Final report hema


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This was the final report before formatting as per the guidelines of Welingkar Business School. Same Project ''Investment Patterns of ITES employees''

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Final report hema

  2. 2. Page 2 of 88 CONTENTS PAGE Preface Research Design Introduction & Purpose Problem Statement (Reason for choosing this topic for study) Scope of the Study Executive Summary Literature Review Methodology Study Data Analysis and Interpretation Findings, Suggestions, & Conclusion Bibliography (References) Appendix Glossary Thanks Note (Acknowledgements)
  3. 3. Page 3 of 88 Introduction Introduction to ITES Industry The word ITES stands for Information Technology Enabled Services. What a layman can understand by the term is that any service which is given to the customer by virtue of IT can be classified under ITES. Another name for this industry is BPO (Business Process Outsourcing). Since most of the work which is worked on globally is from the clients of other countries, hence the word ‘’Outsourcing’’ is used. Any company which is based in a particular location A can outsource its in-house work to another company based in location B, and that concept is known as outsourcing. For e.g. AT&T has outsourced its call center division to Accenture, India. All the technical support is provided by Indian Nationals sitting in the Bangalore and Mumbai offices in India. Since over the years, many companies started outsourcing their in-house work within their own home counties to another companies, hence the word ITES became more popular. For e.g. Airtel has outsourced its call center and backend work to IBM. Airtel is an Indian company and has outsourced its business to IBM which is a USA based company; however the call centers are located in India. Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm. BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact centre services. Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service.
  4. 4. Page 4 of 88 Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. Benefits and limitations: An advantage of BPO is the way in which it helps to increase a company’s flexibility. However, several sources have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways. Outsourcing may provide a firm with increased flexibility in its resource management and may reduce response times to major environmental changes. Another way in which BPO contributes to a company’s flexibility is that a company is able to focus on its core competencies, without being burdened by the demands of bureaucratic restraints. Key employees are herewith released from performing non-core or administrative processes and can invest more time and energy in building the firm’s core businesses. The key lies in knowing which of the main value drivers to focus on – customer intimacy, product leadership, or operational excellence. Focusing more on one of these drivers may help a company create a competitive edge. A third way in which BPO increases organizational flexibility is by increasing the speed of business processes. Supply chain management with the effective use of supply chain partners and business process outsourcing increases the speed of several business processes, such as the throughput in the case of a manufacturing company. Finally, flexibility is seen as a stage in the organizational life cycle: A company can maintain growth goals while avoiding standard business bottlenecks. BPO therefore allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. It avoids a premature internal transition from its informal entrepreneurial phase to a more bureaucratic mode of operation. A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to
  5. 5. Page 5 of 88 amortize, may become outdated or turn out to be a poor match for the company over time. Although the above-mentioned arguments favor the view that BPO increases the flexibility of organizations, management needs to be careful with the implementation of it as there are issues, which work against these advantages. Among problems, which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility. Consequently, these challenges need to be considered before a company decides to engage in business process outsourcing. A further issue is that in many cases there is little that differentiates the BPO providers other than size. They often provide similar services, have similar geographic footprints, leverage similar technology stacks, and have similar Quality Improvement approaches. Threats: Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective. For example, security of North American or European company data is more difficult to maintain when accessed or controlled in the Sub-Continent. From a knowledge perspective, a changing attitude in employees, underestimation of running costs and the major risk of losing independence, outsourcing leads to a different relationship between an organization and its contractor. Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage outsourcing in a structured way, maximizing positive outcome, minimizing risks and avoiding any threats, a Business continuity management (BCM) model is set up. BCM consists of a set of steps, to successfully identify, manage and control the business processes that are, or can be outsourced. Another framework, more focused on the identification process of potential outsource-able Information Systems, identified as AHP, is explained.
  6. 6. Page 6 of 88 Importance of the Study/ Introduction: Savings and Investment: Savings are the excess of Income over expenditure for any economic unit. Thus: S=Y- E, where S is the savings, Y is the income and E is the expenditure. Secondly excess funds or surplus in profits or capital gains are also available for investment. Savings is abstaining from present consumption for a future use. Savings are something autonomous coming from households as a matter of habit. But bulk of the savings come for specific objectives like interest income, future needs, contingencies, precautionary purposes or growth in future wealth leading to rise in the standard of living etc. When people start saving they search for various investment options t invest their savings. During this process they consider various factors like risk, return, duration, liquidity, tax planning, hedge against inflation, safety etc. In earlier days the investment options available to investors were very limited like insurance, jewellery, fixed deposits, debentures, shares etc. But in the liberalized economy there are many investment options, which promise very high returns. After private players started operating in Insurance, there are many policies available which not only cover the risk, but they also promise high return with gook capital appreciation. You are already aware of the various economic activities. Individuals engage themselves in such activities to earn money. The money they earn is normally spent on meeting daily needs like buying vegetables, groceries, clothes, giving school fees, telephone bills etc. People also generally try to keep aside a part of their earnings to meet future needs like marriage of their sons and daughters, buying a house, health care, etc. You also find some people who use a part of their earning to deposit in banks or in buying shares, property or gold. By doing so, these people are also able to generate some extra earnings for themselves.
  7. 7. Page 7 of 88 Let us learn more about how people earn; how they spend; how they keep money for future needs and how they use their earnings to get some return. Objectives: After studying this project you will be able to: Explain the terms ‘income’ and ‘expenditure’; Identify various ‘sources of income’ and ‘avenues of expenditures’; Explain the concepts of ‘savings’ and ‘investment’; Recognize the need for ‘savings’ and ‘investment’; and Identify the avenues of ‘investment’. Income: As we know, individuals engage in one or the other occupations to earn their livelihood. For example, a person may be employed in Bank and draw salary, a person may engage in selling books and earn a profit, a doctor or a lawyer may do the private practice and get fees for their services. The earning from all these sources is called income. Sometimes we find people earn from more than one source. For example, a teacher can write books for schools and he gets some money from the publishers. If he is a singer, he can sing for All India Radio (AIR) for which AIR gives him some money. Thus, one individual can engage in different occupations to earn money. The earnings from different sources are collectively called as his total income. This total income in a month is called as his monthly income and in a year is annual income. Sources of Income: You learnt that people earn money from different sources. Some may earn from a single source and others may have multiple sources. Let us learn about the various sources from which people earn their income. Business: Individuals engaged in business earn income by way of profit. Employment: People who are in employment earn their income by way of salary or wages.
  8. 8. Page 8 of 88 Profession: You have seen doctors, lawyers and chartered accountants. They provide personal services of special nature and charge fees for their services. This fee is the source of income for professionals. Vocation: As we know vocation is the application of one’s special skill or knowledge to earn money. For example, a good cook can cook food at marriage parties and earn some income. A carpenter can make or repair furniture and earn income. Agriculture: When we cultivate land we produce crops, paddy, vegetables etc. All or a part of it can be sold which gives us a return. This earning is called agricultural income. Property: Normally owning land or a home is considered as owning property. This property can be given on rent or lease to someone for use and we get a return on it. Thus, it becomes a source of income for us. Other Income: People keep a part of their earning either in banks, post office or they can buy shares and debentures, government bonds etc. All these give them some return in the form of interest/dividend. These are also called their income. Expenditure: When we buy goods or products we pay money for them. Similarly when we avail of some services like consulting a doctor during illness or getting water and electricity for use, we also pay for them. Normally we pay for all these goods and services since we use them. Sometimes we present some gift items to our friends and relatives for their use. Besides this, we also spend money on charity and donation to the poor persons and also to the cyclone or earthquake victims. In these cases, we do not earn any money out of such spending. These are our expenditure. Sometimes we spend money and use it for other purposes to get some additional income. That spending is a type of expenditure through which we generate further income. This is called investment. To clarify the concepts further
  9. 9. Page 9 of 88 let us observe the activities of a housewife and a restaurant owner. Both of them buy vegetables. A housewife buys them for consumption of her family and the restaurant owner buys them to prepare different dishes and sells them at a profit. In the first case the housewife does not get any monetary return. Thus, it is expenditure for her. In the second case i.e., in case of restaurant owner, spending on vegetable can be termed as investment, because the spending on vegetables finally generates additional income for him. Thus, the term ‘Expenditure’ refers to spending of money on any item, which does not give any additional monetary income in return to the person who spends that amount. Avenues of Expenditure: Generally, most of us spend a major portion of our income on buying goods and services for daily consumption. Besides spending on goods and services there are also many other areas in which we spend money like expenditure on celebrations, on entertainment, charity and donation, etc. The different areas in which we spent our earnings are called avenues of expenditure. Let us learn in detail about all these avenues. Expenditure on Goods and Commodities: We may spend money on various types of goods and commodities needed for use in our daily living. These may be perishable goods like vegetables, milk, fish, etc. or may be consumer durables like television, radio, furniture etc. Expenditure on Services: We also spend money for availing of different types of services. It may be for availing banking services, postal services, transport services, communication services etc. Expenditure on Celebrations: In our daily life we find several occasions for celebration. It may be a birthday, an anniversary, a festival, a marriage ceremony etc. On such occasions we spend a lot of money. Expenditure on Entertainment: In our busy life we often feel like taking a break for some sort of enjoyment through entertainment progammes. This may include going to watch a movie or drama or dance or cricket match or even going for a picnic or tour.
  10. 10. Page 10 of 88 Expenditure on Charity and Donation: Sometimes people spend money by donating to individuals or institutions engaged in social services or charitable work. These are called expenditure on charity and donation. Expenditure on Health and Education: In a family people usually spend some money on health and education of their children. When individuals go for higher education it requires more money. Thus, money spent on health and education may be termed as expenditure. Other Expenditure: The modern age has paved newer avenues of expenditure for people. For example, now-a-days people go to a gymnasium to keep themselves physically fit, go to beauticians to take care of their body and beauty, surf the Internet to gather information and also send e-mails, etc. Savings: Ramesh and Suresh are working in a school. They had joined this school together and have been earning some amount of money for the last five years. Last month there was a training program on computers in their school and both of them participated in it. They liked computers so much that they decided to buy one each for their own use. Ramesh asked the school authority for a loan to buy the computer, as he did not have sufficient money with him. The school authority asked him to wait for at least two months to get the loan processed and sanctioned. Suresh had sufficient money with him and he went to the market and purchased a computer. Knowing this Ramesh asked Suresh, “Look, from where did you get this money?” Suresh said, “I got it from my savings”. Ramesh enquired, “What is savings?” Suresh answered, “See, every month I used to keep aside a portion of my income for future use. And over a period of five year this has become a substantial amount to enable me to buy a computer.”
  11. 11. Page 11 of 88 Thus, we find that savings refer to the amount of money, which is kept aside from the current income for future use. We may be able to keep aside this money either by reducing our expenditure or by increasing our income or by doing both. Investors are savers but all savers cannot be good investors, an investment is a science and an art. Savings are sometimes autonomous and sometimes induced by the incentives like fiscal concessions or income or capital appreciation. Savers come from all classes except in the case of the population who are below the poverty line. The growth of urbanization and literacy has activated the cult of investment. More recently, since the eighties the investment activity has become more popular with the change in the govt. policies towards liberalization and financial deregulation. The process of liberalization and privatization was accelerated by the govt. policy changes towards a market oriented economy, through economic and financial reforms started in July 1991. Need for Savings: Savings are essential not only for individuals, family or businessmen but it is also very much required for a nation. Growth is practically impossible without savings. Individuals save because of several reasons. Let us discuss why we all require savings. Savings help us to meet future requirements: We need money in future for various purposes like spending money on higher education, on marriages and other celebrations, owning some immovable assets like house, land, farms etc. With savings at hand we, can meet all these expenses. Savings help us to meet expenses during emergencies: There are events which are uncertain and may occur in future. All these events may require some amount of money to be spend, which we can have from our savings. For example, we may require money during emergencies like sudden illness, accidents, etc. Savings help us to raise our standard of living: Savings accumulated over a period of time become a substantial amount, which enables us to buy something, which is better, comfortable or even luxurious. For example,
  12. 12. Page 12 of 88 you can buy a vehicle of your own, home, good furniture; you can use generators/inverters at home to avoid power cut, etc. All these improve your standard of living. Savings help us to generate further income: We can use our savings or part of it in buying shares, debentures or bonds, in buying property and renting it out or even in keeping money in a bank for a fixed period. All of these can give us an assured return in terms of dividend, rent or interest. This is an additional income for us. Savings help the nation in its economic development: When we keep our savings in a bank or in a post office, we get interest in return. But have you ever thought what they do with our money? How do they generate more money from our savings? Actually they utilize our money for various productive purposes. For instance, banks may give our money to the business houses as loan and charge more interest from them. Similarly, government may use our savings in various industrial activities, by taking it from the post offices or banks. Thus, our savings help in development of business activities, which ultimately contributes to the overall economic development of the country. Impact on Inflation: All the investments lose in value due to inflation or rise in prices leading to depreciation of the rupee. When the rate of inflation or rise in prices leading to depreciation of the rupee. When the rate of inflation is about 10%, the real value of money is lost by 10% every year. The investors have therefore to protect themselves from this loss of real values of their assets by proper investment planning and by securing returns, higher than the inflation rate. Some investments give only income like bank deposits, Post Office certificates, company deposits etc. Some assets show capital appreciation if they are shares in companies or bullion, land and buildings. Some are safe and liquid, like the investments in government securities, bonds of P.S.U, etc. A few investments like Indira Vikas Patra are easily transferable and marketable. So also the shares and securities listed and traded on the stock exchanges. But all the above investments
  13. 13. Page 13 of 88 do not satisfy all the needs and objectives of investors, referred to later, including securing a hedge against inflation. All objectives of income, capital appreciation, safety, marketability and liquidity as also hedge against inflation can be secured only by proper investment in corporate securities. Tips on Saving: We have learnt that savings are required for every individual. Let us learn some tips so that we will be able to save. Keep a record of your total income and its sources: This is essential as you get to know when and how much you earn and to plan your expenditure accordingly. Keep a record of your current expenditure: As you know there are certain expenses which you have to incur regularly and the amount you spend is almost certain. For example, expenditure on food, tuition fee for children, electricity and water bill, expenses on newspaper, house rent, etc. These are your current expenditure. Once you know about these expenditures which you cannot avoid, you can plan for other expenses keeping current expenditure in mind. Plan your expenditure: There are certain expenses which do not occur regularly. For example buying a TV, refrigerator, washing machine, computer etc. To spend on these you have to make a priority list and then you can defer the expenditure, which is least important. For example, suppose you plan your expenditure on 25th December and fix your requirements as a refrigerator, a computer and a washing machine. You prioritized your requirements in the following order – washing machine, refrigerator, and computer. This is so because you find that a computer shall be most useful during the next academic session, a refrigerator shall be most useful during summer (next March) and washing machine is urgent as it is becoming difficult to wash cloth manually in winters. So naturally your will spend on the washing machine and defer your expenditure on the refrigerator for three months and the computer for six months. Cut down your expenditure: There are certain expenses which one may incur in an unplanned way. For example, suppose you have gone to Shimla
  14. 14. Page 14 of 88 on a tour in the month of March and got some winter clothes. You may use them at Shimla but coming back from Shimla you may not be requiring all those winter clothes. This sort of expenditure may be cut short. Try to generate additional income and don’t spend it. This is a very good way of savings. Whatever we earn from a regular source we can spend it on our livelihood. But the extra earnings that we make from other sources can be kept aside for future use. For example, suppose one of your articles is published in the newspaper or magazine and you are paid some money for that. You can keep aside this money for future use. Investment: We have already learnt that sometimes people spend some money on buying shares, bonds, properties etc. which give them some monetary return. Sometimes people also keep their savings or a part of it as a recurring or fixed deposit in the banks or post offices and earn interest on it. Similarly some people deposit their money in Mutual Funds, Public Provident Fund Account etc. some buy National Savings Certificates from the post office and some take Life Insurance Policies etc. All these give them some additional income. These types of expenditures are called investment. Thus, the term ‘investment’ refers to depositing or spending money on some items that generate additional income either immediately or in the future. For example, if you deposit money in Public Provident Fund Account it will give you some amount of return in the form of interest. So, this is your investment. Besides Public Provident Fund Account there are a number of other avenues in which you can invest your money. Let us learn the details about these avenues. Objectives of Investor: Income Appreciation of capital
  15. 15. Page 15 of 88 Safety Liquidity Hedge against inflation A method of tax planning The mix of these objectives may also depend on the time frame of his investment. Short-term/day to day trading gains Short term capital gain up to one year Long term appreciation more than 1 to 3 years. Investment preferences of public may be set out in terms of their savings for: Transaction purpose (for daily needs or regular payment? Precautionary purpose ( for contingencies or special needs) Speculation or asset purposes ( for capital gain or building of assets) Where to Invest: Deposits in Banks and Post Offices: These are the most common, popular, risk free and trustworthy investments. In banks and post offices individuals deposit their money in savings account, where they can withdraw the money whenever required. They can also deposit money for a fixed period on one-time basis or a recurring basis. All these investments are safe and give an assured return. There is something known as recurring deposits. That means in Banks we can open recurring deposit accounts, and every month/quarter we can deposit the fixed amount and the bank will give a fixed interest on that money which is usually higher than the regular interest rates in the banks.
  16. 16. Page 16 of 88 Other Schemes/Certificates of Bank, Post Office: Apart from deposits, the banks and post offices also offer various other schemes like Monthly Income Scheme, National Savings Scheme, Public Provident Fund, National Savings Certificates, Kissan Vikas Patra etc., which provide assured return and are risk free. Government Bonds: Sometimes government and semi-government organizations accept deposits from individuals for a fixed period and promise to pay a fixed amount after the stipulated period. These are in the form of bonds, which are also risk free and provide assured return. Life Insurance policies: Post offices, Life Insurance Corporation of India and other private sector life insurance companies insure the life of individuals for a specific amount for a specified period upon payment of a premium amount. The individual who is insured gets a good return on maturity of the policies. This is a very important form of investment. People should look if they are adequately covered. A person’s net worth plays a huge role in determining the amount of policy s/he should have. If a person’s earnings are high, then accordingly the life style changes. Hence individuals should ensure that they buy enough coverage so that if case of their unfortunate death, their family can survive well on that insurance money. UTI and other mutual funds schemes: There are some financial institutions (may be government, semi-government or private) which raise money from individuals and invest the collected amount in securities and deposits and thereby earn a good return. This return is then distributed among the investors as dividend. These types of investments are risky. It may give you very good return or it may also lead to losses. Corporate securities and deposits: There are companies which accept deposits from public for a fixed period. People can invest their savings in these companies. This is bit risky as your money goes into private hands. But if the company is good and a reputed one, you can get assured return. Similarly people sometime invest in buying shares of the company. If the company is performing well the shareholders get good return otherwise the shareholders may not get anything. These investments are again risky.
  17. 17. Page 17 of 88 Real estate: Sometimes people spend money on buying a plot of land, an apartment or a house etc., the value of which appreciates over a period of time. By giving it on rent they can earn money. These types of investments are less risky though they do not provide an assured return. Business activities: You must have observed that some people invest money to carry on various business activities. They may start the business individually i.e., in the form of sole proprietorship, or by inviting others to invest money with them i.e., they can start partnership form of business. By investing their money and putting their best effort then can get return in the form of profit. Investment in the share market: A person can invest his money in the share market by purchasing shares. A share market is a public institution and it serves the growth of the capital market. In a stock market, purchase and sale of shares are made in conditions of free competition. It is organized as voluntarily, non-profit making association of brokers to regulate and protect their interests. Whenever a company raises capital through public issue of securities, its securities are required to be listed on the stock exchange within ten weeks of the closing of the subscription list mainly to provide liquidity to the investors. Gold, Silver, Precious Metals and Precious Stones: All these items vary as per the market rates. And in the past few years, the rates of them have only increased. Please go to this site which will give you a day wise rate of gold. Now if we see the gold price per 10 gram on Jan 2009, it was Rs. 13664. And it was Rs. 27322 on Jan 1, 2012. So in 3 years it went up by Rs. 13658, which is almost 100%. So if someone had invested in gold at the right time, then it brings in good results. The same goes for silver too. Silver price on Jan 1, 2009 was Rs. 13753/Kg and it went up to Rs. 51043/Kg on Jan 1, 2011. So the increase was Rs.
  18. 18. Page 18 of 88 37290/Kg that means the increase was 271%. Hence people who had invested in silver had reaped a better return than investing in gold. In fact on May 1, 2011 it went up to Rs. 71576/Kg. Provident fund- statutory, recognized, unrecognized, public provident fund: Employee Provident fund scheme came into effect in 1952, and this was done on a mandatory basis so that employees save on a monthly basis through a government scheme. The govt. gives interest on the money which is deducted in PF. All the employees (including casual, part time, Daily wage contract etc.) other than an excluded employee are required to be enrolled as members of the fund the day, the Act comes into force in such establishment. Ideally when someone attains the age of 55, or over and retires from his duties, then s/he is eligible to withdraw the PF. The better course would be to invest in savings in Public Provident Fund (PPF) so that the money is blocked and saved for a minimum period of 15 years. It is totally exempt from tax. Unit scheme of Unit trust of India (Some are marketable among these): The announcement by the Chairman of Unit Trust of India (UTI) Mr. PS Subramanyam, that all repurchases of units would be stopped for six months, betrayed the trust that 20 million domestic investors had reposed in the institution. In one sweep, UTI removed liquidity, one of the prime components of an open-end fund to nothing at all. The government gave the Unit Trust of India two weeks to devise a way of allowing small investors to redeem units in its biggest fund. The government wanted the suspension lifted for small investors, as it would have jolted the investor’s confidence on the industry in a big way, something that the government did not want to happen. UTI obliged by setting up a committee for the purpose of proposing a way out to end the problem and to help restructure the scheme from the state of shambles that it currently is in. Investors stand to gain from the latest mechanism, which has been worked out after a lot of brainstorming and though it is yet to get a nod from RBI, in all probability, in the best interest of all the concerned parties, the modalities shall be worked out properly. However, given the degree of uncertainties involved, investors can do nothing but watch the drama unfold and just hope that the outcome is in their interests.
  19. 19. Page 19 of 88 Venture Capital: Venture capital (VC) is financial capital provided to early- stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which and usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc. The typical venture capital investment occurs after the seed funding round as growth funding round (also referred to as Series A round) in the interest of generating a return through an eventual realization event, such as an IPO or trade sale of the company. Venture capital is a subset of private equity. Therefore, all venture capital is private equity, but not all private equity is venture capital. In addition to angel investing and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value). Investment Avenues: All investments are risky, as the investor parts with his money. An efficient investor with proper training can reduce the risk and maximize returns. He can avoid pitfalls and protect his interests. Classification of Investments: There are different methods of classifying the investment avenues. A major classification is: Physical investment: Example of physical investments is land, property, flats, house, gold, precious metals and stones, paintings etc. They are
  20. 20. Page 20 of 88 physical, if savings are used to acquire physical assets, useful for consumption and/or production. Many items of physical assets are not useful for further production of goods or create income as in the case of consumer durables, gold, silver etc. Financial investment: Examples are Fixed Deposits, Bonds, Shares, and Mutual Funds etc. Most of the financial assets, barring cash are used for production or consumption, or further creation of assets, useful for production of goods and services. Among different types of investments, some are marketable and transferable and others are not. Examples of marketable assets are shares and debentures of public limited companies, particularly the listed companies on stock exchanges, bonds of P.S.Us, Government securities, etc. Non-marketable securities or investments are bank deposits, provident fund and pension funds, insurance certificates, post office deposits, NSC bonds, company deposits, private limited companies shares etc. Difference between savings and investments: Savings are money or other assets kept over a long period of time, usually in a bank without any risk of loss or making profit. Investments are money or other assets purchased with the hope that it will generate income, reduce costs, or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. And usually it has also a risk of some loss. As far as we are talking about investment then it is certain amount of money which is saved or used in some projects where we can take profit more than the money we have saved or invested. In general terms investment means the use of money to make more money. Think Before Making an Investment: When you are investing money you must look into some factors to reduce the risk involved in investment. Analysing these factors you must decide where to invest.
  21. 21. Page 21 of 88 Ability to save: Some of the investments require regular contributions of certain amount of money like payment of LIC premium or installments in a recurring deposit. You must assess your ability to save before taking any decision. Safety: You must look into the various risks or drawbacks of the instruments where you are going to invest to ensure safety of your investments. Easy Liquidity: Any investment you make must be capable of being converted into cash whenever necessary. Rate of Interest: Rate of interest is more important than the amount of return you get. Savings and Investment normally, for larger deposits, higher rates of interest are fixed. Tax relief: One must take into consideration the various tax benefits we can avail of through our investments. New developments in Investment avenues: Exchange traded funds: (ETFs) are a new variety of mutual fund that first became available in 1993. ETFs have grown rapidly and now hold nearly $80 billion in assets. ETFs are sometimes described as more 'tax efficient' than traditional equity mutual funds, since in recent years, some large ETFs have made smaller distributions of realized and taxable capital gains than most mutual funds. This paper provides an introduction to the operation of exchange traded funds. It also compares the pre-tax and post-tax returns on the largest ETF, the SPDR trust that invests in the S&P500, with the returns on the largest equity index fund, the Vanguard Index 500. The results suggest that between 1994 and 2000, the before- and after-tax returns on the SPDR trust and this mutual fund were very similar. Both the after-tax and the pre-tax returns on the fund were slightly greater than those on the ETF. These findings suggest that ETFs offer taxable investors a method of holding broad baskets of stocks that deliver returns comparable to those of low-cost index funds. REIT (Real estate investment trust): REITs are companies, which own properties such as office buildings, shopping complexes, and hotels etc, which are giving continuous income. As these companies pass most part of
  22. 22. Page 22 of 88 their income to the shareholders, they get tax benefits from their income. Like other stocks that are traded in the stock exchanges, REIT can also be traded in the stock exchange. REITs give a new opportunity to the retail and institutional investors to diversify their portfolio. The Emerging Investment Avenues: According to a study undertaken jointly by Merrill Lynch and Cap Gemini Ernst and Young, High Net worth Individuals [HNIs] or wealthy investors are proactive in portfolio management, risk management, consolidation financial assets and use of diversification strategies as actively as large institutions. HNIs are proactive in identifying new investment options and take inputs from professional advisors in volatile market conditions. HNIs are dynamic in modifying their asset allocation and were among the first investors to move from equities to fixed income during 2001-2002 period of downturn in equity markets. They shifted back to equities when they identified favorable market trends. Needs of wealthy investors Wealthy investors being aware of the emerging investment opportunities use sophisticated investment strategies such as:- Leveraging on the professional advisors' capability to analyse market trends and make appropriate investments. Searching for innovative products to enhance value. Diversifying across various types of assets. Investing across emerging geographies. Consolidating financial information and assets. Investment products and avenues Managed products: Managed product service is the most popular investment strategy adopted by wealthy investors globally. Real Estate: Wealthy investors have found this asset class very attractive and have invested directly in real estate and indirectly through real estate
  23. 23. Page 23 of 88 investment trusts. Art and passion: Wealthy investors also have their investment in art, wine, antiques, and collectibles. Precious Metals: Gold and other precious metals are attractive investment options to balance the asset allocation. Commodities: Wealthy investors have turned to commodities to offset the lower returns from fixed income securities. Alternative investments: Hedge funds and Private equity investments such as venture funds are becoming increasingly popular with wealthy investors to reduce the investment risks related to stock market fluctuations. This is because these instruments have low correlation with equity asset class performance. Investment in non correlated assets, such as commodities helps to improve diversification of the portfolio amidst volatile market conditions. Characteristics of wealthy investor The wealthy investor of today is:- Young, educated and knowledgeable. Well informed about global trends. Willing to take risks. Demanding and quality conscious. Performance oriented in taking decisions and less loyal. Techno savvy and seeks information from various sources. Smart in looking for the best deal.
  24. 24. Page 24 of 88 Not attracted by traditional status symbols that do not add value. Hands on in checking investments, making deals and getting personally involved. Special needs of wealthy investors The strategies and characteristics of wealthy investors has led to financial institutions innovating and expanding their product range to meet the growing demands of such investors. A financial advisor should keep in mind the following special needs and expectations of the wealthy clients:- Demand broader range of services and skills: Wealthy clients not only are on the lookout for multiple investment avenues, unlike other clients, but are also ready to face the risks associated with newer products. Net worth and goals need to be matched and assets need to be planned tax effectively: Since wealthy investors have surplus funds that can be passed on to the next generations and also come into the high tax paying category, investors need to advise them on the best methods to transfer their assets after death as well as on the best tax saving investments. Estate planning and tax planning: In-depth knowledge about tools of estate planning such as wills, trusts, and power of attorney is necessary. It is also important to know the succession rules and tax rules to do effective tax planning resulting in minimal/no tax on transfer of assets. Educate the client: Educating the client on various and different types of investment avenues that will suit him the best will prove very beneficial for the financial advisor. Wealthy clients, especially those who are self made, may assume that if they can make wealth in one industry they can manage their own portfolio as well. In such cases it is best to educate the client about the best investment options rather than trying to push a product; because if one is trying to push a product, the client is
  25. 25. Page 25 of 88 unlikely to get interested since he/she will be having enough people chasing him/her for investments. In the BPO industry, the salaries are quite high. And an average manager earns anything between 10-20 Lakhs/ annum. Hence there are many HNIs in this sector and we have tried to include some of them in this study and have tried to analyse their approach towards investments. Features of investment avenues: The investor has various alternative avenues of investment for his savings to flow in accordance with his preferences. All investors involve some risk or uncertainty. The objective of the investor is to minimize the risk involved in investment and maximize the return. 1. Risk: The risk depends on the following factors: a) The longer the maturity period, the larger is the risk. b) The more the creditworthiness of the borrower or agency issuing securities, the less is the risk. c) The nature of instrument, namely, the debt instrument or fixed deposit or ownership instrument like equity or preference share, also determines risk. d) The risk of variability of returns is more in the case of ownership capital as the return varies with the net profits after all commitments are met. e) The nature of tax liability on the instrument 2. Return: A major factor influencing the pattern of investment is its return, which is its return and capital appreciation, if any. The difference between the purchase price and the sale price is capital appreciation and the yield is the interest or dividend divided by its purchase price. 3. Safety: The safety of the capital is the certainty of return on capital without loss of money or time involved. In all cases of money lent, some transaction costs and time are involved in getting the funds back.
  26. 26. Page 26 of 88 4. Liquidity: If a capital asset is easily realizable, salable or marketable, then it is said to be liquid. An investor generally prefers liquidity for his investments, safety of his funds, a good return with a minimum risk or minimization of risk and maximization of return (dividend and capital appreciation). 5. Marketability: This refers to transferability or salability of an asset. Those listed in stock market are more easily marketable than those that are not listed. 6. Tax benefits: Some instruments enjoy good tax benefits; hence their net return is higher. Risk-return Relationships: Risk and return are directly correlated with each other, when risk high return is also high and vice versa. The relationship between risk and return is a fundamental financial relationship that affects expected rates of return on every existing asset investment. The Risk- Return relationship is characterized as being a "positive" or "direct" relationship meaning that if there are expectations of higher levels of risk associated with a particular investment then greater returns are required as compensation for that higher expected risk. Alternatively, if an investment has relatively lower levels of expected risk then investors are satisfied with relatively lower returns. This risk-return relationship holds for individual investors and business managers. Greater degrees of risk must be compensated for with greater returns on investment. Since investment returns reflects the degree of risk involved with the investment, investors need to be able to determine how much of a return is appropriate for a given level of risk. This process is referred to as "pricing the risk". In order to price the risk, we must first be able to measure the risk (or quantify the risk) and then we must be able to decide an appropriate price for the risk we are being asked to bear.
  27. 27. Page 27 of 88 Research Design Problem Statement: We have been working in the BPO industry for a long time. Sunia has been working for 10+ years in this industry; Krishna is working for 6 years, Merlin for 4 years, Bhavani for 4 years and Sheela for 3 years. We have realized that we have earned a lot of money from this industry; however our investments are not up to the mark. During the global recession in 2008, we have seen many of our colleagues losing jobs, and then we realized all the more the importance of investments. We have also gone through traumas of a family member being hospitalized, and the huge expenses which we have to incur during such times. It is not only us, we have seen most of our colleagues working in this industry are earning well, however their savings are investments are poor. In fact most of them own credit cards and often are neck deep in debts. Also they often take personal loans to buy consumer durables like TV, Fridge, and Washing Machines etc. and pay anything between 12-20% as interest/ year of such loans. Hence we thought of taking up this study so that we can not only gather data and reach to a conclusion, so that we can create awareness amongst young BPO employees regarding savings and investments. Reasons for taking up this study: As per a study done by Price Water Coopers, here we can find some facts: Please go through the entire study at: ITeS_Industry_-_Changing_Landscape_and_emerging_trends.pdf The Indian information technology (IT) / IT enabled Services (ITeS) industry has played a key role in putting India on the global map. Over the past decade, the Indian IT-BPO sector has become the country’s premier growth engine, crossing
  28. 28. Page 28 of 88 significant milestones in terms of revenue growth, employment generation and value creation, in addition to becoming the global brand ambassador for India. The Indian IT-BPO sector including the domestic and exports segments continue to gain strength, experiencing high levels of activity both onshore as well as offshore. The companies continue to move up the value-chain to offer higher end research and analytics services to their clients. The Indian IT-BPO industry has grown by 6.1 percent in 2010, and is expected to grow by 19 percent in 2011 as companies coming out of recession harness the need for information technology to create competitive advantage. India’s fundamental advantages—abundant talent and cost—are sustainable over the long term. With a young demographic profile and over 3.5 million graduates and postgraduates that are added annually to the talent base, no other country offers a similar mix and scale of human resources. Realizing the wealth of potential in the IT-ITeS sector, the central and state governments are also working towards creating a sound infrastructure for the IT- ITeS sector. CII aims to make the Indian IT and ITeS industry world class by continuously providing a platform for understanding and adoption of the new developments & best practices worldwide in this sector, taking up issues and concerns of the Indian industry with the relevant ministries at National and State level, coming up with studies, reports and surveys to help understand the potential of Indian IT and ITeS market and the issues faced. As one of the key growth engines of the economy, the Indian IT/ITeS industry has been contributing notably to the economic growth accounting for around 5.6% of the country’s GDP and providing direct employment to about 2.3 million people and indirect employment to many more. (Data collated till 2011). Since this industry has a huge potential, and it is providing a positive impact on India’s GDP, and every year a lot of new graduates and post graduate young people are joining the work force, we thought that this will be a good platform to base our studies on.
  29. 29. Page 29 of 88 Since this is an emerging and young sector, not too many studies have happened in this sector. Hence it gave us a fresh platform to work on. Plus since many of our friends and colleagues work in this sector, it was easy for us to collect primary data. Also this was a very relevant study which would have benefitted most of us and this research would have helped us to create awareness amongst our colleagues and friends associated with this industry. Bangalore is known as the Silicon Valley of India and most of the IT and ITES companies have their large operations in Bangalore. Hence Bangalore has a sizeable population and we will take a small sample from that population for this survey. Since out of total investment from Bangalore, substantial share is from ITES professionals, the researcher is making a study here to understand the investment pattern of ITES professionals. The knowledge about investments and portfolio designing is limited for ITES professionals as there area of study and interest is different. The decisions they take regarding their investments may not be accurate and hedging will not be taken care properly if portfolio is not proper. Therefore this study is basically conducted to find out the investment pattern of ITES professionals in Bangalore city and offer suggestions for better performance of the funds invested. Scope of the study: The area covered for the study of “A study on investment pattern of ITES Employees in Bangalore” is about X ITES companies for the collection of primary data. They are: 1. Infosys BPO 2. Accenture BPO 3. IBM- Daksh BPO & IT Services. 4. HP (BPO and IT Services) 5. Fidelity BPO Wing 6. GENPACT BPO 7. ANZ Services/BPO
  30. 30. Page 30 of 88 8. KPMG 9. Dell (BPO and IT Services) 10.Others Profile of the ITES Companies 1. Infosys BPO Progeon was established in April 2002 as the BPO subsidiary of Infosys Technologies and today is among the top third party BPOs in India according to NASSCOM. It was started as a 74% and 26% joint venture between Infosys and Citibank Investments. In 2006 Infosys bought out Citibank's share at a price of Rs 592 per share. Today it has operations in Bangalore, Chennai, Gurgaon, Bhbaneshwar, Jaipur and many other Indian Cities along with international centers like, Monterrey, Mexico, Lodz, Poland, Brno, Czech Republic, Atlanta, USA, Hnagzhou, China, Manila, Philippines, and Brazil. Infosys BPO, the Business Process Outsourcing subsidiary of Infosys Limited (NASDAQ: INFY), is an end-to- end outsourcing services provider. Infosys BPO addresses your business challenges and unlocks business value by applying proven process methodologies, integrated IT and business process outsourcing solutions. The company applies business excellence frameworks to significantly reduce costs, enhance effectiveness and optimize business processes. The company focuses on integrated end-to-end outsourcing and delivery of result-oriented benefits to our clients through reduced costs, ongoing productivity improvements and process reengineering. Our business solutions and leadership are recognized by several global forums. We are consistently ranked among the leading BPO companies in India by industry bodies such as Global Outsourcing 100 (The International Association of Outsourcing Professionals), FAO Today, and NelsonHall. Infosys BPO has not only pioneered "Business Value Realization" (BVR), but has also emerged as a trusted and valued collaboration partner through consistent focus on improving process and end-business metrics. We continue to enable realization of business value, customer satisfaction and co-creation to sustain long term partnerships.
  31. 31. Page 31 of 88 We take pride in being a consistent performer and are endorsed by industry analysts, customers (internal and external), and alliance partners. Infosys BPO is a global company operating in the Americas, APAC, Australia and Europe with over 21,421 employees and revenues of $494.9 million as of March 31, 2012. Business Transition Methodology Infosys BPO enables flexible business process management services through global delivery centers. We believe that a well managed transition provides a robust foundation for smooth operations. A key aspect of our service is the transition of business processes from client’s locations to our delivery center(s). We have a comprehensive and mature transition methodology documented from over 1,000 transitions. Overview Infosys BPO leverages global delivery centers to deliver predictable and flexible business process management services. A key aspect of our service delivery is the successful migration or transition of business processes from the client’s locations to our delivery center(s). We have a comprehensive and mature transition methodology that has been refined and documented during the course of more than 1,000 transitions. Compliance is monitored through check points at different stages. Project Preparation Project preparation begins with the handover of the solution design to the transition team. It involves defining the roles and responsibilities of key stakeholders to ensure a smooth transition. A dedicated transition team consisting of a transition manager, operation and documentation specialists, and trainers, is deployed. The team has access to a shared resource pool from technology, legal, finance, human resources and quality during transition. It involves Knowledge Transfer (KT), team identification and preparing the team for onsite assignment. Planning After a detailed planning workshop with the client, this phase involves finalization of the integrated project plan. It includes plans for operations, delivery,
  32. 32. Page 32 of 88 technology, recruitment, quality, and risk to cater to project requirements. In addition, the integrated project plan mobilizes resources and arranges logistics. The objectives of planning include - Creation of a detailed execution plan for all work streams Validation of FTE ramp-up, technology requirements and establishment of a governance structure Identification of deliverables across different functionalities Pre-empting and monitoring implementation of the plan across all phases – a continuous and consistent exercise Assessing and mitigating risk Workflow tool/ point application requirement collection and analysis Execution Execution involves the implementation of the transition solution. We deploy domain, process and technology teams to address transition - Knowledge transfer: Includes the construction of operating procedures, preparation of training documents, and training executives to execute the process offshore Technology transfer: Identifies the optimal network architecture, procurement of bandwidth and systems, and installation, testing, and deployment of technical infrastructure. Operating preparedness: Includes recruitment, induction and site preparation Parallel Run In this phase, offshore operations are initiated with active client support. Gradually, the responsibility is transferred to the offshore operations team while ensuring that inter-dependent processes are not affected. It involves several stages: Preparation of the ramp-up schedule Managing logistics Execution of offshore ramp-up and onsite ramp-down while maintaining continuity of operations Establishing service levels Parallel run helps achieve robust operations with all the resources and infrastructure to execute steady state operations.
  33. 33. Page 33 of 88 Steady State 'Steady state operations’ is the ongoing delivery of services. The key objective is "business as usual," where the outsourced processes are executed in accordance with the norms in the Service Level Agreement (SLA). Steady state involves: Security and business continuity SLA metrics tracking and reporting to monitor continuous performance Human Resource Management Quality Management System Our transition framework has several features: Check points after each phase of transition to enable robust implementation Health checks after go-live as a warranty Structured Customer Satisfaction (CSAT) survey after each transition to elicit client feedback and ensure world-class transition 2. Accenture BPO: Accenture is a global management consulting, technology services and outsourcing company, with more than 249,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Accenture is a great success story by any measure. The company’s history has been more than 60 years in the making—from the earliest days as a pioneer in the new world of information technology in the 1950s to its position today as a Fortune Global 500 industry leader.
  34. 34. Page 34 of 88 Initially called Andersen Consulting, Accenture was formally established in 1989 when a group of partners from the Consulting division of the various Arthur Andersen firms around the world formed a new organization focused on consulting and technology services related to managing large-scale systems integration and enhancing business processes. In April 2001, Accenture’s partners voted overwhelmingly to pursue an initial public offering, and Accenture became a public company on July 19, 2001, when it listed on the New York Stock Exchange under the symbol ACN. The majority of Accenture employees are organized in one of four "workforces" (Consulting, Services, Solutions and enterprise) and they chose to open their BPO wing in Bangalore in April 2003. Services Accenture offers a vast range of BPO services to enable high performance, including function-specific services such as procurement, HR and finance and accounting, as well as services geared to the needs of specific industries such as utilities, insurance and health care. Cross-Industry BPO Services Finance and Accounting BPO Human Resources BPO Learning BPO Procurement BPO Supply Chain BPO Industry-specific Services Credit Services BPO Health Administration BPO Industry-specific BPO Insurance BPO Life Sciences BPO
  35. 35. Page 35 of 88 Network BPO Utilities BPO 5. Fidelity BPO Wing: FMR India FMR India consists of three business verticals - Technology services, Business Delivery and Enterprise Services, providing services to Fidelity Investments' US clients. The range of operations include IT Development & Support, Business Process Outsourcing (BPO), Implementation, Business Analytics & Research and Support functions. FMR India was set up in the year 2002 at Gurgaon and its Bangalore operations commenced in 2003, with the mission to enable Fidelity’s clients to achieve lifelong financial independence and peace of mind. Headquartered in Bangalore, FMR India has full-fledged operations Chennai also. Fidelity Management and Research (FMR co.) founded in Boston by Edward C. Johnson 2nd to act as investment advisor to fidelity fund. The global brand Fidelity is an international provider of financial services and investment resources that help individuals and institutions meet their financial objectives. Once known primarily as a mutual fund company, Fidelity has adapted and evolved over the years to meet the changing needs of its customers. Today, that evolution is reflected in Fidelity's menu of products and services. In addition to more than 300 Fidelity mutual funds, Fidelity also offers discount brokerage services, retirement services, estate planning, wealth management, securities execution and clearance, life insurance and much, much more. What hasn't changed over the years is Fidelity's commitment to continuous improvement, state-of-the-art technology and peerless customer service. Fidelity
  36. 36. Page 36 of 88 is responsible for many innovations that are standards in the industry today. Fidelity reinvests a substantial portion of its revenues each year back into technology to deliver new products and services to investors. And Fidelity is being consistently recognized by industry surveys and publications for providing some of the highest levels of customer support. 6. GENPACT BPO: Genpact Limited (NYSE: G) is a global provider of business process and technology management services, offering a portfolio of enterprise and industry-specific services. It was formerly a GE owned company called GE Capital International Services or GECIS. It operates from India, China, Guatemala, Hungary, México, Morocco, the Philippines, Poland, the Netherlands, Romania, Spain, South Africa, Australia, UAE, Brazil and the United States. Tiger Tyagarajan is the President and CEO of Genpact and has the highest paid salary package of Rs.49 Crores per annum. Currently it employs over 55,000 people in various locations providing services in 25+ languages on a 24/7 basis. Genpact's services cover areas like Finance and Accounting, Analytics & Research, Risk Management, Supply chain, Procurement, Enterprise Application Services and IT Information Services. Genpact serves clients in various industries including Banking and Financial Services, Insurance, Capital Markets, Healthcare, Life- sciences, Consumer Goods, Retail, Aerospace, Automotive, Energy, Hi-Tech, Transportation & Logistics, and Hospitality. History: Genpact went public on NYSE on August 2, 2007 under the symbol "G". The NYSE symbol "G" was initially allocated to the Gillette company. After the Gillette Company was acquired by Procter and Gamble, the symbol became free and Genpact and Google booked it. It was Genpact in the end that got to keep G as its stock symbol.
  37. 37. Page 37 of 88 Apart from GECIS, Genpact has also been known as GECSI and GECIBS in its initial days of operation. Locations: Genpact operates from Asia, Eastern Europe, Northern America, Latin America, Australia and Africa. In India Genpact, Uppal Hyderabad In India it operates from Gurgaon, Noida, Delhi, Hyderabad, Jaipur, Kolkata, Bangalore and Dehradun. The operations in India are Finance and Accounting, Sales and Marketing Analytics, Customer Services, Financial Services Collections, Supply chain, Information Technology and Actuarial & Other Insurance Services with Learning Content Development. Genpact has got an approval to open its SEZ center in Bhubaneshwar.II Genpact has a 50:50 joint venture with NDTV in NGEN Media Services. Also has tied up with NIIT for training related services. In México Genpact Mexico provides bilingual English and Spanish-language based business services, near-shore services to North America and a significant document management capability. The Mexico operations have 2200 people in three sites – two sites in Ciudad, Juarez (sister city to El Paso, TX) and one site in Caborca. The core business competencies of Genpact Mexico lie in the areas of Customer Service, Finance and Accounting, Collections, Document Management. Mexico is a Strategic Site to handle Bilingual Call Centre and Non Voice Capabilities – mainly English and Spanish.
  38. 38. Page 38 of 88 In USA Genpact has assumed several accounting processes of Walgreens, the largest drugstore chain in the United States. It has acquired a former Walgreens facility in Danville, Illinois to accommodate these functions. Through its wholly owned subsidiary formerly known as Creditek LLC, with facilities in Wilkes Barre, PA, Nashville, TN, and Parsippany, NJ, Genpact provides Finance & Accounting solutions Revenue Cycle Management services in such processes as order-to-cash, procure-to-pay and forecast-to-fulfill. Genpact Mortgage Services, formerly MoneyLine Lending Services, provides private-label, outsourced mortgage origination and fulfillment services and complex business process outsourcing for financial institutions and other mortgage lenders from its centers in Irvine, CA, and Salt Lake City, UT. In Guatemala Genpact's facility in Guatemala was opened in 2008 and provides business process services in English as well as in Spanish. The delivery center will initially accommodate more than 700 workers and has the capacity to grow to approximately to 1,000. The facility's close proximity to the region's largest public university is a major advantage in terms of attracting key talent.[12] In Hungary Genpact Hungary, founded in 2002, operates in Budapest and has established itself as one of Europe’s premier business services and technology solutions providers.[citation needed] It currently employs staff from more than two dozen countries serving customers across Europe in over 15 languages. In Romania Genpact Romania, founded in 2006, operates in Bucharest and in Cluj. In Netherlands & Spain With the strategic acquisition in 2007 of Dutch and Spanish entities of ICE Enterprise Solutions, Genpact provides SAP solutions via centers in the
  39. 39. Page 39 of 88 Netherlands and Spain. ICE is an SAP Services Partner, Utilities Partner, and BW/SEM Partner in the Netherlands, and an SAP Partner and StreamServe Partner in Spain. In Poland In June 2008, Genpact opened a new center in the Polish city of Lublin. Genpact Operations Centre located in city of Lublin is a finance and accounting operations centre which offers services to customers from Slovakia, Czech and Poland.[13] Decision about starting the centre in Lublin results first of all with good city location, close to other states in Centre and Eastern Europe. What is more Lublin – the largest city in eastern Poland - is known as a strong academic centre. Lublin is home to 14 universities, approximately 100 000 students and about 22 000 university graduates.[14] Therefore Lublin can assure suitable personnel backup and offers professional and experienced staff in finances and accounting, and also in management. We are pleased with expansion our company in Poland. Opening of new centre is a large step in systematic enlarging our European operating possibilities” - said Patrick Cogny CEO Genpact Europe. First employees of new Centre became officially take on in June 2008 r. Centre in Lublin functions already in 100% and it develops continually. In Africa In 2008, Genpact set foot in the North African city of Rabat, Morocco. In 2009, Genpact entered into a partnership with South African Breweries Ltd (SAB) assuming responsibility for its Shared Services Centre in Johannesburg, South Africa. In China Genpact in China, known as Jianbaite (in Chinese: 简柏特), has Service delivery centers in Dalian, Changchun and Shanghai. Among them, the center in Dalian is the largest, located in Dalian Software Park, employing about 3,000 people, and focusing on the Japanese business.
  40. 40. Page 40 of 88 In Philippines Genpact in the Phillppines has a BPO/Call Center branch located at Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City. The leadership team: Pramod Bhasin is the Non-Executive Vice Chairman and former President and CEO of Genpact. Foundation of GENPACT: Pramod started GE Capital International Services (GECIS) in 1997 as the in-house BPO division of General Electric (GE) when K.P. Singh convinced Jack Welch, the former CEO of GE, to outsource certain services to India at Gurgaon. It was under Pramod that GE hired Raman Roy, pioneered business process outsourcing in India, and expanded its operations from India to countries like China, Hungary, Guatemala, Poland, Mexico, Morocco, the Philippines, Romania, South Africa and the United States. GENPACT began in 1997 as a business unit within GE and this lineage has contributed to our deep understanding of process. Starting first with the business of GE Capital and then expanding scope across GE businesses, to providing business process management capabilities that delivered outstanding business impact for the company. Over a sustained 14-year period, Genpact has been the key provider of business process and technology management services to GE and they continue to be a significant Genpact client. In January 2005, Genpact became an independent company to bring our process expertise and unique DNA in Lean Six Sigma to clients outside the GE family. In August 2007, Genpact was listed on the NYSE under the symbol ‘G’. Driven by a passion for process innovation and operational excellence built on its Lean and Six Sigma DNA and the legacy of serving GE for more than 14 years, the company’s professionals around the globe deliver services every day to its more than 600 clients from a network of 18 countries, 67 delivery centers supporting more than 25 languages.
  41. 41. Page 41 of 88 Genpact has been an early mover in the industry and a pioneer in many of the areas that have given strength to the concept of Business Process Management. From the first to introduce Six Sigma for Process Transitions to the first to build a Science of Process Management (SEPSM), Genpact has always led the way, and in the process helped their clients to outperform. Innovation: Genpact’s successful and incessant efforts in challenging the status quo and bringing innovation to our clients are demonstrated by continuous process solutions advances, such as those in analytics (e.g., inventory optimization or investor listening services based on social media methods), risk management (e.g., anti money laundering, or simulation of the impact of commodity costs) or business collaboration (through better platforms such as Genpact-Unified - Collaboration-Engagement). Genpact is uniquely positioned to deliver business process innovation because of: Its diverse yet cohesive client, partner and internal ecosystem. Like any great process, real innovation doesn’t happen in a silo and our approach benefits from a vast network of intelligence: in-depth collaborative development work with some of our best clients, select consultants and advisors; joint research with leading academia like the MIT Center for Collective Intelligence; our web-based SolutionXchange collaboration network of “crowd sourced” experts; our SEP innovation group, and our deep analytics bench; Genpact’s active Board of Directors; acquisitions such as Akritiv and EmPower Research.
  42. 42. Page 42 of 88 Its unique innovation process with dedicated senior management. Our “innovation factory” consistently harnesses the power of our ecosystem, extracts needs and insights and combines Genpact capabilities to create repeatable, cost effective, configurable yet standardized innovative solutions to old and new challenges. The Genpact DNA of Lean Six Sigma Genpact is proud of its heritage of Lean Six Sigma—it is the way we work, a part of our DNA! Lean Six Sigma is a tool, a methodology for quality improvement that has been around for many years. So the difference is not the tool but how a company embraces it and puts it to work. As a part of GE, Genpact was in an initial beta site under Jack Welch, who became known worldwide as a leading proponent of Lean Six Sigma. Lean Six Sigma was common in manufacturing but GE was an early innovator in its application to services and made this a tremendous success. There are two types of companies when it comes to embracing Six Sigma. Those where it is simply a function and others where Lean Six Sigma is driven through the organization, which is true of GE and is clearly true for Genpact. It permeates what we do and is highly visible in our operations, our people processes, and our leadership direction.
  43. 43. Page 43 of 88 Genpact’s offerings: (Solutions) Aftermarket Services Analytics and Research BPaas (Business Process as a Service) Collections Contact Center Direct Procurement Engineering Services Enterprise Application Services Finance and Accounting Human Resource Services Indirect Source to Pay IT- Infrastructure Services Learning and Marcomm Services Legal Services Media Services Re-engineering Risk Management Services Genpact’s offerings: (Industries) Aerospace Automotive Banking and Financial Services Capital Markets Chemicals Consumer Goods Energy Healthcare- Payer Healthcare- Provider Hi- Tech Hospitality Insurance
  44. 44. Page 44 of 88 Life Sciences Retail Telecommunications Transportation and logistics We have mentioned about the solutions and industries which GENPACT supports because GENPACT has not divided the company as technologies, BPO etc. They have divided as per ‘’Solutions’’ and ‘’Industries’’ and they do high end work in the services space. Since it all comes under the big umbrella of IT Enabled Services, we thought of including it in the company profile. 7. ANZ Services/BPO ANZ in India: ANZ's operations in India are an integral part of ANZ’s global network comprising: Australia and New Zealand Banking Group Limited (ANZ) in Mumbai ANZ commenced banking operations in India with the opening of its first branch in Mumbai in June 2011. This follows the receipt of the banking licence from the Reserve Bank of India in October 2010. ANZ is one of the 25 largest banks globally by market capitalisation1 and holds a long-term credit rating of Aa2/stable from Moody’s and AA-/stable from S&P. The India branch supports Corporate and Institutional clients in India and provides greater access to the Indian markets for our global network customers. ANZ offers clients a full range of rupee and foreign currency products and services, working capital and term financing, cash management and trade products, foreign exchange and interest rate solutions, as well as deposits and advisory services. ANZ Operations and Technology and ANZ Support Services India, Bangalore.
  45. 45. Page 45 of 88 ANZ Operations and Technology Pvt. Ltd. and ANZ Support Services India Pvt. Ltd. in Bangalore are an integral part of ANZ’s Global Services & Operations and Technology divisions. In Bangalore, ANZ currently employs close to 5000 people in technology development, operations and shared services roles. The group has been servicing ANZ’s technology needs for more than 21 years and has in recent years extended its capabilities to include operations and support functions. This division is led by Leanne Lazarus. Company Profile: ANZ’s history dates back over 175 years. We are committed to building lasting partnerships with our customers, shareholders and communities in 32 countries in Australia, New Zealand, throughout Asia and the Pacific, and in the Middle East, Europe and America. Business strategy: We aim to become a super regional bank. This involves growing our presence in the Asia Pacific region and source 25-30% of earnings from our Asia Pacific Europe and America Division by 2017, while also being very focused on growth in our core domestic businesses in Australia and New Zealand.
  46. 46. Page 46 of 88 ANZ Executive ANZ executive is made up of the Board of Directors and Management team.
  47. 47. Page 47 of 88 In relation to corporate governance, ANZ's Board seeks to: Embrace principles and practices it considers to be best practice internationally; Be an 'early adopter', where appropriate, by complying before a published law or recommendation takes effect; and Take an active role in discussions of corporate governance best practice and associated regulation in Australia and overseas. As a company listed on the Australian Securities Exchange (ASX), ANZ is required to disclose how it has applied the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (ASX Governance Principles) during the financial year, explaining any departures from them. ANZ has complied with each of the ASX Governance Principles throughout the 2011 financial year. Codes of Conduct and Ethics ANZ has two main Codes of Conduct and Ethics which provide employees and Directors with a practical set of guiding principles to help them make decisions in their day to day work. The Codes embody honesty, integrity, quality and trust, and employees and Directors are required to demonstrate these behaviours and comply with the Codes whenever they are identified as representatives of ANZ. 8. KPMG 9. Dell (BPO and IT Services)
  48. 48. Page 48 of 88 10. Others Sample Size: We have taken a sample size of about 200 respondents spreaded almost equally among the companies. Since we work for Infosys BPO, the majority of the sample comes from there. However it can be taken as a neutral data, as the people change companies and the people who are today in Infosys BPO, they might have worked in other BPOs in the past. Hence the figures do not affect the results much. The study areas covered for the analysis are Behavioral finance, portfolio management, and financial management. Tools for data collection: We have used the questionnaire as a tool for data collection. We have used the same questionnaire to collect data as soft copy (using googledocs) and also took print outs of the same questionnaire and took hardcopies and then we manually fed the data for analysis. Personal Tax planning for an Individual: Some people have a wrong notion that tax planning is useful only once you are well settled in life. Rather, the best time to start tax planning is right from the day you start earning any income in your name. For any individual tax planning occupies a prominent position in the investment planning process. Tax Planning: Everyone is entitled to so arrange his affairs to reduce his tax liability, but the arrangement must be real and genuine and not a sham. Thus tax planning ensures not only the accrual of tax benefits within the four corners of law but also that the tax obligations are properly discharged to avoid penal provisions. It should not be mixed with tax evasion and tax avoidance.
  49. 49. Page 49 of 88 Tax planning at different stages of life through various Investments: 1. When a person starts earning by default the company s/he works for deducts the PF which is exempted from tax. Also Insurance policy (life Insurance, medical insurance u/s 80D and retirement plans) can be planned as deduction can be availed u/s 80 C. 2. Next stage is to own a house. The biggest advantage of putting your money in residential house property is tax haven in one hand while on the other hand; you get a secure place of your own to live in. The repayment of principal is deductible up to one lakh in a year u/s 80 C. 3. Usually, a person has to spend a lot on the education of children. Tax planning can be used as effective tool in this respect as it may ensure that the capital base is not eroded or adversely affected. Sec 10(14) and rule 2BB provides for certain allowances that are exempt according to the limit specified in respect of each such allowances. 4. Senior citizens can invest special Senior Citizens schemes launched by govt. of India. Tax planning brings fiscal discipline in the functioning of a taxpayer and reduces the transfer of money, from the person who has earned it by hard labor, to the govt. for waste and ostentation. Thus the amount invested enhances the capacity of the taxpayers for expansion and growth, which in turn increases the tax revenue of the govt. Objectives of the Study: 1. To examine history, growth and development of investment avenues in the city 2. To analyze investment pattern of ITES professionals in Bangalore city. 3. To find out the most accepted investment option in the city. 4. To offer suggestions on the basis of findings with reference to profitability, tax benefits, liquidity and risk. Period of the Study:
  50. 50. Page 50 of 88 The study on Investment pattern analysis of ITES professionals in Bangalore city is conducted for a period of about 1 year. Limitations: 1. The findings of this study are based on sample size, so they can’t be generalized. 2. The research period is very short. So time constraint was a limiting factor. 3. Limited knowledge of respondents about the topic of the study was also a limiting factor. 4. The age group was very diverse. There were freshers with a CTC of 1 Lakh/Annum, and there were middle management professionals with a CTC of 20 lakhs/annum or so. All cannot be clubbed in one group as they view investments from a different perspective. 5. XXX Literature Review: Different types of Investment patterns/Different segments of the society who do investments and their ways. The topic “A study on investment pattern of ITES Employees in Bangalore” is covered under behavioral finance. The researcher has reviewed the following literature for the study of the above stated topic. We have searched the internet and we have found 6 different literature reviews which I would like to include in my research. They are as follows:
  51. 51. Page 51 of 88 1. ASIAN JOURNAL OF MANAGEMENT RESEARCH Online Open Access publishing platform for Management Research. Done by: Gaurav Kabra, Prashant Kumar Mishra, Manoj Kumar Dash, PGH Student, ABVIndian Institute of Information Technology and Management, Gwalior,India Assistant Professor, ABVIndian Institute of Information Technology and Management,Gwalior, India Topic: Factors Influencing Investment Decision of Generations in India: An Econometric Study. 2. Investment Patterns and its Strategic Implications for Fund Managers: An Empirical Study of Indian Mutual Funds Industry. Done by: D. N Rao, Kings University and S.B Rao, All India Management Association. Date: January 19, 2010 3. Changing Trend of Investment Pattern in India and Emergence of Mutual Fund Industry [HDFC Asset Management Company] Done by: Sheeba Lole, MBA II Semester Shree Amreli Jilla Leuva Patel MBA College Of Women Amreli–365 601 GJ E-mail: 4. WORKING PAPERS ON INTERNATIONAL INVESTMENT. Investment Patterns in a Longer-Term Perspective. Done by: Stephen Thomsen, Date: April 2000
  52. 52. Page 52 of 88 5. WORKING PAPERS ON INTERNATIONAL INVESTMENT. Investment Patterns in a Longer-Term Perspective. Done by: Stephen Thomsen, Date: April 2000 6. On Being a Woman: How Our Differences Shape Our Investment Techniques Done by: Nicole Alper 7. Savings and Investment pattern of IT Employees of Bangalore. Done by Prof. Hema Doreswamy of Welingkar Business School. Synopsis: After reading all the five studies done by different groups/individuals of scholars, I have tried to analyze their findings and present my view point. I have tried to search for different investment patterns among Indians and by international people. I have found that many scholars have worked on the emergence of ‘’Mutual Fund Industry’’ in India. Also I have found an interesting research of investment pattern of women. In the first research, where the topic is ‘’ Factors Influencing Investment Decision of Generations in India: An Econometric Study’’, I have realized that the team has researched on the age old methods of investments. This study aims to gain knowledge about key factors that influence investment behavior and ways these factors impact investment risk tolerance and decision making process among men and women and among different age groups. Today the field of investment is even more dynamic than it was only a decade ago. World event rapidly events that alter the values of specific assets the individual has so many assets to choose from, and the amount of information available to the investors is staggering and continually growing. The turnover rate in investments should exceed the inflation rate and cover taxes as well as allow you to earn an amount that compensates the risks taken. Savings accounts, money at low interest rates and market accounts do not contribute significantly to future rate accumulation. While the highest rate come from stocks, bonds and other types of investments in assets such as real
  53. 53. Page 53 of 88 estate. Nevertheless, these investments are not totally safe from risks, so one should try to understand what kind of risks are related to them before taking action. In this Paper the team has examined some common reasons for investing. In this Paper we are trying to find out Factors which affects individual investment decision. Difference in perception of Investors in the decision of investing on the basis of Age. Difference in perception of Investors in the decision of investing on the basis of Gender. This study follows the survey research methodology. Based on previous research in related areas, a questionnaire was constructed to measure the investment pattern of individuals on the basis of Age and Gender. After pilot testing, the questionnaire was administered to a group of people whom age is more than 22 years. Here we are using minimum age as 22 years since we are considering that an individual starts earning after this age. The data were analyzed using standard techniques of factor analysis, Regression analysis and other basic techniques. The target groups chosen for this study were the investor, who regularly invests. They will invest fewer amounts but invest regularly according to their earning. The target groups include various types of Investors such as on the basis of areas whether they belong to rural or urban areas. On the basis of Profession whether they are working in Government or Private Sector and On the basis of annual income and annual amount they invest. A four page questionnaire consisting of six subscales was developed. In the first subscale,
  54. 54. Page 54 of 88 demographic information such as age, gender, marital status, region to which they belong, profession, individual income levels were sought. In the remaining five subscales, questions were adapted from similar instruments reported in the literature by previous researchers to measure the investment pattern of individuals on the five variables under consideration, viz. investing background, opinion leadership, Duration of investment, Awareness of Investments, Security. They have done an extensive literature review which included reviews from International scholars like Statman (1988), Barnewall (1988), Langer (1975) etc as well as Indian scholars like Karthikeyan (2001). Details of respondents No. Of respondents Percentage (%) Age 22-28 233 51.10% 28-40 180 39.50% 40-60 43 9.40% Gender Male 270 59.20% Female 186 40.80% Profession Govt. Service 134 29.40% Private Service 212 46.50% Professional 110 24.10% Annual Income 1.5-3 Lakhs 44 9.60% 3.5- 5 Lakhs 212 46.50% Above 5 Lakhs 200 43.90% Hence the team had taken a good mix of the variety of people based on gender, age group, income group and profession. At the end of the study it was concluded that the modern investor is a mature and adequately groomed
  55. 55. Page 55 of 88 person. In spite of the phenomenal growth in the security market and quality Initial Public Offerings (IPOs) in the market, the individual investors prefer investments according to their risk preference. For e.g. risk-averse people choose life insurance policies, fixed deposits with banks and post office, PPF and NSC. Occasions of blind investments are scarce, as a majority of investors are found to be using some source and reference groups for taking decisions. Though they are in the trap of some kind of cognitive illusions such as overconfidence and narrow framing, they consider multiple factors and seek diversified information before executing some kind of investment transaction. The purpose of this study was to determine whether the variables such as demographic characteristics (age, gender) and investment patterns could be used individually or in combination to both differentiate among levels of men and women investment decisions and risk tolerance and develop some guidelines to the investment managers to design their investment schemes by considering these views of individuals. In the second research, where the topic is ‘’ Investment Patterns and its Strategic Implications for Fund Managers: An Empirical Study of Indian Mutual Funds Industry’’, the team has analysed about the mutual fund industry in India. The mutual fund industry in India presents an interesting scenario of 48 million investors, a large variety of product offerings and coexistence of private, public and foreign Asset Managing Companies. The study, adopting the classification of investors and categorization of funds by Association of Mutual Funds in India (AMFI) empirically researches the investment patterns of the five investor groups in the eight fund categories; examines the portfolios of the investor groups to identify their propensity for specific fund categories and identifies the dominant investor groups in terms of quantum of investment and investor folios. The significant findings of the study have been that (a) Corporates are the dominant investor group in the Indian Mutual Fund Industry and they account for almost 48% of the total investment (AUM) in the industry and they are more oriented towards non-equity funds which offer high security & liquidity and hence their propensity towards Liquid/Money Market and Debt-oriented funds; The second dominant group in the industry is the Retail investors’ group which accounts for almost 24% of the total investment (AUM) in the industry,
  56. 56. Page 56 of 88 while they account for 98% of the 48 million investors in the industry. The portfolio of this group is highly skewed towards equity oriented schemes (almost 80%) which offer high return, capital appreciation coupled with high risk and 18% of the portfolio accounts for Debt-oriented and Balanced funds. There were 34 pages in the PDF file, however I was unable to read all the 34 pages as the entire material was not available on the internet. I am trying to the PDF file from the scholars who had worked on it. Source: In the third research, where the topic is ‘’ Changing Trend of Investment Pattern in India and Emergence of Mutual Fund Industry, the researcher has come up with a few interesting findings. This project is about how the Investor's Behavior is changing and they are now leaving behind the sacred investment options like the fixed deposits, company deposits, gold etc. Investors are now looking towards equity linked investment options. Like most developed and developing countries the mutual fund cult has been catching on in India. There are various reasons for this. Mutual Fund makes it easy and less costly for investors to satisfy their need for capital growth, income preservation. And in addition to this a mutual fund brings the benefit of diversification and money management to the individual investor, providing an opportunity for financial success that was once available only to a select few. In this project the researcher has given a brief about economy, inflation, and equity and debt market. Then it is explained how to cope with the inflation and how mutual fund is one of the best investment options today. A brief about mutual fund industry and the some information about HDFC Mutual Fund and its various products are also given. A mutual fund is a pool of money, collected from investors, and is invested according to certain investment objectives. The term mutual means that investors contribute to the pool, and also benefit from the pool. There are no
  57. 57. Page 57 of 88 other claimants to the funds. The pool of fund mutually invested in by investors is the mutual fund. A mutual fund's business is to invest the funds thus collected, according to the wishes of the investors who created the pool. In many markets these wishes are articulated as "investment mandates". Usually, the investors appoint professional investment managers, to manage their "product", and offer it for investment to the investor. A Mutual fund belongs to the investors who have pooled their funds. The ownership of the mutual fund in the hands of the investors. Investment professional and other service providers, who earn a fee for their services, from the fund, manage the mutual fund. The researcher had done a comparison of FD, FI Bonds and Mutual funds in terms of accessibility, tenor, tax benefit, liquidity, convince and transparency and found that Mutual funds give good returns to the investors. T FDs FI Bonds Mutual Fund Accessibility Low Low Low Tenor Fixed (medium) Fixed (Long) No lock in period Tax Benefit None Under section 80C None Liquidity Low Very Low None Convince Medium Tedious Very High Transparency None None Very High
  58. 58. Page 58 of 88 The researcher did not collect any first hand data from the individuals/investors, and her research is based only on the research of how Mutual Funds have evolved over the years and how the Government policies have impacted its growth in our country. She has concluded by saying, ‘’ So, if you are looking for an investment product that offers you low risk of capital loss and the potential to earn reasonable returns in the uncertain environment of today, HDFC Multiple Yield Fund might be the right fund for you.’’. It looks like she had contacted the HDFC Asset Management Company to do her research and she wants to advertise about HDFC Mutual Funds. Source: In the fourth research, where the topic is ‘’ WORKING PAPERS ON INTERNATIONAL INVESTMENT’’. Investment Patterns in a Longer-Term Perspective, the researcher Stephen Thomsen has focused on long-term patterns and has demonstrated how FDI (Foreign Direct Investment) has evolved from an activity largely undertaken by large multinational enterprises (MNEs) located in a handful of countries into a global phenomenon. Both trade and investment have grown rapidly in the past five years relative to economic growth more broadly. There have been periods of rapid FDI growth before, such as at the beginning and end of the 1980s, which were subsequently interrupted by economic recessions in major economies. The upward trend in FDI flows can also be interrupted temporarily by a decline in global growth. Like any form of investment, FDI is affected by the business cycle. Slower growth in home countries reduces investor profits at home which could have been used for acquisitions abroad. Figure 2 compares growth in OECD inflows with real growth in OECD countries since 1971. Economic growth influences both the “supply” and “demand” for FDI. Slower growth in the home country reduces both earnings and equity prices and hence limits the pool of capital available for expansion abroad. Similarly, recession in host countries lowers the short-term profitability of a potential investment.
  59. 59. Page 59 of 88 Cross-border mergers and acquisitions (M&As) are estimated to account for no less than 60 per cent of the total value of global investments, or 80 per cent of FDI in the United States and 85 per cent in Australia. To conclude what we can say is evidence on long-term trends suggests that the 1990s represented not so much a watershed as an acceleration of trends already underway. Many firms from developing countries are now important foreign investors in their own right. We cannot use this study much as a literature review, because it does not focus on individual investors. It focuses on the trends of investment patterns of large companies and midsized companies in different geographies and different economic status. In the fifth research, where the topic is ‘’ On Being a Woman: How Our Differences Shape Our Investment Techniques, the researcher Nicole Alper has done a brief study of the investment patterns of women and how they are different from the investment patterns of men. She has not done any elaborate research of the trends; neither did she collate data via sample questionnaires. However I wanted to include this in our research because it deals with a different segment of the society, ‘’Women’’. According to Ruth Hayden, author of How to Turn Your Life Around: The Money Book For Women, many of the more appealing "female" characteristics, such as patience, tenacity, and pragmatism make us better investors than men, once we actually get started. "Women have an intuitive sense. They are practical and understand that things work in stages and are therefore comfortable with volatility. And once they're in the market, they'll stay put." If a woman's patience is her virtue, then riding out the peaks and valleys of an ever-changing market should be her pay off. After all, according to most financial planners, it is those investors who stay in it for the long-term who reap the full benefits of the market. Women normally do not believe in rapid return philosophy. They do not invest in risky instruments which might yield profits overnight; however sometimes lose out on lucrative opportunities.