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1

Report

On

Rashi jain

MBA (finance)

Jayoti vidyapeeth womens

university

AN ANALYTICAL STUDY ABOUT FINANCIALPLANNING TOWARDS DIFFERENTFINANCIAL PRODUCTS AND SERVICES, ASTUDY OF STANDARD CHARTERED-STCICAPITAL MARKET LIMITED



A

Report

On

AN ANALYTICAL STUDY ABOUT FINANCIAL

PLANNING TOWARDS DIFFERENT FINANCIAL

PRODUCTS AND SERVICES, A STUDY OF

STANDARD CHARTRERED-STCI CAPITAL

MARKET LIMITED

Submitted By:

Parag Doshi

Industry Guide Faculty Guide

Mr. Rajesh Solanki Mr. Kantimohan

BDM- SCWM, Udaipur

Pacific Institiute of Management ,

RTU, Kota (RAJASTHAN)

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EXECUTIVE SUMMARY

The project is on analytical study of the investor’s preference towards different wealth

management services and study of wealth management services provided by standard chartered

wealth manager. The main thing which covers the project is about to understand the different

investment avenues and what people exactly prefer for their investment and to study the concept

of the wealth management. The project also comprises the survey report of different investors

and their views regarding the investment and investment policies. The project main target is to

study what exactly the behavior of the investors towards investment options available in the

market so basically to know the investor.

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ORGANIZATION DESCRIPTION:

Standard Chartered – STCI Capital Markets Limited

Concept: A leading broking company catering to the financial needs of institutional & retail

investors. On 11th Jan 2008 Standard Chartered Bank (Mauritius) Limited (SCBM) acquired 49%

stake in UTI Securities Limited from Securities Trading Corporation of India (STCI). Name of

the company was changed to ‘Standard Chartered – STCI Capital Market Limited’ (SC caps)

with effect from 17 Jan 2008.On 12 December 2008, SCBM acquired a further 25.9% stake in

the company to increase its total stake in SC caps from 49% to 74.9%.Member of BSE & NSE.

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Depository Participants with CDSL & NSDL. Large network – pan India presence in 112

locations, 38 branches & 137 authorized centers.

Objective of the Project

a) To study the concept of the wealth management services

b) To study the different wealth management services provided by the STCI –

Capital Market Limited.

c) To analyze the investors preference towards wealth management services.

d) To analyze the various factors influencing investors’ preference.

e) To study the behavior of different investors towards different investment options.

Back Ground

The standard chartered wealth manager is the branch of the standard chartered bank and dealing with

the capital market and focuses on the clients preferences towards different investment avenues. It is

the retail division of Standard Chartered – STCI Capital Markets Limited. We provide services such

as broking, wealth management, MF distribution etc.

Methodology

Primary data will be collected through the structured questionnaire which comprise of closed

ended questions and secondary data will be collected through publish and non-publish resources.

Convenient Sampling procedure is used here and surveyed 200 investors in the Udaipur city area

only. Data will be analyze using simple statistical tools like pie charts, bar diagrams and other

complex statistical tools like factor analysis by SPSS software.

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Findings and Conclusion

Age group of the people is the main factor in determining the investment and risk taking

capability. Due to recessionary conditions people are shifting towards debt funds rather that

equity funds. People who keep a huge amount of cash in their bank accounts, just for the purpose

of liquidity should be pitched for Medium-term, Short Term, and Liquid Fund as these funds

fulfill their needs of liquidity, safety and growth. These funds are not known to common

investors.

Recommendations

With the starting of the second week of the summer internship program, I studied the various

terms used in wealth management industry and compared the different investment avenues in the

market with different investment instruments provided by STNADARD CHARTERED

WEALTH MANAGER At the same time, I got an opportunity wherein I had to increase the

number of client through empanelment.

After this, I started the analysis on the risk involved in various investment schemes and different

sectors of economy like, banks, consumer non-durables and software industries during pre and

post economic turmoil.

Then, I started making the questionnaire based on the information gathered. Through this

questionnaire, did survey between the varied perception of investors and channel partners. I

interpreted these questions and analyzed through factor analysis here I have taken sample size of

100. From this its recommendation that STNADARD CHARTERED should increase its

customer base and focus on various parameters like income, age group etc. and it has low Human

Resource which causes great problem

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INTRODUCTION

1.1 PURPOSE OF THE PROJECT:

• To study the investment avenues in various sectors of the economy.

• To study the wealth management concept.

• To analyze the sector wise allocation of funds by different wealth management company.

• To analyze the growth rate in the different funds like equity, debt and money market

instruments.

• To make comparative analysis of investment avenues available in the market and to

understand the all investment options.

• To analyze the company’s performance for their different HNI’s.

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Information from company’s staff

Information from questionnaire

Secondary Data

Secondary data collected from various published and non published resources.

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Industry profile

Investment industry:

. The economy of India has proven to be highly conducive in terms of domestic and

foreign investments, in recent years. India Investments have been predicted as

the propelling force towards the country's attainment of self-sustained growth by

rapid industrialization

Foreign Direct Investment (FDI) in India is one of the most talked about issues today. Ratedamong the top emerging nations, India's liberalization policies are paying rich dividends to the

economy as a whole. Foreign Direct Investment (FDI) is defined as "investment made to

acquire lasting interest in enterprises operating outside of the economy of the investor." The FDI

relationship consists of a parent enterprise and a foreign affiliate, which together form a Trans-

national Corporation (TNC).

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India is thought to be a first-rate investment. India has a vast potential for foreigninvestment and foreign players find it their next investment destination.

As rightly said by Sukomal C Basu, Chairman & Manaing Director, Bank of Maharashtra;India is the fourth largest economy in the world and has the second largest GDP amongdeveloping countries, in purchasing power terms. It is experiencing growth with macroeconomic stability and is in the process of integrating with the global economy. Far-reaching economic reforms initiated in July 1991 generated numerous businessopportunities, leading to degeneration with removal of most licensing procedures.Economics authorities and various research studies carried out across the globe confirmthe fact that India and China will rule the world in the 21st century. For over a centurythe United States has been the leading economy in the world but key developmentshave taken place in the world economy since then, leading to the change in focus fromthe US and the rich countries of Europe to the two Asian giants- India and China.

The wealthy countries of Europe have seen the supreme decline in global GDP share by4.9 percentage points, followed by the US and Japan with a decline of about 1percentage point each. Within Asia, the rising share of China and India has more thanmade up the moribund global share of Japan since 1990. During the seventies and the

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eighties, ASEAN countries and during the eighties South Korea, along with China andIndia, contributed to the rising share of Asia in world GDP.

According to some experts, the share of the US in world GDP is expected to fall (from21 per cent to 18 per cent) and that of India to rise (from 6 per cent to 11 per cent in

2025), and hence the latter will emerge as the third pole in the global economy after theUS and China.

By 2025 the Indian economy is projected to be about 60 per cent the size of the USeconomy. The transformation into a tri-polar economy will be complete by 2035, with theIndian economy only a little smaller than the US economy but larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largestcountries in the EU, though its impact will be a little over half that of the US. India, whichis now the fourth largest economy in terms of purchasing power parity, will overtakeJapan and become third major economic power within 10 years.

Any company or firm irrespective of its size, which aspires to be a global player cannotfor long ignore India which is expected to become one of the best emerging economies.

However the million-dollar question here for foreign players is “What is the success-failure ratio?”

Success in investing in India will depend on four factors like: -

• Accurate estimation or at least feasible estimation of the India's potential• Proper Risk Assessment while investing in India• Proper understanding of the Indian Financial System• Careful strategic planning backed by thorough research on investment industry

Failure in investing in India can depend on three factors like: -

• Underestimation of Indian investment intricacies• Overestimation of investment potential in India• Complexities & reservations of Indian System

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Company profile

Vision

‘To emerge as one of the leading

Wealth Manager in India giving personalized advice to

individuals &corporate

as per their financial goals’

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Mission

"To emerge as one of the leading providers of stock

brokerage, investment banking and related services, at par

with the best in the world".

Business Objectives

We want our organization to be one of the Best Financial Services Company with

highest level of transparency and best business practices.

We should be the leading Investment Bankers with a distribution network spreading

across the country and leading Stock Brokers for both Institutional and Retail

segments.

We should provide the best of Wealth management solutions to our investors and we

should be one of the top Depository participants and Portfolio Managers.

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Our Research support should be the most un-biased and transparent analysis of the

subject companies.

With the best of IT network, strong RMS and internal controls we should be one of the

best service providers to our clients.

Key Business Areas -

• Investment Banking and Corporate Advisory

• Institutional Equity & Derivative Broking

•

Institutional Debt Broking

• Research

• Retail Equity & Derivative Broking

• Internet Trading

• Portfolio Management

• Wealth Management

• Depository Services

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1.5.1 Standard Chartered – STCI Capital Markets Limited is a leading broking company

with a pan-India presence and provides a wide range of financial services, including investment

banking, Institutional equity & derivative Broking, fixed income, research, retail equity &

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derivative broking (offline and online), portfolio management, distribution of financial products

and depositary services.

1.5.2 Standard Chartered Wealth Managers is the retail division of Standard Chartered –

STCI Capital Markets Limited. We provide services such as broking, wealth management, MF

distribution etc.

On 11th January 2008 Standard Chartered Bank (Mauritius) Limited acquired 49% stake of

erstwhile UTI Securities Limited from Securities Trading Corporation of India (STCI).

Accordingly, the name of the Company was changed from ‘UTI Securities Limited’ to ‘Standard

Chartered – STCI Capital Markets Limited’ with effect from Jeanery 17th, 2008. Subsequently,

on December 12, 2008, SCBM acquired further 25.9 % stake in Standard Chartered – STCI

Capital Markets Limited to increase its total stake in Standard Chartered – STCI Capital Markets

Limited from 49.0 % to 74.9 %.

1.5.3 Standard Chartered Bank in India is the country’s largest international bank with 90

branches in 33 cities and India is one of the Group’s key markets worldwide. Employing about

19,000 people, Standard Chartered Bank has played a significant role in the history of the

banking industry in India since opening its first branch in Kolkata, 150 years ago, April 12, 1858.

1.5.4 Facts about the Company:

A leading broking company catering to the financial needs of institutional & retail investors. On

11th Jan 2008 Standard Chartered Bank (Mauritius) Limited (SCBM) acquired 49% stake in UTI

Securities Limited from Securities Trading Corporation of India (STCI). Name of the company

was changed to ‘Standard Chartered – STCI Capital Market Limited’ (SC caps) with effect from

17 Jan 2008.On 12 December 2008, SCBM acquired a further 25.9% stake in the company to

increase its total stake in SC caps from 49% to 74.9%.Member of BSE & NSE. Depository

Participants with CDSL & NSDL. Large network – pan India presence in 112 locations, 38

branches & 137 authorized centers.

1.5.5 AIM: To offer simplified investment solutions and to provide long – term commitment and

value to our esteemed customers.

1.5.6 STNADARD CHARTERED’S SPECIALIST COMPRISE BANKING SERVICES:

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• Investment Banking & Wealth Management

• Capital Investment & Asset Management

• Private & Personal Banking, Fund Management

• Project Funding & Investment Programs (Primary Market)

• Private Placement Programs (cash deposit, credit line, BG, CD, SKR)

• Financial Transactions and Bank Instruments - Intermediating Buy and Sell (Bank-to-

Bank);

• Discounted Currency Exchange (Bank-to-Bank);

• Project Evaluation and Development

1.5.7 STANDARD CHARTERED’S MAIN TARGET

• To provide guidance and assistance to principals as private clients and high-net-worth

individuals, corporations & institutional investors, banks & funding groups, trusts &

foundations, executives & managers, and entrepreneurs through professional excellence

according to international banking standards.

• To explore innovative financial solutions and facilitate global investment potential for

wealth creation and life quality enhancement by providing global reach and connectivity

between capital markets and knowledge driven Investors profiteering from yielding

investments.

1.5.8 Business Vertical:

Institutional Business: Services such as Investment Banking, Equity and Derivative

Broking and Fixed income Group.

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Retail Brand: “Standard Chartered Wealth Managers”. Caters to both online and offline

customers. Offers equity and derivative broking, IPO, Mutual Funds, Fixed Income Investments

and company fixed Deposits.

2. INTRODUCTIONS TO THE PROJECT

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:

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1.2 The mass market (investible surplus USD5,000 to 25,000)

1.3 The mass affluent (USD25,000 to 1 million)

1.4 The high-net-worth (USD1 million to 30 million) and

1.5 The ultra-high net worth (greater than USD30 million).

The project is all about the analytical study of the behavior of the different investors towards the

wealth management services and study of the different wealth management services provided by

the STCI- capital market towards the fulfillment of the requirement of different types of

investors.

The first phase of the project comprises the study of different wealth management and different

investment avenues available in the market and wealth management services provided by the

STANDARD CHARTERED WEALTH MANAGERS.

STCI Capital market: Wealth Management provides a data model that consolidates all AUM

(assets under management) and extends the data services to multiple channels. This is further

enhanced with specialized product processors coupled with STP enablers and business reporting

tools to provide higher operational efficiency thus reducing overall costs and enhancing profits.

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2.1 DESCRIPTION OF WEALTH MANAGEMNT SERVICES

As the wealth management, which is still regarded as new and is unknown to the people so as theinvestment management which is nearly a new concept. A concept wherein the wealth of the

individual is managed looking at the various factors.

Investment management or asset allocation is an investment portfolio technique that aims to

balance risk and create diversification by dividing assets among major categories such as cash,

bonds, stocks, real estate and derivatives. Each asset class has different levels of return and risk,

so each will behave differently over time. For instance, while one asset category increases in

value, another may be decreasing or not increasing as much. Investment management can also beexplained as the professional management of various securities (shares and other bonds) or assets

(gold or real estate) to meet the specified goal or meet the requirements; it is for the overall

benefit of the investor. Investors could either be institution or the private individuals who either

do the investments directly or attaches with either the bank or some institution for the investment.

It can also be said to be a disciplined management approach which companies and understanding

of the goals and objectives of the investors with a fine tuned plan out by various software and

managers keeping in mind all the factors which will affect the investment portfolio.

Wealth management services includes:

Financial analysis

Assest selection

Stock selection

Plan implemention

Ongoing monitoring of investment

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Product and Services

Retail products offered

-Equity and Derivatives Broking

- Depository services

- Distribution of IPO, GOI Bonds and Mutual fund

Channels for servicing Retail clients

- Branches

- Business associates (Sub-brokers)

- Online Trading Platform

- Call and Trade

Wholesale products offered

- Equity and Derivatives Broking

- Debt Market Transactions

- Depository

- Equity placement / Merchant Banking

- Distribution of IPO and Mutual fund

ONLINE TRADING PLATFORM

The online trading platform offers transactional convenience through linkage of Trading, Demat

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and Bank account

2.2 INVESTMENT OPTIONS:

2.2.1DIRECT 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.

2.2.2 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:

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 fund’s NAV is calculated as total assets minus all theexpenses 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 don’t want to be bothered with deciphering the numbers and

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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:

(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.

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(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.

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 professionalmanagement 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

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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.

2.2.3 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.

2.2.4 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.

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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\

2.2.5 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 isvalued.

2.2.6 Derivative:

A derivative can be defined as something which derives its value from an underlying

product being, stock currency, commodity or anything that carries 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.

2.2.7IPO’s:

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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.

STANDARD CHARTERED WEALTH MANAGERS

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A division of STCI

INTRODUCTION:

“Management is what a manager does" the statement given by Louis Allen has very broad and

meaningful meaning.’Manage' is nothing but to forecast and plan, to organize, to command, to

co-ordinate and to control. The eminent writer and management guru William Spriegal has

given very valuable definition that 'Management is that function of an enterprise which concern

itself with the direction and control of the various activities to attain business objectives.

Management embraces all duties and functions that pertain to the initiation of an enterprise; it's

financing the establishment of all major policies and the provisions under which the organization

is to be run and the selection of the principal officers'.

In the general view the word management is form with Manage + Men + 'T' where ’T’ stands for

the factor time.

The term wealth management also now a days having very importance. So many Banking

companies are engaged in the business of wealth management. The premier insurance industry

is now booming because so many bankers are also adopting and playing safe in the business of

insurance the term called is Bancassurance. Now a day’s wealth Management has very craze

in the business world. In a survey it was found that India had 100,000 milliners day end of year

2006 is now grow up by 21% from a year earlier (Asia pacific wealth report).

CONCEPT OF WEALTH MANAGEMENT

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The term wealth management formed with two words wealth & Management. The meaning of

wealth is – Funds, Assets, investments and cash it means the term wealth management deft

with funds Asset, instrument, cash and any other item of similar nature. While defining wealth

Management we have to think in planned manner. "Wealth Management is an all inclusive set of

strategies that aims to grow, manage, protect and distribute assets in a much planned

systematic and integrated manner".

MIDDLE EAST & WEALTH MANAGEMENT: In this globalize era Middle East countries have

huge wealth management need. There are two types of wealth management institutions. They

are:-

(1) Private Banks

(2) Family Offices, engaged in the business of wealth management in Middle East. The wealth

management institute (WMI), the first center of excellence for the wealth management education

in Asia was established in Singapore in the year 2003.

The wealth management Institute (WMI) is providing professionals for wealth management with

a nice combination of learning and practical training.

The aim of WMI is to establish Singapore as the Asian hub for wealth Management. Where

Private Banks and Family offices are discussing about the strategies to capture the wealth

management business in the Middle East.

The global institutions are looking towards the Middle East to grow their wealth management

business and attracting the big business houses by their attractive service providing facilities.

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Tapping in to the Middle East market it is very crucial for private banks and private wealth

managers, the entry and increasing market share is not very easy task for them but they are

fighting. The Middle East region has become very highly competitive over the last five

years. Local banks are now competing with international bank.

According to a report the wealth management market in India will have a target size of 42 million

households by 2012, as against just about 13 million in 2007.The wealth management sector is

poised to witness tremendous growth. India’s economic growth is making larger sections of the

population prospective customers of wealth management providers.

Wealth management is a fast evolving domain with tremendous growth opportunity in India. In

the current interest rate and taxation environment, more individuals are seeking professional

management of their finances. Wealth management simply put includes all financial services. As

the economy grows and the GDP grows, the potential for the growth of this business is huge.

Wealth Management services would normally comprise investment under assets such as equity,

mutual funds, debt, insurance and specialized services such as estate management.

WEALTH MANAGEMENT RANGE

The range of wealth management can be expressed by this exhibit chart.

STUDENT START OF CAREER CAREER RETIREMENT

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ESTABLISHED

Liquidity

Management

(Cash Mgt)

* Deposit based comfort A/C

* Credit cards

* Comfort A/c with credit limit

* Gold Card

* Premium A/c

* Platinum Card

* Premium A/c

* Platinum Card

* Overnight money A/c

* Money Market & Fixed Income Fund

* Near Money Market Fund

* ZINS Plus

* Overnight money A/c

* Money Market & Fixed Income Fund

* Near Money Market Fund

* ZINS Plus

* Special Investments

Wealth

Formation

(Savings

Plans)

* Top portfolio

* Flagship portfolio

* Titan portfolio

* Top portfolio


* Titan portfolio

* Capital formation benefit funds

* Top portfolio


* Titan portfolio

Wealth

Optimization

(Lump sum

Investment)

* Absolute Return Portfolio

* Holding and Private Equities

* Modular Wealth Management

* Individual Wealth Management

* Premium Portfolio

* Titan Portfolio

WEALTH MANAGEMENT : INDIAN CONCERN

Some times people confuse asset management or financial management with the wealth

management. But wealth management has very broad area.

Position of India in Wealth Management

In the annual survey done by Cap Gemini, SA and Merrill Lynch it was found that ranks of

millionaires grew 6% in the previous year, because the number of richer people grew in India &

China where India is competing China. India & China posted the biggest gain in millionaires

advancing by 23% & 20% respectively.

When we are watching the world wide increase in number of millionaires the facts collected by

Cap Gemini, S.A. and Merrill Lynch survey report. India has 23% growth in the last year. The

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biggest Asian economy China stands on second position with 20%, west Asia 16%, United

States 4% and United Kingdom (UK) 2%.

So we can understand that there are more opportunities in the wealth management business in

Asia especially in India.

Portfolio Management Services

This service focuses on optimum allocation and active management of clients' assets based on

a pre-defined profile with the goal of optimizing investment returns desired, delegation of day-to-

day investment decisions to a team of professional managers and regular reporting of

investment decisions. The performance of every individual's portfolio is monitored on a regular

basis and investors are free to access Portfolio Managers and Research Analysts as desired by

them.

The following two types of Portfolio Management Services (PMS) are being offered:

Discretionary

The Portfolio Manager undertakes the entire management of the portfolio

Non Discretionary

The portfolio Manager passively manages the investments by taking care of executions,

payments, settlement and custody, while the client handles his own funds and takes his

own investment decisions.

The following three broad strategies are offered by us which are largely equity-centric

and suitable for investors with a high to aggressive risk profile.

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(1) VRUDDHI - The Growth Strategy

(2) AVASAR - The Momentum Strategy

(3) ANUKUL - Tailor-made Strategy

Depository Participant

Standard Chartered-STCI Capital Markets Limited was one of the first broker-cum-

Depository Participants in the country starting depository operations in 1997. Standard

Chartered-STCI Capital Markets Limited is a participant in National Securities

Depository Limited (NSDL) and Central Depository Services Limited (CDSL), through its

Depository operations. The company believes in efficient and cost-effective service

support to its brokerage business. In keeping with this philosophy, services offered to

broking clients carry no extra transaction charges. You will find our service charges very

competitive - offering the best value for your money. Back office software used is sate of

the art in the industry.

Our valued clients include Banks, Overseas Corporate Bodies, High Net worth

Individuals and Retail clients.

Depository Service Provided By Standard Chartered-STCI Capital Markets Limited

Account Opening

• Approach a depository participant (DP).

• Fill up the Account Opening Booklet.

37



• If your shares are held in joint names, be sure to open your account in the same order of

names. If A, B and C jointly hold 100 shares in the company and have three share

certificates all named as ABC, one DP account will suffice.

• For different combinations of names, open separate accounts for each

combination. If the three certificates are held as ABC, BAC and CBA, three

accounts are required.

• There is no limit to the number of accounts you can open.

• There is no limit to the number of DPs you want to have accounts with.

• You can even open a multiple-sign Depository Participant - Client Agreement,

which each investor must sign at the time of account opening.

• You will receive an account number and a DP ID number with each account.

Quote both these in all future correspondence with your DP.

• After opening the account, you can hold shares of any number of companies in

your account, provided all such companies have entered the depository system.

Dematerialisation

• At your request we arrange to convert your physical holdings into electronic form. To do

this you would require to open an account with NSDL through us called "Beneficiary

Account" in the name and style in which the shares are held and lodge the share

certificates with us accompanied by a dematerialization request form, separate for each

scrip. You are required to only make sure that NSDL has admitted that scrip for

Dematerialisation. An up to date list will be provided to you which will be constantly

updated.

38



• You have the option to convert your electronic shares back to physical shares.

Transfer of shares and settlements

• Transfer and settlements have never been easy as it is under the Depository system. Al l

that is required is an instruction slip from you. If you are selling securities then it has to

be a delivery instruction slip. If you are purchasing securities it has to be a receipt

instruction slip or standing instructions for credit.

Pledge-Hypothecation

• We provide facilities to pledge / hypothecate dematerialized stocks held in client

accounts for the purpose of raising a loan. This process is also much faster than in the

case of physical shares.

Freezing/ Locking Of Accounts

• You can also keep your accounts frozen /locked for the span of time desired by you. No

debits from your account will be made during this period.

Nomination

• The nomination form duly filled-in should be submitted to the DP either at the time of

account opening or later. The account holder, nominee and two witnesses must sign this

form and the name, address and photograph of the nominee must be submitted. If

nomination was not made at the time of account opening, it can be made subsequently

by submitting the nomination form. Only an individual can be a nominee. A nominee shall

not be a society, trust, body corporate, partnership firm, karta of Hindu Undivided Family

or a power of attorney holder.

39



Transmission

Transmission is the process by which securities of a deceased account holder are transferred to

the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder.

Process of transmission in case of dematerialized holdings is more convenient as the

transmission formalities for all securities held in a demat account can be completed by

submitting documents to the DP whereas in case of physical securities the surviving joint

holder(s)/nominee/ legal heirs has to correspond independently with each company in which

shares are held.

Holdings & Transaction Statements on Internet

Company is having the facility to view the statement of transaction & statement of holding on the

net, which is updated on real time basis.

40



Insurance

Birla Sunlife Insurance Co. Ltd.

The Aditya Birla Group

Aditya Birla Group is India's second largest business house, with a turnover of over

$4.75bn and an asset base of $3.8 bn. The Group is a well diversified conglomerate with

72,000 strong workforce spanning 40 Companies spread across 17countries.

The flagship companies of the Group - Grasim, Hindalco, Indian Rayon and Indo Gulf -

hold leadership positions in their respective areas of business.

Sun Life Assurance

Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the U.S.,

the Philippines, Hong Kong, and the U.K. Its major lines of business are life insurance,

annuities and mutual funds and investment services. Sun Life's rating reflects extremely

strong diversification of revenues and profitability, outstanding capitalization, good

fundamental earnings, and high-quality investments. In Canada, the company is

especially strong in the corporate life and health insurance and savings markets. In the

U.S., the company is a top 20 player in the variable annuity market and a significant

force in the upscale individual insurance market. In the U.K., Sun Life is amongst the top

20 lives and health insurers.

41



The Joint Venture

Birla Sun Life Insurance Company is a 74: 26 joint venture between Aditya Birla Group

and Sun Life financial Services of Canada. As on 1

st

March 2003, the company has an

equity capital of Rs. 180 crore. Birla Sun Life has Mr. Nani B Javeri as its CEO.

The company plans to focus on rural segment by leveraging the network of the Aditya

Birla Centre for Community Initiative and Rural Development in rural areas. The

company's distribution set up comprises insurance advisors for life and an expert

marketing team for group products.

• Flexi Save Plus - Endowment Plan

• Flexi Secure Life - Retirement Plan

• Flexi Cash Flow - Money Back Plan

• Classic Life - Premier Plan

• Flexi Life Line Plan

• My child

• Term Plan

• Premium Back Term Plan

42

http://160.111.111.2/insurance/FLEXI%20Save%20Plus%20-%20Endowment%20Plan.pdf

http://160.111.111.2/insurance/Flexi%20Securelife%20Retirement%20Plan.pdf

http://160.111.111.2/insurance/Flexi%20Cash%20Flow.pdf

http://160.111.111.2/insurance/BSLI%20launches%20Classic%20Life%20Premier%20Plan.pdf

http://160.111.111.2/insurance/FLEXI%20LIFE%20LINE.pdf

http://160.111.111.2/insurance/My%20child.pdf

http://160.111.111.2/insurance/Term%20Plan.pdf

http://160.111.111.2/insurance/Premium%20Back%20Term%20Plan.pdf

http://160.111.111.2/insurance/FLEXI%20Save%20Plus%20-%20Endowment%20Plan.pdf

http://160.111.111.2/insurance/Flexi%20Securelife%20Retirement%20Plan.pdf

http://160.111.111.2/insurance/Flexi%20Cash%20Flow.pdf

http://160.111.111.2/insurance/BSLI%20launches%20Classic%20Life%20Premier%20Plan.pdf

http://160.111.111.2/insurance/FLEXI%20LIFE%20LINE.pdf

http://160.111.111.2/insurance/My%20child.pdf

http://160.111.111.2/insurance/Term%20Plan.pdf

http://160.111.111.2/insurance/Premium%20Back%20Term%20Plan.pdf



OBJECTIVE

To analyze the behavior of investors and to promote ‘Wealth Management Services’ i.e.

‘Portfolio Management Services’ of Standard Chartered STCI -Capital Markets Ltd., Udaipur.

RESEARCH METHODOLOGY

Means the method carried out to study problem. It shows the type of sample design used. Its

size and the procedure used to draw the samples. The extent of precision achieved and the

method used for handling any special problem during the course of the study.

I HAVE 8 STEPS FOR MY RESEARCH METHODOLOGY

STEPS GENERAL METHODOLOGY APPLICATION

1. To decide the objective of the

study

Study the consumer behavior for

investing in shares.

2. To decide research design Descriptive research is applicable to

the project

3. To determine the source of

data

Primary and secondary sources of

data is applicable to the project

4. To design data collection form Survey method is used

43



5. To determine sampling

design and sample size

Sample survey of random type is

undertaken for the study

6. To organize and conduct field

work

Interview through questionnaire is

used to collect primary data

7. To process and analyze the

collected data

Graphs and pie charts are used to

analyze and process the collected

data

8. To prepare a research report Findings and analysis of the

collected information

Step 1: To decide the Objective of the study to be carried out

• To conduct a study on consumer behavior on investment in Udaipur city.

• To find out the awareness of portfolio management in Udaipur.

• To study the investment pattern of different people.

• To find out awareness level of STANDARD CHARTERED.

• To gauge a level of client satisfaction about STANDARD CHARTERED services.

Steps 2: To Decide Research Design

What is research design?

Research design is a plan. Structure and strategy of investigation conceived so as to obtain

answers to research questioner and to control variance. There are three types of research

designing.

44



1. Exploratory research

2. Descriptive research

3. Casual research

Among the above mention type descriptive research is applicable to this project. As it is based

on secondary type of data.

CHARACTERSTICS OF DESCRIPTIVE RESEARCH

• They are well structured

• It tend to be rigid, its approach can’t de changed every now and then.

• It collects primary data.

REASON FOR SELECTING DSCRIPTIVE RESEARCH

I have made use of Descriptive Research “To study the consumer behavior for building wealth in

Udaipur region” in the project most of the data is primary.

CHARACTERSTICS OF EXPLORATORY RESEARCH

• The focus is to discovery of ideas

• It is based on secondary data that is readily available.

• It does not have formal or rigid desire the researcher may have to change his

focus to depending on availability of new ideas.

• It is in the nature of preliminary investigation.

Step 3: To determine source of data

What are data sources?

Data sources are the data from the sources to carry out the research or collecting fresh data to

obtain results.

45



There are two types of data sources

1. Primary data

2. Secondary data

Primary data is that data, which is collected fresh and thus, happens to

be original in character.

Secondary data is data, which have been gathered earlier for some

other purpose.

Step 4: To design data collection forms

There are two modes of collecting data. They are

Observational method

Survey method

As far as data collection method is concerned designing data collecting forms are applicable to

the project. The method I choose is survey method.

Survey method can be carried out through

Personal

Telephonic

By E-Mail

By Post

But I carried it out through interview because I needed the information in detail. Which I could

not get through mails etc.

I have designed a questionnaire to collect the requisite information.

46



Structured-Direct

Structured-Indirect

I have made use of structured questionnaire where the listing of questionnaire in pre-arranged

order.

Step 5: To determine sampling design and sample size

Once the researcher has formulated and developed a research design including the

questionnaire he has to decide where the information is to be collected from all the people

comprising the population.

There are two type of survey:-

Sampling survey

Census survey

From the above type, sample survey is applicable to this project

CHARACTERISTICS OF SAMPLE SURVEY

• Random sampling

• Systematic sampling

• Stratified random sampling

• Cluster sampling

• Multi-stage sampling

• Replicated sampling

• Area sampling

• Quota sampling

47



Observation and findings:

Investor category:

RETAIL 77

HIGH NET WORTH 9

CORPORATE 14

RETAIL

77%

CORPORATE

14%

HIGH NET

WORTH

9%

49



From the above pie chart one can observe that 77 % of the investors are retail (individuals). 9%

are high net worth individuals and 14% are corporate.

Average level of investment:

INVESTMENT IN RUPEES % OF PEOPLE

Up to 50,000 15

50,000-3 lacs 50

3 lacs- 10 lacs 28

10 – 15 lacs 5

Above 15 lacs 2

Total 100

50



It is apparent from table & graph that the most respondents belong to the 50,000 to 3 lacs

category (50%) whereas investors of up to 50,000 are around 15% , 3 lacs – 10 lacs are around

28%,10 lacs – 15 lacs are around 5 % & above 15 lacs are around 2 %.

Tenure of investment:

SHORT TERM(UPTO 1 YEAR) 73

MEDIUM TERM (1-2 YEARS) 18

51



LONG TERM ( ABOVE 2 YEARS) 9

73% of the customers believe in investing for short term (for 1 year). They want fast returns .

18% indicate 1-2 years. And only 9 % indicate investment tenure of 2 years and above. It means

liquidity is the main driver of investment tenure.

Degree of risk

LOW 82

MEDIUM 17

MODERATE HIGH 1

TENURE OF INVESTMENT

MEDIUM TERM(1-2 YEARS)

18%

LONG TERM

(ABOVE 2 YEARS)

9%

SHORTTERM (UPTO 1

YEAR)73%

52



HIGH 0

It is apparent from table & graph that the most respondents’ wants to be their respective money

at least risk (82%) & only 1% people are interested in taking high risk.

Investment Objective In Shares

OBJECTIVE % PEOPLE

Achieving Regular Income 42

Planning For Quick Money 18

Acquiring An Asset 8

Creating Wealth 28

%

82%

17% 1%

Low

Medium

Moderate highHigh

53



Other 4

Total 100

42

18

8

28

4

0

5

10

15

20

25

30

35

40

45

Achieving

Regular

Income

Planning For

Quick Money

Acquiring An

Asset

Creating

Wealth

Other

It is apparent from table & graph that the most respondents’ wants to invest in shares for

achieving regular sort of income (around 42%), around 18% of people plans to make quick

money.28 % of people are interested in creating wealth.

Investment consideration In Shares

OBJECTIVE PEOPLE (%)

Return On Investment 42

Safety 21

Liquidity 28

54



Taxability 7

Others 2

Total 100

People (%)

42%

21%

28%

7% 2%

Return On

Investment

Safety

Liquidity

Taxability

Others

Awareness About Standard Chartered

CATEGORY PEOPLE (%)

Yes 78

No 22

Total 100

55



PEOPLE (%)

78%

22%

Yes

No

REASONS FOR NOT INVESTING IN SHARES:

RISKY 12

NOT SOUND INVESTMENT AVENUE 3

NO TRUST IN COMPANY 7

NO AWARENESS 8

56



NO TRUST IN

COMPANY

23%

NOT SOUND

INVESTMENT

AVENUE

10%

RISKY

40%

NO

AWARENESS

27%

Reasons for investing through online share trading companies:

GOOD RETURNS 12

HIGH LIQUIDITY 18

HIGH TRANSPARENCY 8

LESS RISKY 1

GOOD SERVICE 3

CONVINIENT AND FLEXIBLE. 5

OTHERS 1

57



12

18

8

13

5

1

02468101214161820

G O O D

R E T U R

N S

H I G H

L I Q U

I D I T Y

H I G H

T R A N S P

A R E N

C Y

L E S S

R I S K Y

G O O D

S E R

V I C E

C O N V

I N I E N T

A N D

F L E X I B L E .

O T H E

R S

58



Awareness about investment in shares:

YES 78

NO 22

YES

78%

NO

22%

YES

NO

Investment in Shares:

59



YES 48

NO 30

YES

62%

NO

38% YES

NO

DECISION INFLUENCER

FRIENDS 07

60



FAMILY MEMBER 21

OWN DECISION 52

INTERMEDIARIES 16

COMPANY ADVERTISEMENT 04

ANY OTHER 0

0

10

20

30

40

50

60

F R I E N D

S

F

A M I L Y

M E M

B E R

O W N D E

C I S I O N

I N T E

R M E D

I A R I E S

( B R O

K E R )

C O M P

A N Y A

D V E R

T I S E M

E N T

A N Y

O T H E

R

Awareness about Standard Chartered Wealth Managers

61



YES 17

NO 31

YES

35%

NO

65%

YES

NO

Customer Satisfaction:

FULLY SATISFIED 13

62



SATISFIED 37

SOME WHAT SATISFIED 25

NEEDS IMPROVEMENT 25

LIMITATION

• Lack of interest among certain respondents to fill up the questionnaire.

FULLY

SATISFIED 13%

SATISFIED

37%SOME WHAT

SATISFIED

25%

NEEDS

IMPROVEMENT

25%

63



• Due to the lengthiness of the questionnaire certain customers were apprehensive to

filling it.

• Time constraints most of the customers were busy to go through the questionnaire.

• Some of the respondents did not give a direct response to the questionnaire but just

give a general feedback

• Questionnaire contents some open ended questionnaire which respondents found

difficulty to answer so sometimes they were not co-operative to fill the full questionnaire

• Getting information from people of above profile is sometimes difficult, they refuse to

provide information and don’t co-operate.

• Reliability of data collected is not as primary data collected consists of what the

respondent know or feel so information collected can be based.

• Because of time constraints the sample size taken small which effect on the accuracy,

reliability of the researcher

• Some of the telephone number where changed therefore they couldn’t be contacted.

• Some of the respondent gave the appointments beyond the researcher period therefore

such people were excluded.

• People provide false data, as they were scared about providing actual data such as their

telephone number, age etc.

Suggestions & Recommendations

64



• Companies should take steps to create awareness among people for the investment.

• Companies should advertise heavily to publicize them through magazine, newspapers,

business channel and share broker and his representative also helps in publicity.

• Previous returns given by companies should be showed to the investor to win their

confidence in portfolio management.

• Short term funds should be promoted in the market.

• Standard Chartered should advertise heavily to create awareness of its presence in

udaipur.

• Standard Chartered should promote product life, trading tips on mobile phones and e-

mails for equity advisory.

• Standard Chartered has a good name among the investors. It should maintain its

position and live up to investor’s expectations.

Reference:

Business Standard (News Paper).

Economic Times (News Paper).

Financial Express (News Paper).

Business World (Magazine).

Business Economy (Magazine).

Economic Political Weekly

www.google.com

www.standard chartered-wealthmanagers.co.in

www.stcionline.com

QUESTIONNAIRE

65

http://www.google.com/

http://www.stcionline.com/

http://www.google.com/

http://www.stcionline.com/



1) Name -------------------------------------------------------------------------

2) Address -----------------------------------------------------------------------

3) Contact no -------------------------------------------------------------------

4) E-mail address -------------------------------------------------------------

5) Occupation/profession/business ------------------------------------

6) How much income you earn per month?

7) How much money do you save form your income?

8) Do you manage portfolio for your wealth?

9) Are you aware of shares an investment instrument?

Yes No

10) If yes, how did you come to know about shares trading?

1) News paper

2) Magazine

3) Company hoarding & posters

4) Share broker representation

5) Other

11) Are you investing in shares?

Yes No

12) If you are not interesting in shares what are the reasons?

1) Risky

2) Not sound investment avenue

3) Not enough awareness

13) If you are investing in shares what are the reasons for investing?

1) Good returns

2) Investment vary liquid

66



3) Very transparent

4) Less risky

5) Good service by broker

14) Which inventory category do you belong to?

1) Retailer

2) High network

3) Corporate

15) Which is the average level of your investment in per month?

1) Up to Rs 50,000

2) Rs 50,000 – 2 lacks

3) Rs 8 lack – 15 lacks

4) Above Rs 15 lacks

16) What tenure of investment do you prefer?

1) Short term (up to 1 year)

2) Medium term (1- 2 years)

3) Long term (above 2 years)

17) While investing, what degree of risk are you willing to take?

1) Low

2) Medium

3) Moderate high

4) High

18) What is your investment objective?

1) Receiving regular income

2) Planning for quick money

3) Acquiring an asset

67



4) Creating wealth

5) Any other (please specify)

19) While making investment decision, what is the most important

consideration for you?

1) ROI

2) Safety

3) Liquidity

4) Taxability

5) Any other

20) Who influence your decision?

1) Friends

2) Family members

3) Own decision

4) Intermediaries (brokers)

5) Company advertisement

21) Are you aware of standard chartered Wealth Managers?

Yes No

22) Are you satisfied with the client services of Standard chartered?

1) Fully satisfied

2) Satisfied

3) Some what satisfied

summer training report standrd chartd

Documents