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A PROJECT REPORT ON WEALTH MANAGEMENT

A Thesis submitted in partial fulfilment of the requirements for the award of the degree of

BACHELORS OF BUSINESS ADMINISTRATION

BY

NISHANT MEHRA
(BBA/4581/10)

DEPARTMENT OF MANAGEMENT BIRLA INSTITUTE OF TECHNOLOGY MESRA-835215, RANCHI

DECLARATION CERTIFICATE

This is to certify that the work presented in the thesis entitled A Project report on wealth management in partial fulfilment of the requirement for the award of Degree of Master of Business Administration of Birla Institute of Technology Mesra, Ranchi is an authentic work carried out under my supervision and guidance. [Arial 14, Justify] To the best of my knowledge , the content of this thesis does not form a basis for the award of any previous Degree to any one else.

Date:

(Guides Name & Signature) Department of Management Birla Institute of Technology Mesra, Ranchi

Head Dept. of Management Birla Institute of Technology Mesra, Ranchi- 835215

CERTIFICATE OF APPROVAL

The foregoing thesis entitled A Project report on wealth management, is hereby approved as a creditable study of research topic and has been presented in satisfactory manner to warrant its acceptance as pre-requisite to the degree for which it has been submitted. It is understood that by this approval, the undersigned do not necessarily endorse any conclusion drawn or opinion expressed therein, but approve the thesis for the purpose for which it is submitted.

(Internal Examiner)

(External Examiner)

(Director) Head of the Department

Acknowledgement
It gives me immense pleasure to present this project report carried out at Aditya Birla Finance Limited(sales office), patel chowk. This project is the result of time, efforts and knowledge contributed by various member of the organization. The summer training program was the great experience for me as in this I got the opportunity to learn and experience the corporate world. No work can be carried out without the help and guidance of various persons. I am happy to take this opportunity to express my gratitude to those who have been helpful to me in completing this project report. They have been the source of guide and motivation for the completion of project. I would like to thank my industry mentor Mrs Rachna Pratiek for giving valuable time, advice, assistance which has helped me to gain practical and theoretical aspect of the market. I would be failing in my duty if I do not express my deep sense of gratitude to Mr. Netrapal Singh (supervisor at ABFL) to help me out with the project report.

Nishant Mehra BIT

Executive Summary
Private wealth management (PWM) is the term generally used to describe highly customized and
sophisticated investment management and financial planning services delivered to high net worth investors. Generally, this includes advice on the use of trusts and other estate planning, vehicles, business succession or stock option planning, and the use of hedging derivatives for large blocks of stock. Traditionally, the wealthiest retail clients of investment firms demanded a greater level of service, product offering and sales personnel than were received by the average clients. With an increase in the number of affluent investors in recent years, there has been an increasing demand for sophisticated financial solutions and expertise throughout the world. Private Wealth Management is the retail division focused on serving clients with greater than Rs 1 crore in investment assets.

Wealth management is an investment advisory discipline that incorporates financial planning, investment
portfolio management and a number of aggregated financial services. High Net worth Individuals (HNWIs), small business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management. Wealth managers can be an independent Certified Financial Planner, MBAs, Chartered Strategic Wealth Professional, CFA Charter holders or any credentialed professional money manager who works to enhance the income, growth and tax favoured treatment of long-term investors. Wealth management is often referred to as a high-level form of private banking for the especially affluent. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective.

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over
time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular instalments, or partial repayments; in an annuity, each instalment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. In todays time, Loan has become an very important medium to arrange funds for various purposes. People require loan for buying property, for purchasing shares, mutual funds etc and Aditya Birla Finance Limited specialises in providing these services to their Customers.

The project assigned to me wasI. To identify and target companies providing Wealth Management services and Real Estate services to their clients. II. Approach them and give a presentation of the products and services offered by Aditya Birla Finance Limited for their clients. III. Get some more information about the company and also to know whether they would like to work in association with Aditya Birla Finance Limited with the help of a Questionnaire. IV. To analyse the results of all the Questionnaires

Contents

1) Chapter 1- Company Profile

2) Chapter 2- Problem statement and objectives of the study

3) Chapter 3- Research methodology

4) Chapter 4- Analysis and Interpretation

5) Chapter 5- Conclusion and Recommendations

6) Bibliography

7) Appendix

List Of Tables

S.NO
Table No-1 Table No-2 Table No-3 Table No-4

Title
Capital Market Products Corporate Finance Products Mortgage Products List Of Respondents

Page No.

List of Figures S.NO. Figure No. 1 Figure No. 2 Figure No. 3 Figure No. 4 Figure No. 5 Figure No. 6 Figure No. 7 Figure No. 8 Figure No. 9 Figure No. 10 Figure No. 11 Figure No. 12 Figure No. 13 Figure No. 14 Figure No. 15 Figure No. 16 Figure No. 17 Figure No. 18 Figure No. 19 Figure No. 20 Title Private Wealth Management (Bar Chart) Private Wealth Management (Pie Chart) Funds Investment(Bar Chart) Funds Investment (Pie Chart) Client Base (Bar Chart) Client Base (Pie Chart) Assets Under Management (Bar Chart) Assets Under Management (Pie Chart) Loan Facilities (Bar Chart) Loan Facilities (Pie Chart) Association with ABFL (Bar Chart) Association with ABFL (Pie Chart) HNI segment (Bar Chart) HNI segment (Pie Chart) Retail segment (Bar Chart) Retail segment (Pie Chart) Corporate segment (Bar Chart) Corporate segment (Pie Chart) NRI segment (Bar Chart) NRI segment (Pie Chart) Page No.

List of Abbreviations

S.NO 1 2 3 4 ABFL AUM HNI NRI

Abbreviation Name

Full Name Aditya Birla Finance Limited Assets Under Management High Net-worth Individuals Non Resident Indian

Chapter-1 Company Profile


1.1) Name: Aditya Birla Finance Limited (Multinational Company) Address: 2nd Floor, UCO Bank Building, Parliament Street, (sales office) New Delhi - 110 001 Telephone Number: 011-40115500 Fax: 011-41514999 Website: Adityabirlafinance.com Address of Head Office: Office No 1, 18th Floor, Tower No 1, Indiabulls Center, 841 Senapati Bapat Marg , Near Jupiter Mill Compound, Elphinstone Road, Lower Parel, Mumbai 400013 1.2) Aditya Birla Group
A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 133,000 employees, belonging to 42 different nationalities. The Group has been ranked Number 4 in the Global 'Top Companies for Leaders' survey and ranked Number 1 in Asia Pacific for 2011. 'Top Companies For Leaders' is the most comprehensive study of organisational leadership in the world conducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR and Leadership Advisory firm).

Over 53 per cent of its revenues flow from its overseas operations. The Group operates in 36 countries Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK and USA.

Globally, the Aditya Birla Group is: :: A metals powerhouse, among the worlds most cost-efficient aluminium and copper producers. HindalcoNovelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter. :: No.1 in viscose staple fibre

:: No.1 in carbon black :: The fourth-largest producer of insulators :: The fifth-largest producer of acrylic fibre :: Among the top 10 cement producers :: Among the best energy-efficient fertiliser plants :: The largest Indian MNC with manufacturing operations in the USA

In India: :: A top fashion (branded apparel) and lifestyle player :: The second-largest player in viscose filament yarn :: The largest producer in the chlor-alkali sector :: Among the top three mobile telephony companies :: A leading player in life insurance and asset management :: Among the top two supermarket chains in the retail business :: Among the top 10 BPO companies

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

Beyond business - The Aditya Birla Group: :: Works in 3,000 villages. :: Reaches out to seven million people, annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. :: Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social reform in India, Asia, Egypt, Philippines, Thailand, Laos, Indonesia, Korea and Brazil.

In India: :: Our Group runs 42 schools, which provide quality education to 45,000 children. Of these, over 18,000 children receive free education. :: Its 18 hospitals tend to more than a million villagers. :: In line with its commitment to sustainable development, has partnered with the Columbia University in establishing the Columbia Global Centres Earth Institute in Mumbai. :: To embed CSR as a way of life in organisations, has set up the FICCI Aditya Birla CSR Centre for Excellence, in Delhi. Aditya Birla Group companies- Grasim, Hindalco, Aditya Birla Nuvo Ltd, UltraTech cement etc.

1.2.1) Aditya Birla Nuvo Ltd


Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4 billion conglomerate by revenue size. It is part of Aditya Birla Group, a US$ 40 billion Indian multinational. Having a market cap of ~US$ 2 billion as on 29 February 2012, ABNL is present across Financial Services, Telecom, Fashion & Lifestyle, IT-ITeS and Manufacturing businesses. Anchored by over 60,000 employees, ABNL touches lives of more than 100 million Indians. Aditya Birla Nuvo Ltd. commands leadership position in India across its businesses: Aditya Birla Financial Services is a large non bank financial services player managing AUM of ~US$ 17 billion as on 31 December 2011 and having an annual revenue size of ~US$ 1.25 billion (2010-11). Trusted by 5.5 million customers and anchored by over 17,500 employees, it has a nationwide presence through more than 1,850 points of presence and about 200,000 agents / channel partners. ABFS is one of the two non bank players in India which rank among top 5 players in both the life insurance and asset management businesses.

Birla Sun Life Insurance (BSLI) is a 74:26 joint venture between ABNL and Sun Life Financial, Canada. BSLI improved its ranking to 4th among private players with an enhanced market share of 8.6 percent.

Birla Sun Life Asset Management (BSAMC) is a 50:50 joint venture with Sun Life Financial, Canada. BSAMC ranked 4th in India with an AUM size of US$ 13 billion as on 31 December 2011. It is one of the two best performers in terms of mobilizing equity AUM consecutively for past two years.

Aditya Birla Finance, the NBFC arm, has a book size of US$ 550 million as on 31 December 2011.

A prominent player in Private Equity, Wealth Management, Broking & General Insurance Advisory space.

ABNL holds 25.32 per cent in Idea Cellular, a US$ 6 billion company by market cap as on 29th February 2012. It posted revenue of US$ 3 billion. Idea is the third largest cellular operator in India with revenue market share at 14 per cent and it has been the highest gainer of revenue market share since past two years. Idea ranks among top 10 cellular operators in the world with more than 1.2 billion minutes of usage per day.

Madura Fashion & Lifestyle is the largest premium branded apparel player in India selling more than one apparel every two seconds. t sells leader brands viz., Louis Philippe, Van Heusen, Allen Solly and Peter England through 1,082 exclusive brand outlets spanning across 1.6 million square feet area besides more than 1,250 departmental stores and multi brand outlets.

Aditya Birla Minacs is among top ten BPO companies in India with revenue size of US$ 300 million . Second largest carbon black manufacturer in India (Aditya Birla Group is the largest in the world in terms of capacity)

Among the best energy efficient fertiliser plants in India

India's largest and the world's fourth largest manufacturer of insulators

Second largest manufacturer of viscose filament yarn in India

Largest manufacturer of linen fabric in India

1.2.2) Aditya Birla Finance Limited


Aditya Birla Finance (ABF) is one of Indias most reputed non-banking financial companies (NBFC). Incorporated in 1991, the company is one of the largest players in security based lending and pioneer of IPO Financing in India. ABFL offers specialized solutions in area of Capital Market, Corporate Finance, Mortgages (LAP, LRD) and Infrastructure Finance. Through its lending and financing solutions the company enables its customer to pursue ambitious growth strategies and execute value-creating transactions. Our aim is to open up a world of opportunities for you and help you achieve your full potential sooner than later. ABF is a part of Aditya Birla Financial Services (ABFSG). The group also has a strong presence across other verticals viz. life insurance, asset management, retail broking, distribution and wealth management, general insurance broking and private equity. The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd, and Aditya Birla Insurance Brokers Ltd. ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its 7 lines of businesses, with about 5.5 million customers manages assets worth USD 19 billion approximately and prides itself for having a talent pool of about 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1600 points of presence and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything under financial services except a savings or current account. With revenue of over USD 1.3 billion ABFSG is a significant non bank player. ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a USD 3.5 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a USD 30 billion Indian business house operating in 33 countries across the globe. 1.3) Vision

To be a leader and role model in a broad based and integrated financial services business. Values Our core values describe the attitude and behaviour, we believe are central to delivering world-class client service. We have five core values that are at the heart of everything we do: 1) Integrity 4) Speed 2) Passion 5) Seamlessness 3) Commitment

1.4) Products And Services


Capital Markets
The Capital Market Group offers its customers the best opportunity to meet their liquidity requirements. It provides finance for investments in the primary and the secondary market. Aditya Birla Finance (ABFL) is the pioneer of IPO Financing in India. Product Benefit Enables you to take a loan against equity shares Product Name Loan Against Shares Enables you, as a promoter, to increase your share holding or expand and Promoter Funding diversify into other areas of business. Enables you to leverage your existing investments in mutual funds. Loan Against Mutual Funds Enables you to leverage your existing life insurance policies. Loan Against Life Insurance Policies Enables you to invest/leverage/trade in equity shares at a pre-defined margin. LASI Designed to enables you to invest/leverage/trade in equity shares at a pre- IPO Funding defined margin Designed to provide Specialized and Customized Solution for every ESOP Funding company and employee. Table No.1- Capital Market Products

Corporate Finance
The Corporate Finance Group deals with SMEs, mid-corporate and large corporate clients and aims to provide customized financing solutions to meet their working capital and growth finance needs. We understand that your business depends on efficient utilization of funds and a lot depends on a well-organised fund flow system to keep your business running. Aditya Birla Finance helps you do just that.

Product Benefit

Product Name

Enables you to raise short-term and long-term capital for your growing Structured Finance business. Enables you to have a dependable source of working capital to fuel your Working Capital Demand business. Enables you to get finance in a way that best fits your financial needs. Loan Term Loan

Enables you to convert your receivables into cash which in turn improves Supply Chain liquidity resulting into a healthy and continuous cash flow for your Management Solutionsbusiness. Table No.2- Corporate Finance Products Invoice Discounting

Mortgage
A mortgage represents a loan or lien on commercial or residential property that has to be paid over a specified period of time. Your property can help you get ready funds to fuel your business and accelerate growth. Our Mortgage solutions are aimed at providing customized products which will ease out your worries and drive you closer to your goals.

Product Benefit

Product Name

Aimed at providing finance to property owners who have fixed rent Lease Rental discountingreceivables from tenants. Enables you to get liquidity against your property without selling it. LRD Loan Against Property LAP Table No.3- Mortgage Products

Infrastructure Finance
With a view to capitalize on the opportunities in the infrastructure, core and emerging sectors, Aditya Birla Finance has expanded its product suite to include project and structured finance solutions catering primarily to the growing mid-market clients across the country. Through this initiative, ABF would not only provide finance but syndication and financial services leveraging on its synergies across businesses. The company hopes to thus contribute to the development of infrastructure facilities of the country which is a key driver for growth and development.

1.5) Size of the organization


No of Employees : 2501 -5000 Turnover in Crore : 10-100 Crore Sector: Private Sector

1.6) Competitors
Standard Chartered Bank, Kotak Mahindra Bank, ICICI bank

Chapter-2 Problem Statement And Objectives Of The Project


Significance of the study
1) To procure information about other companies. 2) To learn how to approach a customer. 3) To develop presentation skills. 4) To get some Field Experience.

Managerial usefulness of the Study


1) This study will help to gather information about other companies and where people of different segments like to invest. 2) It will also help in knowing which companies would like to work with ABFL which will in turn bring more business opportunities and increase profits. 3) It will help ABFL to expand its business. 4) It will also help the company to know to target which segments i.e. HNI, retail etc.

Problem Statement
To look for Tie Ups for Aditya Birla Finance Limited (by giving a business proposal for other companys welfare and their clients welfare.)

Objectives of the project


1) To find where companies like to invest their funds. 2) To find the client base preferred by the company. 3) To find where people of different segment like to invest.

Scope of the Study

Chapter-3 Research Methodology


Research design
The Research Design is Descriptive research design. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Descriptive research is mainly done when a researcher wants to gain a better understanding of a specific topic. Descriptive research is the exploration of the existing certain phenomena. The details of the facts won't be known. The existing phenomena's facts are not known to the persons.

Sources of data collection


Primary sources are original sources from which the researcher directly collects data that have not been previously collected. These are sources containing data that have been collected and compiled for another purpose. The secondary sources consist of readily available compendia and already compiled statistical statements and reports whose data may be used by researches for their studies. The main source of data collection for this was questionnaires by meeting the client and mailing the questionnaire in some cases. Another source of data collection was internet.

Sampling procedure
Sampling frame- The Sampling frame for this project was Delhi/NCR region. Some of the places visited were Janakpuri, Barakhamba road, Noida etc. Sample size- Total 130 clients were approached out of which 86 responded to the questionnaire. Sample Unit- People approached were both male and female and belonged to the working class. Age was 25 and above and also had good academic qualifications. Sampling technique- Sampling technique used was questionnaires.

Chapter- 4 Analysis And Interpretation


I visited 130 companies out of which 84 filled the questionnaire and some of them provided us with their news letter. Following is the analysis of the answers given to the questions in the questionnaire. 1) The Bar Graph and the Pie Chart below represent the number and percentage of companies who provide facilities of Private Wealth Management.

Private Wealth Management


46 45 44 43 42 41 40 39 38 37 36 Private Wealth Management

45

39
Yes No
Figure No.1: Private Wealth Management

39 companies answered yes that they provide facilities of private wealth management i.e. they undertake customers who invest more than 1 crore. 45 companies answered no i.e. they also undertake customers investing less than 1 crore. The Pie chart below represents the above figures in percentage.

Private Wealth Management

54%

46%

Yes No

Figure No.2: Private Wealth Management 46% companies answered yes and 54% companies answered no. 2) The bar graph and the Pie Chart below represent where companies invest their clients fund.

Funds investment
40 35 30 25 20 15 10 5 0

37 9
Real Estate Equity

4
Others

11
Real Estate and Equity

12
Equity and others

Funds investment

10
Real Estate, Equity and others

Figure No.3: Funds Investment

Funds Investment

12.04 14.45 44.57

Real Estate Equity Others Real estate and Equity Equity and others Real Estate, Equity and Others

13.25 4.81 10.84

Figure No.4: Funds Investment 37 companies i.e.(44.57%) prefer to invest their clients funds in Real Estate, 9 companies i.e. (10.84%) in equity, 4 companies i.e. (4.81%) in Others. 11 (13.25%) companies prefer to invest in both Real Estate and Equity. 12 (14.45%) in both Equity and Others. 10 (12.04%) in Real Estate, Equity and Others. Real Estate is the most preferable because it is more profitable and consist of less risk as compared to others. People invest less funds in equity because of the risk involved. 3) The Bar Graph and the Pie Chart below represent the preferred client base. Companies gave dual answers to these questions.

Client Base
80 70 60

50
40 30 20 10 0 HNI's Retail Corporate NRI

69

65

60

Client Base

47 5
Can't Provide

Figure No.5: Client Base

Client base

5.95 55.95 82.14

HNI's Retail Corporate NRI

71.42 78.31

Can't Provide

Figure No.6: Client Base 69 companies i.e. (82.14%) prefer HNIs (High Net Worth Individuals) because they invest large amount of funds. It is also the most preferable. 65 companies i.e. (78.31%) prefer Retail clients. 60 companies i.e. (71.41%) prefer Corporate clients. 47 companies i.e. (55.95%) prefer NRI clients. 5 companies i.e. (5.95%) didnt answer the question as it was against their companys policy to provide this information. The companies prefer HNI clients because they invest large sums of money which in turn helps companies to increase their profits or charge more commission from them. 4) The Bar Graph and the Pie Chart given below represent the AUM ( Assets Under Management) of the companies clients.

Assets Under Mnagement


30 25 20 15 10 5 0 More 1-5 Crore Less than Varies than 1 Crore Crore Can't Provide

22

24 16 13 9

Assets Under Mnagement

Figure No.7: Assets Under Management

Assets Under Management

10.71 26.19 15.47

More than 1 Crore 1-5 Crore Less than Crore Varies

19.04

28.57

Can't Provide

Figure No.8: Assets Under Management 22 companies i.e. (26.19%) companies clients have AUM more than 1 crore, 24 (28.57%) have AUM of !-5 Crore, 16 (19.04%) have AUM of less than 5 crore, 13 (15.47%) answered varies and 9 (10.71%) didnt provide the information as it was against their company policy. Companies having an AUM of more than 1 crore generally have more HNI clients than retail, corporate or NRI clients. 5) The Bar Graph and the Pie Chart given below represent the number and percentage of companies who would like their clients to get loan facilities from ABFL.

Loan Facilities
50 45 40 35

30
25 20 15

44 22 28

Loan Facilities

10
5 0

Yes

No

May Be

Figure No.9: Loan Facilities

Loan Facilities

26.19
Yes

52.38 33.33

No May Be

Figure No.10: Loan Facilities 22 companies i.e. (26.19%) answered yes as they had clients who wanted loans to fund their needs. 28 companies i.e. (33.33%) answered no as they were not sure whether their clients would be interested in taking loan facilities and some clients already had tie ups with other banks. 44 companies i.e. (52.38%) answered may be because their decision was dependent on the loan rates being negotiated. 6) The Bar Graph and the Pie Chart given below represent the number and percentage of companies who would like to work in association with ABFL.

Association With ABFL


45 40 35 30 25 20 15

42 26 16
Yes No May Be

Association With ABFL

10
5 0

Figure No.11: Association With ABFL

Association With ABFL

31 50 19

Yes No May Be

Figure No.12: Association with ABFL 26 (31%) companies answered yes, 16 (19%) answered no as they already had tie ups and 42 (50%) answered may be. 7) The Bar Graph and the Pie Chart given below represent the HNIs, where they like to invest their funds.

HNI's
35
30 25 20 15 10 5 0 Only Real Estae Only Equity

33
HNI's

11

2
Others

9
Equity and Others

14
Both Real Estate and Equity

Figure No.13: HNIs

HNI's

20.28 13.04 2.89 15.94 47.82

Only Real Estate Only Equity Others Equity and Others Both Real Estate and Equity

Figure No.14: HNIs 33 i.e. (47.82%) HNIs prefer to invest in real estate as it is profitable and less riskier. 11 i.e. (15.94%) HHIs prefer to invest in only equity. 9 i.e. (13.04%) prefer to invest in equity and others, 2 i.e. (2.89%) in others and 14 i.e. (20.28%) both in real estate and equity.

People from HNI segment prefer real estate because of its more profitability and less risk involved.

8)

The Bar Graph and the Pie Chart given below represent the Retail segment, where they like to invest their funds.

Retail segment
35 30 25 20 15 10

30 10
Only Real Only Equity Estate

Retail segment

5
0

2
Others

10
Equity and Others

13
Both Real Estate and Equity

Figure No.15: Retail Segment

Retail segment

20 46.15 15.38 3.07 15.38

Only Real Estate Only Equity Others Equity and Others Both Real Estate and Equity

Figure No.16: Retail segment Under the retail segment, 30 i.e. (46.15%) prefer only real estate, 10 i.e. (15.38%) prefer only equity, 2 i.e.( 3.07%) prefer only equity, 10 i.e. (15.38%) prefer equity and others and 13 i.e. (20%) prefer both real estate and equity. People from Retail segment invest small sums of money and dont want to take much risk in their investments. Therefore, they also prefer investing their funds in Real Estate and less in equity and others. 9) The Bar Graph and the Pie Chart given below represent the Corporate segment, where they like to invest their funds.

Corporate Segment
35 30 25

20
15 10 5 0
Only Real Only Equity Estate

29 10 11

Corporate Segment

2
Others

Equity and Both Real Others Estate and Equity

Figure No.17: Corporate segment

Corporate Segment

18.33 48.33

Only Real Estate Only Equity Others Equity and Others both Real Estate and Equity

16.66

3.33 13.33

Figure No.18: Corporate segment Under the Corporate Segment, 29 i.e. (48.33%) prefer to invest in only real estate, 8 i.e. (13.33%) prefer only equity, 2 i.e. (3.33%) prefer others, 10 i.e. (16.66%) prefer equity and others and 11 i.e. (18.33%) prefer both real estate and equity. 10) The Bar Graph and the Pie Chart given below represent the NRIs, where they like to invest their funds.

NRI's
30 25 20 15

25
10 5 0
Only Real Etsate Only Equity

NRI's

2
Others

7
Equity and Others

6
Both Real Estate and Equity

Figure No.19: NRI segment

NRI's

12.76 14.89 4.25 14.89 53.19

Only Real Estate Only Equity Others Equity and Others Both Real Estate and Equity

Figure No.19: NRI segment Under NRIs Segment, 25 i.e. (53.19%) prefer to invest in only real estate, 7 i.e. (14.89%) prefer only equity, 2 i.e. (4.25%) prefer others, 7 i.e. (14.89%) prefer equity and others and 6 i.e. (12.76%) prefer both real estate and equity. NRIs generally have less knowledge about Indian prices and risk associated with their investments. Therefore they prefer to invest funds where less risk is involved i.e. real estate. Generally the ratio of their investments is 2:1 (real estate : equity).

Chapter-5 Conclusion and Recommendations


Conclusion
According to the above analysis I conclude the following points1) Companies like to invest more in Real Estate because of growing development and appreciation in property prices. 2) The client base preferred by most companies is HNIs and retail segment. 3) HNIs are preferred the most because they invest large amount of funds with the company. HNIs generally approach companies providing Private Wealth Management Services.

4) The AUM of most of the companies clients is either 1-5 crore or more than 1 crore.

5) Most companies answered may be when asked if their clients would be interested in taking loan facilities from ABFL because their decision was dependent upon the negotiation of loan rates or projects that ABFL was ready to fund. 6) People from every segment either HNIs or NRIs or Retail or Corporate prefer to invest in only Real Estate because it is the most profitable and carries less amount of risk when compared with other sectors example Equity.

Recommendations
1) To target companies such as Angel Broking, SMC, Raj Nandini, Lintas etc because they are looking for a financial partner and have a good client base. 2) People from Retail segment invest small sums of money so in order to increase their investment they generally require loans. Therefore, target companies having a good number of retail clients.

3) Tie up with companies providing Real Estate services because of new projects being launched and
their customers will require loan facilities to fund their investment needs.

Bibliography
1) http://adityabirlafinance.com/Pages/Individual/About-Us/Company-Profile.aspx

2) http://adityabirlafinance.com/Pages/Individual/Our-Solutions/Capital-Market.aspx

3) http://adityabirlafinance.com/Pages/Individual/Our-Solutions/Corporate-Finance.aspx

4) http://adityabirlafinance.com/Pages/Individual/Our-Solutions/Mortgage-Solutions.aspx

5) http://adityabirlafinance.com/Pages/Individual/Our-Solutions/Structured-Finance.aspx

6) http://en.wikipedia.org/wiki/Wealth_management

7) http://en.wikipedia.org/wiki/Loan

8) http://www.adityabirla.com/the_group/index.htm

9) http://www.adityabirlanuvo.com/aboutus/index.aspx?id=VQnaaH3tLmI%3d

10) Project made on field experience and analysis of answers to the questionnaires.

Appendix
Sample Questionnaire Questionnaire
Please fill the following questions so that we can get some information about your company and your clients. Company Name: Company Address: Name: Designation: Contact no.:

1. Do you provide facilities of private wealth management? 2. Where do you invest your clients funds? 1) Real estate 2) Equity 3) Others

3. What is your client base?

4. Classification of your clients in terms of AUM (Assets Under Management) 1) < 1 crore 2) 1-5 crore 3) > 5 crore

5. What are the other facilities that you offer to your clients?

6. Would any of your client be interested to obtain loan facilities from us?

7. Would your company be interested in working in association with Aditya Birla Finance Limited?

Thank you for cooperation

List of Respondents
Table No.4- List of respondents Sr. No. Company Name Address Remarks Offer some of the same products and for the rest in tie up with axis bank and bajaj. But for Edelweiss Securities Pvt 1 Ltd 603,6th floor, Mercantile House, 15 K G Marg, CP any more info or tie up contact mumbai office. They want a senior person to contact them 11/5B, 3rd floor, pusa road, near 2 SMC Global finance rajendra place metro station Antariksh bhawan, 517/519 , 5th 3 CD Eqiusearch Pvt Ltd Prudent Corporate 4 Advisory Services Ltd floor ,22 K G Marg, CP 705, 7th floor, Indra Prakash Building, Barakhamba Road office no. 310, Deep Shikha, 3rd 5 Sahara Mutual Funds Floor,8, Rajendra Place They have filled the questionnaire. They offer the same products and have filled 1105, 10th floor, Ansal Bhawan, 6 Globe Capital Markets KG Marg,CP 1st floor, DCM Building, 7 Way to Wealth Barakhamba Road, CP 401, 4th floor , New Delhi Emkay Global Finance 8 Services Ltd House, 27, Barakhamba Road,CP A-56, Part-70, Najafgarh Road, 9 Angel Broking Ltd Destimoney Securities 10 Private Ltd Opp. Moti nagar police station Plot no. 9, Mansarover Garden, opp. Shahid bhagat singh park WEA 17A/53, Gurudwara road, 11 Kassa Finvest Pvt Ltd Near Metro Station, Karol Bagh 911/912, Ansal Bhawan, 16 K G 12 Anand Rathi Marg, CP 714-715, Narain Manzil, 13 J P Morgan 14 PMS Financial Services Barakhamba road, CP A-25/28, 2nd floor, middle They have filled the questionnaire. Visited 3 times but the concerned person was not available. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. the questionnaire but dont want to get into any tie up. They have filled the questionnaire. They have filled the questionnaire. with a proposal and mail them the questionnaire.

circle, CP 114, 1st floor, Himalaya House, 15 J M Financial 23 KG Marg 1st floor, New Delhi House, 16 Nirmal Bang Barakhamba Road, CP M-39 ,outer circle ,2nd floor , 17 Enam Securities Pvt Ltd CP World Trade centre, Room no. 18 IL&FS 19 DA vision Revyqa real Estate Fund/ Lintas wealth 20 Management Pvt Ltd 409, 4th floor, Chokhani Square, Sector-18, Noida 305/306, Ocean Plaza, sector21 Bonanza 18, Noida UGF- 3, Ocean Plaza, Sector22 RR Investors 18,Noida UGF- 8, Ocean Plaza, Sector23 Fairwealth Securities Ltd 18,Noida 26, Second Floor, Ansal Fortune 24 Elite Stock BMA Wealth Creators 25 Ltd N-9, 3rd Floor, sector- 18, Noida UGF- 4, Ocean Plaza, Sector-18, 26 India Infoline Ltd Noida LGF-59, Ansal Fortune Arcade, 27 Royal Investments Sector-18, Noida 82, First Floor, Ansal Fortune 28 United Realtors 29 Gensis Reality Arcade, Sector-18, Noida N-8, 3rd Floor, sector- 18, Noida 114, 1st floor, Chokhani Square, 30 Real Estate factory Osgan Realty Services 31 Pvt Ltd sector-18, Noida 309, Chokhani Square, P-4, Sector-18, Noida 421, 4th floor, Ocean Plaza, 32 Equityrush 33 Capital Estate Sector-18, Noida 409, 4th floor, Ocean Plaza, They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. Arcade, Sector-18, Noida They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. Continued on They have filled the questionnaire. next page 107, ground floor, babar road D-2, sector 3, Noida They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire.

Sector-18, Noida 210, Ocean Plaza, Sector-18, 34 EMAC Noida LG- 37&38, Ansal Fortune 35 S Sukhija & associates Rajdhani Properties 36 management Services Arcade, Sector-18, Noida LGF-87, Ansal Fortune Arcade, Sector-18, Noida LGF- 84-85, Ansal Fortune 37 Chawla Investors Hub Arcade, Sector-18, Noida LGf-52-53, Ansal Fortune 38 Sirohi estates Pvt Ltd Heaven Lea Propmart Pvt 39 Ltd Arcade, Sector-18, Noida UGF- 28B, Chokhani Square, sector- 18, Noida SF-20, ansals Fortune Arcade, 40 WealthDirect Sector- 18, Noida UGF-7,8,Chokhani Square, 41 Om reality Infrastructures Shubh Labh Realtors Pvt 42 Ltd SubhSantosh Real Estate 43 Pvt Ltd sector- 18, Noida 311, 3rd Floor ,Chokhani Square, sector- 18, Noida UGF-11 Chokhani Square, sector- 18, Noida S-2, 2nd Floor, Savitri Market, Prithvee Real Estate 44 Services near sector 18 metro station, Noida B-12, Ocean Plaza, Sector-18, 45 Sona Estate Noida 207, 2nd floor, Ocean Plaza, 46 Royal Estates Sector 18, Noida LGF-14, Ansal Fortune Arcade, 47 Aditya Estates Sector 18, Noida F-6, Krishna Apra Plaza, Sector 48 Global Reality Prop World Realty Pvt 49 Ltd Raj Nandini Estaes Pvt 50 Ltd 18, Noida P3, Krishna Apra Plaza, F1 First Floor, Sector 18, Noida 509, 5th Floor, Chokhani Square, Sector 18, Noida They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire.

Parmatma Real Estate 51 Services

312, 3rd Floor, Vishal Chambers, Sector 18, Noida 206, Krishna Apra Plaza, P-3, They have filled the questionnaire.

52 N. JaiKishan Estates

Sector-18, Noida 220, 2nd Floor, Krishna Apra

They have filled the questionnaire.

53 SPS Proptech Pvt Ltd

Plaza, Sector- 18, Noida 608, 6th Floor, Krishna Apra

They have filled the questionnaire.

54 Trintra Reality Pvt Ltd

Plaza, Sector- 18, Noida 219, 2nd Floor, Krishna Apra

They have filled the questionnaire.

55 Soni Real Estate Shree Kunjbihari 56 Propmart Pvt Ltd

Plaza, Sector-18, Noida 314, 3rd Floor, Krishna Apra Plaza, Sector-18, Noida 210, 2nd Floor, Vishal

They have filled the questionnaire.

They have filled the questionnaire.

57 Reality Options Multigain Financial 58 Services Opulence Investment and 59 mutual fund Advisory

Chambers, Sector 18, Noida 402, 4th floor, Vishal Chambers, Sector 18, Noida Chokhani Square, Sector 18 , Noida 11/5B, 1st floor, pusa road, near

They have filled the questionnaire.

They have filled the questionnaire. Either already have a tie up or in talks with ABFL. They have stopped wealth management and the clients they have are few mainly deal in mutual funds and IPO and also give other facilities and didnt want to talk about any tie up It was a marketing unit. Investment Advisory at head office Pune. Visited 3 times but the concerned person was not available.

60 Paul Merchents Ltd

rajendra place metro station

2E/8, Jhande wala Extension, 61 Alankit Assignment near jhandewalan metro station 55 Panchkuian Road, Opp. Pillar 62 Kay net capital No. 6, Panchkuian road, CP 714-715, Narain 63 JP Morgan Benchmark Asset 64 Management Company Quantum Asset 65 Management Company Tauras Asset Management Company 66 Ltd UGF, Kanchenjunga building, 18 Barakhamba road, CP Manzil,Barakhamba Road, CP 506, 5th Floor, Ambadeep building, 14 K G marg 305, New Delhi House, Barakhamba Road, CP

Already in talks with Aditya Birla All branches shifted to Mumbai and some of its work done by Karvy

Investment advisory shifted to Mumbai and deals only in mutual fund Wealth Management not at this branch and

Sundaram Asset 67 Management Company

605, 6th floor, Ashoka Estate, 24 Barakhamba Road, CP

not also sure if they give wealth management facilities. Other branch at Rajendra Place.

Ask Wealth Advisors Pvt 68 Ltd RBH Brokers and 69 Consultants Pvt Ltd

M-4, Kanchenjunga building, 18 Barakhamba Road UG-2, 17A/56, Triveni Plaza, WEA, Karol Bagh Fourth Floor, 402, World Trade Concerned person not available Recently shifted to Gurgaon.

70 Client Associates

Center, Babar road, CP 803-804, 8th floor, Arunachal Building, 19 Barakhamba

Concerned person not available

Wealth management is not at this branch and they don't know other branches address.

71 PUG Securities Pvt Ltd India Pacific Securities 72 and Financial services Fullerton Securities and 73 Wealth Advisors Ltd Growth Avenue 74 Securities Pvt Ltd

Road,CP

C-36, inner circle, 3rd floor, cp Ground floor 16, Antariksh Bhawan, K G Marg 811, Kailash building, 26 K G Marg 417, World Trade Center, 4th

Company getting closed

Shifted to karol bagh

Stopped giving wealth management facilities

75 Microsec Capital Ltd

floor, Babar road, CP DCM building, 1st floor,

Either shifted somewhere or company closed

76 Latika Malhotra

Barakhamba road, CP 1117, Arunachal building, 19

Wrong Address

77 Karvy Wealth

Barakhamba road, CP

They offer some of the same products. For a tie up contact head office. They have

UG-30, Suneja Tower-2, District 78 Integrated Enterprises Ltd centre, Janakpuri UG-21, Jyoti Shikhar building, 79 SME Realtors district Centre, Janakpuri B-6, Suneja Tower-1, district 80 Rajesh Associates Centre, Janakpuri 510, Suneja Tower-1, District 81 Accord Realty Services centre, Janakpuri 310, Suneja Tower-1, District 82 IFCI Financial Services centre, Janakpuri UG- 10, Suneja Tower-1, 83 Amrapali Aadya SHRIRAM General 84 Insurance 85 Trustline Securities Ltd District centre, Janakpuri 202-203, Suneja Tower-1, District centre, Janakpuri 309, Vishwa Sadan building,

given their news letter which also consists of their head office details.

They have filled the questionnaire.

They have filled the questionnaire.

They have filled the questionnaire.

They have filled the questionnaire.

They have filled the questionnaire.

They have filled the questionnaire. For tie up purpose contact office in noida

District centre, Janakpuri 111, Vishwa Sadan building, 86 Vivek Financial focus Ltd District centre, Janakpuri RK Stock Holding Pvt 87 Ltd 401, DDA-1 building, District centre, Janakpuri 506, DDA-1 building, District 88 Sharekhan Nine o Nine Real Estate 89 Pvt Ltd centre, Janakpuri 30, First floor, Ansal Fortune Arcade, Sector-18, Noida They want the proposal to be mailed to them. For a tie up contact office at Rajouri Garden. Do not want to get in any tie up They dont talk to anyone during trading hours.

Dreamland Promoters and 211-213, 2nd floor, Krishna 90 Consultants Pvt Ltd Apra Plaza, Secor-18, Noida 208, 2nd floor, Krishna Apra 91 Malhotra Estate Plaza, Secor-18, Noida 403, 4th floor, Krishna Apra 92 SDS Infracon Pvt Ltd Plaza, Secor-18, Noida 411, 4th floor, Krishna Apra 93 Uber Homes Pvt Ltd Plaza, Secor-18, Noida F-2, First floor, Krishna Apra 94 Empire Infrabuild Pvt Ltd HR Investments and 95 Finance Zauri Insurance Brokers 96 Ltd Plaza, Secor-18, Noida UG-4, Suneja Tower-1, District centre, Janakpuri 503-504, Suneja tower-1, District centre, Janakpuri Concerned Person not available They offer some of the same products and for 307, Suneja tower-1, District 97 Geojit Securities Ltd Unive5sal SampoGeneral 98 Insurance Pvt Ltd centre, Janakpuri 514, Shakuntala Building, 59 Nehru Place 23 and 28, 2nd floor, Satkar 99 Geojit BNP Paribas building,79-80Nehru Place B-11/3, mansarover building, 90 100 Radha Krishna Properties Shriram Insight Share 101 Brokers Ltd Nehru Place 304,Suneja Tower-2, District Centre, Janakpuri 706, Hemkunt Chambers,89 102 Kalra Realtors Nehru Place They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. the rest they have a tie up with some other company. They dont want to get into any tie up. They want the proposal to be mailed to them. They want the proposal to be mailed to them. They want the proposal to be mailed to them. They want the proposal to be mailed to them. They want the proposal to be mailed to them.

Ground Floor Lobby, Hemkunt 103 Bagga Properties Chambers,89 Nehru Place A-2,3,4 3rd floor, HB Twin 104 Invest Shoppe India tower, G-70, Aggarwal millenium 2, 105 J p Sindhi Properties Netaji Subhash Place 905, Aggarwal Corporate 106 Intouch Securities Ltd Heights, Netaji Subhash Place G-73, Aggarwal millenium 2, 107 Ahuja Estates Netaji Subhash Place 373, Aggarwal millenium 2, 108 Tcon Realty Pvt Ltd Netaji Subhash Place G-75, Aggarwal millenium 2, 109 Navjyoti Properties Netaji Subhash Place 206, Chiranjiv Tower, 43, Nehru 110 Pinnacle Consulting Place 403, Chiranjiv Tower, 43, Nehru 111 Open Futures Place 805, Chiranjiv Tower, 43, Nehru 112 JV Capital Services CMS Insurance Brokers 113 Pvt Ltd LSI Financial services 114 Pvt Ltd Bharat dogra Property 115 Consultant Smart Equity Brokers Pvt 116 Ltd Place 606, Chiranjiv Tower, 43, Nehru Place 1201, Chiranjiv Tower, 43, Nehru Place F-15 Shopping Centre 1 Mansarover Garden F-88, OPP, TDI Paragon Mall, Rajouri Garden 209, Ansal Classic Tower, J Block, OPP. Surya Hotel, 117 Taneja And co. Pvt Ltd Rajouri Garden 34, Plot No.1, J Block Community Centre, Rajouri 118 Aegis Capital Garden A- 29, 2nd floor, Facing ring 119 Sharekhan 120 Kawal Properties road, Rajouri Garden E-20 Saraswati Garden They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire. They have filled the questionnaire.

G-23, Aggarwal Corporate 121 Anand Properties GDB Share and Stock 122 Broking Services Ltd Heights, Netaji Subhash Place 115A, Hemkunt Chambers,98 Nehru Place 315, Ansal Classic Tower, J Block, OPP. Surya Hotel, 123 Master Trust Rajouri Garden 474-475, Aggarwal millenium 2, 124 Rajgul Securities Pvt Ltd Netaji Subhash Place 316, Hemkunt Chambers,89 125 Integrated Enterprises Ltd Nehru Place 47, DDA Complex, Community 126 Hartirath Singh and co. 127 Narayan Securities Ltd Kare India Insurance 128 Brokers 129 Ahluwalia Properties Centre, Rajouri Garden A-2 3rd Floor, Rajouri Garden 1404A, Chiranjiv Tower, 43, Nehru Place F-174, Mansarover Garden G-87, Aggarwal millenium 2, 130 Millenium Properties Netaji Subhash Place They dont want a tie up. They dont want a tie up. They are new in the market so they don't have much business. They want the proposal to be mailed. They dont want a tie up. They want the proposal to be mailed. They want the proposal to be mailed. They want the proposal to be mailed. They want the proposal to be mailed. They want the proposal to be mailed.