A STUDY ON RISK PROFILING AND WEALTH MANAGEMENT

STANDARD CHARTERED BANK SUBMITTED BY: AAKASH KAMRA PGDM 2010-2012 Roll no: 2010001 Specialization: Finance & International Business

UNDER THE GUIDANCE OF: INDUSTRY GUIDE: Mr. AMIT GUPTA RELATIONSHIP MANAGER STANDARD CHARTERED BANK PREET VIHAR, DELHI. FACULTY GUIDE: Mrs. Ritu Srivastava NIILM-CMS, GREATER NOIDA.

SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME POST GRADUATE DIPLOMA IN MANAGEMENT (2010-12)

NIILM CENTRE FOR MANAGEMENT STUDIES, GREATER NOIDA, U.P.

Certificate of Completion from Faculty Guide

This is to certify that Summer Project Report on Risk Profiling and Wealth Management prepared by Aakash Kamra, student of PGDM Batch 2010-12 is his genuine effort under my guidance and supervision.

Signatures of the Faculty Guide Ritu Srivastava

Signatures of the Student Aakash Kamra

====================================================== ==

UNDERTAKING

This is to certify that Mr. Aakash Kamra, a student of Post Graduate Diploma in Management, NIILM-CMS, Greater Noida has worked in Standard Chartered Bank, under the guidance and supervision of Mr. AMIT GUPTA, Relationship Manager, Standard Chartered Bank, Preet Vihar, Delhi. The period of training was of 8 weeks, starting from 14th May 2011 to 9th July 2011. This summer internship report has the requisite standard for the partial fulfillment of Post Graduation Diploma. To the best of their knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

RITU SRIVASTAVA

AAKASH KAMRA

ACKNOWLEDGEMENT
I take this opportunity to thank all those people who have helped me in completing this project. The satisfaction that accompanies the success of any work would be incomplete without the people who made it possible by constant encouragement and guidance. I express my sincere gratitude to MR. NIRMALENDU MISHRA, Branch Manager who provided me the opportunity to undertake the activity and my Industry Guide MR. AMIT GUPTA, Relationship Manager, Standard Chartered Bank, Preet Vihar, Delhi. Under his able guidance, continuous support and cooperation throughout my project, without which the present work, would not have been possible. I am also thankful to my Faculty Guide Mrs. Ritu Srivastava of my institute, for her continued guidance and invaluable encouragement.

AAKASH KAMRA

PREFACE
Education is continuous process of learning it covers theoretical as well as behavioral aspect. Every study is incomplete without having well planned and concrete exposure to its students. So far management is no exception. This project report was made during the summer training in partial fulfillment requirement for the Post Graduate Diploma in Management. India is a developing country and they all know that banking sector plays a very important role. In development with the increasing use of banking and finance in every field, new trends in their technology and modern use are being evolved day after day to meet the requirements. In fact BANKING has become the need of today. The purpose of PROJECT REPORT is to expose the students in the market and in the field of banking, finance and investments and to develop the ability in the students to deal with all types of customers. Preparing project report in the summer vacations and undergoing the summer training is the indispensable part of the college period. It provides the opportunity to review what they have gained in the training period and also provides the way to convey the knowledge and ideas to others. The present project provides the information on STANDARD CHARTERED BANK. Learning is not possible in solitude and has to have the support and able guidance of some people around us in various roles and capacities. The satisfaction and euphoria that accompanies the successful completion of any task would be incomplete without the mention of the people who made it possible because success is the epitome of hard work, undeterred missionary zeal, fast determination, and consideration. Therefore, they consider it a pleasant duty to express their heartiest appreciation, gratitude, and indebtedness to their project guide for his keen interest, sincere extortion, invaluable and pain taking excellent guidance, continuous calm endurance, inspiration and encouragement during each phase of the present project.

TABLE OF CONTENTS

S. No.

CONTENTS

PAGE NO.

1 2

EXECUTIVE SUMMARY OBJECTIVE OF THE REPORT Chapter 1: INTRODUCTION

7 10

SIGNIFICANCE OF THE TOPIC ITS BACKGROUND SCOPE AND OBJECTIVES Chapter 2: INDUSTRY PROFILE ORGANISATION STRUCTURE ITS PRODUCT AND FEATURES

12-36

3 BUSINESS ENVIRONMENT ACHEIVEMENTS AND AWARDS SWOT ANALYSIS etc. Chapter 3: PESENTATION OD DATA 4 RESEARCH METHODOLY ANALYSIS OF THE DATA 5 FINDINGS 92 66-91 37-65

CONCLUSIONS

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ANNEXURE: QUESTIONAIRE & CURRICULAM VITAE

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BIBLOGRAPHY

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EXECUTIVE SUMMARY

EXCELLENCE ALWAYS SHOWS.. A Leader is one who knows the way, goes the way and shows the way -John C Maxwell Expertise is a skill acquired through years of experience, understanding and depth of knowledge When they are at the highest echelons of success it is that much more important to have the right financial partners, who assist us in maintaining and building wealth. The challenge of navigating complex and unpredictable capital markets can only be met with the utmost focus, planning and discipline. Standard Chartered Bank, using over 150 years of expertise, promises to guide us through the world of exciting new investment opportunities in India. From shortest term deployment of funds to planning your retirement, they pledge to go the extra mile to help you reach your choose financial goals. In India, there has been significant growth in income and wealth levels over past few years. Financial services industry players have begun to recognize the potential of wealth management as a profitable business. The wealth management industry, though at a nascent phase, is experiencing rapid growth in terms of the member of providers, clients and assets under management. Wealth management as an organized industry is growing in terms of both the numbers of players as well as the number of high net worth individuals in India. Wealth

managers are aggressively marketing their services to the existing clients; wealth managers are ramping up their capabilities to manage growing volume of assets. India is both attracting foreign wealth managers to set up business and domestic banks to set up wealth management businesses. Going forward this is a trend that is likely to continue, with Indias key advantages attracting more and more competitors. In the view of many in the industry there is a challenge of client education that must be addressed going forward. The primary area of concern is in equity investment and the need to invest long-term rather than short-term. This is not a problem that is confined to India; many other countries around the globe have similar problems. The basic idea of wealth management is to help the individual investors get a complete perspective of their wealth. A wealth manager is more objective. He first analyses ones portfolio, finds out the long-term and short-term goals of the investor and decides on the asset mix that will fetch the best desired returns after being given the investors risk profile. According to a study unveiled by IBM Business Consulting Services, the wealth management industry in India is poised for tremendous growth. The study also revealed that successful wealth managers with a clear vision and strategy and equipped with supporting people, processes and systems, will reap significant gains. The study, Indian Wealth Management and Private Banking Survey 2003-04, predicts that increased customer demand for sophisticated products will drive wealth managers to offer a wider array of more complex products and services. Technology tools will be critical for both enabling revenue generation as well as achieving operational

effectiveness. Furthermore, increasing deregulation will enable customers to diversify their wealth locally and globally. Through this dissertation, I have tried to analyze the problems affecting the wealth management industry in India with special focus on the High Net-Worth Individuals (HNWI) segment. A further study of the scope and future of wealth management, which is somewhat synonymous with Investment Banking, has been attempted for a better understanding.

OBJECTIVE OF THE REPORT

The project report is prepared to analyze the functions of wealth managers. How well financial managers help their investors in investing into various companies. There is common saying on the bourses: Bears make money, bulls make money and pigs get slaughtered. The richer one gets, the less sure he becomes of his investments. The options for saving have multiplied today. The need of the hour is more informed investment decisions. As personal net worth increases, the financial issues and challenges become increasingly complex. Protecting and distributing ones asset with maximum tax advantages requires sophisticated planning strategies and professional advice.

THE FOLLOWING ARE THE OBJECTIVES

Understanding Wealth Management Services in Banking Industry. Understanding Mutual Fund Industry in particular. Recommending financial planning strategies to investors. Analyzing various products offered by Mutual Fund companies. Need based selling to investors. Recommending model portfolios and selecting the right funds.

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In this project, I have to study the most important products of banking industry i.e. Savings account, Insurance and Mutual Funds. After gaining appropriate knowledge of these products, I have to promote the products of Standard Chartered to the customers and try to convince them to buy the products via explaining them its benefits. I also have to prepare a questionnaire in order to understand the customer psychology of investments and also get relevant information required in the project.

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CHAPTER 1

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WEALTH MANAGEMENT

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 independent certified financial planners, MBAs, CFA Charter holders or any credentialed professional money manager who works to enhance the income, growth and tax favored treatment of long-term investors. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective and is also one of the key areas that are growing at a tremendous rate. Wealth management can be provided by large corporate entities, independent financial advisers or multilicensed portfolio managers whose services are designed to focus on high-net worth customers. Large banks and large brokerage houses create segmentation marketingstrategies to sell both proprietary and non-proprietary products and services to investors designated as potential high net-worth customers. Independent wealth managers use their experience in estate planning, risk management, and their affiliations with tax and legal specialists, to manage the diverse holdings of high net worth clients. Banks and brokerage firms use advisory talent pools to aggregate these same services.

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The events of 2008 in the financial markets caused investors to address concerns within their portfolios. "The past 18 months have challenged traditional thinking about investing and asset allocation, diversification, and correlation. For individual investors, risk tolerances have been tested, investment assumptions have been overturned, and fundamental truisms have been questioned." For this reason wealth managers must be prepared to respond to a greater need by clients to understand, access, and communicate with advisers regarding their current relationship as well as the products and services that may satisfy future needs. Moreover, advisors must have sufficient information, from objective sources, regarding all products and services owned by their clients to answer inquiries regarding performance and degree of risk-at the client, portfolio and individual security levels. "This state of affairs poses a dilemma for wealth managers, who, for a generation, have adhered to the core principles of asset allocation and earned their keep by preaching the mantras of 'buy and hold', 'invest for the long term', and when things get tough, 'stay the course'.

Today wealth management advisors must have access to an objective content. Wealth accumulation: The clients wealth should grow. Wealth preservation: The clients wealth should be well protected. Wealth transfer: Smooth transfer of clients assets to his legal heirs at a minimum cost.

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WEALTH MANAGEMENT AT STANDARD CHARTERED BANK

STANDARD CHARTERED BANK offers a team of expert and experienced

investment advisors who are wholly dedicated to studying financial markets and investment opportunities just for you. With years of investment experience to draw from, combined with their intimate understanding of the Indian environment, they can help you make the best investment choices customized just for customers.

Here is 4 step financial planning process:

RISK PROFILING:
Through a simple, easy-to-answer questionnaire, they try to gauge their risk appetite. Your investment decisions should be dominated most heavily by how much risk you are willing to take. Depending on their risk appetite, the specific instruments required to fulfill all their needs across various time periods will be identified.

NEED ANALYSIS:
It identifies all their prospective financial requirements and liabilities. These may range from buying a car to sending their kid for education abroad.

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MAPPING YOUR RISK PROFILE WITH NEEDS:

To fulfill the needs, the right asset allocation mix has to be identified. Investments have to be embarked for their needs, depending on risk profile. It aims for right asset allocation mix for your investment through this exercise.

IDENTIFYING THE RIGHT INVESTMENT INSTRUMENTS:

It provides a wide variety of investment instruments like MUTUAL FUNDS, FIXED INCOME BONDS, RBI BONDS, PRINCIPAL PROTECTION PLAN, etc. Bank has tie ups with a variety of mutual funds for investment suitable for us. Their unique proprietary research cherry-picks the best mutual funds in various funds in various risk categories to enable us to take an informed decision.

WEALTH MANAGEMENT is important because you have a lot more to manage than just your wealth
It's time to throw out your notions of what you can talk about with your Financial Advisor.

Maybe you're worried that the lifestyle you've worked for is becoming the lifestyle your children will feel entitled to

Maybe you long ago made a decision to retire by 62, and then you turned 58 and found out that decision may be up to somebody else

Maybe your friends are about to stop asking why you waited to start a family, and start asking what in the world you are going to do with triplets

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Wealth management can help you determine what's really important to you, then develop actionable strategies to help you realize your most cherished hopes and defend against the things that might undo them.

Income and Lifestyle

Through an in-depth discovery process your Financial Advisors will work with you to understand and document what you want to do in this lifetime, from now until retirement and from then on. They'll then map out a course to help you seek the returns you'll need for how you intend to live and to achieve the income you'll need to do exactly what you want one year at a time and, if they like, strategies to guarantee that income.

Borrowing
They view borrowing as a strategy an array of ways to unlock value in assets you own, without compromising the ability of those assets to continue to work for you over time.

If such talk of strategy sounds like how most firms talk about investing, it should. They believe how people invest and how they borrow is inextricably linked both sides of one balance sheet, one plan.

Asset Protection
By understanding the lifestyle you enjoy, and the one you're building toward, your Financial Advisor can see the threats against it taxes, inflation, volatility, creditors, lawsuits, identity thieves, tragedy and help you deal with them using everything in the arsenal of one of the world's largest financial services firms.
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Wealth Transfer
Your Financial Advisor will approach your plan for wealth transfer from a wider angle than a traditional estate plan. They work with you to understand your definition of a rich life, and then craft a plan to help you lead it and pass on what you see as most important to the next generation.

Your advisor will approach your plan for wealth transfer from a wider angle than a traditional estate plan. They work with you to understand your definition of a rich life, then craft a plan to help you lead it and pass on what you see as most important to the next generation.

This might mean a passion for education, or a sense of obligation for each generation to help give the one that follows a leg up in life or both. It could mean protecting a work ethic and thirst for accomplishment, or protecting your family's bonds of affection toward one another. Whatever it is, it should start with your definition of a rich life.

Investment Management
They believe that your plan for your life is the most important part of investing. Little things...like when you plan to retire and when you secretly hope to retire. The business you'll open when you do. How much you'd like to travel. And the aging parent who will need to move in with you in the next few years.

Investing with a Financial Advisor is based on the simple yet potheyrful premise of wealth management: Your investments and your life are uniquely intertwined.

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Whether by design or by accident, they are all part of one plan. they advise that it be by design.

Business Strategies
As you lead your business toward its next stage whatever that stage may be you'll be pleased to learn that your Financial Advisor understands the connection between your business and your life. They are one and the same.

Their clients tell us that seeing this bigger picture makes all the difference between us and what they used to expect from a financial firm in how they think, how they plan and in the scope of what they do. From their standpoint, it's simply a matter of treating your business like it's the biggest investment of your life, if for no other reason than that it is.

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WEALTH MANAGEMENT IN INDIA

Wealth Management in India covers the recent trends in the industry, global market and its trend, estimates of the future market, growth drivers, critical success factors, issues and challenges, regulatory environment, and profiles of major players and their products offerings. The report will be useful for industry research analysts, banks and other non-banking financial companies, and wealth management service companies.

Wealth management is classified as a type of financial planning tool that provides corporate and their families with private banking, asset management, legal resources, real estate planning, investment management and portfolio management with the goal of sustaining and growing long-term wealth. Wealth management service providers have segmented the Indian market into four categories: the mass market (investible surplus USD 5,000 to 25,000); the mass affluent (USD25,000 to 1 million); the highnet-worth (USD1 million to 30 million) and the ultra-high net worth (greater than USD30 million).

Key Findings and highlights

- During the second half of 2007, there was a contrasting difference between the matured and emerging economies where emerging market captured the major portion of wealth management. - In 2007, the global economy grew by 5.1%, down slightly from the 5.3% global growth in 2006.
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- The United States had one of the worlds lowest savings rates in 2007 - The population of HNWIs reached 10.1 trillion in 2007 - The Indian market has outperformed global markets significantly and formed new highs coincided with a continuous increase in derivatives position which peaked at over Rs1 trillion.

OBJECTIVES:

Investment planning: assists you in investing your money into various investment markets, keeping in mind your investment goals.

Insurance planning: assists you in selecting from various types of insurances, self insurance options and captive insurance companies.

Retirement planning: is critical to understand how much funds you require in your old age.

Asset protection: begins with your financial advisor trying to understand your preferred lifestyle and then helping you deal with threats, such as taxes, volatility, inflation, creditors and lawsuits, to maintaining this lifestyle.

Tax planning: helps in minimizing tax returns. This might include planning for charity, supporting your favorite causes while also receiving tax benefits.

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Estate planning: helps in protecting you and your estate from creditors, lawsuits and taxes. This service is critical for every person whose net worth is high.

Business planning: This service aims at optimizing the tax free advantages of running your own business.

Business succession planning: assists in planning for the inevitable to maximize returns.

Wealth transfer: helps you pass on your wealth to your dependents.

But so many advantages will make the process of understanding Wealth Management will make it very complicated rather than simplifying the process of Wealth

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GRAPHICAL PRESENTATION

Dig 1: Wealth Management Cycle

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WEALTH MANAGEMENT-PRODUCTS AND SERVICES

They provide you with new investment opportunities and investment advice which allows you to choose from a broad spectrum of products and services. Standard Chartered Wealth Management by your side, you can be rest assured that you will have access to only the most viable wealth management products and solutions. With a well planned wealth consolidation strategy they ensure a lasting legacy for you and your loved ones.

PRODUCTS:
DIRECT INVESTMENT IN THE EQUITY MARKET Equity investment generally refers to buying and holding of shares of stock on the stock market by individuals and funds in anticipation of income from dividends and capital gains as the value of the stock rises. It also sometimes refers to the acquisition of equity participation in private company or start up. When the investment is in infant companies, it is referred to as venture capital investing and is generally understood to be higher risk then investment in listed and going concern situations. MUTUAL FUNDS A mutual fund is a corporation that pools the savings, which are then invested in money market, debt market and capital market instruments such as shares, debentures and other securities. Thus the mutual fund serves as a link between the public and the capital markets so as to mobilize savings from the investors and invest them in the capital markets to generate to access to well defined equities, bonds and other securities. Each share holder participates in the gain or the loss of the fund. Units are issued according to the:
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 Money put in by the investor Type of equity or bond chosen NAV of the security prevailing in the market NAV is the main performance indicator. A funds NAV is calculated as total assets minus all the expenses and divided by the number of its total outstanding units. Mutual funds are financial intermediaries. They are companies set up to receive your money and then having received it, make investments with the money Via an AMC. It is an ideal tool for people who want to invest but dont want to be bothered with deciphering the numbers and Number of stocks from various markets and industries. Depending on the amount you invest, you own part of the overall fund.

TWO TYPES OF MUTUAL FUND ARE: 1. STRUCTURED BASED 2. INVESTMENT BASED

STRUCTURED BASED MUTUAL FUNDS ARE:

(a) OPEN ENDED FUNDS: An open ended fund is that kind of fund that is available for subscription all through the year. These not have fixed maturity. (b) CLOSE ENDED FUNDS: A close ended fund has a stipulated maturity period, which generally ranges from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges, if they are listed, The market price at the stock exchange could vary from the schemes NAV on account of demand and supply situation, unit holders expectations and other market factors. INVESTMENT BASED MUTUAL FUNDS ARE:
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(a) GROWTH FUNDS: Growth funds are to provide capital appreciation over the medium to long term. Growth schemes are ideal for investors who have a long-term outlook and are seeking growth over a period of time. (b) INCOME FUNDS: The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income funds are ideal for regular income and capital stability. (c) BALANCED FUNDS: The aim of balanced fund is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. This proportion affects the risks and the returns associated with the balanced fund in case equities are allocated a higher proportion, investors would be exposed to risks similar to that of the equity market.

(d) MONEY MARKET FUNDS: The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as Treasury Bills, Certificates of Deposit, Commercial Paper and inter-Bank Call Money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods. ADVANTAGES OF MUTUAL FUND PORTFOLIO DIVERSIFICATION/RISK REDUCATION: An investor holds a diversified portfolio even with a small amount of investment, which would otherwise require a big capital. Further, the fund invests in diverse portfolios, hence reducing the riskiness of the investments.

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 REDUCTION OF TRANSACTION COSTS: While investing through the funds and investor has the benefit of economies of scale; the funds incur lesser costs because of larger volumes, a benefit passed on to its investor. PROFESSIONAL MANAGEMENT: Mutual funds are managed by professional management who has requisite skills and resources to analyze the various investment options in these fast-moving, global and sophisticated markets. LIQUIDITY: Often, investors hold shares or bonds they cannot directly, easily and quickly sell. If they invest in the units of a fund, they can generally cash their investment any time, by selling their units to the fund if open-ended, or selling them in the market if the fund is close-end. CONVENIENCE AND FLEXIBILITY: Investors have the option of transferring their holding from one scheme to the other; get updated market information and so on.

FIXED DEPOSITS Fixed deposits is made for those investors who want to deposits a lump sum amount of money for a fixed period of time say a minimum of 15 days to 5 years and above there by earning a higher rate of interest in return. Investors get a lump sum amount at the maturity at the deposit. Banks fixed deposits are one of the common saving scheme open to an average investor. Fixed deposits are one of the most common savings schemes open to an average investor. Fixed deposits also give a higher rate of interest than a savings bank account. The facilities vary from bank to bank. Some of the facilities offered by banks are overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc.

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ULIP ULIP stands for unit linked insurance plan. It is a kind of the life insurance where the policy value at any time varies according to the underlying assets at that time. It is a kind of the policy which provides the benefit of protection with the flexibility in the investment. The investment is denoted as units and is represented by the value that it has attained called as net asset value (NAV). ULIP came into play in 1960 and soon became popular in many in many countries in the world. The reason for the wide popularity was because it is a very transparent scheme and the flexibility it offers and investments.

ADVANTAGE OF ULIP: Simple, clear and easy to understand Easy in decision for investors Flexible and adaptable Puts the policyholder in control Policyholder gets the entire upside on the performance of his fund\

SIP SIP is termed as Systematic Investment Plan. In this the investor has the option of managing his investments on the periodic basis and thus inculcates the regular saving habit. Investor has to issue post dated cheques in favor of the fund and then gets the no. of units on the date of the cheque. The number of units depends on the amount, the kind of fund and the NAV of that date. SIP allows the investor to invest a prefixed amount with the scheme at set intervals and derive the benefit of fluctuating share prices and NAV. SIP works on the concept rupee cost averaging. So if the NAV is high the entire investment is valued. Derivative: A derivative can be defined as something which derives its value from an underlying product being, stock currency, commodity or anything that carries
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a market price. The market price of a product is subject to fluctuations due to various factors effecting its demand and supply thereby associating itself to various risk factors. So derivatives are a byproduct of the care product which can be used to hedge, separate & also undertake arbitrage activities. IPOs: An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO.

STRUCTURED PRODUCTSThey offer customized investment solutions to access various asset classes. Most structures will offer principal protection with returns based on performance of an associated asset class. Based on your preference, returns can be linked to a variety of asset types such as equity indices, basket of stocks, commodities.

ALTERNATIVE ASSET PRODUCTSThrough their distribution tie-ups, they offer a wide range of Private Equity Funds, which invest in the unlisted securities, to give you the opportunity of investing in the growing Indian economy. Access to these types of products and strategies can support a variety of investor objectives including capital preservation, risk protection, leverage, and diversification e.g. Private Equity Funds. So, if you are looking beyond the stock market, you will find us there too!

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REAL ESTATEThey offer niche property investment services. They bring in a combination of indepth market knowledge and real estate industry experience to offer a range of specialized real estate investment services. According to the analysis of the needs and objectives of the investor, they provide expert advice and innovative real estate solutions to their clients.

LONG AGAINST SECURITIES AND MUTUAL FUNDSTheir tie up with Finance will allow investors to use their investments in shares as security for their borrowing, which in turn can fund the purchase of additional investments. In this way clients are able to invest more and increase the size of their total portfolio.

GOLDA healthy portfolio is about the diversification and management of risk. Holding gold in a portfolio can provide distinct benefits, its most valuable contribution to a portfolio lies in the fact that it is not correlated with most other assets. They offer multiple avenues of investing in gold so that you can benefit from effective portfolio diversification

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LIFE INSURANCEWhile offering solutions for building and preserving capital, Relationship Manager will offer you comprehensive advice on how best to protect yourself and your family against all the most serious risks that you face. Their affiliation with Birla Sun Life Insurance provides the opportunity to obtain more favorable offers, which can result in lower costs and greater benefits. Their Policy Analyst review ensures that the planning youve previously done remains competitive and current.

SERVICES:
RESEARCHTheir quality research provides clients with the information they need to make informed investment decisions. Wealth Management Research team is dedicated to keep you updated with an access to these publications and to a wide range of research tools including market depth, breaking commentary, long-term forecasts to detailed daily updates and the latest financial news.

HIGHLY PROACTIVE SERVICES-

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They deliver a fast, effective and friendly service that often exceeds their client's expectations. The service includes daily Market Update, Weekly Update on MF, Event Based SMS; you will be kept fully informed on the markets.

ONLINE PORTFOLIO ACCESSWherever you are, their network works for you. This process is simple yet efficient, and ensures that you are always aware of every detail regarding your investments. You can constantly monitor the composition of your portfolio as well as all transactions, which will enable you to see if you can meet your long term objectives.

FINANCIAL PLANNINGTo complement your investment strategy they offer comprehensive financial planning. This planning session will be followed by a complimentary personalized report containing specific recommendations on the actions you need to take to achieve your financial goals.

REGULAR PORTFOLIO REVIEWSPeriodic reviews to ensure the integrity of the portfolio and continued viability of assets within the portfolio. They believe in diversification and are committed to providing sound and conservative investment acumen.

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SERVICES, ADVANTAGES AND DISADVANTAGES OF PRIVATE WEALTH MANAGEMENT IN INDIA

Private Wealth Management is the management that deals with the sophisticated financial solutions and highly customized investment management. They provide the financial planning session to the people that include the advices on the use of trusts and other estate planning vehicles, the use of hedging derivatives for large blocks of stock and business succession or stock option planning.

Private Wealth ManagementIt offers product and service on the demand of the wealthiest retail clients of investment firms. As the number of affluent investors had increased, so demand for sophisticated financial solutions and expertise throughout the world has been increased.

ICICI bank and Axis-Bank are very reputed and well known banks in the field of wealth management In India. ICICI Bank is using the services of global players like City group, Merrill Lynch and UBS for attracting and catching the customers for their Wealth Management business. Axis bank, one of Indias leading private sector bank also combined with Banque Privee Edmond de Rothschild, which is the Europe based wealth management expertise institution and is going to make new standard for the NRI people wealth management. In India, the Axis Bank is the fifth largest bank

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by market capitalization that provides payroll services to over 12000 corporate across 2.8 million salary accounts.

Services of Private Wealth Management Institutions:

1) Retirement Plan Services:

Defined Contribution Plans IRAs Custodian Or Trustee Defined Benefit Plans

2) Custodian Services:

Income collection from Securities Securities Safekeeping Settlement of Securities trades as directed Timely settlement delivery Payment of fund when directed

3) Trust Services:

Revocable Trust Charitable Trust Irrevocable life Insurance Trust Institutional Trust Special Need Trust
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Advantages of Private Wealth Management are:

The customer can easily know the investment strategy and analyze return and risk with the help of wealth management professional.

The Private wealth management professional provides the good service of tax planning like how customers can minimize save and the tax more money.

Customer can also manage their estate with the help of wealth management professional. Estate management provides protection of customers overall estate.

Those Banks which are engaged in business of wealth management professional are earning revenues from the foreign countries that mean outsourcing for economy.

Wealth management professional helps the customer in future planning for estate.

Disadvantages of Private Wealth Management are:

The big limitation of Wealth management is that they do not show their actual position to the customers. So, there may be chances of fraud and forgery with customers.

As they know that wealth management is now only related with the rich people and is not having any plans and solutions for poor, middle and lower class of people of society.

Thus wealth management reduces the scope of Management.

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Mostly customers do not know the actual position of market because everything is done by some Wealth management professional. So, that results in inflation and also there may be chances that the customers are in risk but they are showing the false return etc.

So, they can say that Private wealth management has various aspects in which some are favorable and some are very dangerous for the Indian economy. So, people should aware of this.

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CHAPTER 2

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COMPANY PROFILE

STANDARD CHARTERED BANK (LSE: STAN, SEHK: 2888, OTCBB: SCBFF) is a British Bank headquartered in London with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people. Despite its British base, it has few customers in UNITED KINGDOM and 90% of profits come from Asia, Africa, and the Middle East. Because the banks history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies.

The Standard Chartered Group was formed in 1969 through a merger of two banks: the Standard Chartered Bank of British South Africa founded in 1863 and the Chartered Bank of India. It now focuses on customer, corporate, and institutional banking, and on the provision of treasury services- areas in which the Group had particular strength and expertise.

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Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Tease Holdings. The name Standard Chartered comes from the two original banks from which it was founded and which is merged in 1969- The Chartered Bank of India, Australia and China, and the Standard Bank of British South Africa. Australia and China, founded in 1853.

HISTORY
Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Calcutta , and Shanghai in 1858 followed by Hong Kong and Singapore in 1859. Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Banks Cyprus Branches. This established a presence in Gulf. In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their
39

commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales. From the early 90s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking, and on the provision of treasury services- areas in which the Group had particular strength and expertise. In the new millennium they acquired Grindlays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000.

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STANDARD CHARTERED-LEADING THE WAY

Standard Chartered PLC is listed on both the London Stock Exchange and Hong Kong Stock Exchange and is consistently ranked in top 25 among FTSE-100 companies by market capitalization. Standard Chartered has a history of over 150 years in banking and operates in many of the worlds fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates, and joint ventures0 in 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the America. As one of the worlds most international banks, Standard Chartered employs almost 60, 000 people, representing over 100 nationalities, worldwide. This diversity lies at the heart of the Banks values and supports the Banks growth as the world increasingly becomes one market. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.

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RECENT ALLIANCES AND ACHEIVEMENTS

2005 and 2006 were historic years for Standard Chartered as they achieved several milestones with a number of strategic alliances and acquisitions that will extend their customer or geographic reach and broaden their product range. They completed, rebranded and successfully integrated SC First Bank in Korea, which to date is the biggest acquisition in their history. They completed full integration between Standard Chartered Bank Thailand and Standard Chartered Nakornthon Bank in October. They formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East. They acquired stakes in ACB Vietnam and Travelex. They acquired the business operations of American Express Bank in Bangladesh. They acquired a stake in Bahia Bank in Tianjin, China, making us the first foreign bank to be allowed a stake in a local bank in China. They acquired a 25% stake in First Africa Group Holdings in June 2006. They acquired an additional 26% stake in Permata Bank through consortium with PT Astra International, thus giving the consortium a total stake of 89%. They acquired Union Bank in Pakistan in September 2006 and have successfully rebranded all branches.

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PETER SANDS BECOMES CEO OF STANDARD CHARTERED BANK

It was announced today that Peter Sands (LLL, LON 88-02) will become the new CEO of Standard Chartered Bank, effective immediately.

Sands have been with the bank since 2002, and were most recently serving as Group Finance Director. Previously, he was a Director at McKinsey & Company.

Standard Chartered plc is a British bank headquartered in London, with operations in many countries, especially Asia, Africa and the Middle East.

Priorities at Standard Chartered

Standard Chartered believes that their future success depends on their ability to deliver a sustainable business. Their building a sustainable business strategy will help them long-term view of the implications of everything they do. This means taking responsible decisions that benefit their business, the economy, society and the environment-and build the trust of all stakeholders. Their building a sustainable business strategy explicitly reorganizes seven areas where them and their stakeholders believe that they are most likely to make greatest contribution to sustainability.

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They are: Sustainable lending- making sure when they lend money they are aware of
the environmental, social and governance risks attached to such decisions and that they take steps to address them

Tackling financial crime making sure that they have the right systems in
place to detect such things as fraud and money laundering and exceed, rather than simply meet, increasingly stringent legal requirements in this field

Access to financial services making sure they develop new ways for
those deprived of banking services to get proper access to finance so that they can improve their standard of living and economic independence

Responsible selling & marketing making sure they treat customers

fairly and set the highest standards in service and transparency

Protecting the environment making sure they not only minimize their
own direct impact on the environment but support others, such as customers, to do the same. They also want to support the development and commercialization of technologies and schemes that tackle environmental threats like climate change

Great place to work making sure that with their people, who represent
over 100 nationalities from over 50 countries, feel valued, included and engaged. They're determined to attract, develop and retain the best people and to leverage the strength the diversity of their people brings, which is an incomparable advantage

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Community investment making sure they involve their employees and

utilize their core expertise and networks to help communities develop and economies to grow

GOVERNANCE:
The governance structure they have set up for Sustainability provides strategic direction for the Bank and ensures they continue to make progress with their approach to sustainable development. The Corporate Responsibility and Community Committee sit at the top of this structure alongside the Remuneration, Audit and Risk, and Nomination Committees of their Board. It is supported by a Group Sustainability team, steering groups for specific programmes and their branches and offices in each country they operate in. The Committee is chaired by Mervyn Davies, the Group Chairman, and meets quarterly. It drives the Sustainability agenda at Standard Chartered and is responsible for responding to issues coming out of new Sustainability legislation, regulation, stakeholder guidance and reporting and for making sure their activities are aligned with their overall business strategy. It also ensures they publish a Sustainability report, supported by accurate data, each year, in line with best practice. A dedicated Sustainability team, based in the London office, supports the Committee, the Business and other Group functions. The role of the team is to talk with stakeholders, monitor good practice and flag up potential trends and emerging issues.

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It co-ordinates the collection of data and is responsible for their annual Sustainability Review and web site, participating in thought leadership events and raising their Sustainability profile outside the Bank

INVESTMENTS STRATEGIES AND PORTFOLIO MANAGEMENT

About Investment
It is the money that you save and channelize into sources that gives you return i.e. use of money in hope of making more money. One needs to invest to: Earn returns on idle resources Generate a specified sum of money for a specific goal in life Make a provision for a uncertain future To meet the cost of inflation

The aim of investment should be to provide a return above the inflation rate and also to ensure that the investment does not decrease in value. There are various options available for of investment:

Physical assets like real estate, gold/jewelers, commodities etc Financial assets like fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund, securities market related instruments like shares, bonds, debentures etc.

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TYPES OF INVESTMENTS (PERIOD SPECIFIC)

1) Short Term Investments- The investment period is usually less than a year and it provides liquidity to investor. Saving Bank Account- It is most often the first banking product that people use. This offers them interest (4%-5%p.a.) which is better than idle money. Money Market of Liquid Fund-These are specialized form mutual funds that invest in extremely short-term fixed income instruments and also provide liquidity. It focuses on protecting your capital and then making returns. These are better sources of investment than savings account but lower than fixed deposits. Fixed Deposit with Banks-Also known as term deposits and the minimum investment period with banks FD is 30 days. It is for those investors who are risk averse and it provides higher rate of return than money market instruments. 2) LONG TERM INVESTMENT- The investments period is more than a year and the returns are much higher than short term investments. Long term instruments are less liquid than short term investments. Post office Savings-The post office monthly income scheme is a risk saving instrument, which can be availed through any post office. It provides an interest rate 8%per annum, which is paid monthly, minimum amount, which can be invested is Rs. 1,000 and maximum is Rs. 3, 00,000. It has a maturity period of 6 years, premature withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principle amount if withdrawn prematurely

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Public Provident Fund- A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money, tax benefits can be availed for the amount invested and interested accrued is tax free. Company Fixed Deposits- These are short- term [six months] to medium- term [three to five years] borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semiannually or annually, there can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period, the rate of interest varies between 6- 9 % per annum for company FDs, the interest received is after deduction of taxes

Bonds- It is a fixed income [debt] instrument issued for a period of more than one year with purpose of raising capital, the central of state government corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date called the maturity date. MUTUAL FUNDS-These are funds operated by an investment company which arises money from the public and invests in a group of assets (shares, debentures etc.) in accordance with a stated set of objectives. It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and redeemed by the fund management company based on the funds Net Asset Value [NAV], which is determined at the end
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of each trading session. Mutual funds are usually long terms investment vehicle though there are some categories of mutual funds, such as money market mutual funds which are short term instruments.

Products of Standard Chartered

1. SAVINGS ACCOUNT

a. AXcess Plus

Get instant cash at over 20,000 ATMs across India and over 10,00,000 ATMs across the world through the Visa network. And get a globally valid Debit Card that lets you shop at over 3,26,000 outlets in India and at over 14 million outlets across the world.

FREE Unlimited Visa ATM transactions* (Cash withdrawal and Balance enquiry)

FREE Standard Chartered Bank branch access across the county FREE Doorstep Banking* FREE Demand Drafts/Pay Orders* (drawn at SCB locations) FREE Payable at Par Chequebook Other features available are:

International Debit Card Phone Banking Net Banking and Extended Banking Hours
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b. Parivaar

Parivaar is much more than a regular Savings Account. It allows you maintain your individual identity while allowing you to tap your family's financial strength. It also offers attractive insurance options to protect against unforeseen events and the facility of Systematic Investment Plan (SIP), a unique long-term wealth building tool.

Your family can maintain individual savings accounts with the clubbing balances in grouped accounts.

benefit of

Anytime, anywhere access to accounts through ATMs, Phone Banking and Internet Banking.

Option of Systematic Investment Plan (SIP), a well known long term wealth building tool that allows you to invest a fixed amount of money every month in specific mutual funds. This comes with a direct debit facility and avoids the need to remember dates and write cheques every month.

Globally valid ATM-cum-debit card can be used at 55,000merchant outlets in India and 12 million outlets worldwide

c. No Frills Account

You can now open an account with Standard Chartered Bank, with an average quarterly balance of as low as Rs. 250. Whats more you can avail of Anywhere Banking, by which you can access your account from any branch of Standard Chartered Bank in India.

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Quarterly Average Balance, as low as Rs. 250. ATM card & Debit Card available 4 free transactions per month at any Standard Chartered Bank (Internet banking, Phone Banking, ATM & Branch) channel

Anywhere banking Access your account from any branch of Chartered Bank.

Standard

Access to Phone Banking and Internet Banking Free Cheque deposit at any SCB Branch or ATM.

d. AaSaan No Minimum Balance requirement Free unlimited access to any SCB branch across the country Customer in-person Unlimited Free across to SCB ATMS Up to 4 free cash withdrawal transactions per month at other domestic VISA ATMs Nominal quarterly fee of Rs. 100 (reversed if Average Balance in the quarter is Rs. 10, 000 or more) for

OTHER FACILITIES: International Debit Card Phone Banking Extended banking hours
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Locker facility Doorstep banking To open an aaSaan account, you have to initially fund the account with Rs. 10,000.

2. ULIP- Unit Linked Insurance Plan LIFE INSURANCE is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible moneysaving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance.

Key Benefits of Life Insurance Life insurance, especially tailored to meet financial needs

Need for Life Insurance Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life
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insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Asset Protection From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which they need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
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Life insurance is the only investment option that offers specific products tailor-made for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. The table below gives a general guide to the plans that are appropriate for different life stages.

Life Stage Young & Single Young & Just Married

Primary Need Asset creation

Life Insurance Product Wealth creation plans

Asset creation

Wealth creation and Mortgage protection plan

Married with

Children's

Education insurance

Kids

Education, Asset Creation and protection

Mortgage protection and wealth creation plans

Middle aged with grown up kids Across all Life-stages

Planning for retirement and asset protection Health plans

Retirement Solutions & mortgage protection Health Insurance

Standard chartered Bank has a tie up with Bajaj Allianz Life Insurance to sell their insurance plans.
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Some of the key Life Insurance plans available are:

Max Gain: A product that offers the opportunity to get upside benefit of units price with complete downside protection from the fall in the equity market

Guarantee to encash units at maturity at the highest unit price achieved by the fund over the 10 year term of the policy

Guaranteed Addition at maturity : Up to 350% of total allocation charges

o o

No surrender charge after 3rd policy year Continuance of life cover even if premiums are not paid in the first 3 years

Flexibility to increase / decrease regular premiums to suit changing needs

Invest plus: A product that offers a guaranteed investment return and an insurance wrap

Investment return is declared at the beginning of the year. It will be applicable on the entire policy value and not just on the premium paid

o o

Investment returns once declared are guaranteed The policy value is enhanced by adding Additional Bonus @ 10% on Net Premiums paid after 10th year till policy term

Regular Premium allocation is 95% while top-up premium allocation is up to 121%

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Refund of up to 100% of the cost of life insurance cover at maturity

Shield plus: A unit linked single premium endowment plan that offers the dual advantage of Guarantee Return and Capital Preservation It gives a Guaranteed minimum 170% of unit price at maturity Option to choose Life Cover (1.1 or 5 times of the Single Premium ) Up to 100% allocation of the Single Premium paid Flexibility to decrease Sum Assured and avail Partial Withdrawals No Surrender Charge from 6th Policy Year onwards

o o o o o

Young Care II & Young Care Plus II: A unit linked regular premium plan specially designed to secure your childs future

o o

Option to choose from two additional rider benefits. The Product has a WOP feature where in on the death of Life assured, the policy continues with premiums paid into the policy by the insurance company till the end of term

Provides loyalty additions starting from 6th Policy Year to enhance the fund value

Sum Assured is paid on Death and WOP is triggered. Nominee receives the fund value at the end of the term

In case of financial constraint, there is an option to decrease the premium

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New Unit Gain II: New Unit Gain is a regular premium Unit-Linked Endowment Plan

Your investment, apart from normal allocation, receives Loyalty Units equivalent to 0.35% p.a. of the regular premium fund value at the end of each policy year starting from 6th year till maturity provided all due regular premiums have been paid

Choice of 7 investment funds, with complete flexibility to switch money from one fund to the other

The policy continues to participate in investment performance of the fund(s) even if one is unable to pay the premium for 3 full years

Flexibility: 1) To increase / decrease regular premium 2) To avail Partial withdrawals at any time after 3 years from commencement of the policy 3) To avail Unlimited free switches every year under Investor Selectable Portfolio Strategy

Future Secure II : Enjoy your retirement years with this pension plan

This pension plan with 2 options - with a life cover & without a life cover

The allocation to funds starts from 80% and keeps reducing depending on the premium size

o o

Future Secure has an Unlimited Top-up facility Loyalty Units get infused from Year 6 onwards as a % of fund value

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MRTA: Mortgage Reducing Term Insurance Plan: An offering for customers with a home loan or loan against property

The policy is a stand-alone policy and continues even if the loan is foreclosed or transferred.

The product provides valuable life cover at an attractive benefit-topremium ratio

o o o

The life cover amount paid is TaxFree. Insurance Premium can be structured as a part of the loan EMI In the event of untimely death of any member, the borrowers family is relieved from the burden of financial debt.

INVESTMENTS: MUTUAL FUND Mutual Funds are a pool of funds to diversify risk. These are funds operated by an investment company which raises money from the public and invests in a group of assets [shares, debentures etc] in accordance with a stated set of objectives .It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and redeemed by the fund management company based on the funds Net Asset Value [NAV], which is determined at the end of each trading session. Mutual funds are usually long terms investment vehicle though there some categories of mutual funds, such as money market mutual funds which are short term instruments.

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Benefits The reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity In MFs, the risk involved decreases and the return increases because of diversified pool of funds.

It is the cheapest of all investments. But if you invest through broker then you have to any 2.5% of the total investment but if you invest directly into the company no entry charges will be taken.

There is no lock in period in case of MFs but if you divest your investment within a period of 1year then you will have to pay an exit load between 1%- 2%.

Tax saving is another benefit given to the investors.

Flexibility - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy.

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Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV. Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Expert Fund Managers of the Mutual Fund analyze all options based on experience & research Potential of return -The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish. Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the investor's interests. If the market price decreases, the no. of units held by the investor increases and vice versa.

APPROACH AND PROGRESS

2011 priorities

Drive performance through continued focus on engagement and retention.

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Develop deeper leadership pipelines by ensuring delivery of personal development plans, mentoring and networking for their high performing talent.

Build depth in local talent pools especially in key, high growth markets. Use the new brand positioning for the Bank and the Customer Charter to further embed their differentiated culture and values.

A workforce is more than a group of individuals; it is what brings an organization to life. Operating in 71 markets and representing 125 nationalities, their employees immediately demonstrate their diverse nature.

Seven years ago they articulated five values: International, Courageous, Responsive, Creative and Trustworthy. These are the values that they live by. They are what stand us apart from their competitors and create a culture that truly makes Standard Chartered a great place to work.

From Peter Sands, their Group Chief Executive, to the most junior people in their branches, they ask their staff to live their values. Their senior managers lead by example. They bring their values to life every day in the way that they treat their employees, interact with customers and become involved in their local communities.

They strive to ensure every employee is very clear on what they expect of them. In a new development this year, objectives are now online, making them easily accessible to each employee and their manager. This will help raise the bar on performance and place it at the heart of their business. They expect every employee to perform strongly from a business point of view, and to do so in a way that is consistent with their
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values. Decisions on performance related remuneration are determined based on what people achieve as well as how it is achieved.

At its best their culture fosters loyalty and creates an environment in which their employees thrive, which is fundamental to sustained high performance.

Their reward structures inevitably play a role in creating sustainable performance. They remain committed to paying for performance and, as always, aim to align their remuneration policy with regulatory requirements and best practice while ensuring that reward is appropriate and competitive. These policies support and drive their business strategy and help reinforce their values.

They have an illustrious history and an enviable future operating in markets, such as Asia, Africa and the Middle East, where the pace of change and development is unprecedented.

Building a sustainable business is critical. Their success will depend on the efforts of their employees. It is vital that their culture engenders loyalty and creates an environment in which their employees thrive.

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PRESENCE OF STANDARD CHARTERED IN INDIA

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SWOT ANALYSIS STRENGTHSStrong presence in India-150 years of banking in India. Provides variety of convenience of online banking to access information about various accounts and also transfer money. Strong Brand Name- Worldwide presence Variety of services offered.

WEAKNESSATM coverage not as good as other private banks. Service does not cater to the mass. Advertising is not aggressive Credit cards facilities not good as other private banks. Not many branch networks.

OPPORTUNITIESGovernment removing restrictions on foreign banks on 2009, Would allow those banks to open shop in India. Standard Chartered has an opportunity to increase its branches in India, and further utilize its good image here.
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Scope for more effective use of their Brand Name.

THREATSEmergence of Indian private banks. Nationalization of Banks- these banks has many more branches networks than foreign banks.

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CHAPTER 3

66

PRESENTATION OF DATA OJECTIVE To understand the basics of investment and various alternatives that is available with the investor. Also to understand the customer psychology of investments and what are the various objectives behind the investment.

TYPES OF RESEARCH DESCRIPTIVE IN NATUREThe descriptive research design is one that describes the things such as the market potential for a product or the demographics and attitudes of customers who buy the product. It includes questionnaire survey and fact finding inquiry.

SAMPLE DESIGN SAMPLE UNIT: DELHI/NCR REGION SAMPLE SIZE: 50 SAMPLE SELECTION: RANDOM, CONVENIENT SOURCES OF DATA COLLECTION PRIMARY DATA COLLECTION:
Primary data was collected through questionnaires. Refer to the appendix for the data.

SECONDARY DATA COLLECTION:

Secondary sources through Internet Articles and Papers Books

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ANALYSIS AND INTERPRETATIONS

Q1. What is your age group?

Dig 2.Distribution according to Age Group

According to the survey, maximum number of people belongs to the age group of 1825 years. So they can say that most of the respondents will be willing to take risk and make investments in the market instruments with moderate risk.

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Q2. What is your Occupation?

Graph 1: Distribution According to their Occupation

The above graph shows the occupation of the sample respondents. 50% of the respondents belong to the category of salaried employees.

16% of the respondents are into Business.

14% of the responds are self employed and the rest 20% into other occupation

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3. Under which range your Household Income falls?

Dig 3: Household Income Range

The graph above depicts the household income range of the respondents. The income range of the maximum respondents lie in the 5-10 lakhs category whereas only 4% i.e. only 2 respondents income falls in the category of < 2 lakhs.

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Q4. What is your objective behind Investments?

Graph 2: Proportion of Objectives

According to the graph, the basic objective of most of the people behind investments in Tax benefits followed by good returns. It is really important for the investor to get good amount of profits on his investment. The next possible reason for investment is future plans for themselves and their family. Various other reasons for investments include safety and security of capital and managing uncertainties.

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Q5. How do you take financial decision?

Dig 4. Financial Decisions

According to the survey, 29% i.e. maximum no. of respondents take their financial decisions based on others opinion i.e. word of mouth. 22% of the total respondents take their financial decision independently. They take this decision based on their own interpretation and calculations. 19% of the respondents take their financial decisions with the help of financial advisors. 12% of the respondents take their financial decision based on the interpretation of the broker. Remaining respondents take their financial decisions either with the help of the bank or from the CA.

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Q6. How much Risk are you willing to take?

Dig. 5: Risk Ability According to the graph above, 70% of the respondents are willing to take moderate risk i.e. 35 respondents take moderate risk while taking investments decisions.

12% of the respondents i.e. 6 people out of 50 surveyed are willing to take high risk.

18% of the respondents i.e. 9 people are risk averse so they make investments in those securities which have less risk involved.

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Q7. What do you have presently in your portfolio in form of investment?

Graph 3: Various Financial products for Investments According to the survey, most of the respondents have insurance policies in their portfolio followed by fixed deposits. These two are those instruments which involve low risk. Those who can moderate risk have invested in property, mutual funds and equity. Some of the people have also invested in ULIP and gold which involved low risk

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Q8. How would you rate the satisfaction level with your current portfolio?

Dig. 6: Distribution of Satisfaction level The above chart shows the satisfaction level of the sample population. Majority of the sample population rate their current portfolio as Good which constitutes to 70%. 18% of the sample population i.e. 9 respondents out of 50 rate their current portfolio as Very Good. 6% of the respondents are not much satisfied with their portfolio so they rate it as Average. Out of the total sample size of 50, only 4% of the respondents i.e. 2 people rate their portfolio as Excellent as they must be getting good returns from their investment. Remaining 2% of the total population do not have much idea about the investment strategies so may not be getting much returns so they rate their portfolio as Poor.

ANALYSIS BASED ON THE AGE GROUP OF THE

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RESPONDENTS A) Age Group 18-25 years i) Occupation .

Graph 4: Distribution of Occupation for the Age Category 18-25 yrs In this age group, maximum no. of the res Out of the total sample population, 7 respondents out of 27 is neither into job, nor business. They have either invested into the share or commodity markets or they are students.

Out of 27, 4 respondents are self employed i.e. they have joined their family business. Remaining 2 respondents out of 27 in this age group are into business respondents are salaried employees.

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ii) Income

Graph 5: Graph of distribution of Income

Dig. 7: Diagram of distribution of Income The above graph shows the income level of the respondents in the age group of 18-25 years.

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In this age group, maximum no. of respondents has an income in the range of 2-5 lakhs.

10 of out of 27 respondents in this age group have an income range between 5-10 lakhs.

Around 20% of this age group has an income above 10 lakhs and the remaining 10% are below 2 lakhs.

iii) RISK

Dig 8: Risk Ability According to the graph, 66% of the respondents i.e. 17 respondents out of 27 can take moderate risk and invest in both the stock market and the government bonds. These people can have a portfolio with large as well as small cap funds.

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Those who take low risk invest in liquid funds, debt funds and in some of the government bonds.

The remaining 15% of the respondents take high risk which means that they invest in equity, mutual funds and other risky instruments.

This graph shows a correlation between the occupation, risk and income of the respondents. The yellow line depicts the risk level, pink depicts the income level and blue depicts the occupation of the respondents. According to the survey, when the income level of this age group is below 2 lakhs, they can invest in those instruments that have low risk attached to it and the occupation of such respondents is salaried employees.

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Graph 6: Overall Analysis for Age Group 18-25yrs As the income level range increases to 2-5 lakhs, the respondents decide to invest in those instruments having moderate risk attached to it and these people are generally into business. All those whose income level range from 5-10 lakhs, they their risk taking ability is also higher than others.

Finally all those respondents whose income level is above 10 lakhs invest in all those investments which have high risk associated with it.

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B. Age Group 25-35 years I ) Occupation

Graph 7: Occupation for Age Group 25-35yrs

There are 11 respondents out of 50 who are in the age group of 2535 years. No. of Respondents 2 6 2 1

Occupation a) Business b) Salaried c) Self Employed d) Others

ii) Income

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Dig. 9: Income for Age Group 25-35yrs

Out of the sample population, 11 respondents are in the age group of 25-35 years.

37% of the total respondents in this age group have an annual income of 5-10 lakhs.

36% of the respondents i.e. 4 respondents annual income is above 10 lakhs.

The remaining 27% of the respondents i.e. 3 of them have an annual income between 2-5 lakhs.

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iii) Risk

Dig 10: Risk for Age Group 25-35yrs

According to this diagram, majority of the respondents take moderate risk in investments. And rest 10% and 6% of them can take high and low risk.

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Graph 8: Overall Analysis for Age Group 25-35yrs

In the graph above, yellow line depicts risk, ping line depicts income and blue line depicts occupation.

In the graph above, as the income increases, the risk taking ability also increases. All those whose occupation is of salaried employee take less risk as compared to those who are into business.

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C. AGE GROUP 35-45 YRS i)Occupation

Dig 11: Occupation for Age Group 35-45yrs

Occupation Business Salary Self-employed Others

No. of Respondents 2 1 1 1

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ii) Income

Graph 9: Income for Age Group 35-45yrs

In this age group, there is no single respondent below the income level of 2 lakhs.

20% of the respondents lie in the income category of 2-5 lakhs.

40% of the respondents lie in the income category of 5-10 lakhs.

Again 40% of the respondents lie in the income category of income above 10 lakhs.

Hence, equal no. of respondents have an income ranging from 5-10 lakhs.

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iii) Risk

Graph 10: Risk for Age group 35-45yrs According to the graph, 80% of the people invest in those instruments carrying moderate risk.

Remaining 20% of the respondents invest in low risk instruments. No one in this age group invest in instruments carrying high risk.

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D. AGE GROUP >45 YRS I) Occupation

Graph 11: Occupation for Age Group>45yrs

In the graph above, maximum no. of people are salaried employees and minimum no. of people are into some other occupation. 28.57% of the respondents are into business.

ii) Income

Dig. 12: Income for Age group>45yrs

In this age group, 43% of the respondents have an income range between 5-10 lakh Majority of respondents i.e. 57% of the respondents have income above 10 lakhs.
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iii) Risk

Graph 12: Risk for Age Group>45yrs

In the graph above, maximum no. of respondents i.e. 57.14% of people have an ability to take moderate risk and invest in all kind of instruments. 28.57% of the respondents invest in those instruments that carry low risk attached with it. Finally there are only 14.29% of the respondents who invest in those instruments carrying high risk with it.

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Graph 13: Overall analysis of Age Group>45yrs

In the graph above, as you can see, the age group above 45 years is not willing to take high risk if their income level is not above 5 lakhs per year.

As the income level increases, the risk taking capability also increases.

Those having income level above 5-10 lakhs can invest in those instruments that bear high risk.

All those respondents who are into business can take moderate risk.

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CHAPTER 4 CONCLUSION

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FINDINGS

After going through my training program and survey, I came to know all about different aspects of investment strategies for mutual funds, life insurance etc. India is an emerging market. Consumption level is increasing with increase in income level. The segment 18-25years can be a potential consumer segment for the bank as most of people are falling in the income group of less than Rs. 15000 per month. The company can target this segment by offering its ULIP product both as an insurance and investment product, which can provide high returns as investments and provide the insurance cover too, as a large segment doesnt have a insurance cover. Segment 25-35 years ULIP can be promoted as investment option rather then insurance product. Mutual funds need to be promoted as only a small segment is investing in mutual funds. Mutual funds and ULIP both can be the best investment option for this segment. As the segment 35-45 years is an investing and risk taking segment, Mutual funds promising higher returns can be promoted in this segment. The product ULIP is also highly acceptable by this segment, so both of these products can be promoted as a best investment options promising high returns and low risks. People also invest in real estate as by this age people are in the position to invest large lump sum of money for this investment. In the segment of 45 and above age group people be targeting for Mutual funds as an be seen that every few people are investing in M.Fs this is because this segment consists of risk averters as this segment have invested in Fixed Deposits and government securities and insurance than any other investment product as safely is the most important factor which is being considered while investing by this segment. But people are neutral for these investments. Thus these products can be promoted as safe investments and better than F.Ds only then this segment can be helped. The products of Standard Chartered are very competitive and provide the best of their services to the customer. According to the survey, 99% of the respondents have their saving account which means that it is the hot selling cake in the banking industry. Around 30% of the people have invested in the plan ULIP and 30%- 40% of the respondents have invested in Mutual Funds.
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CONCLUSION AND SUGGESTIONS

The project Wealth management and Investment Strategies has helped me a lot to gain an insight about the various banking products. Standard Chartered Bank is one of the leading private banks which provide all the banking products and investment solutions to their customer. They have differentiated themselves in a very distinct way by providing the best of their services. This bank is listed on both London Stock Exchange and Hong Kong Stock Exchange. Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East. Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. With such shining sides, double digit inflation rate, bearish stock market, RBIs high bank rates, squeezing liquidity and other dark sides putting pressure on consumer saving. The situation pushes investors back from investment. They wait and hold cash rather than investing. This study found that investors are willing to invest with high rate of return. They know high return always adhere to high risk but market still is not in correction mode. It will take time. Indian market potential is high; investors are willing to pour money in Mutual funds, despite some temporary restraints, other economic factors are in favorable mode. It will take time. Thus they need proper management of advisory services, more schemes, and financial advisors and institutions to cater untouched markets.

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ANNEXURE

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QUESTIONNAIRE

Dear respondent this questionnaire is meant for the purpose of research on the topic Wealth Management and Investment Strategies for continuous evaluation of summer internship as a part of MBA (G) program of Amity Business School, Amity University, Uttar Pradesh. It will be assured that data collected will be not being misused. NAME CONTACT NO. . 1) What is your age group? a) 18-25 yrs b)25-35 yrs 2) What is your occupation? a) Business b) Salaried

c)35-45 yrs

d) >45 yrs

c) Self-employed

d) Others

3) Under which range does your Household Income falls? a) <2 lakh b) 2-5 lakh c) 5-10 lakh 4) What is your objective behind Investments? a) Safety & security of capital b) Retirement d) Expecting good returns e) Future Plans f)Managing Uncertainties g) Others 5) How to take financial decision? a) Independently c) Broker e) Advice from Bank

d) >10lakh

c) Tax benefits

b) Word of mouth/friends/relatives d) Advice from a Chartered Accountant f) Financial Advisors g) Others

6) How much Risk you are willing to take? a) High b) Low

c) Moderate

7) What do you have presently in your portfolio in the form of Investment? a) Fixed deposit b) Property/Land c) Ulip d) Gold e) Life Insurance Policies f) Government Bonds g) Mutual Bonds h) Equity/Shares

8) How would you rate the satisfaction level with your current portfolio? a) Excellent b) Very Good c) Good d) Average e) Poor f) Very Poor

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BIBLOGRAPHY

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WEBBSITES:
www.standardchartered.com www.moneycontrol.com www.valueresearch.com www.economywatch.com www.researchandmarkets.com

www.nseindia.com www.mutualfundsindia.com BOOKS: 1) MONEY AND BANKING- ICFAI 2) INDIAN FINANCIAL MANAGEMENT-M.Y KHAN 3) FINANCIAL MANAGEMENT-S.N MAHESHWARI 4) NCFM-BEGINNERS MODULE -

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