A project report on investment strategies and portfolio management at standard chartered bank

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A PROJECT REPORT
On
“INVESTMENT STRATEGIES AND PORTFOLIO
MANAGEMENT”

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

SUBMITTED BY:

SUBMITTED TO:

AREA SALES MANAGER
STANDARD CHARTERED BANK

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ACKNOWLEDGEMENT

I would like to express my gratitude to almighty God without whose
blessing I wouldn’t have been able to take initial step in this research.

Words are insufficient to express my gratitude to …………….,my
industry guide for his guidance and support in preparing this project.

I would also like to thank my faculty guide whose support and
suggestions has helped me to complete this project successfully.

My sincere thanks to all those people who gave me their valuable
time and input by filling my questionnaires.

Finally I would like to thank my parents, family members and friends
for their support.

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DECLARATION

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

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PREFACE

India is a developing country and we all know that banking sector plays a
very important role. In development with the increasing use of banking and
finance in every field, new trends in their technology and modern use are
being evolved day to day to meet the requirements. In fact “BANKING” has
become the need of today.
The purpose of PROJECT REPORT is to expose the students in the market
and in the field of banking, finance and investments and to develop the
ability in the students to deal with all types of customers.

Preparing project report in the summer vacations and under going the
summer training is the indispensable part of the college period. It provides
the opportunity to review what we have gained in the training period and
also provides the way to convey the knowledge and ideas to others.

The present project provides the information on the “STANDARD
CHARTERED BANK”.

Learning is not possible in solitude and has to have the support and able
guidance of some people around us in various roles and capacities. The
satisfaction and euphoria that accompanies the successful completion of any
task would be incomplete without the mention of the people who made it
possible because success is the epitome of hard work, undeterred missionary
zeal, fast determination, and consideration.

Therefore, we consider it a pleasant duty to express our heartiest
appreciation, gratitude, and indebtedness to our project guide Mr. Nitish
Dipankar for his keen interest, sincere extortion, invaluable and pain taking
excellent guidance, continuous calm endurance, inspiration and
encouragement during each phase of the present project.

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EXECUTIVE SUMMARY

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

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INDEX

TITLE PAGE NO.

CHAPTER–1 “INTRODUCTION” 7

1.1History of Banking Industry 8
1.2 History of Standard Chartered Bank 15
1.3 Introduction of the topic 29

CHAPTER-2 “RESEARCH METHODOLOGY” 33

CHAPTER-3 “DATA COLLECTION” 35

3.1 Sources of data collection 36
3.2 Products of Standard Chartered
-Savings Account 36
- ULIP 40
-Mutual Funds 47

CHAPTER- 4 “ANALYSIS AND INTERPRETATION” 50

CHAPTER- 5 “CONCLUSION” 76

CHAPTER- 5 “APPENDIX” 78

REFERENCES 80

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CHAPTER 1
“INTRODUCTION”

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1.1 Overview of the Banking System

Until the 1950s, banking in India was carried on by a large number of
banks, many of them quite small. India is still primarily an agricultural
country, with an economic and social structure based largely on the
village. The integration of banking has been impeded by poor
communications, by illiteracy, and by the barriers of language and
caste.

Modern banking in India is said to be developed during the British
era. In the first half of the 19th century, the British East India
Company established three banks – the Bank of Bengal in 1809, the
Bank of Bombay in 1840 and the Bank of Madras in 1843. But in the
course of time these three banks were amalgamated to a new bank
called Imperial Bank and later it was taken over by the State Bank of
India in 1955. Allahabad Bank was the first fully Indian owned bank.
The Reserve Bank of India was established in 1935 followed by other
banks like Punjab National Bank, Bank of India, Canara Bank and
Indian Bank.

In 1969, 14 major banks were nationalized and in 1980, 6 major
private sector banks were taken over by the government. Today,
commercial banking system in India is divided into following
categories.

Central Bank

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

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for the functioning of all banks operating within the country.

Public Sector Banks

a. State Bank of India and its associate banks called the State
Bank Group
b. 19 nationalized banks
c. Regional rural banks mainly sponsored by public sector banks

Private Sector Banks

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

Co-operative Sector

The co-operative sector is very much useful for rural people. The co-
operative banking sector is divided into the following categories.

a. State co-operative Banks
b. Central co-operative banks
c. Primary Agriculture Credit Societies

Development Banks/Financial Institutions

• IFCI

• IDBI

• ICICI

• IIBI
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• NABARD

• Export-Import Bank of India

• National Housing Bank

• Small Industries Development Bank of India

• North Eastern Development Finance Corporation

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

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

Banking service for NRIs:

Non Resident Indians or NRIs can open accounts in almost all Indian
banks. The three types of accounts that NRIs can open are:
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o Non-Resident (Ordinary) Account - NRO A/c
o Non-Resident (External) Rupee Account - NRE A/c
o Non-Resident (Foreign Currency) Account - FCNR A/c

Reserve Bank of India (RBI)

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

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

Functions of Reserve Bank of India

The Reserve Bank of India performs all the important functions of a
central bank.

Bank of Issue

The Bank has the sole right to issue bank notes of all denominations.
The distribution of rupee notes and coins and small coins all over the
country is undertaken by it as agent of the Government. The Reserve

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Bank has a separate Issue Department which is concerned with the
issue of currency notes. The Reserve Bank of India is required to
maintain gold and foreign exchange reserves of Ra. 200 crores, of
which at least Rs. 115 crores should be in gold. The system as it
exists today is known as the minimum reserve system.

Banker to Government

The second important function of the Reserve Bank of India is to act
as Government banker, agent and adviser. The Reserve Bank is
agent of Central Government and of all State Governments in India
excepting that of Jammu and Kashmir on all monetary and banking
matters. The Reserve Bank has the obligation to transact
Government business, via. to keep the cash balances as deposits
free of interest, to receive and to make payments on behalf of the
Government and to carry out their exchange remittances and other
banking operations. It makes loans and advances to the States and
local authorities

Bankers' Bank and Lender of the Last Resort

The Reserve Bank of India acts as the bankers' bank. According to
the provisions of the Banking Companies Act of 1949, every
scheduled bank was required to maintain with the Reserve Bank a
cash balance equivalent to 5% of its demand liabilites and 2 per cent
of its time liabilities in India. By an amendment of 1962, the
distinction between demand and time liabilities was abolished and
banks have been asked to keep cash reserves equal to 8.25% per
cent of their aggregate deposit liabilities. The minimum cash
requirements can be changed by the Reserve Bank of India.

The scheduled banks can borrow from the Reserve Bank of India on
the basis of eligible securities or get financial accommodation in
times of need or stringency by rediscounting bills of exchange. Since
commercial banks can always expect the Reserve Bank of India to
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come to their help in times of banking crisis the Reserve Bank
becomes not only the banker's bank but also the lender of the last
resort.

Controller of Credit

The Reserve Bank of India is the controller of credit i.e. it has the
power to influence the volume of credit created by banks in India. It
can do so through changing the Bank rate or through open market
operations. It can ask any particular bank or the whole banking
system not to lend to particular groups or persons on the basis of
certain types of securities.

The Reserve Bank of India is armed with many more powers to
control the Indian money market. Each scheduled bank must send a
weekly return to the Reserve Bank showing, in detail, its assets and
liabilities. This power of the Bank to call for information is also
intended to give it effective control of the credit system. The Reserve
Bank has also the power to inspect the accounts of any commercial
bank.

The Reserve Bank of India, therefore, has the following powers:

(a) It holds the cash reserves of all the scheduled banks.
(b) It controls the credit operations of banks through quantitative and
qualitative controls.
(c) It controls the banking system through the system of licensing,
inspection and calling for information.
(d) It acts as the lender of the last resort by providing rediscount
facilities to scheduled banks.

Supervisory functions

In addition to its traditional central banking functions, the Reserve
bank has certain non-monetary functions of the nature of supervision
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of banks and promotion of sound banking in India. RBI has wide
powers of supervision and control over commercial and co-operative
banks, relating to licensing and establishments, branch expansion,
liquidity of their assets, management and methods of working,
amalgamation, reconstruction, and liquidation. The RBI is authorised
to carry out periodical inspections of the banks and to call for returns
and necessary information from them. The supervisory functions of
the RBI have helped a great deal in improving the standard of
banking in India to develop on sound lines and to improve the
methods of their operation

Promotional functions

The Bank performs a variety of developmental and promotional
functions, which, at one time, were regarded as outside the normal
scope of central banking. The Reserve Bank was asked to promote
banking habit, extend banking facilities to rural and semi-urban
areas, and establish and promote new specialised financing
agencies. Accordingly, the Reserve Bank has helped in the setting up
of the IFCI and the SFC; it set up the Deposit Insurance Corporation
in 1962, the Unit Trust of India in 1964, the Industrial Development
Bank of India also in 1964, the Agricultural Refinance Corporation of
India in 1963 and the Industrial Reconstruction Corporation of India in
1972. These institutions were set up directly or indirectly by the
Reserve Bank to promote saving habit and to mobilise savings, and
to provide industrial finance as well as agricultural finance. The RBI
has set up the Agricultural Refinance and Development Corporation
to provide long-term finance to farmers.

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1.2 History of Standard Chartered

The Standard Chartered Group was formed in 1969 through a
merger of two banks: The Standard Bank of British South Africa
founded in 1863, and the Chartered Bank of India, Australia and
China, founded in 1853.

Both companies were keen to capitalize on the huge expansion of
trade and to earn the handsome profits to be made from financing the
movement of goods from Europe to the East and to Africa.

The Chartered Bank

• Founded by James Wilson following the grant of a Royal
Charter by Queen Victoria in 1853
• Chartered opened its first branches in Mumbai (Bombay),
Calcutta and Shanghai in 1858, followed by Hong Kong and
Singapore in 1859
• Traditional business was in cotton from Mumbai (Bombay),
indigo and tea from Calcutta, rice in Burma, sugar from Java,
tobacco from Sumatra, hemp in Manila and silk from Yokohama
• Played a major role in the development of trade with the East
which followed the opening of the Suez Canal in 1869, and the
extension of the telegraph to China in 1871
• In 1957 Chartered Bank bought the Eastern Bank together with
the Ionian Bank’s Cyprus Branches. This established a
presence in the Gulf

The Standard Bank

• Founded in the Cape Province of South Africa in 1862 by John
Paterson. Commenced business in Port Elizabeth, South
Africa, in January 1863

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• Was prominent in financing the development of the diamond
fields of Kimberley from 1867 and later extended its network
further north to the new town of Johannesburg when gold was
discovered there in 1885
• Expanded in Southern, Central and Eastern Africa and by 1953
had 600 offices
• In 1965, it merged with the Bank of West Africa expanding its
operations into Cameroon, Gambia, Ghana, Nigeria and Sierra
Leone

In 1969, the decision was made by Chartered and by Standard to
undergo a friendly merger. All was going well until 1986, when a
hostile takeover bid was made for the Group by Lloyds Bank of the
United Kingdom. When the bid was defeated, Standard Chartered
entered a period of change. Provisions had to be made against third
world debt exposure and loans to corporations and entrepreneurs
who could not meet their commitments. Standard Chartered began a
series of divestments notably in the United States and South Africa,
and also entered into a number of asset sales.

From the early 90s, Standard Chartered has focused on developing
its strong franchises in Asia, the Middle East and Africa using its
operations in the United Kingdom and North America to provide
customers with a bridge between these markets. Secondly, it would
focus on consumer, corporate and institutional banking, and on the
provision of treasury services – areas in which the Group had
particular strength and expertise.

In the new millennium we acquired Grindlays Bank from the ANZ
Group and the Chase Consumer Banking operations in Hong Kong in
2000.

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Standard Chartered – leading the way

Standard Chartered PLC is listed on both the London Stock
Exchange and the Hong Kong Stock Exchange and is consistently
ranked in the top 25 among FTSE-100 companies by market
capitalization.

Standard Chartered has a history of over 150 years in banking and
operates in many of the world's fastest-growing markets with an
extensive global network of over 1,400 branches (including
subsidiaries, associates and joint ventures) in over 50 countries in
the Asia Pacific Region, South Asia, the Middle East, Africa, the
United Kingdom and the Americas.

As one of the world's most international banks, Standard Chartered
employs almost 60,000 people, representing over 100 nationalities,
worldwide. This diversity lies at the heart of the Bank's values and
supports the Bank's growth as the world increasingly becomes one
market.

With strong organic growth supported by strategic alliances and
acquisitions and driven by its strengths in the balance and diversity of
its business, products, geography and people, Standard Chartered is
well positioned in the emerging trade corridors of Asia, Africa and the
Middle East.

Standard Chartered derives over 90 per cent of profits from Asia,
Africa and the Middle East. Serving both Consumer and Wholesale
Banking customers worldwide, the Bank combines deep local
knowledge with global capability to offer a wide range of innovative
products and services as well as award-winning solutions.

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Trusted across its network for its standard of governance and
corporate responsibility, Standard Chartered takes a long term view
of the consequences of its actions to ensure that the Bank builds a
sustainable business through social inclusion, environmental
protection and good governance.

Standard Chartered is also committed to all its stakeholders by living
its values in its approach towards managing its people, exceeding
expectations of its customers, making a difference in communities
and working with regulators.

Establishment of Standard Chartered Bank around the world

Country Year Established Country Year Established
United Kingdom 1853 Australia 1964
China, India, Sri
1858 Mexico, Oman 1968
Lanka
Hong Kong,
1859 Peru 1973
Singapore
Indonesia,
1863 Jersey 1978
Pakistan
Philippines 1872 Brazil 1979
Malaysia 1875 Venezuela 1980
Falkland Islands,
Japan 1880 1983
Macau
Zimbabwe 1892 Taiwan 1985
The Gambia,
Sierra Leone, 1894 Cameroon 1986
Thailand
Ghana 1896 Nepal 1987
Botswana 1897 Vietnam 1990
Cambodia, South
USA 1902 1992
Africa
Bangladesh 1905 Iran 1993
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Zambia 1906 Colombia 1995
Kenya 1911 Laos, Argentina 1996
Uganda 1912 Nigeria 1999
Tanzania 1917 Lebanon 2000
Bahrain 1920 Cote d’Ivoire 2001
Jordan 1925 Mauritius 2002
Korea 1929 Turkey 2003
Qatar 1950 Afghanistan 2004

Recent strategic alliances and acquisitions

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

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

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

PERSONAL BANKING

1. Savings Account

Savings Exclusive Features Average
Account Features Quarterly
Balance
a) aXcess This account i)Free Unlimited Rs. 10,000
plus account provides Visa ATM
unparalleled transactions.
access to your
money through a ii) FREE Doorstep
variety of Banking.
channels. iii) International
Debit Card

iv) Phone Banking

v) Online Banking
b) No Frills It is designed to i)Free cheque Rs. 250
Account meet you basic deposit at ant
banking SCB branch or
requirements ATM

ii)Access your
account from any
branch of SCB

iii)ATM card and

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Debit card

iv)Phone banking

v)Online banking
c)Parivaar It allows you to i)Maintain Rs. 25,000
Account maintain your individual savings
individual identity account with the
while allowing you benefit of clubbing
to tap your family’s balances in
financial strength. grouped
accounts.

ii)Option of SIP
that allows you to
invest a fixed
amount of money
every month in
specific portfolio.

iii)Globally valid
ATM-cum-Debit
card.

iv)Phone Banking

v)Online Banking
d)Aasaan It is a basic, no i)No minimum Rs. 0
Account maintenance and balance required.
hassle free ii)Unlimited free
savings account. access to SCB
ATM’s.
iii)International
Debit Card
iv)Phone Banking
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v)Online Banking

2. CREDIT CARDS

Standard Chartered Bank offers a wide range of credit cards, each
tailored to satisfy an individual needs.

3. INSURANCE AND INVESTMENTS

Standard Chartered Bank has a tie up with Bajaj Allianz Life Insurance
Company and Royal Sundaram General Insurance to offer a variety of
products in order to cover all insurance requirements.
They offer:

o One-stop shopping for both life and general insurance
protection
o Comprehensive range of products to suit every stage of your
life... from childhood to retirement
o Dedicated insurance Financial Services Consultants from Bajaj
Allianz Life Insurance Company to provide FREE
Consultations to create customized insurance plans for you

Great Place to Work

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

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As we grow, we believe our diverse and inclusive approach provides
engaging opportunities for our employees to develop, both as
individuals and as part of a team. We are committed to creating a
healthy, safe and fulfilling work environment in which people can
grow, individuals can make a difference and teams can win.

Our approach to managing people is underpinned by four principles:

• A focus on managing talent to identify, reward and retain
talented employees
• Building a strengths-based approach by providing the skills to
develop individuals and teams by focusing on people's personal
strengths
• A commitment to drive employee engagement through the
development of exceptional managers with the skills to identify
and build talent
• Creating a diverse and inclusive workplace that encourages our
employees to achieve their potential and support our growth

Priorities at Standard Chartered

At Standard Chartered, we believe that our future success depends
on our ability to deliver a sustainable business. Our 'building a
sustainable business' strategy will help us take a long-term view of
the implications of everything we do. This means taking responsible
decisions that benefit our business, the economy, society and the
environment – and build the trust of all our stakeholders.

Our 'building a sustainable business' strategy explicitly recognizes
seven areas where we and our stakeholders believe we are most
likely to make the greatest contribution to sustainability.

They are:

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

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

Governance
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The governance structure we have set up for Sustainability provides
strategic direction for the Bank and ensures we continue to make
progress with our approach to sustainable development.

The Corporate Responsibility and Community Committee sit at the
top of this structure alongside the Remuneration, Audit and Risk, and
Nomination Committees of our Board. It is supported by a Group
Sustainability team, steering groups for specific programmes and our
branches and offices in each country we operate in.

The Committee is chaired by Mervyn Davies, the Group Chairman,
and meets quarterly. It drives the Sustainability agenda at Standard
Chartered and is responsible for responding to issues coming out of
new Sustainability legislation, regulation, stakeholder guidance and
reporting and for making sure our activities are aligned with our
overall business strategy. It also ensures we publish a Sustainability
report, supported by accurate data, each year, in line with best
practice.

A dedicated Sustainability team, based in the London office, supports
the Committee, the Business and other Group functions. The role of
the team is to talk with stakeholders, monitor good practice and flag
up potential trends and emerging issues. It co-ordinates the collection
of data and is responsible for our annual Sustainability Review and
web site, participating in thought leadership events and raising our
Sustainability profile outside the Bank.

Nine Steering Groups or Committees put the Bank's strategy into
action, co-ordinate Group-wide initiatives and provide policy
recommendations to the Board, its various committees or the
Corporate Responsibility and Community Committee. They are:

• Strategic Sourcing and Vendor Management Committee
• Diversity Council
• Environmental Steering Group
• Health and Safety Steering Group
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• Group Risk Committee
• Reputation Risk Committees
• Seeing is Believing Committee
• Living with HIV Advisory Committee
• Community Partnership Boards

Because our business is spread across the globe in very different
market places, each Country Head is responsible for identifying and
responding to local Sustainability issues. It is the responsibility of
each business unit to adhere to policies that have been set on a
global basis. Where local standards exceed group set policies, the
higher standard is adopted.

Engagement

Helping stakeholders understand the way we operate and the
challenges we face is fundamental to making progress with our
'building a sustainable business' strategy.

Engagement is a word used by many organizations, but it means
something very specific to Standard Chartered. It is the way we go
about communicating with three distinct but interconnected
audiences:

• Our own employees – we want them to really understand
what "Building a sustainable business" means
• People and organizations that use or influence our
products and services – we want to work closely with them to
develop and promote sustainable services
• People and organizations that have the power to make a
wider difference – we want to use our geographic reach to
promote the need for sustainable development

We have been working on our stakeholder engagement programme
for some years. Work in this area has recently increased as continue
to build a clearer picture of our global stakeholder audience including
26


government departments and agencies, socially responsible
investors, academic institutions, business associations and non-
governmental organisations. In 2006 we invited 60 of our key
stakeholders to help us develop our 'building a sustainable business'
strategy. Their contributions – many of which are included in our
2006 Sustainability Review – helped us decide what our sustainable
development priorities should be.

Building a truly relevant stakeholder network is challenging, however,
it is extremely important that we continue to build our network in the
years ahead.

One-Stop Range of Products and Services
We have a full range of foreign exchange and risk management
solutions to meet the needs of clients across the world.

.

Standard Chartered Alternate Investment Group

Standard Chartered Bank's Alternate Investment Group focuses on
distressed and high-yield opportunities by investing in senior debt,
mezzanine or equity instruments. In addition, it provide asset
management services to investment banks, financial institutions and
value investors as well as advisory services to companies in financial
distress or requiring assistance with their capital structure.

Our Business

Investments. Our investment program is aimed at both the primary
and secondary markets. We provide liquidity to the distressed and
high yield market through the following:

• Acquisition of distressed asset portfolios
• Investments in loans and bonds

27


• Offering priority loans (DIP), subordinated or mezzanine debt
• Offering structured investments
• Investments in equity
• Investments in hybrid structures

Asset Management. We offer a range of services under asset
management including origination of investment opportunities, due
diligence, loan servicing (monitoring and recovery) for single assets
and portfolio investments. The Bank has a successful track record of
managing and resolving non-performing loans.

Corporate Advisory. We offer corporate advisory services to
companies requiring capital structuring and to companies in financial
distress. Our range of services includes:

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

Our Strengths

Professional Team. We have a large experienced team of skilled
individuals who have developed a reputation for competency in
valuation, due diligence, acquisition and asset management in the
distressed and high yield market. Our local market knowledge and
workout skills offer value to our clients.

Network. We leverage Standard Chartered Bank's network in our
core markets to provide us on-the-ground knowledge and early
access to situations. The Bank's client franchise offers investment
opportunities while Alternate Investment Group's strong relationships
28


with investment banks, financial institutions, brokers and value
investors provides a valuable source of investors. We utilise superior
information to maximise value for our clients.

Positioning. The distressed and high-yield markets in Asia,Africa
and the Middle East offer attractive revenue generating opportunities.
The Bank is well positioned in these markets to enable Alternate
Investment Group to deliver value to the Bank and our clients.

1.3INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENT

About Investment

It is the money that you save and channelize into sources that gives
you return i.e. use of money in hope of making more money.

One needs to invest to:
 Earn returns on idle resources
 Generate a specified sum of money for a specific goal in life
 Make a provision for a uncertain future
 To meet the cost of inflation

The aim of investment should be to provide a return above the
inflation rate and also to ensure that the investment does not
decrease in value.

There are various options available for of investment:
o Physical assets like real estate, gold/jewellery, commodities
etc
o Financial assets like fixed deposits with banks, small saving
instruments with post offices, insurance/provident/pension
fund, securities market related instruments like shares, bonds,
debentures etc.

29


Types of Investments (period specific)

1. Short Term Investment- The investment period is usually less
than a year and it provides liquidity to the investor.

a) Savings Bank Account- It is most often the first banking
product that people use. This offers them interest (4%-5%
p.a.) which is better than idle money.

b) Money Market of Liquid Funds- These are specialized
form of mutual funds that invest in extremely short-term
fixed income instruments and also provides liquidity. It
focuses on protecting your capital and then on making
returns. These are a better source of investment than
savings account but lower than fixed deposits.

c) Fixed Deposits with Banks- Also known as term deposits
and the minimum investment period with banks FD is 30
days. It is for those investors who are risk averse and it
provides higher rate of return than money market
instruments.

2. Long Term Investment- The investment period is more than a
year and the returns are much higher than short term
investments. Long term instruments are less liquid than short
term investments.

a) Post office savings- The post office monthly income
scheme is a risk saving instrument, which can be availed
through any post office. It provides an interest rate of 8%
per annum, which is paid monthly, minimum amount,
which can be invested is Rs. 1,000 and maximum is Rs.
3, 00,000. It has a maturity period of 6 years, premature
30


withdrawal is permitted if deposit is more than one year
old. A deduction of 5% is levied from the principle amount
if withdrawn prematurely.

b) Public Provident Fund- A long term savings instrument
with a maturity of 15 years and interest payable at 8% per
annum compounded annually. A PPF account can be
opened through a nationalized bank at anytime during the
year and is open all through the year for depositing
money, tax benefits can be availed for the amount
invested and interested accrued is tax free.

c) Company Fixed Deposits- These are short- term [six
months] to medium- term [three to five years] borrowings
by companies at a fixed rate of interest which is payable
monthly, quarterly, semiannually or annually, there can
also be cumulative fixed deposits where the entire
principal along with the interest is paid at the end of the
loan period, the rate of interest varies between 6- 9 % per
annum for company FDs, the interest received is after
deduction of taxes.

d) Bonds- It is a fixed income [debt] instrument issued for a
period of more than one year with purpose of raising
capital, the central of state government corporations and
similar institutions sell bonds. A bond is generally a
promise to repay the principal along with a fixed rate of
interest on a specified date called the maturity date.

e) Mutual funds- These are funds operated by an investment
company which raises money from the public and invests
in a group of assets [shares, debentures etc] in
accordance with a stated set of objectives .It is a
31


substitute for those who are unable to invest directly in
equities or debt because of resource, time or knowledge
constraints. Benefits include professional money
management, buying in small amounts and
diversification. Mutual fund units are issued and
redeemed by the fund management company based on
the fund’s Net Asset Value [NAV], which is determined at
the end of each trading session. Mutual funds are usually
long terms investment vehicle though there some
categories of mutual funds, such as money market mutual
funds which are short term instruments.

About Portfolio

A portfolio is a combination of different investment assets mixed and
matched for the purpose of achieving an investor’s goals. A portfolio
may contain items like shares, debentures, bonds, any asset you
own, mutual funds to items such as gold, art, real estate.

One must have variety of investments within a portfolio in order to
diversify market risk. The portfolio should be designed in such a way
that it minimizes the impact of one security on overall portfolio
performance.

Advantages of having a Diversified portfolio:

 Decline in any one security will not affect the entire portfolio
 Investments across various types of assets and markets will
reduce the risk of entire portfolio getting affected by the
adverse returns of any single asset class.

32


CHAPTER – 2
“RESEARCH
METHODOLOGY”

Research Methodology

33


OBJECTIVE

 To understand the basics of investment and various
alternatives that are available with the investor.

 Also to understand the customer psychology of investments
and what are the various objectives behind the investment.

TYPE OF RESEARCH

Descriptive in nature- The descriptive research design is one that
describes the things such as the market potential for a product or
the demographics and attitudes of consumers who buy the
product. It includes questionnaire survey and fact finding inquiry.

SAMPLE DESIGN

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

DATA COLLECTION TOOLS

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

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

34


CHAPTER-3
“DATA COLLECTION”

35


3.1 Sources of Data Collection

PRIMARY DATA COLLECTION

Primary data was collected through questionnaires. Refer to the
appendix for the data.

SECONDARY DATA COLLECTION

Secondary sources through –
• Internet
• Articles
• papers and
• books

3.2 Products of Standard Chartered

1. SAVINGS ACCOUNT

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

• FREE Unlimited Visa ATM transactions* (Cash withdrawal and

balance enquiry)

• FREE Standard Chartered Bank branch access across the

county

• FREE Doorstep Banking*

36


• FREE Demand Drafts/Pay Orders* (drawn at SCB locations)

• FREE Payable at Par Chequebook

Other features available are;

• International Debit Card

• Phone Banking

• NetBanking and

• Extended Banking Hours

b. Parivaar

Parivaar is much more than a regular Savings Account. It allows you
maintain your individual identity while allowing you to tap your
family's financial strength. It also offers attractive insurance options to
protect against unforeseen events and the facility of Systematic
Investment Plan (SIP), a unique long-term wealth building tool.

• Your family can maintain individual savings accounts with the
benefit of clubbing balances in grouped accounts.
• Anytime, anywhere access to accounts through ATMs, Phone
Banking and InterNet banking.
• Option of Systematic Investment Plan (SIP), a well known long
term wealth building tool that allows you to invest a fixed
amount of money every month in specific mutual funds. This
comes with a direct debit facility and avoids the need to
remember dates and write cheques every month.
• Globally valid ATM-cum-debit card can be used at 55,000
merchant outlets in India and 12 million outlets worldwide.

c. No Frills Account

37


You can now open an account with Standard Chartered Bank, with
an average quarterly balance of as low as Rs. 250. What’s more –
you can avail of Anywhere Banking, by which you can access your
account from any branch of Standard Chartered Bank in India.

• Quarterly Average Balance, as low as Rs. 250.
• ATM card & Debit Card available..
• 4 free transactions per month at any Standard Chartered Bank
channel (Internet banking, Phone Banking, ATM & Branch)..
• Anywhere banking – Access your account from any branch of
Standard Chartered Bank.
• Access to Phone Banking and Internet Banking
• Free Cheque deposit at any SCB Branch or ATM.

Eligibility criteria

This account is available to individual Resident Indian customers.

Account may be opened after being properly introduced in a manner
approved by the Bank.

d. AaSaan

• No Minimum Balance requirement
• Free unlimited access to any SCB branch across the country
for Customer-in-person
• Unlimited Free access to Standard Chartered Bank ATM's
• Upto 4 free cash withdrawal transactions per month at other
domestic VISA ATMs*
• Nominal quarterly fee of Rs. 100 (reversed if the Average
Balance in the quarter is Rs 10,000 or more)

Other Facilities

38


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

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

COMPARISION OF SAVINGS ACCOUNT

Schedule of services provided by various bank - A Comparison

Kotak
Features ICICI HDFC Mahindra ABN Amro StanChart
Flex
Name of saving accounts Saving Regular Edge Advantage a
Saving Plus Pro Flex Plus S
SavingsMax Ace Flex Prvilage aa
No

Advantage -
Average Quarterly Balance 10,000 Regular - 5,000 Edge - 10,000 0 aXc
Plus - 10,000 Pro - 20,000 Plus - 10,000 Super
Privilage -
Max - 25,000 Ace - 75,000 25,000 a
No

Rate of Interest 3.50% 3.50% 3.50% 3.50%

Annual Maintenance charges 750 Regular - 750 Edge - 750 750 aXce
Plus - 750-1000 Pro - 750 Supe
Max - 1000-1500 Ace - 1200 No

39


Issue of debit card Yes Yes Yes Yes

Annual Debit card charges 99 500 Global - 100 180 + Taxes Sho
G

Draft Charges (per thosand) 40-55 Upto 25,000 - NA 50 55

UTI & 5
ATM Swap charges Free Andhra Bank & HDFC-free transaction Free
from any
SBI-NA bank- Free

Mobile banking Free Free Free Free
Internet banking Free Free Free Free
Phone banking Free Free Free Free
Cheque book Free At Par Free 2/leaf (at par) At Par Free

2. ULIP- Unit Linked Insurance Plan

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

In addition to serving as a protective cover, life insurance acts as a
flexible money-saving scheme, which empowers you to accumulate
wealth-to buy a new car, get your children married and even retire
comfortably.

Life insurance also triples up as an ideal tax-saving scheme. To know
more, read the Key Benefits of Life Insurance.

40


Key Benefits of Life Insurance

Life insurance, especially tailored to meet financial needs

Need for Life Insurance

Today, there is no shortage of investment options for a person to
choose from. Modern day investments include gold, property, fixed
income instruments, mutual funds and of course, life insurance.
Given the plethora of choices, it becomes imperative to make the
right choice when investing your hard-earned money. Life insurance
is a unique investment that helps you to meet your dual needs -
saving for life's important goals, and protecting your assets.

Asset Protection

From an investor's point of view, an investment can play two roles -
asset appreciation or asset protection. While most financial
instruments have the underlying benefit of asset appreciation, life
insurance is unique in that it gives the customer the reassurance of
asset protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of
one’s family remain protected from circumstances such as loss of
income due to critical illness or death of the policyholder.
Simultaneously, insurance products also have a strong inbuilt wealth
creation proposition. The customer therefore benefits on two counts
and life insurance occupies a unique space in the landscape of
investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a
young, newly married couple, it could be buying a house. Once, they
decide to start a family, the goal changes to planning for the

41


education or marriage of their children. As one grows older, planning
for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change,
the instrument in which you invest should offer corresponding
benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific
products tailormade for different life stages. It thus ensures that the
benefits offered to the customer reflect the needs of the customer at
that particular life stage, and hence ensures that the financial goals of
that life stage are met.

The table below gives a general guide to the plans that are
appropriate for different life stages.

Life Insurance
Life Stage Primary Need
Product
Young & Wealth creation
Asset creation
Single plans
Wealth creation
Young & Asset creation
and mortgage
Just married & protection
protection plans
Education
Children's insurance,
Married with education, mortgage
kids Asset creation protection &
and protection wealth creation
plans
Planning for Retirement
Middle aged
retirement & solutions &
with grown
asset mortgage
up kids
protection protection
Across all Health plans Health Insurance

42


life-stages

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

The Bajaj Allianz New UnitGain Super comes with a host of features
to allow you to have the best of all worlds - Protection and
Investments. It enables every participant to create a solid financial
protection and savings plan for himself and his family. In this way, as
a participant in the Bajaj Allianz New UnitGain Super Plan, you can
secure your well being and accumulate savings towards financial
independence and a comfortable retirement.
They offer the best in financial planning. One can now avail of the
twin benefit of risk protection as well as getting market-linked return
on your investment. An insurance plan that works round the clock to
meet the changing requirements in life – additional protection, more
money to invest, sudden requirement of cash or a steady post-
retirement income. With Bajaj Allianz New UnitGain Super, you can
invest in one life insurance plan that can take care of all your
changing requirements. This plan has been designed to provide your
family with higher financial assistance should anything unfortunate
were to happen to you as well as flexibility, so that you do not have to
worry about your changing needs.

The Key Features of the New UnitGain Super Plan are:
43


• It is a unit linked plan with minimum term of 10 years and maximum
maturity
age 70
• Guaranteed death benefit
• You have the option to choose a host of additional benefits (Riders):
UL Accidental
Death Benefit, UL Accidental Permanent Total/Partial Disability
Benefit, UL Critical Illness Benefit and UL Hospital Cash Benefit
• It provides you with an easy, regular contribution mechanism to
assist you in accumulating funds. Four different options to choose
from – Silver, Gold, Diamond & Platinum

Options Premium Range
Silver >=Rs 25,000 but < Rs 50,000
Gold >=Rs 50,000 but < Rs 100,000
Diamond >=Rs 100,000 but < Rs 500,000
Platinum >=Rs 500,000 & Above

• You can adopt your own investment strategy to grow the funds
contributed.
• Choice of 6 investment funds today with flexible investment
management: you can change funds at any time and also invest in
the newer funds that would be introduced from time to time.

Investment Options:

Bajaj Allianz New UnitGain Super offers you a choice of 3 funds. You
can choose to invest fully in any one fund or allocate your premiums
into the various funds in a proportion that suits your investment
needs.

The six funds offered are as under:

44


1.Equity Index Fund II - Risk Profile – High : The investment
objective of this fund is to provide capital appreciation through
investment in equities forming part of NSE NIFTY.

FUND EXPOSURE
Bank Deposits and Money Market 0%-15%
Instruments
Equities 85%-100
%

2.Equity Growth Fund- Risk Profile – Very High : The investment
objective of this fund is to provide capital appreciation through
investment in selected equity stocks that have the potential for capital
appreciation.

FUND EXPOSURE
Instruments
Equities 80%-100
%

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

FUND EXPOSURE
Instruments
Not more than 20% of the 80%-100
apportioned premium can be put %
in this fund

45


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

5.Liquid Fund- Risk Profile- Low: The objective of this fund is to
have a fund that protects invested capital through investment in liquid
money market and short-term instruments.

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

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

FUND EXPOSURE

46


Instruments
G-Secs, Bonds and Fixed 80%-100
Deposits %

3. MUTUAL FUNDS

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

Benefits

The reason that mutual funds are so popular is that they offer the
ability to easily invest in increasingly more complicated financial
markets. A large part of the success of mutual funds is also the

47


advantages they offer in terms of diversification, professional
management and liquidity.

 In MFs, the risk involved decreases and the return increases
because of diversified pool of funds.
 It is the cheapest of all investments. But if you invest through
broker then you have to any 2.5% of the total investment but if
you invest directly into the company no entry charges will be
taken.
 There is no lock in period in case of MFs but if you divest toyur
investment within a period of 1year then you will have to pay an
exit load between 1%-2%.
 Tax Saving is another benefit given to the investors.

Flexibilty - Mutual Fund investments also offers you a lot of flexibility
with features such as systematic investment plans, systematic
withdrawal plans & dividend reinvestment.

Affordability - They are available in units so this makes it very
affordable. Because of the large corpus, even a small investor can
benefit from its investment strategy.

Liquidity - In open ended schemes, you have the option of
withdrawing or redeeming your money at any point of time at the
current NAV

Diversification - Risk is lowered with Mutual Funds as they invest
across different industries & stocks.

Professional Management - Expert Fund Managers of the Mutual
Fund analyse all options based on experience & research

48


Potential of return -The fund managers who take care of your
Mutual Fund have access to information and statistics from leading
economists and analysts around the world. Because of this, they are
in a better position than individual investors to identify opportunities
for your investments to flourish.
Low Costs - The benefits of scale in brokerage, custodial and other
fees translate into lower costs for investors.

Regulated for investor protection - The Mutual Funds sector is
regulated to safeguard the investor's interests.

Here we have to calculate the Net Asset Value which helps us in
calculating the no. of units.

NAV= CA-CL
No.of Units

If the market price decreases, the no. of units held by the investor
increases and vice versa.

49


CHAPTER-4
“ANALYSIS &
INTERPRETATION”

ANALYSIS AND INTERPRETATION

Q1. What is your age group?

50


Distribution of Responders Age groups

(d) > 45 yrs
14%

(c) 35-45 yrs
10%

a) 18-25 yrs
54%

(b) 25-35 yrs
22%

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

distribution of responders according to their occupation

30

25 (b) Salaried, 25
no. of respnoders in a
particular occupation

Q2. What is your Occupation?
20
category

15

10 (d) others, 10
(a) Business, 8 (c) Self Employed,
5 7
51
0
various occupations


The above graph shows the occupation of the sample respondents.
50% of the respondents belong to the category of salaried
employees.
16% of the respondents are into Business.

14% of the responds are self employed and the rest 20% into other
occupation.

household income range

(a) < 2 lakhs
4%
(d) > 10lakhs
28%
(b) 2-5 lakhs
Q3. Under which range your Household Income falls?
30%

(c) 5-10 lakhs 52
38%


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

Proportion of objectives

44
favouring the objective
Number of responders

32
29
23
15 14
Q4. What is your objective behind Investments?
1
(a) Safety &

benefits

(d) Expecting

(f) Managing
(e) Future
Retirement

good Returns

uncertainties

(g) Others
(c) Tax
security of

plans
capital

(b)

53

various objectives


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

Q5. How do you take financial decisions?

54


sources of decision

1% (a) Independently
19% 22%
(b) Word of mouth
9% (c) Broker
(d) Advise from a CA
(e) Advise from a Bank
8% (f) Financial Advisors
29%
12% (g) Others (please specify)

According to the survey, 29% i.e. maximum no. of respondents take
their financial decisions based on other’s opinion i.e. word of mouth.

22% of the total respondents take their financial decision
independently. They take this decision based on their own
interpretation and calculations.

19% of the respondents take their financial decisions with the help of
financial advisors.

12% of the respondents take their financial decision based on the
interpretation of the broker.

Remaining respondents take their financial decisions either with the
help of the bank or from the CA.

Q6. How much Risk are you willing to take?

55


Risk ability

(a) High
12%

(b) Low
18%

(c) Moderate
70%

According to the graph above, 70% of the respondents are willing to
take moderate risk i.e. 35 respondents take moderate risk while
taking investments decisions.

12% of the respondents i.e. 6 people out of 50 surveyed are willing to
take high risk.

18% of the respondents i.e. 9 people are risk averse so they make
investments in those securities which have less risk involved.

Q7. What do you have presently in your portfolio in form of
investment?
56


financial products

44
No. of responders having the product in thier portfolio

32

27
26
24

20

13

4

0

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

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

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

57


satisfaction level

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

The above chart shows the satisfaction level of the sample
population.

Majority of the sample population rate their current portfolio as
“Good” which constitutes to 70%.

18% of the sample population i.e. 9 respondents out of 50 rate their
current portfolio as “Very Good”.

6% of the respondents are not much satisfied with their portfolio so
they rate it as “Average”.

Out of the total sample size of 50, only 4% of the respondents i.e. 2
people rate their portfolio as “Excellent” as they must be getting good
returns from their investment.

Remaining 2% of the total population do not have much idea about
the investment strategies so may not be getting much returns so they
rate their portfolio as “Poor”.

58


ANALYSIS BASED ON THE AGE GROUP OF THE
RESPONDENTS

A) Age Group 18-25 years

i) Occupation

distribution of occupation for the age category of 18-25yrs

16
14
14
paritcular 18-25 yrs of age for

12
no. of responsers of age

particular occupation

10
8 7
6
4
4
2
2
0
(a) Business (b) Salaried (c) Self Employed (d) others
occupations avialable

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

Out of the total sample population, 7 respondents out of 27 are
neither into job, nor business. They have either invested into the
share or commodity markets or they are students.

59


Out of 27, 4 respondents are self employed i.e. they have joined their
family business.

Remaining 2 respondents out of 27 in this age group are into
business.

ii) Income

60


income levels for the age group 18-25 yrs

12 11
10
10
8
no. of responders
of 18-25yrs of age 6
in each level 4
4
2
2
0
(a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs (d) > 10lakhs
various income levels avialable

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

(d) > 10lakhs (a) < 2 lakhs
15% 7%

(b) 2-5 lakhs
(c) 5-10 lakhs 41%
37%

The above graph shows the income level of the respondents in the
age group of 18-25 years.
61


In this age group, maximum no. of respondents has an income in the
range of 2-5 lakhs.

10 of out of 27 respondents in this age group has an income range
between 5-10 lakhs.

Around 20% of this age group has an income above 10 lakhs and
the remaining 10% are below 2 lakhs.

Risk capability for the age group 18-25yrs

iii) Risk high
15%

low
19%

moderate
66% 62


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

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

The remaining 15% of the respondents take high risk which means
that they invest in equity, mutual funds and other risky instruments.
Distribution of occupation,income level,risk level of responders of age
group 18-25yrs

20
18 18
16
No. of responders for the

14 14
12 occupation
particular

11
10 10 income
8 risk level
7
6
5
4 4 4 4
2 2
63
0
levels of occupation, risk and income


This graph shows a correlation between the occupation, risk and
income of the respondents.

The yellow line depicts the risk level, pink depicts the income level
and blue depicts the occupation of the respondents.

According to the survey, when the income level of this age group is
below 2 lakhs, they can invest in those instruments that have low risk
attached to it and the occupation of such respondents is salaried
employees.

As the income level range increases to 2-5 lakhs, the respondents
decide to invest in those instruments having moderate risk attached
to it and these people are generally into business.

All those whose income level range from 5-10 lakhs, they their risk
taking ability is also higher then others.

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

64


B. Age Group 25-35 years

i) Occupation

Distribution of occupation for the age group 25-35 yrs

6 6
5
4
No. of
3 2
respondents 2
2
1 1
0
a) Business

b) Salaried

c)Self Employed

d)Others

Occupation

There are 11 respondents out of 50 who are in the age group of
25-35 years.

No.of
Occupation Respondents
a) Business 2
b) Salaried 6
c)Self Employed 2
d)Others 1

ii) Income

65


Distribution of Income for the Age group 25-35 yrs

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

37%

Out of the sample population, 11 respondents are in the age group of
25-35 years.

37% of the total respondents in this age group have an annual
income of 5-10 lakhs.

36% of the respondents i.e. 4 respondent’s annual income is above
10 lakhs.

The remaining 27% of the respondents i.e. 3 of them have an annual
income between 2-5 lakhs.

iii) Risk

66


Distribution of Risk for the Age group 25-35 yrs

9%
9%

High
Low
Moderate

82%

According to this graph, majority of the respondents take moderate
risk in investments.

And rest 9% of them can take high and low risk.

67


Distribution of Occupation, Income and Risk level of
respondents of age group 25-35 yrs

10
9
8
No. of respondents

6 6 Occupation
Income
4 4 4 Risk
3
2 2 2
1 1 1
0 0 0
1 2 3 4
Occupation, Income and Risk level

In the graph above, yellow line depicts risk, ping line depicts income
and blue line depicts occupation.

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

C. Age Group 35-45 years

68


i) Occupation

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

others
20%
business
40%

self employed
20%

salary
20%

Occupation No.of Respondents
Business 2
Salary 1
Self employed 1
Others 1

ii) Income

69


Distribution of income levels of responders of age group 35-45yrs

40% 40%
40%
35%
30%
25% 20%
% of responders in
20%
each income level
15%
10%
5% 0%
0%
(a) < 2 lakhs (b) 2-5 lakhs (c) 5-10 lakhs (d) > 10lakhs
various income levels

In this age group, there is no single respondent below the income
level of 2 lakhs.

20% of the respondents lie in the income category of 2-5 lakhs.

40% of the respondents lie in the income category of 5-10 lakhs.

Again 40% of the respondents lie in the income category of income
above 10 lakhs.

Hence, equal no. of respondents have an income ranging from 5-10
lakhs.

iii) Risk

70


Distribution of risk level accepted by the responders of age group
35-45yrs
80

80

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

0
high low moderate
various risks level avialable

According to the graph, 80% of the people invest in those
instruments carrying moderate risk.

Remaining 20% of the respondents invest in low risk instruments.

No one in this age group invest in instruments carrying high risk.

D. Age Group >45 years

i) Occupation
71


Distribution of Occupation for the age group >45 yrs

60.00% 57.14%
50.00%

40.00%

30.00% 28.57%

20.00%
14.29%
10.00%
0.00% 0.00%
S1
a) Business b) Salaried c) Self d) Others
Employed

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

28.57% of the respondents, are into business.

ii) Income

72


Distribution of Income for the Age group >45 yrs

0%
0%

43%
<2 Lacs
2-5 lacs
5-10 lacs
>10 Lacs
57%

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

Majority of respondents i.e. 57% of the respondents have income
above 10 lakhs.

iii) Risk

73


Distribution of Risk for the Age group >45 yrs

57.14%
60.00%

50.00%

40.00%
28.57%
30.00%

20.00% 14.29%

10.00%

0.00%
High Low Moderate

In the graph above, maximum no. of respondents i.e. 57.14% of
people have an ability to take moderate risk and invest in all kind of
instruments.

28.57% of the respondents invest in those instruments that carry low
risk attached with it.

Finally there are only 14.29% of the respondents who invest in those
instruments carrying high risk with it.

74

A project report on investment strategies and portfolio management at standard chartered bank

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