Investment Strategy _ Portfolio Management by Nirmalpandya

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Prepared for the partial fulfillment of the continuous evaluation of the summer internship project of semester III MBA (General) class of 2009



I would like to express my gratitude to almighty God without whose blessing I wouldn’t have been able to take initial step in this research. Words are insufficient to express my gratitude to Mr. Nitish Dipankar ,my industry guide for his guidance and support in preparing this project. I would also like to thank my faculty guide whose support and suggestions has helped me to complete this project successfully. My sincere thanks to all those people who gave me their valuable time and input by filling my questionnaires. Finally I would like to thank my parents, family members and friends for their support.



I hereby declare that the work presented in the project report, titled ‘Investment Strategies and Portfolio Management’ was carried out by me as a part of MBA curriculum during 8 weeks summer training program in the 3rd semester. The report is an authentic record of my work carried out under the guidance of Mr. Nitish Dipankar in Standard Chartered Bank. It is further declared that the report has not been submitted earlier for any other degree or diploma.


India is a developing country and we all know that banking sector plays a very important role. In development with the increasing use of banking and finance in every field, new trends in their technology and modern use are being evolved day to day to meet the requirements. Infact “BANKING” has become the need of today. The purpose of PROJECT REPORT is to expose the students in the market and in the field of banking, finance and investments and to develop the ability in the students to deal with all types of customers. Preparing project report in the summer vacations and under going the summer training is the indispensable part of the college period. It provides the opportunity to review what we have gained in the training period and also provides the way to convey the knowledge and ideas to others. The present project provides the information on the “STANDARD CHARTERED BANK”. Learning is not possible in solitude and has to have the support and able guidance of some people around us in various roles and capacities. The satisfaction and euphoria that accompanies the successful completion of any task would be incomplete without the mention of the people who made it possible because success is the epitome of hard work, undeterred missionary zeal, fast determination, and consideration. Therefore, we consider it a pleasant duty to express our heartiest appreciation, gratitude, and indebtedness to our project guide Mr. Nitish Dipankar for his keen interest, sincere extortion, invaluable and pain taking excellent guidance, continuous calm endurance, inspiration and encouragement during each phase of the present project.



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


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1.1History of Banking Industry
1.2 History of Standard Chartered Bank 1.3 Introduction of the topic

3.1 Sources of data collection 3.2 Products of Standard Chartered -Savings Account - ULIP -Mutual Funds





1.1 Overview of the Banking System

Until the 1950s, banking in India was carried on by a large number of banks, many of them quite small. India is still primarily an agricultural country, with an economic and social structure based largely on the village. The integration of banking has been impeded by poor communications, by illiteracy, and by the barriers of language and caste. Modern banking in India is said to be developed during the British era. In the first half of the 19th century, the British East India Company established three banks – the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. But in the course of time these three banks were amalgamated to a new bank called Imperial Bank and later it was taken over by the State Bank of India in 1955. Allahabad Bank was the first fully Indian owned bank. The Reserve Bank of India was established in 1935 followed by other banks like Punjab National Bank, Bank of India, Canara Bank and Indian Bank. In 1969, 14 major banks were nationalized and in 1980, 6 major private sector banks were taken over by the government. Today, commercial banking system in India is divided into following categories.

Central Bank The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a central board (headed by a Governor) appointed by the Central Government. It issues guidelines


for the functioning of all banks operating within the country. Public Sector Banks a. State Bank of India and its associate banks called the State Bank Group b. 19 nationalized banks c. Regional rural banks mainly sponsored by public sector banks

Private Sector Banks a. b. c. d. e. Old generation private banks New generation private banks Foreign banks operating in India Scheduled co-operative banks Non-scheduled banks

Co-operative Sector The co-operative sector is very much useful for rural people. The cooperative banking sector is divided into the following categories. a. State co-operative Banks b. Central co-operative banks c. Primary Agriculture Credit Societies

Development Banks/Financial Institutions
• • • •


• • • • •

NABARD Export-Import Bank of India National Housing Bank Small Industries Development Bank of India North Eastern Development Finance Corporation

Banking in India is so convenient and hassle free that one (individual, groups or whatever the case may be) can easily process transactions as and when required. The most common services offered by banks in India are as follow:





Bank accounts: It is the most common service of the banking sector. An individual can open a bank account which can be either savings, current or term deposits. Loans: You can approach all banks for different kinds of loans. It can be a home loan, car loan, personal loan, loan against shares and educational loans. Money Transfer: Banks can transfer money from one corner of the globe to the other by issuing demand drafts, money orders or cheques. Credit and debit cards: Most banks offer credit cards to their customers which can be used to purchase products and services, or borrow money. Lockers: Most banks have safe deposit lockers which can be used by the customers for storing valuables, like important documents or jewellery.

Banking service for NRIs: Non Resident Indians or NRIs can open accounts in almost all Indian banks. The three types of accounts that NRIs can open are:

o o o

Non-Resident (Ordinary) Account - NRO A/c Non-Resident (External) Rupee Account - NRE A/c Non-Resident (Foreign Currency) Account - FCNR A/c

Reserve Bank of India (RBI) The central bank of the country is the Reserve Bank of India (RBI). Reserve Bank of India was nationalised in the year 1949. The body of the central bank consists of the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. The need for bank is:
• • •

To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage.

Functions of Reserve Bank of India The Reserve Bank of India performs all the important functions of a central bank. Bank of Issue The Bank has the sole right to issue bank notes of all denominations. The distribution of rupee notes and coins and small coins all over the country is undertaken by it as agent of the Government. The Reserve

Bank has a separate Issue Department which is concerned with the issue of currency notes. The Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra. 200 crores, of which at least Rs. 115 crores should be in gold. The system as it exists today is known as the minimum reserve system. Banker to Government The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir on all monetary and banking matters. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. It makes loans and advances to the States and local authorities Bankers' Bank and Lender of the Last Resort The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 8.25% per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India. The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to

come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort. Controller of Credit The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. It can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. The Reserve Bank of India is armed with many more powers to control the Indian money market. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank. The Reserve Bank of India, therefore, has the following powers: (a) It holds the cash reserves of all the scheduled banks. (b) It controls the credit operations of banks through quantitative and qualitative controls. (c) It controls the banking system through the system of licensing, inspection and calling for information. (d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks. Supervisory functions In addition to its traditional central banking functions, the Reserve bank has certain non-monetary functions of the nature of supervision

of banks and promotion of sound banking in India. RBI has wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation Promotional functions The Bank performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialised financing agencies. Accordingly, the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilise savings, and to provide industrial finance as well as agricultural finance. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers.


1.2 History of Standard Chartered The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa. The Chartered Bank • Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853 • Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859 • Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama • Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869, and the extension of the telegraph to China in 1871 • In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank’s Cyprus Branches. This established a presence in the Gulf The Standard Bank • Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, South Africa, in January 1863

• Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885 • Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices • In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales. From the early 90s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking, and on the provision of treasury services – areas in which the Group had particular strength and expertise. In the new millennium we acquired Grindlays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000.


Standard Chartered – leading the way Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalization. Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. As one of the world's most international banks, Standard Chartered employs almost 60,000 people, representing over 100 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East. Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions.


Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance. Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators.

Establishment of Standard Chartered Bank around the world Country United Kingdom Year Established Country 1853 Australia Mexico, Oman Peru Jersey Brazil Venezuela Falkland Islands, Macau Taiwan Cameroon Year Established 1964 1968 1973 1978 1979 1980 1983 1985 1986

China, India, Sri 1858 Lanka Hong Kong, 1859 Singapore Indonesia, 1863 Pakistan Philippines 1872 Malaysia 1875 Japan Zimbabwe The Gambia, Sierra Leone, Thailand Ghana Botswana USA Bangladesh 1880 1892 1894 1896 1897 1902 1905

Nepal 1987 Vietnam 1990 Cambodia, South 1992 Africa Iran 1993

Zambia Kenya Uganda Tanzania Bahrain Jordan Korea Qatar

1906 1911 1912 1917 1920 1925 1929 1950

Colombia Laos, Argentina Nigeria Lebanon Cote d’Ivoire Mauritius Turkey Afghanistan

1995 1996 1999 2000 2001 2002 2003 2004

Recent strategic alliances and acquisitions 2005 and 2006 were historic years for us as we achieved several milestones with a number of strategic alliances and acquisitions that will extend our customer or geographic reach and broaden our product range.
• • • • • • • •


We completed, rebranded and successfully integrated SC First Bank in Korea, which to date is the biggest acquisition in our history. We completed full integration between Standard Chartered Bank Thailand and Standard Chartered Nakornthon Bank in October. We formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East. We acquired stakes in ACB Vietnam and Travelex. We acquired the business operations of American Express Bank in Bangladesh. We acquired a stake in Bohai Bank in Tianjin, China, making us the first foreign bank to be allowed a stake in a local bank in China. We acquired a 25% stake in First Africa Group Holdings in June 2006. We acquired an additional 26% stake in Permata Bank through our consortium with PT Astra International, thus giving the consortium a total stake of 89%. We acquired Union Bank in Pakistan in September 2006 and we have successfully rebranded all branches.



We launched a tender offer in the end of 2006 for 100% in Hsinchu International Bank, Taiwan.

1. Savings Account Average Quarterly Balance a) aXcess This account i)Free Unlimited Rs. 10,000 plus account provides Visa ATM unparalleled transactions. access to your money through a ii) FREE Doorstep variety of Banking. channels. iii) International Debit Card iv) Phone Banking v) Online Banking b) No Frills It is designed to i)Free cheque Rs. 250 Account meet you basic deposit at ant banking SCB branch or requirements ATM ii)Access your account from any branch of SCB Savings Account Exclusive Features Features

iii)ATM card and

Debit card iv)Phone banking v)Online banking i)Maintain Rs. 25,000 individual savings account with the benefit of clubbing balances in grouped accounts. ii)Option of SIP that allows you to invest a fixed amount of money every month in specific portfolio. iii)Globally valid ATM-cum-Debit card. iv)Phone Banking v)Online Banking It is a basic, no i)No minimum Rs. 0 maintenance and balance required. hassle free ii)Unlimited free savings account. access to SCB ATM’s. iii)International Debit Card iv)Phone Banking

c)Parivaar Account

It allows you to maintain your individual identity while allowing you to tap your family’s financial strength.

d)Aasaan Account

v)Online Banking

2. CREDIT CARDS Standard Chartered Bank offers a wide range of credit cards, each tailored to satisfy an individual needs. 3. INSURANCE AND INVESTMENTS

Standard Chartered Bank has a tie up with Bajaj Allianz Life Insurance Company and Royal Sundaram General Insurance to offer a variety of products in order to cover all insurance requirements. They offer: o One-stop shopping for both life and general insurance protection o Comprehensive range of products to suit every stage of your life... from childhood to retirement o Dedicated insurance Financial Services Consultants from Bajaj Allianz Life Insurance Company to provide FREE Consultations to create customized insurance plans for you

Great Place to Work Standard Chartered employs almost 60,000 people in 56 countries and territories, representing over 100 nationalities. Demographic changes, competition in our markets and our own rapid growth provide a bigger challenge than ever to attract, develop and engage our employees to continue to deliver strong results.


As we grow, we believe our diverse and inclusive approach provides engaging opportunities for our employees to develop, both as individuals and as part of a team. We are committed to creating a healthy, safe and fulfilling work environment in which people can grow, individuals can make a difference and teams can win. Our approach to managing people is underpinned by four principles: A focus on managing talent to identify, reward and retain talented employees • Building a strengths-based approach by providing the skills to develop individuals and teams by focusing on people's personal strengths • A commitment to drive employee engagement through the development of exceptional managers with the skills to identify and build talent • Creating a diverse and inclusive workplace that encourages our employees to achieve their potential and support our growth

Priorities at Standard Chartered At Standard Chartered, we believe that our future success depends on our ability to deliver a sustainable business. Our 'building a sustainable business' strategy will help us take a long-term view of the implications of everything we do. This means taking responsible decisions that benefit our business, the economy, society and the environment – and build the trust of all our stakeholders. Our 'building a sustainable business' strategy explicitly recognizes seven areas where we and our stakeholders believe we are most likely to make the greatest contribution to sustainability. They are:

Sustainable lending – making sure when we lend money we are aware of the environmental, social and governance risks







attached to such decisions and that we take steps to address them Tackling financial crime – making sure that we have the right systems in place to detect such things as fraud and money laundering and exceed, rather than simply meet, increasingly stringent legal requirements in this field Access to financial services – making sure we develop new ways for those deprived of banking services to get proper access to finance so that they can improve their standard of living and economic independence Responsible selling & marketing – making sure we treat customers fairly and set the highest standards in service and transparency Protecting the environment – making sure we not only minimize our own direct impact on the environment but support others, such as customers, to do the same. We also want to support the development and commercialization of technologies and schemes that tackle environmental threats like climate change Great place to work – making sure that with our people, who represent over 100 nationalities from over 50 countries, feel valued, included and engaged. We're determined to attract, develop and retain the best people and to leverage the strength the diversity of our people brings, which is an incomparable advantage Community investment – making sure we involve our employees and utilise our core expertise, networks and resources to help communities develop and economies to grow


Governance The governance structure we have set up for Sustainability provides strategic direction for the Bank and ensures we continue to make progress with our approach to sustainable development. The Corporate Responsibility and Community Committee sit at the top of this structure alongside the Remuneration, Audit and Risk, and Nomination Committees of our Board. It is supported by a Group Sustainability team, steering groups for specific programmes and our branches and offices in each country we operate in. The Committee is chaired by Mervyn Davies, the Group Chairman, and meets quarterly. It drives the Sustainability agenda at Standard Chartered and is responsible for responding to issues coming out of new Sustainability legislation, regulation, stakeholder guidance and reporting and for making sure our activities are aligned with our overall business strategy. It also ensures we publish a Sustainability report, supported by accurate data, each year, in line with best practice. A dedicated Sustainability team, based in the London office, supports the Committee, the Business and other Group functions. The role of the team is to talk with stakeholders, monitor good practice and flag up potential trends and emerging issues. It co-ordinates the collection of data and is responsible for our annual Sustainability Review and web site, participating in thought leadership events and raising our Sustainability profile outside the Bank. Nine Steering Groups or Committees put the Bank's strategy into action, co-ordinate Group-wide initiatives and provide policy recommendations to the Board, its various committees or the Corporate Responsibility and Community Committee. They are: • Strategic Sourcing and Vendor Management Committee • Diversity Council

• • • • • • •

Environmental Steering Group Health and Safety Steering Group Group Risk Committee Reputation Risk Committees Seeing is Believing Committee Living with HIV Advisory Committee Community Partnership Boards

Because our business is spread across the globe in very different market places, each Country Head is responsible for identifying and responding to local Sustainability issues. It is the responsibility of each business unit to adhere to policies that have been set on a global basis. Where local standards exceed group set policies, the higher standard is adopted. Engagement Helping stakeholders understand the way we operate and the challenges we face is fundamental to making progress with our 'building a sustainable business' strategy. Engagement is a word used by many organizations, but it means something very specific to Standard Chartered. It is the way we go about communicating with three distinct but interconnected audiences: Our own employees – we want them to really understand what "Building a sustainable business" means • People and organizations that use or influence our products and services – we want to work closely with them to develop and promote sustainable services • People and organizations that have the power to make a wider difference – we want to use our geographic reach to promote the need for sustainable development
• 26

We have been working on our stakeholder engagement programme for some years. Work in this area has recently increased as continue to build a clearer picture of our global stakeholder audience including government departments and agencies, socially responsible investors, academic institutions, business associations and nongovernmental organisations. In 2006 we invited 60 of our key stakeholders to help us develop our 'building a sustainable business' strategy. Their contributions – many of which are included in our 2006 Sustainability Review – helped us decide what our sustainable development priorities should be. Building a truly relevant stakeholder network is challenging, however, it is extremely important that we continue to build our network in the years ahead. One-Stop Range of Products and Services We have a full range of foreign exchange and risk management solutions to meet the needs of clients across the world. . Standard Chartered Alternate Investment Group Standard Chartered Bank's Alternate Investment Group focuses on distressed and high-yield opportunities by investing in senior debt, mezzanine or equity instruments. In addition, it provide asset management services to investment banks, financial institutions and value investors as well as advisory services to companies in financial distress or requiring assistance with their capital structure. Our Business Investments. Our investment program is aimed at both the primary and secondary markets. We provide liquidity to the distressed and high yield market through the following:

• • • • • •

Acquisition of distressed asset portfolios Investments in loans and bonds Offering priority loans (DIP), subordinated or mezzanine debt Offering structured investments Investments in equity Investments in hybrid structures

Asset Management. We offer a range of services under asset management including origination of investment opportunities, due diligence, loan servicing (monitoring and recovery) for single assets and portfolio investments. The Bank has a successful track record of managing and resolving non-performing loans. Corporate Advisory. We offer corporate advisory services to companies requiring capital structuring and to companies in financial distress. Our range of services includes:
• •


Assessment of strategic issues, ranging from corporate and capital structures to potential mergers and sale of businesses Development and implementation of creative and comprehensive solutions to address clients' various complex issues such as capital restructuring exercise Assistance in implementing the appropriate debt and equity financing structure

Our Strengths Professional Team. We have a large experienced team of skilled individuals who have developed a reputation for competency in valuation, due diligence, acquisition and asset management in the distressed and high yield market. Our local market knowledge and workout skills offer value to our clients. Network. We leverage Standard Chartered Bank's network in our core markets to provide us on-the-ground knowledge and early

access to situations. The Bank's client franchise offers investment opportunities while Alternate Investment Group's strong relationships with investment banks, financial institutions, brokers and value investors provides a valuable source of investors. We utilise superior information to maximise value for our clients. Positioning. The distressed and high-yield markets in Asia,Africa and the Middle East offer attractive revenue generating opportunities. The Bank is well positioned in these markets to enable Alternate Investment Group to deliver value to the Bank and our clients. 1.3INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENT

About Investment It is the money that you save and channelize into sources that gives you return i.e. use of money in hope of making more money. One needs to invest to:  Earn returns on idle resources  Generate a specified sum of money for a specific goal in life  Make a provision for a uncertain future  To meet the cost of inflation The aim of investment should be to provide a return above the inflation rate and also to ensure that the investment does not decrease in value. There are various options available for of investment: o Physical assets like real estate, gold/jewellery, commodities etc o Financial assets like fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension


fund, securities market related instruments like shares, bonds, debentures etc.

Types of Investments (period specific)
1. Short Term Investment- The investment period is usually less

than a year and it provides liquidity to the investor.

a) Savings Bank Account- It is most often the first banking product that people use. This offers them interest (4%-5% p.a.) which is better than idle money. b) Money Market of Liquid Funds- These are specialized form of mutual funds that invest in extremely short-term fixed income instruments and also provides liquidity. It focuses on protecting your capital and then on making returns. These are a better source of investment than savings account but lower than fixed deposits. c) Fixed Deposits with Banks- Also known as term deposits and the minimum investment period with banks FD is 30 days. It is for those investors who are risk averse and it provides higher rate of return than money market instruments.
2. Long Term Investment- The investment period is more than a

year and the returns are much higher than short term investments. Long term instruments are less liquid than short term investments. a) Post office savings- The post office monthly income scheme is a risk saving instrument, which can be availed through any post office. It provides an interest rate of 8%

per annum, which is paid monthly, minimum amount, which can be invested is Rs. 1,000 and maximum is Rs. 3, 00,000. It has a maturity period of 6 years, premature withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principle amount if withdrawn prematurely. b) Public Provident Fund- A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through the year for depositing money, tax benefits can be availed for the amount invested and interested accrued is tax free.

c) Company Fixed Deposits- These are short- term [six months] to medium- term [three to five years] borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semiannually or annually, there can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period, the rate of interest varies between 6- 9 % per annum for company FDs, the interest received is after deduction of taxes. d) Bonds- It is a fixed income [debt] instrument issued for a period of more than one year with purpose of raising capital, the central of state government corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date called the maturity date.


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

About Portfolio A portfolio is a combination of different investment assets mixed and matched for the purpose of achieving an investor’s goals. A portfolio may contain items like shares, debentures, bonds, any asset you own, mutual funds to items such as gold, art, real estate. One must have variety of investments within a portfolio in order to diversify market risk. The portfolio should be designed in such a way that it minimizes the impact of one security on overall portfolio performance. Advantages of having a Diversified portfolio:  Decline in any one security will not affect the entire portfolio


 Investments across various types of assets and markets will reduce the risk of entire portfolio getting affected by the adverse returns of any single asset class.



Research Methodology OBJECTIVE  To understand the basics of investment and various alternatives that are available with the investor.  Also to understand the customer psychology of investments and what are the various objectives behind the investment. TYPE OF RESEARCH Descriptive in nature- The descriptive research design is one that describes the things such as the market potential for a product or the demographics and attitudes of consumers who buy the product. It includes questionnaire survey and fact finding inquiry. SAMPLE DESIGN

SAMPLE UNIT: Delhi and NCR region • SAMPLE SIZE: 50 • SAMPLE SELECTION: Random, convenient


Primary data. The major source of primary data was the information and questionnaire collected from the investors and the customers. The information collected from the journals and the trainer can also be referred to as the primary data.


Secondary data. The major source of secondary data was the reference books and company’s website. The company’s articles and magazines were also referred to for the information.



3.1 Sources of Data Collection PRIMARY DATA COLLECTION Primary data was collected through questionnaires. Refer to the appendix for the data. SECONDARY DATA COLLECTION Secondary sources through – • Internet • Articles • papers and • books

3.2 Products of Standard Chartered 1. SAVINGS ACCOUNT

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



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


FREE Standard Chartered Bank branch access across the county

• • •

FREE Doorstep Banking* FREE Demand Drafts/Pay Orders* (drawn at SCB locations) FREE Payable at Par Chequebook

Other features available are; • • • • International Debit Card Phone Banking NetBanking and Extended Banking Hours

b. Parivaar Parivaar is much more than a regular Savings Account. It allows you maintain your individual identity while allowing you to tap your family's financial strength. It also offers attractive insurance options to protect against unforeseen events and the facility of Systematic Investment Plan (SIP), a unique long-term wealth building tool. • Your family can maintain individual savings accounts with the benefit of clubbing balances in grouped accounts. • Anytime, anywhere access to accounts through ATMs, Phone Banking and InterNet banking. • Option of Systematic Investment Plan (SIP), a well known long term wealth building tool that allows you to invest a fixed

amount of money every month in specific mutual funds. This comes with a direct debit facility and avoids the need to remember dates and write cheques every month. • Globally valid ATM-cum-debit card can be used at 55,000 merchant outlets in India and 12 million outlets worldwide.

c. No Frills Account You can now open an account with Standard Chartered Bank, with an average quarterly balance of as low as Rs. 250. What’s more – you can avail of Anywhere Banking, by which you can access your account from any branch of Standard Chartered Bank in India. • Quarterly Average Balance, as low as Rs. 250. • ATM card & Debit Card available.. • 4 free transactions per month at any Standard Chartered Bank channel (Internet banking, Phone Banking, ATM & Branch).. • Anywhere banking – Access your account from any branch of Standard Chartered Bank. • Access to Phone Banking and Internet Banking • Free Cheque deposit at any SCB Branch or ATM. Eligibility criteria This account is available to individual Resident Indian customers. Account may be opened after being properly introduced in a manner approved by the Bank. d. AaSaan • No Minimum Balance requirement • Free unlimited access to any SCB branch across the country for Customer-in-person

• Unlimited Free access to Standard Chartered Bank ATM's • Upto 4 free cash withdrawal transactions per month at other domestic VISA ATMs* • Nominal quarterly fee of Rs. 100 (reversed if the Average Balance in the quarter is Rs 10,000 or more)

Other Facilities • • • • • • International Debit Card Phone banking NetBanking Extended banking hours* Locker facility* Doorstep banking

To open an aaSaan account, you have to initially fund the account with Rs. 10,000 (Rs. Ten Thousand)


Schedule of services provided by various bank - A Comparison
Kotak Mahindra Edge Pro Ace

Features Name of saving accounts


HDFC Saving Regular Saving Plus SavingsMax

ABN Amro StanChart Flex Advantage a Flex Plus S Flex Prvilage aa No Advantage 39

Average Quarterly Balance


Regular - 5,000

Edge - 10,000


Plus - 10,000 Max - 25,000

Pro - 20,000 Ace - 75,000

0 Plus - 10,000 Privilage 25,000


a No

Rate of Interest Annual Maintenance charges

3.50% 750

3.50% Regular - 750 Plus - 750-1000 Max - 1000-1500 Yes 500

3.50% Edge - 750 Pro - 750 Ace - 1200 Yes Global - 100

3.50% 750

aXce Supe No

Issue of debit card Annual Debit card charges

Yes 99

Yes 180 + Taxes

Sho G

Draft Charges (per thosand)


Upto 25,000 - NA


55 UTI & 5 transaction from any bank- Free

ATM Swap charges


Andhra Bank & SBI-NA



Mobile banking Internet banking Phone banking Cheque book

Free Free Free Free

Free Free Free At Par Free

Free Free Free 2/leaf (at par)

Free Free Free At Par Free

2. ULIP- Unit Linked Insurance Plan Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.


In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of Life Insurance.

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

income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer. Goal based savings Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. The table below gives a general guide to the plans that are appropriate for different life stages. Life Insurance Product Young & Wealth creation Asset creation Single plans Wealth creation Young & Just Asset creation and mortgage married & protection protection plans Married with Children's Education Life Stage Primary Need

insurance, education, mortgage kids Asset creation protection & and protection wealth creation plans Planning for Retirement Middle aged retirement & solutions & with grown asset mortgage up kids protection protection Across all Health plans Health Insurance life-stages

Standard chartered Bank has a tie up with Bajaj Allianz Life Insurance to sell their insurance plans.

The Bajaj Allianz New UnitGain Super comes with a host of features to allow you to have the best of all worlds - Protection and Investments. It enables every participant to create a solid financial protection and savings plan for himself and his family. In this way, as a participant in the Bajaj Allianz New UnitGain Super Plan, you can secure your well being and accumulate savings towards financial independence and a comfortable retirement. They offer the best in financial planning. One can now avail of the twin benefit of risk protection as well as getting market-linked return on your investment. An insurance plan that works round the clock to meet the changing requirements in life – additional protection, more money to invest, sudden requirement of cash or a steady postretirement income. With Bajaj Allianz New UnitGain Super, you can invest in one life insurance plan that can take care of all your changing requirements. This plan has been designed to provide your family with higher financial assistance should anything unfortunate

were to happen to you as well as flexibility, so that you do not have to worry about your changing needs.

The Key Features of the New UnitGain Super Plan are: • It is a unit linked plan with minimum term of 10 years and maximum maturity age 70 • Guaranteed death benefit • You have the option to choose a host of additional benefits (Riders): UL Accidental Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit, UL Critical Illness Benefit and UL Hospital Cash Benefit • It provides you with an easy, regular contribution mechanism to assist you in accumulating funds. Four different options to choose from – Silver, Gold, Diamond & Platinum Options Premium Range Silver >=Rs 25,000 but < Rs 50,000 Gold >=Rs 50,000 but < Rs 100,000 Diamond >=Rs 100,000 but < Rs 500,000 Platinum >=Rs 500,000 & Above • You can adopt your own investment strategy to grow the funds contributed. • Choice of 6 investment funds today with flexible investment management: you can change funds at any time and also invest in the newer funds that would be introduced from time to time.

Investment Options: Bajaj Allianz New UnitGain Super offers you a choice of 3 funds. You can choose to invest fully in any one fund or allocate your premiums into the various funds in a proportion that suits your investment needs. The six funds offered are as under: 1.Equity Index Fund II - Risk Profile – High : The investment objective of this fund is to provide capital appreciation through investment in equities forming part of NSE NIFTY. FUND EXPOSURE Bank Deposits and Money Market 0%-15% Instruments Equities 85%100%

2.Equity Growth Fund- Risk Profile – Very High : The investment objective of this fund is to provide capital appreciation through investment in selected equity stocks that have the potential for capital appreciation. FUND EXPOSURE Bank Deposits and Money Market 0%-20% Instruments Equities 80%100%

3.Accelator Mid-Cap Fund- Risk Profile- Very High: The objective of this fund is to achieve capital appreciation by investing in a diversified basket of mid cap stocks and large cap stocks.

FUND EXPOSURE Bank Deposits and Money Market 0%-20% Instruments Not more than 20% of the 80%apportioned premium can be put 100% in this fund

4. Asset Allocation Fund- Risk Profile- High: the objective of this fund will be to realize a level of total income, including current income and capital appreciation, which is consistent with reasonable investment risk. • It allows for flexibility in allocating assets between equities, bonds and cash. It will help to capitalize the changing financial markets and economic conditions. • The funds will adjust its weights in equity, debt and cash depending on the relative attractiveness of each asset class. FUND EXPOSURE Equities 0%100% Debt 0%100% Money Market Instruments 0%-20%

5.Liquid Fund- Risk Profile- Low: The objective of this fund is to have a fund that protects invested capital through investment in liquid money market and short-term instruments. FUND EXPOSURE Bank Deposits and Money Market 100% Instruments Not more than 20% of the apportioned premium can be put

in this fund

6.Bond Fund- Risk Profile- Moderate: The objective of this fund is to provide accumulation of income through investment in high quality fixed income securities.

FUND EXPOSURE Bank Deposits and Money Market 0%-20% Instruments G-Secs, Bonds and Fixed 80%Deposits 100%

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


Benefits The reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity.  In MFs, the risk involved decreases and the return increases because of diversified pool of funds.  It is the cheapest of all investments. But if you invest through broker then you have to any 2.5% of the total investment but if you invest directly into the company no entry charges will be taken.  There is no lock in period in case of MFs but if you divest toyur investment within a period of 1year then you will have to pay an exit load between 1%-2%.  Tax Saving is another benefit given to the investors.

Flexibilty - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV

Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research Potential of return -The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish. Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the investor's interests.

Here we have to calculate the Net Asset Value which helps us in calculating the no. of units. NAV= CA-CL No.of Units If the market price decreases, the no. of units held by the investor increases and vice versa.




Q1. What is your age group?
Distribution of Responders Age groups

(d) > 45 yrs 14% (c) 35-45 yrs 10% a) 18-25 yrs 54% (b) 25-35 yrs 22%

According to the survey, maximum number of people belong to the age group of 18-25 years. So we can say that most of the respondents will be willing to take risk and make investments in the market instruments with moderate risk.


Q2. What is your Occupation?

distribution of responders according to their occupation 30 no. of respnoders in a particular occupation category 25 20 15 10 5 0 various occupations (a) Business, 8 (c) Self Employed, 7 (d) others, 10 (b) Salaried, 25

The above graph shows the occupation of the sample respondents. 50% of the respondents belong to the category of salaried employees. 16% of the respondents are into Business. 14% of the responds are self employed and the rest 20% into other occupation.


Q3. Under which range your Household Income falls?

household income range

(d) > 10lakhs 28%

(a) < 2 lakhs 4% (b) 2-5 lakhs 30%

(c) 5-10 lakhs 38%

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


Q4. What is your objective behind Investments?

Proportion of objectives Number of responders favouring the objective 44 32 23 15 14 1 (a) Safety & security of capital (c) Tax benefits (e) Future plans (d) Expecting good Returns (f) Managing uncertainties (b) Retirement (g) Others 29

various objectives

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


Q5. How do you take financial decisions?

sources of decision

19% 9%



(a) Independently (b) Word of mouth (c) Broker (d) Advise from a CA (e) Advise from a Bank

8% 12%


(f) Financial Advisors (g) Others (please specify)

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


Q6. How much Risk are you willing to take?

Risk ability

(a) High 12% (b) Low 18%

(c) Moderate 70%

According to the graph above, 70% of the respondents are willing to take moderate risk i.e. 35 respondents take moderate risk while taking investments decisions. 12% of the respondents i.e. 6 people out of 50 surveyed are willing to take high risk. 18% of the respondents i.e. 9 people are risk averse so they make investments in those securities which have less risk involved.


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


financial products


No. of responders having the product in thier portfolio


27 24 20



4 0 (a) Fixed deposits (b) Property/Land (c) Ulip (d) Gold (e) Life insurance policies (f) Government bonds (g) Mutual funds (h) Equity/Shares (i) Others

various financial products for investments

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


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

satisfaction level

4% 18% Excellent 0% 6% 2% 70% Very Good very poor Average Poor Good

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

Remaining 2% of the total population do not have much idea about the investment strategies so may not be getting much returns so they rate their portfolio as “Poor”. ANALYSIS BASED RESPONDENTS ON THE AGE GROUP OF THE

A) Age Group 18-25 years i) Occupation

distribution of occupation for the age category of 18-25yrs
16 no. of responsers of age paritcular 18-25 yrs of age for particular occupation 14 12 10 8 6 4 2 0 (a) Business (b) Salaried (c) Self Employed (d) others occupations avialable 2 4 7 14

In this age group, maximum no. of the respondents are salaried employees.


Out of the total sample population, 7 respondents out of 27 are neither into job, nor business. They have either invested into the share or commodity markets or they are students. Out of 27, 4 respondents are self employed i.e. they have joined their family business. Remaining 2 respondents out of 27 in this age group are into business.




income levels for the age group 18-25 yrs

12 10 8 no. of responders of 18-25yrs of age 6 in each level 4 2 0



4 2

(a) < 2 lakhs

(b) 2-5 lakhs

(c) 5-10 lakhs

(d) > 10lakhs

various income levels avialable

proportions of responders income level for the age group 18-25 yrs

(d) > 10lakhs 15%

(a) < 2 lakhs 7%

(c) 5-10 lakhs 37%

(b) 2-5 lakhs 41%


The above graph shows the income level of the respondents in the age group of 18-25 years. In this age group, maximum no. of respondents has an income in the range of 2-5 lakhs. 10 of out of 27 respondents in this age group has an income range between 5-10 lakhs. Around 20% of this age group has an income above 10 lakhs and the remaining 10% are below 2 lakhs.


iii) Risk
Risk capability for the age group 18-25yrs

high 15%

low 19% moderate 66%

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

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

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


Distribution of occupation,income level,risk level of responders of age group 18-25yrs
20 18 16 14 12 10 8 6 4 2 0

18 14 11 occupation 10 7 4 2 5 4 4 income risk level

No. of responders for the particular

levels of occupation, risk and income

This graph shows a correlation between the occupation, risk and income of the respondents. The yellow line depicts the risk level, pink depicts the income level and blue depicts the occupation of the respondents. According to the survey, when the income level of this age group is below 2 lakhs, they can invest in those instruments that have low risk attached to it and the occupation of such respondents is salaried employees. As the income level range increases to 2-5 lakhs, the respondents decide to invest in those instruments having moderate risk attached to it and these people are generally into business. All those whose income level range from 5-10 lakhs, they their risk taking ability is also higher then others.

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

B. Age Group 25-35 years i) Occupation

Distribution of occupation for the age group 25-35 yrs
6 5 4 No. of 3 respondents 2 1 0 a) Business 6


2 1

b) Salaried

c)Self Employed


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

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



Distribution of Income for the Age group 25-35 yrs

0% 27% 36% <2 Lacs 2-5 lacs 5-10 lacs >10 Lacs


Out of the sample population, 11 respondents are in the age group of 25-35 years. 37% of the total respondents in this age group have an annual income of 5-10 lakhs. 36% of the respondents i.e. 4 respondent’s annual income is above 10 lakhs. The remaining 27% of the respondents i.e. 3 of them have an annual income between 2-5 lakhs.



Distribution of Risk for the Age group 25-35 yrs

9% 9% High Low Moderate


According to this graph, majority of the respondents take moderate risk in investments. And rest 9% of them can take high and low risk.


Distribution of Occupation, Income and Risk level of respondents of age group 25-35 yrs
10 9 8 No. of respondents 6 4 3 2 0 1 2 1 0 2 2 1 3 4 1 0 6 4 4 Occupation Income Risk

Occupation, Income and Risk level

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

C. Age Group 35-45 years


proportion of occupations of responders of age group 35-45yrs

others 20% business 40% self employed 20% salary 20%

Occupation Business Salary Self employed Others

No.of Respondents 2 1 1 1



Distribution of income levels of responders of age group 35-45yrs
40% 40% 35% 30% 25% % of responders in 20% each income level 15% 10% 5% 0% 40%


0% (a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs (d) > 10lakhs

various income levels

In this age group, there is no single respondent below the income level of 2 lakhs. 20% of the respondents lie in the income category of 2-5 lakhs. 40% of the respondents lie in the income category of 5-10 lakhs. Again 40% of the respondents lie in the income category of income above 10 lakhs. Hence, equal no. of respondents have an income ranging from 5-10 lakhs.



Distribution of risk level accepted by the responders of age group 35-45yrs

80 60 % of responders of the age group in 40 each risk level 20 0 high 20 0



various risks level avialable

According to the graph, 80% of the people invest in those instruments carrying moderate risk. Remaining 20% of the respondents invest in low risk instruments. No one in this age group invest in instruments carrying high risk.

D. Age Group >45 years




Distribution of Occupation for the age group >45 yrs
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% a) Business b) Salaried 0.00% c) Self Employed d) Others 14.29% S1 28.57% 57.14%

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




Distribution of Income for the Age group >45 yrs
0% 0% 43% <2 Lacs 2-5 lacs 5-10 lacs 57% >10 Lacs

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




Distribution of Risk for the Age group >45 yrs

60.00% 50.00% 40.00% 28.57% 30.00% 20.00% 10.00% 0.00% High Low 14.29%



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


Distribution of Occupation, Income and Risk level for thw respondents of the age group >45 yrs
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 1

No. of respondents


4 3

4 Occupation Income Risk 1

2 1 0 2


0 3

0 4

Level of Occupation, Income and Risk

In the graph above, as you can see, the age group above 45 years is not willing to take high risk if their income level is not above 5 lakhs per year. As the income level increases, the risk taking capability also increases. Those having income level above 5-10 lakhs can invest in those instruments that bear high risk. All those respondents who are into business can take moderate risk.





The project “Investment Strategies and Portfolio Management” has helped me a lot to gain an insight about the various banking products. Standard Chartered Bank is one of the leading private banks which provide all the banking products and investment solutions to their customer. They have differentiated themselves in a very distinct way by providing the best of their services. This bank is listed on both London Stock Exchange and Hong Kong Stock Exchange. Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East. Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. The products of Standard Chartered are very competitive and provide the best of their services to the customer. According to the survey, 99% of the respondents have their saving account which means that it is the hot selling cake in the banking industry. Around 30% of the people have invested in the plan ULIP and 30%40% of the respondents have invested in Mutual Funds.




Dear respondent this questionnaire is meant for the purpose of research on the topic“INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENT” for a continuous evaluation of summer internship as part of MBA (G) program of Amity Business School, Amity University, UP. It will be assured that the data collected will not be misused. Name: Contact No: 1) What is your age group? (a) 18-25 yrs (b) 25-35 yrs 2) What is your Occupation? (a) Business (b) Salaried (c) 35-45 yrs (c) Self Employed (d) > 45 yrs (d) Others (d) >

3) Under which range your Household Income falls? (a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs 10lakhs

4) What is your objective behind Investments? (a) Safety & security of capital (b) Retirement (c) Tax benefits (d) Expecting good Returns (e) Future plans (f) Managing uncertainties (g) Others (please specify) 5) How do you take financial decisions? (a) Independently (b) Word of mouth / friends / relatives (c) Broker (d) Advise from a Chartered Accountant (e) Advise from a Bank (f) Financial Advisors (g) Others (please specify) 6) How much Risk are you willing to take? (a) High (b) Low (c) Moderate

7) What do you have presently in your portfolio in form of investment? (a) Fixed deposits (b) Property/Land (c) Ulip (d) Gold (e) Life insurance policies (f) Government bonds (g) Mutual funds (h) Equity/Shares (i) Others (please specify) ________________________________ 8). How would you rate the satisfaction level with your current portfolio? (a) Excellent (b) Very Good (c) Good (d) Average (e) Poor (f) Very Poor 79



1. Website • 2. Books • • • • Money and Banking- ICFAI Indian Finanacial Management- M.Y. khan Finanacial Management- S.N. Maheshwari NCFM- Financial Beginners Module



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