SUMMER TRAINING PROJECT REPORT

ON
A STUDY ON ADITYA BIRLA MONEY WITH SPECIAL
REFERANCE TO BEHAVIOUR OF HNI CLIENTS TOWARDS
WEALTH MANAGEMENT INDUSTRIES




UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:
Mr Amit Chourasia Mr. Priyank Raj





SUBMITTED BY:
Mudit Malpani










ACKNOWLEDGEMENT

It is said, The most important single word is we and the zero
important single word is I .This is true even in todays modern era. It is
absolutely impossible for a single individual to complete the assigned job
without help and assistance from others.

It is my greatest pleasure to acknowledge sincere gratitude towards Mr.
Rajesh Soni (Regional Head) ADITYA BIRLA MONEY MART LTD, I
would like to thank Mr. PRIYANK RAJ (Sr. Relationship Manager and
Mentor), Mr. Shaqueel Ahmed (Sr. Relationship Manager), Mr. Rajat
Anandani (Relationship Manager), Mr. Rajat Gupta (Relationship
Manager) Mrs. Ruchika Pal (Relationship manager), Mr. Ashish Gulati
(Relationship manager), Mr. Amrish Tiwari (Broker) and Mr. Vibhu
Sharma (operations) for the completion of the project work.

I would also like to acknowledge to my sincere gratitude to the Director of
my institute MS Sapna Popli and my project guide MS Shipra Jain for
helping me in this project work.

I am thankful to all of my friends and batch mates for their help in
completing this project work. Finally, I am thankful to my entire family
members for their great support and encouragement.



Table of Content


S no. Content Page no.
1 Declaration 4
2 Executive Summary 5
3 Introduction 7
4 Wealth Management 9
5 Significance of Wealth
Management
16
6 Aditya Birla Group 18
7 Aditya Birla Money Mart Ltd. 22
8 Employee hierarchy at ABM 28
9 Financial planning 29
10 Research problem 39
11 SPSS Analysis 40
12 Conclusion 46
13 Annexure 1 47



Declaration


I ,MUDIT MALPANI, Roll No. 12/311, student of SHRI RAM
COLLEGE OF COMMERECE,DELHI UNIVERSITY, hereby
Declare that the project report on A STUDY ON ADITYA
BIRLA MONEY WITH SPECIAL REFERANCE TO
BEHAVIOUR OF HNI CLIENTS TOWARDS WEALTH
MANAGEMENT INDUSTRY at ADITYA BIRLA MONEY
MART LTD is an original and authenticated work done by me.

I further declare that it has not been submitted elsewhere by
any other person in any of the institutes for the award of any
degree or diploma.


Name of the student: MUDIT MALPANI
Date: Jan 31,2014










EXECUTIVE SUMMARY

The purpose of this training was to have practical experience of
working within the organization, in the field of finance and
Marketing to have exposure to the important management
practices.

While writing this report the language has been keep simple and
the entire discussion has been logical and has coherent outlines.
The main motto of the project work was A STUDY ON ADITYA
BIRLA MONEY WITH SPECIAL REFERANCE TO
BEHAVIOUR OF HNI CLIENTS TOWARDS WEALTH
MANAGEMENT INDUSTRY

Its very important to do fundamental analysis of the sector and
the particular company in which we want to invest our hard
earned money. Main motive behind making any investment is to
earn good returns on the investment without taking much risk.
In order to achieve this we should know the basic fundamentals
of the company.
This project analyzes the varying perceptions of the HNI and
Ultra HNI Clients who invest their hard earned money into
different securities available with the help of the fund managers.

It includes thorough market Research in various plans of Aditya
Birla Money Mart Ltd. and in detail Consumer (Satisfaction)
Responses Analysis, by surveying number of consumers.
This project undertaken by me at ABMML was mainly to
understand about investment avenues like equity, mutual funds,
real estate, commodities significance among the financial
institutions and how to sell these financial services to the High
Net Worth Individuals by taking an appointments with them
and telling about the company as in who the company is really
and what it does.
The work done there was a pure sales job and required good
conversation skills and hard work as to tap HNIs is a very
difficult job and giving business every month is very important
for the employee working as an Relationship Manager.
In brief, I performed my project under the guidance and
supervision of ABMML, where I learnt effective marketing skills
Financial Analysis and Portfolio Management.















INTRODUCTION

Wealth Management is a service provided by financial
institutions to help High Net worth Individuals protect and grow
their wealth. This advanced investment advisory discipline
involves providing a diverse range of services, such as financial
planning and investment management, tax planning and cash
flow and debt management, based on client requirements.

There are two aspects to the wealth management process;
protecting assets from creditors, market crashes or slowdowns,
taxes, lawsuits and other unexpected events, and growing asset
values through methods that actively manages risk and reward
profiling to clients needs.

Wealth Management help people determine their monetary
goals and development actionable strategies that could help
them realize their goals. It also defends their finances against
risk. Wealth management is a services designed specifically for
High net worth individual. The threshold for high net worth
varies by country and institution, but the most common
definition is individuals who have more than US $1 million in
assets, not including their home. Some HNIs have done well in
growing their assets from a low base to their current levels, and
may feel that they can continue to manage their own portfolios.
However, as a persons wealth grow and/or the markets get more
challenging, it becomes increasingly difficult to realize the
expected returns.

With greater wealth comes greater investment options as well as
more complex risks and threats in terms of legal regulations,
taxation issues and opportunities for loss. The level of fear or
even outright panic that can be experienced grows with the size
of the investment involves. Greater diversification is needed than
its earlier stages of investing. This is where independent
financial adviser or large corporate entities help their clients
through professional management.

Wealth Management Services

Wealth management offers the following services:
Investment planning: Assists you in investing your money
into various investment markets, keeping in mind your
investment goals.
Insurance planning: Assists you in selecting from various
types of insurance options and captive insurance
companies.
Retirement planning: is critical to understand how much
funds you require in your old age.
Asset protection: begins with your financial advisor trying
to understand your preferred lifestyle and then helping you
deal with threats, such as taxes, volatility, inflation,
creditors and lawsuits, to maintaining this lifestyle.
Tax planning: Helps in minimizing tax returns. This might
include planning for charity, supporting your favorite
causes while also receiving tax benefits.
Estate planning: Helps in protecting you and your estate
from creditors, lawsuits and taxes. This service is critical for
every person whose net worth is high.
Business planning: This service aims at optimizing the tax
free advantages of running your own business.
Business succession planning: Assists in planning for the
inevitable to maximize returns.
Wealth transfer: helps you pass on your wealth to your
dependents.



Benefits of Wealth managements

Wealth management helps in:
Reducing taxes associates with income, capital gains and
estate.
Protecting assets from misjudgments and creditors.
Improving yields with more diversification and less risk.
Managing liabilities such as mortgages and college
funding.

Market Picture

Indias GDP grew at an annual growth rate of 8% in 2011 and has
a strong growth outlook. This makes the country an attractive
investment location for wealth management firms. India has the
main components that comprise a high-growth wealth
management market, including: a very large and young affluent
customer base, an improving wealth situation among global
Indians, a goal to more tightly regulate financial services by the
Indian government, and an increasing share of organized
companies compared to the unorganized workforce. India
currently has the fourth-largest number of HNWIs in the Asia-
Pacific region, after Japan, China and Australia. There were over
250,000 HNWIs in India, which cumulatively owned assets that
valued over US$1 trillion in 2011. The volume of HNWIs in India
increased at a compound annual growth rate (CAGR) of 7.20%
during the review period (20072011), while the total HNWI
wealth increased in value at a CAGR of 2.47%



The Wealth Landscape

The wealth management marketplace is evolving with the
expansion of an affluent client pool and increased competition
created through mergers, acquisitions and the introduction of
non-traditional players. Wealth managers are setting business
goals that require innovative technology solutions to help
increase sales, reduce costs, retain existing clients and attract
new ones. They are increasingly coordinating processes around
their customers. They have long since realized the need to
carefully evaluate and quickly deploy the right technology
solutions to garner competitive advantage in the market. The
considerations to create or strengthen a customer centric model
are complex, but most firms have recognized that long-term
success is determined by an organizations ability to deliver
customer centric products and services. Wealthy individuals
have multiple and complex financial needs. Banks geared to
meet their needs build long term relationships in which advice,
as opposed to products and transactions, is the focus. These
banks establish multiple touch points with clients and typically
benefit from enduring client loyalty and their predisposition
towards referrals to prospective clients. The primary
differentiators are advisory capabilities, product breadth, and
facilitation of customer ease and convenience.

Expanding the wealth management canvas

The spectrum of offerings is spreading and the scope of
services is widening significantly. A quick glimpse reveals:
Delivery channels: Anywhere and anytime through branch/
call center / online / POS / PDA
Personalized services: Advisory services, relationship
managers and financial planning experts to manage accounts
and plan financial goals
Investment tools for customers and their financial planners to
manage wealth: Analyze portfolio, rebalance portfolio against
model portfolio, portfolio simulation and what-if tools
Product types: Traditional banking, traditional investment
products and alternate investments
Straight Through Processing: End-to-end transaction
processing for investments
Tax planning: Country-specific tax and social security
One-stop financial shop: Interface with market data vendors,
banks, depositories, clearing houses, custodians and
brokerage houses
Concierge services: Lifestyle related value-added services
Customized views and reports: Portfolio specific or across
portfolios
Consolidated view: Complete financial picture in one screen
Strict adherence: Financial regulation, compliance and other
country-specific mandates
Secure and trusted environment: Data storage

Increasing focus on advisory services

Private banking and wealth management customers are turning
cautious with their investments as they seek better service
providers. The quality of service, reporting and investment
advice remains some of the important selection criteria for
customers. Know all advisors, offering advice across different
product types, suggesting unique product bundling, predicting
trends in the local and as well as global markets and suggesting
investment protection mechanism, are key to the success of
wealth management services, today. With the frequent highs
and lows in the markets, there is an apparent disconnect
between advisors and customers. Advisors are turning towards
fact-based analysis and detailed case studies to bridge the gap.
However, it would be pertinent to note that there is also a
growing trend towards Do-It-Yourself (DIY) services, where
knowledgeable customers are not fully dependent on the
advisory services provided by the bank. To provide such high
levels of service, banks are seeking assistance from systems that
offer a holistic view of customer relationship across assets and
liabilities, to tailor appropriate investment solutions.

Share of the pie

Wealth management clients are demanding comprehensive and
tailored services, with bespoke investment options. They are also
keen to maintain relationships with multiple banks, to compare
offerings and opt for the best. Banks are sparing no efforts to
strategically transform their product offerings and services,
while revamping their technology infrastructure to differentiate
themselves from competition. The wealth management space is
now being catered to by different types of firms including
brokers, private banks, retail banks and insurance houses, and
all of them are vying for the same
clients - the booming mass affluent segment and the high net
worth segment. Wealth management firms are making strategic
investments to differentiate themselves in the eyes of existing
and would-be high net worth and ultra-high net worth clients.
Insurance firms, brokerage service firms and retail banks are
investing heavily on the advisor
Centric model and each one is trying to be the chosen wealth
manager for the retirement segment as well as for the younger
generations. This has resulted in direct competition in a space
dominated, till recently by private banks and trusts. As a result,
each of these players is looking at how best to differentiate its
offerings. Clearly, then, as wealth management firms
increasingly compete for the same high net worth clients, and
clients themselves become more demanding, the pressure is on
firms to understand the essence of client needs in existing and
growth markets, even if they have already developed an accurate
understanding of high net worth individuals in their established
markets. Without this insight, firms will find it difficult to
Develop an attractive proposition. As a result, banks are moving
away from the conventional pure product focus and focusing on
total solutions that are completely oriented to client needs.

Asset allocations, product offerings and
innovations

The diverging investment environment in the two halves of 2007
helped define high net worth asset allocation strategies. Based
on steady market returns from 2006, asset allocations of high net
worth individuals were biased heavily on riskier asset classes.
However, onwards the end of 2007 and into the middle of 2008,
the turmoil in the financial markets has forced investors to shift
towards safer, less volatile asset classes like cash deposits and
fixed income. Key trends in high net worth asset allocation
strategies include:
Cash deposits and fixed-income securities seeing a jump in
asset allocations and currently accounting for 25% of the
portfolio.
Equity holdings remaining more or less constant but seeing an
increasing trend towards private equity over public equity.
Percentage of allocation to alternate investments and real
estate going down significantly.

Rapid changes in asset allocation strategies based on a dynamic
market place have resulted in banks reviewing their product
offerings and offering innovations on current products, while
trying to move client holdings to safer investments. Banks have
realized that product range and features are key differentiators
in todays fiercely competitive and largely unpredictable market.
The manufacture of products is not every banks cup of tea and
the gap in product offering is catered to by distributing
products originating from other issuers. While manufacturing
products is definitely the way forward, distribution income
continues to be a key revenue stream. The investment domain
spans across a wide range of products and there is a definite shift
from traditional investments in funds, equities and fixed income
to alternate investments like structured products, real estate,
private equity and hedge funds. Banks have also realized the
benefits of innovation in terms of product bundling and
utilization of customers sleeping assets. Loan products bundled
with insurance, margin lending, self funding installments to gain
geared share exposure, and bundling of banking and investment
products are some interesting products on showcase.

The future lies in the current trends

Mass affluent and high net worth client segments will
continue to grow their wealth but at the same time look at
more risk mitigated
Strategies
Acquiring and retaining clients and their assets with robust
client servicing are the key challenges for service providers
Service providers have determined the criteria for success
but believe that adequate technology tools are still not
available
Service providers are convinced that they need flexible
service delivery models
IT strategy should evolve around the service delivery
models
Service providers are taking a holistic view of their
technology infrastructure moving away from the product
silo approach.

Ultimately, the greatest success will be realized by those banks
that comprehensively understand their clients. They will be able
to leverage existing strengths to transform and adapt their
service delivery and technology to cater effectively to client
needs in their target growth markets. Without doubt,
technology is an important
Enabler in delivering efficient actionable advice, but it is only a
supporting tool in the client-to advisor relationship, which plays
a key role in managing the institutions customers. Other factors
contributing to the success of a wealth management strategy
include the quality of advisors, the business model,
organizational structure, customer segmentation and diversity of
offerings.

Significance of wealth management

Wealth management is a highly profitable and attractive
business, either on its own or as part of a more diversified
financial enterprise. It uses relatively little capital, it does not
have the tail risk of other banking businesses like dealing or
lending, the base of global wealth is growing, and it generates
remarkable pre-tax margins of some 30-40% on the revenue base
and perhaps 40 basis points on assets managed. Many clients are
locked into the provider due to trust deeds, and an ageing
population may be looking for a new home for their wealth.
On the other hand, there is a high degree of polarization in
profitability between business segments and individual
firms. A McKinsey & Co. study notes that one third of its
broad sample of European firms experienced net funds
outflows in the down year of 2008, while some 45% were
net losers in the recovery year of 2009. Margins also differ
widely between offshore and on-shore banking and
between the units of global banking institutions. Finally,
margins differ widely among geographic and product
markets.
Market volatility can create violent shifts in profitability.
Whether the brokerage or ad valorem fee models are used
as the basis for revenue generation, swings in market prices
in particular for equities can create substantial shifts in
profitability. Thus the meltdown of markets in 2008 was
followed by an almost equal upward surge in 2009. But
with virtually no new funds inflows or cost adjustment, the
net impact as indicated in McKinseys research produced a
47% collapse in the overall European profit pool from the
peak boom year of 2007 to the recovery in 2009.
Growing the pool of managed funds is a major challenge.
While an estimated two thirds of the wealthy global
population is prepared to pay fees for wealth management,
there remains some $ 10 trillion in funds which are not. The
total net new funds inflow for the sector has been nominal
for the past few years. And the industry is highly
concentrated, with the top 10 global providers holding an
estimated 52% of the total market and the top 20 over 80%.
Creating and capturing product trends has become
increasingly difficult. Product innovation has increasingly
become a critical success factor. In Europe, for example,
research by Fitch Ratings indicates that 80% of mutual
fund providers have experienced zero net sales in recent
years. Demand has moved massively between products, and
only a handful of providers have been able to capture the
bulk of this demand.
Improving productivity and client service both provide
substantial challenges. Cost ratios have soared since 2007
as the fall in revenues has not been offset by increased
productivity, and incremental costs such as new regulation
directly impact the bottom line. As one of our interviewees
notes, Private banking hasnt been industrialized yet like
other banking businesses.



















ADITYA BIRLA GROUP

Aditya Birla Group is one of India's largest conglomerates with
US$ 35 billion presently headed by Mr. Kumar Mangalam Birla
and also claims to be the most international of the country's
major corporations. It was established in 19
th
century 1919 by
Ghanshyam Das Birla company acts as a holding company for
more than 72 manufacturing and services subsidiaries
throughout India and operates in 33 countries with more than
133,000 employees worldwide, the group has diversified business
interests and is dominant player in all the sectors in which it
operates such as: Viscose staple fiber, Metals, Cement, Viscose,
filament yarn, Branded apparel, Carbon black, Chemicals,
Fertilizers, Insulators, Financial services, Telecom, BPO, IT
services.
Organization
Aditya Birla Novo
Grasim Industries ltd
Hindalco Industries ltd
Ultra Tech Cement ltd
Aditya Birla Minacs Worldwide ltd
Aditya Birla Chemicals ltd
Utkal Alumina International ltd
Dahej Harbour & Infrastructure ltd
Aditya Birla Finance ltd
Aditya Birla Money
Aditya Birla Insurance Brokers
Aditya Birla Capital Advisors Pvt ltd
Idea Cellular ltd
Madura Fashion and Lifestyle
Essel Minning and Industries
Aditya Birla Group Power Projects

Aditya Birla Money Mart Ltd

Aditya Birla Money is a part of Aditya Birla Financial Services
Group headed by Mr. Sudhakar Ramasubramaniam ABMM is an
integrated financial services group, with a range of solutions.
Subsidiaries of Aditya Birla Financial Group are as follows:

1. Birla Sun Life Insurance
Complete suite of life insurance products
One of the leading insurance companies
2. Birla Sun Life Mutual Funds
Mutual Funds and PMS
5th largest AMC in India
3. Aditya Birla Capital Advisors
Private Equity
Well positioned to generate high returns through rigorous
selection of companies
4. Aditya Birla Finance
Lending Products for Private and Corporate Clients
5. Aditya Birla Money
Common brand for ABML and ABMML.
A leading Broking player

6. Equity, commodity, currency and derivatives
A range of 3rd party financial products
Wealth Management
Aditya Birla Money believes that individuals differ in their
investment needs depending on their financial goals, risk taking
ability and time horizon available to meet these goals. To cater
these different needs Aditya Birla Moneys solutions provide
individuals the flexibility to make investments based on ones
individual financial goals.

Vision

Aditya Birla Moneys goal is to be the premier wealth
management organization in the India, offering high quality
products, providing outstanding in services and attracting,
motivation and retaining talented individuals
Principles

Our most valuable assets are the trust and confidence of our
clients. In responding to their needs, we strive to provide them
with the highest quality products superior investment
performance and the best level of our industry.
BRIEF REVIEW OF ADITYA BIRLA MONEY

MONEY has fundamental significance in life of human being.

Aditya Birla Money Mart Limited
A wholly owned subsidiary of Aditya Birla Nuvo, an Aditya
Birla Group company
A premier wealth management & distribution company
that emphasizes on investment advisory and financial
planning
Product range includes mutual funds, life insurance and
other instruments like RBI Relief Bonds, bonds of public
financial institutions and initial public offerings of equity
and debt securities structured products
Direct presence through its own branches (47) and
additional reach through its network of Business Associates
(7800+) in over 35 cities
A trusted investor base of over 3.25 Lacs & AUM of
Rs.22000 Crs

Identification of Target Segment Any person who can invest
in various schemes of Aditya Birla become its market. But, it is
imperative on part of its marketing and sales department to
clearly define its TARGET market so that greater thrust can be
given to those lots of investor for achieving better results.
INVESTOR can be classified as follows:

High net worth individuals
Foreign institutional investor
Corporate houses
Government institution
Retail investor
As target market for Aditya Birla Money is High Networth
Individuals, it is important for all its employees to understand
hidden or unhidden needs of its target market.
Managing investments in equities requires time, knowledge,
experience and constant monitoring of stock market. Those who
need an expert to help to manage their investments.

Products offered by Aditya Birla Money Mart

Mutual funds:
A Mutual Fund is a body corporate registered with SEBI
(Securities Exchange Board of India) that pools money from
individuals/corporate investors and invests the same in a
variety of different financial instruments or securities such
as equity shares, Government securities, Bonds, debentures
etc. Mutual funds can thus be considered as financial
intermediaries in the investment business that collect funds
from the public and invest on behalf of the investors.
Mutual funds issue units to the investors. The appreciation
of the portfolio or securities in which the mutual fund has
invested the money leads to an appreciation in the value of
the units held by investors. The investment objectives
outlined by a Mutual Fund in its prospectus are binding on
the Mutual Fund scheme. The investment objectives specify
the class of securities a Mutual Fund can invest in. Mutual
Funds invest in various asset classes like equity, bonds,
debentures, commercial paper and government securities.
The schemes offered by mutual funds vary from fund to
fund. Some are pure equity schemes; others are a mix of
equity and bonds. Investors are also given the option of
getting dividends, which are declared periodically by the
mutual fund, or to participate only in the capital
appreciation of the scheme

Equities:
Equity trading is the buying and selling of company stock
shares. Shares in large publicly-traded companies are
bought and sold through one of the major stock exchanges,
such as the Bombay Stock Exchange, National Stock
Exchange, which serve as managed auctions for stock
trades. Share or stock is a document issued by a company,
which entitles its holder to be one of the owners of the
company. A share is issued by a company or can be
purchased from the stock market.
Share market where dealing of securities is done is known
as share market. There are two ways in which investors gets
share from market:
Primary market: markets in which new securities are
issued are known as primary market. This is part of
the financial market where enterprises issue their new
shares and bonds. It is characterized by being the only
moment when the enterprise received money in
exchange for selling its financial assets.
Secondary Market: Market in which existing
securities are dealt is known as secondary market. The
market where securities are traded after, they are
initially offered in the primary market. Most trading is
done in the secondary market. The Stock Market is an
invisible market that trades in stocks of various
companies belonging to both the public and private
sectors. The Indian Stock Market is often referred to
as the Share Market since it deals primarily with
shares of various companies. A Stock Exchange is a
place where the stocks are listed and traded. Such
exchanges may be a corporation or mutual
organization which specializes in the business of
introducing the sellers with the buyers of stocks and
securities. The Indian Stock Market in India comprises
of two stock exchanges:
Bombay Stock Exchange (BSE)
National Stock Exchange (NSE)

BOMBAY STOCK EXCHANGE (BSE)
The Bombay Stock Exchange (BSE) was established in 1875.The
BSE India Stock Exchange serves as the most important for
companies to raise money. The chief function of the Stock
Market of India is to help raise money as capital for the growth
and expansion of various private and public sector enterprises.
Besides, the Stock Market of India provides able assistance to the
individual investors through daily updates on current position of
the stocks of the respective companies that are enlisted in the
Stock Index in which the movement of prices in a section of the
market are captured in price indices. The popular acronym for
Stock Index is Sensitive index or sensex. Moreover, the liquidity
provided by the exchange enables the investors to sell securities
owned by them easily and quickly. Hence a person, who is
subjected to sudden dearth of funds, can immediately sell his
shares for cash in India Stock Market. The BSE Sensex, also
known as BSE 30 is a widely used market index not only in
India but across Asia. In terms of volume of transactions, it is
ranked among the top five stock exchanges in the world.

NATIONAL STOCK EXCHANGE (NSE)
The National Stock Exchange of India Ltd. (NSE), set up in the
year 1993, is today the largest stock exchange in India and a
preferred exchange for trading in equity, debt and derivatives
instruments by investors. NSE has set up a sophisticated
electronic trading, clearing and settlement platform and its
infrastructure serves as a role model for the securities industry.
The standards set by NSE in terms of market practices; products
and technology have become industry benchmarks and are being
replicated by many other market participants. NSE provides a
screen-based automated trading system with a high degree of
transparency and equal access to investors irrespective of
geographical location. The high level of information
dissemination through the on-line system has helped in
integrating retail investors across the nation. The exchange has a
network in more than 350 cities and its trading members are
connected to the central servers of the exchange in Mumbai
through a sophisticated telecommunication network comprising
of over 2500 VSATs. NSE has around 850 trading members and
provides trading in equity shares and debt securities. Besides
this, NSE provides trading in various derivative products such as
index futures, index options, stock futures, stock options and
interest rate futures. In addition to these organizations there are
other organizations highlighting on the share trading in the
Indian Stock Market are:

Commodities: Do you think gold prices will go up further?
Are you sure that crude oil prices are going to fall? Have you
heard that the soya crop this year is bad and will result in
soya prices going up? If you believe that these predictions
have a good chance of coming true and are willing to bet
some money on them, you could try your hand at playing
the commodity futures market. A commodity is a basic
good representing a monetary value. Commodities are most
often used as inputs in the production of other goods or
services. With the advent of new online exchange,
commodities can now be traded in futures markets. When
they are traded on an exchange, Commodities must also
meet specified minimum standards known as basic grade.


Types of Commodities
Precious Metals : Gold and Silver
Base Metals : Copper, Zinc , Steel and Aluminum
Energy : Crude Oil, Brent Crude and Natural Gas
Pulses : Chana , Urad and Tur
Spices : Black Pepper, Jeera, Turmeric , Red Chili
Others : Guar Complex, Soy Complex, Wheat and Sugar

4) Bonds: Bonds refer to debt instruments bearing interest on
maturity. In simple terms, organizations may borrow funds by
issuing debt securities named bonds, having a fixed maturity
period (more than one year) and pay a specified rate of interest
(coupon rate) on the principal amount to the holders It is a fixed
income (debt) instrument issued for a period of more than one
year with the purpose of raising capital. The central or state
government, corporations and similar institutions sell bonds. A
bond is generally a promise to repay the principal along with a
fixed rate of interest on a specified date, called the Maturity
Date.

5) Portfolio Management Services (PMS): Portfolio
management service (PMS) is a type of professional service
offered by portfolio managers to their client to help them in
managing their money in less time. Portfolio managers manage
the stocks, bonds, and mutual funds of clients considering their
personal investment goals and risk preferences. In addition to
money, the portfolio managers manage the portfolio of stocks,
bonds, and mutual funds. Successful investing in Capital
Markets demands ever more time and expertise. Investment
Management is an art and a science in itself. Portfolio
Management Services (PMS) is one such service that is fast
gaining eminence as an investment avenue of choice for High
Net worth Investors (HNI). PMS is a sophisticated investment
vehicle that offers a range of specialized investment strategies to
capitalize on opportunities in the market. The Portfolio
Management Service combined with competent fund
management, dedicated research and technology, ensures a
rewarding experience for its clients. India info line PMS brings
with it years of experience, expertise, research and the backing of
India's leading stock broking house. At Angel, experienced
portfolio management is the difference. It will advise you on a
suitable product based on factors such as your investment
horizon, return expectations and risk tolerance.

6) Loan: A loan is a type of debt. Like all debt instruments, a
loan entails the redistribution of financial assets over time,
between the lender and the borrower. In a loan, the borrower
initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay
an equal amount of money to the lender at a later time.
Typically, the money is paid back in regular instalments, or
partial repayments; in an annuity, each instalment is the same
amount. The loan is generally provided at a cost, referred to as
interest on the debt, which provides an incentive for the lender
to engage in the loan. In a legal loan, each of these obligations
and restrictions is enforced by contract, which can also place the
borrower under additional restrictions known as loan covenants.
Acting as a provider of loans is one of the principal tasks for
financial institutions. For other institutions, issuing of debt
contracts such as bonds is a typical source of funding.

7) Insurance: Insurance is a basic form of risk management
which provides protection against possible loss to life or physical
assets. A person who seeks protection against such loss is termed
as insured, and the company that promises to honor the claim,
in case such loss is actually incurred by the insured, is termed as
Insurer. In order to get the insurance, the insured is required to
pay to the insurance company (i.e. the insurer) a certain amount,
termed as premium, on a periodical basis (say monthly,
quarterly, annually, or even one-time).



Employee Hierarchy at ABM





Relationship Manager

Relationship Manager

Senior Relationship Manager

Area Manager

Area Manager

Regional Head

Zonal Head

Country Head








Aditya Birla Money Financial Planning




Introduction to Financial Advisors

Planning for a secure financial future is not easy. Yet
increasingly, individuals are in charge of their own financial
futures. Most are aware that planning is critical, yet dont the
have time or the expertise to develop a plan and make the
needed financial decisions. So there arises a need for
FINANCIAL ADVISORS to manage the individuals wealth
and the whole process of managing this wealth is known as
Wealth Management.
There are a number of financial advisors offering a diverse
portfolio of services to suit different financial requirements of
their clients. In order to accomplish the task, these companies
provide the assistance of professional financial advisors. These
financial advisors help individuals or corporate manage their
wealth appropriately through:
1. Investment Solutions: The financial planner helps the
individuals diversify their portfolio through alternative
investment plans, mutual funds, equities, and even save
for retirement through annuities.

2. Financial Planning: Financial Planning is an exercise
aimed to ensure availability of right amount of money
at the right time to meet the individuals financial goals.
Financial planners plan individuals current
expenditures and save for future short-term or long-
term goals by analyzing different options available.

3. Retirement Planning: The financial planner guides their
clients in planning for their financial requirements after
retirement, by helping them identify goals, researching
and analyzing different opportunities to secure funds
and make investments to suits their needs.

4. Wealth Management: It is a comprehensive service to
optimize, protect and manage the financial well-being
of an individual, family or corporation. Its basic
definition covers advice on loans, investments and
insurance to give a broad picture of how individuals
should best deploy their financial resources. A broader
picture may include tax advice, estate planning,
business planning, charity foundations and other
financial needs.

Even though one of the most significant factors in our life is
the state of our personal finances, we rarely spend time on
managing them since unlike businesses. The reason being, we
are not accountable to any one for our personal financial goals
and results. As a result we tend to get careless in our financial
matters. I know we all understand the importance of savings
but let us not get confused between savings and investment.
Mere savings (putting aside a portion of earnings) do not
insure or guarantee achievement of future financial goals. It is
important to save but more important is to invest your
money. By merely stashing away money into that
neighbourhood bank's savings account, you are neither
making any more money, nor preserving its value. The
inflation rate at around 4-5 per cent p.a. in excess of your
bank savings account rate at 3.5 per cent p.a. mercilessly
erodes your wealth to that extent. The purchasing power of
rupee keeps depreciating. So, to fight against such
depreciation one has to invest the money saved in assets that
will help it work for you and earn more than the erosion in
value through inflation over a period of time. That's just one
of the primary reasons why each individual should invest.
Another more definitive reason is the 'Power of
Compounding'. Put simply, it means that "Interest on
Interest is Interesting". Let me explain this by means of a
simple example.

Financial Planner (Wealth Planner / Financial Advisor):
The financial planner helps identify various taxable and non-
taxable investments. This is not a comprehensive list of
services. They may differ from one financial management
company to another. One can select the services according to
their requirements, be it personal or professional.
A financial planner work begins with a consultation with the
client, from whom the planner obtains information on the
clients finances and financial goals. The planner then
develops a comprehensive financial plan that identifies
problem areas, makes recommendations for improvement,
and selects appropriate investments compatible with the
clients goals, attitude toward risk, and expectation or need for
a return on the investment. Financial planners usually meet
with established clients to update them on potential
investments and to determine whether the clients have been
through any life changessuch as marriage, disability, or
retirementthat might affect their financial goals.
Finding clients and building a customer base is one of the
most important of a financial planners job, because referrals
from satisfied clients are an important source of new business.
Many planners also contact potential clients by giving
seminars or lectures or meet clients through business and
social contacts.
1. Need for a financial planner:

Holistic in outlook: CFPs consider all circumstances,
family needs, goals, values, and aspirations, while
making recommendations.
Professionals: CFPs protect privacy, strive to maintain
the highest ethical standards and continually enhance
skills and credentials through continuing education.
Educational in nature: CFPs guide one through options
and explain the clearly to help make the best choices.
Committed to success: Holistic financial planning is a
process, not an event, and commit to adjusting plan as
life goals change.

2. Role of Financial Planners
a) Defining your Goals - A planner will take note of and
record all your financial goals. You save for a variety of
reasons: to buy a house and a car, to educate your
children, to set them up in business, to get them
married, to go on vacations, and, finally, to give
yourself a comfortable life in retirement. But not all of
us get around to defining what comfortable
retirement means or good education means in money
terms. The planner will help you work out the money
value for each of your goals. You might want Rs.30
lakh for a house today, Rs.5 lakh for a car next year,
Rs.10 lakh for your childs education in 10 years, Rs.5
lakh for his marriage in 15 years and Rs.50 lakh for
your retirement in 20 years. Additionally, youll set
aside money for contingenciesmedical and other
emergenciesall your life, perhaps in cash or virtually
as liquid. You also need insurance for yourself, your
family and your property.
b) Saving for them - Once these goals are written down,
you can clearly see what you need to save today to
meet these goals. The concept of savings changes
from something thats left over to something that
you target every month. The planner helps with your
budgeting by making you write down your income
and expenses in great detail. He helps you rationalize
wasteful expenses and establish a system of generating
surpluses every month. Once you see the magnitude
of your investment goals and the need to save
properly, the desire for the latest in everything
diminishes. In other words, planning is about creating
wealthand managing it efficiently.

c) Covering Risk - The planner then assesses your
insurance needs, which varies from person to person
and from age to age. As a young bachelor with no
dependants, youll need disability insurance rather
more than life insurance, but the minute you get
married and you have a stay-at-home wife whom you
support, you need life insurance as well. When the
kids come along and your old parents too become
your dependants, the outlay on your life insurance will
have to increase, as will that on disability. The planner
will help you identify your insurance needs, quantify
them and then suggest policy options.

d) Planning for Retirement - The planner then looks at
your retirement needs and plans for the time when
youll no longer be earning. Your contributions to your
EPF and PPF accounts will, of course, help you on that
countprovided youve been disciplined and not made
withdrawals from these accounts halfway through.

A planner will help you quantify in money terms the
comfortable retirement you dream of. Hell then
work out how much you need to save every month
and at what rate it needs to grow to hit the target.
More important, the planner will work with you to
keep your short-term financial needs in check so that
you dont touch your retirement funds at all. His job is
to make you understand that retirement funds are
only for the future, when you have no other source of
income, and that dipping into it prematurely is very
risky.
e) Making It Happen - The planner has taken so long just
to establish what you want out of life in money terms;
even now, the actual investment is two steps away.
The planner will now assess your risk profile. This is
just a way to see what level of risk youre comfortable
with. It would depend on your age and your family
circumstances. For example, a person in his mid-30s
can take far greater risk than a man in his 60s. Based
on the goals, the savings and the risk profile, the
planner will then chart an asset allocation strategy
that is, help you decide the percentage of your total
portfolio you want to put in different instruments:
property, equity, debt, or funds that invest in these
assets.

f) Total Financial Solutions - A planner has a big picture
vision and is able to see the inter-linkages of all your
goals, expenses and investments. For example, if a
person is earning well and has a non-working wife
with two kids, theres no problem if he takes a home
loan and a car loan. But what if he dies next year? His
life insurance will take care of his familys living
expenses, but how will his family pay off the loans? A
planner would make provisions for such an
eventuality and increase the insurance amount to
cover the debt as well. The planner will also help you
figure out what impact reducing a Rs.15,000 home
loan EMI to Rs.10,000 would have on your retirement
kitty. And what impact downgrading a Corsa to a
Santro would have on your childs education corpus.

g) The Balancing Act - A planners responsibility doesnt,
however, end with your buying a product. He still has
to hand-hold you, for instance, when the stock market
tanks or tops. Imprudent investors tend to buy when
the market is high and sell in a slump. The planner
educates you on the merits of a long-term approach
and regular investing and helps you rebalance your
portfolio. For example, you may have agreed on a
60:40 equity-debt allocation, but a steady rise in the
stock market over a couple of years, which may
increase the value of your stocks portfolio, may skew
your asset mix to 70:30 in favour of equity. That high
an exposure to equity may not be good for you, but
left to yourself, you might get carried away and
withdraw completely from debt and hike the equity
component of your portfolio. The planner will step in
to remind you of your risk profile, your investment
goals and your long-term approach. In rising markets,
financial planners do the work of circuit-breakers in
the stock market: they temper their clients unrealistic
expectations and keep them on track.

Financial Planning

Financial planning is the process of charting out the money
course of your life. Its like having a financial roadmap that
guides your every step till you pass on the baton to the next
generation. In other words, it is a process in which an
individual sets long-term financial goals through investments,
tax planning, asset allocation, risk management, retirement
planning and estate planning. Most of us approach our
financial lives like the disorganized traveller who gets to his
destination eventually and perhaps even enjoys the rough
ride. We think we have a clear roadmap in mind, but our
financial lives are marked by ad-hoc decisions and
capitulation to the temptations of the flavours of the financial
season.
1. Benefits of Financial Planning

A sound and meticulous Financial Planning will have
following enumerated benefits:
Sophisticated financial advice to cope with changing life
situation
Non-biased opinion on ones insurance needs
Help dealing with ones retirement planning
Optimum asset allocation and investment strategy
formulation
Efficient tax strategy and estate planning

2. Scope of Financial Planning

Sometimes it so happens that when one consulted with a
financial advisor in the past he felt that he was asked to buy
something he didnt fully understand. Maybe he felt that
products were recommended without consideration for his
overall financial situation. In cases like this,
comprehensive, holistic, fee-only financial planning
eliminates such concerns. A person receives objective
advice targeted to his needs and goals.
One of the myths regarding financial planning is that only
rich individuals and HNIs can undertake this. This
perception exists because most players in the market target
these people, as they are very profitable customers.
However, anyone can use financial planning. In fact,
individuals should use effective financial planning to build
their wealth over the years.

There are financial planners who service small individuals too.
However, individuals need to remember the financial planners
charge for the services they render, so they should be ready to
pay for the advice.

A financial planning exercise ensures you get the benefit of a
customized portfolio that addresses your specific financial needs
and goals. At Aditya Birla Money, we map your needs, risk
appetite and expectations to create your individual, unique
portfolio:
Investment plan With a keen insight into your short- and
long term goals, we build a suitable asset allocation plan.
Armed with this plan, your Relationship Manager then
works closely with you to rebalance your portfolio.

Portfolio construction Our dedicated Wealth Manager
will take you through every stage of the investment process,
always ensuring that the health of your portfolio is never
compromised. We execute a tailor-made investment
strategy across the breadth of your investment portfolio,
maintaining complete confidentiality at all times.

Portfolio maintenance Your Wealth Manager will
proactively monitor the state of your portfolio, periodically
re-evaluating each account. This ensures that you get time
to react to market fluctuations. A carefully crafted
alternative investment strategy can be devised to capitalize
on changing market trends.

Portfolio review Your portfolio is periodically reviewed, so
that your current investment horizon can be smoothly
realigned to stay in line with the changes in your
investment needs, patterns and goals.





















Research Problem

This Research problem answers about the behaviour of HNIs and
gives the reasons responsible behind their investment it also
analyzes the varying perceptions of the HNI and Ultra HNI
Clients who invest their hard earned money into different
securities available with the help of the fund managers.
The project will throw light on the various factors leading to the
growth of high net worth individuals (HNIs) and the bright
future of wealth management. The outcome will help
Relationship managers is focusing the key factors at time of
interaction with the Prospects this will lead to high probability
in converting prospects into clients or investors
Scope and Importance
Wealth Management is concern with organizing once wealth in
the best possible manner, Its been found that in India there is
6% growth in no. of millionaires which means more wealth to be
managed so as to get benefited in future, wealth management
is not restricted to future benefit only it also gives tax shield till
the money is invested. This research will provide RMs with
better strategies of tabbing prospects or clients.
Methodology
The methodology Ill be using as per the suitability of this
problem will be FACTOR ANALYSIS for clubbing the similar
factors which are resulting similar responses.


Data Collection
Through Simple Random Sampling, randomly data of approx
150 prospects were taken and asked to respond through e-mails
and by visiting them personally, with the help of Likert scale
Questionnaire. Final size of respondents is 100.

# Annexure 1: Questionnaire

Limitation
The problem revolves around HNIs only it does not revel
any connection with any other class of society and it also
focus on individual which may or may not be the clients
in future this only tells about the psychology of HNIs
before investment, it also tells about their perception
towards the Wealth Management Industry.









Analysis of the research
Through exploratory research we Ive found that only 15 factors
are responsible behind the investment idea of HNIs and those
factors are:

Organizing your wealth
Disposable income
Improved savings
Future goals
Liabilities
Risk
Consistent return
Horizon
Market capitalization
Market trend of investors
Capital growth
Liquidity
Regular income
Tax saving
Sector specific growth




# Note: In the research analysis the factors are denoted by their
respective numbers like:
1 Organizing your wealth


Correlation Matrix




1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1
1.000 -.012 -.064 .230 -.002 -.135 -.032 -.002 -.022 -.040 .093 .138 -.035 .177 -.051
2 -.012 1.000 -.102 .024 .066 -.085 -.090 .139 .037 -.011 .019 -.014 -.077 .030 .114
3 -.064 -.102 1.000 -.002 -.072 .035 -.013 -.137 -.154 -.116 .118 .030 -.111 .026 -.152
4 .230 .024 -.002 1.000 -.038 -.061 -.139 -.092 .032 .011 -.034 -.025 -.083 .010 -.172
5 -.002 .066 -.072 -.038 1.000 -.235 .305 .126 -.037 -.009 -.066 -.004 .156 -.035 -.083
6 -.135 -.085 .035 -.061 -.235 1.000 -.129 .007 .033 .029 .002 .057 .014 .097 .081
7
-.032 -.090 -.013 -.139 .305 -.129 1.000 .181 -.102 -.215 -.124 -.022 .079 .180 -.042
8 -.002 .139 -.137 -.092 .126 .007 .181 1.000 -.107 -.158 -.244 .114 .122 .063 -.071
9 -.022 .037 -.154 .032 -.037 .033 -.102 -.107 1.000 .148 .031 .109 -.019 -.063 -.022
10 -.040 -.011 -.116 .011 -.009 .029 -.215 -.158 .148 1.000 .059 .173 -.055 -.067 .039
11 .093 .019 .118 -.034 -.066 .002 -.124 -.244 .031 .059 1.000 .112 .164 .031 .113
12 .138 -.014 .030 -.025 -.004 .057 -.022 .114 .109 .173 .112 1.000 .132 -.055 .008
13 -.035 -.077 -.111 -.083 .156 .014 .079 .122 -.019 -.055 .164 .132 1.000 .021 -.033
14
.177 .030 .026 .010 -.035 .097 .180 .063 -.063 -.067 .031 -.055 .021 1.000 .142
15

-.051 .114 -.152 -.172 -.083 .081 -.042 -.071 -.022 .039 .113 .008 -.033 .142 1.000

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .473
Bartlett's Test of
Sphericity
Approx. Chi-Square 107.504
Df 105
Sig. .414



Communalities

Initial Extraction
Organizing your wealth 1.000 .696
Disposable income 1.000 .768
Improved savings 1.000 .645
Future goals 1.000 .576
liabilities 1.000 .604
risk 1.000 .651
Consistent return 1.000 .638
horizon 1.000 .753
Market capitalization 1.000 .440
Market trend of investors 1.000 .465
Capital growth 1.000 .726
liquidity 1.000 .631
Regular income 1.000 .514
Tax saving 1.000 .680
Sector specific growth 1.000 .660
Extraction Method: Principal Component Analysis.







Total Variance Explained


Component
Initial Eigen values Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1
1.811 12.070 12.070 1.811 12.070 12.070
2 1.425 9.503 21.573 1.425 9.503 21.573
3
1.406 9.376 30.949 1.406 9.376 30.949
4
1.327 8.848 39.797 1.327 8.848 39.797
5
1.289 8.596 48.393 1.289 8.596 48.393
6 1.162 7.750 56.143 1.162 7.750 56.143
7 1.024 6.828 62.971 1.024 6.828 62.971
8
.953 6.352 69.323

9
.882 5.878 75.201

10
.824 5.490 80.692

11
.695 4.635 85.326

12
.635 4.234 89.560

13
.585 3.901 93.461

14
.534 3.560 97.021

15
.447 2.979 100.000

Extraction Method: Principal Component Analysis.
7 Component extracted





Component Matrix
Component
1 2 3 4 5 6 7
Organizing your wealth -.023 -.165 .526 .518 .320 .128 -.068
Disposable income .053 .240 .143 -.165 .501 -.234 .596
Improved savings -.108 -.540 -.242 .225 -.359 -.022 .322
Future goals -.182 -.397 .558 .041 .206 .171 -.035
Liabilities .561 .184 .310 -.029 -.217 -.323 -.080
Risk -.291 .108 -.511 .043 .045 .533 -.073
Consistent return .697 -.011 -.097 .149 -.090 -.081 -.325
Horizon .570 .241 .008 -.086 .169 .479 .323
Market capitalization -.311 .347 .268 -.198 -.026 .069 -.326
Market trend of
investors
-.447 .371 .223 -.147 -.106 -.030 -.209
Capital growth -.362 .144 -.015 .586 -.193 -.391 .201
Liquidity -.127 .423 .241 .333 -.240 .396 .230
Regular income .240 .416 .015 .372 -.372 .070 .041
Tax saving .166 -.057 -.200 .521 .489 .083 -.302
Sector specific growth
-.151 .394 -.391 .148 .441 -.330 -.058


Extraction Method: Principal Component
Analysis.

7 components extracted



Result
1 2 3 4 5 6 7
Liabilities Market
Capitalizatio
n
Organizin
g your
wealth
Capital
Growt
h
Tax
saving
Ris
k
Disposabl
e income
Consisten
t return
Market trend
of investors
Future
goals

Sector
specifi
c
growt
h

Improved
Savings
Horizon Liquidity


Regular
income


The research tool Factor Analysis shows that the above factors
are clubbed in their similar respective categories. This result says
that liability, consistent return and horizon give parallel
behavior of the HNIs, similarly Market capitalization, market
trend of investors, liquidity and regular income falls under one
roof.
This will help RMs in better interaction with clients and less
wastage of time with better persuasive tactics.
ANNEXURE: 1

Age of Respondent: [ ] Date:
Gender: [ ]


I prefer investment because it organises my Wealth:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

The degree of my investments depend on my disposable
income:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

The motto behind my investments is to increase my savings
over my expenditure:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree



I seek investments for fulfilment of the future financial goals
that I currently have and those that Ill make in my lifetime:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

I have a priority towards my liabilities and would compromise
my investments over them:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

I will look forward to invest in high-risk assets:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

In order to secure my financial needs I want to generate
consistent returns from my investment:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

My plan is to make and generate returns from investments
over a long horizon:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

While making investments in equity I will prefer stock of
large Market Capitalization companies:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

My investment decisions are largely influenced by market
trend i.e. investment route taken by other Investors:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

Capital Growth is the primary motive for me to make
investments:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

For me Investment is a mode of generating liquid assets that
are capable to meet any financial needs as and when required:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

Motive behind my investments is regular income:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

I prefer investments to get Tax Shield over my income:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree

Sector Specific Growth is a bait to my investments:
Strongly Disagree
Disagree
Neither agree nor disagree
Agree
Strongly Agree