Bachelor of Banking and Insurance
Semester V

University of Mumbai


Roll No.314

Uttari Bharta Sabha’s





INSURANCE) SEMESTER V has undertaken and completed the project work titled,
MARKET .During the academic year 2015-2016 .This is a bonafide project, work and
information present in it is true and original to the best of our knowledge and belief.

Course- Co-ordinator


(Mrs. Chandrakala

(Dr. Ajay Bhamare)


Project Guide

(Mr.Nagaraj Arabhavi)

External Examiner


BHANDUP (E) – 400042.
TEL.NO. 2566 6691 / 2566 2921


D.A.V COLLEGE, TYBBI (SEM V) hereby declare that I have
completed this project on “COMPARATIVE ANALYSIS OF VARIOUS
2015- 2016. This information submitted is true & original to the best of
my knowledge.


Signature of Student



It gives me immense pleasure to submit the project
Mumbai University conducted under the guidance by Prof. (Mr)
Nagaraj Arabhavi
I would like to thank the bank manager & all
professionals engaged in this field who were directly or indirectly
connected & helping hands in this project. Also thanking my
friends, colleagues & all those

Thank you




The project “Comparative Analysis of various Financial Institutions in the market” was
done to get the idea, as well as knowledge, benefits and use of financial advisor in the present
scenario. The basic objective behind the study carried out by me is to

know much more

about the prospects of Financial Planning in the growing economy. People should come out
of the concept of just keeping their money in Savings Account and Fixed Deposits and should
concentrate on their financial planning to maximize returns by taking proper guidance from
financial planner.

Most of the advisors provide expertise information and knowledge about various
financial products, like bonds, mutual funds, insurance, equity market and real estate etc.
The in-depth analysis of the report will help the reader know much more about the
investors and financial advisors. Investors having low saving potential, growth of capital acts
as a primary objective behind investments. Investors get high level of satisfaction from
existing financial advisors, which depicts that there is a need of financial institutions to
approach these investors in a proper manner so as to provide value additions to the saving
potential and portfolio.
The sum up, there has been a sustained effort and dedication involved to make this
study a comprehensive market study but at the same time. The researcher is open to any kind
of suggestions that further needs to be considered in respect to the course of his work.


Chapter No. Title

Page No.


Introduction of the Topic
Relevance of the Project
Objectives of the Study
Scope of the Study
Limitations of the Study



Profile of the Organisation
History & General Information
Company Profile



Review of Literature
Meaning and Concept


Research Methodology
Method of Study
Secondary data




Analysis of the comparison




. 65


Financial institutions are the businesses and organizations involved in the collection and
distribution of money. They develop the methods and procedures that allow them to
collect money from depositors and lend it out to borrowers. They develop the financial
securities and provide the financial markets where lenders, borrowers, investors,
speculators, and hedgers can exchange money for future payments in the form of
interest, for ownership interests, such as stocks, for the payment of future contingent
claims, such as with options and derivatives, and for sharing risk, such as the pooling of
insurance premiums for financial protection. This pooled money is then given as loans or
as an investment to businesses and other organizations to finance specific projects or to
provide financing for other needs.
Businesses make money by supplying products and services that are desirable, and the
more desirable the product or service, the more money that the business can earn, and,
thus, the greater are the returns on the investments in the business. In their desire to earn
greater returns, financial institutions help to funnel money to the most successful
businesses, which allows them to grow faster and supply even more of the desirable
goods and services. This is how financial institutions greatly contribute to the efficient
allocation of economic resources. Hence, financial institutions are also financial
Financial intermediaries profit by earning higher returns on their investments than they
pay for their sources of money. The assets of a financial intermediary are the loans,
stocks, bonds, and real estate that are the company's investments and its liabilities are its
obligations to its customers, which includes deposits, insurance policies, and pension
A characteristic of all financial institutions that accept public funds is that they are
heavily regulated, not only because of their central importance to modern economies, but
because most people would be unwilling to put their money in a financial institution if

they did not believe it was safe to do so. If people kept their money instead of saving or
investing it, then the allocation of economic resources would be much less efficient.
Financial Institutions in India are divided in two categories. The first
type refers to the regulatory institutions and the second type refers to the
The regulators are assigned with the job of governing all the divisions of
the Indian financial system. These regulatory institutions are responsible
for maintaining the transparency and the national interest in the
operations of the institutions under their supervision.The regulatory
bodies of the financial institutions in India are as follows:
Reserve Bank of India (RBI)
Securities and Exchange Board of India (SEBI)
Central Board of Direct Taxes (CBDT)
Central Board of Excise & Customs
Apart from the Regulatory bodies, there are the Intermediaries that include the banking and
non-banking financial institutions.
Some of the specialized financial institutions in India are as follows:
Unit Trust of India (UTI)
Securities Trading Corporation of India Ltd. (STCI)
Industrial Development Bank of India (IDBI)
Industrial Reconstruction Bank of India (IRBI), now (Industrial Investment Bank of
Export – Import Bank of India (EXIM Bank)
Small Industries Development Bank of India (SIDBI)
National Bank for Agriculture and Rural Development (NABARD)
Life Insurance Corporation of India (LIC)
General Insurance Corporation of India (GIC)
Shipping Credit and Investment Company of India Ltd. (SCICI)
Housing and Urban Development Corporation Ltd. (HUDCO)
National Housing Bank (NHB)
The banking institutions of India play a major role in the economy of the country. The
banking institutions are the providers of depository and transaction services. These activities
are the major sources of creating money. The banking institutions are the major sources of
providing loans and other credit facilities to the clients.
Apart from the banking financial institutions, there are a number of specialized
financial institutions in India
that have been incorporated for a definite purpose. These institutions include the insurance
companies, the housing finance companies, mutual funds, merchant banks, credit reporting
and debt collection companies and many more.

Apart from these, there are several other financial institutions that are existing in the country.
These are the stock brokers and sub-brokers, portfolio managers, investment advisors,
underwriters, foreign institutional investors and many more.

Financial institutions provide consumers and commercial clients with a wide range of
services and different types of banking products. The importance of financial institutions to
the wider economy is apparent during market booms and recessions. During economic
upturns, financial institutions provide the financing that drives economic growth, and during
recessions, banks curtail lending. This can exacerbate a country's financial problems and
draw attention to the fact that economies are heavily reliant upon the financial sector.

Moneylenders and insurance companies have been lending money to people and insuring
against loss for centuries, but in the 20th century, governments around the world began to
recognize the importance of financial institutions and passed legislation that made it easier
for more people to obtain products and services from these entities. In many countries, banks
are encouraged or even compelled to lend money to home buyers and small businesses.
Readily available loans encourage consumer spending, and this spending leads to economic
Consumers are often either people with cash who are seeking returns on their money or
people without cash who need to borrow money in order to cover their short-term expenses.
Banks act as intermediaries between these two groups. People with cash lend money to the
back in return for a nominal rate of interest, and banks lend that same money to consumers at
a much higher rate of interest. The difference between the price a bank pays to borrow and
the price it charges its own customers to borrow enables the bank to generate a profit. In
many instances, the importance of financial institutions is most vivid during recessions when
savers run short of cash and banks lack the cash to finance consumer lending.

1.3Objective of Study

To study the prospects of various financial products provided by different financial
institutions in the market. People should come out of the concept of just keeping their money
in Savings Account and Fixed Deposits and should concentrate on their financial planning to
maximize returns by taking proper guidance from financial planner.
Financial institutions, such as banks, credit unions, stockbrokers, finance and insurance
companies, often have a business plan with a set list of goals and objectives. These objectives
are a set of standards or goals that the institution as a whole and each employee will work
toward on a daily basis. Objectives can be external and benefit the customers and clients, but
also can have external benefits and create a brand for the financial institution.

Quicker Customer Service
Financial institutions may have customers coming in to get services or use self-service
options to speed up the service process. Since customers and clients are an important asset for
financial institutions, an objective is to provide the best customer service to keep clients
satisfied and happy. Banking institutions, for instance, may want to improve the customer
service procedures within the bank when people come in to pay bills or withdraw money.


Credit unions could have the same objective, as members are given reasonable credit rates
and the unions need the members to stay active and afloat.

Help People Invest

Some financial institutions, such as banks and stockbrokers, offer people help in
investing to increase income and worth. If the client has little to no experience in financial
investments, the stockbroker or banking manager should provide the knowledge and expertise
to help the client invest wisely. An objective can include teaching and helping clients
understand the world of investing and teach them tools to keep track of their own

Savings Plans

Many financial institutions manage people’s personal money. Since fees, investments,
insurance and other services may cost the customer money, a financial institution may have
an objective to provide services and savings plans that will save the customer money. This
can include combining banking and insurance services for one financial institution rather than
having several service providers. It also can mean changing insurance plans, for instance.

Insurance Premiums and Plans

Insurance companies and larger banking branches may offer clients insurance plans
and premiums to protect clients. This can include credit card insurance, loan limit insurance,
car insurance, travel and home insurance, and insurance against burglary and home invasion.
Since the needs of each client differ, the financial institution may have an objective to provide
insurance plans that are tailored for each client. This is not only to keep current clients
satisfied but also in hopes of attracting new customers.


1.4 Scope of Study

There exist a potential growth in the wealth management industry and thus this project
authenticates the feasibility of financial institutions in the market.

Expanding needs and proliferation of financial products are making it difficult for
individuals to invest without planning. Most are aware that planning is critical; yet
don’t have the time or the expertise to develop a plan & therefore the role of Financial
Planner comes in picture.

In recent years, the standard theory of the integrated firm has given way to a concern
about the relative advantages of in-sourcing over outsourcing, recognizing that the
scope of the firm is a strategic matter. The issue of in-sourcing versus outsourcing has
been accompanied by a concern about the geographical scope of the firm: whether the

outsourcing of tasks and functions is close-at-hand or offshore.
In this article, we begin with reference to Coase and the literature that has followed in
his wake suggesting a crucial and unrecognized issue in his conceptualization is the
problematic question of who has authority to make decisions (governance). We
suggest a way of conceptualizing the tasks and functions of firms which rely upon
firm-specific strategic assets including human capital, governance and decision-

making procedures, and the information systems that underpin decision making.
The objects of our analysis are financial institutions such as mutual funds, pension
funds, sovereign wealth funds and investment management companies. To the extent


that the cost of services is important, these types of financial institutions have sought

to discount costs by outsourcing, even off-shoring.
At issue is the viable geographical reach of this type of institution noting the various
ways contemporary institutions (small and large) have sought to deal with this issue.
Our analysis is conceptual and theoretical rather than empirical and is based on a set
of case studies and fieldwork and the implications to be drawn thereof.

1.5 Limitation of the Study

If the scope of the research was limited to top 7 wealth management companies, namely
YES Bank, Citibank, UTI Bank, HSBC Bank, HDFC Bank, Bajaj Capital and Religare
Enterprises Limited.

The sample area was primarily in Jaipur. (Johari Bazar, M I Road, Tonk Road, Malviya
Nagar and Jhotwara Industrial Area) and at the HDFCS LIC,C-scheme ,opposite jaiclub,
Jaipur and accordingly the response is presumed to represent whole of India.

The sample size comprised of 100 respondents from different fields and income group,
and their responses are presumed to represent the wealth management mark

The score allotted by the different respondents on different parameter might not be with
the same yardstick, as individuals are subjective in nature as well as the environment
round them differs, which play a critical role in building up a perception.

The concern requiring finance from public financial institutions has to submit itself to a
thorough investigation that involves a number of formalities and documents.

Many deserving concerns may fail to get assistance for want of security and other
conditions laid down by these institutions.


Sometimes, these institutions place restrictions on the autonomy of management. They
lay down a convertibility clause in loan agreements. In some cases, they insist on the
appointment of their nominees to the Board of Directors of the borrowing company.

 The main advantages of institutional finance are as follows:
Both risks as well as loan capital are available. Public financial institutions provide
underwriting facilities also.

New companies which may find it difficult to raise finance from the public can get it
from these institutions. Assistance is available when recourse to normal sources is
impracticable or unprofitable. Modernization and expansion plans can be financed
without much strain on the financial structure of the company.

As these institutions carry out a thorough investigation before granting assistance to a
concern, relationship with them helps to increase the credit-worthiness of a company.


Loans and guarantees in foreign currency and deferred payment facilities are available
for the import of required machinery and equipment.

The rates of interest and repayment procedures are convenient and economical.
Facilities for repayment in easy installments are made available to the deserving

Along with finance, a company can obtain expert advice and guidance for the successful
planning and administration of projects.


The Financial Institutions in India mainly comprises of the Central Bank which is better
known as the Reserve Bank of India, the commercial banks, the credit rating agencies, the
securities and exchange board of India, insurance companies and the specialized financial
institutions in India.

Reserve Bank of India:
The Reserve Bank of India was established in the year 1935 with a view to organize the
financial frame work and facilitate fiscal stability in India.
The bank acts as the regulatory authority with regard to the functioning of the various
commercial bank and the other financial institutions in India.
The bank formulates different rates and policies for the overall improvement of the banking
sector. It issue currency notes and offers aids to the central and institutions governments.

Commercial Banks in India:
The commercial banks in India are categorized into foreign banks, private banks and the
public sector banks. The commercial banks indulge in varied activities such as acceptance of
deposits, acting as trustees, offering loans for the different purposes and are even allowed to
collect taxes on behalf of the institutions and central government.

Credit Rating Agencies in India:


The credit rating agencies in India were mainly formed to assess the condition of the financial
sector and to find out avenues for more improvement. The credit rating agencies offer various
services as:

Operation Up gradation

Training to Employees

Scrutinize New Projects and find out the weak sections in it

Rate different sectors

The two most important credit rating agencies in India are:



Securities and Exchange Board of India:
The securities and exchange board of India, also referred to as SEBI was founded in the year
1992 in order to protect the interests of the investors and to facilitate the functioning of the
market intermediaries. They supervise market conditions, register institutions and indulge in
risk management.

Insurance Companies in India:
The insurance companies offer protection against losses. They deal in life insurance, marine
insurance, and vehicle insurance and so on. The insurance companies collect the little saving
of the investors and then reinvest those savings in the market. The insurance companies are
collaborating with different foreign insurance companies after the liberalization process. This
step has been incorporated to expand the Indian Insurance market and make it competitive.

Specialized Financial Institutions in India:


The specialized financial institutions in India are government undertakings that were set up to
provide assistance to the different sectors and thereby cause overall development of the
Indian economy. The significant institutions falling under this category includes:

Board for Industrial & Financial Reconstruction

Export-Import Bank Of India

Small Industries Development Bank of India

National Housing Bank
For more information on Financial Institutions in India please refer to the
following links:
Financial Institutions in India

Commercial Banks

Insurance Companies

Credit rating agencies

Finance Minister

The New Role of Finance

Finance and India's Development

Micro Finance

Specialized Financial Institutions

Online Services Ministry



Planning for a secure financial future is not easy. Yet increasingly, individuals are in charge of
their own financial futures. Most are aware that planning is critical, yet don’t they have time
or the expertise to develop a plan and make the needed financial decisions. So there arises a
need for Financial Advisors to manage the individual’s wealth and the whole process of
managing this wealth is known as Wealth Management
These financial advisors help individuals or corporate manage their wealth appropriately

(I) Investment Solutions: - The financial planner helps the individuals diversify their
portfolio through alternative investment plans, mutual funds, equities, and even save for
retirement through annuities.

(II) Financial Planning: - Financial Planning is an exercise aimed to ensure availability
of right amount of money at the right time to meet the individual’s financial goals. Financial
institutions plan individual’s current expenditures and save for future short-term or long-term
goals by analyzing different options available.

(III) Retirement Planning: - The financial planner guides their clients in planning for
their financial requirements after retirement, by helping they identify goals, researching and
analyzing different opportunities to secure funds and make investments to suits their needs.
(IV) Wealth Management: - It is a comprehensive service to optimize, protect and manage
the financial well-being of an individual, family or corporation. Its basic definition covers
advice on loans, investments and insurance to give a broad picture of how individuals should
best deploy their financial resources. A broader picture may include tax advice, estate
planning, business planning, charity foundations and other financial needs.


The kinds of services Financial Institutions offer can vary widely. Some institutions assess
every aspect of one’s financial life, including saving, investments, insurance, taxes,
retirement, and estate planning and help one develop a detailed strategy or plan for meeting
all financial goals. The major players in the market are as follows:

• YES Bank
• Citibank
• UTI Bank Limited
• HSBC Bank
• HDFC Bank Limited
• Bajaj Capital
• Religare Enterprises Limited






YES BANK has been conceived in the spirit of professional entrepreneurship, with an
unstinted commitment to establish a high quality, technology driven, state-of-the-art private
Indian Bank catering to ‘Emerging India’.
The vast banking experience of the Promoters, Rana Kapoor and Ashok Kapur who have a
collective financial stake of 38.62% has been strengthened by the financial support of
Rabobank Nederland to provide YES BANK a strong foundation of enduring financial trust.
YES BANK looks to offer comprehensive banking and financial solutions. Which is why,
they have inducted top quality Human Capital across all the banking functions, including
Corporate & Institutional Banking, Financial Markets, Investment Banking, Business &
Transactional Banking and Retail Banking & Wealth Management.

(II) Service Offerings
(A)Mutual Funds
YES Bank tap into the latest market trends to give the clients the access to the best
Mutual Funds.

(B) Portfolio Management Services
The bank helps you to manage your existing equity portfolios with the help of selected
fund managers thus providing the clients with professional services and customized options
to meet their investment needs.


(C) GOI Bonds
They provide you with fixed tenure Bonds, issued by the Government of India, which
ensure regular fund inflows.

(D) Tax Saving Bonds
By investing in specified bonds, the bank can help you to reduce your tax liability under
Section 54EC of the Income Tax Act,1961

(E) Subscription to IPOs
The bank facilitates subscription to select IPOs in the capital market, helping you to take
timely advantage of available opportunities.

(F) Life Insurance
YES BANK has partnered with Max New York Life, one of the most reputed Life
Insurance companies in India. The banking sector can play a constructive role in being an
agent of change and a creator of social and economic value. At YES BANK, they aspire to
create and share value. Max New York Life’s internationally benchmarked training
processes; flexible product suite, service excellence and financial strength complement this
outlook, which ensure that we are able to deliver the true value of life insurance to our
customers. YES BANK provides the entire suite of life insurance products, ranging from risk
protection to investment-related unit linked products, for individuals, groups or select

(G) General Insurance
YES BANK has partnered with Bajaj Allianz General Insurance Co to distribute their
Non Life Insurance products to our clients.






(I) Introduction
Citigroup in India Citigroup is the single largest foreign direct investor in the financial
services industry in India. Committed to India for over 100 years, Citigroup considers itself a
local bank with an international perspective backed by the largest global network. With a staff
strength of over 15,000, Citigroup has consolidated its position as the most innovative and
comprehensive financial products and services provider in the country, and today has a
customer base of over 1,000 large corporate, over 22,000 small and medium enterprises and
over 5.5 million retail customers. A pioneer in consumer banking, Citibank was the first to
introduce credit cards, focused consumer lending programs and electronic banking in India.
Today, the Citibank network comprises of 39 bank branches across 27 cities and over 400
CitiCard Banking Centers–which combine ATMs and self-service phone and Internet banking
—offering CitiGold wealth management, credit cards, mortgage services, Auto Loans,
Personal Loans, Suvidha and NRI Services. Through CitiFinancial, Citigroup offers
consumer finance services in the country.

(II) Service Offerings
CitiGold offers the clients a comprehensive range of products to meet their transaction,
savings, investment, and insurance requirements. The clients can select from a set of term and
endowment insurance policies brought to them through bank insurance partners so that the
client’s needs for wealth protection are taken care of. The clients can also select from a range
of asset products, namely personal, home and auto loans at special relationship pricing.
CitiGold Wealth Management offers the clients an exclusive privilege that comprises of:


(A) Mutual Funds :
At CitiGold you can choose from a range of pre-selected Mutual Funds managed by
some of the biggest names in fund management such as Alliance Capital, Franklin
Templeton India, Birla SunLife, Zurich India, DSP Merrill Lynch, HDFC, IDBI
Principal and Prudential - ICICI. The funds on offer are from a rigorously compiled list
that ensures only the best reaches you.

(B) Tax Advisory Services :
CitiGold has tied up with the leading tax advisory firm - Deloitte, Haskins & Sells to
help the clients with their tax management. Deloitte, Haskins & Sells, a member firm of
Deloitte Touché Tohmatsu (DTT), is amongst the leading global taxation-consulting firms.
DTT operates from 130 countries, has more than 6,000 partners and over 90,000
professionals around the globe.

(C) Real Estate Advisory Services :
In today's market, real estate presents an attractive real estate investment option. To assist
the clients with advice on various real estate investments, or to help them in leasing, buying
or selling properties, CitiGold has tied up with a world-class real estate consulting firm Chesterton Meghraj Property Consultants. This service is currently available in the cities of
Mumbai, Kolkata and Delhi only. CitiGold will organize special seminars for the clients
with these consultants and the clients can also consult them one-on-one on real estate
investment options.

(D) Art Advisory Services
In today's market, art presents an attractive investment option. To assist the clients with
advice on various art investments, or to help them in buying or selling art, CitiGold has tied
up with a reputed art gallery, Apparao Galleries.


(E) Insurance Services
In today's market, insurance presents an attractive investment option. To assist the clients
with advice on various insurance policies, or to help them in purchasing insurance, CitiGold
has tied up with Birla.


UTI Bank was the first of the new private banks to have begun operations in 1994, after
the Government of India allowed new private banks to be established. The Bank today is
capitalized to the extent of Rs. 280.12 Corers with the public holding (other than promoters)
at 72.43 %. Presently the Bank has a very wide network of more than 450 branch offices and
Extension Counters. The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to achieve


(II) Service Offerings by Capital Market

(A) Equity Market Content
Capital Market is pioneer in offer equity related content for UTI Bank’s portal which
• Equity Market Commentary
• Stock Price Data
• Charting Facility
• Financial Data
• IPO Data
• Portfolio Tracker

(B) Mutual Funds Content
Indian Mutual Fund industry has picked up, It is fastest growing industry, with number of
growing investor, today, there are 36 Mutual Funds and over 200 schemes with total assets of
approximately Rs. 81,000 crores. So it has become essential for you to keep updated
information on your portal. Capital Market offers you range of content solution as follows:

• Mutual Fund NAV
• Fund Profile Sheet


• Dividend & Mobilization Details
• Mutual Fund – News
• Mutual Fund – NFO
• Mutual Fund – Tools

(C) Commodity Market
Commodities Market is growing in India and Capital Market offers following screens
pertaining to Commodity Market:

• Commodity prices End of the day for all the exchanges:
o Gainers & Losers
o Top Traded Value
o Advance Decline
• Scrolling ticker for Spot & Future prices & Get Quote button.
• Commodity news is also updated on daily basis


4. HSBC Bank

The antecedents of the HSBC Group in India can be traced back to October 1853 when
the Mercantile Bank of India, London and China was founded in Bombay (now Mumbai).
The acquisition in 1959 by The Hong Kong and Shanghai Banking Corporation Limited of
the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group.
HSBC in India is proud to have retained the Group's pioneering streak by being an active
partner in the development of the Indian banking industry - even giving India its first ATM
way back in 1987. The organization’s adaptability, resilience and commitment to its
customers have further enabled it to survive through turbulent times and prosper through
good times over the past 150 years.

(II)Service Offerings
(A) Financial Planning Services
Inflation, falling interest rates and fluctuating market conditions require you to plan your
finances carefully. Celebrate important occasions in the future by managing your wealth well
now. HSBC's Financial Planning Services offer assistance to secure your future. Our financial
planning services are available for existing HSBC customers and are free of cost.

(B) Mutual Funds
Use the proven expertise and insights of the world's local bank for your investments. We offer
you investment options in funds that meet our selection criteria and fit your requirements,
helping you create and increase your wealth potential in the long-term scenario.

(C) Insurance

You have probably planned your life with great care, working slowly and steadily towards
fulfilling your dreams and ambitions. Unfortunately you have no control over certain natural
and man-made events that may overturn your plans.

As you change so do your insurance needs. The insurance solution that is relevant to you
today may be very different to the solution you require years from now. It is therefore critical
for you to identify protection needs that are pertinent to you and your circumstances.



5 .Religare

(I) Introduction
Religare Enterprises Limited was promoted by the promoters of Ranbaxy Laboratories
Limited and it was originally incorporated as “Vajreshwari Cosmetics Private Limited” on
January 30, 1984. The name of the company was changed to “Religare Enterprises Private
Limited” on January 10, 2006.
Religare Enterprises Limited (REL), is one of the leading integrated financial services groups
of India. REL’s businesses are broadly clubbed across three key verticals, the Retail,
Institutional and Wealth spectrums, catering to a diverse and wide base of clients.
REL offers a multitude of investment options and a diverse bouquet of financial services and
has a pan India reach in more than 1550 locations across more than 460 cities and towns.

(II) Service Offerings

(A)SME Finance

Religare Finvest Limited (RFL) is an NBFC that provides lending solutions to the
SME sector. It has a book size of INR 120.9 billion or nearly USD 2 billion and a
network of 25 branches, covering the major SME clusters across India.

(B)Capital Markets & Wealth Management[edit]

Retail Broking: Religare Securities Limited (RSL), the broking arm of REL,
offers services such as equity broking (cash and derivatives segments), currency futures
and options broking and depository participant services. It is affiliated with the country's
leading exchanges (NSE and BSE) and is a depository participant with NSDL and CDSL.


Capital Markets: Religare Capital Markets (RCM) is an Asia focused Institutional
Equities and Investment Banking platform partnering emerging growth companies, recognized by
clients and independent agencies alike for the quality of its research and execution.

Wealth Management: Religare Wealth Management Limited (earlier Religare
Macquarie Wealth Management (RMWM), which was formed as a joint venture between
Religare and Macquarie of Australia. In 2013 Religare acquired Macquarie's stake[9]) It
has positioned itself as an open-architecture advisory-led model.

(C)Asset Management[edit]

Global Asset Management: Religare Global Asset Management (RGAM) is a
multi-boutique asset management business focused on alternatives. Landmark
Partners, Quadria Capital, Northgate Capital, Investment Professionals Limited, Religare
Health Trust, IBOF Investment Management, etc. are the affiliates of RGAM. With a
presence across US, Europe and Asia and an aggregate AUM of USD $20 billion [10] it has
emerged as the largest alternative asset management platform based out of India.

India Asset Management: Religare Invesco Asset Management
Company Private Limited (RIAMCPL), the domestic asset management arm of
Religare, is India’s 13th largest mutual fund house by AUM. With nearly 12 12,250,000
folios, it has a presence in 658 business locations across 155 cities.


Health Insurance: Religare Health Insurance Company Limited (RHICL) is a
specialist health insurer engaged in the distribution & servicing of health insurance
products. The shareholders of Religare Health Insurance are three strong entities –
Religare Enterprises Limited, Union Bank of India & Corporation Bank. The
company, headquartered at Delhi, commenced operations in July 2012, and within a
short span of time is already operating out of 54 offices, servicing more than 2,600,000
lives across 300+ locations including over 1100 corporates.


Life Insurance: AEGON Religare Life Insurance Company Limited (ARLI) is
a three-way joint venture between AEGON of the Netherlands (26%), Religare (44%)
and Bennett, Coleman & Company Limited (30%).

6. Bajaj Capital

Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on
Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children’s
Future Planning and other services. They are also SEBI-approved Category I Merchant
Today, Bajaj Capital is a one of the largest financial planning and investment advisory
companies in India, with a strong presence all over the country. They offer a comprehensive
range of services including financial planning and investment advice, and the entire gamut of
financial instruments and investment products of almost all major companies, both public and
private. In addition, they also provide investment assistance by helping clients complete all
the formalities, and help them keep regular track of their investments.

(II) Service Offerings
a) Mutual Funds
b) Taxation Advise
c) Bonds
d) Post Office Schemes
e) Estate Planning

f) Insurance
g) Financial Planning
h) Retirement Planning
Bajaj Capital’s 360º Financial Planning
Financial Planning is becoming increasingly popular in developed countries all over the
world. Now, with a little help from Bajaj Capital, clients too can give themselves the 360°
Financial Planning edge! Now, Bajaj Capital brings you the same service ABSOLUTELY
Bajaj Capital's 360° Financial Planning Programme could make a difference to all those
who wish to lead a worry-free, financially secure life. 360° Financial Planning is based on
the premise that every individual has certain basic financial needs that are expressed at
various stages of life (getting married, buying assets like homes, vehicles, or providing for
your children's education and wedding).

Instead of investing in an ad-hoc manner, 360° Financial Planning helps you take a holistic,
all-round view. Briefly, 360° Financial Planning comprises:
• Investment Planning: To make your wealth grow
• Cash Flow Planning: To provide for assets and meet the periodic cash requirements
Tax Planning: To save on taxes and increase your income
• Insurance Planning: To protect yourself, your family and your assets
• Children's Future Planning: To give your children a financially secure future
• Retirement Planning: Because retirement is a time to relax, not to get worried


7. Allegro Capital Advisors Private Limited

(I) Introduction

Allegro Advisors is a leading Indian full service investment bank that builds value across a
spectrum of clients, including the government, corporations, financial institutions, high networth individuals and professionals.

• Comprehensive service offering
• Investment Banking, Capital Markets, Asset Management & Private Banking
• Ensuring client's financial well-being


(II) Team of experienced advisors
Allegro Capital is a comprehensive Investment Bank that comes with years of expertise in
offering financial solutions and advisory services across the corporate world.
Allegro Capital Advisors has offices located in key metros across India. Our teams of
financial advisors and specialists have the local knowledge, contacts and awareness to create
optimum solutions that meet our client's financial ambitions. Giving our clients the global
local advantage, we have broadened our reach to 25 major cities and towns of India and
established strategic alliances with several renowned advisory houses and institutions,

(III) Service Offerings

The investment approach begins by working closely with the clients to identify their longterm financial goals, risk tolerance and the nature of their existing asset base. Additionally,
allegro review each client’s portfolio on an ongoing basis and evaluate possible adjustments
in response to economic changes, market trends or client needs.
Allegro ensures this highly personalized model of service by maintaining amongst the lowest
client to advisor ratios in industry. Allegro offers one of the widest range of financial services
that covers the spectrum of every need a client may have in managing his or her wealth. Our
services are categorized to serve diverse financial needs and the diverse investment strategies
that are required to grow a client’s wealth.

Allegro Growth™: Designed for the young executive, it comprises a set of products and
services that allow start up incomes maximize potential to grow in the long term. A special
offering has been designed for working couples


Allegro Equity™: A pure equity offering with a unique strategy that keeps in perspective
capital conservation through medium and long strategies such as dividend yields, IPOs, buybacks, value picks, sect oral picks, growth fund opportunities etc. PMS is offered selectively

Allegro Wealth™: A top of the line service offering that comprises the entire basket of
services that include specialized equity advisory including personal advise from our highly
reputed advisory panel across taxation, debt, equity and money markets, automatic portfolio
and rebalancing management, insurance and loan advisory, access to a 8 hr 6 days a week
helpline. Portfolio Management Services is offered selectively.

8. IDBI Bank (Other Public Sector-Indian Banks) :

Industrial Development Bank of India (IDBI) is the tenth largest bank in the
world in terms of development. The National Stock Exchange (NSE), The
National Securities Depository Services Ltd. (NSDL), Stock Holding
Corporation of India (SHCIL) are some of the institutions which has been
built by IDBI. IDBI is a strategic investor in a plethora of institutions which
have revolutionized the Indian Financial Markets.
IDBI Bank, promoted by IDBI Group started in November 1995 with a
branch at Indore with an equity capital base of Rs. 1000 million.


Fig. 2.7

(I)Main functions of IDBI
IDBI is vested with the responsibility of co-ordinating the working of
institutions engaged in financing, promoting and developing industries. It
has evolved an appropriate mechanism for this purpose. IDBI also
undertakes/supports wide-ranging promotional activities including
entrepreneurship development programmes for new entrepreneurs,
provision of consultancy services for small and medium enterprises, up
gradation of technology and programmes for economic upliftment of the



(II)IDBI's role as a catalyst

IDBI's role as a catalyst to industrial development encompasses a wide
spectrum of activities. IDBI can finance all types of industrial concerns
covered under the provisions of the IDBI Act. With over three decades of
service to the Indian industry, IDBI has grown substantially in terms of size
of operations and portfolio.

(III)Developmental Activities of IDBI
Promotional activities
In fulfillment of its developmental role, the Bank continues to perform a
wide range of promotional activities relating to developmental
programmes for new entrepreneurs, consultancy services for small and
medium enterprises and programmes designed for accredited voluntary
agencies for the economic upliftment of the underprivileged. These
include entrepreneurship development, self-employment and wage
employment in the industrial sector for the weaker sections of society
through voluntary agencies, support to Science and Technology
Entrepreneurs' Parks, Energy Conservation, Common Quality Testing
Centers for small industries.

Technical Consultancy Organizations
With a view to making available at a reasonable cost, consultancy and
advisory services to entrepreneurs, particularly to new and small
entrepreneurs, IDBI, in collaboration with other All-India Financial
Institutions, has set up a network of Technical Consultancy Organizations
(TCOs) covering the entire country. TCOs offer diversified services to small

and medium enterprises in the selection, formulation and appraisal of
projects, their implementation and review.

Entrepreneurship Development Institute
Realizing that entrepreneurship development is the key to industrial
development; IDBI played a prime role in setting up of the
Entrepreneurship Development Institute of India for fostering
entrepreneurship in the country. It has also established similar institutes in
Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends
financial support to various organizations in conducting studies or surveys
of relevance to industrial development.




All India Financial Institutions (AIFI) is a group composed of Development Finance
Institutions (DFI) and Investment Institutions that play a pivotal role in the financial markets.
Also known as "financial instruments", the financial institutions assist in the proper allocation
of resources, sourcing from businesses that have a surplus and distributing to others who have
deficits - this also assists with ensuring the continued circulation of money in the economy.
Possibly of greatest significance, the financial institutions act as an intermediary between
borrowers and final lenders, providing safety and liquidity. This process subsequently ensures
earnings on the investments and savings involved.
In Post-Independence India, people were encouraged to increase savings; a tactic intended to
provide funds for investment by the Indian government. However, there was a huge gap
between the supply of savings and demand for the investment opportunities in the country.

A well-qualified financial planner like a Certified Financial Planner (CFP) would work with a
person to prepare his plan. A CFP is finance savvy and combines the objectivity and trust,
developed through years of experience and expertise in planning one’s personal finance.



CFPCM certification is an international program in the field of Financial Planning, wealth
management and financial advisory services. Financial Planning is one of the fastest growing
careers across the world. Being one of the fastest growing economies, India currently has
around 5 crores families with investible surplus. Assuming one financial planner is handling
approx. 1,000 clients we need at least 50,000 Certified Financial Planners in India
immediately. This is set to grow at a faster rate. CFPCM certification was rated as Gold
Standard in Financial Planning by the Wall Street Journal in the year 2006.

CFPCM Certification is a mark of excellence granted to individuals who meet the stringent
standards of education, examination, experience and ethics. It is the most prestigious and
internationally accepted Financial Planning certification recognized and respected by the
global financial community. CFPCM Certification is the highest level of certification in the
field of Financial Planning worldwide with over1, 18,245 CFPCM certificates, who are
widely respected by consumers, professionals and industry.
Certification is for financial services professionals, customer relationship
Officers, insurance agents, stock brokers, those looking to expand their careers
In the financial services business, and graduates who want to be professionally
And globally recognized.


Financial Planning is one of the fastest-growing professions across the world
And Financial Planners are the most sought after professionals by a fast growing
Working population that earns well, and needs expert handling of their finances.
The opportunities are aplenty with Banks, Financial Planning outfits, Wealth
Managers, life Insurers, Accounting Firms, Stock brokers seeking professionals
with such expertise. Financial Planners offer expert opinions on issues related
to retirement planning, estate planning, tax planning, investment planning,
Insurance planning, financial management of small businesses and trusts, stock
Brokering, debt and risk analysis. needless to say a career as a Financial Planner
Can prove both challenging and rewarding. Recognizing Financial Planning’s occupational
benefits, there are many surveys that indicate a career in Financial Planning as the top career
choice worldwide. Most Financial Planners enjoy relatively low stress, have a high earning
potential and enjoy a high degree of workplace autonomy. The personal satisfaction element
cannot be underestimated. Very often, independent Financial Planners find that people are
just overwhelmed and need direction, so it’s their job to listen, understand their situation and
offer some options that will help them. It gives them satisfaction to help people do better, not


just with their finances but with blending the financial side with the other sides of clients’
lives so that they can achieve their goals.

• Enhanced career and employment opportunities in Financial Services Sector.
• Personal satisfaction in knowing you have earned the profession’s highest
Standard and met the global benchmark.
• Satisfied clients who appreciate the comprehensive approach to Financial
Planning and extend long term relationships and referrals.
• Your expertise and credibility as a qualified professional is instantly communicated.
• More revenue streams by increasing your product and service offering to your
• Enhanced Social Status by joining the league of professionals.
• Recognition in over 23 countries across the world.
• Opportunities to showcase your knowledge on Financial Planning & Advising
through various media vehicles.

Financial Planners may earn in any of the following three ways:
1) A Planner can be paid by a salary from the company for which the Planner
works; by fees based on an hourly rate, a flat rate, or on a percentage of the
assets and/or income.
2) By commissions paid by a third party from the products sold to clients to carry out the
Financial Planning recommendations.
3) By a combination of fees and commissions whereby fees are charged for the
amount of work done to develop Financial Planning recommendations and
commissions are received from any product sold. As the profession is in its nascent stage
various models are being tried and tested by the Financial Planners in India. But surely over a
period of time the clear trend is
towards a fee-only model like other professions, i.e. medicine, law, accountancy, etc.


Financial Planning Standards Board India (FPSB India) offers the Certified
FINANCIAL PLANNERCM Certification or CFPCM certification Program. FPSB India
is the sole licensing body that awards CFPCM certification in India through an agreement
with us based FPSB, ltd. The mission of India is to help benefit the public by granting the
CFPCM certification and upholding it as the recognized standard of excellence for Personal
Financial Planning. CFPCM certification is awarded by affiliate organizations of FPSB, ltd.
in their respective countries of operation.
Kindly note FPSB India’s authorized Education Providers are only training
And administrative entities authorized by FPSB India and not the CFPCM
certification awarding bodies. FPSB India reserves the rights of awarding
and relinquishing CFPCM.

Certification as per the certification policies.
Financial Planning Standards Board India (FPSB India) is a Public – Private enterprise
and a Professional Standards Setting body that proactively guides the development and
promotion of standards for Financial Planning professionals to benefit the public in the
country. FPSB India closely works with all the stakeholders’ viz. the Government, the
regulators, the Industries/Associations, the Corporations, the Media and the General Public to
achieve its objectives. It is a Professional Certification organization, part of leading Global
Confederation established by prominent financial service corporations with an objective to
professionalize the concept of Financial Planning in India. FPSB India is supported by 50
Financial Services organizations in the country as its Charter Members.

Yes, currently CFP certification is offered and recognized in 23 countries including
Australia, Austria, Brazil, Canada, China, Chinese Taipei, France, Germany, Hong
Kong, Indonesia, Ireland, Japan, Malaysia, new Zealand, nether land, republic of
Korea, Singapore, South Africa, Switzerland, Thailand, united Kingdom and united
States of America. FPSB, ltd. enters into licensing and affiliation agreements with nonprofit organizations (or their equivalent) around the world that allows the organizations to
establish and operate the CFP certification program in a country or region. FPSB Affiliates
who meet and maintain FPSB’s affiliation criteria of high standards are authorized to
administer the CFP certification program on behalf of FPSB in a country or region. FPSB
India is one of the Affiliates of FPSB; ltd.CFP certification undertaken in any of the affiliate
country is recognized globally and governed by cross border policy usage.
Country/Region No. of CFP Certificates


To benefit the public, FPSB regulates how CFP professionals use FPSB’s CFP or Certified
Financial Planner marks outside the borders of the country or region in which they first
received CFP certification. Incidental Use FPSB permits incidental use of the CFP marks by
CFP professionals outside the country or region of their initial certification. Incidental use
consists of displays of the CFP marks in/on:
• Articles published in a new country or region.
• Business cards or brochures distributed while travelling abroad.
• Websites targeted toward stakeholders in the country or region of initial
Certification those are viewable outside the area’s borders.


Cross-Border Use:
If an individual wishes to hold himself or herself out as a CFP professional or use the CFP
marks outside his or her country or region of initial certification for anything other than
incidental use, the CFP professional can pursue one of two options:


Cross-Border Certification: An individual using the CFP marks in more than

one country or region can become cross-border certified by obtaining CFP certification from
the FPSB Affiliate in the new country or region and abiding by the certification renewal
requirements of both FPSB Affiliates. Once the CFP professional has completed the process,
he or she can identify himself or herself as a CFP professional in those territories as well.


Restricted Use of the CFP Marks: If an individual does not want to/cannot

become certified in a new territory, he or she can always communicate the fact that he or she
has obtained CFP certification in the country or region of initial certification.


(A) Title of the Study
Comparative analysis of various financial institutions in the market.

(B) Type of Research
This project is more of an exploratory research with more of qualitative analysis than
quantitative. The data collection method for this project begins with finding a sample of the
population. The population for this project was the various places in Jaipur. (Johari Bazar,
M I Road, Tonka Road, Malviya Nagar and Jhotwara Industrial Area) and at the
HDFCslic, scheme, Jaipur.

The research methodology adopted was both primary and secondary. Primary data was
collected to study the investment psyche of a person, their practice on saving, investment
options available and the need of financial institutions to manage individual’s wealth.
Questionnaire was designed to ascertain the investor’s behaviour as well as to depict the
future prospects and growth momentum of the wealth management industry.


(C) Sample Size and method of selecting sample
Data Collection Methods & Instruments
The instrument for data collection was a structured questionnaire targeted towards people
who do investments. This questionnaire was designed to know the investment psyche of a
person while investing in the financial products.
The mode of communication was informal & friendly conversation, which does not limit
discussion within a well-defined boundary.

Data Collection Sources
I) Primary Research
Research was done to get a detail overview of the wealth management industry and study the
need for financial planner in the current scenario. Questionnaire was designed to study the
investment psyche of a person, their practice on saving, different investment options available
and the need of financial institutions to manage individual’s wealth. This project is mainly
based on first hand observation in the market, the way financial planning functions, scope of
financial planning and the need of a certified financial planner.

ii) Questionnaire Design
A structured questionnaire was designed covering both open and close ended questions, to
study the perception of people regarding investment avenues and the concept of financial


iii) Population considered for research
Sample Details
100 people belonging to different fields, who do investment, were asked to fill the
questionnaire, on the basis of which an attempt is made to study the prospects of Financial
Planning in the market. The sample unit consists of those people who are trading in
secondary markets, mutual funds, initial public offer, insurance, debt instruments as they can
give the accurate information about financial planning. A sampling frame has been developed
so that everyone in the target population has an equal chance of being sampled.

Personal Information:
• Sex Ratio: From the total 100 respondents 15 were females and 85 were males.







Secondary Research
Various sources of information were collected for attaining clarity on the prospects of wealth
management industry and the various financial institutions in the market. The source also
includes basic investment objectives and the various types of investment avenues open to an
However the following sources were considered for information gathering:
• Companies websites
• Articles and reports available on the web
• News papers like Economics Times and Investment Insurance Magazines



Given below are the graphical representations of the responses received on questions asked
through the questionnaire. The interpretation derived and the model adopted will be explained
in detail in the later part of the report. On asking the following questions, the replies were
received accordingly:

8.1. What is your objective behind investments?
Investing is a conscious decision to set money aside for a long enough periods in an avenue
that suits your risk profile. The questionnaire asked the respondents to reveal their objective
behind investments, majority of the respondents disclosed growth of capital as their prime
objective while safety of capital stands secondary. This response reflects the investor
willingness to take calculated risks for growth of their capital
Objective Behind Investment

No of Respondents (in %)

Growth of Capital


Tax Minimization


Safety of Capital






Beating Inflation





Fig 5.1

The research has highlighted that growth of capital is the most important factor which they
consider wile investing as evident by the response wherein 46.3% of the respondents voted
for the same. However, it can also be seen that 15.7% of the investors prefer safety of their
capital as their secondary objective which depicts that investors give greater emphasis to the
returns and willing to adjust with safety of capital. Liquidity is the least important factor as
only 2.5% of the respondents voted for it which signifies that the financial planner should
designed the portfolio giving more importance to growth and safety of capital as per
individual financial goals while liquidity should have the minimum focus.


In our sample, inflation has only been given 3.3% of the total sample which reflects that
people are still not giving much consideration to inflation even due to a sharp rise in the
inflation rate.

8.2. Since when are you investing in financial instruments?
The respondents were asked as from when they have started investing in financial instrument
so as to ascertain the average period of experience of an investor in the market.

The responses were then graphically which indicates that majority of the investors i.e. 48.2%
of the respondents have been investing for more than 12 months and signifies that the
responses revealed are from experienced and qualified investors which adds to the credibility
and reliability of the research.


No of Respondents (in %)

Less than 3 months


3 to 6 month


6 to 8 months


8 to 12 months


More than 12 months



Fig 5.2
8.3. Do you plan your investments?
To evaluate the level of importance the investor gives on detailed financial planning to arise
in their investment decision, the respondents were asked to reveal whether their investments
are result of a careful planning or it’s a mere word of mouth. As many individuals follow
word of mouth leaving behind the fact that every individual has different financial goals, they
tend up in making wrong decisions for their investments.
Most are aware that planning is critical, yet don’t have the time or the expertise to develop a
plan and make the needed financial decisions.
On analyzing the response 84% of the persons plan their investments while only 16% take
investment decisions on ad hoc basis.
Opinion of Respondents

No of Respondents (in %)






Fig 5.3

8.4. What is your practice on saving money?
To determine the saving habits of the investors, the questionnaire enquired the respondents as
about their practice of savings. The greater the inclination of saving the more will be the
funds available for investment.
Around 47.5% of the respondents try to save from their income, while only 29.7% of the
respondents always make an effort to save some part of their income.

Opinion of Respondents

No of Respondents (in %)

Don’t believe in Savings


High Expenses


Try to Save


Always Save Some





Fig 5.4
Only 2% of the respondents don’t believe in savings, which substantiate high importance of
savings in Indian households. However, it was also observed that majority of the women
respondents had high inclination for savings and try to save the maximum out of their
available income.

8.5. How much thought have you given to saving for retirement?
Anyone who will retire needs to plan for it. There is more than one reason to save for
retirement. The all important reason is the rising cost of living. It’s called inflation, which
simply put, means that purchasing power of money falls over time, so you buy less for the
same amount of money or you have to pay more for the same quantity of goods.
On analyzing the level of importance the respondents give on saving for retirement, majority
i.e. 47% of the respondents give some importance while only 18% give a lot of importance to
saving for retirement. This depicts non serious attitude of Indians while planning for their

Opinion of Respondents

No of Respondents (in %)



A Lot


Very Little




Response on Savings for Retirement


A Lot

Very Little


Fig 5.5

8.6. When do you consider one should start planning for retirement?
If you start planning for retirement early on, you can bridge the gap between what you have
in your hand today and what you would like to have when you retire. What to keep in mind
while saving for retirement depends a lot on our age and how much money you are willing to
set aside every month. If you begin saving for retirement early on in your life, you can set
aside smaller amounts.


Planning for retirement in early age of employment is depicted on analyzing the responses as
35.8% start planning below the age of 30 years, while 42.1% of the respondents feel, the ideal
age to be above 40 years.

Opinion of Respondents

No of Respondents (in %)

Below 30


31 – 40


41 – 50


Above 50


Response on age preference to plan for retirement

Below 30

31- 40

41 - 50

Abov e 50

Fig 5.6

8.7. What do you feel is considered to be the ‘fundamentally safe’ form of investment?

On enquiring from the respondent about what are the fundamental secure forms of
investments, 35.4% of the respondents feel that investing in property is the safest form of
investment followed by Insurance. The least secured form of investment as revealed by
respondents is investment in equity as secondary market is subject to huge volatility &
It can be seen from the response that people are more willing to put their money in property
or real estate in spite of the economy experiencing a major climb in the property prices.
About 14.4% of the respondents feel that Bank deposits is also the safe form of investments
as it gives assured returns on the sum invested.

Opinion of Respondents

No of Respondents (in %)

Bank Deposit




Postal Deposit








Mutual Fund





Fig 5.7

8.8. How do you take financial decisions?
An individual’s decision has a vital role to play in achieving investment objectives and
thereby making investments in a systematic manner. Decisions can make or break investment
avenues as wrong decisions would merely lead to wrong investments resulting in major loss.
On enquiring from the respondents about how they take their financial decisions, majority of
the respondents take their financial decisions independently which depicts they are not taking
any advisory services from financial experts. There are majority of respondents who feel that
they can handle their portfolio on their own and hence make their own decisions regarding

Opinion of Respondents

No of Respondents (in %)












Financial Advisor




Fig 5.8


It can be observed that most of the financial advisors are not charging any fees for their
advisory services i.e. they are giving it free of cost because the banks (Citibank, UTI Bank,
HSBC) earn commission if the customer purchases mutual funds, insurance, from it. The
broking company earns brokerage if the client purchases RBI bonds etc or if he does any
equity trading. The bank only charges marginal fees on the custodial services.

However, HDFC Bank - instead of asking customers to bring in a specific amount of funds charges customers on various types of services it offers. The management of wealth depends
on the customer's risk appetite, his investment objectives. Once these are understood, the
bank sends a written investment proposal on what the bank thinks the portfolio should be.

Taxation advisory is given by very few players like Bajaj Capital, UTI Bank. Various banks
have a tie-up model with different insurance and mutual fund companies like Citibank has
with Birla so Citibank will only sell Birla insurance to their clients irrespective of the fact
whether the product meets the client’s financial goals. Allegro is one player which takes care
of loan restructuring. Commodity trading is only being handled by Religare as a separate
product as SEBI have not yet allowed commodity trading to be a part of wealth advisory

However banks cannot offer portfolio management services to customers. This means that a
customer cannot give money to a private banker and ask the RM to invest on his behalf in
different financial products. This service can be offered only by entities other than a bank
such as Religare, Bajaj Capital, etc. A banker therefore will have to call every time and get a
written confirmation from the client before any deal is done.


On studying the peculiarities of the wealth management industry and analyzing the responses
of the investors on their perception and expectation from a financial advisor, the following
points are recommended which a general financial advisor should consider while approaching
the people.

While this is becoming a universally undeniable desire, the fact is that some people don’t
have the knowledge and inclination to understand the financial markets and others don’t have
the time to follow them. This then leads to financial decisions being taken by individuals
based on either relationship hearsay or the sales call of a vendor.

a) Unbiased Advisory
Investment Advisory Services are in this business of managing the assets of individuals and
corporations. However, the distinct model of services should enables the advisors to offer
unbiased advise on the entire spectrum of personal finance, keeping the clients interest
foremost while doing so. The investment strategies developed across perpetuity should
outline a detailed financial plan with frequent reviews of investment decisions made to ensure
that portfolios are in line with what was planned.


b) Certified Financial Planner
Financial planning is a new animal in the Indian market. The big thing to happen is the
coming to India of the Certified Financial Planner (CFP) mark, owned by the Board of
Standards in the US and licensed out to non-profit associations in 18 countries, including the
US, Canada, Australia and the UK. Leading financial players–asset management companies,
banks, mutual funds and insurance companies, forms these associations.

Another player in this space is the NSE’s Certification of Financial Markets (NCFM), an arm
of the National Stock Exchange that tests and certifies insurance and mutual fund agents.
A third institution, the Association of Mutual Funds (AMFI), is encouraging its agents to
morph from distributors to advisors. Apart from the institutions, some individuals and small
companies have set up practice anticipating that the market will move from an ad-hoc
approach to a planned one.

Fig 7.1


Fig 7.2

c) Financial Planning Should Be Encouraged
It is a process in which an individual sets long-term financial goals through investments, tax
planning, asset allocation, risk management, retirement planning and estate planning. Most of
us approach our financial lives like the disorganized traveller who gets to his destination
eventually and perhaps even enjoys the rough ride. We think we have a clear roadmap in
mind, but our financial lives are marked by ad-hoc decisions and capitulation to the
temptations of the flavours of the financial season.


This part of research paper determines the prospects of financial advisors in the market with
relevance to the information derived from analysis of the responses. Feasibility of financial
institutions can be studied by both financial feasibility and marketing feasibility.

A) Financial Feasibility
Financial feasibility will study the need of financial advisors due to changes in the inflation
rate, loans, insurance charges, etc which investors usually ignored so by availing the financial
advisory services, one can expect unbiased advise on the entire spectrum of personal finance
and thereby adding value to the investor’s current portfolio and potential savings.
The statistics regarding the investments are discussed below so as to show the trend of
various factors in the Indian economy.

B) Market Feasibility
Marketing feasibility involves determining the prospects of financial advisors in the growing
economy like India. The study includes assessing the need of financial institutions to achieve
all the individual’s financial goals and keeping these goals in mind how do they recommend
certain investment options in the market in order to provide value additions to individual’s
current portfolio & savings potential.

For assessing the satisfaction level of investors who are availing financial advisory services,
the performance of the current players in the markets will be studied and their strength and
weakness will be analyzed, if the investor’s satisfaction level from the current advisor is less,
then greater will be the feasibility of prospects of financial advisors in the Indian market.


The following companies and association’s web sites were referred while collecting
information used in the research.

1. Internet Source

My Sources of data is Secondary form I have search all details from Internet.
Search Engine :Google
Search: Importance of Financial Institutions
Link: What is the Importance of Financial Institutions- WiseGEEK
www.wisegeek.com/what-is the importance of financial-institution.html
Link:Financial Institutions-this Matter.com
Link:Financial Institutions in India
Link: The Historical Background:Financial Institutions as- IDEAS
Link:Financial institution - Wikipedia, the free encyclopedia
Link: All India Financial Institutions - INDIAN BANKS' ASSOCIATION

Link :Allegro Advisors Pvt Ltd
Link: IDBI Capital
Link: Bajaj Capital: Wealth Management & Financial Services ...
Balaji Capital Services Private Limited information
Religare - Wikipedia, the free encyclopaedia

Religare Housing Development Finance Corporation...
HSBC India: Credit cards, home loans, business banking...
HSBC - Wikipedia, the free encyclopaedia
Unit Trust of India - Wikipedia, the free encyclopedia
Citibank India - Credit Card | Loan | Investment | Insurance...

Citibank - Wikipedia, the free encyclopedia

Yes Bank


Yes Bank - Wikipedia, the free encyclopedia

• http://www.yesbank.in
• http://www.citibank.co.in/
• http://www.utibank.com/
• http://www.hsbc.co.in
• http://www.religarewealthcare.com
• http://www.hdfcbank.com
• http://www.bajajcapital.com
• http://www.online.citibank.co.in