Table of Content: TH TH

Niveshak Mpowered Pvt.
Ltd,New Delhi
Project Report
On
“Understanding Mutual Funds & Risk Profiling of Investors”
Under the Guidance of:
Mr. Sanjay Sinha (Faculty Guide)
Mr. Anubhav Talwar (Company Guide)
For the Period
14th May 2010 to 14th July 2010
Submitted by:
Pawan Kumar Soni
KHR2009PGDMF164
Table of Content
Niveshak Mpowered Private Limited, New Delhi
1
INTRODUCTION
• NIVESHAK MPOWERED
• THE GROUP COMPANIES :
 SPA CAPITAL SERVICE LTD

 ACSYS SOFTWARE (INDIA) PVT. LTD
2
NIVESHAK FINANCIAL ADVISORY PROGRAM (N-FAP)
• OBJECTIVES
• PROGRAM STRUCTURE & CONTENTS
• PRODUCTS
• AMFI TRAINING
• UNIQUE CHARACTERISTICS
• NIVESHAK FINANCIAL ADVISORY PROGRAM PLUS (N-

FAP+)
3
INVESTMENT BASICS
• WHY DO WE NEED INVESTMENT
• WHEN SHOULD WE START INVESTING?
• WHAT ARE AVAILABLE INVESTMENT OPTIONS?
• INVESTMENT PROCESS
4
PROJECT OFFLINE & ONLINE
Pawan Kumar Soni-ITM Business School 2009-2011

• OBJECTIVE
• ONLINE PROCEDURE
5
CONCLUSION
• CONCLUSION
• FINDINGS
• SUGGESTION
6
ANNEXURES
INTRODUCTION
Niveshak Mpowered
Niveshak is a Company incorporated under the Indian Companies Act 1956.
Niveshak is created solely with a view to provide a platform for the Investors to
enable them to take informed decision for investing their hard earned money, in
seeking this goal, Niveshak also endeavors to develop a qualified and well-
informed cadre of Financial Advisors and Distributors by empowering the
practicing Financial Advisors/Distributors with better/relevant knowledge/skills
and by training the young college and B-School graduates with adequate
knowledge/skills.
A unique Investor Education Program has been devised for helping the investor
understand the intricacies of the savings and investments. The program also
encompasses in it sufficient
provision to draw sufficient learning from the feedback received from the investors as
to what is the significance of learning and knowledge on the investment decisions
of the common investors. Niveshak Associates would help the investors in
understanding their risk profile so that they can understand what type of
savings/investment options or securities and mutual funds they should invest
within their overall risk profile.
Niveshak is an initiative of SPA Capital Services Ltd. and Acsys Software (India)
Pvt. Ltd.
Board Members
Mr. Kamal Somani, FCA,
A senior finance professional with over 30 years of
experience in investment banking, securities broking
and corporate finance. His vast experience and vision
has enabled the Group to establish itself as a respected
financial services provider in the country. He looks after the overall group
strategies and leads securities broking, investment advisory and investment
banking activities of the Group.
Mr. Sandeep Parwal, B.Com (Hons), FCA,

Over 20 years of experience in various aspects of financial services. He handles
investment advisory, insurance broking and merchant banking activities of the
Group. His expertise in providing customized innovative solutions with
unmatched speed provides a distinctive edge to the Group's capability.
Mr. V. Shankar,
An alumnus of Indian Institute of Management Calcutta and Indian Institute of
Technology Madras, is the Managing Director of Computer Age Management
Services (CAMS), the largest RTA in India. Computer Age Management Services
Pvt. Ltd. (CAMS), offers a comprehensive package of Transaction Processing and
Customer Care services to the Mutual Fund industry, and has been constantly
raising the bar in customer service since 1995. CAMS today has the most
appropriate and advanced technology employed, with the best network for service
delivery through its network of Service Centers in all major cities in India.

Currently CAMS provides this comprehensive package of services to 18 Indian

Mutual Fund families as services provider. Of every 100 Mutual Fund
transactions processed in India, CAMS processes 50 or more. CAMS is clearly
the #1 choice for Mutual Funds in India.
Mr. Shanks is also a Director at Acsys Software., which is a leading Technology

and Software Solution Provider in the niche vertical of the Mutual Fund Industry
both in India and abroad
The Group Companies

SPACapital Service Ltd
SPA Group promoted in 1995, by a team of financial professionals, provides value
added financial services like corporate finance and wealth management services
to Indian companies and HNIs. SPA Group has established itself as one of India's
leading financial advisory house, offering various financial services like securities
broking, insurance broking, corporate finance, merchant banking, financial
advisory, risk management and wealth management.
SPA Capital Services Ltd. is a flagship company of SPA Group, engaged in

advisory and distribution services of mutual funds & insurance and is ranked
amongst the top 5 financial intermediaries of the country. The company has a
distribution network of over 200 sub-brokers across India being serviced by its 58
branches. The company has mobilized over Rs. 5 lac crores for various mutual
funds during the last 10 years and is currently having AUM over Rs.20,000 crores
with hundreds of satisfied customers.
Acsys Software (India) Pvt. Ltd

is a leading Technology and Software Solution Provider in the niche vertical of the
Mutual Fund Industry both in India and abroad. Its Software products and
services covering many application areas are termed "Best of Brand" services
within the Indian Fund Industry. Acsys designs software solutions and products to
keep pace with today's changing market place. Its software applications and
products, support all participants in the fund industry, be it the Fund House, the
Distributorand/or Investor.
In addition, Acsys has a large pool of in-house expertise to continually develop

appropriate and advanced technology requirements to the financial services
market in general and Fund Industry in particular.
Profile
Acsys Software (India) Pvt. Ltd., incorporated in 1996, was originally the
software division of Computer Age Management Services (P) Ltd., (CAMS). It
was hived off as a joint venture in association with Alliance Capital LLP of the
USA. Currently, Acsys Software is fully owned by the original Indian promoters
and is an affiliate Company to CAMS.
CAMS is India's largest Transfer Agency for Open Ended Funds dominating more
than 60% of the market. CAMS offer Outsourced Transaction Processing,
Customer Care, Fund Accounting & related Transfer Agency Services
Acsys Software products for Asset Management Companies, Distributors and related
entities come with the following advantages:
 Substantial knowledge of business and domain of the Mutual Fund Industry. It
understands the needs easily and is able to harness the software solutions for new
products and services faster.
 Its Software Products and services are put through extreme process conditions
through its stake-holder's businesses.
 It operates in a dynamic environment dictated by enormous growth in the Indian

Mutual Fund Industry in a very short span.
 Demonstrated capabilities overseas, through offshore development, which resulted in
an entity migrating from a multiple database and legacy systems environment to a
"state of the art" open architecture software solution - See Case Study.
 Members of NICSA and ALFI, leading Fund Forums in US and Europe. Thereby
continually tracking trends in the overseas Investment Industry.
 Multi-currency functionality to include Euro compliancy.
Acsys Software (India) Pvt Ltd.

is a leading Technology and Software Solution Provider in the niche vertical of the
Mutual Fund Industry both in India and abroad. Its Software products and
services covering many application areas are termed "Best of Brand" services
within the Indian Fund Industry. Acsys designs software solutions and products to
keep pace with today's changing market place. Its software applications and
products, support all participants in the fund industry, be it the Fund House,the
Distributor &/or the Investor.
Acsys has a library of core products, which meets the software requirements of
Mutual Fund Asset Management Companies, Fund Distributors and other
intermediaries. All its products are designed and customized using Client Server
Architecture for Oracle Databases with Power Builder and other Internet enabled
front ends, using JAVA, XML and other revolutionary tools for 24/7 web
delivery. Acsys Software has production facilities at Chennai, India and provides
client service from Luxembourg for Europe.

Niveshak
Financial Advisory Program (n-fap)
Set yourself apart in the job market.
Smoothen your way from college to corporation! Learn how to take your college
degree to the business
You are serious about your studies, and about your job and a career in the corporate
world. The NML's Niveshak Interaction Program is designed to help you stand
out in the job market. It is a unique Internship Program to enable you to pick the
ropes of a successful financial advisory career.
This program is an eight - week intensive introduction to the principles of

Advisory Business and skills you'll need in the financial world. Whether or not
you've studied business, you can benefit from the training based on the top-ranked
learning program. You'll gain the confidence that comes from:
 Polishing your communication and presentation skills

 Learning business thinking in the Financial Advisory Career
 Understanding the forces that drives the Advisory business
 Testing ideas from a variety of perspectives
 Working effectively with a diverse group of people in a short span of time
 Starting to build great contacts, so essential for success in the world
 Strengthening leadership abilities through collaborative projects
Niveshak Financial Advisory Program (NFAP)

It is believed that the financial and capital market would generate the largest number
of employment opportunities in the next 2 decades. Yet the talented people with
the skills sets required to fill most of the positions are glaringly missing in the
country. A successful sales & marketing career in the financial market requires a
thorough grooming at the grass-root level,& that is where this program commands
immense value.
NML believes that large scale employment opportunities exist in this field for
graduates and fresh MBAs, if empowered properly. Niveshak, therefore, offers
quality & practical education in field of investment, financial planning, insurance
and tax advisory. As part of this initiative Niveshak has chosen to offer a
comprehensive internship program titled "Niveshak Interaction Program" for a
total duration of two months. This Internship not only offers a strong opportunity
to learn for a budding student; but also shapes up the professional in the student as
a result of mentoring from an experienced Mentor. This paves the way for a
strong and rewarding career. The entire program is designed such that student will
also be made to acquire the AMFI & IRDA licenses. In addition, the internship
also enables a student to earn sizeable money.
Niveshak Interaction Program - Objectives

Today the Indian Capital market requires the inclusion of a wide base of retail
investors to counter the volatility caused by the inflow & outflow of foreign
money on which we have excessive dependence. Indian middle class savers
largely share the capital market (only amount 2% of the salary savers participate).
Only through a process of personalized education can they be attracted to join the
capital market via Mutual Funds, Insurance etc. To ensure the delivery of
"Investor.Education@home" and facilitate investments, India needs to grow a
new cadre of financial advisors who are not merely "Salesmen" but rather
"Advisors" - properly trained to educate and assist the saver, logistically and with
knowledge. NML proposes to achieve this goal through this unique Internship
Program in addition to the soon to be launched regular 6 month diploma program.
This program seeks to develop a vocational skill by providing knowledge
required to obtain licenses to advise investors, and then provide the environment
through an experimental learning proven to avoid the temptation of merely hard
selling financial products but rather to deliver financial education. This program
provides opportunity to sharpen the communication and presentation skills. The
field work helps student in understanding the nitty-gritty of the financial advisory.
This program also fulfils the need of the Interns/Students to complete the
internship which their regular degree program expects them to do.
Niveshak Mpowered Pvt. Ltd has been created to meet regulatory and corporate
requirements for providing the requisite Course Material & forum for various
regulatory licenses necessary for selling the MF & Insurance products,
Supervision by Expert Mentors for augmenting critical skills and information
Technology Environment. The entire design is such that it also offers the most
favorable brokerage for the students (only available to corporate national
distributors & not individuals) and sufficient remuneration for lead generation
Program Structure & Contents
Duration of the Program :

8 Weeks (of which 1 Week would be devoted for class room training split into two
parts of 3 days each, 6 Weeks for Practical/ Field Training; 1 week for report
writing).
Course Contents:

The first 3 days would be spent on giving an overview of the savings/investment

scenario in the country. The students would be required to pick the niceties of the
savings/ investment world comprising of the following:
Module I : Mutual Funds
 About Mutual Funds
 Type of Mutual Funds
 How to evaluate the Mutual Funds
 How to select Mutual Funds
 Basics of investing in Mutual Funds
 Some Prominent Funds
Module II: Life Insurance

 Introduction to & Principals of insurance (Life & General Insurance)
 Life & General insurance Products (including UIP)
 Premiums & Bonuses
 Policy Conditions
Module III: Savings Schemes

 Bank Saving Schemes
 Postal Savings Products
Module IV: Income Tax Advisory

 Tax Structure for Individual
 Tax Saving Options
Module V:Investor Education (Niveshak Investor Program)

 After 2 days' classes to cover Module II - Module IV and a brief overview of
Mutual Funds, students would be required to undergo field training for a
period of 6 weeks. They would be required to identify at least 75 potential
clients; meet at least 50 of them and take these clients through a presentation
Financial.literacy@home. Students will be supervised by the Mentors in
identifying and meeting the potential clients. Students will deliver an
elementary financial literacy workshop to these potential clients at their
respective homes or offices. Students will also have to assist them in
completing the basic requirements of investing in certain financial instruments
(called "Know Your Client or KYC") and help them in obtaining the PAN
Number and KYC Code number. If after the presentation the client wants to
invest, students would arrange necessary help for them. The successful
completion of the Investor Education program would require student to
achieve at least the following:

Project Report
In the final week the students would be required to compile and collate the data they
have collected and would be required to complete their project report for final
evaluation and award of the Internship Completion Certificate
Products
 Saving Products
 Investment Products
 Insurance
 Income Tax
 Financial Planning
AMFI Training
In the 7th week the students who are willing to write the AMFI examination to
acquire the SEBI approved license to sell Mutual Fund products in India would be
taken for 2 days' class room training program to enable them to be able to qualify
the AMFI examination to be held on the 3rd day of the training. The prescribed
course syllabus for this examination is as under:
 Concept, History & Type
 Fund Structure & Constituents
 Legal & Regulatory Framework
 Offer Document
 MF Distribution & Sales Practice
 Accounting, Valuation & Taxation
 Investor Services
 Investment Management
 Return, Risk, Performance & Fund Selection
 Financial Planning, Concept & Process
 Life Cycles & Wealth Cycles
 Creating & Recommending a Model Portfolio

 Investment Strategies
 Business Ethics
 About AMFI Certification test
This will be followed by an on-line or off-line AMFI Examination.
The examination fee for this examination is not included in the course and hence
student will be requied to pay this fee separately. The fee is Rs.1000 for on-line
examination and Rs.750 for offline examination.
NML will endeavour to organize a training program for this examination at its sole
discretion subject to the availability of minimum of 50 students in a batch.
Alternatively the training could be arranged at additional fee from the students.
Unique Characteristics of Niveshak Interaction Program
The practical training is based on the application or use of the

acquired
knowledge in Financial Planning. The unique feature of the
program is
that 6 weeks out of the total duration of 8 weeks, the students
will
be acquiring practical experience.
The unique characteristics of NIP program are as under:-
Learning & Skill Acquisition through Field Work

Students will deliver an elementary financial literacy workshop to the potential clients
at their
respective homes (financial_literacy@home). This will give them a clear idea about
the basics of Financial Planning Advisory. Students will be helped to groom
themselves in such a manner that without the fear of meeting the strangers they
would be able to give an effective and impressive presentation to the potential
clients. Students will also assist the client in procuring the KYC and PAN codes -
the pre-requisites for investing in MF or equity market.
Regular Mentoring
Experts (to be designated as 'Mentor') in the field of the financial and capital market
will assist the Students in identifying potential clients and meeting them. The
Mentor for each student will be identified right from the beginning of the program
who would hand-hold them in all aspects of financial planning advisory. Students
will be assisted by the mentor in identifying and meeting the potential clients
Training to be a true Financial Advisor

The emphasis of the program is to help students hone their skills as advisor,
therefore, there would be no expectation from the students to generate sales from
the client. They would be truly acting as Advisor to their clients. In case the
investor wants to invest, Mentor will help in enabling the Investor to select right
product and close the transaction so that the Investor gets 360 degree service.
Unique blend of Learning with Opportunity of Earning

When the investor chooses to invest through the student then the student will in
return be rewarded from the Niveshak Mpowered Private Limited purely in
accordance with the governing regime/prevailing regulations. This performance
based incentive will become a revenue for the Students and the target of this
course is so designed that if the student is successful, he/she could earn a
significant money by way of advisory fee/commission. This would be a
significant differentiating factor from other Internship Programs and will provide
every student an equal opportunity to earn with his own efforts.
Technological skills enhancement and support

The entire program has a strong technological base. This will help the student in
acquiring the most modern techniques to advise the clients and improve his/her
efficiency. Student Section allows the student to get all feedback about him/her to
gauge the progress of work. The Prospecting Module helps in developing list of
quality prospectus and taking them to logical end. The Transaction module will
allow a student to monitor the investments made by the client.
Regular Review & Feedback

system through the technology platform will allow students to access feedback of
his faculty and mentor online and also to receive feedback where does he stands
vis-à-vis his peers and also against scheduled pace of the Program.
Niveshak
Financial Advisory Program Plus (n-fap+)
Today the Indian Capital market requires the inclusion of a wide base of retail
investors to counter the volatility caused by the inflow & outflow of foreign
money on which we have excessive dependence. Indian middle class savers
largely share the capital market (only amount 2% of the salary savers
participate). Only through a process of personalized education can they be
attracted to join the capital market via Mutual Funds, Insurance etc. To
ensure the delivery of "Investor.Education@home" and facilitate
investments, India needs to grow a new cadre of financial advisors who are
not merely "Salesmen" but rather "Advisors" - properly trained to educate
and assist the saver, logistically and with knowledge. A discerning student
willing to make a career in highly remunerative, challenging and interesting

field of financial selling will find this program to be the true bridge to his/her
destination of career.
This program seeks to develop a vocational skill by providing

 Knowledge
 Skills
 Maturity through an experimental learning proven to avoid the temptation of merely
hard selling financial products but rather to deliver financial education
 Ability to acquire licenses to advise investors
 Sharpen the communication and presentation skills
 The field work helps student in understanding the nitty-gritty of the financial advisory
 Opportunity to earn
Program Structure & Contents

Duration of the Program : 24 Weeks (of which 2 Week would be devoted for
class room training, 21 Weeks for Practical/ Field Training; 1 week for report
writing & presentation etc.)
Course Contents
The class room training would be spent on giving an overview of the
savings/investment scenario in the country. The students would be required to
understand pick the niceties of the savings/ investment world comprising of the
following:
Module I
General Savings Schemes
Module II
Debt as an Asset Class
Module III
Equity Investments & Mutual Funds
Module IV
Real Estate as an Asset Class & Mortgage Financing
Module V
Commodity Market as an Asset Class
Module VI
Gold as an asset class
Module VII
Insurance (Life and General)
Module VIII
Direct Tax Advisory
Module IX
Financial Mathematics
Module X
Financial Planning & Risk Management for Individuals
Module XI
Popular Software for Financial Advisors
Module XII
Interpersonal; Communication & Presentation Skills
Module XIII
Field Program: Investor Education (Niveshak Interaction Program)
After 2 week's classes to cover Modules I through Module XII, students would be
required to undergo field training for a period of 21 weeks. They would be
required to identify and meet at 175 individuals; and take these individuals
through a presentation Financial.literacy@home , which is an elementary
financial literacy workshop. The aim of the field work is to determine i) the
impact of one-to-one knowledge sharing on the audience for overall savings &
investments; ii) impact of information and knowledge and investment into equity
market through direct and mutual funds route; iii) How does education program
affects Young earners for "home" buying plans; iv) Impact of Education on
Young parents for children's higher education; and v) How Family Education
programs help families for Medical Expenses. This presentation will be given to
these potential individuals at their respective homes or offices. Students will also
have to assist them in completing the basic requirements (such as PAN Card or
KYC No.) of investing in certain financial instruments. If after the personal visits
the individuals want to invest, students would arrange necessary help for them.
The successful completion of the Investor Education program would require
student to achieve at least the following:
Unique Characteristics Of Niveshak Interaction Program

The practical training is based on the application or use of the acquired
knowledge in Financial Planning. The unique feature of the program is that 6
weeks out of the total duration of 8 weeks, the students will be acquiring practical
experience.
The unique characteristics of NIP program are stated as under
Regular Mentoring

Experts (to be designated as 'Mentor') in the field of the financial and capital
market will be assisting the Students in identifying potential clients and meeting
them. The Mentor for each student will be identified right from the beginning of
the program who would not only be closely supervising the work of the Students
but also handholding them in all respects, when they would be undergoing the
program. After the first 2 weeks of pure academics, Students will be assisted by
their mentors in identifying and meeting the potential clients. Students will have
to deliver an elementary financial literacy workshop at their homes.
Learning & Skill Acquisition through Field Work

Students will have to deliver an elementary financial literacy workshop to the
potential clients at their respective homes (financial_literacy@home). The
students who want to make career in capital market will get a clear idea about the
basics of Financial Planning. Students will be readied in such a manner during
first four weeks that when the student will fix up a meeting with an individual, he
should be able to concentrate on the presentation rather than dealing with the fear
of meeting strangers. Students will also have to assist them in completing the
basic requirements invest in certain financial instruments (called "Know Your
Client (KYC)") and obtain the code number. The flow of the presentation during
the first meeting is so designed that the student would involve the following while
meeting the strangers
Introduction of self and objective of the meeting

Presentation on Financial Planning (Creating Financial Literacy @ home)
Financial inclusion completing the requirement to know your client as designed
by the savior, so that every person gets a unique number like a passport in the
investment world.
Completing the Risk Profile Questionaaire
Closing the introduction session by fixing up next meeting to provide a
scientifically worked out Risk Profile Classification to the Client.
After meeting the respective client, the student will fill a standard Questionnaire
Form of his own about the client feedback NIP Observation Form) and submit it
to the CAMS office. Depending upon the data deposited at CAMS in regards to
KYC's and Questionnaire forms the performance of all the students will be
reviewed accordingly. During subsequent meetings, the information will be
sought from the student for developing a customized financial plan (which would
be product/company neutral). Only if the student wants to carry the same to any
transaction, Mentor will assist the students for closure of such transaction.
Training to be a true Financial Advisor

Another unique feature of the Program is that the students will not be responsible
for any direct sales to the clients. They would be truly acting as Advisor to their
clients. In case the investor wants to invest, Mentor will help in enabling the

Investor to select right product and close the transaction so that the Investor gets
360 degree service.
Unique blend of Learning with Opportunity of Earning

When the investor chooses to invest through the student then the student will in
return be rewarded from the Niveshak Mpowered Private Limited purely in
accordance with the governing regime/prevailing regulations. This performance
based incentive will become a revenue for the Students and the target of this
course is so designed that if you are successful, you could earn a significant
money by way of fee. This would be a significant differentiating factor from other
Internship Programs and will provide every student an equal opportunity to earn
with his own efforts.
MENTORING; COUNSELLING & GUIDING

The Program heavily banks on enabling the students by providing required
counseling at every stage from the first day. Every student will be allocated a
Mentor. In addition to counseling by very experienced faculty of repute, the
Mentor will be frequently in direct touch with the Students to ensure that the
Students have no obstacle in the path of their successful completion of the
Program.
Mentor's interaction with his students will be frequently one on one. Initially
mentoring will be to prepare the student in such a manner, including through
mock drills that he is able to conduct his first meeting in a very professional and
objective manner. Should a need be felt, the Mentor may also go for few of such
first meetings. After the first contact meeting with prospects, it is the Mentor who
will drive the subsequent meetings for a logical end as per the interest of the
Niveshak. This would be with the purpose that at the end of the course, Students
is able to carry all meetings with Niveshaks at his own without necessity of
Mentor being present.
Technical Skills & Support

The program is designed in a manner that students get the best technological support
in a simple manner while recognizing that the students may not be having a
computer of their own. They would be encouraged to use computer labs of
teaching institutions or cyber cafes to take advantage of same. Technological
support will come in following manner:
 Student Enrolment Section : Where he can get all feedback about him and the
progress, he will also be able to access some of the standard documents from this
section.

 Prospecting Module : Key to successful completion lies in meeting quality

prospectus and taking the meetings to logical ends. This module will help them in
developing list of prospectus & carry till end.
 Transaction Platform : This would be a platform where the students can log in and
find all aspect of a transaction of his Niveshaks. Also each of his
client/Niveshak/recipient of financial literacy@home will be able to know status of
their investment, KYC etc.
Review And Feedback

A technology platform will be provided for students to access feedback of his
faculty and mentor online and also to receive feedback where does he stand vis-à-
vis his peers and also against scheduled pace of the Program.
Career Opportunities
Potential Employment Sector:

 Life Insurance Companies
 General Insurance Companies
 Banks
 Marketing Research Firm
 Regulatory Organization like SEBI, IRDA
 Multi product Financial Service Organization
like ICICI Direct, Reliance Money, Religare Finvest
 Mutual Fund Distributors
 Self Employed Financial Advisor
 Insurance Broking Organizations’
 Corporate Agents
 Knowledge Process Outsourcing Firms
 Business Process Outsourcing Firms
 Tax Practitioners & CAs
INVESTMENT BASICS

What is Investment?
Investment refers to a commitment of funds to one or more assets that will be held
over some future time period. It is important to understand the difference between
savings and investments. Anything not consumed today and saved for future use
can be considered as savings. Almost all of us save money. It is important to
channel these savings into productive investment avenues. For our purposes,
investment will mean a measurable asset retained in order to increase one's
personal wealth. A financial asset is one that generates income and contributes to
accumulation and growth of wealth over a period of time. The two elements in
investments are generation of income on a periodic basis and/or growth in value
over a period of time.
Why Invest?
We all work for money. It is equally important to ensure that money works for us. We
should inculcate the habit of reliance on a secondary source of income. We invest
to improve our future welfare. Anticipated future consumption may be by other
family members, such as education funds for children or by ourselves, possibly on
retirement when we are unable to work and produce for our daily needs.
Regardless of why we invest we should all seek to manage our wealth effectively,
obtaining the most from it. This includes protecting our assets from inflation,
taxes and other factors.
Investment Fundamentals
Some of the fundamental rules of investments are:
 Start Early
 Invest Regularly
 Ensure Higher Returns On Your Investments
How do We Invest ?
If we are making investment decisions today that will directly affect our future
wealth, it would make sense that we utilize a plan to help guide our decisions.
First, let's define financial planning.
Financial planning is the process of meeting one's life goals through the proper
management of one's finances. Life goals can include buying a home, saving for
child's education, or planning for retirement.
Financial planning provides direction and meaning to one's financial decisions. It
allows one to understand how each financial decision affects other areas of
finances. By viewing each financial decision as part of a whole, one can consider
its short and long-term effects on life goals. One can also adapt more easily to life
changes and feel more secure that goals are on track.
When should we start investing?

 Start Early
The younger you start, the more time compounding (Compounding is the concept of adding
accumulated interest back to the principal, so that interest is earned on interest from that
moment on. In other words, compounding refers to generating earnings from previous
earnings.) has to work for you, and the wealthier you can become. The next best thing to
starting early is starting now.
 Make Regular Investments
Don't be haphazard. Remain disciplined, and make saving a priority. Do whatever it takes to
maximize your contributions. Even small investments made regularly can surprise you
some years down the line.
 Be Patient
Do not touch your investments. Compounding only works if you allow your investment to
grow. The results will seem slow at first, but persevere. Most of the magic of
compounding returns comes at the very end.
Always remember that every day that your money stays invested is a day your
money is working hard for you, helping you ensure a financially secure future.
What are available investment options?

Following are the short-term and long-term financial investment options available for
the investors as per their risk profile.
Short-Term Investment
Savings Bank Account

 Use only for short-term (less than 30 days) surpluses Often the first banking product
people use, savings accounts offer low interest (4%-5% p.a.), making them only
marginally better than safe deposit lockers.
Money Market Funds (also known as liquid funds)

Offer better returns than savings account without compromising liquidity Money
market funds are a specialized form of mutual funds that invest in extremely
short-term fixed income instruments. Unlike most mutual funds, money market
funds are primarily oriented towards protecting your capital and then, aim to
maximize returns.
Money market funds usually yield better returns than savings accounts, but lower
than bank fixed deposits. With the flexibility to issue cheques from a money
market fund account now available, explore this option before putting your money
in a savings account.
Money market funds or liquid funds invest in debt securities with less than one year
to maturity such as treasury bills, commercial papers and certificate of deposits.
Since liquid funds have very short-term maturity, the risk of NAV fluctuation is low.
Liquid funds provide safety of principal and liquidity
Bank Fixed Deposits(Bank FD’s)

For investors with low risk appetite, best for 6-12 months investment period
Also referred to as term deposits, this product would be offered by all banks.
Minimum investment period for bank FDs is 30 days.
The ideal investment time for bank FDs is 6 to 12 months as normally interest on
bank less than 6 months bank FDs is likely to be lower than money market fund
returns.
It is important to plan your investment time frame while investing in this instrument
because early withdrawls typically carry a penalty.
Long Term Investment
Post Office Saving Schemes(POSS)

Low risk and no TDS
POSS are popular because they typically yield a higher return than bank FDs. The
monthly income plan could suit you if you are a retired individual or have regular
income needs.
Besides the low (Government) risk, the fact that there is no tax deducted at source
(TDS) in a POSS is amongst the key attractive features.
The Post Office offers various schemes that include National Savings Certificates
(NSC), National Savings Scheme(NSS), Kisan Vikas Patra, Monthly Income
Scheme and Recurring Deposit Scheme.
Public Provident Fund(PPF)

Best Fixed Income investment for high tax payers
PPF is a very attractive fixed income investment option for small investors primarily
because of
 An 11% post-tax return - effective pre-tax rate of 15.7% assuming a 30% tax rate
 A tax-rebate - deduction of 20% of the amount invested from your tax liability for the
year, subject to a maximum Rs60,000 for a tax rebate
 Low risk - risk attached is Government risk
So, what's the catch? Lack of liquidity is a big negative. You can withdraw your
investment made in Year 1 only in Year 7 (although there are some loan options
that begin earlier).
If you are willing to live with poor liquidity, you should invest as much as you
can in this scheme before looking for other fixed income investment options.
Company Fixed Deposits(FD’s)

Option to maximize returns within a fixed income portfolio
FDs are instruments used by companies to borrow from small investors. Typically
FDs are open throughout the year. Invest in FDs only if you have surplus funds
for more than 12 months. Select your investment period carefully as most FDs
are not encashable prior to their maturity.
Just as in any other instrument, risk is an embedded feature of FDs, more so because
it is not mandatory for non-finance companies to get a credit rating for this
instrument.
Investors should consciously (either though a credit rating or through an expert)

select the companies they invest in. Quite a few small investors have lost their
life's savings by investing in FDs issued by companies that have run into financial
problems.

Bond & Debentures

Option for large investments or to avail of some capital gains tax rebates
Besides company FDs, bonds and debentures are the other fixed-income
instruments issued by companies. As a result of an illiquid secondary market and
a lack-lustre primary market, investment in these instruments is largely skewed
towards issues from financial institutions.
While you might find some high-yielding options in the secondary market, if you
do not want the problems associated with bad deliveries and the transfer process
or you want to invest a large sum of money, the primary market is the better
option.
Mutual Funds
Unless you rate high on our Investment IQ Test, use mutual funds as a vehicle to
invest
Have you ever made an investment in partnership with someone else? Well,
mutual funds work on more or less the same principles. Investors pool together
their money to buy stocks, bonds, or any other investments. Investing through
mutual funds allows an investor to –
 Avail the services of a professional money manager (who manages the mutual fund)
 Access a diversified portfolio despite making a limited investment
Our primer Investing in Mutual Funds should educate you a lot more on the benefits
of investing in mutual funds and strategies you could employ.
Life Insurance Policies

Don’t buy life insurance solely as a instrument.
Life insurance premiums, depending upon the policy selected, include the costs of –
 Death-benefit coverage
 Built-in investment returns (average 8.0% to 9.5% post-tax)
 significant overheads, including commissions.
This implies that if you buy insurance solely as an investment, you are incurring
costs that you would not incur in alternate investment options.
It is, however, important to insure your life if your financial needs and profile so
require. Use our Are You Adequately Insured planning tool to find out if you
need life insurance,& if yes,how much.
Equity Shares:
Maximum returns over the long-term, invest funds you do not need for at least five
years
There are two ways in which you can invest in equities-
Through the secondary market (by buying shares that are listed on the stock
exchanges)
Through the primary market (by applying for shares that are offered to the public)
Over the long term, equity shares have offered the maximum return to investors. As
an investment option, investing in equity shares is also perceived to carry a high
level of risk.
Investment Process
Nobody plans to fail but many fail to plan. It is important for the investor to realize
that planning is very important. He has to take the client through the systematic
process of financial planning outlined below. The financial
planning process consists of six steps that help the
investor/client take a "big picture" look at where he is
financially. Using these six steps, the investor can work out
where he is now, what he may need in the future and what he
must do to reach his goals. These six steps are:
 Establishing & Defining the Client-Partner Relationship

The financial planner should clearly explain or document the services to be provided to you
and define both his and your responsibilities. The planner should explain fully how he
will be paid and by whom. You and the planner should agree on how long the
professional relationship should last & on how decisions will be made.
 Gathering Client Data,Including Goals

The financial planner should ask for information about your financial situation. You and the
planner should mutually define your personal and financial goals, understand your time
frame for results and discuss, if relevant, how you feel about risk. The financial planner
should gather all the necessary documents before giving you the advice you need.
 Analyzing & Evaluating Your Financial Status

The financial planner should analyze your information to assess your current situation and
determine what you must do to meet your goals. Depending on what services you have
asked for, this could include analyzing your assets, liabilities and cash flow, current
insurance coverage,investments or tax strategies.
 Developing and presenting financial planning recommendations and/or

alternatives.
The financial planner should offer financial planning recommendations that address
your goals, based on the information you provide. The planner should go over the
recommendations with you to help you understand them so that you can make
informed decisions. The planner should also listen to your concerns and revise the
recommendations as appropriate.
 Implementing the financial planning recommendations

You and the planner should agree on how the recommendations will be carried out. The
planner may carry out the recommendations or serve as your "coach," coordinating the
whole process with you and other professionals such as attorneys or stockbrokers.
 Monitoring the financial planning recommendations

You and the planner should agree on who will monitor your progress towards your goals. If
the planner is in charge of the process, she should report to you periodically to review
your situation and adjust the recommendations, if needed, as your life changes.
PROJECT OFFLINE & ONLINE

The crux of the project was to get an understanding of the mindset of investors & do a
risk profiling of investors thereby identifying gap between what investors need &
what mutual fund’s offer. For this,n-fap training was given for 3 day’s class in
which a brief overview about Mutual Fund, Life Insurance, Saving Schemes,
Income Tax Advisory was given.It was followed by 3 days study of course
material & practice of a flipchart presentation provided by Niveshak.A target of
60 potential clients in the field training for a period of 6 weeks.Under the
guidance of mentors from IDBI AMC,we had to deliver an elimentary financial
literacy workshop to the potential clients at their homes or offices. Then a
Investor Profile Questionnaire & a NIP observation form was filled for Client
Prospecting & Risk Profiling. The same information was then uploaded online on
www.iniveshak.com. for which every student was given a user id & a password.
Procedure of online uploading the client’s information:
Open http://www.iniveshak.com/Niveshak & Login with user id & password

Click on Accounts->Client Prospecting
Add new profile by clicking on Add

Feed all the mandatory details(Marked in red) & click on save.

Feed the client id so generated in client i.d.& click on locate.Click on Edit

Fill all the details from Investor Profile Questionnaire in top diff. tabs (i.e. Family
info, Joint holder, Goals etc.) & click on submit.
Click OK on the popup window stating client details updated successfully.

Goto Accounts->Risk Profile
Key in the Client id/Client Name & click on Locate
Fill in all the details from Investor Profile Questionnaire about Risk Profile of client
& click on submit.A msg in red at top reads client risk profile details updated &
generates the clients risk category at bottom in red.

Goto Accounts->NIP Observation’s & key in cliend id/client name & click on locate
Add the details from NIP observation form & click on submit
New details about the client can be edited by

Accounts->Client Prospecting->Client id->Locate->Edit->Submit

Accounts->Risk Profile->Client id/Client Name->Locate->Submit
Accounts->NIP Observations->Client id/Client Name->Locate->Submit


CONCLUSION
 CONCLUSION
 FINDINGS
 SUGGESTION








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Niveshak Mpowered Pvt.

Under the Guidance of:

Mr. Sanjay Sinha (Faculty Guide)

Mr. Anubhav Talwar (Company Guide)

For the Period

14th May 2010 to 14th July 2010

Pawan Kumar Soni

• THE GROUP COMPANIES :

 SPA CAPITAL SERVICE LTD

• PROGRAM STRUCTURE & CONTENTS

• NIVESHAK FINANCIAL ADVISORY PROGRAM PLUS (N-

• WHY DO WE NEED INVESTMENT

• WHEN SHOULD WE START INVESTING?

• WHAT ARE AVAILABLE INVESTMENT OPTIONS?

Pawan Kumar Soni-ITM Business School 2009-2011

Mr. Sandeep Parwal, B.Com (Hons), FCA,

Pawan Kumar Soni-ITM Business School 2009-2011

Currently CAMS provides this comprehensive package of services to 18 Indian

Mr. Shanks is also a Director at Acsys Software., which is a leading Technology

The Group Companies

SPA Capital Services Ltd. is a flagship company of SPA Group, engaged in

Acsys Software (India) Pvt. Ltd

In addition, Acsys has a large pool of in-house expertise to continually develop

 It operates in a dynamic environment dictated by enormous growth in the Indian

 Multi-currency functionality to include Euro compliancy.

Acsys Software (India) Pvt Ltd.

Pawan Kumar Soni-ITM Business School 2009-2011

This program is an eight - week intensive introduction to the principles of

 Polishing your communication and presentation skills

Niveshak Financial Advisory Program (NFAP)

Niveshak Interaction Program - Objectives

Program Structure & Contents

Duration of the Program :

Pawan Kumar Soni-ITM Business School 2009-2011

The first 3 days would be spent on giving an overview of the savings/investment

Module II: Life Insurance

Module III: Savings Schemes

Module IV: Income Tax Advisory

Module V:Investor Education (Niveshak Investor Program)

Pawan Kumar Soni-ITM Business School 2009-2011

Pawan Kumar Soni-ITM Business School 2009-2011

Unique Characteristics of Niveshak Interaction Program

The practical training is based on the application or use of the

The unique characteristics of NIP program are as under:-

Learning & Skill Acquisition through Field Work

Training to be a true Financial Advisor

Unique blend of Learning with Opportunity of Earning

Technological skills enhancement and support

Regular Review & Feedback

Pawan Kumar Soni-ITM Business School 2009-2011

This program seeks to develop a vocational skill by providing

Program Structure & Contents

Unique Characteristics Of Niveshak Interaction Program

The unique characteristics of NIP program are stated as under

Pawan Kumar Soni-ITM Business School 2009-2011

Learning & Skill Acquisition through Field Work

Introduction of self and objective of the meeting

Training to be a true Financial Advisor