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A STUDY ON CONSUMER PREFERENCE TOWARDS PORTFOLIO MANAGEMENT SERVICES AT WAY2WEALTH BROKERS PRIVATE LIMITED IN PUNE.

Presented by

Prof. Rishikesh Kumar Assistant Professor Alard Institute of Management Sciences, Pune. Cell Ph. No. - 09049767802. rishi131984@gmail.com

Introduction:The objective of this research is consumer preference for investment and their interest in portfolio management services. It focuses on the construction and management of the customer’s portfolio

. pension funds and other such methods of investing in the asset classes. life insurance. Financial markets these days are characterized by increased volatility and strong links to various domestic and global factors. Non Resident Indians (NRIs). Way2Wealth portfolio management team which is in constant touch with ever changing economic and market conditions. equity. fixed-interest bonds. Investment vehicles include unit trusts. and currency trading. To study and analyze the various financial services of portfolio management. The company deals with all kinds of financial products like mutual funds. Portfolio Management Services is an exclusive offering from Way2Wealth that specializes in providing risk managed investment solutions to discerning High Net Worth Individuals. Investors have a number of investment needs and desires which may be fulfilled with different investment vehicles however ascertainment of the appropriate investment vehicle for the investor is the challenge. and property. is in a better position to handle these complex and dynamic situations. Selecting appropriate investment vehicles for an investor according to his needs must bear in mind the ‘horses for courses’ systems so well accepted by horse race followers: a horse that consistently performs well on one course may consistently underperform on the other race courses. The asset classes include equity. commodity. coupled with substantial market knowledge. Overseas Corporate Bodies (OCBs) and Indian Corporates. portfolio management services. Objectives of the Study:• • To study consumer preference towards portfolio management services. fixed deposits.with the help of various investment assets. general insurance. real estate etc. debentures. Investment asset classes cover the range of areas in which an investment may be made either by direct purchase or indirectly through such collective investment schemes such as unit trusts.

Descriptive Method.The primary data were collected through well-designed and structured questionnaires based on the objectives. The sample size is 100. Method of Research: . Sample Size: . Methodology of the Study:Primary Data. Limitations of the Study:1. 2.The secondary data are those. Reasons for Investment. which have already been collected by someone else and passed through statistical process & through various newspapers.• To find out the ways and means to improve the services of Way2Wealth brokers Pvt. Data Interpretation & Analysis:Table 1. . Quota Sampling. magazines and Internet etc. Sampling Area: .Simple Random Sampling. Sampling Method: .Pune City. The research is conducted in Pune city only.100. Secondary Data: .Ltd.

Reasons for Investment Security Returns Tax saving Returns + Tax saving Security+ tax saving All three reasons Preference of respondents in % 32% 12% 14% 23% 12% 7% INTERPRETATION: Above table shows that 32% people invest for the purpose of security. Table 2.1 lac (78%). Annual Investment Below 1 lac 1 lac – 2. Table 3. 12% people invest for earning high returns and 14% people invest for tax saving purpose. Duration Considered for the investment. 23% people choose to invest for returns as well as tax saving. 78% 7% 7% 3% 5% INTERPRETATION: Most respondent prefered to invest below a range of Rs. Consumer preference for Annual Investment. Many people choose investments on basis of more than one criterion. Duration Considered % of respondent .5 lacs 2. Other people prefer to invest in various ranges as shown in above graph.5 lacs – 5 lacs 5 lacs-10 lacs Above 10 lacs % of respondent.

. Percentage of Total Earning Upto 10% Upto 25% Upto 50% Above 50% % preference of respondent 51% 40% 9% 0% INTERPRETATION: Maximum people i. Sources for Investment. Some 9% people may be belonging to higher income class invest up to 50% of their total earnings.e.Below 3 years 3 to 5 years 5 to 10 years Above 10 years 43% 12% 5% 40% Interpretation: From the data collected 43% want to invest for lesser duration and even less than a year as they find it risky to keep money in market for a long time because of great versatility of market conditions. On the contrary 40% of people invest for more than 10 years in insurance like services which can benefit them whole life. Table 4. 51% people invest only 10% of their total earnings in PMS. Table 5. Other 40% people invest up to 25% of total income in PMS and feel that it is beneficial. Consumer preference about their income percentage in PMS.

While 25% seek advice from their friends or relatives. . Consumer preference while deciding parameters to select an investment option. Table 6.29% people get information from internet portals and this group mainly includes IT professionals. Remaining people invest or have mutual funds or equity as their investment options though being risky investment options.Their percentage is 14% and 19% respectively. Rating for various Investment options Recurring Deposit NSC/PPF Insurance Bonds / Debentures Term Deposits Mutual Funds Stocks / IPO’s gold % preference of respondents 7% 9% 16% 8% 6% 14% 19% 21% INTERPRETATION: Gold is the major investment options for many people in India as acts as a tool for adverse conditions. Table 7.Sources for Investment Financial Advisors Friends/ relatives Internet Portals % of preferences of respondent 46 25 29 INTERPRETATION: On the basis of above table it’s clear that almost half that is 46% people trust on financial advisors to decide about their investments. Consumer preference rating for various investment options.

 PMS is a product that basically starts above Rs. Findings While going for investment decisions one should follow the rule that “everyone should invest at least 30% of his earnings” in order to have proper management of his money. 9% people consider duration of investment.  People invest in “high risk-high return profile” products like PMS in order to get maximum return as a sole purpose.’ So it is really very beneficial for all the customers having a big risk appetite as all the investment options are considered under one head of PMS. . They invest in guaranteed return giving schemes like insurance. Stocks. returns and tax saving etc. commodities like products included in high risk profile are mainly preferred by the experienced players of the market and investors having high risk appetite.  There are various intentions of investors behind investing such as security.Parameters for PMS selection Liquidity Risk Term/duration Tax benefits Flexibility Returns % preference of respondent 43% 9% 23% 12% 13% INTERPRETATION: Above chart indicates that 43% people give importance to liquidity risk while choosing an investment option..  PMS is a product coming under ‘High Risk High Return Profile. in order to get maximum returns with lesser risk. gold schemes etc. So it is basically meant for HNI clients. 25 lakhs. And they invest in mutual funds like products in order to get tax benefits solely.12% people think that flexibility is must for any kind of investment option while 13% think of returns as a major parameter for investments. 23% consider investment for tax benefits solely.

 The main thing is that many people do not exactly understand what is Portfolio and what Portfolio Management Services are. .  Company should invest in technology to provide superior customer services and thereby improving productivity of their operations and thus consequently providing low price to customers. So combined efforts should be taken in order to create preference about PMS.  Indian broking firms need to learn certain aspects from international broking firms abroad in reaching out to customers. I think at least they should consult the financial advisor sometimes in order to get better information.  Many experienced investors manage their own portfolio.  Way2Wealth need to take special efforts on promotional activities so that people would be aware about services of Way2Wealth. The international broking community has been ahead of Indian broking firms in offering products and services through different channels. An important area for Indian firms to learn is how to allocate their investment resources across different channels.  PMS services should start with the investment generally start from and above Rs. Hence it is very essential to create preference among them about PMS and for that combined efforts needed to be taken in the financial industry. People are still ignorant about PMS and different funds available under the name of PMS services. Suggestions: Customers with heavy potential to invest must go for PMS as it provides all investment options under one roof and management of your money by experienced experts.10 lakhs. So middle income class people face problem to purchase the Portfolio Management Services even though they are interested to purchase it.

Sixth Edition. Wealth Compass (Magazine of Way2Wealth) WEBSITES:      www.com www. Third Edition. Khan. Jordan. Avadhani. Fischer.com www..moneycontrol. Tata McGraw Hill Education. Third edition 2007. Gurusamy. Fifth Edition.way2wealth. Third Edition.com www. Himalaya Publication House.Y. Cowdell and Billings. Tata McGraw Hill. Dr. Tata McGraw Hill Education Pvt. Marketing of Financial services.  V. A. Pearson Education.   M. Investment Analysis and Portfolio Management. Investment Management. Security Analysis and Portfolio Management. Financial Markets and Institutions.    Watsham.com www.google. Financial Services.theeconomictimes. International Portfolio Management.References: Prasanna Chandra. Ronald J. Ltd.com .  Donald E.investopedia. S.

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