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A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
A project report on investment strategies and portfolio management at standard chartered bank
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A project report on investment strategies and portfolio management at standard chartered bank

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A project report on investment strategies and portfolio management at standard chartered bank

A project report on investment strategies and portfolio management at standard chartered bank

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  • 1. Projectsformba.blogpsot.com A PROJECT REPORT On “INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENT” Prepared for the partial fulfillment of the continuous evaluation of the summer internship project of semester III MBA (General) class of 2009 SUBMITTED BY: SUBMITTED TO: AREA SALES MANAGER STANDARD CHARTERED BANK 1
  • 2. Projectsformba.blogpsot.com ACKNOWLEDGEMENTI would like to express my gratitude to almighty God without whoseblessing I wouldn’t have been able to take initial step in this research.Words are insufficient to express my gratitude to …………….,myindustry guide for his guidance and support in preparing this project.I would also like to thank my faculty guide whose support andsuggestions has helped me to complete this project successfully.My sincere thanks to all those people who gave me their valuabletime and input by filling my questionnaires.Finally I would like to thank my parents, family members and friendsfor their support. 2
  • 3. Projectsformba.blogpsot.com DECLARATIONI hereby declare that the work presented in the project report, titled‘Investment Strategies and Portfolio Management’ was carried out byme as a part of MBA curriculum during 8 weeks summer trainingprogram in the 3rd semester. The report is an authentic record of mywork carried out under the guidance of ………………… in StandardChartered Bank. It is further declared that the report has not beensubmitted earlier for any other degree or diploma. 3
  • 4. Projectsformba.blogpsot.com PREFACEIndia is a developing country and we all know that banking sector plays avery important role. In development with the increasing use of banking andfinance in every field, new trends in their technology and modern use arebeing evolved day to day to meet the requirements. In fact “BANKING” hasbecome the need of today.The purpose of PROJECT REPORT is to expose the students in the marketand in the field of banking, finance and investments and to develop theability in the students to deal with all types of customers.Preparing project report in the summer vacations and under going thesummer training is the indispensable part of the college period. It providesthe opportunity to review what we have gained in the training period andalso provides the way to convey the knowledge and ideas to others.The present project provides the information on the “STANDARDCHARTERED BANK”.Learning is not possible in solitude and has to have the support and ableguidance of some people around us in various roles and capacities. Thesatisfaction and euphoria that accompanies the successful completion of anytask would be incomplete without the mention of the people who made itpossible because success is the epitome of hard work, undeterred missionaryzeal, fast determination, and consideration.Therefore, we consider it a pleasant duty to express our heartiestappreciation, gratitude, and indebtedness to our project guide Mr. NitishDipankar for his keen interest, sincere extortion, invaluable and pain takingexcellent guidance, continuous calm endurance, inspiration andencouragement during each phase of the present project. 4
  • 5. Projectsformba.blogpsot.com EXECUTIVE SUMMARY In this project, I have to study the most important products of banking industry i.e. Savings account, Insurance and Mutual Funds . After gaining appropriate knowledge of these products, I have to promote the products of Standard Chartered to the customers and try to convince them to buy the products via explaining them its benefits. I also have to prepare a questionnaire in order to understand the customer psychology of investments and also get relevant information required in the project. 5
  • 6. Projectsformba.blogpsot.com INDEX TITLE PAGE NO.CHAPTER–1 “INTRODUCTION” 7 1.1History of Banking Industry 8 1.2 History of Standard Chartered Bank 15 1.3 Introduction of the topic 29CHAPTER-2 “RESEARCH METHODOLOGY” 33CHAPTER-3 “DATA COLLECTION” 35 3.1 Sources of data collection 36 3.2 Products of Standard Chartered -Savings Account 36 - ULIP 40 -Mutual Funds 47CHAPTER- 4 “ANALYSIS AND INTERPRETATION” 50CHAPTER- 5 “CONCLUSION” 76CHAPTER- 5 “APPENDIX” 78REFERENCES 80 6
  • 7. Projectsformba.blogpsot.com CHAPTER 1 “INTRODUCTION” 7
  • 8. Projectsformba.blogpsot.com1.1 Overview of the Banking SystemUntil the 1950s, banking in India was carried on by a large number ofbanks, many of them quite small. India is still primarily an agriculturalcountry, with an economic and social structure based largely on thevillage. The integration of banking has been impeded by poorcommunications, by illiteracy, and by the barriers of language andcaste.Modern banking in India is said to be developed during the Britishera. In the first half of the 19th century, the British East IndiaCompany established three banks – the Bank of Bengal in 1809, theBank of Bombay in 1840 and the Bank of Madras in 1843. But in thecourse of time these three banks were amalgamated to a new bankcalled Imperial Bank and later it was taken over by the State Bank ofIndia in 1955. Allahabad Bank was the first fully Indian owned bank.The Reserve Bank of India was established in 1935 followed by otherbanks like Punjab National Bank, Bank of India, Canara Bank andIndian Bank.In 1969, 14 major banks were nationalized and in 1980, 6 majorprivate sector banks were taken over by the government. Today,commercial banking system in India is divided into followingcategories.Central BankThe Reserve Bank of India is the central Bank that is fully owned bythe Government. It is governed by a central board (headed by aGovernor) appointed by the Central Government. It issues guidelines 8
  • 9. Projectsformba.blogpsot.comfor the functioning of all banks operating within the country.Public Sector Banks a. State Bank of India and its associate banks called the State Bank Group b. 19 nationalized banks c. Regional rural banks mainly sponsored by public sector banksPrivate Sector Banks a. Old generation private banks b. New generation private banks c. Foreign banks operating in India d. Scheduled co-operative banks e. Non-scheduled banksCo-operative SectorThe co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories. a. State co-operative Banks b. Central co-operative banks c. Primary Agriculture Credit SocietiesDevelopment Banks/Financial Institutions • IFCI • IDBI • ICICI • IIBI 9
  • 10. Projectsformba.blogpsot.com • NABARD • Export-Import Bank of India • National Housing Bank • Small Industries Development Bank of India • North Eastern Development Finance CorporationBanking in India is so convenient and hassle free that one (individual,groups or whatever the case may be) can easily process transactionsas and when required. The most common services offered by banksin India are as follow: • Bank accounts: It is the most common service of the banking sector. An individual can open a bank account which can be either savings, current or term deposits. • Loans: You can approach all banks for different kinds of loans. It can be a home loan, car loan, personal loan, loan against shares and educational loans. • Money Transfer: Banks can transfer money from one corner of the globe to the other by issuing demand drafts, money orders or cheques. • Credit and debit cards: Most banks offer credit cards to their customers which can be used to purchase products and services, or borrow money. • Lockers: Most banks have safe deposit lockers which can be used by the customers for storing valuables, like important documents or jewellery.Banking service for NRIs:Non Resident Indians or NRIs can open accounts in almost all Indianbanks. The three types of accounts that NRIs can open are: 10
  • 11. Projectsformba.blogpsot.com o Non-Resident (Ordinary) Account - NRO A/c o Non-Resident (External) Rupee Account - NRE A/c o Non-Resident (Foreign Currency) Account - FCNR A/cReserve Bank of India (RBI)The central bank of the country is the Reserve Bank of India (RBI).Reserve Bank of India was nationalised in the year 1949. The bodyof the central bank consists of the Governor and four DeputyGovernors, one Government official from the Ministry of Finance, tennominated Directors by the Government to give representation toimportant elements in the economic life of the country, and fournominated Directors by the Central Government to represent the fourlocal Boards with the headquarters at Mumbai, Kolkata, Chennai andNew Delhi. Local Boards consist of five members each CentralGovernment appointed for a term of four years to represent territorialand economic interests and the interests of co-operative andindigenous banks. The need for bank is: • To regulate the issue of banknotes • To maintain reserves with a view to securing monetary stability and • To operate the credit and currency system of the country to its advantage.Functions of Reserve Bank of IndiaThe Reserve Bank of India performs all the important functions of acentral bank.Bank of IssueThe Bank has the sole right to issue bank notes of all denominations.The distribution of rupee notes and coins and small coins all over thecountry is undertaken by it as agent of the Government. The Reserve 11
  • 12. Projectsformba.blogpsot.comBank has a separate Issue Department which is concerned with theissue of currency notes. The Reserve Bank of India is required tomaintain gold and foreign exchange reserves of Ra. 200 crores, ofwhich at least Rs. 115 crores should be in gold. The system as itexists today is known as the minimum reserve system.Banker to GovernmentThe second important function of the Reserve Bank of India is to actas Government banker, agent and adviser. The Reserve Bank isagent of Central Government and of all State Governments in Indiaexcepting that of Jammu and Kashmir on all monetary and bankingmatters. The Reserve Bank has the obligation to transactGovernment business, via. to keep the cash balances as depositsfree of interest, to receive and to make payments on behalf of theGovernment and to carry out their exchange remittances and otherbanking operations. It makes loans and advances to the States andlocal authoritiesBankers Bank and Lender of the Last ResortThe Reserve Bank of India acts as the bankers bank. According tothe provisions of the Banking Companies Act of 1949, everyscheduled bank was required to maintain with the Reserve Bank acash balance equivalent to 5% of its demand liabilites and 2 per centof its time liabilities in India. By an amendment of 1962, thedistinction between demand and time liabilities was abolished andbanks have been asked to keep cash reserves equal to 8.25% percent of their aggregate deposit liabilities. The minimum cashrequirements can be changed by the Reserve Bank of India.The scheduled banks can borrow from the Reserve Bank of India onthe basis of eligible securities or get financial accommodation intimes of need or stringency by rediscounting bills of exchange. Sincecommercial banks can always expect the Reserve Bank of India to 12
  • 13. Projectsformba.blogpsot.comcome to their help in times of banking crisis the Reserve Bankbecomes not only the bankers bank but also the lender of the lastresort.Controller of CreditThe Reserve Bank of India is the controller of credit i.e. it has thepower to influence the volume of credit created by banks in India. Itcan do so through changing the Bank rate or through open marketoperations. It can ask any particular bank or the whole bankingsystem not to lend to particular groups or persons on the basis ofcertain types of securities.The Reserve Bank of India is armed with many more powers tocontrol the Indian money market. Each scheduled bank must send aweekly return to the Reserve Bank showing, in detail, its assets andliabilities. This power of the Bank to call for information is alsointended to give it effective control of the credit system. The ReserveBank has also the power to inspect the accounts of any commercialbank.The Reserve Bank of India, therefore, has the following powers:(a) It holds the cash reserves of all the scheduled banks.(b) It controls the credit operations of banks through quantitative andqualitative controls.(c) It controls the banking system through the system of licensing,inspection and calling for information.(d) It acts as the lender of the last resort by providing rediscountfacilities to scheduled banks.Supervisory functionsIn addition to its traditional central banking functions, the Reservebank has certain non-monetary functions of the nature of supervision 13
  • 14. Projectsformba.blogpsot.comof banks and promotion of sound banking in India. RBI has widepowers of supervision and control over commercial and co-operativebanks, relating to licensing and establishments, branch expansion,liquidity of their assets, management and methods of working,amalgamation, reconstruction, and liquidation. The RBI is authorisedto carry out periodical inspections of the banks and to call for returnsand necessary information from them. The supervisory functions ofthe RBI have helped a great deal in improving the standard ofbanking in India to develop on sound lines and to improve themethods of their operationPromotional functionsThe Bank performs a variety of developmental and promotionalfunctions, which, at one time, were regarded as outside the normalscope of central banking. The Reserve Bank was asked to promotebanking habit, extend banking facilities to rural and semi-urbanareas, and establish and promote new specialised financingagencies. Accordingly, the Reserve Bank has helped in the setting upof the IFCI and the SFC; it set up the Deposit Insurance Corporationin 1962, the Unit Trust of India in 1964, the Industrial DevelopmentBank of India also in 1964, the Agricultural Refinance Corporation ofIndia in 1963 and the Industrial Reconstruction Corporation of India in1972. These institutions were set up directly or indirectly by theReserve Bank to promote saving habit and to mobilise savings, andto provide industrial finance as well as agricultural finance. The RBIhas set up the Agricultural Refinance and Development Corporationto provide long-term finance to farmers. 14
  • 15. Projectsformba.blogpsot.com1.2 History of Standard CharteredThe Standard Chartered Group was formed in 1969 through amerger of two banks: The Standard Bank of British South Africafounded in 1863, and the Chartered Bank of India, Australia andChina, founded in 1853.Both companies were keen to capitalize on the huge expansion oftrade and to earn the handsome profits to be made from financing themovement of goods from Europe to the East and to Africa.The Chartered Bank • Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853 • Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859 • Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama • Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869, and the extension of the telegraph to China in 1871 • In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank’s Cyprus Branches. This established a presence in the GulfThe Standard Bank • Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863 15
  • 16. Projectsformba.blogpsot.com • Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885 • Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices • In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra LeoneIn 1969, the decision was made by Chartered and by Standard toundergo a friendly merger. All was going well until 1986, when ahostile takeover bid was made for the Group by Lloyds Bank of theUnited Kingdom. When the bid was defeated, Standard Charteredentered a period of change. Provisions had to be made against thirdworld debt exposure and loans to corporations and entrepreneurswho could not meet their commitments. Standard Chartered began aseries of divestments notably in the United States and South Africa,and also entered into a number of asset sales.From the early 90s, Standard Chartered has focused on developingits strong franchises in Asia, the Middle East and Africa using itsoperations in the United Kingdom and North America to providecustomers with a bridge between these markets. Secondly, it wouldfocus on consumer, corporate and institutional banking, and on theprovision of treasury services – areas in which the Group hadparticular strength and expertise.In the new millennium we acquired Grindlays Bank from the ANZGroup and the Chase Consumer Banking operations in Hong Kong in2000. 16
  • 17. Projectsformba.blogpsot.comStandard Chartered – leading the wayStandard Chartered PLC is listed on both the London StockExchange and the Hong Kong Stock Exchange and is consistentlyranked in the top 25 among FTSE-100 companies by marketcapitalization.Standard Chartered has a history of over 150 years in banking andoperates in many of the worlds fastest-growing markets with anextensive global network of over 1,400 branches (includingsubsidiaries, associates and joint ventures) in over 50 countries inthe Asia Pacific Region, South Asia, the Middle East, Africa, theUnited Kingdom and the Americas.As one of the worlds most international banks, Standard Charteredemploys almost 60,000 people, representing over 100 nationalities,worldwide. This diversity lies at the heart of the Banks values andsupports the Banks growth as the world increasingly becomes onemarket.With strong organic growth supported by strategic alliances andacquisitions and driven by its strengths in the balance and diversity ofits business, products, geography and people, Standard Chartered iswell positioned in the emerging trade corridors of Asia, Africa and theMiddle East.Standard Chartered derives over 90 per cent of profits from Asia,Africa and the Middle East. Serving both Consumer and WholesaleBanking customers worldwide, the Bank combines deep localknowledge with global capability to offer a wide range of innovativeproducts and services as well as award-winning solutions. 17
  • 18. Projectsformba.blogpsot.comTrusted across its network for its standard of governance andcorporate responsibility, Standard Chartered takes a long term viewof the consequences of its actions to ensure that the Bank builds asustainable business through social inclusion, environmentalprotection and good governance.Standard Chartered is also committed to all its stakeholders by livingits values in its approach towards managing its people, exceedingexpectations of its customers, making a difference in communitiesand working with regulators.Establishment of Standard Chartered Bank around the worldCountry Year Established Country Year EstablishedUnited Kingdom 1853 Australia 1964China, India, Sri 1858 Mexico, Oman 1968LankaHong Kong, 1859 Peru 1973SingaporeIndonesia, 1863 Jersey 1978PakistanPhilippines 1872 Brazil 1979Malaysia 1875 Venezuela 1980 Falkland Islands,Japan 1880 1983 MacauZimbabwe 1892 Taiwan 1985The Gambia,Sierra Leone, 1894 Cameroon 1986ThailandGhana 1896 Nepal 1987Botswana 1897 Vietnam 1990 Cambodia, SouthUSA 1902 1992 AfricaBangladesh 1905 Iran 1993 18
  • 19. Projectsformba.blogpsot.comZambia 1906 Colombia 1995Kenya 1911 Laos, Argentina 1996Uganda 1912 Nigeria 1999Tanzania 1917 Lebanon 2000Bahrain 1920 Cote d’Ivoire 2001Jordan 1925 Mauritius 2002Korea 1929 Turkey 2003Qatar 1950 Afghanistan 2004Recent strategic alliances and acquisitions2005 and 2006 were historic years for us as we achieved several milestoneswith a number of strategic alliances and acquisitions that will extend ourcustomer or geographic reach and broaden our product range. • We completed, rebranded and successfully integrated SC First Bank in Korea, which to date is the biggest acquisition in our history. • We completed full integration between Standard Chartered Bank Thailand and Standard Chartered Nakornthon Bank in October. • We formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East. • We acquired stakes in ACB Vietnam and Travelex. • We acquired the business operations of American Express Bank in Bangladesh. • We acquired a stake in Bohai Bank in Tianjin, China, making us the first foreign bank to be allowed a stake in a local bank in China. • We acquired a 25% stake in First Africa Group Holdings in June 2006. • We acquired an additional 26% stake in Permata Bank through our consortium with PT Astra International, thus giving the consortium a total stake of 89%. • We acquired Union Bank in Pakistan in September 2006 and we have successfully rebranded all branches. 19
  • 20. Projectsformba.blogpsot.com • We launched a tender offer in the end of 2006 for 100% in Hsinchu International Bank, Taiwan.PERSONAL BANKING 1. Savings AccountSavings Exclusive Features AverageAccount Features Quarterly Balancea) aXcess This account i)Free Unlimited Rs. 10,000plus account provides Visa ATM unparalleled transactions. access to your money through a ii) FREE Doorstep variety of Banking. channels. iii) International Debit Card iv) Phone Banking v) Online Bankingb) No Frills It is designed to i)Free cheque Rs. 250Account meet you basic deposit at ant banking SCB branch or requirements ATM ii)Access your account from any branch of SCB iii)ATM card and 20
  • 21. Projectsformba.blogpsot.com Debit card iv)Phone banking v)Online bankingc)Parivaar It allows you to i)Maintain Rs. 25,000Account maintain your individual savings individual identity account with the while allowing you benefit of clubbing to tap your family’s balances in financial strength. grouped accounts. ii)Option of SIP that allows you to invest a fixed amount of money every month in specific portfolio. iii)Globally valid ATM-cum-Debit card. iv)Phone Banking v)Online Bankingd)Aasaan It is a basic, no i)No minimum Rs. 0Account maintenance and balance required. hassle free ii)Unlimited free savings account. access to SCB ATM’s. iii)International Debit Card iv)Phone Banking 21
  • 22. Projectsformba.blogpsot.com v)Online Banking 2. CREDIT CARDSStandard Chartered Bank offers a wide range of credit cards, eachtailored to satisfy an individual needs. 3. INSURANCE AND INVESTMENTSStandard Chartered Bank has a tie up with Bajaj Allianz Life InsuranceCompany and Royal Sundaram General Insurance to offer a variety ofproducts in order to cover all insurance requirements.They offer: o One-stop shopping for both life and general insurance protection o Comprehensive range of products to suit every stage of your life... from childhood to retirement o Dedicated insurance Financial Services Consultants from Bajaj Allianz Life Insurance Company to provide FREE Consultations to create customized insurance plans for youGreat Place to WorkStandard Chartered employs almost 60,000 people in 56 countriesand territories, representing over 100 nationalities. Demographicchanges, competition in our markets and our own rapid growthprovide a bigger challenge than ever to attract, develop and engageour employees to continue to deliver strong results. 22
  • 23. Projectsformba.blogpsot.comAs we grow, we believe our diverse and inclusive approach providesengaging opportunities for our employees to develop, both asindividuals and as part of a team. We are committed to creating ahealthy, safe and fulfilling work environment in which people cangrow, individuals can make a difference and teams can win.Our approach to managing people is underpinned by four principles: • A focus on managing talent to identify, reward and retain talented employees • Building a strengths-based approach by providing the skills to develop individuals and teams by focusing on peoples personal strengths • A commitment to drive employee engagement through the development of exceptional managers with the skills to identify and build talent • Creating a diverse and inclusive workplace that encourages our employees to achieve their potential and support our growthPriorities at Standard CharteredAt Standard Chartered, we believe that our future success dependson our ability to deliver a sustainable business. Our building asustainable business strategy will help us take a long-term view ofthe implications of everything we do. This means taking responsibledecisions that benefit our business, the economy, society and theenvironment – and build the trust of all our stakeholders.Our building a sustainable business strategy explicitly recognizesseven areas where we and our stakeholders believe we are mostlikely to make the greatest contribution to sustainability.They are: • Sustainable lending – making sure when we lend money we are aware of the environmental, social and governance risks 23
  • 24. Projectsformba.blogpsot.com attached to such decisions and that we take steps to address them • Tackling financial crime – making sure that we have the right systems in place to detect such things as fraud and money laundering and exceed, rather than simply meet, increasingly stringent legal requirements in this field • Access to financial services – making sure we develop new ways for those deprived of banking services to get proper access to finance so that they can improve their standard of living and economic independence • Responsible selling & marketing – making sure we treat customers fairly and set the highest standards in service and transparency • Protecting the environment – making sure we not only minimize our own direct impact on the environment but support others, such as customers, to do the same. We also want to support the development and commercialization of technologies and schemes that tackle environmental threats like climate change • Great place to work – making sure that with our people, who represent over 100 nationalities from over 50 countries, feel valued, included and engaged. Were determined to attract, develop and retain the best people and to leverage the strength the diversity of our people brings, which is an incomparable advantage • Community investment – making sure we involve our employees and utilise our core expertise, networks and resources to help communities develop and economies to growGovernance 24
  • 25. Projectsformba.blogpsot.comThe governance structure we have set up for Sustainability providesstrategic direction for the Bank and ensures we continue to makeprogress with our approach to sustainable development.The Corporate Responsibility and Community Committee sit at thetop of this structure alongside the Remuneration, Audit and Risk, andNomination Committees of our Board. It is supported by a GroupSustainability team, steering groups for specific programmes and ourbranches and offices in each country we operate in.The Committee is chaired by Mervyn Davies, the Group Chairman,and meets quarterly. It drives the Sustainability agenda at StandardChartered and is responsible for responding to issues coming out ofnew Sustainability legislation, regulation, stakeholder guidance andreporting and for making sure our activities are aligned with ouroverall business strategy. It also ensures we publish a Sustainabilityreport, supported by accurate data, each year, in line with bestpractice.A dedicated Sustainability team, based in the London office, supportsthe Committee, the Business and other Group functions. The role ofthe team is to talk with stakeholders, monitor good practice and flagup potential trends and emerging issues. It co-ordinates the collectionof data and is responsible for our annual Sustainability Review andweb site, participating in thought leadership events and raising ourSustainability profile outside the Bank.Nine Steering Groups or Committees put the Banks strategy intoaction, co-ordinate Group-wide initiatives and provide policyrecommendations to the Board, its various committees or theCorporate Responsibility and Community Committee. They are: • Strategic Sourcing and Vendor Management Committee • Diversity Council • Environmental Steering Group • Health and Safety Steering Group 25
  • 26. Projectsformba.blogpsot.com • Group Risk Committee • Reputation Risk Committees • Seeing is Believing Committee • Living with HIV Advisory Committee • Community Partnership BoardsBecause our business is spread across the globe in very differentmarket places, each Country Head is responsible for identifying andresponding to local Sustainability issues. It is the responsibility ofeach business unit to adhere to policies that have been set on aglobal basis. Where local standards exceed group set policies, thehigher standard is adopted.EngagementHelping stakeholders understand the way we operate and thechallenges we face is fundamental to making progress with ourbuilding a sustainable business strategy.Engagement is a word used by many organizations, but it meanssomething very specific to Standard Chartered. It is the way we goabout communicating with three distinct but interconnectedaudiences: • Our own employees – we want them to really understand what "Building a sustainable business" means • People and organizations that use or influence our products and services – we want to work closely with them to develop and promote sustainable services • People and organizations that have the power to make a wider difference – we want to use our geographic reach to promote the need for sustainable developmentWe have been working on our stakeholder engagement programmefor some years. Work in this area has recently increased as continueto build a clearer picture of our global stakeholder audience including 26
  • 27. Projectsformba.blogpsot.comgovernment departments and agencies, socially responsibleinvestors, academic institutions, business associations and non-governmental organisations. In 2006 we invited 60 of our keystakeholders to help us develop our building a sustainable businessstrategy. Their contributions – many of which are included in our2006 Sustainability Review – helped us decide what our sustainabledevelopment priorities should be.Building a truly relevant stakeholder network is challenging, however,it is extremely important that we continue to build our network in theyears ahead.One-Stop Range of Products and ServicesWe have a full range of foreign exchange and risk managementsolutions to meet the needs of clients across the world..Standard Chartered Alternate Investment GroupStandard Chartered Banks Alternate Investment Group focuses ondistressed and high-yield opportunities by investing in senior debt,mezzanine or equity instruments. In addition, it provide assetmanagement services to investment banks, financial institutions andvalue investors as well as advisory services to companies in financialdistress or requiring assistance with their capital structure.Our BusinessInvestments. Our investment program is aimed at both the primaryand secondary markets. We provide liquidity to the distressed andhigh yield market through the following: • Acquisition of distressed asset portfolios • Investments in loans and bonds 27
  • 28. Projectsformba.blogpsot.com • Offering priority loans (DIP), subordinated or mezzanine debt • Offering structured investments • Investments in equity • Investments in hybrid structuresAsset Management. We offer a range of services under assetmanagement including origination of investment opportunities, duediligence, loan servicing (monitoring and recovery) for single assetsand portfolio investments. The Bank has a successful track record ofmanaging and resolving non-performing loans.Corporate Advisory. We offer corporate advisory services tocompanies requiring capital structuring and to companies in financialdistress. Our range of services includes: • Assessment of strategic issues, ranging from corporate and capital structures to potential mergers and sale of businesses • Development and implementation of creative and comprehensive solutions to address clients various complex issues such as capital restructuring exercise • Assistance in implementing the appropriate debt and equity financing structureOur StrengthsProfessional Team. We have a large experienced team of skilledindividuals who have developed a reputation for competency invaluation, due diligence, acquisition and asset management in thedistressed and high yield market. Our local market knowledge andworkout skills offer value to our clients.Network. We leverage Standard Chartered Banks network in ourcore markets to provide us on-the-ground knowledge and earlyaccess to situations. The Banks client franchise offers investmentopportunities while Alternate Investment Groups strong relationships 28
  • 29. Projectsformba.blogpsot.comwith investment banks, financial institutions, brokers and valueinvestors provides a valuable source of investors. We utilise superiorinformation to maximise value for our clients.Positioning. The distressed and high-yield markets in Asia,Africaand the Middle East offer attractive revenue generating opportunities.The Bank is well positioned in these markets to enable AlternateInvestment Group to deliver value to the Bank and our clients.1.3INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENTAbout InvestmentIt is the money that you save and channelize into sources that givesyou return i.e. use of money in hope of making more money.One needs to invest to:  Earn returns on idle resources  Generate a specified sum of money for a specific goal in life  Make a provision for a uncertain future  To meet the cost of inflationThe aim of investment should be to provide a return above theinflation rate and also to ensure that the investment does notdecrease in value.There are various options available for of investment: o Physical assets like real estate, gold/jewellery, commodities etc o Financial assets like fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund, securities market related instruments like shares, bonds, debentures etc. 29
  • 30. Projectsformba.blogpsot.comTypes of Investments (period specific) 1. Short Term Investment- The investment period is usually less than a year and it provides liquidity to the investor. a) Savings Bank Account- It is most often the first banking product that people use. This offers them interest (4%-5% p.a.) which is better than idle money. b) Money Market of Liquid Funds- These are specialized form of mutual funds that invest in extremely short-term fixed income instruments and also provides liquidity. It focuses on protecting your capital and then on making returns. These are a better source of investment than savings account but lower than fixed deposits. c) Fixed Deposits with Banks- Also known as term deposits and the minimum investment period with banks FD is 30 days. It is for those investors who are risk averse and it provides higher rate of return than money market instruments. 2. Long Term Investment- The investment period is more than a year and the returns are much higher than short term investments. Long term instruments are less liquid than short term investments. a) Post office savings- The post office monthly income scheme is a risk saving instrument, which can be availed through any post office. It provides an interest rate of 8% per annum, which is paid monthly, minimum amount, which can be invested is Rs. 1,000 and maximum is Rs. 3, 00,000. It has a maturity period of 6 years, premature 30
  • 31. Projectsformba.blogpsot.com withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principle amount if withdrawn prematurely. b) Public Provident Fund- A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money, tax benefits can be availed for the amount invested and interested accrued is tax free. c) Company Fixed Deposits- These are short- term [six months] to medium- term [three to five years] borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semiannually or annually, there can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period, the rate of interest varies between 6- 9 % per annum for company FDs, the interest received is after deduction of taxes. d) Bonds- It is a fixed income [debt] instrument issued for a period of more than one year with purpose of raising capital, the central of state government corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date called the maturity date. e) Mutual funds- These are funds operated by an investment company which raises money from the public and invests in a group of assets [shares, debentures etc] in accordance with a stated set of objectives .It is a 31
  • 32. Projectsformba.blogpsot.com substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and redeemed by the fund management company based on the fund’s Net Asset Value [NAV], which is determined at the end of each trading session. Mutual funds are usually long terms investment vehicle though there some categories of mutual funds, such as money market mutual funds which are short term instruments.About PortfolioA portfolio is a combination of different investment assets mixed andmatched for the purpose of achieving an investor’s goals. A portfoliomay contain items like shares, debentures, bonds, any asset youown, mutual funds to items such as gold, art, real estate.One must have variety of investments within a portfolio in order todiversify market risk. The portfolio should be designed in such a waythat it minimizes the impact of one security on overall portfolioperformance.Advantages of having a Diversified portfolio:  Decline in any one security will not affect the entire portfolio  Investments across various types of assets and markets will reduce the risk of entire portfolio getting affected by the adverse returns of any single asset class. 32
  • 33. Projectsformba.blogpsot.com CHAPTER – 2 “RESEARCH METHODOLOGY”Research Methodology 33
  • 34. Projectsformba.blogpsot.comOBJECTIVE  To understand the basics of investment and various alternatives that are available with the investor.  Also to understand the customer psychology of investments and what are the various objectives behind the investment.TYPE OF RESEARCH Descriptive in nature- The descriptive research design is one that describes the things such as the market potential for a product or the demographics and attitudes of consumers who buy the product. It includes questionnaire survey and fact finding inquiry.SAMPLE DESIGN • SAMPLE UNIT: Delhi and NCR region • SAMPLE SIZE: 50 • SAMPLE SELECTION: Random, convenientDATA COLLECTION TOOLS 1. Primary data. The major source of primary data was the information and questionnaire collected from the investors and the customers. The information collected from the journals and the trainer can also be referred to as the primary data. 2. Secondary data. The major source of secondary data was the reference books and company’s website. The company’s articles and magazines were also referred to for the information. 34
  • 35. Projectsformba.blogpsot.com CHAPTER-3 “DATA COLLECTION” 35
  • 36. Projectsformba.blogpsot.com3.1 Sources of Data CollectionPRIMARY DATA COLLECTIONPrimary data was collected through questionnaires. Refer to theappendix for the data.SECONDARY DATA COLLECTIONSecondary sources through – • Internet • Articles • papers and • books3.2 Products of Standard Chartered1. SAVINGS ACCOUNTa. AXcessPlusGet instant cash at over 20,000 ATMs across India and over10,00,000 ATMs across the world through the Visa network. And geta globally valid Debit Card that lets you shop at over 3,26,000 outletsin India and at over 14 million outlets across the world.• FREE Unlimited Visa ATM transactions* (Cash withdrawal and balance enquiry)• FREE Standard Chartered Bank branch access across the county• FREE Doorstep Banking* 36
  • 37. Projectsformba.blogpsot.com• FREE Demand Drafts/Pay Orders* (drawn at SCB locations)• FREE Payable at Par ChequebookOther features available are;• International Debit Card• Phone Banking• NetBanking and• Extended Banking Hoursb. ParivaarParivaar is much more than a regular Savings Account. It allows youmaintain your individual identity while allowing you to tap yourfamilys financial strength. It also offers attractive insurance options toprotect against unforeseen events and the facility of SystematicInvestment Plan (SIP), a unique long-term wealth building tool. • Your family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts. • Anytime, anywhere access to accounts through ATMs, Phone Banking and InterNet banking. • Option of Systematic Investment Plan (SIP), a well known long term wealth building tool that allows you to invest a fixed amount of money every month in specific mutual funds. This comes with a direct debit facility and avoids the need to remember dates and write cheques every month. • Globally valid ATM-cum-debit card can be used at 55,000 merchant outlets in India and 12 million outlets worldwide.c. No Frills Account 37
  • 38. Projectsformba.blogpsot.comYou can now open an account with Standard Chartered Bank, withan average quarterly balance of as low as Rs. 250. What’s more –you can avail of Anywhere Banking, by which you can access youraccount from any branch of Standard Chartered Bank in India. • Quarterly Average Balance, as low as Rs. 250. • ATM card & Debit Card available.. • 4 free transactions per month at any Standard Chartered Bank channel (Internet banking, Phone Banking, ATM & Branch).. • Anywhere banking – Access your account from any branch of Standard Chartered Bank. • Access to Phone Banking and Internet Banking • Free Cheque deposit at any SCB Branch or ATM.Eligibility criteriaThis account is available to individual Resident Indian customers.Account may be opened after being properly introduced in a mannerapproved by the Bank.d. AaSaan • No Minimum Balance requirement • Free unlimited access to any SCB branch across the country for Customer-in-person • Unlimited Free access to Standard Chartered Bank ATMs • Upto 4 free cash withdrawal transactions per month at other domestic VISA ATMs* • Nominal quarterly fee of Rs. 100 (reversed if the Average Balance in the quarter is Rs 10,000 or more)Other Facilities 38
  • 39. Projectsformba.blogpsot.com • International Debit Card • Phone banking • NetBanking • Extended banking hours* • Locker facility* • Doorstep banking To open an aaSaan account, you have to initially fund the account with Rs. 10,000 (Rs. Ten Thousand) COMPARISION OF SAVINGS ACCOUNTSchedule of services provided by various bank - A Comparison KotakFeatures ICICI HDFC Mahindra ABN Amro StanChart FlexName of saving accounts Saving Regular Edge Advantage a Saving Plus Pro Flex Plus S SavingsMax Ace Flex Prvilage aa No Advantage -Average Quarterly Balance 10,000 Regular - 5,000 Edge - 10,000 0 aXc Plus - 10,000 Pro - 20,000 Plus - 10,000 Super Privilage - Max - 25,000 Ace - 75,000 25,000 a NoRate of Interest 3.50% 3.50% 3.50% 3.50%Annual Maintenance charges 750 Regular - 750 Edge - 750 750 aXce Plus - 750-1000 Pro - 750 Supe Max - 1000-1500 Ace - 1200 No 39
  • 40. Projectsformba.blogpsot.comIssue of debit card Yes Yes Yes YesAnnual Debit card charges 99 500 Global - 100 180 + Taxes Sho GDraft Charges (per thosand) 40-55 Upto 25,000 - NA 50 55 UTI & 5ATM Swap charges Free Andhra Bank & HDFC-free transaction Free from any SBI-NA bank- FreeMobile banking Free Free Free FreeInternet banking Free Free Free FreePhone banking Free Free Free FreeCheque book Free At Par Free 2/leaf (at par) At Par Free 2. ULIP- Unit Linked Insurance Plan Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance. 40
  • 41. Projectsformba.blogpsot.comKey Benefits of Life InsuranceLife insurance, especially tailored to meet financial needsNeed for Life InsuranceToday, there is no shortage of investment options for a person tochoose from. Modern day investments include gold, property, fixedincome instruments, mutual funds and of course, life insurance.Given the plethora of choices, it becomes imperative to make theright choice when investing your hard-earned money. Life insuranceis a unique investment that helps you to meet your dual needs -saving for lifes important goals, and protecting your assets.Asset ProtectionFrom an investors point of view, an investment can play two roles -asset appreciation or asset protection. While most financialinstruments have the underlying benefit of asset appreciation, lifeinsurance is unique in that it gives the customer the reassurance ofasset protection, along with a strong element of asset appreciation.The core benefit of life insurance is that the financial interests ofone’s family remain protected from circumstances such as loss ofincome due to critical illness or death of the policyholder.Simultaneously, insurance products also have a strong inbuilt wealthcreation proposition. The customer therefore benefits on two countsand life insurance occupies a unique space in the landscape ofinvestment options available to a customer.Goal based savingsEach of us has some goals in life for which we need to save. For ayoung, newly married couple, it could be buying a house. Once, theydecide to start a family, the goal changes to planning for the 41
  • 42. Projectsformba.blogpsot.comeducation or marriage of their children. As one grows older, planningfor ones retirement will begin to take precedence.Clearly, as your life stage and therefore your financial goals change,the instrument in which you invest should offer correspondingbenefits pertinent to the new life stage.Life insurance is the only investment option that offers specificproducts tailormade for different life stages. It thus ensures that thebenefits offered to the customer reflect the needs of the customer atthat particular life stage, and hence ensures that the financial goals ofthat life stage are met.The table below gives a general guide to the plans that areappropriate for different life stages. Life Insurance Life Stage Primary Need Product Young & Wealth creation Asset creation Single plans Wealth creation Young & Asset creation and mortgage Just married & protection protection plans Education Childrens insurance, Married with education, mortgage kids Asset creation protection & and protection wealth creation plans Planning for Retirement Middle aged retirement & solutions & with grown asset mortgage up kids protection protection Across all Health plans Health Insurance 42
  • 43. Projectsformba.blogpsot.com life-stagesStandard chartered Bank has a tie up with Bajaj Allianz LifeInsurance to sell their insurance plans.The Bajaj Allianz New UnitGain Super comes with a host of featuresto allow you to have the best of all worlds - Protection andInvestments. It enables every participant to create a solid financialprotection and savings plan for himself and his family. In this way, asa participant in the Bajaj Allianz New UnitGain Super Plan, you cansecure your well being and accumulate savings towards financialindependence and a comfortable retirement.They offer the best in financial planning. One can now avail of thetwin benefit of risk protection as well as getting market-linked returnon your investment. An insurance plan that works round the clock tomeet the changing requirements in life – additional protection, moremoney to invest, sudden requirement of cash or a steady post-retirement income. With Bajaj Allianz New UnitGain Super, you caninvest in one life insurance plan that can take care of all yourchanging requirements. This plan has been designed to provide yourfamily with higher financial assistance should anything unfortunatewere to happen to you as well as flexibility, so that you do not have toworry about your changing needs.The Key Features of the New UnitGain Super Plan are: 43
  • 44. Projectsformba.blogpsot.com• It is a unit linked plan with minimum term of 10 years and maximummaturityage 70• Guaranteed death benefit• You have the option to choose a host of additional benefits (Riders):UL AccidentalDeath Benefit, UL Accidental Permanent Total/Partial DisabilityBenefit, UL Critical Illness Benefit and UL Hospital Cash Benefit• It provides you with an easy, regular contribution mechanism toassist you in accumulating funds. Four different options to choosefrom – Silver, Gold, Diamond & PlatinumOptions Premium RangeSilver >=Rs 25,000 but < Rs 50,000Gold >=Rs 50,000 but < Rs 100,000Diamond >=Rs 100,000 but < Rs 500,000Platinum >=Rs 500,000 & Above• You can adopt your own investment strategy to grow the fundscontributed.• Choice of 6 investment funds today with flexible investmentmanagement: you can change funds at any time and also invest inthe newer funds that would be introduced from time to time.Investment Options:Bajaj Allianz New UnitGain Super offers you a choice of 3 funds. Youcan choose to invest fully in any one fund or allocate your premiumsinto the various funds in a proportion that suits your investmentneeds.The six funds offered are as under: 44
  • 45. Projectsformba.blogpsot.com1.Equity Index Fund II - Risk Profile – High : The investmentobjective of this fund is to provide capital appreciation throughinvestment in equities forming part of NSE NIFTY.FUND EXPOSUREBank Deposits and Money Market 0%-15%InstrumentsEquities 85%-100 %2.Equity Growth Fund- Risk Profile – Very High : The investmentobjective of this fund is to provide capital appreciation throughinvestment in selected equity stocks that have the potential for capitalappreciation.FUND EXPOSUREBank Deposits and Money Market 0%-20%InstrumentsEquities 80%-100 %3.Accelator Mid-Cap Fund- Risk Profile- Very High: The objectiveof this fund is to achieve capital appreciation by investing in adiversified basket of mid cap stocks and large cap stocks.FUND EXPOSUREBank Deposits and Money Market 0%-20%InstrumentsNot more than 20% of the 80%-100apportioned premium can be put %in this fund 45
  • 46. Projectsformba.blogpsot.com4. Asset Allocation Fund- Risk Profile- High: the objective of thisfund will be to realize a level of total income, including current incomeand capital appreciation, which is consistent with reasonableinvestment risk. • It allows for flexibility in allocating assets between equities, bonds and cash. It will help to capitalize the changing financial markets and economic conditions. • The funds will adjust its weights in equity, debt and cash depending on the relative attractiveness of each asset class.FUND EXPOSUREEquities 0%-100 %Debt 0%-100 %Money Market Instruments 0%-20%5.Liquid Fund- Risk Profile- Low: The objective of this fund is tohave a fund that protects invested capital through investment in liquidmoney market and short-term instruments.FUND EXPOSUREBank Deposits and Money Market 100%InstrumentsNot more than 20% of theapportioned premium can be putin this fund6.Bond Fund- Risk Profile- Moderate: The objective of this fund is toprovide accumulation of income through investment in high qualityfixed income securities.FUND EXPOSURE 46
  • 47. Projectsformba.blogpsot.comBank Deposits and Money Market 0%-20%InstrumentsG-Secs, Bonds and Fixed 80%-100Deposits %3. MUTUAL FUNDS Mutual Funds are a pool of funds to diversify risk. These are funds operated by an investment company which raises money from the public and invests in a group of assets [shares, debentures etc] in accordance with a stated set of objectives .It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and redeemed by the fund management company based on the fund’s Net Asset Value [NAV], which is determined at the end of each trading session. Mutual funds are usually long terms investment vehicle though there some categories of mutual funds, such as money market mutual funds which are short term instruments.BenefitsThe reason that mutual funds are so popular is that they offer theability to easily invest in increasingly more complicated financialmarkets. A large part of the success of mutual funds is also the 47
  • 48. Projectsformba.blogpsot.comadvantages they offer in terms of diversification, professionalmanagement and liquidity.  In MFs, the risk involved decreases and the return increases because of diversified pool of funds.  It is the cheapest of all investments. But if you invest through broker then you have to any 2.5% of the total investment but if you invest directly into the company no entry charges will be taken.  There is no lock in period in case of MFs but if you divest toyur investment within a period of 1year then you will have to pay an exit load between 1%-2%.  Tax Saving is another benefit given to the investors.Flexibilty - Mutual Fund investments also offers you a lot of flexibilitywith features such as systematic investment plans, systematicwithdrawal plans & dividend reinvestment.Affordability - They are available in units so this makes it veryaffordable. Because of the large corpus, even a small investor canbenefit from its investment strategy.Liquidity - In open ended schemes, you have the option ofwithdrawing or redeeming your money at any point of time at thecurrent NAVDiversification - Risk is lowered with Mutual Funds as they investacross different industries & stocks.Professional Management - Expert Fund Managers of the MutualFund analyse all options based on experience & research 48
  • 49. Projectsformba.blogpsot.comPotential of return -The fund managers who take care of yourMutual Fund have access to information and statistics from leadingeconomists and analysts around the world. Because of this, they arein a better position than individual investors to identify opportunitiesfor your investments to flourish.Low Costs - The benefits of scale in brokerage, custodial and otherfees translate into lower costs for investors.Regulated for investor protection - The Mutual Funds sector isregulated to safeguard the investors interests.Here we have to calculate the Net Asset Value which helps us incalculating the no. of units.NAV= CA-CL No.of UnitsIf the market price decreases, the no. of units held by the investorincreases and vice versa. 49
  • 50. Projectsformba.blogpsot.com CHAPTER-4 “ANALYSIS & INTERPRETATION”ANALYSIS AND INTERPRETATIONQ1. What is your age group? 50
  • 51. Projectsformba.blogpsot.com Distribution of Responders Age groups (d) > 45 yrs 14% (c) 35-45 yrs 10% a) 18-25 yrs 54% (b) 25-35 yrs 22% According to the survey, maximum number of people belong to the age group of 18-25 years. So we can say that most of the respondents will be willing to take risk and make investments in the market instruments with moderate risk. distribution of responders according to their occupation 30 25 (b) Salaried, 25no. of respnoders in aparticular occupation Q2. What is your Occupation? 20 category 15 10 (d) others, 10 (a) Business, 8 (c) Self Employed, 5 7 51 0 various occupations
  • 52. Projectsformba.blogpsot.comThe above graph shows the occupation of the sample respondents.50% of the respondents belong to the category of salariedemployees.16% of the respondents are into Business.14% of the responds are self employed and the rest 20% into otheroccupation. household income range (a) < 2 lakhs 4% (d) > 10lakhs 28% (b) 2-5 lakhsQ3. Under which range your Household Income falls? 30% (c) 5-10 lakhs 52 38%
  • 53. Projectsformba.blogpsot.comThe graph above depicts the household income range of therespondents. The income range of the maximum respondents lie inthe 5-10 lakhs category whereas only 4% i.e. only 2 respondentsincome falls in the category of < 2 lakhs. Proportion of objectives 44 favouring the objective Number of responders 32 29 23 15 14Q4. What is your objective behind Investments? 1 (a) Safety & benefits (d) Expecting (f) Managing (e) Future Retirement good Returns uncertainties (g) Others (c) Tax security of plans capital (b) 53 various objectives
  • 54. Projectsformba.blogpsot.comAccording to the graph, the basic objective of most of the peoplebehind investments in Tax benefits followed by good returns. It isreally important for the investor to get good amount of profits on hisinvestment. The next possible reason for investment is future plansfor themselves and their family. Various other reasons forinvestments include safety and security of capital and managinguncertainties.Q5. How do you take financial decisions? 54
  • 55. Projectsformba.blogpsot.com sources of decision 1% (a) Independently 19% 22% (b) Word of mouth 9% (c) Broker (d) Advise from a CA (e) Advise from a Bank 8% (f) Financial Advisors 29% 12% (g) Others (please specify)According to the survey, 29% i.e. maximum no. of respondents taketheir financial decisions based on other’s opinion i.e. word of mouth.22% of the total respondents take their financial decisionindependently. They take this decision based on their owninterpretation and calculations.19% of the respondents take their financial decisions with the help offinancial advisors.12% of the respondents take their financial decision based on theinterpretation of the broker.Remaining respondents take their financial decisions either with thehelp of the bank or from the CA.Q6. How much Risk are you willing to take? 55
  • 56. Projectsformba.blogpsot.com Risk ability (a) High 12% (b) Low 18% (c) Moderate 70%According to the graph above, 70% of the respondents are willing totake moderate risk i.e. 35 respondents take moderate risk whiletaking investments decisions.12% of the respondents i.e. 6 people out of 50 surveyed are willing totake high risk.18% of the respondents i.e. 9 people are risk averse so they makeinvestments in those securities which have less risk involved.Q7. What do you have presently in your portfolio in form ofinvestment? 56
  • 57. Projectsformba.blogpsot.com financial products 44 No. of responders having the product in thier portfolio 32 27 26 24 20 13 4 0 (a) Fixed deposits (b) Property/Land (c) Ulip (d) Gold (e) Life insurance (f) Government (g) Mutual funds (h) Equity/Shares (i) Others policies bonds various financial products for investmentsAccording to the survey, most of the respondents have insurancepolicies in their portfolio followed by fixed deposits. These two arethose instruments which involve low risk. Those who can moderaterisk have invested in property, mutual funds and equity. Some of thepeople have also invested in ULIP and gold which involved low risk.Q8. How would you rate the satisfaction level with your currentportfolio? 57
  • 58. Projectsformba.blogpsot.com satisfaction level 4% 18% Excellent Very Good 0% very poor 6% Average 2% Poor 70% GoodThe above chart shows the satisfaction level of the samplepopulation.Majority of the sample population rate their current portfolio as“Good” which constitutes to 70%.18% of the sample population i.e. 9 respondents out of 50 rate theircurrent portfolio as “Very Good”.6% of the respondents are not much satisfied with their portfolio sothey rate it as “Average”.Out of the total sample size of 50, only 4% of the respondents i.e. 2people rate their portfolio as “Excellent” as they must be getting goodreturns from their investment.Remaining 2% of the total population do not have much idea aboutthe investment strategies so may not be getting much returns so theyrate their portfolio as “Poor”. 58
  • 59. Projectsformba.blogpsot.comANALYSIS BASED ON THE AGE GROUP OF THERESPONDENTS A) Age Group 18-25 years i) Occupation distribution of occupation for the age category of 18-25yrs 16 14 14 paritcular 18-25 yrs of age for 12 no. of responsers of age particular occupation 10 8 7 6 4 4 2 2 0 (a) Business (b) Salaried (c) Self Employed (d) others occupations avialableIn this age group, maximum no. of the respondents are salariedemployees.Out of the total sample population, 7 respondents out of 27 areneither into job, nor business. They have either invested into theshare or commodity markets or they are students. 59
  • 60. Projectsformba.blogpsot.comOut of 27, 4 respondents are self employed i.e. they have joined theirfamily business.Remaining 2 respondents out of 27 in this age group are intobusiness. ii) Income 60
  • 61. Projectsformba.blogpsot.com income levels for the age group 18-25 yrs 12 11 10 10 8 no. of responders of 18-25yrs of age 6 in each level 4 4 2 2 0 (a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs (d) > 10lakhs various income levels avialable proportions of responders income level for the age group 18-25 yrs (d) > 10lakhs (a) < 2 lakhs 15% 7% (b) 2-5 lakhs (c) 5-10 lakhs 41% 37%The above graph shows the income level of the respondents in theage group of 18-25 years. 61
  • 62. Projectsformba.blogpsot.comIn this age group, maximum no. of respondents has an income in therange of 2-5 lakhs.10 of out of 27 respondents in this age group has an income rangebetween 5-10 lakhs.Around 20% of this age group has an income above 10 lakhs andthe remaining 10% are below 2 lakhs. Risk capability for the age group 18-25yrsiii) Risk high 15% low 19% moderate 66% 62
  • 63. Projectsformba.blogpsot.com According to the graph, 66% of the respondents i.e. 17 respondents out of 27 can take moderate risk and invest in both the stock market and the government bonds. These people can have a portfolio with large as well as small cap funds. Those who take low risk invest in liquid funds, debt funds and in some of the government bonds. The remaining 15% of the respondents take high risk which means that they invest in equity, mutual funds and other risky instruments. Distribution of occupation,income level,risk level of responders of age group 18-25yrs 20 18 18 16No. of responders for the 14 14 12 occupation particular 11 10 10 income 8 risk level 7 6 5 4 4 4 4 2 2 63 0 levels of occupation, risk and income
  • 64. Projectsformba.blogpsot.comThis graph shows a correlation between the occupation, risk andincome of the respondents.The yellow line depicts the risk level, pink depicts the income leveland blue depicts the occupation of the respondents.According to the survey, when the income level of this age group isbelow 2 lakhs, they can invest in those instruments that have low riskattached to it and the occupation of such respondents is salariedemployees.As the income level range increases to 2-5 lakhs, the respondentsdecide to invest in those instruments having moderate risk attachedto it and these people are generally into business.All those whose income level range from 5-10 lakhs, they their risktaking ability is also higher then others.Finally all those respondents whose income level is above 10 lakhsinvest in all those investments which have high risk associated with it. 64
  • 65. Projectsformba.blogpsot.com B. Age Group 25-35 years i) Occupation Distribution of occupation for the age group 25-35 yrs 6 6 5 4 No. of 3 2 respondents 2 2 1 1 0 a) Business b) Salaried c)Self Employed d)Others OccupationThere are 11 respondents out of 50 who are in the age group of25-35 years. No.of Occupation Respondents a) Business 2 b) Salaried 6 c)Self Employed 2 d)Others 1 ii) Income 65
  • 66. Projectsformba.blogpsot.com Distribution of Income for the Age group 25-35 yrs 0% 27% 36% <2 Lacs 2-5 lacs 5-10 lacs >10 Lacs 37%Out of the sample population, 11 respondents are in the age group of25-35 years.37% of the total respondents in this age group have an annualincome of 5-10 lakhs.36% of the respondents i.e. 4 respondent’s annual income is above10 lakhs.The remaining 27% of the respondents i.e. 3 of them have an annualincome between 2-5 lakhs. iii) Risk 66
  • 67. Projectsformba.blogpsot.com Distribution of Risk for the Age group 25-35 yrs 9% 9% High Low Moderate 82%According to this graph, majority of the respondents take moderaterisk in investments.And rest 9% of them can take high and low risk. 67
  • 68. Projectsformba.blogpsot.com Distribution of Occupation, Income and Risk level of respondents of age group 25-35 yrs 10 9 8 No. of respondents 6 6 Occupation Income 4 4 4 Risk 3 2 2 2 1 1 1 0 0 0 1 2 3 4 Occupation, Income and Risk levelIn the graph above, yellow line depicts risk, ping line depicts incomeand blue line depicts occupation.In the graph above, as the income increases, the risk taking abilityalso increases. All those whose occupation is of salaried employeetake less risk as compared to those who are into business.C. Age Group 35-45 years 68
  • 69. Projectsformba.blogpsot.com i) Occupation proportion of occupations of responders of age group 35-45yrs others 20% business 40% self employed 20% salary 20% Occupation No.of Respondents Business 2 Salary 1 Self employed 1 Others 1 ii) Income 69
  • 70. Projectsformba.blogpsot.com Distribution of income levels of responders of age group 35-45yrs 40% 40% 40% 35% 30% 25% 20% % of responders in 20% each income level 15% 10% 5% 0% 0% (a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs (d) > 10lakhs various income levelsIn this age group, there is no single respondent below the incomelevel of 2 lakhs.20% of the respondents lie in the income category of 2-5 lakhs.40% of the respondents lie in the income category of 5-10 lakhs.Again 40% of the respondents lie in the income category of incomeabove 10 lakhs.Hence, equal no. of respondents have an income ranging from 5-10lakhs. iii) Risk 70
  • 71. Projectsformba.blogpsot.com Distribution of risk level accepted by the responders of age group 35-45yrs 80 80 60 20 % of responders of the age group in 40 0 each risk level 20 0 high low moderate various risks level avialableAccording to the graph, 80% of the people invest in thoseinstruments carrying moderate risk.Remaining 20% of the respondents invest in low risk instruments.No one in this age group invest in instruments carrying high risk.D. Age Group >45 years i) Occupation 71
  • 72. Projectsformba.blogpsot.com Distribution of Occupation for the age group >45 yrs 60.00% 57.14% 50.00% 40.00% 30.00% 28.57% 20.00% 14.29% 10.00% 0.00% 0.00% S1 a) Business b) Salaried c) Self d) Others Employed In the graph above, maximum no. of people are salaried employees and minimum no. of people are into some other occupation. 28.57% of the respondents, are into business. ii) Income 72
  • 73. Projectsformba.blogpsot.com Distribution of Income for the Age group >45 yrs 0% 0% 43% <2 Lacs 2-5 lacs 5-10 lacs >10 Lacs 57%In this age group, 43% of the respondents have an income rangebetween 5-10 lakhs.Majority of respondents i.e. 57% of the respondents have incomeabove 10 lakhs. iii) Risk 73
  • 74. Projectsformba.blogpsot.com Distribution of Risk for the Age group >45 yrs 57.14% 60.00% 50.00% 40.00% 28.57% 30.00% 20.00% 14.29% 10.00% 0.00% High Low ModerateIn the graph above, maximum no. of respondents i.e. 57.14% ofpeople have an ability to take moderate risk and invest in all kind ofinstruments.28.57% of the respondents invest in those instruments that carry lowrisk attached with it.Finally there are only 14.29% of the respondents who invest in thoseinstruments carrying high risk with it. 74
  • 75. Projectsformba.blogpsot.com Distribution of Occupation, Income and Risk level for thw respondents of the age group >45 yrs 4.5 4 4 4 4 No. of respondents 3.5 3 3 Occupation 2.5 Income 2 2 2 1.5 Risk 1 1 1 0.5 0 0 0 0 1 2 3 4 Level of Occupation, Income and RiskIn the graph above, as you can see, the age group above 45 years isnot willing to take high risk if their income level is not above 5 lakhsper year.As the income level increases, the risk taking capability alsoincreases.Those having income level above 5-10 lakhs can invest in thoseinstruments that bear high risk.All those respondents who are into business can take moderate risk. 75
  • 76. Projectsformba.blogpsot.com CHAPTER 5 “CONCLUSION” CONCLUSION 76
  • 77. Projectsformba.blogpsot.comThe project “Investment Strategies and Portfolio Management” hashelped me a lot to gain an insight about the various bankingproducts.Standard Chartered Bank is one of the leading private banks whichprovide all the banking products and investment solutions to theircustomer. They have differentiated themselves in a very distinct wayby providing the best of their services. This bank is listed on bothLondon Stock Exchange and Hong Kong Stock Exchange.Standard Chartered has a history of over 150 years in banking andoperates in many of the worlds fastest-growing markets with anextensive global network of over 1,400 branches (includingsubsidiaries, associates and joint ventures) in over 50 countries inthe Asia Pacific Region, South Asia, the Middle East, Africa, theUnited Kingdom and the Americas.With strong organic growth supported by strategic alliances andacquisitions and driven by its strengths in the balance and diversity ofits business, products, geography and people, Standard Chartered iswell positioned in the emerging trade corridors of Asia, Africa and theMiddle East. Standard Chartered derives over 90 per cent of profitsfrom Asia, Africa and the Middle East.The products of Standard Chartered are very competitive and providethe best of their services to the customer.According to the survey, 99% of the respondents have their savingaccount which means that it is the hot selling cake in the bankingindustry.Around 30% of the people have invested in the plan ULIP and30%-40% of the respondents have invested in Mutual Funds. 77
  • 78. Projectsformba.blogpsot.com CHAPTER- 6 “APPENDIX” 78
  • 79. Projectsformba.blogpsot.com QUESTIONNAIREDear respondent this questionnaire is meant for the purpose of research on thetopic“INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENT” for acontinuous evaluation of summer internship as part of MBA (G) program of AmityBusiness School, Amity University, UP. It will be assured that the data collected will notbe misused. Name: Contact No: 1) What is your age group? (a) 18-25 yrs (b) 25-35 yrs (c) 35-45 yrs (d) > 45 yrs 2) What is your Occupation? (a) Business (b) Salaried (c) Self Employed (d) Others 3) Under which range your Household Income falls? (a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs (d) > 10lakhs 4) What is your objective behind Investments? (a) Safety & security of capital (b) Retirement (c) Tax benefits (d) Expecting good Returns (e) Future plans (f) Managing uncertainties (g) Others (please specify) 5) How do you take financial decisions? (a) Independently (b) Word of mouth / friends / relatives (c) Broker (d) Advise from a Chartered Accountant (e) Advise from a Bank (f) Financial Advisors (g) Others (please specify) 6) How much Risk are you willing to take? (a) High (b) Low (c) Moderate 7) What do you have presently in your portfolio in form of investment? (a) Fixed deposits (b) Property/Land (c) Ulip (d) Gold (e) Life insurance policies (f) Government bonds (g) Mutual funds (h) Equity/Shares (i) Others (please specify) ________________________________ 8). How would you rate the satisfaction level with your current portfolio? (a) Excellent (b) Very Good (c) Good (d) Average (e) Poor (f) Very Poor 79
  • 80. Projectsformba.blogpsot.com REFERENCES References 80
  • 81. Projectsformba.blogpsot.com 1. Website • www.standardchartered.org 2. Books • Money and Banking- ICFAI • Indian Finanacial Management- M.Y. khan • Finanacial Management- S.N. Maheshwari • NCFM- Financial Beginners Module 81
  • 82. Projectsformba.blogpsot.com 82

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