatives 91

KcE roker KeE !dvise from a ank KgE )thers Kplease specifyE

KdE !dvise from a ,hartered !ccountant KfE 5inancial !dvisors

7E =ow much (isk are you willing to takeM KaE =igh KbE /ow

KcE 1oderate

8E Bhat do you have presently in your portfolio in form of investmentM KaE 5i-ed deposits KbE 'ropertyL/and KcE <lip KdE $old KeE /ife insurance policies KfE $overnment bonds KgE 1utual funds KhE +quityL4hares KiE )thers Kplease specifyE PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 9E. =ow would you rate the satisfaction level with your current portfolioM KaE +-cellent KbE >ery $ood KcE $ood KdE !verage KeE 'oor KfE >ery 'oor

RE+ERENCES
92

R!*!#!'0!"

/. Website www.standardchartered.org 1. (ooks Money and (anking5 I-$)I Indian $inanacial Management5 M.C. khan $inanacial Management5 &.N. Maheshwari N-$M5 $inancial (eginners Module

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92