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FINANCIAL ADVISORY

. To study how to dessiminate the valid information to the customer through system To study the benefits of the system to the company and the customer.OBJECTIVES:     To study client profiling. Tp give suggestions for dessimination of valid information to the customer.

To simplify this complexity ANANDRATHI is planning to develop a system through which valid information will be dessiminated to the customer according to his interest through sms/mail/calls as per the client‟s requirement. insurance. and insurance products to meet the needs of their clients. critical illness insurance etc. lending. bonds. options. Ideally. is a professional who renders financial services to individuals. securities trading and securities issuance. This can involve investment advice. real estate investment trusts (REITs).. . This is not an exhaustive list.THE FINANCIAL SERVICE INDUSTRY The financial services industry includes firms that are engaged in activities such as investing.the customer gets irritated and the information sent by the company becomes useless. If they receive unwanted information in which they are not interested. futures. mutual funds. notes.e different investors or traders are interested in different financial products.The requirement for the system also arises as the number of clients is large and to reach out the masses. To solve this problem there are many companies which provide advisory services. the financial adviser helps the client maintain the desired balance of investment income. and/or advice on life insurance and other insurances such as income protection insurance.There are plenty of information required and plenty of information available as well. and/or advice on mortgages. which may include pension planning.therefore it becomes a problem for an individual to decide where to invest and how much to invest. Financial advisers use stock. capital gains. and acceptable level of risk by using proper asset allocation.the correct information has to be given to the correct individual i.Financial advisor. but these is companies can be characterized as being in one or more of the following line of business:  Banking  Insurance  Securities Brokerage  Investment Banking  Securities Trading  Investment management (or money management) Financial world is complex. businesses and governments.

Clients deal with a relationship manager who leverages and brings together the product specialists from across the firm to create an optimum solution to the client needs. IPOs and insurance products. today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. merger and acquisitions. AnandRathi. Private Clients. commodities. AR CORE STRENGTHS Breadth of Services: In line with its client-centric philosophy.ABOUT ANAND RATHI AnandRathi (AR) is a leading full service securities firm providing the entire gamut of financial services. real estate. ethics and professionalism. founded in 1994 by Mr. MANAGEMENT TEAM AR brings together a highly professional core management team that comprises of individuals with extensive business as well as industry experience. distribution of mutual funds. The entire firm activities are divided across distinct client groups: Individuals. investment banking. The aim is however common . the firm offers to its clients the entire spectrum of financial services ranging from brokerage services in equities and commodities. mutual funds and insurance. In year 2007 Citigroup Venture Capital International joined the group as a financial partner. corporate advisory.to go far deeper than others.all of which are supported by powerful research teams. corporate finance and corporate advisory. Corporates and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. AR provides a breadth of financial and advisory services including wealth management. Research teams across the firm continuously track various markets and products. In-Depth Research: Our research expertise is at the core of the value proposition that we offer to our clients. to deliver incisive insights and ideas and be accountable for results. . The firm. investment banking. with a clear focus on providing long term value addition to clients. structured products . brokerage & distribution of equities. The firm's philosophy is entirely client centric. while maintaining the highest standards of excellence.

clearing and custody of securities. Clients can trade through us online on BSE and NSE for both equities and derivatives. Commodities: Commodities broking . sector trends and investment strategy has established us a competent and reliable research unit across the country. Our success lies in our philosophy of providing consistently superior. They are supported by dedicated sales & trading teams in our trading desks across the country. independent and unbiased advice to our clients backed by in-depth research. both within the business as well as on the personal front. Insurance Broking: As an insurance broker. we provide to our clients comprehensive risk management techniques. We firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile. Mutual Funds: AR is one of India's top mutual fund distribution houses. of which insurance is an integral part. Research and investment ideas can be accessed by clients either through their designated dealers.  BROKERAGE & DISTRIBUTION SERVICES Equity & Derivatives Brokerage: AnandRathi provides end-to-end equity solutions to institutional and individual investors.ANAND RATHI SERVICES 1. We offer you daily updated internet access to your holding statement and transaction summary. Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL.a whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior returns for investors. registration of shares and dematerialization. The firm deals with both life insurance and general insurance products across all insurance companies. Consistent delivery of high quality advice on individual stocks. email. web or SMS.     Our services: . Risk management includes identification. Depository Services: AR Depository Services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. Our depository services include settlement. measurement and assessment of the risk and handling of the risk.

Online fillng of forms is also available. Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. a wide network of branches across India. .        Risk Management Due diligence and research on policies available Recommendation on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement IPO: We are a leading primary market distributor across the country. Our strong performance in IPOs has been a result of our vast experience in the Primary Market. strong distribution capabilities and a dedicated research team. We have been consistently ranked among the top 10 distributors of IPOs on all major offerings.

to invest in equity-linked instruments in the Indian real estate and infrastructure sectors. A highly experienced and reputed team of equity analysts supports the sales team. coupled with excellent execution capabilities. AR research processes incorporate quantitative areas well as qualitative analyses. The aim is however common . There is an extensive focus on research on companies. sectors and macroeconomy.  . As part of the structural reforms to further boost India's economic growth. to deliver incisive insights and ideas and be accountable for results. Research teams across the firm continuously track various markets and products. corporates and institutions.to go far deeper than others. capital-protected to the most aggressive strategies in the equities and derivatives markets.  MANAGED INVESTMENT SERVICES  Portfolio Management Services (PMS): AR Portfolio Management Service is a discretionary investment service created to meet the demand for more targeted investment styles and opportunities.INSTITUTIONAL SERVICES  Institutional Equities: The Institutional sales and trading team provides cutting edge market information and investment advice to clients. Real Estate Opportunities Fund: AR Real Estate Opportunities Fund is a private equity fund for high net-worth individuals. Research: Our research expertise is at the core of the value proposition that we offer to our clients. the government has recognized the need for institutional finance in the real estate sector. The range of products varies from the highly defensive. It offers a range of specialized investment strategies designed to capture opportunities across the market spectrum.

 . Mutual Funds is a trust that pools the savings of number of investors who share a common financial goal. It is a convenient way for investors to channelise their savings into various categories of securities like equities. bonds. which are backed by proprietary global economic & investment research. currencies and equities markets to provide investment solutions that meet your complex needs .from simple money-market mutual funds to complex arbitrage strategies in the equities or commodities markets. We understand that your needs could range from finding short-term surplus management strategies to higher yielding and long term investments. FD etc.INSTITUTIONAL WEALTH MANAGEMENT  INTRODUCTION Corporate and Institutional treasuries need ever more sophisticated advice that is backed by serious and credible research.debentures. „cash market investments‟ such as stocks. money market instruments. typically. Derivatives are contracts whose value is "derived" from the price of something else. AR IWM provides its institutional clients integrated wealth management solutions across global markets. The IWM team brings together the highly-rated AR research across fixed income. money market instruments or commodities.   PRODUCTS Equity & Derivatives: Equity is stock or any other security representing an ownership interest.

BSE and few others. The meaning of the term commodity has changed through the years. It can be a stock broker. gold. but commodities that are traded in commodity markets are usually bulk goods and food products. even the depository service providers have a clearing house where at the end of the day all the buying n selling settlements takes place between buyers n sellers through stock brokers. The depository is linked with Exchange boards like NSE. silver. the transaction goes through a specific medium. oil etc. but the modern definition can include investment vehicles. Depository is a company which holds the shares you purchase.” IPOs: “Initial Public Offerings". to pay the other party called insured a fixed amount of money on the happening of a certain event.   . they also enforce any regulations and rules in place to govern the trading process involving commodities Insurance: Insurance is a contract between two parties where by one party called insurer undertakes in exchange for a fixed sum called premiums.Depository Services When u buy shares or sell the shares. Like banks. which means exactly that. because the word traditionally meant a good that was subject to barter or sale. NSDL (National Securities Depository Ltd) & CDSL ( Central Depository Services Ltd. just like stocks are only traded on stock markets. and these exchanges do much more than just facilitate the trade in commodities. Right now there are 2 depository companies.) And a depository participant is an institution which acts as an agent between an investor and Depository service provider.  Commodities: A commodity can be any tangible good. including natural gas. Commodities are only traded on commodity exchanges. The Depository Services provider settles the trade or transactions you make in stock markets. like commodity futures. a bank or any NBFC. when a stock goes public it is the initial first offering of that stock to the public.

Highly qualified and thoroughly professional. whatever be your need. to profit improvement and business turnaround strategies. organizational and operational restructuring. Review & Control Mechanism       . SERVICES: Performance Improvement and Cost Reduction Business Strategy and Re-engineering Financial. experts and associates assist you in conceptualising problems and devising effective solutions. our specialists.CORPORATE ADVISORY SERVICES:  INTRODUCTION: AnandRathi Advisors assists companies in realizing tangible improvements in various facets of their businesses by providing a range of corporate advisory services that includes the entire gamut from financial. Business & Organizational restructuring Business Turn-around Strategies Management Systems: MIS.

Interest Cost Reduction. collateral etc. OTS. defining the alternative sources of funding. The team has also built an impressive track-record in debt restructuring based on its superior understanding of business needs and relationships with key lenders. Working Capital and Specific needs. mergers and acquisition opportunities and debt financing & restructuring advisory. Services: Investment Banking. CDR.  Financial Restructuring. tenure. Financial products and services in hedging of interest and currency risks     . in a comprehensive manner and finally negotiating with the prospective lenders / buyers.  Corporate Finance :  Raising Cost-effective debt resources in Rupee and Foreign Currency for Projects. a pan-India distribution presence and a high level of quality and integrity in executing client's transactions has enabled us to provide tangible value to our clients' businesses. fixed-floating. building in multiple variables such as currencies. Merchant Banking: A highly experienced equity capital markets team.INVESTMENT BANKING AND CORPORATE FINANCE  Investment Banking: AR Investment Banking provides comprehensive services to clients including raising money in the equity capital markets to identifying strategic alliances. Corporate Finance: The AR Corporate Finance team helps clients manage their debtfinancing needs by profiling business and cash-flow risks. Long-term Corporate Loans for Working Capital Margins.

Are you more comfortable with dividends and income. the focus of your preparation should shift to personal preferences: 1.PROFILING WHAT IS PROFILING?  RISK PROFILE : 1. . 2. or pay for college. Will you accept above-average risk to generate above-average returns?    Risk profiling combines two key areas : Estimating financial risk taking capacity of an individual. start a business. or with growth through capital appreciation? 4. Understanding the (psychological) risk tolerance level of an individual.  What questions should I ask myself as I prepare to develop my risk profile? Ask yourself when you plan to use your investment in a few years to buy a home. After you have decided how long your money will work. A measure of how risk averse an investor is. One may conduct a risk profile to determine what securitieswill likely fit an investor's investment goals. Are you willing to accept fluctuating values when investing for the long term? 3. It is also called a payoff profile. It is created by plotting thevalue of the underlying asset on the x-axis and the risk on the y-axis. a chart showing the profits and losses on a contract over time. In options. Is capital preservation more important to you than outpacing inflation? 2. 3. The degree to which various risks are important to a particular individual. or in the future for retirement.

Step 1: Fill in the questionnaire to learn about your indicated risk tolerance level The key to choosing an investment strategy is deciding the level of return you want relative to how comfortable you are with investment risk. This is one of a number of factors. It provides guidelines that may help a person or investor how to allocate the funds one has available for investing among the major assets classes i. moderate or high-risk investment strategies. along with your specific circumstances and needs that you should take into account when deciding on an investment strategy. 'Risk' simply means the chance that the actual investment return will be different from the expected investment returns. The profiler is not a substitute for financial planning. properties. fixed investments and cash.e. Simple steps to consider when choosing an investment strategy Each person has their own level of comfort with investment risk and should choose their strategy accordingly. shares.   .RISK PROFILER:  Risk profiler draws different factors together by helping you understand how u feel about risk. so consider seeking financial advice before you make a decision about your investment choice. This can be a positive or negative outcome. Step 2: View your score and check it against the risk profile descriptions This may help you to clarify whether you are currently likely to be more comfortable with low.

including a brief summary of the pertinent best practices A copy of the questions and your answers with best practice comments Suggested resources for helping you to improve your program‟s score in each section . The assessment consists of approximately 90 questions (yes. Lower-risk options will generally be expected to provide relatively consistent but lower returns over time. 4. 6. Once you have completed the questionnaire. no. 3. automated. 2. Pursuing high long-term returns may mean investing in more volatile options at a greater risk of negative returns in some years. 7. developed by a team of experienced RIM professionals. guided self-assessment tool that provides a diagnostic analysis of your RIM (record and if management) program‟s strengths and weaknesses. you will receive:    A summary report card with your scores for each section. 5.  The assessment is a user-friendly. and text response). spanning the following categories: Policies and procedures Program structure Classification plan effectiveness Records security and protection Active program effectiveness Inactive program effectiveness Monitoring and training  1.

Inflation erodes the value of your savings. minimum return -25% pa) 5. but would prefer a middle ground that limits losses (c) Inflation may erode my savings but I have no tolerance for loss 4. minimum return -10% pa) (d) High risk/return (maximum return 20% pa. you intend to roll your funds into a pension. What is the most aggressive investment you have ever made? (a) Shares. (a) I am comfortable with this trade-off to beat inflation (b) I am conscious of the risks inflation presents. Which of the following risk/return scenarios would you be most comfortable with? (a) Low risk/return (maximum return 6% pa. add another 10 years to this estimate.) (a) Parking (less than 1 year) (b) Short term (1-2 years) (c) Medium term (2-5 years) (d) Medium-long term (5-7 years) (e) Long term (greater than 7 years) 3. These are some basic questions: 1. In how many years do you plan to draw on your funds? (If. smaller companies fund (b) Managed funds (c) Investment property (d) Own home (e) Cash management trust . minimum return -5% pa) (c) Above average risk/return (maximum return 12% pa. technology fund. minimum return 3% pa) (b) Moderate risk/return (maximum return 8% pa. at that time. Growth investing can counter the eroding effect of inflation but will expose you to the risk of short-term losses. Will you need access to your funds during the term of the investment? (a) Yes (b) No 2.

6. . which of the following would suit you best? (a) A portfolio of potentially high-returning shares whose value could rise or fall dramatically.500? (A) Move the entire investment to cash (b) Move some of the investment to cash (c) Do nothing (d) Buy more of the investment 7. If you were investing in a share portfolio. What would you do if your investment dropped in value from an initial $50.000 to $42. (b) A blue chip portfolio that pays regular dividends (c) A mixture of (a) and (b) (d) I am not interested in shares These are the questionnaire by which risk profiler calculates risk depend on on answers provided.

firms can target marketing and cross sell efforts more effectively. Profiling not only helps the company to understand the customer but also helps the customer understand himself and his risk taking ability. increased profitability for the entire firm. Client Profiling provides in-depth analysis of historic client growth patterns and incorporates competitive intelligence to make business development recommendations for a law firm‟s clients.NEED FOR PROFILING CLIENT PROFILING It is a very essential aspect. BENEFITS Client Profiling takes the information available about a law firm‟s clients and distills it into a framework that informs a firm‟s growth strategy for various client segments. This improved targeting should lead to higher ROI on those efforts. Armed with this information. Analysis of clients within the segments reveals the need for unique relationship strategies for each segment. and more importantly. That framework incorporates client information such as: Lifetime work volume Types of work Industry Relationship strength Consistency of work volume Practice group cross-sell Share of wallet Billing rate          The starting point is segmentation of clients based on relative lifetime volume of work and the consistency with which the work was provided over the years. Profiling helps the company to understand  what are the financial goals of the individual  what is his financial status  what is his field of interest for investment  what is the individual‟s risk taking ability Only after profiling the company can advice the individual where he should invest and how much he should invest or trade.  Client profiling service is based on scrutinizing the best practices of leading-edge law firms around the world. .

Intra Day technical call for day traders. FUTURE ITT(2-1400). meant for short term trader.RAVIENCE ACTIVE-3767.risk management. MTT .NEW CLIENTS(2-3195).approved by RM and it is finally approved by the operational team.mails as per the client‟s preference. STT .RAVIENCE NEW CLIENTS -4835. Meant for short-term traders.UP & UTTARANCHAL. The information are sent to the clients via messages. to be closed on that day itself. Types of calls made to the clients are: IDT .Short term technical Trading call. Very high risk call meant for Hardcore traders.the clients are categorized in to different groups viz. NEW CLIENTS(2-4500).INACTIVE(2-2435). Meant for short-term investor cum trader.annual income and other important information in the client profile. . who believe in make or break game.calls.Medium term Technical Trading call for some what longer period [say 1-3 months] and may cover the cash stocks also.RAVIENCE NEW CLIENTS1 -4737.Client profile is filled bt BM. willing to carry the trade for 110 days till it achieves the target [or revised target] or stop loss.  If the client is investing in only equity then RM can suggest him to invest in commodities or anything which is beneficial for the client  The company comes to know about the value of the client  It helps approaching the client with better service  Dessimination According to the client profile. Benefits of client profiling  Services provided by the RM are on the base of networth.

whenever he wants.  The client should be categorized according to his risk taking capability i. The client can also be given online trading access.e multivalue marketing Income of the other family members should also be includedin the client profile. There should be a provision where the client can update any change in his income.  And then clients interested in equity should be again categorized according to short term or long term investment.Suggestions  There should be separate profile for clients investing in equity.and for clients investing in commodities. Client recommendations should be taken to get new contacts(clients) i.e Intraday = high risk Intraday + MF = medium risk Asset(real estate) = low risk Then according to the profile the RMs can try to suggest them to take little higher risk and make more investments.       There should be a system where all the updates regarding the market should be available. There should be a provision where the client can update any change in his interest area for investment. .client should have his own login id and password through which he can access the account and get all the information online.each category should also contain the information whether the information has to be given to the client through messages.mails or calls as per the client‟s preference  This will filter the unwanted information going to the client and through unwanted means.