Chapter: 1<br />Introduction of the study<br />Introduction of the study<br />INVESTMENTS<br />The Meaning of Investment<br />The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.<br />Reason behind investment:<br />One needs to invest to:<br />Earn return on your idle resources<br />Generate a specified sum of money for a specific goal in life<br />Make a provision for an uncertain future<br />One of the important reasons why one needs to invest wisely is to meet the cost of Inflation.<br />Remember to look at an investment's 'real' rate of return, which is the return after inflation. The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value.<br />Investment is never an easy process. However, a sound understanding of some basic concepts make the process of investment decision-making much easier and the experience much more enjoyable. But investment needs some planning to do, analysis of some basic needs. Here are some of the basic steps for the investment.<br />1) Identify your financial needs and goals.<br />2) Your ability to take the risk.<br />3) Estimate your required rate of return.<br />4) To meet the cost of inflation.<br />Three golden rules for investment<br />Invest early<br />Invest regularly<br />Invest for long term.<br /><ul><li>But due to the lack of awareness towards the various financial products peoples are losing the opportunity to earn on their investment. Even they don’t know how the value of money is depreciating due to the various factors like inflation. Interest rates etc.</li></ul>RETURN ON INVESTMENT<br />Return on Investment (ROI) analysis is one of several approaches to building a financial business case. The term means that decision makers evaluate the investment by comparing the magnitude and timing of expected gains to the investment costs.<br />TYPES OF INVESTMENT:- <br /> There are basically three types of investments from which the investors can choose. The three kinds of investment have their own risk and return profile and investor will decide to invest taking into account his own risk appetite. The main types of investments are: -<br />Economic investments:-<br /> <br />These investments refer to the net addition to the capital stock of the society. The capital stock of the society refers to the investments made in plant, building, land and machinery which are used for the further production of the goods. This type of investments are very important for the development of the economy because if the investment are not made in the plant and machinery the industrial production will come down and which will bring down the overall growth of the economy.<br />Financial Investments:- <br />This type of investments refers to the investments made in the marketable securities which are of tradable nature. It includes the shares, debentures, bonds and units of the mutual funds and any other securities which is covered under the ambit of the Securities Contract Regulations Act definition of the word security. The investments made in the capital market instruments are of vital important for the country economic growth as the stock market index is called as the barometer of the economy.<br />General Investments:- <br />These investments refer to the investments made by the common investor in his own small assets like the television, car, house, motor cycle. These types of investments are termed as the household investments. Such types of investment are important for the domestic economy of the country. When the demand in the domestic economy boost the over all productions and the manufacturing in the industrial sectors also goes up and this causes rise in the employment activity and thus boost up the GDP growth rate of the country. The organizations like the Central Statistical Organization (CSO) regularly takes the study of the investments made in the household sector which shows that the level of consumptions in the domestic markets.<br />CHARACTERISICS OF INVESTMENT<br />Certain features characterize all investments. The following are the main characteristics features if investments: -<br />1.Return: -<br />All investments are characterized by the expectation of a return. In fact, investments are made with the primary objective of deriving a return. The return may be received in the form of yield plus capital appreciation. The difference between the sale price & the purchase price is capital appreciation. The dividend or interest received from the investment is the yield. Different types of investments promise different rates of return. The return from an investment depends upon the nature of investment, the maturity period & a host of other factors.<br />2.Risk: -<br />Risk is inherent in any investment. The risk may relate to loss of capital, delay in repayment of capital, nonpayment of interest, or variability of returns. While some investments like government securities & bank deposits are almost risk less, others are more risky. The risk of an investment depends on the following factors.<br />The longer the maturity period, the longer is the risk.<br />The lower the credit worthiness of the borrower, the higher is the risk.<br />The risk varies with the nature of investment. Investments in ownership securities like equity share carry higher risk compared to investments in debt instrument like debentures & bonds.<br />3. Safety: -<br />The safety of an investment implies the certainty of return of capital without loss of money or time. Safety is another features which an investors desire for his investments. Every investor expects to get back his capital on maturity without loss & without delay.<br />4. Liquidity: -<br />An investment, which is easily saleable, or marketable without loss of money & without loss of time is said to possess liquidity. Some investments like company deposits, bank deposits, P.O. deposits, NSC, NSS etc. are not marketable. Some investment instrument like preference shares & debentures are marketable, but there are no buyers in many cases & hence their liquidity is negligible. Equity shares of companies listed on stock exchanges are easily marketable through the stock exchanges.<br />An investor generally prefers liquidity for his investment, safety of his funds, a good return with minimum risk or minimization of risk & maximization of return.<br />IMPORTANCE<br />In the current situation, investment is becomes necessary for everyone & it is important & useful in the following ways:<br />1. Retirement planning: -<br />Investment decision has become significant as people retire between the ages of 55 & 60. Also, the trend shows longer life expectancy. The earning from employment should, therefore, be calculated in such a manner that a portion should be put away as a savings. Savings by themselves do not increase wealth; these must be invested in such a way that the principal & income will be adequate for a greater number of retirement years. Increase in working population, proper planning for life span & longevity have ensured the need for balanced investments.<br />2. Increasing rates of taxation: -<br />Taxation is one of the crucial factors in any country, which introduce an element of compulsion, in a person’s saving. In the form investments, there are various forms of saving outlets in our country, which help in bringing down the tax level by offering deductions in personal income.<br />For examples: -<br />Unit linked insurance plan,<br />Life insurance,<br />National saving certificates,<br />Development bonds,<br />Post office cumulative deposit schemes etc.<br />3. Rates of interest: -<br />It is also an important aspect for sound investment plan. It varies between investment & another. This may vary between risky & safe investment, they may also differ due different benefits schemes offered by the investments. These aspects must be considered before actually investing. The investor has to include in his portfolio several kinds of investments stability of interest is as important as receiving high rate of interest.<br />4. Inflation: -<br />Since the last decade, now a day’s inflation becomes a continuous problem. In these years of rising prices, several problems are associated coupled with a falling standard of living. Before funds are invested, erosion of the resource will have to be carefully considered in order to make the right choice of investments. The investor will try & search outlets, which gives him a high rate of return in form of interest to cover any decrease due to inflation. He will also have to judge whether the interest or return will be continuous or there is a likelihood of irregularity. Coupled with high rate of interest, he will have to find an outlet, which will ensure safety of principal. Beside high rate of interest & safety of principal an investor also has to always bear in mind the taxation angle, the interest earned through investment should not unduly increase his taxation burden otherwise; the benefit derived from interest will be compensated by an increase in taxation.<br />5. Income: -<br />For increasing in employment opportunities in India., investment decisions have assumed importance. After independence with the stage of development in the country a number of organization & services came into being.<br />For example: -<br />The Indian administrative services,<br />Banking recruitment services,<br />Expansion in private corporate sector,<br />Public sector enterprises,<br />Establishing of financial institutions, tourism, hotels, and education.<br />More avenues for investment have led to the ability & willingness of working people to save & invest their funds.<br />6. Investment channels: -<br />The growth & development of country leading to greater economic activity has led to the introduction of a vast array of investment outlays. Apart from putting aside saving in savings banks where interest is low, investor have the choice of a variety of instruments. The question to reason out is which is the most suitable channel? Which media will give a balanced growth & stability of return? The investor in his choice of investment will give a balanced growth & stability of return? The investor in his choice of investment will have try & achieve a proper mix between high rates of return to reap the benefits of both.<br />For example: -<br />Fixed deposit in corporate sector<br />Unit trust schemes.<br />INVESTMENTS AVENUES:-<br />There are various investments avenues provided by a country to its people depending upon the development of the country itself. The developed countries like the USA and the Japan provide variety of investments as compared to our country. In India before the post liberalization era there were limited investments avenues available to the people in which they could invest. With the opening up of the economy the number of investments avenues have also increased and the quality of the investments have also improved due to the use of the professional activity of the players involved in this segment. Today investment is no longer a process of trial and error and it has become a systematized process, which involves the use of the professional investment solution provider to play a greater role in the investment process.<br />Earlier the investments were made without any analysis as the complexity involved the investment process were not there and also there was no availability of variety of instruments. But today as the number of investment options have increased and with the variety of investments options available the investor has to take decision according to his own risk and return analysis. <br /> PORTFOLIO<br />Meaning of portfolio:-<br />Portfolio<br />A combination of securities with different risk & return characteristics will constitute the portfolio of the investor. Thus, a portfolio is the combination of various assets and/or instruments of investments. The combination may have different features of risk & return, separate from those of the components. The portfolio is also built up out of the wealth or income of the investor over a period of time, with a view to suit his risk and return preference to that of the portfolio that he holds. The portfolio analysis of the risk and return characteristics of individual securities in the portfolio and changes that may take place in combination with other securities due to interaction among themselves and impact of each one of them on others.<br />An investor considering investments in securities is faced with the problem of choosing from among a large number of securities. His choice depends upon the risk and return characteristics of individual securities. He would attempt to choose the most desirable securities and like to allocate is funds over this group of securities. Again he is faced with the problem of deciding which securities to hold and how much to invest in each. The investor faces an infinite number of possible portfolios or groups of securities. The risk and return characteristics of portfolio differ from those of individual securities combining to form a portfolio. The investor tries to choose the optimal portfolio taking in to consideration the risk return characteristics of all possible portfolios.<br />As the economy and the financial environment keep changing the risk return characteristics of individual securities as well as portfolios also change. This calls for periodical review and revision of investment portfolios of investors. An investor invests his funds in a portfolio expecting to get a good return consistent with the risk that he has to bear. The return realized from the portfolio has to be measured and the performance of the portfolio has to be evaluated.<br />It is evident that rational investment activity involves creation of an investment portfolio. Portfolio management comprises all the processes involved in the creation and maintenance of an investment portfolio. It deals specifically with the security analysis, portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation. Portfolio management makes use of analytical techniques of analysis and conceptual theories regarding rational allocation of funds. Portfolio management is a complex process which tries to make investment activity more rewarding and less risky.<br />PORTFOLIO DESIGN<br />Before designing a portfolio one will have to know the intention of the investor or the returns that the investor is expecting from his investment. This will help in adjusting the amount of risk. This becomes an important point from the point of view of the portfolio designer because if the investor will be ready to take more risk at the same time he will also get more returns. <br />From the above discussion we can conclude that the investors can be of the following three types:<br />Investors willing to take minimum risk and at the same time are also expecting minimum returns.<br />Investors willing to take moderate risk and at the same time are also expecting moderate returns.<br />Investors willing to take maximum risk and at the same time are also expecting maximum returns.<br /> PORTFOLIO – AGE RELATIONSHIP<br />Your age will help you determine what a good mix is / portfolio is<br />AgePortfoliobelow 3080% in stocks or mutual funds 10% in cash10% in fixed income 30 t0 4070% in stocks or mutual funds 10% in cash20% in fixed income 40 to 5060% in stocks or mutual funds 10% in cash 30% in fixed income 50 to 6050% in stocks or mutual funds10% in cash40% in fixed income above 6040% in stocks or mutual funds 10% in cash 50% in fixed income <br />Chapter-3<br />Research methodology<br />RESEARCH METHODOLOGY<br />Research methodology is the way to systematically solve the research problem. Research in common refers to a search of knowledge. In fact research is an art of scientific investigation. According to the advanced learning dictionary, “research is a careful investigation of inquiry especially for finding”. In it we study the various steps that are generally adopted by the researcher in study of his research problem along with logic behind them. It is necessary for the researcher to know the research method and techniques.<br />So, research, methodologies adopted by the researchers in this project are as follows:<br />AREA OF RESEARCH<br />I have taken Raipur city as a whole as my area of research within in which I have filled my questionnaires from the peoples of Raipur city including the customers of Kotak Mahindra Bank ltd.<br />SAMPLE SIZE: <br /> Sample size is the total number of respondents selected. In my research work I have taken a sample size of 50 respondents.<br />SOURCES OF DATA<br />For assessing the behavior pattern of the customers towards Kotak as an investment gateway, I have collected the data from both the sources i.e. primary sources and secondary source.<br />Primary Source<br />For this research, I have prepared a questionnaire for collecting the data. I distributed the questionnaire to the selected investors. On the basis of their feedback, I have done the analysis for my report, the items included in the questionnaire where investors needs of investments and improvement in present system.<br />Secondary Source<br />Various books, broachers, company’s website, project reports etc where used as secondary source.<br />QUESTIONNAIRE DESIGN<br />Questionnaire design is a most common instrument. A researcher should avoid bias and develops a device, which will facilitate effective communication. The questionnaire considers all these factors can secure relevant facts or opinion from informed and interested responded. I designed a questionnaire contained like this and conducted the sample survey. The questionnaire contains fourteen questions helped me in collecting the relevant data for my project while preparing the questions. I almost gave attention to the number of questions, types, wording and sequence of question. The questionnaire contains close-ended question and proper care was taken to minimize ambiguity. In order to get the information through the questionnaire, I adopted personal interview also and it helped both the purpose of getting the information, which was mentioned, in the questionnaire and some vital additional information, which employees expressed while talking me.<br />SAMPLING METHOD<br /> The researcher adopted the convenient sampling method. In this method the sampling unit is chosen primarily on the basis of convenience to the investigators. In this type of sampling the researcher selects the item for the sample deliberately; his choice concerning the items remains supreme. In other words, under this sampling method the organizers of the enquiry purposively choose the particular unit of the universe for constituting a sample on the basis that the small mass that they select out of huge ones will be typical or representative of the whole.<br />STATISTICAL TECHNIQUES:<br />Percentage method technique of central tendency was used by researcher in the analysis of the data in this research. Percentage refers to a special kind of ratio. Percentage is used in making comparison between two or more series of data. Percentages are used to describe relationships. Such a measure is considered as the most representative figure for the entire mass of data.<br />EXECUTION OF PROJECT:<br />It is very important step in the research process. According to it findings depends on how systematically the study has been cased out in the time so that it can make some sense when required. I have executed the project after prior discussion with the guide and structure in following steps.<br />preparation of questionnaire<br />Visiting the customers and asking them about the service they all availing from Kotak Mahindra ltd. Try to find out the satisfaction level with the existing customers.<br />TOOLS AND TECHNIQUES OF ANALYSIS<br />PIECHART:<br /><ul><li>Pie chart is an alternative to a component bar diagrams, we can represent various components of a phenomenon by participating a circle.</li></ul>BAR DIAGRAM:<br /><ul><li>Simple Bar diagram the vertical or horizontal to the value of the item, are constructed. Bar diagrams are particulars suitable for representing individual time series or partial devices.</li></ul>.<br />PERCENTAGE: <br /> It is used to get the percentage value of distributed data<br />Chapter-4<br /> Industry profile<br />Chapter-5<br />Company profile<br />COMPANY PROFILE<br />The Kotak Mahindra Group<br />Kotak Mahindra is one of India's leading financial organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse financial needs of individuals and corporate.<br />The group has a net worth of over Rs. 6,799 crore and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 6.4 million customer accounts.<br />Our Corporate Identity<br />Slogan or Punch line<br />Think investment, Think Kotak.<br />SEGMENTS IN WHICH KOTAK MAHINDRA DEALS<br />Banking Services<br />Kotak Mahindra Bank<br />The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank – Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. It’s banking operations offers a central platform for customer relationships across the group’s various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. <br />Kotak Mahindra Capital Company<br />Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services.Kotak Securities<br />Kotak Securities Ltd., is one of India's largest brokerage and securities distribution house in India. Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-coordinators. Kotak Securities Ltd. offers online and offline services based on well-researched expertise and financial products to the non-institutional investors.<br />Kotak Mahindra Prime<br />Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India. <br />Kotak Mahindra Asset Management Company<br />Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 25,628 crore and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. <br />Kotak Mahindra Old Mutual Life Insurance Limited<br />Kotak Mahindra Old Mutual Life Insurance Limited, is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.<br />Kotak‘s International Business <br />With a presence outside India since 1994, the international subsidiaries of Kotak Mahindra Bank Ltd. operating through offices in London, New York, Dubai, San Francisco, Singapore and Mauritius specialize in providing asset management services to specialist overseas investors seeking to invest into India. The offerings are differentiated India investment solutions that span all major asset classes including listed equity, private equity and real estate. The subsidiaries also lead manage and underwrite international issuances of securities. With its commendable track record, large presence on the ground and a team of dedicated staff in India, Kotak’s international arm is suitably positioned for managing assets in the Indian Capital markets.<br />MILESTONE<br />1986Kotak Mahindra Finance Limited starts the activity of Bill Discounting 1987Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market1990The Auto Finance division is started 1991The Investment Banking Division is started. Takes over FICOM, one of India’s largest financial retail marketing networks1992Enters the Funds Syndication sector 1995Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company 1996The Auto Finance Business is hived off into a separate company - Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group’s entry into information distribution. 1998Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. 2000Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.2001Matrix sold to Friday CorporationLaunches Insurance Services 2003Kotak Mahindra Finance Ltd. converts to a commercial bank – the first Indian company to do so.2004Launches India Growth Fund, a private equity fund.2005Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra.Launches a real estate fund2006Bought the 25% stake held by Goldman Sachs in Kotak Mahindra CapitalCompany and Kotak Securities<br />Graphical Representation of Journey So Far<br />The journey so far<br />Group Structure <br />* Includes direct and indirect holdings<br />Group Management<br />Mr. Uday Kotak (Executive vice chairman & Managing Director).<br />Mr. Shivaji Dam.<br />Mr. C. Jayaram.<br />Mr. Dipak Gupta.<br /> <br />Board of Directors<br />Dr. Shankar Acharya (chairman)Mr. Uday Kotak (executive vice chairman and Managing Director)Mr. Anand Mahindra Mr. K.M. Gherda Mr. Cyril Shroff Mr. Pradeep Kotak Mr. Shivaji Dam Mr. C. Jayaram (Executive Director)Mr. Dipak Gupta (Executive Director)Ms. Bina Chandarana (Secretary & Senior Vice President)<br />Awards<br />2009<br />Kotak Mahindra Bank was awarded Hewitt Best Employers in India 2009<br />Kotak Mahindra Bank was ranked in the top 5 of companies with “Best Corporate Governance Practices” in Asia/Pacific - IR Global Rankings 2009<br />Kotak Mahindra Bank and Oracle Siebel won the “Best CRM/Applications Project Award 2009” at the IT Implementation Awards 2009 by The Asian Banker<br />Kotak Mahindra was adjudged India’s overall the “Best Private Banking Services” award by Euromoney 2009<br />Kotak Credit Cards- Kotak Royal Signature’s card is chosen “Product of the Year” by Nielsen who surveyed 40,000 consumers.<br />Kotak Life Insurance plans were rated amongst the best in the industry for a second year in a row in the annual ULIP Ranking carried out by Outlook Money. <br />Outlook Money awarded the 1st Rank to Kotak Platinum Advantage Plan in Type II ULIPs category <br />Outlook Money awarded 4th Rank to Kotak Long Life Wealth Plus plans in the Type I ULIPs category, concluding that “Kotak Life has a product portfolio which delivers what customers want.” <br />Kotak Life Insurance plans were rated amongst the best in the industry for a second year in a row in the annual ULIP Ranking carried out by Outlook Money. <br />Kotak Securities- Best Brokerage Firm in India - Asiamoney, 2008<br />Kotak Securities- Selected “Business Superbrand India 2008<br />Kotak Securities - “India Equity House of the Year 2008” award from IFR Asia<br />Kotak Securities - “Best Equity House in India” by FinanceAsia in 2008<br />Kotak Securities - “Best Equity House in India” by Asiamoney in 2008<br />Kotak Securities - “Best Brokerage and Best Analyst (Sanjeev Prasad) in India” in the Asiamoney 2008 Brokers Poll<br />Kotak Investment Banking was awarded the “Best Domestic Investment Bank 2008” by Triple A Asset Asian Awards <br />Kotak Investment Banking was ranked “Best Investment Bank in India” by Global Finance in 2008<br />Kotak Mutual Fund: <br />Kotak Liquid – Regular Plan has been ranked as a Seven Star Fund in the category of “Open-Ended Liquid” schemes for its 1 year performance till December 31, 2008- ICRA Online Limited<br />Kotak Flexi Debt Fund has been ranked as a Five Star Fund in the category of “Open-Ended Liquid Plus” schemes for its 1 year performance till 31 December 2008 - ICRA Online Limited<br />Kotak Flexi Debt Fund has been ranked as a Five Star Fund in the category of “Open-Ended Liquid Plus” schemes for it’s 3 year performance till 31 December 2008 - ICRA Online Limited<br />Kotak 30 has been ranked as a Five Star Fund in the category of “Open Diversified Equity- Defensive” for its 3 year performance- ICRA Online Limited. The Five Star category comprises of funds in the top 10 percentile in performance. <br />Kotak Investment Banking was named “Best Investment Bank” and “Best Equity House in India” by FinanceAsia Best Bank Awards 2008 and was named “Best Domestic Equity House” by Asia Money Best Bank Awards 2008. <br />Awarded the Best Domestic Investment Bank and the Best Equity House in The Asset Triple A Country Awards for the period October 1, 2007 to September 30, 2008. <br />2008<br />Kotak Investment Bank was awarded the “Best Investment Bank” in the domestic category in India by Finance Asia for the second year in a row. <br />Kotak Mutual Fund-Kotak Bond Short Term won ICRA Mutual Fund Gold Award in the short term Debt category for 1 year & 3 year – 2008 <br />Kotak Securities was awarded the leading Equity house in India for 2007 by Thomson Extel Survey Awards for Asia Pacific. <br />Kotak Mahindra Bank was awarded as Best Security Strategist by Microsoft India and Best IT Implementation for Information security by PCQUEST <br />Kotak Securities- Best Brokerage Firm in India - Asiamoney, 2007 <br />Kotak Bank emerged in top 3 in 23 categories, including No.1 in 11 categories in the Euromoney Private Banking Poll 2008. <br />Kotak Mahindra Bank IT team got 4 awards (including Best IT Team of the year for the 3rd consecutive year, at the annual BANKING Technology Awards 2008.<br />Kotak Investment Banking for CY2007 was ranked no 1 by India Advisory Partners for Mergers & Acquisitions <br />Kotak Mutual Fund was adjudged as the’ best debt fund house’ and was awarded ‘wealth creator award’ at Outlook Money NDTV Profit 2007 awards <br />Kotak Securities was awarded the Avaya Global Connect Customer Responsiveness Awards in Financial Service Sector, 2007 <br />Kotak Securities was awarded Best Performing Equity Broker in India - CNBC TV 18" – Optimix Financial Advisory Awards, 2008<br />Kotak Mahindra Bank was in the Top 5 for Corporate Governance amongst companies by technical criteria by IR Global Rankings 2008 for the Asia Pacific / Africa region.<br />Kotak’s Investor Relation website was adjudged the most voted company in Asia Pacific / Africa by IR Global Rankings 2008 in five categories; Corporate Governance Practices, Financial Disclosure Procedures, IR Team, IR Program and IR Website.<br />Housing Finance Division of the Bank won the award for “Best in Customer Information and Responsiveness” among all HFI’s and Banks in the award hosted by Maharashtra Chamber of Housing Industry (MCHI).<br />Kotak Investment Banking was ranked No. 1 for FY08 by Prime Database for two league tables (a) India Domestic IPOs, (b) Qualified Institutional Placements including Government Divestments. <br />Kotak Mutual Fund’s three equity schemes (Kotak 30, Kotak Opportunities and Kotak Balance) have been ranked CPR 1 by CRISIL for Q4 FY08. <br />2007<br />Kotak Mahindra Bank IT team got 6 awards (including Best IT Team of the year for the 2nd consecutive year, Best overall winner), organized by IBA in recognition of achievements in Banking Technologies. <br />Kotak Securities was ranked The Most Customer Responsive Company for 2007 (Category - Financial Services) by Avaya Globalconnect<br />Adjudged the “best debt fund house” and was awarded “wealth creator award” at Outlook Money NDTV Profit 2007 awards <br />Emerged in top 3 in 23 categories, including No. 1 in 11 categories in the Euromoney Private Banking Survey Poll for 2008<br />Topped the Asiamoney Brokers Poll as the Best Brokerage firm in India in 2007<br />Bank was awarded as Best Security Strategist by Microsoft India and Best IT Implementation for Information security by PCQUEST <br />Awarded the leading Equity house in India for 2007 by Thomson Extel Survey Awards for Asia Pacific<br />Awarded the 10th Best Employer in the recently conducted Hewitt’s Best Employers in India 2007 Study<br />Best Investment Bank in India by Finance Asia <br />Most Popular Investor Relation Website for the Asia/Pacific Region conducted by IR Global Rankings <br />Emerged winner in 16 categories in the Euromoney Private Banking Poll 2007, including the Best local Private Bank <br />2006<br />Emerged in top 2 in 6 categories, including No 1 in 3 categories and "IT Team of the Year" award at the annual Banking Technology Awards 2007 <br />Runner’s up in the “Best Payments Initiative” category at the annual Banking Technology Awards 2006 <br />Kotak Securities was ranked The Most Customer Responsive Company for 2006 (Category - Financial Services) by Avaya Globalconnect<br />Awarded the Best Domestic Investment Bank and the Best Equity House in The Asset Triple A Country Awards<br />Awarded Voice of Customers Award for the Best Passenger Vehicle Finance Company in India in 2006 by Frost & Sullivan <br />Winner in 33 categories in the Asiamoney Private Banking Poll 2006 including the Best Private Bank award in Southern Asia <br />Ranked no. 1 in six categories in the Annual Euromoney Private Banking Survey Poll for 2006 for India <br />Best Investment Bank in India by Finance Asia<br />Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2006 according to Prime Database<br />Best Broker in India by Finance Asia<br />Topped the Asiamoney 2006 Brokers Poll as the Best Local Broker<br />Adjudged the best Mutual Fund House in the NDTV Business Leadership Award 2006<br />Best Bond Fund Group over Three Years by Lipper Fund Awards India <br />Ranked the best debt fund over 5 years by Lipper for the Kotak Bond Regular Plan<br />Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for the 'Kotak Bond Regular Plan'<br />2005<br />Ranked as the top mergers & acquisitions advisor in India in terms of the value of mergers & acquisitions deals announced from January to December 2005, according to Bloomberg<br />Topped the India Advisory Partners Indata League table in terms of the value of deals announced for the calendar year 2005 <br />Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2005 according to Prime Database<br />Best Broker in India by Finance Asia <br />Best Equity House in India by Euromoney <br />2004<br />Best Investment Bank in India by Finance Asia<br />Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2004 according to Prime Database<br />Best Investment Bank in India by Global Finance<br />India's Best Equity House in India by Finance Asia <br />Best Equity House in India by Euromoney <br />Best Equity House in India by Asiamoney<br />Best India Equity House by IFR <br />2003<br />Best Investment Bank in India by Finance Asia<br />Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2003, according to Prime Database <br />Best Equity House in India by Euromoney <br />Best Equity House in India by Asiamoney <br />ABOUT “KOTAK MAHINDRA BANK LTD.”<br />The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. Uday Kotak, Sidney A. A. Pinto and Kotak & Company promoted this company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that is when the company changed its name to Kotak Mahindra Finance Limited. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to launch its banking business. Kotak Mahindra Finance Ltd. is the first finance company in Indian banking history to convert to a bank. Since then it has been a steady and confident journey to growth and success.<br />Recently, Kotak Mahindra Bank Ltd and HDFC Bank have signed a Memorandum of Understanding to share their ATM network. This agreement will give customers of the two banks access to over 1400 ATMs across the country. The bank has the presence of commercial vehicles, retail finance, corporate banking, treasury and housing finance.<br />KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021UNAUDITED FINANCIAL RESULTS FOR THE PERIOD APRIL TO JUNE, 2009Rs lakhsSr NoParticularsQuarter EndedYear EndedJune-09 (Unaudited)June-08 (Unaudited)March-09 (Audited)1Interest earned (a+b+c+d)106,273.13104,190.41436,656.34(a) Interest/discount on advances/bills83,036.3981,827.86350,545.90(b) Income on investments22,168.4819,040.7475,957.73(c) Interest on balances with RBI & other banks221.321,944.095,621.68(d) Others846.941,377.724,531.032Other income (a+b)128,252.3644,534.31288,261.42(a) Profit/(Loss) on sale of investments including revaluation (insurance business)41,623.36(25,547.04)(51,812.66)(b) Other income (see Notes 1 and 5)86,629.0070,081.35340,074.083Total income (1+2)234,525.49148,724.72724,917.764Interest expended43,767.4346,582.56199,239.475Operating expenses (a+b+c)133,721.0474,755.49391,078.64(a) Payments to and provisions for employees28,266.2631,868.02119,251.05(b) Policy holders’ reserves, surrender expense and claims76,070.894,457.54113,946.90(c) Other operating expenses (see Note 2 and 5)29,383.8938,429.93157,880.696Total expenditure (4+5) (excluding provisions and contingencies)177,488.47121,338.05590,318.117Operating Profit before provisions and contingencies (3-6)57,037.0227,386.67134,599.658Provisions (other than tax) and contingencies (see Note 3)19,079.764,124.7132,979.469Exceptional items---10Profit from ordinary activities before tax (7-8-9)37,957.2623,261.96101,620.1911Tax expense10,699.499,329.7836,352.9812Profit from ordinary activities after tax before Minority Interest (10 – 11)27,257.7713,932.1865,267.2113Extraordinary items (net of tax expense)---14Profit from ordinary activities after tax before Minority Interest (12 – 13)27,257.7713,932.1865,267.2115Less: Share of Minority Interest28.99(1,034.06)372.8316Add: Share in Profit of associates(1,500.15)18.67344.2517Profit after tax (14-15+16)25,728.6314,984.9165,238.6318Paid Up Equity Capital - (Face Value of Rs. 10 per share)34,629.8334,504.7734,566.8919Group Reserves (excluding Minority Interest)617,687.5220Minority Interest6,286.0221Analytical Ratios(i) Earnings per Share (before and after extraordinary items)(a) Basic (not annualized) Rs.7.444.3518.9(b) Diluted (not annualized) Rs.7.414.2918.87(ii) NPA Ratios(a) Gross NPA108,447.8065,398.1083,208.43(b) Net NPA66,791.1240,520.1045,430.59(c) % of Gross NPA/ Gross Advances4.582.793.64(d) % of Net NPA/ Net Advances2.871.752.02(e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs)3.411.152.44(f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs)2.070.471.18(iii) Return on Assets (average) (not annualised)0.610.371.61NOTES:1. Details of other income forming part of the Consolidated unaudited results are as follows:Rs lakhsParticularsQuarter EndedYear EndedJune-09 (Unaudited)June-08 (Unaudited)March-09 (Audited)Commission, fees, exchange and brokerage29,985.3328,913.82103,406.75Premium on insurance business42,682.8539,243.43230,709.63Profit on sale of investments incl. revaluation (other than insurance business)10,353.933,876.55(8,011.18)Others3,606.899,244.3313,968.88Total – Other income86,629.0070,081.35340,074.082. Details of other expenditure forming part of Consolidated unaudited results are as follows:Rs lakhsParticularsQuarter EndedYear EndedJune-09 (Unaudited)June-08 (Unaudited)March-09 (Audited)Brokerage3,794.026,537.7628,244.66Depreciation3,320.062,928.0812,593.23Rent, taxes and lighting5,765.395,158.6922,085.27Others16,504.4223,805.4094,957.53Total – Other operating expenses29,383.8938,429.93157,880.69 3. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous year/s.4. The consolidated financial results are prepared in accordance with Accounting Standard – 21, “Consolidated Financial Statements “ and ( AS ) - 23 “ Accounting for investment in associates in consolidated financial statement “ issued by The Institute of Chartered Accountants of India.5. Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to Rs. 1,520.76 lakhs for the quarter ended 30th June, 2009 (Rs. 1,089.68 lakhs for the quarter ended 30th June, 2008), for year ended 31st March, 2009 Rs. 3,772.46 lakhs. 6. Figures for the previous period/ year have been regrouped wherever necessary to conform to current period / year presentation.KOTAK MAHINDRA BANK LIMITED (STANDALONE)Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021Unaudited Financial result for the period ended 30 June 2009Rs lakhsSr NoParticularsQuarter EndedYear EndedJun-09 (Unaudited)Jun-08 (Unaudited)Mar-09(Audited)1Interest earned (a+b+c+d)76,730.2371,246.77306,514.40(a) Interest/ discount on advances/ bills60,973.5656,444.10249,372.58(b) Income on investments15,718.7014,511.0255,840.38(c) Interest on balances with RBI & other banks20.42250.081,172.35(d) Others17.5541.57129.092Other income12,692.908,312.6135,786.263Total income (1+2)89,423.1379,559.38342,300.664Interest expended35,832.1336,000.07154,659.755Operating expenses (a+b)25,161.6331,200.96119,642.29(a) Payments to and provisions for employees12,120.1115,206.2155,683.48(b) Other Operating expenses13,041.5215,994.7563,958.816Total expenditure before provisions & contingencies (4+5)60,993.7667,201.03274,302.047Operating Profit (3-6)28,429.3712,358.3567,998.628Other provisions & contingencies (See Note 1)15,741.724,169.8525,392.889Exceptional items---10Profit / Loss from ordinary activities before tax (7-8-9)12,687.658,188.5042,605.7411Provision for taxes3,656.542,735.3414,996.0212Net Profit / Loss from Ordinary Activities after tax (10-11)9,031.115,453.1627,609.7213Extraordinary items (net of tax expense)---14Net Profit / Loss for the Period (12-13)9,031.115,453.1627,609.7215Paid Up Equity Capital - (Face Value Rs. 10 per share)34,629.8334,504.7734,566.8916Reserves excluding revaluation reserves346,794.9017Analytical Ratios(i) % of shares held by Govt. of India---(ii) % Capital adequacy ratio (See Note 3)18.5718.5820.01(iii) Earnings Per Share (EPS) for the period- Basic Rs.2.611.588- Diluted Rs.2.61.567.99(iv) NPA Ratios(a) Gross NPA86,996.7152,659.4373,071.09(b) Net NPA52,910.2031,637.3439,684.20(c) % of Gross NPA to Gross Advances4.953.174.31(d) % of Net NPA to net Advances3.071.932.39(e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs)3.381.342.7(f) % of Net NPA to net Advances (excluding NPAs acquired from other banks and NBFCs)1.980.571.26(g) Return on Assets %(average) - Not Annualized0.30.211.0318Public Shareholding(i) No. of shares178,445,597161,642,329164,556,059(ii) % of shareholding51.5446.8547.6219Promoters and promoter group shareholdinga) Pledged/encumbered- Number of shares50,00050,000- Percentage of shares (as a % of the total shareholding of promoter and promoter group)0.03%0.03%- Percentage of shares (as a% of the total share capital of the company)0.01%0.01%b) Non-encumbered- Number of shares167,793,544181,053,669- Percentage of shares (as a% of the total shareholding of promoter and promoter group)99.97%99.97%- Percentage of shares (as a % of the total share capital of the company)48.45%52.38%Segment ResultsThe reportable segments of the bank are as under:SegmentPrincipal activityTreasury and BMUMoney market, forex market, derivatives, investments and primary dealership of government securities and Balance Sheet Management Unit (BMU) responsible for Asset Liability Management.Retail BankingIncludes lending, deposit taking and other services/ products including credit cards.Corporate/Wholesale BankingWholesale borrowings and lendings and other related services to the corporate sector which are not included under retail banking.Sr NoParticularsQuarter EndedYear Ended30th June, 2009(Unaudited)30th June, 2008(Unaudited)31st March, 2009(Audited)1Segment Revenuea. Treasury and BMU25,272.7418,310.8191,744.55b. Corporate/ Wholesale Banking22,658.0824,225.8388,793.21c. Retail Banking67,390.5762,755.65275,219.05Sub-total115,321.39105,292.29455,756.81Less : Inter-segmental revenue25,898.2625,732.91113,471.09Add : Unallocated Income--14.94Total89,423.1379,559.38342,300.662Segment Resultsa. Treasury and BMU8,852.67275.5812,928.58b. Corporate/ Wholesale Banking5,698.617,021.7022,534.32c. Retail Banking(1,863.63)891.227,127.90Sub-total12,687.658,188.5042,590.80Add : Unallocated Income--14.94Total Profit Before Tax12,687.658,188.5042,605.743Capital employed (Segmental Assets less Segmental Liabilities)a. Treasury and BMU147,730.22128,259.35124,493.33b. Corporate/ Wholesale Banking86,502.2884,869.4698,696.41c. Retail Banking153,683.43142,564.11152,686.44d. Unallocated5,619.294,348.225,485.61Sub-total393,535.22360,041.14381,361.79Notes 1. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous period/ year. 2. Stock options aggregating to 6.29 lakhs were exercised by the employees during the quarter and 110.35 lakhs stock options were outstanding with employees of the Bank and its subsidiaries as at 30th June, 2009. 3. The Bank has adopted Basel II framework as of 31st March 2009. Accordingly the Capital Adequacy Ratio (CAR) as at 30th June, 2009 and as at 31st March, 2009 is as per Basel II framework and as at 30th June, 2008 is as per the Basel I framework. 4. The Bank had no outstanding shareholder complaints as at 31st March, 2009. During the quarter the Bank received 12 complaints from shareholders. All shareholder complaints have been resolved and there are no pending complaints as at 30th June, 2009. 5. Figures for the previous period/year have been regrouped wherever necessary to conform to current period / year presentation.6. There has been no change in significant accounting policies during the quarter.7. The results for the quarter ended 30th June 2009 have been subjected to a “limited review” by the statutory auditors of the bank.<br />MAJOR COMPETITORS<br />Indian govt sector banks:<br />State Bank of India<br />Allahabad Bank<br />Andhra Bank<br />Bank of Baroda<br />Bank of India<br />Central Bank of India<br />Punjab national Bank<br />Oriental Bank of commerce<br />Old generation private sector banks<br />Federal Bank<br />Karnataka Bank<br />New generation private sector banks<br />HDFC Bank<br />ICICI Bank<br />Axis Bank<br />IDBI Bank<br />Foreign banks<br />HSBC<br />Standard Chartered Bank<br />Distribution companies<br />NBFC’s:<br />Fulltron India<br />Cholamandalam <br />Future money <br />Tata finance<br />Dukes finance<br />Muthoot finance<br />OBJECTIVE OF THE STUDY<br />To find out the individual requirements of investors-customers.<br />To analyze whether customers are aware of & utilizing the product and services provided by Kotak.<br />To access whether the investment account of Kotak is beneficial and helping the customers to increase their wealth.<br />To properly track the wealth creation products & being advised to the correct target segment/audience.<br />To find whether customers are satisfied with Kotak as an investment destination.<br /> <br />INVESTMENT AVENUES OFFERED BY KOTAK<br />Mutual Funds:<br />A mutual fund is a professionally managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. The fund manager, also known as portfolio manager, invests and trades the fund's underlying securities, realizing capital gains or losses and passing any proceeds to the individual investors. There is a variety of mutual funds.There are debt funds that invest only in bonds. Thus the returns they get are more of less similar to the returns from a fixed deposit. They usually invest in bonds with higher ratings and thus are safe to a great degree.There are equity funds that invest only in stocks. Stocks carry higher risk and probability of higher returns. Hybrid funds / balanced funds invest in equity as well as debt. Money market funds invest in short term investments such as treasury bills, certificates of deposit, commercial paper, inter-bank call money, government securities etc. These are best suited for people who have a large sum of money to invest for a short time with minimum risk.<br />Kotak Private Equity Kotak Private Equity Group (KPEG) is a specialist Private Equity arm of Kotak Mahindra Group. It is a leading Private Equity Fund Manager focused on helping emerging corporate and mid-size enterprises evolve into tomorrow's industry leaders. KPEG provides these companies a combination of equity capital, strategic support and other value added services, playing a pro-active role with the entrepreneur in building the business.<br />It invest in companies across a broad range of industries seeking capital for business expansions, acquisition financing and buyout transactions. The size of their initial investment is typically between USD 15mn and 40mn depending on the nature of the company's business, stage of growth and its financing requirements. It also lead transactions greater than USD 40mn through co-investment from our reputed Limited Partners, Kotak’s international relationships and/or other Private Equity Funds.<br />While the Kotak Group has been associated with Private Equity investments since 1997, to bring a sharper focus to the Group's Alternate Assets strategy, Kotak Mahindra Bank initiated its first structured third party Private Equity Fund in early 2005. Since then, the Alternate Assets business of the Group has grown to around USD 1.4 billion under management across two asset classes namely – Private Equity & Real Estate, both led by independent investment teams. <br />The Alternate Assets business currently consisting of Private Equity and Real Estate has since been restructured under Kotak Investment Advisors Ltd (“KIAL”), a subsidiary of Kotak Mahindra Bank, set up to focus on managing the Alternate Assets business of the Kotak Group. As part of KIAL, KPEG currently manages / advises two funds across two strategies – Growth Capital (India Growth Fund) and Venture Capital for Life Sciences.<br />Kotak Reality Fund <br />Kotak Realty Funds Group (KRFG) is a division of Kotak Investment Advisors Ltd (KIAL) that focuses on Real Estate Investment opportunities. Established in May 2005, it is one of India's first private equity funds with a focus on real estate and real estate intensive businesses It actively considers investment opportunities with the local developers and projects in the residential, commercial and other real estate sectors.<br />Kotak Realty Funds Group (KRFG) plans to opportunistically invest in and add value to Portfolio Investments across a broad spectrum of real estate sectors and geographies. Its investment objective is to produce long-term capital appreciation for investors by providing capital to real estate-related projects and companies across India. Kotak Realty Funds Group (KRFG) will seek to invest in opportunities that are best positioned to capitalize on the positive economic impact of forces driving Indian real estate, including:<br />Long-term property enhancement driven by development of urban infrastructure such as new airports, mass transit systems, intra-city expressways and national events such as the Commonwealth Games 2010<br />Increased off shoring by international companies<br />Demographic shifts stimulating home ownership<br />Robust consumer spending favoring organized retail<br />Institutionalization of property markets<br />Inflow of foreign business travelers and tourists<br />Large cohort of well-educated technical workers and expansion of the middle class<br />Proliferation of financial services to the retail market<br />INSURANCE:<br />Insurance is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.<br />As an insurance broker, Kotak provides following insurance product to its client:<br />1) Kotak Smart Advantage optimizes the return on your premiums paid through a smart mix of assured additions and 100% premium allocation. Your first year’s premium contributes towards guaranteeing you an Assured Addition Advantage that boosts your fund value at regular intervals throughout the term of the policy. The longer your premium paying term, the higher will be the value of the advantage. The Assured Addition Advantage is a powerful combination of two benefits: <br />A. Fixed Advantage <br />The Fixed Advantage benefit is an assured value guaranteed at the end of your premium payment term. This benefit is calculated as a percentage of your first year premium depending on the premium payment term chosen, provided your policy is in force and all premiums are fully paid up to date. <br />Premium Payment Term 3 or 5 years 10 years 15 years 20 years 25 years 30 years. Fixed Advantage Benefit (as a percentage of First Year Premium) 100% 110% 135% 175% 225% 275%.<br />B. Dynamic Advantage <br />The Dynamic Advantage benefit is an assured bonus addition credited to your fund value at the end of every 10th, 15th, 20th, 25th and 30th policy year. This benefit will be calculated as a percentage of the average value of funds in the three years preceding the benefit allocation, provided your policy is in force and all premiums are fully paid up to date. <br />At the end of Policy Year 10 years 15 years 20 years 25 years 30 years. <br />Dynamic Advantage Benefit (as a percentage of average fund value in the last three years) 1.10% 1.35% 1.75% 2.25% 2.75%.<br />2) Kotak Flexi plan. : Kotak flexi plan is another ideal option if you want a comprehensive long-term solution for managing your financers. You want insurance to be an important part of portfolio to protect your love ones. You think that financial concepts require lot of time to grasp and are probably best left to the experts.<br />How does this Plan work?<br />Decide the amount of savings (premium) one should make each year.<br />Decide the term of policy depending on the goals that one have in mind.<br />Choose the fund option to balance one’s risk profile and tenure of investment.<br />Opt for any of the optional rider benefits to enhance flexibility and boost the life style benefits of one’s plan.<br />Key Features:<br />InvestmentOptionEquity(high risk)Debt(medium risk)Cash and money market (low risk)Risk return profileObjectiveAggressiveGrowthGuaranteed / dynamicGrowth60%-100%40%-80%0%-40%20%-60%0%0%-20%AggressiveHigh risk high return.Downside riskGuaranteed / dynamicBalanced30%-60%20%-70%0%-20%ModerateMedium growth through diversified investmentDynamic bond-0%-100%0%-20%SafeLow risk and fixed returnDynamic gilt-80%-100%0%-20%SafePreserved capital and low risk<br />Term deposits<br />Invest in Kotak Bank Term Deposit. We offer attractive returns on term deposits and investing in them is really simple and convenient.<br />Features & Benefits<br />Ease and convenience of operation Not a Kotak Bank customer and wish to apply for term deposit, online. For the first time in India, New To Bank customer can also apply online for term deposit. <br />If you are an existing customer, you can place a term deposit through Phone Banking or Net Banking. What's more, you can even renew this deposit by placing an instruction over phone. Needless to mention, he can do all this and more by walking across into any of our branches.<br />Liquidity through overdraft or sweep-in facility. Your deposit will be available to you should you need them in case of an emergency. You can avail upto 85% overdraft against your term by paying 2% above your deposit rate. This facility is available for deposits above Rs.50,000 for a tenure of 181 days or more. You can also choose to link your term deposit to your savings / current account, whereby if need be, your term deposit will automatically be encased to meet your withdrawal requirement.<br />No penalty on pre-mature encashment in case your term deposit is pre-maturely enchased, you will earn interest at the rate prevailing on the date of deposit for the withdrawn amount.<br />Demat/Equity:<br />Kotak Mahindra provides end-to-end equity solutions to institutional and individual investors. Consistent delivery of high quality advice on individual socks, Sectors trends and investment strategy has established us a competent and reliable unity across the country.<br />Client can trade through us online on BSE and NSE for both equities and derivatives. They are supported by dedicated sales and trading teams in our trading desk across the country .research and investment ideas can be accessed by clients either through their designated dealers, email, web or SMS.<br />Gold as an investment:<br />Gold is the oldest currency in the world and is coveted across continents and cultures for a variety of reasons.<br />Maintains long-term value Market cycles have their ups and downs, but gold has maintained its long-term value. Paper currencies may rise and fall but gold always endures. Gold has demonstrated its capacity to store value for centuries<br />Safe refuge during times of calamities like war or economic crisis, there may be a negative effect on investments like currencies, bonds and equities, but may have an opposite effect on the value of gold. Also gold is not a liability of any government or corporation and hence it does not run a risk of becoming worthless due to unexpected events. <br />Inflation Hedge The value of gold, in terms of real goods and services that it can buy, has remained remarkably stable whereas the purchasing power of many currencies has generally declined<br />Helps build a robust portfolio adding gold to a portfolio introduces an entirely different asset class. Portfolios that contain gold are generally more robust and better able to cope with market uncertainties than those, which don't. Recent independent studies have shown that traditional diversifiers (such as bonds and alternative assets) often fail during times of market stress or instability. Even a small allocation of gold has been proven to significantly improve the consistency of portfolio performance during both stable and unstable financial periods. <br />Effective Diversifier diverse investments help protects the portfolio against fluctuations in the value of any single asset class. Gold is an excellent portfolio diversifier because its performance tends to move independently of other investments and key economic factors. <br />Both tangible and liquid Gold is an asset that is both tangible and liquid, unlike real estate, which is tangible but not liquid, or company shares and bonds, which are liquid but not tangible.<br />CHAPTER 3<br />ANALYSIS AND INTERPRETATION OF DATA<br />GENDER OF RESPONDENTS<br />MALE38FEMALE12<br />Analysis:<br />Among all respondents 76 % are male and 24 % are female. Therefore female respondents are less in responding to the investment options.<br />AGE OF RESPONDENTS<br />AgeNo. of Respondents20-30930-401540-501050-6014Above 602<br />Analysis:<br />The most of the respondents from the age group 30-40 are more interested in investments.<br />OCCUPATION OF THE RESPONDENTS:<br />OCCUPATIONNO OF RESPONDENTSSERVICE19BUSINESS12SELF EMPLOYED11PROFESSIONAL8<br />Analysis: <br />Service class is keener to make investment and professionals are least concerned with investment.<br />ANNUAL INCOME OF THE RESPONDENTS:<br />Annual incomeNo of respondents2-5 lakhs255-10 lakhs1110-15 lakhs9Above 15 lakhs5<br />Analysis:<br />Persons with Annual income of 2-5 lakhs are more attracted to savings as to make future consumptions with maximum 50 % than other income earners.<br />MEMBERS IN YOUR FAMILY<br />MembersNo of respondents1-364-6277-1013More than 104<br />Analysis:<br />Maximum respondents are from family of 4-6 members with 55 % share.<br />INVESTMENTS<br />ProductNo. of RespondentsKotak Gold Eternity5Kotak Trinity8Kotak Mutual Fund15Kotak Life Insurance9Kotak Reality Fund3<br />Analysis:<br />People are more interested in investing in mutual funds than other products of Kotak.<br />AMOUNT INVESTED:<br />AmountNo of respondentsLess than 50,0001250,000-1,00,000241,00,000-5,00,0008More than 5,00,0006<br />Analysis:<br />The amount of investment made is more in 50,000-1,00,000 range i.e. 48 %.<br />HOLDING PERIOD OF INVESTMENT:<br />PeriodNo of respondentsLess than 1 year81-5 years235-10 years141-15 years5<br />Analysis:<br />The period of investment for 46 % respondents is 1-5 years and less people are interested in investing for 10- 15 years.<br /> <br />PURPOSE OF INVESTMENT<br />PurposeNo of respondentsRate of return20Safety9Risk factor6Tax benefit15<br />Analysis:<br />The purpose for investment for most of the respondents is for better rate of return and risk factor is less important for them.<br />RISK TOLERANCE:<br />Risk ToleranceNo of respondentsHigh15Medium25low10<br />Analysis:<br />50 % of the respondents are medium risk taker and 30 % of the respondents are high risk taker and 20 % of the respondents are low risk taker.<br />EXPECTED RATE OF RETURN<br />Expected returnNo of respondents5-10%1310-15%1715-10%12More than 20%8<br />Analysis:<br />Respondents with expected return of 10-15 % are 17 and more than 20 % return are 8. Therefore the respondents are less expected of high returns.<br />RETURN EARNED ON INVESTMENT<br />Return earned%Equity15Mutual funds20Insurance20gold25<br />Analysis:<br />Gold has the maximum return on investment for the period of one year holding and after that insurance and mutual funds have given equal returns which shows that investment made through asset management would give better returns also. <br />OVERALL RETURN EARNED<br />Overall return earned%High risk27Medium risk16Low risk9<br />Analysis:<br />The respondents who have high risk affordability have 27 % return and who have medium risk have 16 % return and who have low risk profile 9 % return.<br />CHAPTER 4<br />FINDING, SUGGESTIONS AND LIMITATIONS<br />FINDINGS<br />As per analysis it is found that people want to takes risk as 55% people were ready to take moderate risk & 25% people were ready to take the high risk so to get the higher return.<br />People are more interested in mutual funds than direct exposure to equity market.<br />People in Raipur are more aware about gold as an investment.<br />Also people want to save their income tax so that is why they invest in various products offered by the bank.<br />The promotional activity of KMBL is quite average due to which people generally do not know about KMBL.<br />As per analysis of data it was found, that majority of customers want to grow their money through mutual fund and insurance.<br />While doing summer training it was found that most of the people are not aware about KMBL.<br />SUGGESTIONS<br />Spread awareness about the investment facilities and the products among the people of Raipur.<br />KMBL should increase the number of branches in Chhattisgarh as it becomes a hindrance in the path of their success, as willing individuals don’t get associated due to unavailability of branches.<br />People in Raipur are not aware of Kotak Mahindra as a bank therefore they should also focus on promotional activities <br />KMBL should advise their customers regularly about their various investment schemes.<br />KMBL should open more ATMS as it has to increase the flow of money more.<br />KMBL should promote their bank through advertisement or through other channel. So that everybody should get aware of this bank.<br />KMBL must emphasize more to make more and more customers contact.<br />Time to time KMBL should take their customers feedback, so that they can asses themselves.<br />KMBL should launch the following products soon i.e. home loans, credit cards and education loans. because many person are there who have asked about these products.<br />Mobile banking provided KMBL is not working properly, so KMBL should take this into consideration and try to eradicate such problems.<br />Limitations:<br />Every work has its own limitations. Limitations are extent to which the process <br />Should not exceed. The following limitations for the project are:<br />Duration of project was not enough to make our conclusion on such a vast. <br />Time constraints have also become a major limitation.<br />The sample size taken for drawing the conclusion was not sizeable.<br />Investor ignorance was faced during discussions with respondents.<br />Answers given by the customers and bank personnel might be biased, which may have my project.<br />Bias or inhibition of individuals in order to fill the questionnaire.<br />Since the sample size is small thus we could not come to an exact conclusion.<br />CONCLUSIONS<br />From the analysis we reach to the conclusion that people want to invest in such product where they get high return with minimal risk.<br />Investment in equity market should be more for high return.<br />BIBLIOGRAPHY AND WEBILIOGRAPHY<br />Bibliography and Webiliography includes references, books, magazines, web sites and newspapers that are used during any research. I used following bibliography and Webiliography during my research project.<br /><ul><li>Kothari C.R. “Research Methodology”-New Age International Publishers.
Others. </li></ul>Questionnaire<br /> Respected Sir/Madam,<br />I am conducting a research titled as “ANALYSIS OF RETURN ON INVESTMENT OF CUSTOMERS OF KMBL VIS-A-VIS MARKET TRENDS AND CUSTOMER NEEDS”. I need your help in conducting this survey. I need your precious and valuable inputs/views/opinions. You can give your precious inputs with the help of filling the questionnaire which has given below. The information will keep confidential and will be exclusively used for academic purpose. <br />Respondent’s Information:<br />NAME:<br />ADDRESS:<br />MOBILE NO:<br />GENDER: [ ] Male [ ] Female<br />AGE: [ ] 20-30 [ ] 30-40 [ ] 40-50 [ ] 50-60 [ ] above 60<br />OCCUPATION: [ ] Service [ ] Business [ ] Self employed [ ] Professional<br /><ul><li>What is your annual income?</li></ul>[ ] 2-5 lakh [ ] 5-10 lakh [ ] 10-15 lakh [ ] above 15 lakh<br /><ul><li>How many members are there in your family?</li></ul> [ ] 1-3 [ ] 4-6 [ ] 7-10 [ ] More than 10<br /><ul><li>Do you have any investment in KMBL?</li></ul>[ ] Yes [ ] No <br /><ul><li>If yes, then in which product you have invested</li></ul>[ ] Kotak gold Eternity[ ] Kotak Trinity [ ] Kotak mutual fund<br />[ ] Kotak life insurance[ ] Kotak reality fund<br /><ul><li>How much amount you have invested/you want to invest?</li></ul>[ ] Less than 50,000[ ] 50,000-1,00,000<br /> [ ] 1,00,000-5,00,000[ ] More than 5,00,000<br /><ul><li>On which investment option you want to invest/have invested:</li></ul>Investment optionAmount (Rs.)Mutual fundInsuranceTrinityGoldReality fund<br /><ul><li>If mutual fund, please give details about product and return earned:</li></ul>Product nameAmount invested (Rs.)Return earned (%)<br /><ul><li>If insurance, please give details about product and return earned:</li></ul>Product nameAmount invested (Rs.)Return earned (%)<br /> <br /><ul><li>What is the holding period of investment?</li></ul> [ ] less than 1 year [ ] 1-5 years [ ] 5-10 years [ ] 10-15 years<br /><ul><li>What was the purpose of your investment?</li></ul> [ ] Rate of return [ ] Safety [ ] Risk factor [ ] Tax benefit<br /> <br /><ul><li>How much risk you can afford?</li></ul> [ ] High [ ] Medium [ ] Low<br /><ul><li>What is the rate of return you are looking for?</li></ul> [ ] 5-10% [ ] 10-15% [ ] 15-20% [ ] more than 20%<br /><ul><li>What mode of return you prefer?</li></ul> [ ] Monthly [ ] Quarterly [ ] Half yearly [ ] Annually <br /><ul><li>What mode of investment you prefer </li></ul> [ ] Monthly [ ] Quarterly [ ] Half yearly [ ] Annually <br />Thank You for your valuable inputs and options.<br />