This document presents a comparative analysis of the investment portfolios of business class and service class investors of HSBC InvestDirect in Ludhiana. It finds that business class investors prefer higher risk investments like equity and real estate and have a longer investment horizon. They fall under an aggressive capital appreciation portfolio. Service class investors prefer lower risk investments like mutual funds and are more likely to withdraw during market fluctuations. They have a balanced portfolio seeking moderate risk and return. The analysis is based on a survey of 100 investors using the portfolio management services of HSBC InvestDirect.

1. A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of HSBC InvestDirect in Ludhiana Presented by- SupriyaNayyar

3. Aimed to finance the growing trade between Europe, India & China.

4. By 1880s, the bank was acting as banker to Hong Kong Government.

6. Headquarters in London.

9. It has 47 branches & 170 ATMs across 26 cities.

10. It has over 34,000 employees in its Banking, Investment Banking & Capital Markets.

12. HSBC acquired 43.85% of InvestSmart from E*TRADE Mauritius Ltd.

13. HSBC has accepted shares to Public shareholders equivalent to 20.65% of InvestSmart’s capital.

16. Advisory Services.

18. Smart Invest

20. Other Services Online services. Research and Financial Analysis. Value added services.

22. Mr. AvdhootDeshpande Head - Equity and Capital Markets

23. Mr. Vipul Shah Head - NBFC

24. Mr. Dharmen shah Vice President - Institutional Equity

25. Mr. JaideepAnand Senior Vice President - Institutional Sales & Dealing

26. Mr. C. Diwakar Chief Information Officer

28. SWOT ANALYSIS Strengths:- Customization. Expertise. Unique Features. Research Agency. Extensive reach. Brand image. Competitive pricing. Weaknesses:- Expensive Products. Tedious Procedures. Fund Transfer. Attrition.

29. Continued………. Opportunities:- Right Time to Investors to re-enter into market. Huge untapped Markets. Increasing number of Graduates. Increase Tie-ups for Fund Transfer. Threats:- Stiff Competition. Increasing awareness of Mutual Funds & ULIPS.

30. RATIO ANALYSIS Current Ratio

31. Quick Ratio

32. Return on Total Assets

33. Net Profit Ratio

34. Debt-Equity Ratio

35. Investment Portfolio Investment is a commitment of funds made in the expectation of some positive rate of return. The Investment needs of an Investor:- Capital Preservation. Wealth Generation. Tax Savings. Income. Future Uncertainty. Retirement Planning.

36. Investment Planning It helps in deciding upon the right Investment strategy. It is a balance of three components:- Liquidity. Risk Tolerance. Return.

37. Types of Investment

39. An Optimal Portfolio provides the highest possible utility, given the constraints imposed by the opportunity set and efficiency frontier.

41. Investment Pyramid

43. The Primary objective of iPreserve is to manage investments in Mutual Funds, encompassing both debt as well as equity schemes.

46. Adding Scrips

47. Scrip wise split of Portfolio Holdings

48. Realized Gains Report

49. Title A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of HSBC InvestDirect in Ludhiana.

50. Objectives To study the demographical factors affected the choice of Portfolio of Investors. To identify the purpose of investment & extent of financial literacy of Investors. To know the most preferred Investment avenues of Investors. To find out the Risk Tolerance limit of Investors.

56. Fig 4.1:- The Investors’ Demographic Profile (Gender)

57. Fig.4.2:- The Age Group of Investors.

58. Fig. 4.3:- The Marital Status of Investors.

59. Fig. 4.4:- The Investors are having Dependents.

60. Fig.4.6:- Monthly Flow of Income of Investors.

61. Fig.4.7.1:- Awareness among Business class Investors regarding various Investment Plans.

62. Fig.4.7.2:- Awareness among Service Class Investors regarding various Investment Plans.

63. Fig.4.8:- The Purpose of Investors behind their Investments.

64. Fig.4.9:- The Basis which initiates the Investors to invest in any Financial Security.

65. Fig.4.10:- Important Features required in Investors’ Portfolio Plan.

66. Fig.4.11:- Most Preferred Investment Avenues by the Investors.

67. Fig.4.12:- Type of Investments which are covered under their Current Portfolio.

68. Fig.4.13:-Important sources of Information which influence the Investors’ decision regarding their Investments.

69. Fig.4.15:- The Time Period for which Investors prefer to keep their Investments.

70. Fig.4.16:- The Decision of the Investors at the time of Fluctuation in the Market.

71. Fig.4.17:- The Investors belong to Risk Category.

74. Whereas Service class Investors have the awareness of all Investment avenues especially Insurance schemes and Equities and very few of them don’t know about Derivatives. They do Investments with the purpose of Capital Appreciation & they do Investments by having Portfolio Services Initiation as well as Fundamental analysis of that particular Scrip/Company.

77. They wait & watch or they invest more whenever they noticed any fluctuation in the market .

78. That’s why they come under Aggressive Capital Appreciation Category which refers to higher risk & higher returns.

79. Whereas the Service class Investors have most preferred Investment Avenue is Mutual Fund so they keep it for long period and most of them withdraw their Investment or they wait & watch when any fluctuation is noticed in the market.

81. They come under the Aggressive Capital Appreciation Portfolio.

82. Whereas; the Service Class Investors are less Risk taking.

83. Whenever they noticed any fluctuation in the market they try to withdraw their money.