Comparison Betweet Nulipmutualfundsstandardcharted

Final Report of Summer Training In
Topic
Investment Strategies of General Public & Comparative Analysis of Mutual Funds and !IPs
"y As#is# C#atrat# PG$M% &'(%')* FT%'(%+,) Institute for Integrated !earning in Management Graduate Sc#ool of Management -./ 0no1ledge Par2%--/ Greater 3oida % ,'-4'.
1
Table of Contents
Sr. No. 1. 2. 3. 4. 5. &. ). (. .. 1/. 11. 12. 13. 14. 15. 1&. 1). 1(. 1.. 2/. 21. 22. 23. 24. 25. 2&. 2). 2(. 2.. 3/. 31. 32. 33. 34. Topic Acknowledgement Synopsis Banking in India !allenges "aced #y Banking Ind$stry Strategic %ptions to cope wit! t!e !allenges 'ist o" Banks in India *act *ile o" Banks in India ompany Pro"ile+,orldwideompany Pro"ile+IndiaS,%T Analysis Pro#lem Statement 0 %#1ecti2e In2estment Strategies o" 3eneral P$#lic 4ata ollection and 5esearc! In2estment Strategy 6$estionnaire 4ata Pro"ile *indings o" T!e 5esearc! omparison o" t!e Ser2ices and Prod$cts o""ered #y di""erent Banks Prod$cts %""ered #y Standard !artered Bank 7$t$al *$nds oncept 8ow 7$t$al *$nds ,ork *re9$ently $sed Terms wit! 7$t$al *$nds 5et$rn 5isk Types o" 7$t$al *$nds Ad2antages o" 7$t$al *$nds 4isad2antages o" 7$t$al *$nds Standard !artered 7$t$al *$nd :nit 'inked Ins$rance Plan *eat$res o" :'IP 'atest I54A 3$idelines "or :'IPs 3$ideline to Select T!e 5ig!t :'IP 'i"e Ins$rance Prod$cts at Standard !artered omparati2e Analysis o" 7$t$al *$nds and :'IP Page No. 3 4 5 14 1& 1( 24 25 32 3( 4/ 41 41 42 43 4) 5) &2 )1 )1 )3 )3 )4 )5 )( (3 (( .2 .3 .5 .& .( 1/1 1/4
Ac2no1ledgment
I want to place on record my gratit$de to t!e organi;ation and its people w!ose genero$s !elp and s$pport ena#led me to complete t!is pro1ect wit!in t!e stip$lated time period. 7y special t!anks to 7r. Nitis! 4iapnkar< Area Sales 7anager< Standard !artered Bank 'imited< ,ealt! 7anagement= ons$mer Banking< New 4el!i "or !is acti2e !elp< g$idance and s$pport in making me $nderstand Banking operations. I am greatly inde#ted to all t!ose people w!o !a2e !elped me in some way or ot!er in t!e completion o" t!e pro1ect. I am also grate"$l to t!e sta"" mem#ers o" STA3$AR$ C5ART6R6$ "A30 "or t!eir s$pport and co=operation d$ring t!e co$rse o" my s$mmer training. T!e Faculty o" my instit$te deser2es t!e praise "or t!eir role in s!aping t!is s$mmer training pro1ect. In t!e end< I take t!e responsi#ility "or all my s!ortcomings.
As!is! !atrat!
Synopsis
In t!e last "i2e decades t!e "ield o" in2estments !as recei2ed considera#le attention "rom academic researc!ers keen on $nderstanding iss$es like> 8ow do people select an In2estment option? 8ow s$ccess"$l are t!e 2ario$s strategies "ollowed #y in2estment practioners? 8ow m$c! 5isk do people take $p w!ile in2esting? ,it! t!e coming $p o" large n$m#er o" m$ltinational corporations< t!e competition in t!e in2estment sector !as increased tremendo$sly. Today< an in2estor !as many in2estment prod$cts to c!oose "rom according to !is @ !er needs and pre"erences. By keeping in mind all t!ese points t!e analysis o" t!e in2estment pattern is done t!ro$g! sample s$r2ey in t!is pro1ect report.
"A30I3G I3 I3$IA
Banking in India originated in t!e "irst decade o" 1(t! cent$ry wit! T!e 3eneral Bank o" India coming into eAistence in 1)(&. T!is was "ollowed #y Bank o" 8ind$stan. Bot! t!ese #anks are now de"$nct. T!e oldest #ank in eAistence in India is t!e State Bank o" India #eing esta#lis!ed as BT!e Bank o" BengalB in alc$tta in C$ne 1(/&. A co$ple o" decades later< "oreign #anks like redit 'yonnais started t!eir alc$tta operations in t!e 1(5/s. At t!at point o" time< alc$tta was t!e most acti2e trading port< mainly d$e to t!e trade o" t!e Britis! Dmpire< and d$e to w!ic! #anking acti2ity took roots t!ere and prospered. T!e "irst "$lly Indian owned #ank was t!e Alla!a#ad Bank< w!ic! was esta#lis!ed in 1(&5. By t!e 1.//s< t!e market eApanded wit! t!e esta#lis!ment o" #anks s$c! as P$n1a# National Bank< in 1(.5 in 'a!ore and Bank o" India in 1./&< in 7$m#ai= #ot! o" w!ic! were "o$nded $nder pri2ate owners!ip. T!e 5eser2e Bank o" India "ormally took on t!e responsi#ility o" reg$lating t!e Indian #anking sector "rom 1.35. A"ter IndiaEs independence in 1.4)< t!e 5eser2e Bank was nationali;ed and gi2en #roader powers.
Structure of t#e 7rgani8ed "an2ing Sector in India
+N$m#er o" #anks is in #rackets.-
&
Early History:
At t!e end o" late=1(t! cent$ry< t!ere were !ardly any #anks in India in t!e modern sense o" t!e term. At t!e time o" t!e American i2il ,ar< a 2oid was created as t!e s$pply o" cotton to 'ancas!ire stopped "rom t!e Americas. Some #anks were opened at t!at time w!ic! "$nctioned as entities to "inance ind$stry< incl$ding spec$lati2e trades in cotton. ,it! large eApos$re to spec$lati2e 2ent$res< most o" t!e #anks opened in India d$ring t!at period co$ld not s$r2i2e and "ailed. T!e depositors lost money and lost interest in keeping deposits wit! #anks. S$#se9$ently< #anking in India remained t!e eAcl$si2e domain o" D$ropeans "or neAt se2eral decades $ntil t!e #eginning o" t!e 2/t! cent$ry.
+T!e Bank o" Bengal< w!ic! later #ecame t!e State Bank o" India.-
At t!e #eginning o" t!e 2/t! cent$ry< Indian economy was passing t!ro$g! a relati2e period o" sta#ility. Aro$nd "i2e decades !a2e elapsed since t!e IndiaEs *irst war o" Independence< and t!e social< ind$strial and ot!er in"rastr$ct$re !a2e de2eloped. At t!at time t!ere were 2ery small #anks operated #y Indians< and most o" t!em
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were owned and operated #y partic$lar comm$nities. T!e #anking in India was controlled and dominated #y t!e presidency #anks< namely< t!e Bank o" Bom#ay< t!e Bank o" Bengal< and t!e Bank o" 7adras = w!ic! later on merged to "orm t!e Imperial Bank o" India< and Imperial Bank o" India< $pon IndiaEs independence< was renamed t!e State Bank o" India. T!ere were also some eAc!ange #anks< as also a n$m#er o" Indian 1oint stock #anks. All t!ese #anks operated in di""erent segments o" t!e economy. T!e presidency #anks were like t!e central #anks and disc!arged most o" t!e "$nctions o" central #anks. T!ey were esta#lis!ed $nder c!arters "rom t!e Britis! Dast India ompany. T!e eAc!ange #anks< mostly owned #y t!e D$ropeans< concentrated on "inancing o" "oreign trade. Indian 1oint stock #anks were generally $nder capitali;ed and lacked t!e eAperience and mat$rity to compete wit! t!e presidency #anks< and t!e eAc!ange #anks. T!ere was potential "or many new #anks as t!e economy was growing. 'ord $r;on !ad o#ser2ed t!en in t!e conteAt o" Indian #anking> "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." :nder t!ese circ$mstances< many Indians came "orward to set $p #anks< and many #anks were set $p at t!at time< a n$m#er o" w!ic! !a2e s$r2i2ed to t!e present s$c! as Bank o" India and orporation Bank< Indian Bank< Bank o" Baroda< and anara Bank.
During the Wars

T!e period d$ring t!e *irst ,orld ,ar +1.14=1.1(- t!ro$g! t!e end o" t!e Second ,orld ,ar +1.3.=1.45-< and two years t!erea"ter $ntil t!e independence o" India were c!allenging "or t!e Indian #anking. T!e years o" t!e *irst ,orld ,ar were t$r#$lent< and it took toll o" many #anks w!ic! simply collapsed despite t!e Indian economy gaining indirect #oost d$e to war=related economic acti2ities. At least .4 #anks in India "ailed d$ring t!e years 1.13 to 1.1( as indicated in t!e "ollowing ta#le>
9ears 1.13 1.14 1.15 1.1& 1.1) 1.1(
3umber t#at failed 12 42 11 13 . )
of
ban2s Aut#orised &Rs: !a2#s* 2)4 )1/ 5& 231 )& 2/.
capital Paid%up &Rs: !a2#s* 35 1/. 5 4 25 1
Capital
Post-Independence
T!e partition o" India in 1.4) !ad ad2ersely impacted t!e economies o" P$n1a# and ,est Bengal< and #anking acti2ities !ad remained paraly;ed "or mont!s. IndiaEs independence marked t!e end o" a regime o" t!e 'aisse;="aire "or t!e Indian #anking. T!e 3o2ernment o" India initiated meas$res to play an acti2e role in t!e economic li"e o" t!e nation< and t!e Ind$strial Policy 5esol$tion adopted #y t!e go2ernment in 1.4( en2isaged a miAed economy. T!is res$lted into greater in2ol2ement o" t!e state in di""erent segments o" t!e economy incl$ding #anking and "inance. T!e ma1or steps to reg$late #anking incl$ded>
In 1.4(< t!e 5eser2e Bank o" India< IndiaEs central #anking a$t!ority< was nationali;ed< and it #ecame an instit$tion owned #y t!e 3o2ernment o" India. In 1.4.< t!e Banking 5eg$lation Act was enacted w!ic! empowered t!e 5eser2e Bank o" India +5BI- Bto reg$late< control< and inspect t!e #anks in India.B T!e Banking 5eg$lation Act also pro2ided t!at no new #ank or #ranc! o" an eAisting #ank may #e opened wit!o$t a licence "rom t!e 5BI< and no two #anks co$ld !a2e common directors.
8owe2er< despite t!ese pro2isions< control and reg$lations< #anks in India eAcept t!e State Bank o" India< contin$ed to #e owned and operated #y pri2ate persons. T!is c!anged wit! t!e nationali;ation o" ma1or #anks in India on 1.t! C$ly< 1.&..
1/
Nationalisation
By t!e 1.&/s< t!e Indian #anking ind$stry !as #ecome an important tool to "acilitate t!e de2elopment o" t!e Indian economy. At t!e same time< it !as emerged as a large employer< and a de#ate !as ens$ed a#o$t t!e possi#ility to nationali;e t!e #anking ind$stry. Indira 3and!i< t!e=t!en Prime 7inister o" India eApressed t!e intention o" t!e 3%I in t!e ann$al con"erence o" t!e All India ongress 7eeting in a paper entitled "Stray thoughts on Bank Nationalisation." T!e paper was recei2ed wit! positi2e ent!$siasm. T!erea"ter< !er mo2e was swi"t and s$dden< and t!e 3%I iss$ed an ordinance and nationalised t!e 14 largest commercial #anks wit! e""ect "rom t!e midnig!t o" C$ly 1.< 1.&.. Cayaprakas! Narayan< a national leader o" India< descri#ed t!e step as a "masterstroke of political sagacity." ,it!in two weeks o" t!e iss$e o" t!e ordinance< t!e Parliament passed t!e Banking ompanies +Ac9$ition and Trans"er o" :ndertaking- Bill< and it recei2ed t!e presidential appro2al on .t! A$g$st< 1.&.. A second dose o" nationali;ation o" & more commercial #anks "ollowed in 1.(/. T!e stated reason "or t!e nationali;ation was to gi2e t!e go2ernment more control o" credit deli2ery. ,it! t!e second dose o" nationali;ation< t!e 3%I controlled aro$nd .1F o" t!e #anking #$siness o" India. A"ter t!is< $ntil t!e 1../s< t!e nationali;ed #anks grew at a pace o" aro$nd 4F< closer to t!e a2erage growt! rate o" t!e Indian economy.
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Liberalisation
In t!e early 1../s t!e t!en Narsim!a 5ao go2ernment em#arked on a policy o" li#erali;ation and ga2e licenses to a small n$m#er o" pri2ate #anks< w!ic! came to #e known as New eneration tech! savvy banks< w!ic! incl$ded #anks s$c! as 3lo#al Tr$st Bank +t!e "irst o" s$c! new generation #anks to #e set $p- w!ic! later amalgamated wit! %riental Bank o" ommerce< :TI Bank+now re= named as AAis Bank-< I I I Bank and 84* Bank. T!is mo2e< along wit! t!e rapid growt! in t!e economy o" India< kick started t!e #anking sector in India< w!ic! !as seen rapid growt! wit! strong contri#$tion "rom all t!e t!ree sectors o" #anks< namely< go2ernment #anks< pri2ate #anks and "oreign #anks. T!e neAt stage "or t!e Indian #anking !as #een set$p wit! t!e proposed relaAation in t!e norms "or *oreign 4irect In2estment< w!ere all *oreign In2estors in #anks may #e gi2en 2oting rig!ts w!ic! co$ld eAceed t!e present cap o" 1/F<at present it !as gone $p to 4.F wit! some restrictions. T!e new policy s!ook t!e Banking sector in India completely. Bankers< till t!is time< were $sed to t!e 4=&=4 met!od +Borrow at 4FG 'end at &FG 3o !ome at 4- o" "$nctioning. T!e new wa2e $s!ered in a modern o$tlook and tec!=sa22y met!ods o" working "or traditional #anks. All t!is led to t!e retail #oom in India. People not 1$st demanded more "rom t!eir #anks #$t also recei2ed more.
Current Situation
$rrently +2//(-< #anking in India is generally "airly mat$re in terms o" s$pply< prod$ct range and reac!=e2en t!o$g! reac! in
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r$ral India still remains a c!allenge "or t!e pri2ate sector and "oreign #anks. In terms o" 9$ality o" assets and capital ade9$acy< Indian #anks are considered to !a2e clean< strong and transparent #alance s!eets relati2e to ot!er #anks in compara#le economies in its region. T!e 5eser2e Bank o" India is an a$tonomo$s #ody< wit! minimal press$re "rom t!e go2ernment. T!e stated policy o" t!e Bank on t!e Indian 5$pee is to manage 2olatility #$t wit!o$t any "iAed eAc!ange rate=and t!is !as mostly #een tr$e. ,it! t!e growt! in t!e Indian economy eApected to #e strong "or 9$ite some time=especially in its ser2ices sector=t!e demand "or #anking ser2ices< especially retail #anking< mortgages and in2estment ser2ices are eApected to #e strong. %ne may also eApect 70As< takeo2ers< and asset sales. In 7arc! 2//&< t!e 5eser2e Bank o" India allowed ,ar#$rg Pinc$s to increase its stake in Hotak 7a!indra Bank +a pri2ate sector #ank- to 1/F. T!is is t!e "irst time an in2estor !as #een allowed to !old more t!an 5F in a pri2ate sector #ank since t!e 5BI anno$nced norms in 2//5 t!at any stake eAceeding 5F in t!e pri2ate sector #anks wo$ld need to #e 2etted #y t!em. $rrently< India !as (( sc!ed$led commercial #anks +S Bs- = 2( p$#lic sector #anks +t!at is wit! t!e 3o2ernment o" India !olding a stake-< 2. pri2ate #anks +t!ese do not !a2e go2ernment stakeG t!ey may #e p$#licly listed and traded on stock eAc!anges- and 31 "oreign #anks. T!ey !a2e a com#ined network o" o2er 53</// #ranc!es and 1)</// AT7s. According to a report #y I 5A 'imited< a rating agency< t!e p$#lic sector #anks !old o2er )5 percent o" total assets o" t!e #anking ind$stry< wit! t!e pri2ate and "oreign #anks !olding 1(.2F and &.5F respecti2ely.
C#allenges faced by Indian "an2ing Industry

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T!e #anking ind$stry in India is $ndergoing a ma1or trans"ormation d$e to c!anges in economic conditions and contin$o$s dereg$lation. T!ese m$ltiple c!anges !appening one a"ter ot!er !as a ripple e""ect on a #ank trying to grad$ate "rom completely reg$lated sellers market to completed dereg$lated c$stomers market.
I $eregulation> T!is contin$o$s dereg$lation !as made t!e Banking market eAtremely competiti2e wit! greater a$tonomy< operational "leAi#ility< and decontrolled interest rate and li#erali;ed norms "or "oreign eAc!ange. T!e dereg$lation o" t!e ind$stry co$pled wit! decontrol in interest rates !as led to entry o" a n$m#er o" players in t!e #anking ind$stry. At t!e same time red$ced corporate credit o""
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take t!anks to sl$ggis! economy !as res$lted in large n$m#er o" competitors #attling "or t!e same pie. I3e1 rules> As a res$lt< t!e market place !as #een rede"ined wit! new r$les o" t!e game. Banks are trans"orming to $ni2ersal #anking< adding new c!annels wit! l$crati2e pricing and "ree#ees to o""er. Nat$ral "all o$t o" t!is !as led to a series o" inno2ati2e prod$ct o""erings catering to 2ario$s c$stomer segments< speci"ically retail credit. 6fficiency> T!is in t$rn !as made it necessary to look "or e""iciencies in t!e #$siness. Banks need to access low cost "$nds and sim$ltaneo$sly impro2e t!e e""iciency. T!e #anks are "acing pricing press$re< s9$ee;e on spread and !a2e to gi2e t!r$st on retail assets $iffused Customer loyalty> T!is will de"initely impact $stomer pre"erences< as t!ey are #o$nd to react to t!e 2al$e added o""erings. $stomers !a2e #ecome demanding and t!e loyalties are di""$sed. T!ere are $ltiple c!oices< t!e wallet s!are is red$ced per #ank wit! demand on "leAi#ility and c$stomi;ation. 3i2en t!e relati2ely low switc!ing costsG c$stomer retention calls "or c$stomi;ed ser2ice and !assle "ree< "lawless ser2ice deli2ery. I Misaligned mindset> T!ese c!anges are creating c!allenges< as employees are made to adapt to c!anging conditions. T!ere is resistance to c!ange "rom employees and t!e Seller market mindset is yet to #e c!anged co$pled wit! *ear o" $ncertainty and ontrol orientation. Acceptance o" tec!nology is slowly creeping in #$t t!e $tili;ation is not maAimised. ICompetency Gap>
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Placing t!e rig!t skill at t!e rig!t place will determine s$ccess. T!e competency gap needs to #e addressed sim$ltaneo$sly ot!erwise t!ere will #e missed opport$nities. T!e "oc$s o" people will #e on doing work #$t not pro2iding sol$tions< on escalating pro#lems rat!er t!an sol2ing t!em and on disposing c$stomers instead o" $sing t!e opport$nity to cross sell.
Strategic 7ptions 1it# "an2s to cope 1it# t#e C#allenges

'eading players in t!e ind$stry !a2e em#arked on a series o" strategic and tactical initiati2es to s$stain leaders!ip. T!e ma1or initiati2es incl$de>
Investing in state of t#e art tec#nology as t#e bac2 bone of to ensure reliable service delivery
;!everaging t#e branc# net1or2 and sales structure to mobili8e lo1 cost current and savings deposits Ma2ing aggressive forays in t#e retail advances segment of #ome and personal loans: Implementing organi8ation 1ide initiatives involving people/ process and tec#nology to reduce t#e fi<ed costs and t#e cost per transaction: Focusing on fee based income to compensate for s=uee8ed spread/ &e:g: CMS/ trade services* Innovating Products to capture customer >mind s#are? to begin 1it# and later t#e 1allet s#are:
1&
;Improving t#e asset =uality as per "asel II norms
Public sector banks

S"I group> State Bank o" India< wit! its se2en associate #anks commands t!e largest #anking reso$rces in India. SBI and its associate #anks are>

State Bank o" India State Bank o" Bikaner 0 Caip$r State Bank o" 8ydera#ad State Bank o" Indore State Bank o" 7ysore State Bank o" Patiala State Bank o" Sa$ras!tra State Bank o" Tra2ancore
1)
A"ter t!e amalgamation o" New Bank o" India wit! P$n1a# National Bank< c$rrently t!ere are 2/ nationali;ed #anks in India>

Alla!a#ad Bank And!ra Bank Bank o" Baroda Bank o" India Bank o" 7a!aras!tra anara Bank entral Bank o" India orporation Bank 4ena Bank Indian Bank Indian %2erseas Bank %riental Bank o" ommerce P$n1a# 0 Sind Bank P$n1a# National Bank Syndicate Bank :nion Bank o" India :nited Bank o" India : % Bank Ji1aya Bank
Pri ate sector banks

AAis Bank +"ormerly :TI BankBank o" 5a1ast!an B!arat %2erseas Bank at!olic Syrian Bank ent$rion Bank o" P$n1a# +7erged wit! 84* #ankity :nion Bank 4e2elopment redit Bank 4!analaks!mi Bank *ederal Bank H$m"$ Blade Bank
1(
3anes! Bank o" H$r$ndwad 84* Bank I I I Bank Ind$sInd Bank IN3 Jysya Bank Camm$ 0 Has!mir Bank Harnataka Bank 'imited Har$r Jysya Bank Hotak 7a!indra Bank 'aks!mi Jilas Bank 'ord Hris!na Bank + now ent$rion Bank o" P$n1a#Nainital Bank Ned$ngadi Bank +now P$n1a# National Bank5atnakar Bank 5$pee Bank Saraswat Bank SBI ommercial and International Bank So$t! Indian Bank Tamilnad 7ercantile Bank 'td. T!ane Canata Sa!akari Bank Bassein at!olic Bank :nited ,estern Bank+ now I4BI BankKDS Bank
!oreign banks

ABN A75% Bank N.J. A#$ 4!a#i ommercial Bank 'td American DApress Bank Antwerp 4iamond Bank Ara# Banglades! Bank Bank International Indonesia Bank o" America
1.
Bank o" Ba!rain 0 H$wait Bank o" eylon Bank o" No2a Scotia Bank o" Tokyo 7its$#is!i :*C Barclays Bank BNP Pari#as alyon Bank !inaTr$st ommercial Bank !o 8$ng Bank iti#ank 4BS Bank 4e$tsc!e Bank 8SB +8ongkong 0 S!ang!ai Banking orporationCP7organ !ase Bank Hr$ng T!ai Bank 7as!re9 Bank 7i;$!o orporate Bank %man International Bank SociLtL 3LnLrale Standard !artered Bank State Bank o" 7a$riti$s Scotia Tai# Bank
Total> (( Banks.
"egional "ural #anks $""#s%

Ad!iyaman 3rama Bank Alaknanda 3ramin Bank Aligar! 3ramin Bank A2ad! 3ramin Bank Arya2art 3ramin Bank Balasore 3ramya Bank Ballia Hs!etriya 3ramin Bank
2/
Banaskant!a 7e!sana 3ramin Bank Bareilly Hs!etriya 3ramin Bank Baroda :ttar Prades! 3ramin Bank Bi1ap$r 3rameena Bank Bilasp$r=5aip$r Hs!etriya 3ramin Bank Bolangir Anc!alik 3ramya Bank B$ndelk!and Hs!etriya 3ramin Bank B$ndi !ittorgar! Hs!etriya3raminBank a$2ery 3rameena Bank !aitanya 3rameena Bank !am#al Hs!etriya 3ramin Bank !amparan Hs!etriya 3ramin Bank !!atrasal 3ramin Bank !!indwaraSeoniHs!etriya3raminBank !itrad$rga 3ramin Bank $ttack 3ramya Bank 4amo! Panna Sagar Hs!etriya 3ramin Bank 4e2ipatan Hs!etriya 3ramin Bank 4!enkanal 3ramya Bank 4$ngarp$r Banswara Hs!etriya 3ramin Bank Dlla9$ai 4e!ati Bank *arr$k!a#ad 3ramin Bank 3a$r 3ramin Bank 3$rgaon 3ramin Bank 8adoti Hs!etriya 3ramin Bank 8imac!al 3ramin Bank 8issar=Sirsa Hs!etriya 3ramin Bank Indore :11ain Hs!etriya 3ramin Bank Caip$r Naga$r Aanc!alik 3ramin Bank Camnagar 5a1kot 3ramin Bank Cam$na 3ramin Bank C!a#$a=4!ar Hs!etriya 3ramin Bank Hakat!iya 3rameena Bank Halpat!ar$ 3rameena Bank Hamra; 5$ral Bank
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Hanp$r Hs!etriya 3ramin Bank Hap$rt!ala *ero;p$r Hs!etriya 3ramin Bank Has!i 3omti Samy$t 3ramin Bank Hisan 3ramin Bank<B$da$n Holar 3ramin Bank Hris!na 3rameena Bank Hs!etriya 3ramin Bank< 8os!anga#ad H$tc! 3rameen Bank 7alapra#!a 3rameena Bank 7andla Balag!at Hs!etriya 3ramin Bank 7an1ira 3rameena Bank 7arwar 3anganagar Bikaner 3ramin Bank +Pre2io$sly > 7arwar 3ramin Bank7ewar Aanc!alik 3ramin Bank Nagar1$na 3rameena Bank Netra2ati 3rameena Bank Nimar Hs!etriya 3ramin Bank Nort! 7ala#ar 3ramin Bank Panc!ma!al Jadodara 3ramin Bank Pandyan 3rama Bank Pinakini 3rameena Bank Prag1yotis! 3aonlia Bank Prat!ama Bank 5aigar! Hs!etriya 3ramin Bank 5ani 'aks!mi Bai Hs!etriya 3ramin Bank 5atlam 7andsa$r Hs!etriya 3ramin Bank 5ayalaseema 3rameena Bank 5ewa=Sid!i 3ramin Bank Sa!yadri 3ramin Bank Samy$t Hs!etriya 3ramin Bank Sangames!wara 3rameena Bank S!a!1a!anp$r Hs!etriya 3ramin Bank S!i2p$ri 3$na Hs!etriya 3ramin Bank So$t! 7ala#ar 3ramin Bank Sree Anant!a 3rameena Bank
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Sri Saraswati 3rameena Bank Sri Jisak!a 3rameena Bank S$rat B!ar$c! 3ramin Bank T!ar Aanc!alik 3ramin Bank Trip$ra 3ramin Bank T$nga#!adra 3ramin Bank Jid$r 3ramin Bank
&ther Public Sector #ank
I4BI BANH
Fact File of "an2s in India@

T!e "irst #ank in India to #e gi2en an IS% erti"ication T!e "irst #ank in Nort!ern India to get IS% .//2 certi"ication "or t!eir selected #ranc!es T!e "irst Indian #ank to !a2e #een started solely wit! Indian capital T!e "irst among t!e pri2ate sector #anks in Herala to #ecome a sc!ed$led #ank in 1.4& $nder t!e 5BI Act IndiaEs oldest< largest and most s$ccess"$l commercial #ank< o""ering t!e widest possi#le range o" domestic< international and N5I prod$cts and ser2ices< t!ro$g! its anara Bank P$n1a# and Sind Bank P$n1a# National Bank So$t! Indian Bank State Bank o" India
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2ast network in India and o2erseas IndiaEs second largest pri2ate sector #ank and is now t!e largest sc!ed$led commercial #ank in India Bank w!ic! started as pri2ate s!are!olders #anks< mostly D$ropeans s!are!olders T!e "irst Indian #ank to open a #ranc! o$tside India in 'ondon in 1.4& and t!e "irst to open a #ranc! in continental D$rope at Paris in 1.)4 T!e oldest P$#lic Sector Bank in India !a2ing #ranc!es all o2er India and ser2ing t!e c$stomers "or t!e last 132 years T!e "irst Indian commercial #ank w!ic! was w!olly owned and managed #y Indians T!e *ederal Bank 'imited Imperial Bank o" India Bank o" India< "o$nded in 1./& in 7$m#ai Alla!a#ad Bank entral Bank o" India
Bank o" India was "o$nded in 1./& in 7$m#ai. It #ecame t!e "irst Indian #ank to open a #ranc! o$tside India in 'ondon in 1.4& and t!e "irst to open a #ranc! in continental D$rope at Paris in 1.)4.
Company Profile
STA3$AR$ C5ART6R6$ "A30

Standard C#artered "an2 is a Britis! #ank !ead9$artered in 'ondon wit! operations in more t!an se2enty co$ntries. It operates a network o" o2er 1<)// #ranc!es and o$tlets +incl$ding s$#sidiaries< associates and 1oint 2ent$res- and employs )3</// people.
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4espite its Britis! #ase< it !as "ew c$stomers in t!e :nited Hingdom and ./F o" its pro"its come "rom Asia< A"rica< and t!e 7iddle Dast. Beca$se t!e #ankEs !istory is entwined wit! t!e de2elopment o" t!e Britis! Dmpire its operations lie predominantly in "ormer Britis! colonies< t!o$g! o2er t!e past two decades it !as eApanded into co$ntries t!at !a2e !istorically !ad little Britis! in"l$ence. It aims to pro2ide a sa"e reg$latory #ridge #etween t!ese de2eloping economies. It now "oc$ses on cons$mer< corporate< and instit$tional #anking< and on t!e pro2ision o" treas$ry ser2icesMareas in w!ic! t!e 3ro$p !ad partic$lar strengt! and eApertise. Standard !artered is listed on t!e 'ondon Stock DAc!ange and t!e 8ong Hong Stock DAc!ange and is among t!e top 25 constit$ent mem#ers o" t!e *TSD 1// IndeA.
History
T!e name Standard !artered comes "rom t!e two original #anks "rom w!ic! it was "o$ndedMT!e !artered Bank o" India< A$stralia and !ina< and T!e Standard Bank o" Britis! So$t! A"rica. T!e !artered Bank was "o$nded #y Cames ,ilson "ollowing t!e grant o" a 5oyal !arter #y 6$een Jictoria in 1(53< w!ile T!e Standard Bank was "o$nded in t!e ape Pro2ince o" So$t! A"rica in 1(&2 #y Co!n Paterson. Bot! companies were keen to capitalise on t!e !$ge eApansion o" trade and to earn t!e !andsome pro"its to #e made "rom "inancing t!e mo2ement o" goods "rom D$rope to t!e Dast and to A"rica.
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In t!ose early years< #ot! #anks prospered. !artered opened its "irst #ranc!es in Bom#ay< alc$tta and S!ang!ai in 1(5(< "ollowed #y 8ong Hong and Singapore in 1(5.. ,it! t!e opening o" t!e S$e; anal in 1(&. and t!e eAtension o" t!e telegrap! to !ina in 1()1< !artered was well placed to eApand and de2elop its #$siness. In So$t! A"rica< Standard< !a2ing esta#lis!ed a considera#le n$m#er o" #ranc!es< was prominent in "inancing t!e de2elopment o" t!e diamond "ields o" Him#erley "rom 1(&) and later eAtended its network "$rt!er nort! to t!e new town o" Co!annes#$rg w!en gold was disco2ered t!ere in 1((5. 8al" t!e o$tp$t o" t!e second largest gold "ield in t!e world passed t!ro$g! T!e Standard Bank on its way to 'ondon. Bot! #anks N at t!at time still 9$ite separate companies N s$r2i2ed t!e *irst ,orld ,ar and t!e 4epression< #$t were directly a""ected #y t!e wider con"lict o" t!e Second ,orld ,ar in terms o" loss o" #$siness and clos$re o" #ranc!es. T!ere were also longer term e""ects "or #ot! #anks as co$ntries in Asia and A"rica gained t!eir independence in t!e O5/s and O&/s. Dac! !ad ac9$ired ot!er small #anks along t!e way and spread t!eir networks "$rt!er. In 1.&.< t!e #anks decided to merge< and to co$nter#alance t!eir eAisting network #y eApanding in D$rope and t!e :nited States< w!ile contin$ing t!eir eApansion in t!eir traditional markets in Asia and A"rica. All appeared to #e going well< w!en in 1.(& 'loyds Bank o" t!e :nited Hingdom made a !ostile takeo2er #id "or t!e 3ro$p. A"ter !a2ing de"eated t!e #id< Standard !artered entered a period o" c!ange. It made pro2isions against T!ird ,orld de#t eApos$re and loans to corporations and entreprene$rs w!o co$ld not meet
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t!eir commitments. It also #egan a series o" di2estments nota#ly in t!e :nited States and So$t! A"rica< and entered into a n$m#er o" asset sales. *rom t!e early 1../s< Standard !artered !as "oc$sed on de2eloping its strong "ranc!ises in Asia< A"rica and t!e 7iddle Dast< $sing its operations in t!e :nited Hingdom and Nort! America to pro2ide c$stomers wit! a #ridge #etween t!ese markets. Secondly< it wo$ld "oc$s on cons$mer< corporate and instit$tional #anking and on t!e pro2ision o" treas$ry ser2ices = areas in w!ic! t!e 3ro$p !ad partic$lar strengt! and eApertise. Since 2///< Standard !artered !as ac!ie2ed se2eral milestones wit! a n$m#er o" strategic alliances and ac9$isitions.
"ecent 'lliances and Strategic 'c(uisitions

In 2///< Standard !artered ac9$ired 3rindlays Bank "rom ANP Bank< increasing its presence in pri2ate #anking and "$rt!er eApanding its operations in India and Pakistan. Standard !artered retained 3rindlaysE pri2ate #anking operations in 'ondon and '$Aem#o$rg and t!e s$#sidiary in Cersey< all o" w!ic! it integrated into its own pri2ate #ank. T!is now ser2es !ig! net wort! c$stomers in 8ong Hong< 4$#ai< and Co!annes#$rg $nder t!e name Standard !artered 3rindlays %""s!ore *inancial Ser2ices. In India< Standard !artered integrated most o" 3rindlaysE operations< making Standard !artered t!e largest "oreign #ank in t!e co$ntry< despite Standard !artered !a2ing c$t some #ranc!es and !a2ing red$ced t!e sta"" "rom 55// to 35// people. %n 15t! April 2//5< t!e #ank ac9$ired Horea *irst Bank< #eating 8SB in t!e #id. Since t!en t!e #ank !as re#randed t!e #ranc!es as S *irst Bank. Standard !artered completed t!e integration o" its Bangkok #ranc! and Standard !artered Nakornt!on Bank in %cto#er<
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renaming t!e new entity Standard !artered Bank +T!ailand-. Standard !artered also "ormed strategic alliances wit! *leming *amily 0 Partners to eApand pri2ate wealt! management in Asia and t!e 7iddle Dast< and ac9$ired stakes in A B Jietnam< Tra2eleA< American DApress Bank in Banglades! and Bo!ai Bank in !ina. %n .t! A$g$st 2//& Standard !artered anno$nced t!at it !ad ac9$ired an (1F s!are!olding in t!e :nion Bank o" Pakistan in a deal $ltimately wort! Q511 million. T!is deal represented t!e "irst ac9$isition #y a "oreign "irm o" a Pakistani #ank and t!e merged #ank< Standard !artered Bank +Pakistan-< is now PakistanEs siAt! largest #ank. %n 22 %cto#er< 2//& Standard !artered anno$nced t!at it !as recei2ed tenders "or more t!an 51 per cent o" t!e iss$ed s!are capital o" 8sinc!$ International Bank +R8sinc!$S-< esta#lis!ed in 1.4( in 8sinc!$ pro2ince in Taiwan. Standard !artered< w!ic! !ad "irst entered Taiwan in 1.(5< ac9$ired ma1ority owners!ip o" t!e #ank< TaiwanTs se2ent! largest pri2ate sector #ank #y loans and deposits as at 3/ C$ne< 2//&. Standard !artered merged its eAisting t!ree #ranc!es wit! 8sinc!$Es (3< and t!en delisted 8sinc!$ International Bank< c!anging t!e #ankEs name to +Standard !artered Bank +Taiwan'imited-. Prior to t!e merger< 8sinc!$ !ad s$""ered eAtensi2e losses on de"a$lted credit card de#t. In 2//&< Standard !artered in Banglades! anno$nced an alliance wit! 4$tc! Bangla Bank to s!are t!eir respecti2e AT7 operations. %n 23 A$g$st< 2//) Standard !artered entered into an agreement to #$y a 4. percent o" an Indian #rokerage "irm +:TI Sec$rities"or Q3& million in cas! "rom Sec$rities Trading orporation o" India 'td.< wit! t!e option to raise its stake to )5 percent in 2//( and< i" #ot! partners agree< to 1// percent #y 2/1/. :TI Sec$rities
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o""ers #roking< wealt! management and in2estment #anking ser2ices across &/ Indian cities. %n 2.t! *e#r$ary 2//(< Standard !artered P' anno$nced it !as recei2ed all t!e re9$ired appro2als leading to t!e completion o" its ac9$isition o" American DApress Bank 'td +ADB- "rom t!e American DApress ompany +AUP-. T!e total cas! consideration "or t!e ac9$isition is :SQ (23 million. T!e ac9$isition o" ADB pro2ides Standard !artered wit! an opport$nity to add capa#ility< scale and moment$m in t!e strategically important *inancial Instit$tions and Pri2ate Banking #$sinesses. It will add 1. more markets to t!e Standard !artered "ootprint< w!ile deepening presence in some core markets and pro2iding access to se2eral new growt! markets.
Position today
Today< t!e #ank is a leading player t!ro$g!o$t t!e de2eloping world. Standard !artered Bank is one o" t!e t!ree #anks iss$ing #anknotes "or 8ong Hong +Standard !artered Bank +8ong Hong'imited #ecame a note=iss$ing #ank "rom 2//4-< t!e ot!er two #eing t!e Bank o" !ina +8ong Hong- and T!e 8ongkong and S!ang!ai Banking orporation. T!e #ank s$pports marat!ons in many cities< incl$ding 'ondon +T!e ity 5$n-< Cersey< Singapore< 4$#ai< 'a!ore< 7$m#ai< 8ong Hong< and Nairo#i.
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Standard C#artered Global Presence
Standard !artered 3lo#al Presence T!e Americas

A"rica

Asia

7iddle=Dast A"g!anistan A$stralia Banglades! Br$nei am#odia !ina 8ong Hong India Indonesia Capan

D$rope
Argentina Ba!amas Bra;il anada olom#ia 7eAico Per$ :S Jene;$ela
Botswana ameroon 3am#ia 3!ana I2ory oast Henya Nigeria Sierra 'eone So$t!
Ba!rain Cordan 'e#anon %man 6atar :AD
T!e *alklands +classi"ied as BD$ropeB "or Standard !artered p$rposesIreland Cersey Swit;erland T$rkey
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A"rica Tan;ania :ganda Pam#ia Pim#a#we
'aos 7ac$s 7alaysia 7a$riti$s Nepal Pakistan P!ilippines Singapore So$t! Horea Sri 'anka Taiwan T!ailand Jietnam
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Standard C#artered "an2 !imited India

T!e Standard !artered 3ro$p was "ormed in 1.&. t!ro$g! a merger o" two #anks> T!e Standard Bank o" Britis! So$t! A"rica "o$nded in 1(&3 and t!e !artered Bank o" India< A$stralia and !ina< "o$nded in 1(53. T!e !artered Bank opened its "irst o2erseas #ranc! in India< at Holkata< on 12 April 1(5(. In 1.&.< t!e decision was made #y !artered and #y Standard to $ndergo a "riendly merger. T!e 3rindlays Bank "rom t!e ANP 3ro$p and t!e !ase ons$mer Banking operations in 8ong Hong were ac9$ired in 2///. "usiness of t#e Company>
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'isted on #ot! t!e 'ondon Stock DAc!ange and t!e 8ong Hong Stock DAc!ange< Standard !artered P' is consistently ranked in t!e top 25 *TSD 1// companies #y market capitali;ation. Personal "an2ing> %""ers personal "inancial sol$tions to meet t!e needs o" more t!an 14 million c$stomers across Asia< A"rica and t!e 7iddle Dast t!ro$g! a glo#al network o" o2er 1<)// #ranc!es and o$tlets. SM6 "an2ing> T!e di2ision o""ers a wide range o" prod$cts and ser2ices to !elp small and medi$m=si;ed enterprises manage t!e demands o" a growing #$siness. A#olesale "an2ing> 8ead9$artered in Singapore and 'ondon< pro2ides corporate and instit$tional clients wit! inno2ati2e sol$tions in trade "inance< cas! management< sec$rities ser2ices< "oreign eAc!ange and risk management< capital rising< and corporate "inance.
Islamic "an2ing> Standard !artered Saadi9Es dedicated Islamic Banking team pro2ides compre!ensi2e international #anking ser2ices and a wide range o" S!aria! compliant "inancial prod$cts t!at are #ased on Islamic 2al$es. Private "an2ing> Pro2ides c$stomi;ed sol$tions to meet t!e $ni9$e needs and aspirations o" !ig! net wort! clients. Special features@
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Besides Dconomic contri#$tion t!e #ank pro2ides ser2ices to protect en2ironment< spread social #ene"its o" economic growt! and contri#$tes to #etter go2ernance.
I3T6R6ST RAT6S ,it! a wide 2ariety o" options to s$it di""erent needs< incl$ding S!ort Term 4eposit< 5ein2estment 4eposit< Simple *iAed 4eposit and 7ont!ly Income Plan< t!ey can #e opened #y indi2id$als< proprietors< partners!ip and limited companies< societies< cl$#s< associations and 8:*s.
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In case yo$ need to wit!draw amo$nts in eAcess o" w!at is a2aila#le in yo$r transaction acco$nt< we will #reak yo$r deposit "or t!e eAact amo$nt yo$ re9$ire. T!e rest o" t!e deposit contin$es earning t!e original !ig! interest. 1. Tenor ranges "rom 15 days to 5 years +*or deposits o" 5s. 15 'ak!s and a#o2e< minim$m tenor is ) days2. %ptions o" simple interest and compo$nd interest 3. A$to renewal "acility 4. %2erdra"t "acility a2aila#le against deposit 5. Pre"erential rates gi2en "or large 2al$e deposits o" 5s.15 'ak!s and a#o2e
" SI36SS I3SIG5TS 7F STA3$AR$ C5ART6R6$
Turnover@ Net re2en$e> :SQ5.3) #illion +2//4-
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Core Service@ Standard !artered is listed on #ot! t!e 'ondon Stock DAc!ange and t!e Stock DAc!ange o" 8ong Hong and is in t!e top 25 *TSD=1// companies< #y market capitali;ation. It ser2es #ot! ons$mer and ,!olesale Banking c$stomers. ons$mer Banking pro2ides credit cards< personal loans< mortgages< deposit taking and wealt! management ser2ices to indi2id$als and small to medi$m si;ed enterprises. ,!olesale Banking pro2ides corporate and instit$tional clients wit! ser2ices in trade "inance< cas! management< lending< c$stody< "oreign eAc!ange< de#t capital markets and corporate "inance. 6mployees@ Standard !artered employs 3(</// people in o2er .5/5 locations in 5& co$ntries and territories in t!e Asia Paci"ic 5egion< So$t! Asia< t!e 7iddle Dast< A"rica< t!e :nited Hingdom and t!e Americas. It is one o" t!e worldEs most international #anks< wit! a management team comprising )/ nationalities. Bision@ B%$r goal is simple = ,e want to #e ET!e ,orldEs Best International BankE.
TRA3SF7RMATI73 T!e Bank clearly states its commitment to making a di""erence in t!e comm$nities in w!ic! it operates. D2idence o" t!is is demonstrated on t!e companyTs we#site t!ro$g! t!e wide array o" comm$nity pro1ects it is engaged in< across t!e world. As !ris Smit!< 8ead o" orporate 5esponsi#ility eAplains@ C7ur 1or2 in t#e community is a maDor part of our overall approac# to Corporate Responsibility: nderstanding #o1 1e are able to contribute to t#e sustainable economic development of t#e communities 1e operate in is also fundamental to our business.
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omm$nity in2estment in emerging markets T!is is t!e area w!ere Standard role. !artered !as taken a leaders!ip
RT!e iss$e o" po2erty !as a direct economic impact on o$r #$siness. I" we are a#le to remo2e people "rom po2erty t!ey potentially #ecome a 2ia#le c$stomer o" t!e #ank<S says< !ris Smit!. T#e "an2 set up t#e Community Partners#ip for Africa in ,''- 1it# an annual budget for Africa of SE-million 1#ic# #as subse=uently risen to SE-/ + million: T!e Partners!ip is tasked wit! de2eloping comm$nity partners!ips< #ased on donation g$idelines o" yo$t!< !ealt! and ed$cation "or t!e economically disad2antaged. Fust some of t#e proDects t#at t#e "an2 #as engaged in 1it#in t#is partners#ip@

Botswana> 8o$se=#$ilding initiati2e +5ecei2ed acclaim "rom national organi;ation< 8a#itat "or 8$manityHenya> omm$nity R lean $pS acti2ities< in2ol2ing sta"". :ganda> A comm$nity pro1ect< w!ic! aims to pre2ent 7alaria transmission t!ro$g! donation and awareness campaign on Insecticide Treated Nets +ITNEs-.
S7CIA! R6SP73SI"I!ITI6S T!e company !as !istorically #een 2ery acti2e in its social responsi#ility acti2ities< s$c! as t!ro$g! its programmes to #elp blind and partially sig#ted people/ employees suffering from or
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#aving to deal 1it# t#e effects of 5IB G AI$S in t#eir communities and ot#er education%focused programmes: T!e Bank !as #een recogni;ed "or its e""orts t!ro$g! awards and eAternal recognition. T!e company !as #eg$n taking a more strategic approac! to its acti2ities t!ro$g! more care"$l meas$rement and monitoring o" acti2ities. T!is is ens$ring it deli2ers more e""ecti2ely to its #$siness o#1ecti2es and to t!e comm$nities in w!ic! it operates. "usiness in t#e Community gained input from t#e "an2 on #o1 it felt its programmes #ad impacted on t#e business and on t#e communities it served@

Strengt#ened relations#ips 1it# local Governments and local aut#orities Improved relations#ips 1it# customers and suppliers/ attracting new c$stomers< incl$ding a !ig! amo$nt o" donor in"low "$nds c!anneled t!ro$g! t!e Bank as a res$lt o" t!e newly esta#lis!ed initiati2es !ong term sustainable programmes 1ere establis#ed t#at addressed p#ysical needs of local people/ including electricity/ s#elter and 1ater/ educational needs including material and e=uipment and #ealt#care facilities and e=uipment ProDects set up t#at 1ere income generating to enable local communities to #elp t#emselves
SA7T A3A!9SIS@
-: 6<pansion of Standard C#artered@ *rom t!e early ./s< Standard !artered !as "oc$sed on de2eloping its strong "ranc!ises in Asia< t!e 7iddle Dast and A"rica $sing its
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operations in t!e :nited Hingdom and Nort! America to pro2ide c$stomers wit! a #ridge #etween t!ese markets. Secondly< it wo$ld "oc$s on cons$mer< corporate and instit$tional #anking< and on t!e pro2ision o" treas$ry ser2ices N areas in w!ic! t!e 3ro$p !ad partic$lar strengt! and eApertise. In t!e new millenni$m t!ey ac9$ired 3rindlays Bank "rom t!e ANP 3ro$p and t!e !ase ons$mer Banking operations in 8ong Hong in 2///. ,: Strategic Alliances and Ac=uisitions@
*or eAtending t!e c$stomer or geograp!ic reac! and #roadening t!e prod$ct range standard c!artered !ad done a no. o" strategic alliances 0 ac9$isitions. T!ey completed< re#randed and s$ccess"$lly integrated S *irst Bank in Horea< w!ic! to date is t!e #iggest ac9$isition in o$r !istory. T!ey completed "$ll integration #etween Standard !artered Bank T!ailand and Standard !artered Nakornt!on Bank. T!ey "ormed strategic alliances wit! *leming *amily 0 Partners to eApand pri2ate wealt! management in Asia and t!e 7iddle Dast T!ey ac9$ired stakes in A B Jietnam and Tra2eleA T!ey ac9$ired t!e #$siness operations o" American DApress Bank in Banglades! T!ey ac9$ired a stake in Bo!ai Bank in Tian1in< !ina< making $s t!e "irst "oreign #ank to #e allowed a stake in a local #ank in !ina.
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Problem Statement@
To $nderstand t!e #e!a2ior pattern o" people o" di""erent age gro$ps< incomes and occ$pations wit! respect to t!e in2estment t!ey make t!ere#y.
7bDective@
To make a comparison o" di""erent in2estment prod$cts disc$ssed a#o2e. T!is will ena#le t!e in2estors to in2est
3.
in t!e in2estment prod$cts w!ic! are most s$ited to t!em. T!is s!all #e done wit! t!e !elp o" cond$cting a s$r2ey taking a sample si;e o" 44 people.
Investment Strategies of General Public

T!e tasks in !and "or $s were to $nderstand> ,!at In2estments do people pre"er? 8ow m$c! risk do t!ey want to take? T!e %#1ecti2e o" In2estments? T!e Satis"action attained "rom In2estments? Ten$re o" In2estment? 4epending :pon T!eir> Income< Age<
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SeA< %cc$pation.
,e !ad to analy;e t!e a#o2e mentioned Trends #e!ind peopleTs In2estments depending on t!e a#o2e mentioned *actors so t!at we can $nderstand w!ic! In2estments s$its w!ic! kind o" an In2estor.
$ata collection and Researc#@

*or t!is we made a 9$estionnaire and cond$cted a s$r2ey o" people. ,e took a sample o" si;e 44 t!ro$g! random sampling o" di""erent age gro$ps and occ$pations and #y doing t!e analysis we will #e a#le to "ind o$t t!e pattern on w!ic! c$stomers c!oose respecti2e In2estments and also to $nderstand t!eir needs #etter .
Investment Strategy Huestionnaire

+Please 7ark t!e appropriate %ption-
Name> Age> + -Below 25< + -25 to 4/< + -4/ to &/< + -A#o2e &/. Income> + -Below 1<5/</// + -A#o2e &<5/</// %cc$pation> + -1<5/</// to 4<//</// + -4<//</// to &<5/<///
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+ -Pri2ate Sector Dmployee< + -3o2t. Dmployee< Dmployed< + -%t!ersVVVV..
+ -B$sinessman@Sel"
Ko$r Pre"erred Area o" In2estment> + -7$t$al *$nds< + -:'IP< + -S!ares@4e#ent$res< + -5eal Dstate< + -'i"e Ins$rance Policies< + -B$llion< + -*iAed 4eposits< + -%t!ersVVV... 5isk 'e2el $ndertook> + -'ow< + -7edi$m< + -8ig!. %#1ecti2e o" In2estment> + -3rowt!@5et$rn< + -Sa2ings< + -%t!ersVVVV + -TaA Sa2ings< + - !ild 7arriage<
Ten$re> + -'ess t!an 1 yr< + -1 yr to 3 yrs< + -3yrs to 5 yrs< + -7ore t!an 5 yrs. 'e2el o" Satis"action wit! In2estments> + -'ow< + -7edi$m< + -8ig!.
$ata Profile
42
Gender Profile
36.36% Female Male 63.64%
Income Profile
2.27%
27.27% 29.55%
1.5L to 4L 4L to 6.5L Above 6.5L Below 1.5L
40.91%
43
7ccupation Profile
4.55%
36.36% Business !el" #m$lo%e& 'ove(nment #m$lo%ee 40.91% )(ivate !e*to( #m$lo%ee +eti(e& 18.18%
Preferred Investment Profile

4.55% 4.55% 11.36% 11.36% Bullion 6.82% Fi,e& -e$osits .isan /i0as )at(a Li"e 1nsu(an*e )oli*ies 25.00% 9.09% Mutual Fun&s +eal #state !2a(es -ebentu(es 27.27% 3L1)
44
Ris2 Profile
6.82%
45.45%
4i52 Low 47.73% Me&ium
7bDective Profile
11.36% 22.73% 62il& Ma((ia5e '(owt2 +etu(ns 7A 9.09% 50.00% 2.27% 4.55% !a"et% !avin5s 8a, !avin5s
45
Tenure Profile
27.27% 45.45% 1 to 3 9(s 3 to 5 9(s Less t2an 1 9( 9.09% 18.18% Mo(e t2an 5 9(s
Satisfaction !evel Profile
38.64% 4i52 56.82% Low Me&ium
4.55%
4&
Findings of t#e Researc#@

-: Relations#ip bet1een Age & Tenure
6ount A5e A5e 25 to 40 40 to 60 Above 60 Below 25 '(an& 8otal o" 8enu(e 1 to 3 9(s 7 4 2 7 20 3 to 5 9(s 3 2 1 2 8 Less t2an 1 9( 2 Mo(e t2an 5 9(s 6 3 2 1 12 '(an& 8otal 18 9 5 12 44
2 4
-(o$ )a5e Fiel&s 4e(e

6ount o" A5e
20 18 16 14 12 10 8 6 4 2 0
8enu(e Mo(e t2an 5 9(s Less t2an 1 9( 3 to 5 9(s 1 to 3 9(s
25 to 40
40 to 60 A5e
Above 60
Below 25
4)
,: Relation bet1een Income & Ris2

6ount o" 1n*ome 1n*ome 1.5L to 4L 4L to 6.5L Above 6.5L Below 1.5L '(an& 8otal +is0 4i52 1 2 3
Low 7 11 3 21
Me&ium 4 7 8 1 20
'(an& 8otal 12 18 13 1 44

6ount o" 1n*ome 20 18 16 14 12 10 8 6 4 2 0 1.5L to 4L 4L to 6.5L 1n*ome Above 6.5L Below 1.5L +is0 Me&ium Low 4i52
4(
4: Relation Satisfaction
6ount o" )(e"e((e& 1nvestment )(e"e((e& 1nvestment Bullion Fi,e& -e$osits .isan /i0as )at(a Li"e 1nsu(an*e )oli*ies Mutual Fun&s +eal #state !2a(es -ebentu(es 3L1) '(an& 8otal
bet1een
Investment
&
!atis"a*tion 4i52 3 1 1 6 5 1 17
Low 1
1 2
Me&ium 1 2 2 3 6 6 4 1 25
'(an& 8otal 2 5 3 4 12 11 5 2 44

6 ount o" ) (e"e(e& 1nvestm ent 14 12 10 8 6 4 2 Li"e 1nsu(an*e +eal #state Bullion 3L1) 0 !2a(es -ebentu(es .isan /i0as )at(a Fi,e& -e$osits Mutual Fun&s !atis"a*tion M e&ium Low 4 i52
) (e"e(e& 1nvestm ent
)oli*ies
4.
I: Relation bet1een Age of Investor and 7bDective of Investment

6ount A5e A5e 25 to 40 40 to 60 Above 60 Below 25 '(an& 8otal o" :b;e*tive 62il& Ma((ia5e 2 1 2 '(owt2 +etu(ns 9 6 2 5 22 7A 2 !a"et% !avin5s 2 8a, !avin5s 3 2 5 10 '(an& 8otal 18 9 5 12 44
1 2 2 1 4

6ount o" A5e
20 18 16 14 12 10 8 6 4 2 0
:b;e*tive 8a, !avin5s !avin5s !a"et% 7A '(owt2 +etu(ns 62il& Ma((ia5e
25 to 40
40 to 60 A5e
Above 60
Below 25
5/
+: Relation bet1een Investment & Tenure
6ount o" 1nvestment
)(e"e(e& 8enu(e 1 to 3 9(s 2 3 1 1 8 3 2 20 3 to 5 9(s 1 1 3 3 1 5 3 8 4 2 12 Less t2an 1 9( Mo(e t2an 5 9(s 1 1 3 '(an& 8otal 2 5 3 4 12 11 5 2 44
)(e"e(e& 1nvestment Bullion Fi,e& -e$osits .isan /i0as )at(a Li"e 1nsu(an*e )oli*ies Mutual Fun&s +eal #state !2a(es -ebentu(es 3L1) '(an& 8otal

6ount o" )(e"e(e& 1nvestment 8enu(e Mo(e t2an 5 9(s Less t2an 1 9( 3 to 5 9(s 1 to 3 9(s
14 12 10 8 6 4 2 0
Mutual Fun&s
Bullion
Fi,e& -e$osits
.isan /i0as )at(a
Li"e 1nsu(an*e )oli*ies
+eal #state
)(e"e(e& 1nvestment
!2a(es -ebentu(es
3L1)
51
.: Relation bet1een Investment and 7ccupation
6ount o" :**u$ation :**u$ation Business !el" #m$lo%e& 'ove(nment #m$lo%ee )(ivate !e*to( #m$lo%ee +eti(e& '(an& 8otal Mutual Fun&s 2 10 12
)(e"e(e& 1nvestment Bullion 1 1 2 +eal #state 5 4 1 1 11
Fi,e& -e$osits 1 1 2 1 5 !2a(es -ebentu(es 3 2 5
.isan /i0as )at(a 1 2 3 3L1) 1 1 2
Li"e 1nsu(an*e )oli*ies 2 1 1 4 '(an& 8otal 16 8 18 2 44

20 18 16 14 12 10 8 6 4 2 0 6ount o" :**u$ation )(e"e(e& 1nvestment 3L1) !2a(es -ebentu(es +eal #state Mutual Fun&s Li"e 1nsu(an*e )oli*ies .isan /i0as )at(a Fi,e& -e$osits Bullion Business !el" #m$lo%e& 'ove(nment #m$lo%ee )(ivate !e*to( #m$lo%ee +eti(e&
:**u$ation
52
(: Relation bet1een Age of Investor & Tenure
6ount A5e A5e 25 to 40 40 to 60 Above 60 Below 25 '(an& 8otal
o" 8enu(e 1 to 3 9(s 7 4 2 7 20 3 to 5 9(s 3 2 1 2 8 Less t2an 1 9( 2 Mo(e t2an 5 9(s 6 3 2 1 12 '(an& 8otal 18 9 5 12 44
2 4

6ount o" A5e
20 18 16 14 12 10 8 6 4 2 0
8enu(e Mo(e t2an 5 9(s Less t2an 1 9( 3 to 5 9(s 1 to 3 9(s
25 to 40
40 to 60 A5e
Above 60
Below 25
53
J: Relation bet1een Age of Investor & 7bDective of Investment

6ount A5e A5e 25 to 40 40 to 60 Above 60 Below 25 '(an& 8otal o" :b;e*tive 62il& Ma((ia5e 2 1 2 '(owt2 +etu(ns 9 6 2 5 22 7A 2 !a"et% !avin5s 2 8a, !avin5s 3 2 5 10 '(an& 8otal 18 9 5 12 44
1 2 2 1 4

6ount o" A5e 20 18 16 14 12 10 8 6 4 2 0 25 to 40 40 to 60 A5e Above 60 Below 25 :b;e*tive 8a, !avin5s !avin5s !a"et% 7A '(ow t2 +etu(ns 62il& Ma((ia5e
54
): Relation bet1een 7bDective of Investment
Investment
&
6ount o" 1nvestment
)(e"e(e& :b;e*tive 62il& Ma((ia5e 1 1 2 1 5 7 8 5 22 1 1 1 10 8a, !avin5s '(an& 8otal 2 5 3 4 12 11 5 2 44
)(e"e(e& 1nvestment Bullion Fi,e& -e$osits .isan /i0as )at(a Li"e 1nsu(an*e )oli*ies Mutual Fun&s +eal #state !2a(es -ebentu(es 3L1) '(an& 8otal
'(owt2 +etu(ns 2
7A
!a"et% 1
!avin5s 3 1
3 1 5
55

6ount o" )(e" e(e& 1nvestment 14 12 10 8 6 4 2 0 Bullion +eal #state 3L1) Fi,e& -e$osits .isan /i0as )at(a Li"e 1nsu(an*e )oli*ies Mutual Fun&s !2a(es -ebentu( es :b;e*tive 8a, !avin5s !av in5s !a" et% 7A '(ow t2 +etu(ns 62il& Ma((ia5e
)(e" e(e& 1nvestment
5&
Anot#er one of our Assignments 1as to compare t#e services and products offered by different "an2s from one anot#er:
Met#odology &Problem $efinition/ Researc# G $ata Collection*

$etailed Features 7f Savings AGc A2erage 6$arterly Balance+A6B6$arterly Statement 7ont!ly Statement Pass Book Personalised !e9$e Book 7$lticity !e9$e Book ATM C#arges %wn AT7s wit!in India %t!er AT7s wit!in India AT7s %$tside India $ebit Card C#arges 1st Kear *ee Ann$al *ee Per ard Reissuance C#arges AT7 ard 4e#it ard !arges "ranc# Transaction C#arges as! 4eposit@,it!drawal 4emand 4ra"t %$tstation !e9$e ollection 7aAim$m ,it!drawal 'imit ni=ue Feature
5)
"A30S ICICI 5s1/</// *ree 5s2//@yr *ree 1st is *ree<5s5/ Per Additional @B NA *ree 5s2/ Per Transaction NA 5s.. 5s.. *ree 5s2// 5s5/ Per Transaction at Base Branc!< 5s5/+7in- I" 4rawn on I I I Bank *ree 5s5/<///@day=Sel" 5s15<///@day=T!ird Party :nlimited AT7 Transaction
5$FC 5s5</// *ree *ree

5(
*ree NA NA *ree 5s2/ Per Transaction NA 5s1// NA 5s1// 5s1// NA 5s5/ :p to 1/</// at Base Branc! *ree 5s5/<///@day=Sel" No Balance 5e9$ired %n 1<//</// *.4
07TA0 5s1/</// ,eekly 5eport=5s3//@6$arter 4aily 5eport=5s15//@6$arter *ree *ree NA
5.
*ree+Incl$ding 84* 5s2/ Per Transaction 5s./ *ree NA 5s1// 5s1// NA 5s5/ +7in- or 5s2.5/ Per 1/// a"ter t!at. *oreign 5s5// *ree 5s25<///=Sel" Hotak 2=,ay Sweep Bene"it $rrency 4@4=
A"3%AMR7 5s1//// *ree *ree *ree 5s5/ NA *ree 5s2/ Per Transaction 5s12/
&/
5s1(/ NA NA 5S2// NA 5s5/ I" 4rawn on ABN=A75% Branc!es. *oreign 4@4=5s2// 5s5/+7in- or /.25F o" T!e Transaction Amo$nt NA $rrency
Standard C#artered 5s1/</// *ree *ree *ree *ree *ree *ree 5s2/ Per Transaction
5S"C 5s25</// *ree *ree *ree *ree NA AT7 4ay NA as! ,it!drawal 'imit=5s25</// Per
&1
5s14/ 5s2// 5s2// 5s1// 5s2// 5s5/ 5s5/ *ree NA
NA 4e#it 4ay NA NA NA NA NA NA NA ard P$rc!ase 'imit=5s1/</// Per
Products 7ffered by Standard C#artered "an2

-: Accounts
a* Savings Account@
i: aKcess Plus Account@
Standard !artered BankEs aUcess Pl$s is a re2ol$tionary sa2ings acco$nt t!at pro2ides yo$ wit! $nstinted aUcess to yo$r money. Features DAcl$si2e #ene"its o" an aUcess Pl$s sa2ings acco$nt> *5DD :nlimited Jisa AT7 transactionsW + as! wit!drawal *5DD Standard !artered Bank #ranc! access across t!e co$ntry
&2
*5DD 4oorstep BankingW *5DD 4emand 4ra"ts@Pay %rdersW +drawn at S B locations *5DD Paya#le at Par !e9$e #ook WA2aila#le on maintenance o" a2erage 9$arterly #alance o" 5s 15<///@=
Additional Features 3et instant cas! at o2er 2/</// AT7s across India and o2er 1/<//</// AT7s across t!e world t!ro$g! t!e Jisa network. And get a glo#ally 2alid 4e#it ard t!at lets yo$ s!op at o2er 3<2&</// o$tlets in India and at o2er 14 million o$tlets across t!e world. And t!atTs not all< wit! t!e aUcess Pl$s acco$nt yo$ also get> International 4e#it ard P!one Banking %nline Banking DAtended Banking 8o$rs WTerms and onditions apply. ertain "eat$res are c$rrently not a2aila#le in all #ranc!es T!e Standard !artered aUcessPl$s Acco$nt comes wit! a glo#ally 2alid de#it = c$m = AT7 card w!ic! allows c$stomers to aUcess all Standard !artered Bank AT7s and pro2ides instant cas! at all Jisa Network AT7s in India and a#road. aUcessPl$s c$stomers get *5DDW aUcess to cas! wit!drawals at o2er 2/</// Jisa AT7s in India $p to "o$r "ree transactions per mont!. T!is is o2er and a#o2e $nlimited "ree aUcess to all Standard !artered Bank AT7s. T!e 4e#it ard can #e $sed to make p$rc!ases at o2er 3<2&</// merc!ant o$tlets in India.
&3
ii: Super Balue Account

T!e $ni9$e S$perJal$e sa2ings acco$nt "rom Standard !artered is proo" t!at t!e #est t!ings in li"e come "ree. ,it! an a2erage 9$arterly #alance o" 1$st 5s. 5/<///< yo$ get a !ost o" ser2ices "rom Standard !artered a#sol$tely "ree.
iii: Parivaar Account

Pari2aar is a $ni9$e ,ealt! 7anagement Sol$tion "rom Standard !artered Bank t!at o""ers yo$r "amily "leAi#ility< con2enience and essential tools "or wealt! acc$m$lation and preser2ation.
iv: 3o Frills Account

I" yo$ want #anking made easy< we gi2e simple sol$tions. T!e Standard !artered Bank No *rills Acco$nt is designed to meet yo$r #asic #anking re9$irements. Ko$ need to maintain an a2erage 9$arterly #alance o" 1$st 5s. 25/ wit! t!is acco$nt. ,!atTs more N yo$ can a2ail o" Anyw!ere Banking< #y w!ic! yo$ can access yo$r acco$nt "rom any #ranc! o" Standard !artered Bank in India.
v: aaSaan Account
Introd$cing t!e Standard !artered BankEs aaSaan sa2ings acco$nt. It is a no maintenance< !assle "ree and easy sol$tion to all yo$r #anking needs.
vi:
, in - Account
Introd$cing a $ni9$e acco$nt t!at o""ers yo$ a do$#le ad2antage N it lets yo$ earn t!e !ig! interest rate o" a "iAed deposit w!ile yo$ en1oy t!e "leAi#ility o" a sa2ings or c$rrent acco$nt.
&4
b* Current aGc
i* "usiness Plus Account
Standard !artered Bank presents t!e B$siness Pl$s Acco$nt. A c$rrent acco$nt t!at !elps yo$ get more o$t o" yo$r #$siness.
ii* 6n#anced "usiness Plus Account

Ko$ r$n yo$r #$siness e""iciently< and e""ecti2ely. T!atEs w!y yo$ need a c$rrent acco$nt t!at does t!e same. T!e Dn!anced B$siness Pl$s Acco$nt "rom Standard !artered is designed to make #etter #$siness sense and make yo$r money work most e""ecti2ely. ItEs all yo$ !a2e e2er wanted "rom a c$rrent acco$nt and more. D2ery #$siness !as di""erent needs and compleAities. T!atEs w!y t!e Dn!anced B$siness Pl$s Acco$nt !as #een de2eloped to s$it yo$r #$siness needs.
,: Credit Cards@
It offers a variety of credit cards, each tailored to your lifestyle needs. DAamples> a- DAec$ti2e ard is designed "or t!e pro"essional on t!e mo2e. ItTs a card t!at tra2els like yo$ do. #- 3old ard is "or special deals at yo$r "a2orite resta$rants< pri2ileged access to eAcl$si2e areas w!en yo$Tre tra2eling< worldwide acceptance.
4: $ebit & Prepaid Cards@

It o""ers 4e#it cards. DAamples> a- S!opSmart ard gi2es $nparalleled aUcess to yo$r money.
&5
#- 3old 4e#it ard incl$des pri2ileges like !ig! spending limits and worldwide acceptance.
I: !oans & Mortgages@

It o""ers wide range o" loans> DAample a- Personal 'oan> Best s$ited "or people re9$iring loan "or any re9$irement w!atsoe2er t!at too at competiti2e interest rates. 'oan amo$nt ranges "rom 5/</// to 15<//<///. No collaterals or sec$rities are re9$ired. Any S B c$stomer can a2ail o" special rates wit! less doc$mentation and priority processing. %t!er 'oans are 8ome loans< 'oan against property< 'oan against sec$rities etc.
+: Insurance & Investment Services

Standard !artered o""ers yo$ a wide range o" 'i"e Ins$rance Prod$cts "rom Ba1a1 Allian; 'i"e Ins$rance ompany< one o" IndiaEs leading Ins$rance companies. At Standard !artered< yo$ can a2ail o" t!e ser2ices o" trained 0 certi"ied pro"essional cons$ltants "rom Ba1a1 Allian; Ins$rance company< w!o can g$ide yo$ in ascertaining yo$r ins$rance needs< and assist yo$ in making an ins$rance plan t!at is 1$st rig!t "or yo$. Some o" t!e key plans are> a- New Sec$re*irst>An in2estment t!at o""ers do$#le ad2antage wit! "leAi#ility. #- New :nit 3ain Pl$s>*leAi#le in2estments ne2er so easy. ,e o""er t!e range o" inno2ati2e general Ins$rance prod$cts in association wit! 5oyal S$ndaram to o$r c$stomers.
&&
5oyal S$ndaram Alliance Ins$rance ompany 'imited is a 1oint 2ent$re #etween S$ndaram *inance and 5oyal 0 S$nAlliance plc< :H< w!ere t!e "ormer !olds )4F and t!e latter !olds 2&F o" t!e e9$ity o" t!e 2ent$re. 5oyal S$ndaram c$rrently !as o2er 2.1 million c$stomers in its "old. Its prod$cts are distri#$ted in o2er 15/ cities across India. Some key prod$cts are> 8ealt! s!ield> A compre!ensi2e !ealt! ins$rance package designed to o""er complete protection to t!e ins$red and !is "amily. ar s!ield> A compre!ensi2e motorcar ins$rance package< designed to co2er yo$r car in most ad2erse sit$ations. 8ome s!ield> Pro2ides complete co2erage "or damage to yo$r #$ilding. Accident s!ield> 4esigned to take care o" yo$ and yo$r "amily in t!e $n"ort$nate e2ent o" a "atal accident. 4o$#le protect> R4o$#le ProtectS is a 2 years 8ealt! Ins$rance plan. T!e plan o""ers reim#$rsement o" 8ospitalisation eApenses in t!e e2ent o" illness or accident Investment Services In2estments< $nlike works o" art< cannot a""ord t!e l$A$ry o" eAperimenting. In2esting is not g$esswork. It takes more t!an 1$st a EtipE it needs training to plan< instinct to pick and s!eer intellect to make it work "or yo$. T!at eAtra mile ass$res yo$ t!at yo$r !ard earned money is wit! t!e rig!t people. Standard !artered Bank< $sing o2er 15/ years o" eApertise< promises to g$ide yo$ t!ro$g! t!e world o" eAciting new in2estment opport$nities in India and o2erseas. *rom s!ortest=term deployment o" "$nds to planning yo$r retirement< we pledge to go t!e eAtra mile to ens$re t!at yo$ reac! yo$r c!osen "inancial goals.
&)
,!en yo$ deal wit! Standard !artered< yo$ can eApect t!e #est. ,e are< a"ter all< t!e leading glo#al #ank in Asia< A"rica and t!e 7iddle Dast. ,e look a"ter in2estments "or o2er 5 million c$stomers across in 5) co$ntries. *rom world class ser2ices to t!e most so$g!t a"ter talent pool< we pro2ide an $nmatc!ed "o$ndation w!ic! yo$ can tr$st. ,eE2e in2ested in pro"essional talent t!at can pro2ide yo$ wit! a contin$o$s< t!oro$g! and insig!t"$l g$idance wit! yo$r money. All t!is so yo$ can rest easy w!en yo$ p$t yo$r money into o$r !ands. ,e o""er a wide range o" pro"essional ser2ices wit! a team o" trained< eAperienced pro"essionals. %$r team !as a ,ide capital markets and in2estment ad2isory eAperience and is dedicated to making yo$r in2estments work "or yo$. onsolidated port"olio statements o" all yo$r m$t$al "$nd in2estments %nline< internet access to P7S port"olios 4irect credit@de#it "acilities "or all yo$r in2estments Periodic meetings wit! leading "$nd managers and ind$stry eAperts S IS 5esearc! Ddge
.: 7t#er Services@
3RI "an2ing :nder t!is #anking S B o""ers acco$nts like N5D< N5% 0* N5 acco$nts. N5D acco$nts> *$nds remitted "rom a#road and w!ic! are o" repatria#le nat$re can #e credited to N5D acco$nts. It is #est s$ited to park o2erseas sa2ings remitted to India #y con2erting to IN5. In addition it can open as Sa2ings acco$nt< $rrent acco$nt or *iAed deposit.
&(
N5% acco$nts> 'ocal "$nds w!ic! do not 9$ali"y< $nder t!e eAc!ange control reg$lations< "or remittance o$tside India can #e credited to N5% acco$nts. T!ese are #est s$ited to park Indian earnings like rent< Indian salary< di2idends etc. It can open as Sa2ings acco$nt< $rrent acco$nt or *iAed deposit. PRI7RIT9 "an2ing 4esigned speci"ically "or t!ose w!o appreciate only t!e "inest t!ings in li"e< Priority Banking o""ers t!e 2ery !ig!est le2els o" personali;ed #anking to matc! $ni9$e stat$s. Bank is committed to !elping a plan <#$ild and protect wealt! #y o""ering indi2id$al attention as well as international #anking and in2estment opport$nities to meet c$rrent and "$t$re needs. Standard !artered Bank Priority Banking is created speci"ically "or a c!osen "ew indi2id$als< w!o will settle "or not!ing #$t t!e #est and demand t!e #est and demand t!e !ig!est standards o" ser2ice in all yo$r #anking relations!ips.
SM6 "an2ing %ne=Stop *inancial Sol$tion "or Ko$r 3rowing B$siness ,it! years o" #anking eAperience< Standard !artered is $ndo$#tedly in a strong position to !elp growing #$sinesses sail t!ro$g! t!e compleAities t!ey may "ace. As an international #ank wit! o""ices in more t!an 5/ co$ntries< we pro2ide t!e glo#al reac! and international recognition t!at yo$r company deser2es. S7D Banking o""ers one o" t!e widest range o" #anking prod$cts and ser2ices in t!e market today. 7anaging a growing #$siness demands most o" yo$r time and energy. %$r relations!ip managers
&.
$nderstand yo$r #$siness re9$irement and !elp yo$ manage yo$r #$siness #etter. S B o""ers prod$ct like *%5DU ser2ices< Term 'oan< International Trade Acco$nt< Trade Ser2ices 0 ,orking apital etc. Commercial "an2ing Standard !artered !as maintained a long local presence< since 1(5(< wit! partic$lar emp!asis on relations!ip #anking. Signi"icant networks !a2e #een esta#lis!ed wit! 2endors and "inancial=related organisations to ena#le $s to o""er o$r c$stomers a compre!ensi2e range o" "leAi#le "inancial ser2ices< wit! special "oc$s on transactional #anking prod$cts. S$pported #y state=o"=t!e=art operations< Standard !artered is pro=acti2e in impro2ing e2ery part o" o$r ser2ices. Dlectronic 4eli2ery system !as #een p$t in place to ens$re t!at transactions are !andled speedily. ,e !a2e o$r as! Prod$ct Specialists and dedicated $stomer Ser2ice entres to pro2ide o$r c$stomers wit! e""ecti2e sol$tions. T!e c$rrency o" India is t!e 5$pee +S,I*T code> IN5-. Standard !artered "$lly $nderstands t!e importance o" time< con2enience and e""iciency to t!e s$ccess o" yo$r #$siness. ,e make easy t!e compleA "inancial world "or yo$ and !elp yo$ maAimise e2ery opport$nity. ,it! o2er 14/ years o" eAperience in trade "inance and an eAtensi2e international #ranc! network< Standard !artered is committed to !elp yo$ s$cceed in e2ery competiti2e en2ironment. To keep pace wit! yo$r c!anging needs< we will constantly re2iew o$r compre!ensi2e cas!< trade and treas$ry prod$cts and ser2ices< ens$ring t!at a "$ll range o" "leAi#le and inno2ati2e ser2ices is always a2aila#le "or yo$ w!ere2er yo$ trade.
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Mutual Fund
Concept
A 7$t$al *$nd is a tr$st t!at pools t!e sa2ings o" a n$m#er o" in2estors w!o s!are a common "inancial goal. T!e money t!$s collected is t!en in2ested in capital market instr$ments s$c! as s!ares< de#ent$res and ot!er sec$rities. T!e income earned t!ro$g! t!ese in2estments and t!e capital appreciation reali;ed is s!ared #y its $nit !olders in proportion to t!e n$m#er o" $nits owned #y t!em. T!$s a 7$t$al *$nd is t!e most s$ita#le in2estment "or t!e common man as it o""ers an opport$nity to in2est in a di2ersi"ied< pro"essionally managed #asket o" sec$rities at a relati2ely low cost. T!e "low c!art #elow descri#es #roadly t!e working o" a m$t$al "$nd>
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A mutual fund is a pro"essionally managed "irm o" collecti2e in2estments t!at collects money "rom many in2estors and p$ts it in stocks< #onds< s!ort=term money market instr$ments< and@or ot!er sec$rities. T!e "$nd manager< also known as port"olio manager< trades t!e "$ndEs $nderlying sec$rities< reali;ing capital gains or losses and passing any proceeds to t!e indi2id$al in2estors. $rrently< t!e worldwide 2al$e o" all m$t$al "$nds totals more t!an Q"# trillion.
7rgani8ation of a Mutual Fund

T!ere are many entities in2ol2ed and t!e diagram #elow ill$strates t!e organi;ational set $p o" a m$t$al "$nd>
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5o1 Mutual Funds Aor2

D2ery m$t$al "$nd !as a goal = eit!er growing its assets +capital gains- and@or generating income +di2idends- "or its in2estors. 4istri#$tions in t!e "orm o" capital gains +s!ort=term and long= term- and di2idends may #e passed on +paid- to s!are!olders as income or rein2ested to p$rc!ase more s!ares. *or taA p$rposes< keep track o" yo$r distri#$tions and cost #asis o" p$rc!ased@rein2ested s!ares. 'ike any #$siness< m$t$al "$nds !a2e risks and costs associated wit! ret$rns. As a s!are!older< t!e risks o" a "$nd and t!e eApenses associated wit! "$ndEs operation directly impact yo$r ret$rn.
FR6H 63T!9 S6$ T6RMS

3et Asset Balue &3AB*
Net Asset Jal$e is t!e market 2al$e o" t!e assets o" t!e sc!eme min$s its lia#ilities. T!e per $nit NAJ is t!e net asset 2al$e o" t!e sc!eme di2ided #y t!e n$m#er o" $nits o$tstanding on t!e Jal$ation 4ate.
Sale Price
Is t!e price yo$ pay w!en yo$ in2est in a sc!eme. Also called %""er Price. It may incl$de a sales load.
Repurc#ase Price
Is t!e price at w!ic! a close=ended sc!eme rep$rc!ases its $nits and it may incl$de a #ack=end load. T!is is also called Bid Price.
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Redemption Price
Is t!e price at w!ic! open=ended sc!emes rep$rc!ase t!eir $nits and close=ended sc!emes redeem t!eir $nits on mat$rity. S$c! prices are NAJ related.
Sales !oad
Is a c!arge collected #y a sc!eme w!en it sells t!e $nits. Also called< O*ront=endT load. Sc!emes t!at do not c!arge a load are called ONo 'oadT sc!emes.
Repurc#ase or >"ac2%end? !oad

Is a c!arge collected #y a sc!eme w!en it #$ys #ack t!e $nits "rom t!e $nit !olders.
Returns
As an in2estor< yo$ want to know t!e "$ndEs ret$rn=its track record o2er a speci"ied period o" time. So w!at eAactly is Bret$rn?B A m$t$al "$ndEs ret$rn is t!e rate o" increase or decrease in its 2al$e o2er a speci"ic period o" time $s$ally eApressed in t!e "ollowing increments> one< t!ree< "i2e< and ten year< year to date< and since t!e inception o" t!e "$nd. Since ret$rn is a common meas$re o" per"ormance< yo$ can $se it to e2al$ate and compare m$t$al "$nds wit!in t!e same "$nd category. 3enerally eApressed as an ann$ali;ed percentage rate< ret$rn is calc$lated ass$ming t!at all distri#$tions "rom t!e "$nd are rein2ested. Since a2erage ret$rns can sometimes B!ideB s!ort=term !ig!s and lows< yo$ s!o$ld e2al$ate ret$rns "or a time period o" se2eral years=not 1$st one year or less. A "$nd t!at !as a !ig! ret$rn in one year may !a2e eAperienced losses in ot!er years= t!ese "l$ct$ations may not #e apparent in its a2erage ret$rn.
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Ris2
D2ery type o" in2estment< incl$ding m$t$al "$nds< in2ol2es risk. 5isk re"ers to t!e possi#ility t!at yo$ will lose money +#ot! principal and any earnings- or "ail to make money on an in2estment. A "$ndEs in2estment o#1ecti2e and its !oldings are in"l$ential "actors in determining !ow risky a "$nd is. 5eading t!e prospect$s will !elp yo$ to $nderstand t!e risk associated wit! t!at partic$lar "$nd. 3enerally speaking< risk and potential ret$rn are related. T!is is t!e risk@ret$rn trade=o"". 8ig!er risks are $s$ally taken wit! t!e eApectation o" !ig!er ret$rns at t!e cost o" increased 2olatility. ,!ile a "$nd wit! !ig!er risk !as t!e potential "or !ig!er ret$rn< it also !as t!e greater potential "or losses or negati2e ret$rns. T!e sc!ool o" t!o$g!t w!en in2esting in m$t$al "$nds s$ggests t!at t!e longer yo$r in2estment time !ori;on is t!e less a""ected yo$ s!o$ld #e #y s!ort=term 2olatility. T!ere"ore< t!e s!orter yo$r in2estment time !ori;on< t!e more concerned yo$ s!o$ld #e wit! s!ort=term 2olatility and !ig!er risk.
$efining Mutual fund ris2

4i""erent m$t$al "$nd categories as pre2io$sly de"ined !a2e in!erently di""erent risk c!aracteristics and s!o$ld not #e compared side #y side. A #ond "$nd wit! #elow=a2erage risk< "or eAample< s!o$ld not #e compared to a stock "$nd wit! #elow a2erage risk. D2en t!o$g! #ot! "$nds !a2e low risk "or t!eir respecti2e categories< stock "$nds o2erall !a2e a !ig!er risk@ret$rn potential t!an #ond "$nds. %" all t!e asset classes< cas! in2estments +i.e. money marketso""er t!e greatest price sta#ility #$t !a2e yielded t!e lowest long=
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term ret$rns. Bonds typically eAperience more s!ort=term price swings< and in t$rn !a2e generated !ig!er long=term ret$rns. 8owe2er< stocks !istorically !a2e #een s$#1ect to t!e greatest s!ort=term price "l$ct$ationsMand !a2e pro2ided t!e !ig!est long= term ret$rns. In2estors looking "or a "$nd w!ic! incorporates all asset classes may consider a #alanced or !y#rid m$t$al "$nd. T!ese "$nds can #e 2ery conser2ati2e or 2ery aggressi2e. Asset allocation port"olios are m$t$al "$nds t!at in2est in ot!er m$t$al "$nds wit! di""erent asset classes. At t!e discretion o" t!e manager+s-< sec$rities are #o$g!t< sold< and s!i"ted #etween "$nds wit! di""erent asset classes according to market conditions. 7$t$al "$nds "ace risks #ased on t!e in2estments t!ey !old. *or eAample< a #ond "$nd "aces interest rate risk and income risk. Bond 2al$es are in2ersely related to interest rates. I" interest rates go $p< #ond 2al$es will go down and 2ice 2ersa. Bond income is also a""ected #y t!e c!ange in interest rates. Bond yields are directly related to interest rates "alling as interest rates "all and rising as interest rise. Income risk is greater "or a s!ort=term #ond "$nd t!an "or a long=term #ond "$nd. Similarly< a sector stock "$nd +w!ic! in2ests in a single ind$stry< s$c! as telecomm$nications- is at risk t!at its price will decline d$e to de2elopments in its ind$stry. A stock "$nd t!at in2ests across many ind$stries is more s!eltered "rom t!is risk de"ined as ind$stry risk. *ollowing is a glossary o" some risks to consider w!en in2esting in m$t$al "$nds.
Call Ris2. T!e possi#ility t!at "alling interest rates will ca$se a #ond iss$er to redeemMor callMits !ig!=yielding #ond #e"ore t!e #ondEs mat$rity date. Country Ris2. T!e possi#ility t!at political e2ents +a war< national elections-< "inancial pro#lems +rising in"lation< go2ernment de"a$lt-< or nat$ral disasters +an eart!9$ake< a
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poor !ar2est- will weaken a co$ntryEs economy and ca$se in2estments in t!at co$ntry to decline. Credit Ris2. T!e possi#ility t!at a #ond iss$er will "ail to repay interest and principal in a timely manner. Also called de"a$lt risk. Currency Ris2. T!e possi#ility t!at ret$rns co$ld #e red$ced "or Americans in2esting in "oreign sec$rities #eca$se o" a rise in t!e 2al$e o" t!e :.S. dollar against "oreign c$rrencies. Also called eAc!ange=rate risk. Income Ris2. T!e possi#ility t!at a "iAed=income "$ndEs di2idends will decline as a res$lt o" "alling o2erall interest rates. Industry Ris2. T!e possi#ility t!at a gro$p o" stocks in a single ind$stry will decline in price d$e to de2elopments in t!at ind$stry. Inflation Ris2. T!e possi#ility t!at increases in t!e cost o" li2ing will red$ce or eliminate a "$ndEs real in"lation=ad1$sted ret$rns. Interest Rate Ris2. T!e possi#ility t!at a #ond "$nd will decline in 2al$e #eca$se o" an increase in interest rates. Manager Ris2. T!e possi#ility t!at an acti2ely managed m$t$al "$ndEs in2estment ad2iser will "ail to eAec$te t!e "$ndEs in2estment strategy e""ecti2ely res$lting in t!e "ail$re o" stated o#1ecti2es. Mar2et Ris2. T!e possi#ility t!at stock "$nd or #ond "$nd prices o2erall will decline o2er s!ort or e2en eAtended periods. Stock and #ond markets tend to mo2e in cycles< wit! periods w!en prices rise and ot!er periods w!en prices "all. Principal Ris2. T!e possi#ility t!at an in2estment will go down in 2al$e< or Blose money<B "rom t!e original or in2ested amo$nt.
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Types of mutual funds

-: 7pen%end fund T!e term mutual fund is t!e common name "or an open=end in2estment company. Being open=ended means t!at< at t!e end o" e2ery day< t!e "$nd iss$es new s!ares to in2estors and #$ys #ack s!ares "rom in2estors wis!ing to lea2e t!e "$nd. 7$t$al "$nds may #e legally str$ct$red as corporations or #$siness tr$sts #$t in eit!er instance are classed as open!end investment companies #y t!e SD . %t!er "$nds !a2e a limited n$m#er o" s!aresG t!ese are eit!er closed=end "$nds or $nit in2estment tr$sts< neit!er o" w!ic! a m$t$al "$nd is.
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,: Close%6nded Funds 5edemption can take place only a"ter t!e period o" t!e sc!eme is o2er. 8owe2er< close=ended "$nds are listed on t!e stock eAc!anges and in2estors can #$y@ sell $nits in t!e secondary market +t!ere is no load-.
4: 6<c#ange%traded funds A relati2ely recent inno2ation< t!e eAc!ange=traded "$nd or DT*< is o"ten str$ct$red as an open=end in2estment company. DT*s com#ine c!aracteristics o" #ot! m$t$al "$nds and closed= end "$nds. DT*s are traded t!ro$g!o$t t!e day on a stock eAc!ange< 1$st like closed=end "$nds< #$t at prices generally approAimating t!e DT*Es net asset 2al$e. 7ost DT*s are indeA "$nds and track stock market indeAes. S!ares are iss$ed or redeemed #y instit$tional in2estors in large #locks +typically o" 5/<///-. 7ost in2estors p$rc!ase and sell s!ares t!ro$g! #rokers in market transactions. Beca$se t!e instit$tional in2estors normally p$rc!ase and redeem in in kind transactions< DT*s are more e""icient t!an traditional m$t$al "$nds +w!ic! are contin$o$sly iss$ing and redeeming sec$rities and< to e""ect s$c! transactions< contin$ally #$ying and selling sec$rities and maintaining li9$idity positions- and t!ere"ore tend to !a2e lower eApenses. DAc!ange=traded "$nds are also 2al$a#le "or "oreign in2estors w!o are o"ten a#le to #$y and sell sec$rities traded on a stock market< #$t w!o< "or reg$latory reasons< are limited in t!eir a#ility to participate in traditional :.S. m$t$al "$nds.
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I: 6=uity funds D9$ity "$nds< w!ic! consist mainly o" stock in2estments< are t!e most common type o" m$t$al "$nd. D9$ity "$nds !old 5/ percent o" all amo$nts in2ested in m$t$al "$nds in t!e :nited States. %"ten e9$ity "$nds "oc$s in2estments on partic$lar strategies and certain types o" iss$ers. +: "ond funds Bond "$nds acco$nt "or 1(F o" m$t$al "$nd assets. Types o" #ond "$nds incl$de term "$nds< w!ic! !a2e a "iAed set o" time +s!ort=< medi$m=< or long=term- #e"ore t!ey mat$re. 7$nicipal #ond "$nds generally !a2e lower ret$rns< #$t !a2e taA ad2antages and lower risk. 8ig!=yield #ond "$nds in2est in corporate #onds< incl$ding !ig!=yield or 1$nk #onds. ,it! t!e potential "or !ig! yield< t!ese #onds also come wit! greater risk.
.: Money mar2et funds 7oney market "$nds !old 2&F o" m$t$al "$nd assets in t!e :nited States. 7oney market "$nds entail t!e least risk< as well as lower rates o" ret$rn. :nlike certi"icates o" deposit + 4s-< money market s!ares are li9$id and redeema#le at any time. T!e interest rate 9$oted #y money market "$nds is known as t!e ) 4ay SD Kield.
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(: Funds of funds *$nds o" "$nds +*o*- are m$t$al "$nds w!ic! in2est in ot!er $nderlying m$t$al "$nds +i.e.< t!ey are "$nds comprised o" ot!er "$nds-. T!e "$nds at t!e $nderlying le2el are typically "$nds w!ic! an in2estor can in2est in indi2id$ally. A "$nd o" "$nds will typically c!arge a management "ee w!ic! is smaller t!an t!at o" a normal "$nd #eca$se it is considered a "ee c!arged "or asset allocation ser2ices. T!e "ees c!arged at t!e $nderlying "$nd le2el do not pass t!ro$g! t!e statement o" operations< #$t are $s$ally disclosed in t!e "$ndEs ann$al report< prospect$s< or statement o" additional in"ormation. T!e "$nd s!o$ld #e e2al$ated on t!e com#ination o" t!e "$nd=le2el eApenses and $nderlying "$nd eApenses< as t!ese #ot! red$ce t!e ret$rn to t!e in2estor. 7ost *o*s in2est in a""iliated "$nds +i.e.< m$t$al "$nds managed #y t!e same ad2isor-< alt!o$g! some in2est in "$nds managed #y ot!er +$na""iliated- ad2isors. T!e cost associated wit! in2esting in an $na""iliated $nderlying "$nd is most o"ten !ig!er t!an in2esting in an a""iliated $nderlying #eca$se o" t!e in2estment management researc! in2ol2ed in in2esting in "$nd ad2ised #y a di""erent ad2isor. 5ecently< *o*s !a2e #een classi"ied into t!ose t!at are acti2ely managed +in w!ic! t!e in2estment ad2isor reallocates "re9$ently among t!e $nderlying "$nds in order to ad1$st to c!anging market conditions- and t!ose t!at are passi2ely managed +t!e in2estment ad2isor allocates assets on t!e #asis o" on an allocation model w!ic! is re#alanced on a reg$lar #asis-. T!e design o" *o*s is str$ct$red in s$c! a way as to pro2ide a ready miA o" m$t$al "$nds "or in2estors w!o are $na#le to or $nwilling to determine t!eir own asset allocation model. *$nd companies s$c! as TIAA= 5D*< American ent$ry In2estments< Jang$ard< and *idelity !a2e also entered t!is market to pro2ide in2estors wit! t!ese options and take t!e Bg$ess workB o$t o" selecting "$nds. T!e allocation miAes
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$s$ally 2ary #y t!e time t!e in2estor wo$ld like to retire> 2/2/< 2/3/< 2/5/< etc. T!e more distant t!e target retirement date< t!e more aggressi2e t!e asset miA.
J: 5edge funds 8edge "$nds in t!e :nited States are pooled in2estment "$nds wit! loose SD reg$lation and s!o$ld not #e con"$sed wit! m$t$al "$nds. Some !edge "$nd managers are re9$ired to register wit! SD as in2estment ad2isers $nder t!e In2estment Ad2isers Act. T!e Act does not re9$ire an ad2iser to "ollow or a2oid any partic$lar in2estment strategies< nor does it re9$ire or pro!i#it speci"ic in2estments. 8edge "$nds typically c!arge a management "ee o" 1F or more< pl$s a Rper"ormance "eeS o" 2/F o" t!e !edge "$ndTs pro"it. T!ere may #e a Block=$pB period< d$ring w!ic! an in2estor cannot cas! in s!ares. A 2ariation o" t!e !edge strategy is t!e 13/=3/ "$nd "or indi2id$al in2estors.
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Advantages of Mutual Funds

-: Professional Management@
T!e primary ad2antage o" "$nds +at least t!eoretically- is t!e pro"essional management o" yo$r money. In2estors p$rc!ase "$nds #eca$se t!ey do not !a2e t!e time or t!e eApertise to manage t!eir own port"olio. A m$t$al "$nd is a relati2ely ineApensi2e way "or a small in2estor to get a "$ll=time manager to make and monitor in2estments. 7$t$al "$nds are managed and s$per2ised #y in2estment pro"essionals. As per t!e stated o#1ecti2es set "ort! in t!e prospect$s< along wit! pre2ailing market conditions and ot!er "actors< t!e m$t$al "$nd manager will decide w!en to #$y or sell sec$rities. T!is eliminates t!e in2estor o" t!e di""ic$lt task o" trying to time t!e market. *$rt!ermore< m$t$al "$nds can eliminate t!e cost an in2estor wo$ld inc$r w!en proper d$e diligence is gi2en to researc!ing sec$rities. T!is cost o" managing n$mero$s sec$rities is dispersed among all t!e in2estors according to t!e amo$nt o" s!ares t!ey own wit! a "raction o" eac! dollar in2ested $sed to co2er t!e eApenses o" t!e "$nd. ,!at does t!is mean? *$nd managers !a2e more money to researc! more sec$rities more in dept! t!an t!e a2erage in2estor. ,!en yo$ #$y a m$t$al "$nd< yo$ are also c!oosing a pro"essional money manager. T!is manager will $se t!e money t!at yo$ in2est to #$y and sell stocks t!at !e or s!e !as care"$lly researc!ed. T!ere"ore< rat!er t!an !a2ing to t!oro$g!ly researc! e2ery in2estment #e"ore yo$ decide to #$y or sell< yo$ !a2e a m$t$al "$ndEs money manager to !andle it "or yo$.
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,: $iversification
By owning s!ares in a m$t$al "$nd instead o" owning indi2id$al stocks or #onds< yo$r risk is spread o$t. T!e idea #e!ind di2ersi"ication is to in2est in a large n$m#er o" assets so t!at a loss in any partic$lar in2estment is minimi;ed #y gains in ot!ers. In ot!er words< t!e more stocks and #onds yo$ own< t!e less any one o" t!em can !$rt yo$ +t!ink a#o$t Dnron-. 'arge m$t$al "$nds typically own !$ndreds o" di""erent stocks in many di""erent ind$stries. It wo$ldnEt #e possi#le "or an in2estor to #$ild t!is kind o" a port"olio wit! a small amo$nt o" money. :sing m$t$al "$nds can !elp an in2estor di2ersi"y t!eir port"olio wit! a minim$m in2estment. ,!en in2esting in a single "$nd< an in2estor is act$ally in2esting in n$mero$s sec$rities. Spreading yo$r in2estment across a range o" sec$rities can !elp to red$ce risk. A stock m$t$al "$nd< "or eAample< in2ests in many stocks = !$ndreds or e2en t!o$sands. T!is minimi;es t!e risk attri#$ted to a concentrated position. I" a "ew sec$rities in t!e m$t$al "$nd lose 2al$e or #ecome wort!less< t!e loss may#e o""set #y ot!er sec$rities t!at appreciate in 2al$e. *$rt!er di2ersi"ication can #e ac!ie2ed #y in2esting in m$ltiple "$nds w!ic! in2est in di""erent sectors or categories. T!is !elps to red$ce t!e risk associated wit! a speci"ic ind$stry or category. 4i2ersi"ication may !elp to red$ce risk #$t will ne2er completely eliminate it. It is possi#le to lose all or part o" yo$r in2estment.
4: Convenience@
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,it! most m$t$al "$nds< #$ying and selling s!ares< c!anging distri#$tion options< and o#taining in"ormation can #e accomplis!ed con2eniently #y telep!one< #y mail< or online. Alt!o$g! a "$ndEs s!are!older is relie2ed o" t!e day=to=day tasks in2ol2ed in researc!ing< #$ying< and selling sec$rities< an in2estor will still need to e2al$ate a m$t$al "$nd #ased on in2estment goals and risk tolerance #e"ore making a p$rc!ase decision. In2estors s!o$ld always read t!e prospect$s care"$lly #e"ore in2esting in any m$t$al "$nd.
I: !i=uidity
C$st like an indi2id$al stock< a m$t$al "$nd allows yo$ to re9$est t!at yo$r s!ares #e con2erted into cas! at any time. Anot!er ad2antage o" m$t$al "$nds is t!e a#ility to get in and o$t wit! relati2e ease. In general< yo$ are a#le to sell yo$r m$t$al "$nds in a s!ort period o" time wit!o$t t!ere #eing m$c! di""erence #etween t!e sale price and t!e most c$rrent market 2al$e. 8owe2er< it is important to watc! o$t "or any "ees associated wit! selling< incl$ding #ack=end load "ees. Also< $nlike stocks and eAc!ange=traded "$nds +DT*s-< w!ic! trade any time d$ring market !o$rs< m$t$al "$nds m$t$al "$nds transact only once per day a"ter t!e "$ndEs net asset 2al$e +NAJ- is calc$lated. 7$t$al "$nd s!ares are li9$id and orders to #$y or sell are placed d$ring market !o$rs. 8owe2er< orders are not eAec$ted $ntil t!e close o" #$siness w!en t!e NAJ +Net A2erage Jal$e- o" t!e "$nd can #e determined. *ees or commissions may or may not #e applica#le. *ees and commissions are determined #y t!e speci"ic "$nd and t!e instit$tion t!at eAec$tes t!e order.
(5
+: 6conomies of Scale@
T!e easiest way to $nderstand economies o" scale is #y t!inking a#o$t 2ol$me disco$ntsG in many stores t!e more o" one prod$ct yo$ #$y< t!e c!eaper t!at prod$ct #ecomes. *or eAample< w!en yo$ #$y a do;en don$ts< t!e price per don$t is $s$ally c!eaper t!an #$ying a single one. T!is occ$rs also in t!e p$rc!ase and sale o" sec$rities. I" yo$ #$y only one sec$rity at a time< t!e transaction "ees will #e relati2ely large. 7$t$al "$nds are a#le to take ad2antage o" t!eir #$ying and selling si;e and t!ere#y red$ce transaction costs "or in2estors. ,!en yo$ #$y a m$t$al "$nd< yo$ are a#le to di2ersi"y wit!o$t t!e n$mero$s commission c!arges. Imagine i" yo$ !ad to #$y t!e 1/=2/ stocks needed "or di2ersi"ication. T!e commission c!arges alone wo$ld eat $p a good c!$nk o" yo$r sa2ings. Add to t!is t!e "act t!at yo$ wo$ld !a2e to pay more transaction "ees e2ery time yo$ wanted to modi"y yo$r port"olio = as yo$ can see t!e costs #egin to add $p. ,it! m$t$al "$nds< yo$ can make transactions on a m$c! larger scale "or less money.
.: $ivisibility@
7any in2estors donEt !a2e t!e eAact s$ms o" money to #$y ro$nd lots o" sec$rities. %ne to two !$ndred dollars is $s$ally not eno$g! to #$y a ro$nd lot o" a stock< especially a"ter ded$cting commissions. In2estors can p$rc!ase m$t$al "$nds in smaller denominations< ranging "rom Q1// to Q1</// minim$ms. Smaller denominations o" m$t$al "$nds pro2ide m$t$al "$nd in2estors t!e
(&
a#ility to make periodic in2estments t!ro$g! mont!ly p$rc!ase plans w!ile taking ad2antage o" dollar=cost a2eraging. So< rat!er t!an !a2ing to wait $ntil yo$ !a2e eno$g! money to #$y !ig!er= cost in2estments< yo$ can get in rig!t away wit! m$t$al "$nds. T!is pro2ides an additional ad2antage = li9$idity.
(: Minimum Initial Investment@

7ost "$nds !a2e a minim$m initial p$rc!ase o" 5s 1/</// #$t some are as low as 5s 5<///.
J: Simplicity@
B$ying a m$t$al "$nd is easyX Pretty well any #ank !as its own line o" m$t$al "$nds< and t!e minim$m in2estment is small. 7ost companies also !a2e a$tomatic p$rc!ase plans w!ere#y as little as Q1// can #e in2ested on a mont!ly #asis.
%t!er Ad2antages are> ): Ta< "enefits: -': Transparency: --: Fle<ibility: -,: Aide C#oice of Sc#emes:
()
$isadvantages of Mutual Funds

-: Fluctuating Returns@
7$t$al "$nds are like many ot!er in2estments wit!o$t a g$aranteed ret$rn> t!ere is always t!e possi#ility t!at t!e 2al$e o" yo$r m$t$al "$nd will depreciate. :nlike "iAed=income prod$cts< s$c! as #onds and Treas$ry #ills< m$t$al "$nds eAperience price "l$ct$ations along wit! t!e stocks t!at make $p t!e "$nd. ,!en deciding on a partic$lar "$nd to #$y< yo$ need to researc! t!e risks in2ol2ed = 1$st #eca$se a pro"essional manager is looking a"ter t!e "$nd< t!at doesnEt mean t!e per"ormance will #e stellar. Anot!er important t!ing to know is t!at m$t$al "$nds are not g$aranteed #y t!e :.S. go2ernment< so in t!e case o" dissol$tion< yo$ wonEt get anyt!ing #ack. T!is is especially important "or in2estors in money market "$nds.
2. 4i2ersi"ication>
Alt!o$g! di2ersi"ication is one o" t!e keys to s$ccess"$l in2esting< many m$t$al "$nd in2estors tend to o2erdi2ersi"y. T!e idea o" di2ersi"ication is to red$ce t!e risks associated wit! !olding a single sec$rityG o2erdi2ersi"ication +also known as
((
diworsi"ication- occ$rs w!en in2estors ac9$ire many "$nds t!at are !ig!ly related and< as a res$lt< donEt get t!e risk red$cing #ene"its o" di2ersi"ication. At t!e ot!er eAtreme< 1$st #eca$se yo$ own m$t$al "$nds doesnEt mean yo$ are a$tomatically di2ersi"ied. *or eAample< a "$nd t!at in2ests only in a partic$lar ind$stry or region is still relati2ely risky.
3. as!< as! and 7ore as!>

As yo$ know already< m$t$al "$nds pool money "rom t!o$sands o" in2estors< so e2eryday in2estors are p$tting money into t!e "$nd as well as wit!drawing in2estments. To maintain li9$idity and t!e capacity to accommodate wit!drawals< "$nds typically !a2e to keep a large portion o" t!eir port"olios as cas!. 8a2ing ample cas! is great "or li9$idity< #$t money sitting aro$nd as cas! is not working "or yo$ and t!$s is not 2ery ad2antageo$s.
4. osts>
7$t$al "$nds donEt eAist solely to make yo$r li"e easier==all "$nds are in it "or a pro"it. T!e m$t$al "$nd ind$stry is master"$l at #$rying costs $nder layers o" 1argon. T!ese costs are so complicated t!at in t!is t$torial we !a2e de2oted an entire section to t!e s$#1ect. 7$t$al "$nds pro2ide in2estors wit! pro"essional management< #$t it comes at a cost. *$nds will typically !a2e a range o"
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di""erent "ees t!at red$ce t!e o2erall payo$t. In m$t$al "$nds< t!e "ees are classi"ied into two categories> s!are!older "ees and ann$al operating "ees. T!e s!are!older "ees< in t!e "orms o" loads and redemption "ees< are paid directly #y s!are!olders p$rc!asing or selling t!e "$nds. T!e ann$al "$nd operating "ees are c!arged as an ann$al percentage = $s$ally ranging "rom 1=3F. T!ese "ees are assessed to m$t$al "$nd in2estors regardless o" t!e per"ormance o" t!e "$nd. As yo$ can imagine< in years w!en t!e "$nd doesnEt make money< t!ese "ees only magni"y losses.
5. 7isleading Ad2ertisements>
T!e misleading ad2ertisements o" di""erent "$nds can g$ide in2estors down t!e wrong pat!. Some "$nds may #e incorrectly la#eled as growt! "$nds< w!ile ot!ers are classi"ied as small cap or income "$nds. T!e Sec$rities and DAc!ange ommission +SD - re9$ires t!at "$nds !a2e at least (/F o" assets in t!e partic$lar type o" in2estment implied in t!eir names. 8ow t!e remaining assets are in2ested is $p to t!e "$nd manager. 8owe2er< t!e di""erent categories t!at 9$ali"y "or t!e re9$ired (/F o" t!e assets may #e 2ag$e and wide=ranging. A "$nd can t!ere"ore manip$late prospecti2e in2estors #y $sing names t!at are attracti2e and misleading. Instead o" la#eling itsel" a small cap< a "$nd may #e sold as a Bgrowt! "$ndB. %r< t!e B ongo 8ig!=Tec! *$ndB co$ld #e sold wit! t!e title BInternational 8ig!=Tec! *$ndB. 4il$tion = ItEs possi#le to !a2e too m$c! di2ersi"ication +t!is is eAplained in o$r article entitled BAre Ko$ %2er=4i2ersi"ied?B-.
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Beca$se "$nds !a2e small !oldings in so many di""erent companies< !ig! ret$rns "rom a "ew in2estments o"ten donEt make m$c! di""erence on t!e o2erall ret$rn. 4il$tion is also t!e res$lt o" a s$ccess"$l "$nd getting too #ig. ,!en money po$rs into "$nds t!at !a2e !ad strong s$ccess< t!e manager o"ten !as tro$#le "inding a good in2estment "or all t!e new money.
&. D2al$ating *$nds>

Anot!er disad2antage o" m$t$al "$nds is t!e di""ic$lty t!ey pose "or in2estors interested in researc!ing and e2al$ating t!e di""erent "$nds. :nlike stocks< m$t$al "$nds do not o""er in2estors t!e opport$nity to compare t!e P@D ratio< sales growt!< earnings per s!are< etc. A m$t$al "$ndEs net asset 2al$e gi2es in2estors t!e total 2al$e o" t!e "$ndEs port"olio less lia#ilities< #$t !ow do yo$ know i" one "$nd is #etter t!an anot!er? *$rt!ermore< ad2ertisements< rankings and ratings iss$ed #y "$nd companies only descri#e past per"ormance. Always note t!at m$t$al "$nd descriptions@ad2ertisements always incl$de t!e tagline Bpast res$lts are not indicati2e o" "$t$re ret$rnsB. Be s$re not to pick "$nds only #eca$se t!ey !a2e per"ormed well in t!e past = yesterdayEs #ig winners may #e todayEs #ig losers.
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Standard C#artered Mutual Fund
Standard C#artered Mutual Fund is 1ell%establis#ed fund #ouse and is sponsored by t#e Standard C#artered Group Standard C#artered Mutual Fund la$nc!ed its "irst sc!eme 3rindlays S$per Sa2er Income *$nd in t!e year C$ly 2///. Since t!en it "oc$sed on de#t "or 5 years and la$nc!ed se2eral inno2ati2e prod$cts t!at went to #ecome #o$rgeoning categories in t!e Indian m$t$al "$nd ind$stry. Some o" t!ese were T!e 4ynamic Bond *$nd< T!e S!ort term *$nd and t!e 7edi$m Term *$nd. In C$ne 2//5 standard c!artered la$nc!ed its "irst e9$ity "$nd. Standard !artered lassic D9$ity *$nd is a tr$ly di2ersi"ied "$nd t!at wo$ld not #e limited #y diktats o" in2esting in eit!er a partic$lar section o" t!e market or a partic$lar style o" in2esting. It also pioneered se2eral ser2ice initiati2es t!at !elped increase transactional ease. It was t!e "irst m$t$al "$nd to initiate
Across t!e co$nter redemptions "or all classes o" in2estors in li9$id "$nds<
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NeAt day redemptions "or non=li9$id "$nds and lately %ne all *ree n$m#er 1&//22&&22 accessi#le across 153 cities
P!one transact ser2ice w!erein in2estors can redeem wit!o$t !a2ing any Personal Identi"ication N$m#ers. Standard !artered 7$t$al *$nd today !as o""ices in 1. cities and c$rrently manages assets in eAcess o" 5s (/// crores.
nit !in2ed Insurance Plan

nit !in2ed Insurance Plan +:'IP- pro2ides "or li"e ins$rance w!ere t!e policy 2al$e at any time 2aries according to t!e 2al$e o" t!e $nderlying assets at t!e time. :'IP is li"e ins$rance sol$tion t!at pro2ides "or t!e #ene"its o" protection and "leAi#ility in in2estment. T!e in2estment is denoted as $nits and is represented #y t!e 2al$e t!at it !as attained called as Net Asset Jal$e +NAJ-. :'IP is li"e ins$rance sol$tion t!at pro2ides "or t!e #ene"its o" protection and "leAi#ility in in2estment. T!e in2estment is denoted as $nits and is represented #y t!e 2al$e t!at it !as attained called as Net Asset Jal$e +NAJ-. As times progressed t!e plans were also s$ccess"$lly mapped along wit! li"e ins$rance need to do retirement planning. In todayEs times< :'IP pro2ides sol$tions "or ins$rance planning< "inancial needs< "inancial planning "or c!ildrenEs "$t$re and retirement planning. *or t!e generation o" ins$rance seekers w!o t!ri2ed on ins$rance policies wit! ass$red ret$rns iss$ed #y a single p$#lic sector enterprise< $nit=linked ins$rance plans are a re2elation. Traditionally ins$rance prod$cts !a2e #een associated wit! attracti2e ret$rns co$pled wit! taA #ene"its. T!e ret$rns part was
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o"ten so compelling t!at ins$rance prod$cts competed wit! in2estment prod$cts "or a place in t!e in2estorEs port"olio. Per!aps ins$rance policies t!en were sym#olic o" t!e times w!en !ig! interest rates and t!e a#sence o" a rational risk=ret$rn trade=o"" were t!e norms. T!e s$#se9$ent so"tening o" interest rates introd$ced a degree a m$c!=needed rationality to ins$rance prod$cts like endowment plansG attracti2e ret$rns at low risk #ecame a t!ing o" t!e past. T!e same period also coincided wit! an $pt$rn in e9$ity markets and t!e emergence o" a new #reed o" market=linked ins$rance prod$cts like :'IPs. ,!ile in con2entional ins$rance prod$cts t!e ins$rance component takes precedence o2er t!e sa2ings component< t!e opposite !olds tr$e "or :'IPs. 7ore importantly :'IPs +powered #y t!e presence o" a large n$m#er o" 2ariants- o""er in2estors t!e opport$nity to select a prod$ct w!ic! matc!es t!eir risk pro"ileG "or eAample an indi2id$al wit! a !ig! risk appetite can s!$n traditional endowment plans +w!ic! in2est a#o$t (5F o" t!eir "$nds in t!e de#t instr$ments- in "a2o$r o" a :'IP w!ic! in2ests its entire corp$s in e9$ities. In traditional ins$rance prod$cts< t!e s$m ass$red is t!e corner stoneG in :'IPs premi$m payments is t!e key component. :'IPs are remarka#ly alike to m$t$al "$nds in terms o" t!eir str$ct$re and "$nctioningG premi$m payments made are con2erted into $nits and a net asset 2al$e +NAJ- is declared "or t!e same. In2estors !a2e t!e c!oice o" en!ancing t!eir ins$rance co2er< modi"ying premi$m payments and e2en opting "or a distinct asset allocation t!an t!e one t!ey originally opted "or. Also i" an $n"oreseen e2ent$ality were to occ$r< in case o" traditional prod$cts< t!e s$m ass$red is paid along wit! acc$m$lated #on$sesG con2ersely in :'IPs< t!e ins$red is paid eit!er t!e s$m ass$red or corp$s amo$nt w!ic!e2er is !ig!er.
.4
Ins$rance seekers !a2e ne2er #een eAposed to t!is kind o" "leAi#ility in traditional ins$rance prod$cts and it wo$ld #e "air to say t!at :'IPs represent t!e new "ace o" ins$rance. ,!ile "ew wo$ld disp$te t!e 2al$e=add t!at :'IPs can pro2ide to oneEs ins$rance port"olio and "inancial planningG t!e same is not wit!o$t its "lipside. *or t!e $ninitiated< $nderstanding t!e "$nctioning o" :'IPs can #e 9$ite a !and"$lX T!e presence o" w!at seem to #e relati2ely !ig!er eApenses< rigidly de"ined ins$rance and in2estment components and t!e impact o" markets on t!e corp$s clearly make :'IPs a compleA proposition. Traditionally t!e ins$rance seekerEs role was a passi2e one restricted to making premi$m paymentsG :'IPs re9$ire greater participation "rom #ot! t!e ins$red and t!e ins$rance ad2isor. As is t!e case wit! most e2ol2ed in2estment a2en$es< making in"ormed decisions is t!e key i" in2estors in :'IPs wis! to tr$ly gain "rom t!eir in2estments. T!e 2ario$s aspects o" :'IPs dealt wit! in t!is p$#lication will certainly "$rt!er t!e :'IP in2estorEs ca$se. Features of !IP@ :'IP disting$is!es itsel" t!ro$g! t!e m$ltiple #ene"its t!at it pro2ides to t!e cons$mer. T!e plan is a one=stop sol$tion pro2iding> 'i"e Protection In2estment and sa2ings *leAi#ility Ad1$sta#le 'i"e co2er In2estment options Transparency %ptions to take additional co2er against deat! d$e to accident 4isa#ility
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ritical Illness S$rgeries 'i9$idity TaA Planning
T#e !atest IR$A Guidelines dictate Follo1ing Re=uirements for !IPs@
t#e
-: TermGTenure T!e :'IP client m$st !a2e t!e option to c!oose a term@ten$re. I" no term is de"ined< t!en t!e term will #e de"ined as E)/ min$s t!e age o" t!e clientE. *or eAample i" t!e client is opting "or :'IP at t!e age o" 3/ t!en t!e policy term wo$ld #e 4/ years. T!e :'IP m$st !a2e a minim$m ten$re o" 5 years. ,: Sum Assured %n t!e same lines< now t!ere is a s$m ass$red t!at clients can associate wit!. T!e minim$m s$m ass$red is calc$lated as> +Term@2 W Ann$al Premi$m- or +5 W Ann$al Premi$mw!ic!e2er is !ig!er. T!ere is no clarity wit! regards to t!e maAim$m s$m ass$red. T!e s$m ass$red is treated as sacred $nder t!e new g$idelinesG it cannot #e red$ced at any point d$ring t!e term o" t!e policy eAcept $nder certain conditions = like a partial wit!drawal wit!in two years o" deat! or all partial wit!drawals a"ter &/ years o" age. T!is way t!e client is at ease wit! regards to t!e s$m ass$red at !is disposal.
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4: Premium payments I" less t!an "irst 3 years premi$ms are paid< t!e li"e co2er will lapse and policy will #e terminated #y paying t!e s$rrender 2al$e. 8owe2er< i" at least "irst 3 years premi$ms !a2e #een paid< t!en t!e li"e co2er wo$ld !a2e to contin$e at t!e option o" t!e client. I: Surrender value T!e s$rrender 2al$e wo$ld #e paya#le only a"ter completion o" 3 policy years. +: Top%ups Ins$rance companies can accept top=$ps only i" t!e client !as paid reg$lar premi$ms till date. I" t!e top=$p amo$nt eAceeds 25F o" total #asic reg$lar premi$ms paid till date< t!en t!e client !as to #e gi2en a certain percentage o" s$m ass$red on t!e eAcess amo$nt. Top=$ps !a2e a lock=in o" 3 years +$nless t!e top=$p is made in t!e last 3 years o" t!e policy-. .:Partial 1it#dra1als T!e client can make partial wit!drawals only a"ter 3 policy years. (: Settlement T!e client !as t!e option to claim t!e amo$nt acc$m$lated in !is acco$nt a"ter mat$rity o" t!e term o" t!e policy $pto a maAim$m o" 5 years. *or instance< i" t!e :'IP mat$res on Can$ary 1< 2//)< t!e client !as t!e option to claim t!e :'IP monies till as late as 4ecem#er 31< 2/12. 8owe2er< li"e co2er will not #e a2aila#le d$ring t!e eAtended period. J: !oans No loans will #e granted $nder t!e new :'IP.
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): C#arges T!e ins$rance company m$st state t!e :'IP c!arges eAplicitly. T!ey m$st also gi2e t!e met!od o" ded$ction o" c!arges. -': "enefit Illustrations T!e client m$st necessarily sign on t!e sales #ene"it ill$strations. T!ese ill$strations are s!own to t!e client #y t!e agent to gi2e !im an idea a#o$t t!e ret$rns on !is policy. Agents are #o$nd #y g$idelines to s!ow ill$strations #ased on an optimistic estimate o" 1/F and a conser2ati2e estimate o" &F. Now clients will !a2e to sign on t!ese ill$strations< #eca$se agents were 2iolating t!ese g$idelines and pro1ecting !ig!er ret$rns.
5o1 to Select t#e Rig#t !IP@

*or a prod$ct capa#le o" adding signi"icant 2al$e to in2estorsE port"olios< :'IPs !a2e "ar too many critics. ,e at $ersonalfn !a2e interacted wit! a n$m#er o" in2estors w!o were 2ery disill$sioned wit! t!eir :'IPs in2estmentsG o"ten t!e disappointment stemmed "rom poor and inappropriate selection. ,e present a 5=step in2estment strategy t!at will g$ide in2estors in t!e selection process and ena#le t!em to c!oose t!e rig!t :'IP.
-: nderstand t#e Concept of !IPs@

4o as m$c! !omework as possi#le #e"ore in2esting in an :'IP. T!is way yo$ will #e "$lly aware o" w!at yo$ are getting into and make an in"ormed decision. 7ore importantly< it will ens$re t!at yo$ are not "aced wit! any $npleasant s$rprises at a later stage. %$r eAperience s$ggests t!at in2estors on most occasions "ail to realise w!at t!ey are
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getting into and $nscr$p$lo$s agents s!o$ld get a lot o" EcreditE "or t!e same. 3at!er in"ormation on :'IPs< t!e 2ario$s options a2aila#le and $nderstand t!eir working. 5ead :'IP=related in"ormation a2aila#le on "inancial ,e# sites< newspapers and sales literat$re circ$lated #y ins$rance companies.
,: Focus on your 3eed and Ris2 Profile@

Identi"y a plan t!at is #est s$ited "or yo$ +in terms o" allocation o" money #etween e9$ity and de#t instr$ments-. Ko$r risk appetite s!o$ld #e t!e deciding criterion in c!oosing t!e plan. As a res$lt i" yo$ !a2e a !ig! risk appetite< t!en an aggressi2e in2estment option wit! a !ig!er e9$ity component is likely to #e more s$ited. Similarly yo$r eAisting in2estment port"olio and t!e e9$ity=de#t allocation t!erein also need to #e gi2en d$e importance #e"ore selecting a plan. %pting "or a plan t!at is lop=sided in "a2o$r o" e9$ities< only wit! t!e o#1ecti2e o" clocking attracti2e ret$rns can and does spell disaster in most cases.
4: Compare !IP products from various Insurance Companies@

ompare prod$cts o""ered #y 2ario$s ins$rance companies on parameters like eApenses< premi$m payments and per"ormance among ot!ers. *or eAample< in"ormation on premi$m payments will !elp yo$ get a #etter pict$re o" t!e minim$m o$tlay since :'IPs work on premi$m payments as opposed to s$m ass$red in t!e case o" con2entional ins$rance prod$cts.
..
ompare t!e :'IPsE per"ormance i.e. "ind o$t !ow t!e de#t< e9$ity and #alanced sc!emes are per"ormingG also st$dy t!e port"olios o" 2ario$s plans. DApenses are a signi"icant "actor in :'IPs< !ence an assessment on t!is parameter is warranted as well. Dn9$ire a#o$t t!e top=$p "acility o""ered #y :'IPs i.e. additional l$mp s$m in2estments w!ic! can #e made to en!ance t!e policyEs sa2ings portion. T!is option ena#les policy!olders to increase t!e premi$m amo$nts< t!ere#y pro2iding presenting an opport$nity to gain"$lly in2est any s$rpl$s "$nds a2aila#le. *ind o$t a#o$t t!e n$m#er o" times yo$ can make "ree switc!es +i.e. c!ange t!e asset allocation o" yo$r :'IP acco$nt- "rom one in2estment plan to anot!er. Some ins$rance companies o""er m$ltiple "ree switc!es e2ery year w!ile ot!ers do so only a"ter t!e completion o" a stip$lated period.
I: Go for an 6<perienced Insurance Advisor@

Select an ad2isor w!o is not only con2ersant wit! t!e "$nctioning o" de#t and e9$ity markets< #$t also independent and $n#iased. Ask "or re"erences o" clients !e !as ser2iced earlier and cross=c!eck !is ser2ice standards. ,!en yo$r agent recommends a :'IP "rom a gi2en company< p$t "ort! some prod$ct=related 9$estions to test !im and also ask !im w!y t!e prod$cts "rom ot!er ins$rers s!o$ld not #e considered. Ins$rance ad2ice at all times m$st #e $n#iased and independentG also yo$r agent m$st #e willing to in"orm yo$ a#o$t t!e pros and cons o" #$ying a partic$lar plan. 8is 1o# s!o$ld not #e restricted to doing paper work like "illing "orms and deli2ering receiptsG instead !e s!o$ld keep track o" yo$r plan and o""er yo$ ad2ice on a reg$lar #asis.
+: $oes your !IP offer a minimum guaranteeL

1//
In a market=linked prod$ct< protecting t!e in2estmentEs downside can #e a !$ge ad2antage. *ind o$t i" t!e :'IP yo$ are considering o""ers a minim$m g$arantee and w!at costs !a2e to #e #orne "or t!e same.
!ife Insurance Products at Standard C#artered

Standard !artered o""ers yo$ a wide range o" 'i"e Ins$rance Prod$cts "rom Ba1a1 Allian; 'i"e Ins$rance ompany< one o" IndiaEs leading Ins$rance companies. Some o" t!e key 'i"e Ins$rance plansW a2aila#le at Standard !artered Bank>
3e1 Secure First@ An investment plan 1#ic# offers double advantage 1it# fle<ibility o T!is "leAi#le :nit linked li"e ins$rance plan pro2ides yo$ protection and participation in market=linked ret$rns. o 4o$#le #ene"it o" S$m Ass$red Y *$nd Jal$e in case o" demise o !oice o" 5 in2estment options< 3 "ree switc!es and premi$m redirection option
3e1 nit Gain Plus@ Fle<ible investments 1ere never so easy: o 3$aranteed li"e co2er. !oice o" 5 in2estment "$nds. 3 "ree switc!es allowed e2ery year.
1/1
o o
Partial and *$ll wit!drawals a"ter 3 yrs. :nmatc!ed "leAi#ility to meet yo$r c!anging li"estyle and ins$rance re9$irements.
"aDaD Allian8 Care First@ A medical insurance plan t#at allo1s you to rene1 till t#e age of .+ years: Premium guaranteed for t#e lengt# of t#e eac# policy term of 4 years o 3enero$s !ospital co2er $p to ) 'acs. o as!less Treatment a2aila#le across o2er 2/// leading !ospitals in o2er 2// towns across India. o Speci"ic 4ay are treatments re9$iring less t!an 24 !rs. 8ospitali;ation is also co2ered $nder t!is plan.
Protector@ A Mortgage Reducing Term Insurance Plan: Ma2e you?re your family #ome remains 1it# your family for life: o T!e loan protector plan "rom Ba1a1 Allian; 'i"e Ins$rance is mortgage red$cing term ass$rance plan< w!ic! at low premi$ms !elps yo$ to sec$re yo$r "amily against !ome loan. o It is an economical way to protect t!e "amily "rom t!e #$rden o" repayment o" t!e loan. o on2enient premi$m payment options = 5eg$lar Premi$m Payment 0 Single Premi$m Payment. o Coint 'i"e a2aila#ility = t!e option to co2er t!e co= applicant o" t!e loan $nder t!is plan.
3e1 nit Gain 6asy Pension Plus@ pension plan 1it#out life cover
ni=ue unit%lin2ed
1/2
o o
A2aila#le in Single Premi$m and reg$lar Premi$m payment mode. %ption to take a taA="ree l$mp s$m $p to 33F o" S$m Ass$red. %pen 7arket option> P$rc!ase immediate ann$ity "rom Ba1a1 Allian; 'i"e Ins$rance or any ot!er li"e ins$rer. !oice o" 5 in2estment "$nds. 3 "ree switc!es allowed e2ery year.
C#ild Gain@ Insure today and secure your c#ild?s education and ambitions: T#is policy is available in I 7ptions o !ild 3ain 21 and !ild 3ain 21 Pl$s !ildEs ed$cation Plan $pto 3rad$ation 1/5F 3$aranteed Payo$ts Y Bon$ses o !ild 3ain 24 and !ild 3ain 24 Pl$s !ildEs ed$cation Plan $pto Post 3rad$ation 115F 3$aranteed Payo$ts Y Bon$ses o *amily Income Bene"it> In case o" deat! or accidental total permanent disa#ility o" ins$red< all "$t$re premi$ms are wai2ed and 1F o" t!e s$m ass$red is paid mont!ly o Start o" 'i"e Bene"it> Dna#les a smoot! start to yo$r c!ildTs pro"essional li"e< incase o" an $n"ort$nate deat! or disa#ility o" t!e ins$red parent d$ring t!e policy term.
Invest Gain@ Invest Gain is a specially designed plan t#at offers a uni=ue combination of benefits t#at #elp you develop a sound financial portfolio for your family: o 4 Times 'i"e o2er at a little eAtra cost. o 'imited premi$m payment option a2aila#le.
1/3
A2aila#le wit! a !ost o" additional #ene"its incl$ding> *amily Income and ,ai2er o" Premi$m Bene"it
Term Care@ Term Assurance plan 1it# return of premium o An economic way o" pro2iding li"e co2er< t!is plan also ens$res t!e ret$rn o" all premi$ms at t!e time o" mat$rity. o 4$al #ene"it = 'i"e co2er Y 5et$rn o" premi$ms paid on s$r2i2al at t!e end o" t!e term. o Single premi$m payment option a2aila#le. o T!e only p$re term plan in t!e market to pro2ide 8ospital as! Bene"it.
Comparative Analysis of Mutual Funds and !IP

:nit 'inked Ins$rance Policies +:'IPs- as an in2estment a2en$e are closest to m$t$al "$nds in terms o" t!eir str$ct$re and "$nctioning. As is t!e case wit! m$t$al "$nds< in2estors in :'IPs is allotted $nits #y t!e ins$rance company and a net asset 2al$e +NAJ- is declared "or t!e same on a daily #asis. Similarly :'IP in2estors !a2e t!e option o" in2esting across 2ario$s sc!emes similar to t!e ones "o$nd in t!e m$t$al "$nds domain< i.e. di2ersi"ied e9$ity "$nds< #alanced "$nds and de#t
1/4
"$nds to name a "ew. 3enerally speaking< :'IPs can #e termed as m$t$al "$nd sc!emes wit! an ins$rance component. 8owe2er it s!o$ld not #e constr$ed t!at #arring t!e ins$rance element t!ere is not!ing di""erentiating m$t$al "$nds "rom :'IPs.
Comparison bet1een t#e t1o@

-: Mode of investmentG investment amounts
7$t$al "$nd in2estors !a2e t!e option o" eit!er making l$mp s$m in2estments or in2esting $sing t!e systematic in2estment plan +SIP- ro$te w!ic! entails commitments o2er longer time !ori;ons. T!e minim$m in2estment amo$nts are laid o$t #y t!e "$nd !o$se. :'IP in2estors also !a2e t!e c!oice o" in2esting in a l$mp s$m +single premi$m- or $sing t!e con2entional ro$te< i.e. making premi$m payments on an ann$al< !al"=yearly< 9$arterly or mont!ly #asis. In :'IPs< determining t!e premi$m paid is o"ten t!e starting point "or t!e in2estment acti2ity. T!is is in stark contrast to con2entional ins$rance plans w!ere t!e s$m ass$red is t!e starting point and premi$ms to #e paid are determined t!erea"ter. :'IP in2estors also !a2e t!e "leAi#ility to alter t!e premi$m amo$nts d$ring t!e policyEs ten$re. *or eAample an indi2id$al wit! access to s$rpl$s "$nds can en!ance t!e contri#$tion t!ere#y ens$ring t!at !is s$rpl$s "$nds are gain"$lly in2estedG con2ersely an indi2id$al "aced wit! a li9$idity cr$nc! !as t!e option o" paying a lower amo$nt +t!e di""erence #eing ad1$sted in t!e acc$m$lated 2al$e o" !is :'IP-. T!e "reedom to modi"y premi$m payments at oneEs con2enience clearly gi2es :'IP in2estors an edge o2er t!eir m$t$al "$nd co$nterparts.
1/5
,: 6<penses
In m$t$al "$nd in2estments< eApenses c!arged "or 2ario$s acti2ities like "$nd management< sales and marketing< administration among ot!ers are s$#1ect to pre=determined $pper limits as prescri#ed #y t!e Sec$rities and DAc!ange Board o" India. *or eAample e9$ity=oriented "$nds can c!arge t!eir in2estors a maAim$m o" 2.5F per ann$m on a rec$rring #asis "or all t!eir eApensesG any eApense a#o2e t!e prescri#ed limit is #orne #y t!e "$nd !o$se and not t!e in2estors. Similarly "$nds also c!arge t!eir in2estors entry and eAit loads +in most cases< eit!er is applica#le-. Dntry loads are c!arged at t!e timing o" making an in2estment w!ile t!e eAit load is c!arged at t!e time o" sale. Ins$rance companies !a2e a "ree !and in le2ying eApenses on t!eir :'IP prod$cts wit! no $pper limits #eing prescri#ed #y t!e reg$lator< i.e. t!e Ins$rance 5eg$latory and 4e2elopment A$t!ority. T!is eAplains t!e compleA and at times E$nwieldyE eApense str$ct$res on :'IP o""erings. T!e only restraint placed is t!at ins$rers are re9$ired to noti"y t!e reg$lator o" all t!e eApenses t!at will #e c!arged on t!eir :'IP o""erings. DApenses can !a2e "ar=reac!ing conse9$ences on in2estors since !ig!er eApenses translate into lower amo$nts #eing in2ested and a smaller corp$s #eing acc$m$lated. :'IP=related eApenses !a2e #een dealt wit! in detail in t!e article B:nderstanding :'IP eApensesB.
4: Portfolio disclosure
1/&
7$t$al "$nd !o$ses are re9$ired to stat$torily declare t!eir port"olios on a 9$arterly #asis< al#eit most "$nd !o$ses do so on a mont!ly #asis. In2estors get t!e opport$nity to see w!ere t!eir monies are #eing in2ested and !ow t!ey !a2e #een managed #y st$dying t!e port"olio. T!ere is lack o" consens$s on w!et!er :'IPs are re9$ired to disclose t!eir port"olios. 4$ring o$r interactions wit! leading ins$rers we came across di2ergent 2iews on t!is iss$e. ,!ile one sc!ool o" t!o$g!t #elie2es t!at disclosing port"olios on a 9$arterly #asis is mandatory< t!e ot!er #elie2es t!at t!ere is no legal o#ligation to do so and t!at ins$rers are re9$ired to disclose t!eir port"olios only on demand. Some ins$rance companies do declare t!eir port"olios on a mont!ly@9$arterly #asis. 8owe2er t!e lack o" transparency in :'IP in2estments co$ld #e a ca$se "or concern considering t!at t!e amo$nt in2ested in ins$rance policies is essentially meant to pro2ide "or contingencies and "or long=term needs like retirementG reg$lar port"olio disclos$res on t!e ot!er !and can ena#le in2estors to make timely in2estment decisions.
!IPs vs Mutual Funds

!IPs 4etermined #y t!e in2estor and can #e modi"ied as well No $pper limits< eApenses determined #y t!e ins$rance company Not mandatoryW 3enerally permitted "or "ree or at a nominal cost Mutual Funds 7inim$m in2estment amo$nts are determined #y t!e "$nd !o$se :pper limits "or eApenses c!argea#le to in2estors !a2e #een set #y t!e reg$lator 6$arterly disclos$res are mandatory Dntry@eAit loads !a2e to #e #orne #y t!e in2estor
1/)
In2estment amo$nts
DApenses Port"olio disclos$re 7odi"ying asset allocation
TaA #ene"its
Section (/ #ene"its are a2aila#le on all :'IP in2estments
Section (/ #ene"its are a2aila#le only on in2estments in taA=sa2ing "$nds
W T!ere is lack o" consens$s on w!et!er :'IPs are re9$ired to disclose t!eir port"olios. ,!ile some ins$rers claim t!at disclosing port"olios on a 9$arterly #asis is mandatory< ot!ers state t!at t!ere is no legal o#ligation to do so.
I: Fle<ibility in altering t#e asset allocation

As was stated earlier< o""erings in #ot! t!e m$t$al "$nds segment and :'IPs segment are largely compara#le. *or eAample plans t!at in2est t!eir entire corp$s in e9$ities +di2ersi"ied e9$ity "$nds-< a &/>4/ allotment in e9$ity and de#t instr$ments +#alanced "$nds- and t!ose in2esting only in de#t instr$ments +de#t "$nds- can #e "o$nd in #ot! :'IPs and m$t$al "$nds. I" a m$t$al "$nd in2estor in a di2ersi"ied e9$ity "$nd wis!es to s!i"t !is corp$s into a de#t "rom t!e same "$nd !o$se< !e co$ld !a2e to #ear an eAit load and@or entry load. %n t!e ot!er !and most ins$rance companies permit t!eir :'IP in2entors to s!i"t in2estments across 2ario$s plans@asset classes eit!er at a nominal or no cost +$s$ally< a co$ple o" switc!es are allowed "ree o" c!arge e2ery year and a cost !as to #e #orne "or additional switc!es-. D""ecti2ely t!e :'IP in2estor is gi2en t!e option to in2est across asset classes as per !is con2enience in a cost=e""ecti2e manner. T!is can pro2e to #e 2ery $se"$l "or in2estors< "or eAample in a #$ll market w!en t!e :'IP in2estorEs e9$ity component !as
1/(
appreciated< !e can #ook pro"its #y simply trans"erring t!e re9$isite amo$nt to a de#t=oriented plan.
+: Ta< benefits
:'IP in2estments 9$ali"y "or ded$ctions $nder Section (/ o" t!e Income TaA Act. T!is !olds good< irrespecti2e o" t!e nat$re o" t!e plan c!osen #y t!e in2estor. %n t!e ot!er !and in t!e m$t$al "$nds domain< only in2estments in taA=sa2ing "$nds +also re"erred to as e9$ity=linked sa2ings sc!emes- are eligi#le "or Section (/ #ene"its. 7at$rity proceeds "rom :'IPs are taA "ree. In case o" e9$ity= oriented "$nds +"or eAample di2ersi"ied e9$ity "$nds< #alanced "$nds-< i" t!e in2estments are !eld "or a period o2er 12 mont!s< t!e gains are taA "reeG con2ersely in2estments sold wit!in a 12= mont! period attract s!ort=term capital gains taA Z 1/F. Similarly< de#t=oriented "$nds attract a long=term capital gains taA Z 1/F< w!ile a s!ort=term capital gain is taAed at t!e in2estorEs marginal taA rate. 4espite t!e seemingly similar str$ct$res e2idently #ot! m$t$al "$nds and :'IPs !a2e t!eir $ni9$e set o" ad2antages to o""er. As always< it is 2ital "or in2estors to #e aware o" t!e n$ances in #ot! o""erings and make in"ormed decisions.
.: !i=uidity
:'IPs score low on li9$idity. According to g$idelines o" t!e Ins$rance 5eg$latory and 4e2elopment A$t!ority +I54A-< :'IPs !a2e a minim$m term o" "i2e years and a minim$m lock in o" t!ree years. Ko$ can make partial wit!drawals a"ter t!ree years. T!e s$rrender 2al$e o" a :'IP is low in t!e initial years< since t!e ins$rer ded$cts a large part o" yo$r premi$m as
1/.
marketing and distri#$tion costs. :'IPs are essentially long= term prod$cts t!at make sense only i" yo$r time !ori;on is 1/ to 2/ years. 7$t$al "$nd in2estments< on t!e ot!er !and< can #e redeemed at any time< #arring D'SS +e9$ity=linked sa2ings sc!emes-. DAit loads< i" applica#le< are generally "or siA mont!s to a year in e9$ity "$nds. So m$t$al "$nds score s$#stantially !ig!er on li9$idity.
11/

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Final Report of Summer Training In

Structure of t#e 7rgani8ed "an2ing Sector in India

+N$m#er o" #anks is in #rackets.-

During the Wars

9ears 1.13 1.14 1.15 1.1& 1.1) 1.1(

3umber t#at failed 12 42 11 13 . )

capital Paid%up &Rs: !a2#s* 35 1/. 5 4 25 1

C#allenges faced by Indian "an2ing Industry

Strategic 7ptions 1it# "an2s to cope 1it# t#e C#allenges

;Improving t#e asset =uality as per "asel II norms

Public sector banks

Pri ate sector banks

"egional "ural #anks $""#s%

&ther Public Sector #ank

Fact File of "an2s in India@

STA3$AR$ C5ART6R6$ "A30

"ecent 'lliances and Strategic 'c(uisitions

Standard C#artered Global Presence

Standard !artered 3lo#al Presence T!e Americas

Argentina Ba!amas Bra;il anada olom#ia 7eAico Per$ :S Jene;$ela

Ba!rain Cordan 'e#anon %man 6atar :AD

A"rica Tan;ania :ganda Pam#ia Pim#a#we

Standard C#artered "an2 !imited India

" SI36SS I3SIG5TS 7F STA3$AR$ C5ART6R6$

Turnover@ Net re2en$e> :SQ5.3) #illion +2//4-

Investment Strategies of General Public

$ata collection and Researc#@

Investment Strategy Huestionnaire

+ -Pri2ate Sector Dmployee< + -3o2t. Dmployee< Dmployed< + -%t!ersVVVV..

36.36% Female Male 63.64%

1.5L to 4L 4L to 6.5L Above 6.5L Below 1.5L

Preferred Investment Profile

4i52 Low 47.73% Me&ium

Satisfaction !evel Profile

38.64% 4i52 56.82% Low Me&ium

Findings of t#e Researc#@

-(o$ )a5e Fiel&s 4e(e

8enu(e Mo(e t2an 5 9(s Less t2an 1 9( 3 to 5 9(s 1 to 3 9(s

,: Relation bet1een Income & Ris2

-(o$ )a5e Fiel&s 4e(e

-(o$ )a5e Fiel&s 4e(e

) (e"e(e& 1nvestm ent

I: Relation bet1een Age of Investor and 7bDective of Investment

-(o$ )a5e Fiel&s 4e(e

:b;e*tive 8a, !avin5s !avin5s !a"et% 7A '(owt2 +etu(ns 62il& Ma((ia5e

+: Relation bet1een Investment & Tenure

6ount o" 1nvestment

-(o$ )a5e Fiel&s 4e(e

.isan /i0as )at(a

Li"e 1nsu(an*e )oli*ies

.: Relation bet1een Investment and 7ccupation

)(e"e(e& 1nvestment Bullion 1 1 2 +eal #state 5 4 1 1 11

Fi,e& -e$osits 1 1 2 1 5 !2a(es -ebentu(es 3 2 5

.isan /i0as )at(a 1 2 3 3L1) 1 1 2

Li"e 1nsu(an*e )oli*ies 2 1 1 4 '(an& 8otal 16 8 18 2 44

-(o$ )a5e Fiel&s 4e(e

(: Relation bet1een Age of Investor & Tenure

6ount A5e A5e 25 to 40 40 to 60 Above 60 Below 25 '(an& 8otal

-(o$ )a5e Fiel&s 4e(e

8enu(e Mo(e t2an 5 9(s Less t2an 1 9( 3 to 5 9(s 1 to 3 9(s

J: Relation bet1een Age of Investor & 7bDective of Investment

-(o$ )a5e Fiel&s 4e(e

): Relation bet1een 7bDective of Investment

Li"e 1nsu(ane )oliies

Li"e 1nsu(ane )oliies 2 1 1 4 '(an& 8otal 16 8 18 2 44

5$FC 5s5</// ree ree

07TA0 5s1/</// ,eekly 5eport=5s3//@6$arter 4aily 5eport=5s15//@6$arter ree ree NA