A PROJECT REPORT ON

WEALTH MANAGEMENT

SUBMITTED BY:DEV GOYAL - 70

T.Y.B.M.S. [Semester V]

MITHIBAI COLLEGE OF MANAGEMENT

Vile Parle (w), Mumbai - 400 056

Submitted to
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2015-2016

PROJECT GUIDE
PROF. SHABANA KHAN

DECLARATION

I, DEV GOYAL roll no. 70, T.Y.B.M.S. [Semester V], , of MITHIBAI COLLEGE
OF MANAGEMENT,

hereby declare that I have completed my project, titled

Electronic Marketing in the Academic Year 2015-2016. The information submitted

herein is true and original to the best of my knowledge.

__________________________
Signature of Student
DEV GOYAL

CERTIFICATE

I, PROF. SHABANA KHAN, hereby certify that Mr. Dev Goyal of Mithibai
College of TYBMS [Semester V] has completed his project, titled Marketing of
Airtel - 4g, in the academic year 2015-2016. The information submitted herein is
true and original to the best of my knowledge.

_______________________________

______________________

Signature Of The Principal

Signature Of The Project Guide

[Dr. D. V. Kamath ]

PROF. SHABANA KHAN

______________________

Signature of External Examiner

Acknowledgement

It is my earnest sincere desire & ambition to acquire profound knowledge in the

study of management studies. I have had considerable help to advice at very outset of
this project. It is my pleasure to acknowledge the help & guidance that I had received
from that personnel & to thank them individually .
First of all I express my sincere thanks to principle for having given me a
chance to undergo the project work.
Secondaly I convey my sincere thanks to the course co-ordinator for her
valuable suggestion & co-operation which helped me to complete the project
successfully.
The completion of the project is a mildstone in the life of management student
in execution is inevitable without the co-opertion of project guide. I am deeply
graceful to my project guide for his valuable ideas require suggestions &
encouragement for refining this project studies. Finally I thanks all the staff members
& my friends for there valuable support & contribution to my project.

EXECUTIVE SUMMARY

Savings form an important part of the economy of any nation. With the savings
invested in various options available to the people, the money acts as the driver for
growth of the country. Indian financial scene too presents a plethora of avenues to
the investors. Though certainly not the best or deepest of markets in the world, it has
reasonable options for an ordinary man to invest his savings. The money you earn is
partly spent and the rest saved for meeting future expenses. Instead of keeping the
savings idle you may like to use savings in order to get return on it in the future. This
is called Investment. One needs to invest to and earn return on your idle resources
and generate a specified sum of money for a specific goal in life and make a
provision for an uncertain future One of the important reasons why one needs to
invest wisely is to meet the cost of Inflation. Inflation is the rate at which the cost of
living increases. The cost of living is simply what it costs to buy the goods and
services you need to live. Inflation causes money to lose value because it will not
buy the same amount of a good or service in the future as it does now or did in the
past. The sooner one starts investing the better. By investing early you allow your
investments more time to grow, whereby the concept of compounding increases your
income, by accumulating the principal and the interest or dividend earned on it, year
after year. The three golden rules for all investors are:

Invest early

Invest regularly

Invest for long term and not short term

This project will also help to understand the investors facet before investing in any of
the investment tools and thus to scrutinize the important aspects for the investors

before investing that further helped in analyzing the relation between the features of
the products and the investors requirements.

Wealth management services in India have been predominantly oriented towards the
Ultra HNIs (High Networth Individuals) and HNIs. However, the size and
demographics of the Indian population reveal a skew towards the Mass Affluent
segment hailing from the salaried or entrepreneurial backgrounds. This segment
lacks an organised delivery channel for wealth management services that directly
addresses its investment advisory needs. The requirements of this segment are unlike
the Ultra HNI and HNI segment. While wealth maximisation is the key objective for
Ultra HNI and HNIs, a goal-based advisory approach, with a broader asset mix,
defines the key needs of this growing segment. Moreover, the distribution model in
India is going through a transition with greater focus on investment advice and a
requirement for advisors to have multi - vendor and multi - product offerings in their
product suite.

Believes that the changing scenario is pro Mass Affluent segment and presents a win
- win situation for both investors and distributors. A scientific wealth management
offering by distributors can offer mutual benefits to investors and distributors. It will
enable a large base of investors to diversify across asset classes by moving from
conventional bank deposits to high yielding investments. At the same time, large
distributors and Independent Financial Advisors (IFAs) can collaborate to provide
greater value-added services to a larger section of investors. The IFA's bring in a
deeper understanding of the investor along with a retail networking capability, while
larger institutions possess research capabilities and infrastructure.

Difference from Financial Planning: There is very fine line of difference between
Financial Planning and Wealth Management. The difference is so subtle that many
people believe that the wealth management is nothing but financial planning only.
They think that financial planning is presented under new label called Wealth
Management. They believe it is like putting Old Wine in New Bottle.
Financial Planning and Wealth management both focus on an individuals financial
needs and goals throughout the lifecycle. Broad areas that are taken care of by both
approaches are risk management, investment management, retirement planning,
working capital management, real estate planning, tax planning and charitable
giving. But the differences between financial planning and wealth management are
as follows:

OBJECTIVE OF THE STUDY

To understand the concept, need & scope of wealth management & issues
related to it at Axis Bank

To understand the various investment portfolios in the market like Equities

and derivatives trading, Commodities trading, Portfolio Management
Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other
small savings instruments

To learn how appropriate folder is made for clients according to their

requirements.

To ensure that the client achieves his / her lifetime financial objectives in the
most scientific and pragmatic manner

TABLE OF CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION TO WEALTH MANAGEMENT

WEALTH MANAGEMENT ADVANTAGE

10

PRODUCTS AND SERVICES WM AT AXIS

12

WHY AXIS BANK FOR WEALTH MANAGEMENT

15

RESEARCH ANALYSIS AT AXIS BANK

20

FINDINGS

31

BIBLIOGRAPHY

32

APPENDIX

33

1.

INTRODUCTION TO WEALTH MANAGEMENT

Wealth Management is a preferred delivery mode for providing financial advisory

services to affluent customers. Its an extension of financial advisory service done
under financial planning and involves delivery of suite of services and managing
relationship with clients. It involves the team of specialists, which provide
comprehensive service and also manages client relationships. All these specialists
share clients. The service provider offers a complete range of planning services like
risk management, investment management, retirement planning, working capital
management, real estate planning, tax planning and charitable giving. Wealth
management encompasses all these aspects.

Difference from Financial Planning:

There is very fine line of difference between Financial Planning and Wealth
Management. The difference is so subtle that many people believe that the wealth
management is nothing but financial planning only. They think that financial
planning is presented under new label called Wealth Management. They believe it is
like putting Old Wine in New Bottle.

Financial Planning and Wealth management both focus on an individuals financial

needs and goals throughout the lifecycle. Broad areas that are taken care of by both
approaches are risk management, investment management, retirement planning,
working capital management, real estate planning, tax planning and charitable
giving. But the differences between financial planning and wealth management are
as follows:

10

Financial Planning

Wealth Management

Financial planning is Sole Advisor Effort Wealth management is a Team effort

Financial planning approach assumes

It is a team of specialists who work

that the advisor is a generalist and knows

together and come out with overall plan

all the nuances required to tackle the

for individual life.

broad areas.

Client who qualifies for financial

Clients who have acquired

planning is normally an average person

predetermined level of wealth qualifies

who is planning to retire.

for wealth management. Different

organizations have different level and
criteria to measure the level of wealth.

11

WEALTH MANAGEMENT OVERVIEW

12

Wealth Management Advantage

Experts for Every Need
To service your varied needs like buying propertyseeking loans for personal or
business needs, investments and insurance, our experts on different products will
work closely with your Relationship Manager.

At Axis Bank Wealth Management you will have access to

Dedicated Relationship Manager.

Dedicated Customer Service Manager.

Team of Financial Experts.

Dedicated Business Banking Advisor.

Axis Group Expertise.

Exclusive Priority Service

Enjoy an exclusive banking experience with Wealth Management Branches and
Lounges a dedicated Customer Care helpline, and priority processing centres to
service all your requests quickly and efficiently.

Wealth Management Branches and Lounges.

Priority Processing.

Exclusive 24-hour Customer Care Helpdesk.

13

Axis Bank Wealth Management Branches and Lounges are available at select cities
only.
Customised Investment Planning
We create, review and rebalance your investment plan to meet your needs. This is a
dynamic, 5 stage process, where your Relationship Manager and a team of experts
will work closely with you to customise your investment.

Step 1: Understanding your Risk Profile.

Step 2: Asset Allocation.
Step 3: Investment Advisory.
Step 4: Review your Investments.
Step 5: Matching your changing needs.

This Five Stage process is backed by in-depth research on different asset classes and
a wide range of investment products.

14

PRODUCTS AND SERVICES AVAILABLE IN THE WEALTH

MANAGEMENT AT AXIS BANK

SERVICES
Portfolio Management and Portfolio Rebalancing
Investment Management and Strategies
Trust and Estate Management
Private Banking and Financing
Tax Advice
Family Office Structures and Manage

PRODUCTS

Stocks and Stock Trading

Equity Linked Investments
Structure Savings Products
Structured Investment Products and Derivatives
Foreign Exchange
Mutual Funds and Unit Trusts
Property Management and Investments
Alternative Investments including: o Art o Wine o Precious Metals o Property

15

WEALTH MANAGEMENT - FREQUENTLY ASKED QUESTIONS

What is Wealth Management?
Wealth Management is an advanced investment advisory discipline that incorporates
Financial Planning and Specialist Financial Services.
What is financial planning?
A simple and effective way to plan for your financial future just as you plan for
anything
else for a movie by finding out what we like, where is it showing, how will we
reach
there and what will it cost. In a rapidly changing world, it is necessary to know
financially
where we are, what are our dreams and how much money is required to realize each
dream including financial freedom.
Why is financial planning important? What are the advantages of financial
planning ( FP)?

To protect yourself and your loved ones against financial risk

To achieve the best possible lifestyle, suitable to your income streams
To plan for the best possible education for your children or buying your

dream house
To build up adequate corpus for your long term goals
To be able to retire when you want and as you want

Its important to see if we can achieve the lifestyle we yearn for, such as a dream
home,
that snazzy car, educating children well or the biggest dream of all to retire early and

16

enjoy life peacefully. Through FP we are able to see, if though approximately, how
much we need to earn, save and invest to realize our dreams & goals. The biggest
advantage is that we have control over where every rupee goes, know the value of
money and we can make sure that every rupee saved earns more money, thus making
money work for us instead of we working for money.

When should one start with financial planning?

Ideal time to start is NOW . Starting young is a big advantage. Many people put off
financial planning as they think I am young and what difference can waiting for a
year make it can in fact make a big difference!

17

VARIOUS VEHICLE FOR INVESTMENT

Stocks: Investing in stocks
Since the end of World War II the average large stock has returned
close to 10% a year -- well ahead of inflation, and the return of
bonds, real estate and other savings vehicles. As a result, stocks
are the best way to save money for long-term goals.
What is a stock?
When you own a share of stock, you are a part owner in the company with a claim -however small it may be -- on every asset and every penny in earnings. As a
company's earnings improve, investors are willing to pay more for the stock.
How do I buy stocks?
You can easily open a low-cost brokerage account online, at sites like Fidelity,
Charles Schwab, TDAmeritrade or Scotrade. You can move money electronically
into your account and start trading. Most discount broker sites charge a set fee of
around $10 per trade.
What different types of stocks are there?
There are thousands of stocks to choose from, so investors usually put stocks into
different categories: size, style and sector.
Size:

18

A company's size refers to its market capitalization, which is the current share price
times the total number of shares outstanding. It's how much investors think the whole
company is worth.
Companies with large market capitalizations, or "large-cap" companies tend to be
established and stable, but because of their size, they have lower growth potential
than small caps.
Over the long run, small-cap stocks have tended to rise at a faster pace. With less
developed management structures, small caps are more likely to run into trouble as
they grow.
Mid-caps, or medium-sized companies, fall somewhere in the middle.
Style:
A "growth" company is one that is expanding at an above-average rate, much as tech
companies did in the 1990s. Catch a successful growth stock early on, and the ride
can be spectacular. But again, the greater the potential, the bigger the risk. Growth
stocks race higher when times are good, but as soon as growth slows, those stocks
tank.
The opposite of growth is "value." There is no one definition of a value stock, but in
general, it trades at a lower-than-average earnings multiple than the overall market.
Maybe the company has messed up, causing the stock to plummet -- a value investor
might think the underlying business is still sound and its true worth not reflected in
the depressed stock price.

19

A "cyclical" company makes something that isn't in constant demand throughout the
business cycle. For example, steel makers see sales rise when the economy heats up,
spurring builders to put up new skyscrapers and consumers to buy new cars.
But when the economy slows, their sales lag too. Cyclical stocks bounce around a lot
as investors try to guess when the next upturn and downturn will come.
Sector:
Standard & Poor's breaks stocks into 10 sectors and dozens of industries. Generally
speaking, different sectors are affected by different things. So at any given time,
some are doing well while others are not.
In most cases, finance, health care and technology tend to be the fastest growing
sectors, while consumer staples and utilities offer stability with moderate growth.
The other sectors tend to be cyclical, expanding quickly in good times and
contracting during recessions.
How do I chose?
Although there are more than 6,000 publicly traded companies, the core of your
stock portfolio should consist of financially strong companies with above-average
earnings growth.
There are only about 200 stocks that fit that description. A well-balanced stock
portfolio should consist of 15 to 20 stocks, across seven or more different industries.
As a general rule, stocks with moderately above-average growth rates and reasonable
valuations are the best buys. Statistically, high-growth stocks are usually overpriced
and have a harder time meeting inflated investor expectations.

20

The first thing to look at is the stock's price/earnings ratio compared with its
projected total return. Ideally, the P/E should be less than double the projected return
(a P/E of no more than 30 for a stock with 15% total return potential)

What are equity-linked investments?

Equity-linked investments (ELIs) are structured investment products embedded
with derivatives, the investment returns of which are linked to the performance
of the reference assets. The reference assets can be shares in a listed company,
units in an exchange-traded fund or equity indices.
Some issuers include one or more additional special features in their ELIs. These
features may affect the potential gain or loss of the ELIs in different ways.
To understand how an ELI works, it is important to first note its key dates.
Following is an example of the key dates for an ELI

Structured Investment Products - SIPS

Structured Investment Products - SIPS'
A type of investment specifically designed to meet an investor's financial needs by
customizing the product mix to adhere to the investor's risk tolerance. SIPs are
generally created by varying the amount of exposure to risky investments and often
include the use of various derivatives.
BREAKING DOWN 'Structured Investment Products - SIPS'

21

A structured investment will vary depending on the risk tolerance of the investor.
SIPs typically involve various exposures to fixed income markets and various
derivatives. Conservative investors will have a higher exposure to the fixed income
markets, while risk-tolerant investors will have a higher exposure to equities and
derivatives.
Refine Your Financial Vocabulary
Gain the Financial Knowledge You Need to Succeed. Investopedias FREE Term of
the Day helps you gain a better understanding of all things financial with technical
and easy-to-understand explanations.

22

FOREX
If you were wondering; forex trading is nothing more than direct access trading
of
different types of foreign currencies. In the past, foreign exchange trading was
mostly limited to large banks and institutional traders however; recent technological
advancements have made it so that small traders can also take advantage of the many
benefits of forex trading just by using the various online trading platforms to trade.
The currencies of the world are on a floating exchange rate, and they are always
traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily
transactions
involve trading of the major currencies.
Four major currency pairs are usually used for investment purposes. They are: Euro
against US dollar, US dollar against Japanese yen, British pound against US dollar,
and
US dollar against Swiss franc. Right now I will show you how they look in the
trading
market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should
know that
no dividends are paid on currencies.
If you think one currency will appreciate against another, you may exchange that
second currency for the first one and be able to stay in it. In case everything goes as
you plan it, eventually you may be able to make the opposite deal in that you may

23

exchange this first currency back for that other and then collect profits from it.

Mutual Fund & UIT Basics

INTRODUCTION TO MUTUAL FUND
AND ITS VARIOUS ASPECTS
Mutual fund is a trust that pools the savings of a number of investors
who share a common financial goal. This pool of money is invested in
accordance with a stated objective. The joint ownership of the fund is
thus Mutual, i.e. the fund belongs to all investors. The money thus
collected is then invested in capital market instruments such as shares,
debentures and other securities. The income earned through these
investments and the capital appreciations realized are shared by its
unit holders in proportion the number of units owned by them. Thus a
Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost. A Mutual Fund
is an investment tool that allows small investors access to a welldiversified portfolio of equities, bonds and other securities. Each
shareholder participates in the gain or loss of the fund. Units are
issued and can be redeemed as needed. The funds Net Asset value
(NAV) is determined each day.
Investments in securities are spread across a wide cross-section of
industries and sectors and thus the risk is reduced. Diversification
reduces the risk because all stocks may not move in the same direction
in the same proportion at the same time. Mutual fund issues units to

24

the investors in accordance with quantum of money invested by them.

Investors of mutual funds are known as unit holders.

When an investor subscribes for the units of a mutual fund, he

becomes part owner of the assets of the fund in the same proportion as
his contribution amount put up with the corpus (the total amount of
the fund). Mutual Fund investor is also known as a mutual fund
shareholder or a unit holder.
Any change in the value of the investments made into capital market
instruments (such as shares, debentures etc) is reflected in the Net

25

Asset Value (NAV) of the scheme. NAV is defined as the market value
of the Mutual Fund scheme's assets net of its liabilities. NAV of a
scheme is calculated by dividing the market value of scheme's assets
by the total number of units issued to the investors.

Unit investment trusts act in part like a mutual fund and a closed-end company
combined. The typical UIT issues shares or units that investors can redeem at some
point in the future. This feature is similar to features found in a mutual fund. When
an investor makes a redemption request, the UIT buys back the investors units at a
price thats close to the units net-asset value.
Mutual Fund Basics
Like a UIT, mutual funds issue redeemable shares in the fund company. Should an
investor in a mutual fund desire to redeem her shares, the fund must buy back the
shares at the current net-asset value and distribute any proceeds to the investor within
seven days.
Differences
Although they share many similarities, unit investment trusts differ from mutual
funds in very significant ways. A UIT invests in a smaller diversified portfolio of
securities and does not actively trade its portfolio. In other words, the UIT might
invest in 10 securities and use a buy and hold strategy for those ten securities for
the life of the UIT. Mutual Funds offer very diverse portfolios and actively trade the
securities in the portfolio. A mutual fund might have 20, 30, 40 or more securities in
one portfolio. When a UIT gets established it also establishes its own termination
date. For example, a UIT has invested in 30-year bonds, but once the bonds mature,

26

the UIT terminates. Additionally, A UIT makes an initial public offering just like its
closed-end company counterpart. The UIT issues a fixed number of shares during
this public offering. Mutual funds create shares based on demand, giving them
almost an unlimited number of shares available to trade. Also, a UIT does not have a
board of directors or utilize the services of an investment advisor or investment
managers. Mutual funds have professional investment advisors and managers sitting
at their helm.

27

WHY AXIS BANK FOR WEALTH MANAGEMENT

Build wealth no matter what is happening in the economy.
There are obviously no guarantees but you can maximise your chances of making
money irrespective of what is happening in the economy by investing in a diverse
range of assets (such as equity, debt and gold). By balancing your investments across
multiple asset classes, you tend to reduce risk of losing money to economic shocks
(like the recent global financial crisis).
Empirical studies have shown that between 1995 and 2012, if you had invested
equally in stocks, bonds and gold, only once would you have lost money i.e. in 1995.
In all the other 17 years, average returns from an equal mix of these three assets were
positive
Wealth Management Advantage
Experts for Every Need
To service your varied needs like buying propertyseeking loans for personal or
business needs, investments and insurance, our experts on different products will
work closely with your Relationship Manager.

At Axis Bank Wealth Management you will have access to

Dedicated Relationship Manager.

Dedicated Customer Service Manager.

Team of Financial Experts.

Dedicated Business Banking Advisor.

Axis Group Expertise.

28

Exclusive Priority Service

Enjoy an exclusive banking experience with Wealth Management Branches and
Lounges a dedicated Customer Care helpline, and priority processing centres to
service all your requests quickly and efficiently.

Wealth Management Branches and Lounges.

Priority Processing.

Exclusive 24-hour Customer Care Helpdesk.

Axis Bank Wealth Management Branches and Lounges are available at select cities
only.
Customised Investment Planning
We create, review and rebalance your investment plan to meet your needs. This is a
dynamic, 5 stage process, where your Relationship Manager and a team of experts
will work closely with you to customise your investment.

Step 1: Understanding your Risk Profile.

Step 2: Asset Allocation.
Step 3: Investment Advisory.
Step 4: Review your Investments.
Step 5: Matching your changing needs.

29

This Five Stage process is backed by in-depth research on different asset classes and
a wide range of investment products.
Special Privileges
We believe that our relationship with Wealth management customers is truly special.
So, you and family can enjoy a wide range of benefits, which span from personal and
business banking privileges to lifestyle exclusives - all hand-picked for you.

Personal Banking Privileges - Enjoy special privileges like charge waivers,

personalised international Debit Card and Family Wealth Account.

Lifestyle Privileges - We bring you exclusive investment seminars, lifestyle events

and special offers on lifestyle brands.
Grow Your Wealth
As our customer, you have a dedicated Relationship Manager at your disposal. Your
Relationship Manager will work closely with you and our investment experts to
suggest superior investment solutions to meet your specific objectives taking into
account the current economic environment.
Investment Approach
We follow a disciplined, structured and holistic process that takes into consideration
you current financial profile, investment goals and risk appetite to create suitable
investment plans. Your Relationship Manager will spend time with you to gain an indepth understanding of all these aspects to ensure that the investment solutions meet
your specific needs.

30

Investment Products
Through our tie-ups with some of the most reputed Mutual Fund Houses, you get
access to best-performing schemes in every asset class, to suit your changing
investment needs. Some of our partner Asset Management Companies also offer you
Private Equity Funds and Portfolio Management Services. If it's insurance you're
looking for, we offer a wide range of term, endowment, health and market-linked
insurance policies to suit your requirements. At Axis Bank Wealth Management, we
work with our partners in our endeavour to develop products that get you better
returns within your investment strategy.

Services offered on iWealth:

Viewpoint : Access video interviews with Industry experts on Equity, Fixed

Income, Economy, Products and more.

Speak of the Week : Get latest weekly updates on Global Market, Economy
and much more.

Wealth Advantage : Enjoy a wide range of exclusive lifestyle ,travel, health

& beauty offers.

Inbox : You can now store all your notifications in your inbox and never miss
any important information or offer.

Culinary Treats : Get latest offers and discounts at your favorite restaurants
in your city.

31

Resource Center : Use the Risk profile questionnaire, EMI calculator,

Retirement calculator, Investment calculator and more to plan your
investments.

Products : Apply for Home Loans, Car Loan, Credit Cards and more.

Click to Call : Connect directly with an officer at the 24 Hour toll free
customer care no.

Cameraderie : View the entries of our Annual Online Photography contest

Cameraderie through your smartphone.

Available on your iPhone and Android smartphones.

Funds & Investments
We understand that your investment goals and risk appetite change over time. To
meet these evolving financial needs, we offer you a diverse range of investment
products.

32

Mutual Funds
Investment in Mutual Funds* is important to build an ideal and balanced portfolio.
We help you identify the appropriate mix of Mutual Fund Schemes as per your risk
appetite and financial goals, be it equity funds, where you look for growth and
capital appreciation, or debt funds for capital

*Mutual Fund investments are subject to market risks. Please read the offer
documents of respective schemes carefully before investing.
Portfolio Management Services*
Axis Bank Wealth Management will assist you for Portfolio Management Services
(PMS) like Equity based Products, Commodity based Products, Index linked
Products etc. by referring to our partner Asset Management companies.

*Axis Bank provides referral services only.

33

Alternative Investments
We help you broaden your investment avenues by offering you Alternative
Investment products like Residential & Commercial Real estate services**, Real
Estate Funds & Private Equity*, through our partners.

*Axis Bank provides referral services only.

Deposits
Axis Bank Wealth Management brings you a wide range of competitively priced
deposit products that offer you safety of investment and steady growth of your
portfolio.
What's more, you can now invest in Deposits through our 24x7 channels: Internet
Banking, Phone Banking & at select ATMs.
Business Philosophy
Outside-in View

Investor at the heart of every single decision.

Communicate in his language, not in ours.

Enduring Wealth Creation

Play a serious and credible role in investor's money basket.

Encourage investors to build a long-term perspective of the mutual fund

category.

Long-term Relationships

Leverage the equity of the 'Axis' brand

Aim at building relationships rather than being transactional

34

35

36

Research Analysis at Axis Bank Client Table showing gender male/female

Gender

No. of Respondents

Percentage

Male

17

85

Female

15

20

100

Total

Interpret
ation : The above chart shows males are more dominating comparing to the women
investors. Out of 20 respondents 85% are male and 15% are female.

37

Table No.2:
Table showing occupation/profession of the respondents
Occupation

No. of Respondents

Professional

Self-employed

Service

Others

3
Total

20

No. 20 of Respondents at axis bank

Professional

Self-employed
Service
Others

20

Total
5
3

38

Table showing age group of respondents

Age group

No of
respondents

18-28

28-38

38-48

48 and above

Total

20

age group at axis bank

18-28

28-38
38-48

20

48 and above

Total

3
4

Table showing Annual income of investors

39

Annual Income

No. of Respondents

Less than 100000

60000 to 150000

150000 to 300000

4
300000 and above

Total

20

Table showing Annual income of investors No. of Respondents

Less than 100000

60000 to 150000
150000 to 300000

20

300000 and above

Total

40

Table showing instruments of investment preferred by respondents

Various Investments

No. of Respondents

Mutual funds various plan of Axis Bank

Stock market

Insurance various Insurance Plan

Others

2
Total

20

20 Respondents various investment

Mutual funds various
plan of Axis Bank

Stock market
Insurance various
Insurance Plan

4
20

Others
Total

8
2

41

Table showing opinion about Mutual fund market

Criteria

No. of Respondents

High risk

Low risk

Average risk

10
Total

20

Mutual fund risk

2

High risk
8

Low risk
Average risk

20

Total
10

42

Table showing purpose to invest

Purpose

No. of Respondents

Saving Tax

Children Future

Contingent Exp.

Others

Total

20

purpose to investment
Saving Tax

Children Future
6

Contingent Exp.
Others

20

Total

5
5

43

Axis Advice for Investment

Criteria

No. of Respondents

Good

V. Good

10

Average

3
Total

20

Axis Advice for Investment 20Respondents

satisfied

V.satisfied
Average
20

Total
10
2

44

satisfaction toward advice

Criteria

No. of Respondents

satisfied

V.satisfied

10

Average

Total

20

satisfraction toward advice 20 Respondents for investment

2

satisfied
V.satisfied

Average

10

45

Investment behaviors
Criteria

No. of Respondents

Regular returns

10

Safety

Insurance

5
Total

20

Investment behaviors
Regular returns

10

Safety
Insurance

20

Total
5
5

46

Table showing Periodical information on investment by Axis Bank

Periodical information

No. of Respondents

Yes

16

No

4
Total

20

information on investment

Yes
16
20

47

No
Total

FINDINGS
It is always going to be a win-win situation for the investor and the amount invested
under wealth management. Now especially with the advent of technology that
communication time gap has reduced itself to being almost real time. That means
zero loss of time. Moreover thousands of crores of rupees can be transacted upon
with efficiency and no hitches of procedural delays. These mediums are reliable, fast,
smart and intelligent. The advent of technology is what has been the main crusader
towards enriching India.
Technology has facilitated demat accounts which I think is a major hurdle that has
been overcome. Through demat now millions of transactions are possible through a
single person which was unthinkable until recently. It would generally take days on
end to process only one transaction.
Apart from that millions of dollars are saved on a daily basis only saving the ink and
paper which would have otherwise been used.
Not deviating from the topic however if we talk about wealth management, it is an
awesome tool to save time and money. The beauty of it is the more you employ
wealth management strategies the more time you will save in earning that much
money and youll consequently save money in the process. It is like a dynamic
system where the growth of the money is not a linear addition terms but mostly in
multiplicative terms.
Most companies may just perish due to not knowing how to manage their own funds.
Dell for example came to a point in existence where Michael Dell didnt know what
to do and how simply because his profits were soaring and the company was
expanding almost uncontrollably. At that point it not only becomes should-bemanaged thing but a necessity. There have been instances where people and
companies have been able to bail themselves out of situations only on the basis of the
returns accrued due to the wealth management. There is a very thin line between
resource allocation and wealth management. In resource allocation one makes money
more manageable whereas wealth management makes sure that one allocates the
money to the right channels and gets a benefit out of it.
Today retirement has become a major concern. Today people are deciding to retire
earlier and most will not have enough only on savings to last them their entire
remaining life. Today I think it has become more important for the youth of the
nation to recklessly indulge in wealth management. This will not only take care of
his retired life but also enable extra income currently and may help in times of
sudden crisis that develop during the course of ones life time. Any individuals
needs for more income are undying. A youth may have a wife in the very near future.
Then kids. More and more money will be required to lead a comfortable life in the
future. Especially in an age of rising cost of living and cost of education.

48

Though wealth management, share markets, insurance, finance may sound scary (at
least for the 60-80% of the people who fear numbers), the fact is it is not all that
difficult. it may sound complicated at the beginning but once you get the hang of it
you will almost laugh at yourself. I say this because I would always maintain a safe
distance from anything related remotely to something as monstrous as finance. But
then I realized that money itself is the source of survival, livelihood and the very
basis of why anyone would or should work. And one day everyone has to deal with
money. Dealing with money doesnt start and end at any given points. It starts and
goes on. So might as well be prepared when it is inevitable.

49

BIBLIOGRAPHY
Websites:
www.google.com
www.rbi.com
www.axisbank.com
Journals:
The Analyst
October: 2005, October: 2007, November: 2007
Portfolio Organizer
October: 2005, April: 2006, June: 2006, June: 2007, August, 2007
Treasury Management
December, 2006
Books:
IUP on Wealth Management
Arindam Banerjee
Wealth Management: An Introduction
Manish Ashiya
Newspapers:
The Economic Times
DNA
Hindustan Times

50

APPENDIX
I) QUESTIONNAIRE:
1) What is your name?
____________________________________________________________________
__
2) What is your educational qualification?
____________________________________________________________________
____________________________________________________________________
____
3) Are you aware of the term Systematic financial planning?
i) Yes

ii) No

4) Have you ever tried your hands on financial planning? Why?

____________________________________________________________________
____________________________________________________________________
____
5) When you thought of financial planning, what came to your mind first, to
plan it

personally or hire a professional?

____________________________________________________________________
____________________________________________________________________
____
6) Are you and your family insured?

51

____________________________________________________________________
____________________________________________________________________
____

52

7) Under which insurance policy are you insured?

____________________________________________________________________
____________________________________________________________________
___
8) Have you insured your assets? Under which insurance policy?

9) What is the proportion of your investment in the following & why?

Equity

Mutual fund

Debt

Savings

Fixed deposits

Public Provident Fund

Gold , silver, metals, etc.

Others

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________
10) What are your thoughts on retirement planning?
____________________________________________________________________
____________________________________________________________________
________

53

11) Have you planned your retirement?

____________________________________________________________________
____________________________________________________________________
________

54

This list will assist you in identifying various goals that you might have.

Provide a sum of Rs_________ for funding son/

Mention the year and

funds
Daughters higher education. The funds will be required that will be required.
one time/ annually for _________ years.

Provide a sum of Rs__________ for funding son/

Mentions the

requirements
Daughters marriage expenses.

separately for each

child.

Provide a sum of Rs__________ for buying a new car.

Mention the year in

which
the fund will be
required.

Provide a sum of Rs__________ for buying a new

Mention the year in

which
house.

the fund will be

required.

55

Provide a sum of Rs__________ every _______year

Mention the interval

after
for overseas vacation with family.

which the funds will

be
required.
Provide a sum of Rs__________ for meeting my social

Mention the intervals

after
obligation in the year______________.

which the funds will be

required.

PERSONAL BUDGETING

Personal Budgeting

Name __________________________________________________________
Date ___________________
PARTICULAR

MONTHLY

INCOME
Income from business / profession.
Salary (take - home)

56

ANNUAL

Bonus
Odd jobs
Income from house property
Interest / dividends
Other incomes
Total income
Expenses
Fixed expenses (must pay a specific amount every month)
Rent / house payment
Tenant / homeowner insurance
Real estate taxes
Health insurance premiums
Life insurance premiums
Car loan payment
Public transportation
Auto insurance premium
Parking (if fixed)
Credit card payments
Other fixed expenses

Total fixed expenses

57

58

PERSONAL BUDGETING

Personal Budgeting

Name __________________________________________________________
Date ___________________
PARTICULAR

MONTHLY

Variable expenses (must pay, but amounts vary every

month)
Electricity
Gas
Water
Internet / broadband
Basic telephone
Childcare
Laundry / dry cleaning.
Parking
Public transportation
Groceries and household items
Toileteries
Basic clothing
Hair cut

59

ANNUAL

Healthcare / prescriptions
Bank fees
Home repair upkeeping basic appliances.
Car repair
Petrol / diesel
Stationary supplies and postage
Tution course fee
School book supplies
Legal expenses
Other variable expenses
Total variable expenses
Total fixed and variable expenses
REMAINING BALANCE (income minus fixed variable
expenses)

PERSONAL BUDGETING

Personal Budgeting

Name __________________________________________________________

60

Date ___________________
PARTICULAR

MONTHLY

Discretionary expenses (optional)

Savings
Invetments
Additional payments on loans credit cards
Additional clothing
Pet food and care
Eating out (meals)
Long distance telephone
Cellphone
Outside entertainment (clubs, tickets)
Special personal care items and services
Business service (laws, taxes)
Entertainment appliances (radio, telivision)
Cable TV
Internet access
Subscriptions
Books, CDs games video rentals.
Household furnishings, remodelling
Dues / memberships
Donations
Fitness / sports participations / gym

61

ANNUAL

Travel / vacations
Hobbies (hobbies, software)
Club expenses
Snacks / take out
Lottery tickets
Cigarettes / alchohol
Other dicretionary expense
Total discretionary expenses
TOTAL EXPENSES
REMAINING BALANCE OR DEFICIT

62