Wealth Management Division

8/16/2019 Wealth Management Division

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S ' . ' PA I9#3A S PA&. '

01. INTRODUCTION02. DEFINATION0 . NEED OF PORTFO!IO AND PORTFO!IO "ANA#E"ENT0$. #OA!% OF PORTFO!IO "ANA#E"ENT05. O&JECTI'E OF PORTFO!IO "ANA#E"E&T

• &A%IC O&JECT'E• %U&%IDR( O&JECTI'E

0). %COPE OF PORTFO!IO "ANA#E"ENT

%TEP%OF PORTFO!IO "ANA#E"ENT• %EPECIFICATION OF IN'E%"ENT% O&JECTI'E%

AND CON%TRAINT%• %E!ECTION OF A%%ET "I*• FOR"U!ATION OF PORTFO!IO %TRATE#(• %E!E%TION OF %ECURIT(• PORTFO!IO E*ECUTION• PORTFO!IO RE'I%ION• PORTFO!IO E'A!UTION

0+. A%PECT% OF PORTFO!IO "ANA#E"ENT0 . T(PE% OF RI%- IN PORTFO!IO "ANAE"ENT• %(%TE"ATIC RI%-• UN%(%TE"ATIC RI%-

0 . %E&I #UIDE!INE% TO PORTFO!IO "ANA#E"ENT10 PORTFO!IO "ANA#E"ENT %ER'ICE%11 &ENEFIT% AND %ER'ICE AND %TRATI#E% OFFERED

T/ROU#/ P"%12 PORTFO!IO "ANA#ER

1 #ENERA! RE%PON%I&!ITIE% OF PORTFO!IO "ANA#ER1$ PA("ENT CRITERIA• FI*ED !IN-ED "ANA#E"ENT FEE• PERFOR"ANCED !IN-ED "ANA#E"ENT FEE

15 CODE OF CONDUCT OF PORTFO!IO "ANA#ER1) O&JECTI'E% OF IN'E%TOR FOR %E!ECTIN# P"%1+ IN'E%TO% A!ERT%

• DO %• DON T %

1 DIFFERENCE &ET EEN PORTFO!IO "ANA#ER 3 "TUA!

FUND%1 &ENEFIT OF C/OO%IN# PORTFO!IO "ANA#E"ENT

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%ER'ICE IN%TEAD OF "UTUA! FUND%20 CONC!U%ION21 &I&!O#RAP/(

A%/ o led$eme t

I would like to thank the company, Aditya Birla Money Mart Limited for selecting me asa summer intern. This gave me an opportunity to be a part of a NBFC group and also get involved infinancial services and wealth management insights!.

I convey my sincere thanks to my mentor, Mr. Gouranga Goswami for his constant

encouragement and support at each stage of the pro"ect. The words of guidance and advice receivedfrom him were very useful during the pro"ect. #is stress on learning different things and igniting me to

be a part of small pro"ects are highly appreciated.

$y special thanks to Mr. Suyog Aparajit (Regional Head), who is an e%ceptional leader and motivator. In spite of being at a high position, he never let us feel the same and made himself available for us whenever we needed. The receptiveness and appreciation of the work was verymotivating.

I would also like to thank Mr. Ankit u!ey " Mr. #rakalp Mis$ra for providing us

various tasks and other employees in the company for helping us throughout. Interaction with all of them was very fruitful.

I am also thankful to my college authorities at &IIB, for allowing me to undertake this pro"ect and get a nuance of the business world.

'bhi"eet (atilIntern 'B$$, (une

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e%uti e Summa"y

$y internship at 'B$$ started on ) th 'pril, *+ and went on for two months. This report is basically based on my learnings and e%periences in the company. 'll the work and activities which Idid are detailed in this report.

'ditya Birla $oney $art imited offers wealth management, financial planning and

investment solutions, mainly through a range of products like mutual funds, insurance, (- funds,alternate investments, select fi%ed deposits and I( s and structured products.

The company provides life insurance products of Birla &un ife Insurance, sourced throughits wholly owned subsidiary B&/ Insurance 'dvisory &ervices td B&/ I'&!, licensed to act as aCorporate 'gent of Birla &un ife Insurance Company imited.

The Corporate 0 Institutional section caters to banks, financial institutions and other companies1 2ealth $anagement service focuses on #NIs1 while the 3etail section offers solutionsthrough Channel (artners and branches. ' combination of personal attention, ethical practices, strong

research, state4of4the4art technology, streamlined processes and innovative marketing has made'B$$ one of the premier distribution companies in India, well poised to serve the growingeconomy and increasing investor population.

The organi5ation where I conducted my pro"ect was 'ditya Birla $oney. The pro"ect focuses onthe %A&'uisition o ealt$ *lients and +nderstanding o #ort olio Management, Mutual unds" Real estate , (une. -very process in finance starts with client ac6uisition and hence the concept of sales pitch for financial products is of utmost importance.

• 2e were also taught a script according to which we had to pitch in while doing sales calls. 2e

were told that only *78 of the total calls that we make usually ends in a meeting with the prospective client of which only *78 onboard at 'B$$ that we later found out as true.

• $acroeconomic scenario of each month is captured by a maga5ine published by 'B$$known by the name %Mont$ly Market Re-iew . It encompasses the historical happenings inall ma"or financial markets around the world and its impact on Indian financial markets.$aga5ine also predicts the direction in which the market was supposed to move in the comingmonth. This maga5ine was particularly useful in improving the financial literacy of clients andeven us.

&imilarly we contacted some corporates. 2e interacted with some customers and had discussion

with them regarding their investment pattern. Building faith and relationship is a must to have a long

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term relationship with the client. The relationship with clients was based on faith, honesty andtransparency.

$e /!je&ti-e o #roje&t is0

The 4 e6all 4bje7ti e 8a9 be :i i:e: int4 the ;4ll4


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• The fourth4largest producer of acrylic fiber • 'mong the top *7 cement producers• 'mong the best energy4efficient fertili5er plants• The largest Indian $NC with manufacturing operations in the :&'• ' metals powerhouse, among the world>s most cost4efficient aluminum and copper producers

Aditya Birla Group 3 $e 4ndian S&enario

• The largest fashion premium branded apparel! and lifestyle player • The second4largest manufacturer and largest e%porter of viscose filament yarn• 'mong the top three mobile telephony companies• ' leading player in life insurance and asset management• 'mong the top two supermarket chains in the retail business

*SR A&ti-ities

• 2orks in ?,777 villages• 3eaches out to seven million people, annually, through the 'ditya Birla Centre for Community

Initiatives and 3ural /evelopment• Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social

reform in India, Bra5il and -gypt, as well as (hilippines, Thailand, aos, Indonesia, Aorea and

other 'sian countries

Aditya Birla Money

• 'ditya Birla $oney formerly known as 'pollo &indhoori Capital Investments is a leading player in the broking space with nearly *= years of e%perience. It became a part of 'ditya Birla


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• Trading facility in commodity segment, including bullion, oils, gaur seed etc. through itssubsidiary, 'ditya Birla Commodities Broking imited

• /epository (articipant E/( services of N&/ and C/&• nline bidding for I( and $utual funds• &ubscription based brokerage plans• /istribution of $utual Funds• 3eal estate investment

Aditya Birla Money Mart

'ditya Birla $oney $art imited is a wealth management and distribution player, offering third party products like company deposits, mutual funds, insurance, structured products, alternate investments, property services, and has a premium wealth management service arm to cater to #NI and ultra #NIcustomers.

P"odu%ts = Se" i%es

Following are the products for financial investment which are offered by 'ditya Birla $oney ltd.

• (ortfolio management service ($&!, -6uity, Commodity, /erivatives, I( , Currency• $utual Fund, ife Insurance• 'lternative Investments• Fi%ed /eposits,


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What is Portfolio Management Service?

• The art and science of making decisions about investment mi% and policy, matchinginvestments to ob"ectives, asset allocation for individuals and institutions, and balancing risk against performance.

• (ortfolio management is all about strengths, weaknesses, opportunities and threats in thechoice of debt vs. e6uity, domestic vs. international, growth vs. safety, and much other trade4offs encountered in the attempt to ma%imi5e return at a given appetite for risk.

• In the case of mutual and e%change4traded funds -TFs!, there are two forms of portfoliomanagement passive and active. (assive management simply tracks a market inde%,commonly referred to as inde%ing or inde% investing. 'ctive management involves a single

manager, co4managers, or a team of managers who attempt to beat the market return by



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actively managing a fund>s portfolio through investment decisions based on research anddecisions on individual holdings. Closed4end funds are generally actively managed.

Mutual 1unds (t$roug$ Birla Sun li e Asset Management *ompany Limited (%BSLAM* ))

• ur foray in to asset management services is through the "oint venture with &un ife Finanical• Incorporated Canada wherein we have =78 stake in it. 's on 'ugust ?*, 977+, B& '$C

manage 3s * ,7 Crores of assets under us, with an investor base of over 7.* crore customers.• ur "oint venture offers a range of investment options, which include sector specific e6uity

schemes, income plans, debt and treasury products, and offshore funds. It currently has a rangeof ?= investment schemes including two offshore funds, designed to cater to every need of theinvestor. 2e also offer portfolio advisory services for high net4worth investors, which is arapidly growing business segment for the Company. 2e are the IndiaJs first asset managementCompany to be awarded the I& 77* 9777 certification by /NH Netherlands.

Li e 4nsuran&e uality #oli&y

/ur ;ision

LTo be a leader and role model in financial services sector with a !road !ased and integrated

businessM

/ur Mission

LTo deliver superior value to our customers, &hare holders, employees and society at large.M

/ur ;alues



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• Integrity @ Conduct business in an -thical 0 Transparent manner.• Commitment @ Towards all &takeholders and to our Business to provide a healthy,

profitable environment.• (assion @ Bring in passion in all our activities. Aeep Clients and (artners the foremost in all

dealings.• &eamless4ness @ 2ork seamlessly across functions to provide ' Class &ervice. &peed @ /eliver promises on time.

45 R/ +* 4/50

M+ +AL 1+5 S0

• ' mutual fund is a common pool of money in to which investors with common investmentob"ective place their contributions that are to be invested in accordance with the stated

investment ob"ective of the scheme. The money thus collected is then invested in capital

market instruments such as shares, debentures and other securities.• The income earned through these investments and the capital appreciation reali5ed are shared

by its unit holders in proportion to the number of units owned by them. Thus a $utual Fund is

the most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost.

• The $:T:' F:N/ industry started in * +? with the formation of the :nit Trust of India, atthe initiative by 3eserve Bank of India and the


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• First Scheme in India was US 64

• Public Sector an!s were allowed to set u" Mutual #unds in 19$%

• First "ublic sector ban! to set u" Mutual was S& I

• Pri'ate sector was allowed in 1993 ( othari Pioneer)

• In 1996 S& I #ormed Mutual Funds e*ulation

• In 1999 the di'idends #rom muutual #unds were made ta+ #ree

• In ,--3 a le'el "la.in* #ield was created / all Mutual #unds includin* UTI came under

S& I e*ulations0

*HARA* ?RS 4*S /1 M+ +AL 1+5

• Investors own the $utual Fund'$C manages the funds for a feeFee is e%pressed as 8of assets managed

• Fee is within limits specified by &-BI• The funds are invested in a portfolio of marketable securities, reflecting the investment

ob"ective.• Halue of the portfolio 0 investors holdings, alters with change in the market value of

investments.

T P&S 2F MUTU FU5 S78&M&S

B6 S R+* +R? 3

• &chemes can be classified as Closed4ended or pen4ended depending upon whether they give

the investor the option to redeem at any time open4ended! or whether the investor has to wait

till maturity of the scheme closed4ended scheme!.• pen ended &chemes• 'n open4ended fund or scheme is one that is available for subscription and repurchase on a

continuous basis. These schemes do not have a fi%ed maturity period. Investors can

conveniently buy and sell units at Net 'sset Halue N'H! related prices which are declared on

a daily basis. The key feature of open4end schemes is li6uidity.

*losed ended S&$emes



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• ' close4ended fund or scheme has a stipulated maturity period e.g. =4 years. The fund is open

for subscription only during a specified period at the time of launch of the scheme. 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 e%changes where the units are listed.• In order to provide an e%it route to the investors, some close4ended funds give an option of

selling back the units to the mutual fund through periodic repurchase at N'H related prices.

&-BI 3egulations stipulate that at least one of the two e%it routes is provided to the investor

i.e. either repurchase facility or through listing on stock e%changes. These mutual funds

schemes disclose N'H generally on weekly basis.

4nter-al S&$emes

•

These schemes combine the features of open4ended and closed4ended schemes. They may betraded on the stock e%change or may be open for sale or redemption during pre4determined

intervals at N'H based prices.

B6 45;?S M?5 /B@?* 4;? @

Growt$ S&$eme

• These schemes seek to invest a ma"ority of their funds in e6uities and a small portion in money

market instruments. &uch schemes have the potential to deliver superior returns over the longterm.

• #owever, because they invest in e6uities, these schemes are e%posed to fluctuations in value

especially in the short term. -6uity schemes are hence not suitable for investors seeking

regular income or needing to use their investments in the short4term.• They are ideal for investors who have a long4term investment hori5on. The aim of growth

funds is to provide capital appreciation over the medium to long4 term

4n&ome S&$emes

• The aim of income funds is to provide regular and steady income to investors. &uch schemes

generally invest in fi%ed income securities such as bonds, corporate debentures,


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are likely to increase in the short run and vice versa. #owever, long4term investors may not

bother about these fluctuations.

Balan&ed S&$emes

• These schemes are commonly known as #ybrid &chemes. These schemes invest in both

e6uities as well as debt. The aim of balanced funds is to provide both growth and regular

income as such schemes invest both in e6uities and fi%ed income securities in the proportion

indicated in their offer documents.• These are appropriate for investors looking for moderate growth. They generally invest )74

+78 in e6uity and debt instruments. These funds are also affected because of fluctuations in

share prices in the stock markets. #owever, N'Hs of such funds are likely to be less volatile

compared to pure e6uity funds.

/ H?R S*H?M?S 3

4nde: s&$emes

• The primary purpose of an Inde% is to serve as a measure of the performance of the market as a

whole, or a specific sector of the market. 'n Inde% also serves as a relevant benchmark to

evaluate the performance of mutual funds. &ome investors are interested in investing in the

market in general rather than investing in any specific fund.• &uch investors are happy to receive the returns posted by the markets. 's it is not practical to

invest in each and every stock in the market in proportion to its si5e, these investors are

comfortable investing in a fund that they believe is a good representative of the entire market.

Inde% Funds are launched and managed for such investors.

S R+* +R? /1 M+ +AL 1+5 45 4S R6 45 45 4A

There are many entities

involved and the diagram below illustrates the organisational

set up of a mutual fund



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S #9 # 9 .SIS S *

• Sponsor 4&ponsor is the person who contribute at least )78 of the net worth of the Investment

$anaged and meet the eligibility criteria prescribed under the &ecurities and -%change Board

of India $utual Funds! 3egulations, * +.The &ponsor is not responsible or liable for anyloss or shortfall resulting from the operation of the &chemes beyond the initial contribution

made by it towards setting up of the $utual Fund.• rust 4The &ponsor constitutes the $utual Fund as a trust in accordance with the provisions of

the Indian Trusts 'ct, *DD9. The trust deed is registered under the Indian 3egistration 'ct,

* 7D.• rustee 4Trustee is usually a company corporate body! or a Board of Trustees body of

individuals!. The main responsibility of the Trustee is to safeguard the interest of the unit

holders and inter alia ensure that the '$C functions in the interest of investors and in

accordance with the &ecurities and -%change Board of India $utual Funds! 3egulations,

* +, the provisions of the Trust /eed and the ffer /ocuments of the respective &chemes. 't

least 9G?rd directors of the Trustee are independent directors who are not associated with the

&ponsor in any manner.• Asset Management *ompany (AM*) 4The Trustee as the Investment $anager of the $utual

Fund appoints the '$C. The '$C is re6uired to be approved by the &ecurities and -%change

Board of India &-BI! to act as an asset management company of the $utual Fund. 't least=78 of the directors of the '$C are independent directors who are not associated with the

&ponsor in any manner. The '$C must have a net worth of at least *7 crore at all times.

e$ist"a" a d "a s!e" A$e t -

• The '$C if so authori5ed by the Trust /eed appoints the 3egistrar and Transfer 'gent to the

$utual Fund. The 3egistrar processes the application form, redemption re6uests and

dispatches account statements to the unit holders. The 3egistrar and Transfer agent also

handles communications with investors and updates investor records.

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A+8A. A& S * M# #A3 *#.+ I. I.+IA

A orda!ility

• ' mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the

investment ob"ective of the scheme. 'n investor can buy in to a portfolio of e6uities, which

would otherwise be e%tremely e%pensive. Thus it would be affordable for an investor to build a

portfolio of investments through a mutual fund rather than investing directly in the stock

market.

i-ersi i&ation

• It means that you must spread your investment across different securities stocks, bonds,

money market instruments, real estate, fi%ed deposits etc.! and different sectors auto, te%tile,

information technology etc.!. This kind of a diversification may add to the stability of your

returns

;ariety

• $utual funds offer a tremendous variety of schemes. This variety is beneficial in two ways

first, it offers different types of schemes to investors with different needs and risk appetites1

secondly, it offers an opportunity to an investor to invest sums across a variety of schemes,

both debt and e6uity.



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#ro essional Management

• Oualified investment professionals who seek to ma%imi5e returns and minimi5e risk monitor

investor>s money. 2hen you buy in to a mutual fund, you are handing your money to an

investment professional who has e%perience in making investment decisions. It is the Fund

$anager>s "ob to a! find the best securities for the fund, given the fund>s stated investment

ob"ectives1 and b! keep track of investments and changes in market conditions and ad"ust the

mi% of the portfolio, as and when re6uired.

a: Bene its

• 'ny income distributed after $arch ?*, 9779 will be sub"ect to ta% in the assessment of all

:nit holders. #owever, as a measure of concession to :nit holders of open4ended e6uity4

oriented funds, income distributions for the year ending $arch ?*, 977?, will be ta%ed at a

concessional rate of *7.=8.• In case of Individuals and #indu :ndivided Families a deduction upto 3s. ,777 from the Total

Income will be admissible in respect of income from investments specified in &ection D7 ,

including income from :nits of the $utual Fund. :nits of the schemes are not sub"ect to

2ealth4Ta% and


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2ithdrawal 'dvantage (lan L&2'(M!. In addition to this an investor receives account

statements and portfolios of the schemes

1le:i!ility

• $utual Funds offering multiple schemes allow investors to switch easily between various

schemes. This fle%ibility gives the investor a convenient way to change the mi% of his portfolio

over time.

ransparen&y

• pen4ended mutual funds disclose their Net 'sset Halue LN'HM! daily and the entire portfolio

monthly. This level of transparency, where the investor himself sees the underlying assets

bought with his money, is unmatched by any other financial instrument. Thus the investor is in

the know of the 6uality of the portfolio and can invest further or redeem depending on the kind

of the portfolio that has been constructed by the investment manager.

+"a ba%/s o! Mutual *u d

$utual funds have their drawbacks and may not be for everyone

• 5o Guarantees No investment is risk free. If the entire stock market declines in value, the

value of mutual fund shares will go down as well, no matter how balanced the (ortfolio.

Investors encounter fewer risks when they invest in mutual funds than when they buy and sell

stocks on their own. #owever, anyone who invests through a mutual fund runs the risk of

losing money.

• 1ees and &ommissions 'll funds charge administrative fees to cover their day4to4day

e%penses. &ome funds also charge sales commissions or loads to compensate brokers,

financial consultants, or financial planners. -ven if you don>t use a broker or other financial

adviser, you will pay a sales commission if you buy shares in a oad Fund.• a:es0 /uring a typical year, most actively managed mutual funds sell anywhere from 97 to 7

percent of the securities in their portfolios. If your fund makes a profit on its sales, you will

pay ta%es on the income you receive, even if you reinvest the money you made.• Management risk 2hen you invest in a mutual fund, you depend on the fund>s manager to

make the right decisions regarding the fund>s portfolio. If the manager does not perform as well

as you had hoped, you might not make as much money on your investment as you e%pected. f

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course, if you invest in Inde% Funds, you forego management risk, because these funds do not

employ managers.

3 * S BI I. M# #A3 *#.+S I.+#S

• In the year * 9, &ecurities and e%change Board of India &-BI! 'ct was passed. The

ob"ectives of &-BI are @ to protect the interest of investors in securities and to promote the

development of and to regularities.

S?B4 R?G+LA 4/5S

• $utual Funds are highly regulated financial entities that must comply with a large number of regulates mutual funds as per the &ecurity and -%change Board of India $utual Funds!

3egulations,* + L&-BI 3egulationsM!

e$ist"atio

• 'll mutual funds are re6uired to be registered with &-BI. &-BI 3egulations lay down the

terms and conditions of registration, including fee mutual funds may charge investors.

9o stitutio a d Ma a$eme t

• &-BI 3egulations highlight the manner in which the mutual fund ought to be constituted

including the contents of the trust deed. It also mentions the eligibility criteria for the

appointment of assets management company, custodian and registers 0 share transfer agents.

Ad e"tisi $ 9ode

• &-BI 3egulations lays down strict norms for any advertisements by a mutual fund with a view

to ensure that there are no inaccurate and misleading statements.

I estme t bje%ti es a d 8aluatio Poli%ies

• &-BI 3egulations restrict the type of investments by any mutual funds. 'nd the investment

ob"ective and policies in respect of any scheme should be clearly mentioned in the offer

document pertaining to such scheme in accordance with the regulations. &-BI 3egulations also

lay down guidelines and method for valuation of investments, computation of N'H and pricing

of units.



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S BI>S 9 + * 9 .+#9 * I. M +IA I S * M# #A3

*#.+S

*. Take necessary steps to ensure that the clients> interest is protected.9. 'dhere to &-BI $utual Fund 3egulations and guidelines related to selling, distribution and

advertising practices. Be fully conversant with the key provisions of the offer document as well

as the operational re6uirements of various schemes.?. (rovide full and latest information of schemes to investors in the form of offer documents,

performance reports, fact sheets, portfolio disclosures and brochures, and recommend schemes

appropriate for the client>s situation and needs.). #ighlight risk factors of each scheme, avoid misrepresentation and e%aggeration, and urge

investors to go through offer documentsGkey information memorandum before deciding to

make investments.=. /isclose all material information related to the schemesGplans while canvassing for business.+. 'bstain from indicating or assuring returns in any type of scheme, unless the offer document is

e%plicit in this regard.. $aintain necessary infrastructure to support the '$Cs in maintaining high service standards

to investors, and ensure that critical operations such as forwarding forms and che6ues to

'$CsGregistrars andD. /ispatch of statement of account and redemption che6ues to investors are done within the time

frame prescribed in the offer document and &-BI $utual Fund 3egulations.. 'void colluding with clients in faulty business practices such as bouncing che6ues, wrong

claiming of dividendGredemption che6ues, etc.*7. 'void commission driven malpractices such as

a! recommending inappropriate products solely because the intermediary is getting higher

commissions there from.

b! -ncouraging over transacting and churning of mutual fund investments to earn higher

commissions, even if they mean higher transaction costs and ta% for investors.**. 'void making negative statements about any '$C or scheme and ensure that comparisons if

any, are made with similar and comparable products.*9. -nsure that all investor related statutory communications such as changes in fundamental

attributes, e%itGentry load, e%it options, and other material aspects! are sent to investors reliably

and on time.



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> Unit h4l:e6? ea6n :i5i:en:? 4n 8utual ;un:?, In5e?t46? get 7a@ital gain? 4n 8utual ;un:?. I; the ;un:?ell? ?e7u6itie? that ha5e a@@6e7iate: in 5alue, it ea6n?7a@ital gain?. "4?t ;un:? :i?t6ibute the?e 7a@ital gain?al?4 t4 in5e?t46?

9a?ital &ai s

P o i t t o P o i t2 e t u " s> Retu6n? a6e

7 a l 7 u la t e : b97 4 n? i : e 6 ing t heN A ' ? a t t " 4? t 7 4 8 8 4n8 e t h 4 : t 4in te6@6et thei n 5e ? t 8 e n t@ e 6 ; 4 6 8 a n 7 e

2 o l li $ 2 e t u "

> R4l ling 6e tu6n?8 e a ? u 6e t h e74n? i ? ten79 4 ; t he6e tu6n? 4 ; the;un : ?

> Re tu 6n ? a 6e7a l7u la t e : 4n a74n t i nu4u? ba ? i ?;46 ea7h : eBn e :in te65a l

@ I 2 2

> *IRR i ? an e 7e l7a l7ula t i4n8 e th4 : s interest and suitability to their

financial needs is paramount, and that e%tra commission or incentive earned should never form

the basis for recommending a scheme to the client.*=. Intermediaries will not rebate commission back to investors and avoid attracting clients

through temptation of rebateGgifts etc.*+. ' focus on financial planning and advisory services ensures correct selling, and also reduces

the trend towards investors asking for pass back of commission.

Returns in Mutual 1unds

3eturns are the key indicators of the investment performance in mutual fund and are calculated

from the historical N'Hs. By comparing returns, the investor will get the fair idea about the fund

whether it is suitable for achieving his financial goals

ypes o Returns in Mutual 1unds

*al&ulating Returns in Mutual 1unds



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S y s t e m a t i %

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S y s t e m a t i %

0 " a s ! e " P l a s

> T h 6 4 u g h % T P ? 9 4 u 7 a n t 6 a n ? ; e 6 B A e : a 8 4 u n t ? 4 ;

8 4 n e 9 a t 6 e g u l a 6 i n t e 6 5 a l ? C 8 4 n t h l 9 4 6 D u a 6 t e 6 l 9 E ; 6 4 8 4 n e ? 7 h e 8 e t 4 a n 4 t h e 6

Risk in Mutual 1unds

*. Investments in shares, debentures and deposits are not always risk4free.

9. ' very important risk involved in mutual fund investments is the market risk . 2henthe market is in doldrums, most of the e6uity funds will also e%perience a downturn

?. &ome of the other risks include Industry risk, Credit 3isk, Inflation risk, Interest rate

risk, Fund $anager 3isk, Country risk, Currency 3isk, etc.

ays to in-est in redeem rom Mutual 1unds

&ystematic Investment (lan &I(! is an investment techni6ue whereby the investor invests a fi%ed

sum of money at regular intervals, say once a month or once a 6uarter.

By investing through &I(, you end up !uying more units w$en t$e pri&e is low and ewer units

when the pri&e is $ig$ . #owever over a period of time these market fluctuations are generally

averaged and the average cost of your investment is often reduced.



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Why Systematic Investment Plan (SIP)?

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.o eed to time thema"/et

"a e 94u6 be?t atte8@t t4 ti8ethe 8a6 et

A e"a$es out %ost?e" u it

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?7, 97*). The returns drop drastically if you missed the *7, 97, ?7 and )7 best days. ' prudent

investor is one who always remains invested for the long term and allows his money to

compound.

Invest through -6uity $utual Funds and en"oy the benefits of compounding along withdiversification and professional management.

4ntrodu&tion to ?'uity Linked Sa-ings S&$eme (?LSS)

-6uity inked &avings &cheme - &&! is a type of mutual fund scheme.


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a: edu&tion under Se&tion C*DD

's per &ection D7C and sub"ect to provisions of the Income4ta% 'ct, * +*, an individualG#:F is

entitled to a deduction from


26/48

long4term capital gains provided for in section *7 ?D! of the 'ct, discussed elsewhere in

this &tatement!. &uch gains would be calculated without inde%ation of cost of ac6uisition.

&hort4term capital gains would be ta%ed at ?78 plus applicable surcharge, education

access and secondary and higher education cess! sub"ect to the concessional rate of ta%

provided for in &ection ***' of the 'ct, discussed elsewhere in this &tatement!.). 's per &ection ***' of the 'ct, short4term capital gains on sale of units of an e6uity4

oriented fund, where such transaction of sale is chargeable to &TT, shall be sub"ect to ta% at

a rate of *= per cent plus applicable surcharge, education cess and secondary and higher

education cess!.

Exemption of capital gain from income tax

•

's per &ection *7 ?D! of the 'ct, any long4term capital gains arising from the sale of unitsof an e6uity4oriented fund where such transaction of sale is chargeable to &TT, shall be

e%empt from ta%.• Income by way of long term capital gain of a company shall be taken into account in

computing the Book profit and income4ta% payable under &ection **=PB $inimum

'lternate Ta%!E$'T . The matter is however not free from doubt in case of Corporate

Foreign Institutional Investors.

a: edu&tion at Sour&e'll :nit holders

No income4ta% is deductible at source from income by way of capital gains under the present

provisions of the 'ct in case of residents. #owever, the provisions of section * = of the 'ct may

apply to non4residents other than Foreign Institutional Investors and long4term capital gains

e%empt under section *7 ?D! of the 'ct!.

opi&0 Real ?state

The Indian Parliament recently unanimously cleared the much-delayed Real Estate Bill 2016.

Formally known as the Real Estate (Regulation and Development) Bill 2016 it is

e!"ected to "romote #air "lay in real estate transactions and to ensure timely e!ecution o#

"ro$ects. This will %oth "rotect home-%uyers and &i'e the real estate sector a much needed

%oost. This is e!"ected to re'i'e the sector in#amous #or delays shortcomin&s o'er"ricin& and

worse.

$y is t$e Real ?state Bill FC7 needed

Abhijeet Patil 5 th June, 2015 Page 2)


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1. Buyers holdin& %ack money due to lack o# con#idence in the Indian real estate market.2. Buyers a'oid &ettin& into le&al %attles with de'elo"ers.(. Pro$ects %ein& endlessly delayed and "ossession not &i'en on time.). Builders not com"ensatin& #or delayed "ossession %ut le'yin& "enalties on %uyers #or

delayed "ayments.

*. +r%itrary chan&es in layout "lans and the actual construction turnin& out to %e di##erent#rom the ad'ertised "ro$ect.

6. Land Hoarding: ,oney collected #or one "ro$ect %ein& di'erted to #und other "ro$ects

or %uy di##erent lands. It results in scarcity o# land and hence escalates land "rices.

General oints o! the "ill

1. The %ill will re&ulate %oth commercial and residential real estate "ro$ects.2. It seeks to set u" Real Estate Re&ulatory +uthority RER+ to o'ersee real estate

transactions.(. It will also hel" esta%lish state-le'el RER+s.). It makes re&istration o# real estate "ro$ects and real estate a&ents mandatory.*. It mandates that %uilders u"load details o# all re&istered "ro$ects layout "lans land

status a""ro'als a&reements alon& with details o# real estate a&ents contractors

architect structural en&ineer etc. on the we%site o# the RER+s.

Rules !or Builders# romoters

1 +ll commercial and residential real estate "ro$ects with land o'er *00 s/uare metres or

ha'in& a"artments must %e re&istered with RER+.2 Builders must maintain 0 o# the amount collected #or the "ro$ect in a se"arate

escrow account and use it 345 #or the construction o# the said "ro$ect. 7owe'er

indi'idual state &o'ernments can alter this amount to less than 0 in their "articular

state. Escrow is a tem"orary account held %y a (rd "arty durin& transaction %etween 2

"arties.( Builders need to s"eci#y a time#rame o# the "ro$ect or else they ha'e to "ay "enalties.) It sto"s "romoters #rom chan&in& "lans and desi&n without consent o# two-thirds o# the

consumers.* The Bill de#ines car"et area o# a "ro"erty as 8net usa%le #loor area9 e!cludin& the area

co'ered %y its e!ternal walls under sha#ts %alconies and terraces.6 Builders to %e res"onsi%le #or #i!in& structural de#ects #or * years a#ter trans#errin& the

"ro"erty to a %uyer.

Dispute $ettlements

1. The %ill seeks to esta%lish #ast track dis"ute resolution mechanisms throu&h

ad$udicatin& o##icers and +""ellate Tri%unal.2. It %ars ci'il courts #rom takin& u" real estate matters. 7owe'er consumer courts are

allowed to hear such matters.Abhijeet Patil 5 th June, 2015 Page 2+


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10 Forward 5inka&es: #urniture and #urnishin&s electrical and electronics interior

decoration.11 >reation o# more em"loyment o""ortunities.12 It will hel" achie'e &o'ernment?s am%itious "lan o# 8 Housing !or ,ll "* 2020 9.1( It will hel" cur% %lack money as real estate sector constitutes a%out 11 o# @


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• The uni6ue goals and circumstances of the investor must also be considered. &ome investors

are more risk averse than others.• $utual funds have developed particular techni6ues to optimi5e their portfolio holdings. The

art and science of making decisions about investment mi% and policy, matching investments

to ob"ectives, asset allocation for individuals and institutions, and balancing risk against

performance.

(ortfolio management is all about strengths, weaknesses, opportunities and threats in the choice of

de!t -s. e'uity, domesti& -s. international, growt$ -s. sa ety, and many other tradeoffs

encountered in the attempt to ma%imi5e return at a given appetite for risk.

• (ortfolio management involves maintaining a proper combination of securities which

comprise the investorJs portfolio in a manner that they gi-e ma:imum return wit$minimum risk. This re6uires framing of proper investment policy.

• Investment policy means formation of guidelines for allocation of available funds among

the various types of securities including variation in such proportion under changing

environment. This re6uires proper mi% between different securities in a manner that it can

ma%imi5e the return with minimum risk to the investor.

Broadly speaking investors are those individuals who save money and invest in the market in

order to get return over it. They are not much educated, e%pert and they do not have time tocarry out detailed study. They have their business life, family life as well as social life and the

time left out is very much limited to study for investment purpose. /n t$e ot$er $and

institutional in-estors are &ompanies, mutual unds, !anks and insuran&e &ompany who

have surplus fund which needs to be invested profitably. These investors have time and

resources to carry out detailed research for the purpose of investing.

Major tasks involved with Portfolio Management

• Taking decisions about investment mi% and policy• $atching investments to ob"ectives• 'sset allocation for individuals and institution• Balancing risk against performance

Phases o! Po"t!olio Ma a$eme t

(ortfolio management is a process of many activities that aimed to optimi5ing the investment. Five

phases can be identified in the process


http://en.wikipedia.org/wiki/Risk_aversionhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Risk_aversionhttp://en.wikipedia.org/wiki/Mutual_fund


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• &ecurity 'nalysis.• (ortfolio 'nalysis.• (ortfolio &election.• (ortfolio revision.• (ortfolio evaluation.

Each "hase is essential and the success o# each "hase is de"end on the e##iciency in carryin&

out each "hase.

1' Se%u"ity A alysis

&ecurity analysis is the initial phase of the portfolio management process. There are many types

of securities available in the market including e6uity shares, preference shares, debentures and

bonds. It forms the initial phase of the portfolio management process and involves the evaluation

and analysis of risk return features of individual securities. The basic approach for investing insecurities is to sell the overpriced securities and purchase underpriced securities. The security

analysis comprises of Fundamental 'nalysis and technical 'nalysis.

2' Po"t!olio A alysis:

' portfolio refers to a group of securities that are kept together as an investment. Investors

make investment in various securities to diversify the investment to make it risk averse. ' large

number of portfolios can be created by using the securities from desired set of securities obtainedfrom initial phase of security analysis.

• By selecting the different sets of securities and varying the amount of investments in each

security, various portfolios are designed. 'fter identifying the range of possible portfolios,

the risk4return characteristics are measured and e%pressed 6uantitatively. It involves the

mathematically calculation of return and risk of each portfolio.' Po"t!olio Sele%tio

/uring this phase, portfolio is selected on the basis of input from previous phase (ortfolio

'nalysis. The main target of the portfolio selection is to build a portfolio that offer highest returns

at a given risk. The portfolios that yield good returns at a level of risk are called as efficient

portfolios. The set of efficient portfolios is formed and from this set of efficient portfolios, the

optimal portfolio is chosen for investment. The optimal portfolio is determined in an ob"ective and

disciplined way by using the analytical tools and conceptual framework provided by $arkowit5Js

portfolio theory '



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4' Po"t!olio e isio

'fter selecting the optimal portfolio, investor is re6uired to monitor it constantly to ensure that

the portfolio remains optimal with passage of time. /ue to dynamic changes in the economy and

financial markets, the attractive securities may cease to provide profitable returns.

• These market changes result in new securities that promises high returns at low risks. In

such conditions, investor needs to do portfolio revision by buying new securities and selling

the e%isting securities. 's a result of portfolio revision, the mi% and proportion of securities

in the portfolio changes.

5' Po"t!olio aluatio

This phase involves the regular analysis and assessment of portfolio performances in terms of

risk and returns over a period of time. /uring this phase, the returns are measured 6uantitatively

along with risk born over a period of time by a portfolio. The performance of the portfolio is

compared with the ob"ective norms. $oreover, this procedure assists in identifying the weaknesses

in the investment processes.

.eed o! Po"t!olio a d Po"t!olio Ma a$eme tThe portfolio is needed for the selections of optimal, portfolio by rational risk averse

investors i.e. by investors who attempt to ma%imi5e their e%pected return consistent with

individually acceptable portfolio risk. The portfolio is essential for portfolio construction. The

portfolio construction refers to the allocation of funds among a variety of financial assets open for

investments. (ortfolio concerns itself with the principles governing such allocation.

The ob"ective of the portfolio theory is to elaborate the principles in which the risk can be

minimi5ed, sub"ect to the desired level of return on the portfolio or ma%imi5e the return, sub"ect tothe constraints of a tolerable level of risk.

• The need for portfolio management arises due to the ob"ectives of the investors. The

emphasis of portfolio management varies from investors to investor. &ome want income,

some capital gains and some combination of both. #owever, the portfolio analysis enables

the investors to identify the potential securities, which will ma%imi5e the following

ob"ectives



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&ecurities of principal, stability of income, capital growth, marketability, li6uidity and

diversification. Thus the basic need of portfolio is to ma%imi5e yield and minimi5e yield and

minimi5e the risk. The other ancillary needs are as follows

*. (roviding regular or stable income.9. Creating safety of investments and capital appreciation.?. (roviding marketability and li6uidity.). $inimi5ing the ta% liability

& A3S * P * 3I MA.A& M .

7. ;alue Ma:imiIation

'llocate resources to ma%imi5e the value of the portfolio via a number of key ob"ectivessuch as profitability, 3 I, and acceptable risk. ' variety of methods are used to achieve this

ma%imi5ation goal, ranging from financial methods to scoring models.

F. Balan&e

'chieve a desired balance of pro"ects via a number of parameters risk versus return1 short4term

versus long4term1 and across various markets, business arenas and technologies. Typical methods

used to reveal balance include bubble diagrams, histograms and pie charts.

J. Business Strategy Alignment

-nsure that the portfolio of pro"ects reflects the companyJs product innovation strategy and

that the breakdown of spending aligns with the companyJs strategic priorities. The three main

approaches are top4down strategic buckets!1 bottom4up effective gate keeping and decision

criteria! and top4down and bottom4up strategic check!.

K. #ipeline Balan&e

btain the right number of pro"ects to achieve the best balance between the pipeline

resource demands and the resources available. The goal is to avoid pipeline gridlock too many

pro"ects with too few resources! at any given time. ' typical approach is to use a rank ordered

priority list or a resource supply and demand assessment.

9. Su i&ien&y



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-nsure the revenue or profit! goals set out in the product innovation strategy are achievable

given the pro"ects currently underway. Typically this is conducted via a financial analysis of the

pipelineJs potential future value.

ASP 9 S * P * 3I MA.A& M .Basically, portfolio management involves

*. ' proper investment decision4making of what to buy and sell9. (roper money management in terms of investment in a basket of assets to satisfy the asset

preferences of the investors.?. 3educe the risk and increase the returns.). Balancing fi%ed interest securities against e6uities.=. Balancing high dividend payment companies against high earning growth companies as

re6uired.+. Finding the income or growth portfolio as re6uired.

. Balancing transaction costs against capital gains from rapid switching.D. Balancing income ta% payable against capital gains ta%.

. 3etaining some li6uidity to sei5e upon bargains.

&eneBt? 4; P"%

7. Ad-i&e0 A client gets investment advice and strategies from e%pert Fund $anagers.

'n Investment 3elationship $anager will ensure that you receive all the services

related to your investment needs. The personali5ed services also translates into 5ero

paper work and all your financial statements will be e4mailed

F. Management0 An e%perienced team of portfolio managers ensure your portfolio istracked, monitored and optimi5ed at all times.

J. *ontinuous Monitoring0 The clients are informed about your investment decisions.

' dedicated website and a customer services desk allow you to keep a tab on

portfolioJs performance.K. iming0 (ortfolio managers preserve clientJs money on time. (ortfolio management

services ($&! help in allocating right amount money in right type of saving plan at

right time. This means portfolio managers analy5es the market and provides his

e%pert advice to the client regarding the amount he should take out at the time of big

Abhijeet Patil 5 th June, 2015 Page $

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investment. $utual fund managers need to work according to the regulations set up by

financial authorities of their country. ike in India, they have to follow rules set up by &-BI

&e e"al es?o sibilities o! Po"t!olio Ma a$e"

Following are some of the responsibilities of a (ortfolio $anager

*. The portfolio manager shall act in a fiduciary capacity with regard to the client>s funds.9. The portfolio manager shall transact the securities within the limitations placed by the

client.?. The portfolio manager shall not derive any direct or indirect benefit out of the client>s funds

or securities.). The portfolio manager shall not borrow funds or securities on behalf of the client.=. (ortfolio manager shall ensure proper and timely handling of complaints from his clients

and take appropriate action immediately. The portfolio manager shall not lend securities

held on behalf of clients to a third person e%cept as provided under these regulations.

Po"t!olio Ma a$e"

(ortfolio $anager is a professional who manages the portfolio of an investor with the

ob"ective of profitability, growth and risk minimi5ation. 'ccording to &-BI, 'ny person who

pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the

client the management or administration of a portfolio of securities or the funds of the client, as the

case may be is a portfolio manager.

#e is e%pected to manage the investorJs assets prudently and choose particular investment

avenues appropriate for particular times aiming at ma%imi5ation of profit. #e tracks and monitors

all your investments, cash flow and assets, through live price updates. The manager has to balance

the parameters which defines a good investment i.e. security, li6uidity and return. The goal is to

obtain the highest return for the client of the managed portfolio.

There are two types of portfolio manager known as /iscretionary (ortfolio $anager and

Non4/iscretionary (ortfolio $anager. /iscretionary portfolio manager is the one who individually

and independently manages the funds of each client in accordance with the needs of the client and

non4discretionary portfolio manager is the one who manages the funds in accordance with the

directions of the client.

Abhijeet Patil 5 th June, 2015 Page )


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P"oje%t I !o"matio = imeli e

Project Information

#roje&t itle%A&'uisition o ealt$ *lients and +nderstanding o #ort olio Management, Mutual unds "Real estate

#roje&t S&ope0'c6uiring clients by understanding their investment pattern, providing them value services by

advising them different financial investment products.

A!stra&t0

The basic idea behind our internship pro"ect was locate the #NI and ultra #NI investors

across (une, understanding their financial needs pattern of investment, risk appetite and advising

them products based on that with the help of our senior 3elationship managers. 'dvisory solutions

would be provided to clients that too without charging anything from them

Abhijeet Patil 5 th June, 2015 Page +


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6 e e / 1 4 - C t h A ? " i l

> e < e 6 e a l ? 4 t a u g h t a ? 7 6 i @ t a 7 7 4 6 : i n g t 4 < h i 7 h < e h a : t 4 @ i t 7 h i n < h i l e : 4 i n g ? a l e ? 7 a l l ? . e < e 6 e t 4 l : t h a t 4 n l 9 1 0 J 4 ; t h e t 4 t a l 7 a l l ? t h a t < e 8 a e u ? u a l l 9 e n : ? i n a

8 e e t i n g . D E M o t h l y M a " / e t e i e F ' I t e n 7 4 8 @ a ? ? e ? t h e h i ? t 4 6 i 7 a l h a @ @ e n i n g ? i n a l l 8 a j 4 6

B n a n 7 i a l 8 a 6 e t ? a 6 4 u n : t h e < 4 6 l : a n : i t ? i 8 @ a 7 t 4 n I n : i a n B n a n 7 i a l 8 a 6 e t ? . " a g a G i n e a l ? 4 @ 6 e : i 7 t ? t h e : i 6 e 7 t i 4 n i n < h i 7 h t h e 8 a 6 e t < a ? ? u @ @ 4 ? e : t 4 8 4 5 e

> T h e 6 e < a ? a ? e ? ? i 4 n 4 n ? e " a t i o s o ! t h e % o m ? a y . e < e 6 e t 4 l : h 4 < < e a 6 e t 4 7 a t e 6 t 4 t h e 7 l i e n t ? n e e : ? a n : 8 a e ? u 6 e e 5 e 6 9 t h i n g i ? h a n : l e : ? 8 4 4 t h l 9 , C 4 l : C a l l i n % t a 6 t e : t 4 a u i 6 e 7 l i e n t ?

e e 2 1 1 - 1 G t h

A ? " i l

> < e h a : a ? e ? ? i 4 n o M u t u a l * u d s . e < e 6 e t 4 l : a b 4 u t t h e : i K e 6 e n t a ? @ e 7 t ? a n : < h 9 a 6 e t h e 9 ? 4 @ 4 @ u l a 6 a n : i 8 @ 4 6 t a n t .

D S y s t e m a t i % I e s t m e t P l a ( S I P ) i ? a n i n 5 e ? t 8 e n t t e 7 h n i u e < h e 6 e b 9 t h e i n 5 e ? t 4 6 i n 5 e ? t ? a B e : ? u 8 4 ; 8 4 n e 9 a t 6 e g u l a 6 i n t e 6 5 a l ? , > e h a : a ? e ? ? i 4 n 4 n I n ? u 6 a n 7 e . e < e 6 e t 4 l : t h e t 9 @ e ? 4 ; i t , @ 6 4 : u 7 t ? , @ 6 i n 7 i @ l e ? , a n :

7 4 n 7 e @ t ? < h i 7 h t h e 9 ? e l l i n t h e 7 4 8 @ a n 9 .

" d 6 e e / ( 1 7 t h t o 2 2 d A ? " i l )

> < e : i : 7 a l l i n g b a ? e : 4 n : a t a @ 6 4 5 i : e : t 4 u ? i . e . P u n e & u ? i n e ? ? " e n . T a 6 g e t i n g n e < 7 u ? t 4 8 e 6 ? 4 6 7 l i e n t ? b a ? e : 4 n t h e i 6 i n t e 6 e ? t t 4 < a 6 : ? i n 5 e ? t 8 e n t a n : t h e i 6 6 i ? a @ @ e t i t e .

> < e h a : a ? e ? ? i 4 n o e a l s t a t e < h e 6 e < e g 4 t t 4 n 4 < a b 4 u t : i K e 6 e n t i n : ? 4 ; @ 6 4 @ e 6 t i e ? l i e u n : e 6 7 4 n ? t 6 u 7 t i 4 n ? i t e ? , 6 e ? i : e n t i a l ? i t e a n : 7 4 8 8 e 6 7 i a l ? i t e 4 ; 6 e a l e ? t a t e < h e 6 e 4 n e 7 a n i n 5 e ? t a n : g 6 4 < t h e i 6 i n 5 e ? t 8 e n t .

D 9 a " ? e t ( A " e a i s i d e % o m ? o u d ) B u i l d u ? ( a l l s ? l u s 9 a " ? e t A " e a ) S u ? e " b u i l d u ? A " e a ( 9 a " ? a " / i $ H d " i e a y H $ a " d e ) a l s o * l o o " S ? a % e I d e : ( * S I E , % i " % l e " a t e < h i 7 h i ? ; a i 6 8 a 6 e t 5 a l u e 4 ; @ 6 4 @ e 6 t 9 a 7 7 4 6 : i n g t 4 8 a 6 e t : e 8 a n : a n : ? u @ @ l 9 7 4 n : i t i 4 n

4 t h 6 e e / ( 2 5 t h t o 0 t h

A ? " i l )

> < e h a : a ? e ? ? i 4 n 4 n l i ! e i s u " a % e ' ! i ; e I n ? u 6 a n 7 e 7 a n b e t e 6 8 e : a ? a n a g 6 e e 8 e n t b e t < e e n t h e @ 4 l i 7 9 4 < n e 6 a n : t h e i n ? u 6 e 6 , < h e 6 e t h e i n ? u 6 e 6 ; 4 6 a 7 4 n ? i : e 6 a t i 4 n a g 6 e e ? t 4 @ a 9 a ? u 8 4 ; 8 4 n e 9 u @ 4 n t h e 4 7 7 u 6 6 e n 7 e 4 ; t h e i n ? u 6 e : i n : i 5 i : u a l L ? 4 6 i n : i 5 i : u a l ? L : e a t h 4 6 4 t h e 6 e 5 e n t , ? u 7 h a ? t e 6 8 i n a l i l l n e ? ? , 7 6 i t i 7 a l i l l n e ? ? 4 6 8 a t u 6 i t 9 4 ; t h e @ 4 l i 7 9 ' D 8 a " i o u s a : ? l a b ? a n : 4 n b a ? i ? 4 ; a g e a n : t 4 t a l i n 7 4 8 e 4 ; a @ e 6 ? 4 n . T a

: e : u 7 t i 4 n i ? : 4 n e 4 n t h e b a ? i ? 4 ; ? l a b ? @ 6 4 5 i : e : b e l 4 < i ? : e t a i l e : i n ; 4 6 8 a t i 4 n a b 4 u t t h e ? a 8 e

5 t h = G t h 6 e e / ( 2 d

7 t h M a y J t h 1 t h M a y ) )

> I n t h i ? @ a 6 t i 7 u l a 6 < e e < e < e 6 e i n t 6 4 : u 7 e : t 4 R e t u r n s , R i s k s & I n v e s t i n g i n M u t u a l F u n d s a l ? 4 5 a 6 i 4 u ? ! " F r e e # o n d s < h i 7 h g i 5 e ? t h e D u a l & e n e B t 4 ; F i e : R e t u 6 n a n : T a F 6 e e I n 7 4 8 e a l ? 4 e @ l a i n e : i n : e t a i l .

> R e t u 6 n ? a 6 e t h e e 9 i n : i 7 a t 4 6 ? 4 ; t h e i n 5 e ? t 8 e n t @ e 6 ; 4 6 8 a n 7 e i n 8 u t u a l ; u n : a n : a 6 e 7 a l 7 u l a t e : ; 6 4 8 t h e h i ? t 4 6 i 7 a l N A ' ? . & 9 7 4 8 @ a 6 i n g 6 e t u 6 n ? , t h e i n 5 e ? t 4 6 < i l l g e t t h e ; a i 6 i : e a a b 4 u t t h e ; u n : < h e t h e 6 i t i ? ? u i t a b l e ; 4 6 a 7 h i e 5 i n g h i ? B n a n 7 i a l g 4 a l ?

7 t h = C t h 6 e e / ( 1 G t h

- 2 1 s t - 2 " d - 2 7 t h M a y )

> D u 6 i n g t h i ? < e e < e < e 6 e b 6 i e ; e : a b 4 u t < h a t i s s e % u " i t y l e d i $ a d b o " " o i $ % o % e ? t 3

i t ? 8 a 6 e t @ a 6 t i 7 i @ a n t ? . " e 7 h a n i ? 8 a n : ; e a t u 6 e ? < e 6 e e @ l a i n e : l a t e 6 4 n . O n 4 t h e 6 : a 9 ? < e < e 6 e @ 6 4 5 i : e : D 4 7 t 4 6 ? : a t a < h 4 a 6 e g 9 n e 7 4 l 4 g i ? t a n : ? u 6 g e 4 n a n : @ h 9 ? i 7 i a n 7 a n b e a @ 4 t e n t i a l

i n 5 e ? t 4 6 ? i ; @ i t 7 h e : @ 6 4 @ e 6 l 9 . > D e ? 7 6 i b e ? t h e 8 a 6 e t @ 6 a 7 t i 7 e b 9 < h i 7 h , ! o " a ! e e s e % u " i t i e s a " e t " a s ! e " " e d t e m ? o " a " i l y

! " o m o e ? a " t y , t h e l e n : e 6 , t 4 a n 4 t h e 6 , t h e b 4 6 6 4 < e 6 . D h e l a s t e e / s < e 6 e a l l a b 4 u t ; 4 l l 4 < u @ ? a n : ? e t t i n g 8 e e t i n g ? ; 4 6 t h e i n t e 6 e ? t e : @ e 4 @ l e < i t h

4 u 6 R e l a t i 4 n ? h i @ " a n a g e 6 .

#roje&t timeline



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"ai i $/uring the first few weeks of our internship, we were trained about the financial products and

services given by our company.

There was an introductory session on which instruments they deal in the company. It was

important to know them so that we can understand the working and know what e%actly and

basically we are going to do. 'fter that we had a session on 3eal -state. 2e got to know about it as

a whole in the country, plus the facts about (une city rates, etc.!

2e had a session on -6uity $arket and e6uity shares. 2e got to know how trading is done

basically the process!, the types of accounts, prices, trading and other important and interestingknowledge. 2e also had a session on derivatives. Ne%t we had a session on $utual Funds. 2e were

told about the different aspects and why are they so popular and important. &ome points include

&I(, hybrid market, N-B, etc.

There was a session on perations of the company. 2e were told how we are to cater to the

clientsJ needs and make sure everything is handled smoothly. 2e were shown some customer forms

and made aware of certain technicalities.

Ne%t we had a session on &ales. 2e got to know different aspects of it and how to pitch to a

customer, what he e%pects and what we are e%pected to do. 2e had a session on Insurance. 2e

were told the types of it, products, principles, and concepts which they sell in the company.

Further we had sessions on their products, K#ealth InsuranceJ and K oan under mortgageJ.

2e got to know about the benefits of health insurance and how good that particular product has

been, being reputed among the few old and best health insurance products in India.

The following days we got briefed in stages, what would be our upcoming tasksQ 2e were

grouped as teams of ) and coordinated among each other as there were interns from another college

as well. 'll these sessions were 6uite interesting and they gave us a basic insight into the

instruments and a proper understanding of them.



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A%ti ities

Cold Calling: It is a techni6ue whereby a salesperson contacts individuals who have not previously

e%pressed an interest in the products or services that are being offered. It typically refers to phone

calls but can also entail drop4in visits such as with door to door sales people. 2e developed a sales

pitch for our calling and different ones for corporates as well as others, like doctors and chartered

accountants.

• Cold calling is soliciting potential customers #NI or :ltra #NI Clients! who were not

e%pecting to speak with you. The term >cold> refers to the fact that you haven>t laid anygroundwork for your call.

2e did a lot of cold calling and arranged many wealth calls. ur senior relationship

managers accompanied us in the call and helped us understand the client re6uirement of

investment. Then we took the follow up with the clients and tried to fulfil their re6uirements either

by mailing them the details or by personally meeting them with our 3$s. 2e have always tried to

maintain relationship with the clients by advising them in managing their portfolio so that they can

get the better returns from their investment patterns. 2e got the task of calling possible clients for the company and making aware the products and benefits to them.

apping all !"I#s of I Professionals in P$ne

*. The IT professionals which are #NI themselves earning more than *+ akhs per annum

targeting those individuals by cold calling was our strategy calling them and advise them

about various ta% benefits can give us more and more idea about the Ta% schemes and

saving and benefit of saving at early ages.9. Through this platform we would get their clients and they would share profits from the

services we distribute to their clients, whether directly or indirectly. ur "ob was also to

provide them information regarding the products and services that we have and guide them

in the whole process.

apping all doctors and %&W o'ners of P$ne 2e started calling /octors and B$2 owners and

Businessman who all are having very got wealth and can ready to invest as they have lots of money

in their bank account but doesnJt know how to invest properly.


41/48

2e were teamed up with other interns and together we called hundreds of them. But we got very

few responses as most were not available and others were not interested. ut of the few responses

we got, we called them again to set up meetings with our relationship managers. 2e also mailed

them the terms and conditions and other documents regarding the whole proposition and the

benefits.

Corporates

2e had also made a list of corporates whom we had to call and make them aware about wealth

management in our company. 2e decided that calling them is not going to work, so we visited

some of the companies ourselves to see if we could tell them about our financial services. &ome of

the companies we visited are given in the anne%ure.

ace to face Interaction 'ith ne' people:

*. /uring meeting investors always eager to know which mutual fund is doing good and which

having good maturity period and returns as best possible return and less riskier fund.9. $any IT professionals want only &I( of minimum amount starting form 3s. *7777 and thus

can invest a particular amount each month.?. /uring face to face interaction investors always want more information regarding product

and as policy of the company we are not providing anything which is false so we as

working in 'ditya Birla believe in &traight Talk.

Abhijeet Patil 5 th June, 2015 Page $1


42/48


43/48

9 .93#SI .The pro"ect is %A&'uisition o ealt$ *lients and +nderstanding o #ort olio

Management, Mutual unds " Real estate &o to ac6uire clients whose net worth is more and

can be interested in review of their portfolio and ready to invest in e6uity and debt market. Findings

have been obtained about the Indian investors and Indian investment organi5ation. $ost of the

Indians are aware about high risk and high return. &o it is necessary that government will

encourage to investors to invest in $arket.

arge census are not well aware of this financial instruments, they only known with the

term mutual 0 share are something which e%it in the market. Traditional person take it as a

speculation. ack of awareness is declining the market of such financial product so from my point

of view proper mechanism should be adopted to make learn this census about the product and make

him able to understand the market of such product so that they also penetrate.

&ome important findings are that the #NI people want to invest in some safe and risk free

mutual funds and only few #NI are ready to share their portfolios for second opinion. Investmentrelated organi5ation should be transparent and they should be less fle%ible.


44/48

9 MM .+A I .&ince the pro"ect is related to assess the risk profile of investor and how to increase the

market potential of L'/ITR' BI3 ' $ N-R T/M. &o every precise aspect like risk taking,

influencing factors of investment rgani5ation government role, age, se% income factors have been

analy5ed.

&ince the problem is related to investors profiles. $arket potential of L'/ITR' BI3 '

$ N-R T/M therefore some 3ecommendations are being putted for improvement.

• Investors especially lower and middle income group should invest some percent of their

income in stock market or mutual fund.• Investment related organi5ation should be transparent and they should guide to see the

mentality of investors like attacking investors or defensive investors•


45/48

A e u"e4 pro essional s data (&old &alling0 sample)

Abhijeet Patil 5 th June, 2015 Page $5


46/48

Abhijeet Patil 5 th June, 2015 Page $)

.ame Mobile Kuali


47/48

&imilarly, we collected data of /octors sample!

.ame Add"ess Ph umbe" mail ides?o s

eD6.-ul a6ni%a:anan:

& )0$ -a@ilAbhijeetDahanu a6C4l4n9 Pune$1102

5005 $2) H))$0)2)$

:6? ana: 9ah44.74.u

N4tInte6e?te:

D6.-ul a6ni%an:h9a

& )0$ -a@ilAbhijeetDahanu a6C4l4n9 Pune$1102

5005 $2) H))$0)2)$

:6? ana: 9ah44.74.u

N4tInte6e?te:

D6.!un a:%ubha?

hIn:6abhan

!un a:/4?@ital, AH2in:6a @a6

Pune naga6R4a:,(e6


48/48

%anja9

D6.Patil%a7hin&aji6a4

C 501, Run

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