FRONT PAGE

ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me and advised me
throughout the course of my internship. I am sincerely grateful to them for sharing their truthful and
illuminating views on several issues related to the project.

I am especially thankful to Mr. Ashish Abhishek (Regional Head (North), Edelweiss Broking
Limited, New Delhi) for giving me the opportunity to do my 2 months summer internship in their
esteemed organization. I am grateful to my mentor Mr. Mahendra Tiwari for her active co-operation
and help for the completion of my project.

I would also like to thank Dr. Ramandeep Kaur , Professor, iper, my faculty guide, who has been a
constant source of help and inspiration to me and for her guidance without which the work could not
have been possible. I would also like to express my warm thanks to Institution of Professional
Research.
DECLARATION
CERTIFICATE BY ORGANISATION
CERTIFICATE BY INSTITUTION (GUIDE)
 TABLE OF CONTENT

Table no. Title Page no.

1 EXECUTIVE SUMMARY

2 OVERVIEW OF THE SECTOR

3 INTRODUCTION OF THE COMPANY

4 JOB DESCRIPTION

5 FIELD WORK

6 LEARNINGS IN THE INTERNSHIP

7 CONTRIBUTION AND ACHIEVEMENT

8 REFERNENCES

CHAPTER – 1

EXECUTIVE SUMMARY

1.2 Industry: Financial Services

The economic services provided by the finance industry are called financial services. They include
businesses such as money management via banks, foreign exchange services, investment services,
insurance, financial exports and other financial services.

In India, rising incomes are driving the demand for various financial services to cater the growing
need of diverse customer base that fall in different income brackets. India benefits from cross-
utilization of already existent channels to expand reach of financial services.

As far as government support is concerned, it has increased the limit of foreign direct investments
and approved new banking licenses. Also, credit, insurance and investment penetration has been on a
rise in rural areas as well. Moreover, wealth management sector has witnessed growing HNWI
participation.

2.2 Summary

By doing this review of literature, the first paper concluded that investors chase performance, and
issuers prefer to issue notes whose underlying risks are easier for them to hedge. The second paper
suggests that the uncertainty in the markets motivates many market participants to use with
increasing frequency the structured financial products. The third paper studied that the structured
products are able to give a tough competition to the alternate investment instruments. In the fourth
paper, the study contributes to the debate on the regulation of credit rating agencies as our findings
suggest that ratings may have an effective influence on decisions made by investors at the time
structure finance products are issued. As per the fifth paper, the investors purchase 8% more
structured products, on average, when the suitability is not checked. The effect of suitability checks
is more pronounced for less financially literate investors. The sixth paper suggests that the investors
make poor choices when choosing the underlying assets for their structured products, so the findings
suggest that retail investors may require some form of protection to avoid incurring these losses.
 CHAPTER – 2

OVERVIEW OF THE SECTOR

India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of
existing financial services firms and new entities entering the market. The sector comprises
commercial banks, insurance companies, non-banking financial companies, co-operatives, pension
funds, mutual funds and other smaller financial entities. The banking regulator has allowed new
entities such as payments banks to be created recently thereby adding to the types of entities
operating in the sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by the financial
system.
The Government of India has introduced several reforms to liberalize, regulate and enhance this
industry. The Government and Reserve Bank of India (RBI) have taken various measures to
facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These
measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing
guideline to banks regarding collateral requirements and setting up a Micro Units Development and
Refinance Agency (MUDRA). With a combined push by both government and private sector, India
is undoubtedly one of the world's most vibrant capital markets. In 2017,a new portal named 'Udyami
Mitra' has been launched by the Small Industries Development Bank of India (SIDBI) with the aim
of improving credit availability to Micro, Small and Medium Enterprises' (MSMEs) in the country.
India has scored a perfect 10 in protecting shareholders' rights on the back of reforms implemented
by Securities and Exchange Board of India (SEBI).

Market Size
The Mutual Fund (MF) industry in India has seen rapid growth in Assets under Management
(AUM). Total AUM of the industry stood at Rs 23.80 trillion (US$ 340.48 billion) between April
2018-February 2019. At the same time the number of Mutual fund (MF) equity portfolios reached a
high of 74.6 million as of June 2018.
Another crucial component of India’s financial industry is the insurance industry. The insurance
industry has been expanding at a fast pace. The total first year premium of life insurance companies
reached Rs 214,673crore (US$ 30.72 billion) during FY19.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed
rapid expansion. The total amount of Initial Public Offerings (IPO) increased to US$ 1.2 billion
raised from 37 between April– June2018.
Over the past few years India has witnessed a huge increase in Mergers and Acquisition (M&A)
activity. In H12018, 74 deals of acquisition took place in financial sector. The total value of such
transactions was US$ 4.166 billion.
Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with
Ebix Inc to build a robust insurance distribution network in the country through a new distribution
exchange platform.

Investments/Developments
  Investments by Foreign Portfolio Investors (FPIs) in Indian capital markets have reached Rs
6,310crore (US$ 899.12 million) up to November 22, 2018.
 As of October 2018, the Financial Inclusion Lab has selected 11 fintech innovators with an
investment of US$ 9.5 million promoted by the IIM- Ahmedabad's Bharat Inclusion Initiative
(BII) along with JP Morgan, Michael and Susan Dell Foundation, and the Bill and Melinda
Gates Foundation.
 The private equity and venture capital (PE/VC) investments reached US$ 25.20 billion
between January to October 2018.

Government Initiatives

 In December, 2018, Securities and Exchange Board of India (SEBI) proposed direct overseas
listing of Indian companies and other regulatory changes.
 Bombay Stock Exchange (BSE) introduced weekly futures and options contracts on Sensex
50 index from October 26, 2018.
 In September 2018, SEBI asked for recommendations to strengthen rules which will enhance
the overall governance standards for issuers, intermediaries or infrastructure providers in the
financial market.
 The Government of India launched India Post Payments Bank (IPPB), to provide every
district with one branch which will help increase rural penetration. As of August 2018, two
branches out of 650 branches are already operational.

Road Ahead

 India is today one of the most vibrant global economies, on the back of robust banking and
insurance sectors. The relaxation of foreign investment rules has received a positive response
from the insurance sector, with many companies announcing plans to increase their stakes in
joint ventures with Indian companies. Over the coming quarters there could be a series of
joint venture deals between global insurance giants and local players.
 The Association of Mutual Funds in India (AMFI) is targeting nearly fivefold growth in
assets under management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a more than
three times growth in investor accounts to 130 million by 2025.
 India's mobile wallet industry is estimated to grow at a Compound Annual Growth Rate
(CAGR) of 150 per cent to reach US$ 4.4 billion by 2022 while mobile wallet transactions to
touch Rs 32 trillion (USD $ 492.6 billion) by 2022.

Exchange Rate Used: INR 1 = US$ 0.0159 as on March 31, 2019.

 CHAPTER-3

INTRODUCTION OF THE COMPANY

Company: Edelweiss Broking Limited

The Edelweiss Broking Limited is a financial services company based in Mumbai. It is a subsidiary
of The Edelweiss Group that came into existence on 7 February, 2008. The company provides a
broad range of financial products and services to a diversified client base. The Edelweiss Group
mainly covers three segments that are: credit, franchise & advisory and insurance. The group covers
both retails and ‘high net-worth individual’ clients. The company has a strong client base of over 1
million plus across various verticals that it operates in. It has more than 11 thousand employees
across 13 different lines of business, facilitated by 454 offices in 200 locations including 8
international offices.

1.4 Our Domain: Personal Wealth Advisory

It includes providing a wide range of financial products to corporations, institutions and individuals.
The company has various in-house products, mainly known as structured products. But, it also
recommends third party products to the clients based on their performance in the markets. Some of
these products recommended as investment options are:

1. Equity
2. Derivatives
3. Currencies
4. Mutual Funds
5. Gold ETFs
 6. IPOs

1.5 Structured Products

The world financial market for the recent 10 years has been subjected to considerable repeated
changes on the strength of financial crises, major companies’ defaults, economic system instability,
etc. As of today, each economic entity of the financial market performing its activities uses
traditional financial instruments and their various combinations. It implies new risks and need of
financial market participants to hedge that risk by use of the financial instruments. However, in case
when faced with risk, the available financial instruments cannot secure the investments in full, i.e.
they do not meet the requirements of the set target.

As a result of which, the structured financial products have appeared as a result of the objection of
protection from the risk related with currency, loans, securities and active innovative activities of
investment banks in the markets of securities, product, foreign-exchange, credit and other financial
markets.

The structured financial product represents a complex financial product which is the combination of
available financial instruments and complies with the requirements of investors on managing and
regulating the risks and as well facilitates the realization of innovative reforms in financial markets.

Realization of the structured financial products is performed via particular mechanism of

interrelation between the participants of various financial markets. It is a financial service which
provides value to its users and creates demand and supply. It means that the structured financial
product can be sold as a services related to particular models of interrelation between the participants
of various financial markets by means of exchanging financial instruments, certificates of
indebtedness, risks and monetary means, etc. with each other.

1.6 Structured products offered by the company

All Weather Equity Plus (AWE+) – The underlying asset here is NIFTY. This structured product
is index-linked. It has been rated PP-MLD-AA by CARE. It is listed on SEBI. It has 100% collateral
against investment amount with SBI cap and corporate guarantee from Edelweiss Financial Services
Limited. It has tenure of 3.5 years. Both entry and exit levels are calculated by taking an average of
NIFTY level for 6 months. The returns received on principal amount are flat 16.68% on a rise of
2.5%-4.99%, 33.35% on a rise of 5% -7.49%, 50% on a rise of 7.50%-49.99% and 100% of Nifty
returns on 50% and above.

Fixed Income Debentures – It is a debt-linked structured product. This is a listed instrument with
SEBI. It has AA rating by both CRISIL and ICRA. It has 100% collateral against investment amount
with SBI cap and corporate guarantee from Edelweiss Financial Services Limited. The product gets
charged 10% long term capital gains tax on interest income. Also, TDS is not deducted at source.
The interest earned ranges from 9.2 to 10.2 percent depending upon the tenure of investment. There
are 3 tenures: 2 years 7 months, 3 years 5 months and 7 years 4 months. Post-tax interest ranges
from 8.72% to 9.26% and the ticket size starts from 25 lakhs and above. The underlying asset here is
non-convertible debenture.

Large Cap – This structured product is minimum PP-MLD-AA rated. It is an equity-linked product.
It has a basket of 6 stocks namely HDFC bank, Kotak Bank, Ril, Britannia, Maruti Suzuki and TCS.
It has 2 scenarios. In the first scenario, there is no capital protection but in case the basket rises,
client will get a return of 125% on the upside. However, in the second scenario, there is capital
protection along with a return of 100% on basket upside. It has 100% collateral against investment
amount with SBI cap and corporate guarantee from Edelweiss Financial Services Limited. The
product gets charged 10% long term capital gains tax on interest income. Also, TDS is not deducted
at source. The ticket size starts from 26 lakhs. The minimum tenure of investment is 36 months and
the maximum being 120 months.

ANALYSIS OF LARGE CAP STRUCTURED PRODUCT

In Edelweiss Large Cap Structured Product, out of top fifty companies listed on National Stock
Exchange, it selected the basket of top performing 6 stocks which are HDFC Bank, Kotak Bank,
Reliance Industries Ltd, TCS, Maruti Suzuki and Britannia.
 Name of the
Holding Period Return Yearly Risk
In stock
Normal LN Normal LN
NSE 12% 8% 0.37% 0.369%
HDFC Bank 35% 27% 0.60% 0.59%
Kotak Bank 34% 20% 1.15% 1.16%
Reliance
15% 6% 0.83% 0.83%
Industries Ltd.
Britannia 58% 50% 0.53% 0.52%
Maruti Suzuki 40% 31% 0.73% 0.73%
Tata
Consultancy 40% 30% 0.76% 0.76%
Services

order to calculate the return on these stocks three methods have been used:

1. Normal Rate of Return: This can be calculated by formula - (P1-P0)/P0.

2. LN Rate of Return: This can be calculated by formula - P1/P0.

Since, Normal Rate of Return does not consider the interim volatility of the stock market. Thus, LN
(Log Natural) Return has been calculated in order to have the normalized rate of return.

From the above analysis, it has been observed that all the stocks have performed outstanding as
compared to the market returns i.e. NSE and with the minimal yearly risk.

1.7 Industry Players: Competitors

There are multiple companies that have been operating in similar domains and thus, competing in
terms of products that they provide to the clients.

1. IIFL
2. Motilal Oswal
3. Sharekhan
4. ASK
5. Karvy
 6. Aditya Birla
7. Angel Broking
8. Alchemy
9. Kotak Mahindra Bank
10. Zerodha

1.8 Client Base

These products are used as an investment option to cater different segment of clients, based on their
portfolio size. Different companies use different criterion to differentiate between these segments.
But as per Edelweiss Wealth Management Services, these segments can be described as follows:

Retail Clients – Retail clients can be defined as Individuals who have a portfolio size of less than 25
lakhs.

High Net-worth Individuals (HNI/HNWI)- High Net-worth Individuals can be defined as

Individuals who have a portfolio size of more than 25 lakhs and less than 25 crores.

Ultra High Net-worth Individuals (UHNI/ UHNWI) – Ultra High Net-worth Individuals can be
defined as people who have a portfolio size of more than 25 crores.

CHAPTER-4

JOB DESCRIPTION
 CHAPTER-5

FIELD WORK

Field Work

The field work for the research was conducted for 20 days. It included going to different clients
of Edelweiss Personal Wealth Management Services and understanding their requirements.
Doing literature survey for further insights and preparing a questionnaire. The various means
used were Google form link.

As a part of this research we went for meeting with different clients in Delhi NCR region. This
was done to understand the different expectations of clients at the time of making investment
decision and their understanding of structured products.

The target audience for the questionnaire consisted of both retail and HNI clients but mostly,
HNI clients. The research includes responses of respondents who come from wealthy families or
are on top level positions in different organizations, renowned doctors and businessman. The
responses were collected via Google forms with the help of all the interns present at Edelweiss
Wealth Management Services. Each respondent was contacted personally by the personal wealth
advisory team of the organization and were briefed about the survey which helped them
understand the different questions.

CHAPTER-6

LEARNINGS IN THE INTERNSHIP

Terminologies/Specification/ Forms/ Formats/Legal Formalities etc.

1 NCD(selling, form filling,)

PMS,WRM,PWA
,UTI,GIC,NFO,OTC
,MTM,NSCCL,G.Sec,
 CRISIL,FNO,ICRA, Demate Account

2 Learned how to see the nifty ,sensex , how election and parties effect the economy

3 mutual fund edelweiss give more than five fund to invest in MF

Basics is EQUITY , DEBT, BALANCE And also tax saver mutual fund. Start for an amount as low as Rs1000
SIP is a systematic investment plan offer by EDELWEISS BROKING LTD. Start for an amount as low as Rs 500
Edelweiss group offer individual investment in stocks and also have trading call advisor, it has a manual portfolio in
stocks

4 Twin Win

5 Demat account

6 PROFILER(FORM)

Products/Services/ Concepts

1 NCD (
non convertible debenture) type of fixed deposit but secure in nature fully guarnted of principle amount the company
opens as to expand the business or repay the loanwith the tenure of 2yr 3yr 5yr 10yr with interest of 9.90% , 10.20% ,
10.40% with monthly annually and cumulative.
Better than FDs as there is no lockin period and these are tradable in nature.

2 All weather equities, twin win, fixed income debentures.

1-3 mutual fund edelweiss give more than five fund to invest in MF
Basics is EQUITY , DEBT, BALANCE
And also tax saver mutual fund.
2-SIP is a systematic investment plan offer by EDELWEISS BROKING LTD. A Systematic Investment Plan (SIP) is a
disciplined approach to invest in mutual funds wherein you commit to invest a fixed amount on a periodical basis. You
can choose the amount and frequency of the investment
Edelweiss Broking Limited is an Indian Financial services company The company is registered with National Stock
Exchange of India, Bombay Stock Exchange and MCX Stock Exchange
Edelweiss group offer individual investment in stocks and also have trading call advisor, it has a manual portfolio in
stocks.
4 Portfolio management system is a FD beater min investment 25 lacks with tenure of 3year 6months and benchmark
is nifty

5 To know about the customer as they are not dealing

Went to Nehru place, greater kailash, barakhamba KG marg.

6 Same work as previous week
 Learning’s during the Week

Week / Contributio
Training Received Task & activities Terminologies/Specification/
(Reporting terms of
during the week during the week Forms/ Formats/Legal Products/Services/ Concepts
Dates) Performan
Formalities etc.

Ncd
NCD (
non convertible debenture) type of
fixed deposit but secure in nature Had 3 meet
Grooming, NCD(selling, form filling,) fully guarnted of principle amount within a 10 d
Soft calls to the
mutual fund, PMS,WRM,PWA the company opens as to expand the one of them I
customer,Pitching the
1 derivatives, ,UTI,GIC,NFO,OTC business or repay the loanwith the along with
customer by taking an
19/5/19 NCD, how to call ,MTM,NSCCL,G.Sec, tenure of 2yr 3yr 5yr 10yr with mentor and
appointment and fixing
and contact with CRISIL,FNO,ICRA, Demate interest of 9.90% , 10.20% , 10.40% was successf
the meeting,data entry
the customer Account with monthly annually and got 2lacs of N
cumulative. from that cl
Better than FDs as there is no lockin
period and these are tradable in
nature.
Short idea given Pitching the customer Set 2 meeting
by sir how to pitch for the structure Learned how to see the nifty the structure
2 All weather equities, twin win, fixed
the customer,how products of the ,sensex , how election and products by c
26/5/19 income debentures.
to understand the company and getting parties effect the economy. on the data ba
market situation. an appointment on it. given by com
3-mutual fund edelweiss give more
than five fund to invest in MF
Basics is EQUITY , DEBT,
BALANCE
And also tax saver mutual fund.
mutual fund edelweiss give
4-SIP is a systematic investment
more than five fund to invest
plan offer by EDELWEISS
in MF
BROKING LTD. A Systematic
Basics is EQUITY , DEBT,
Investment Plan (SIP) is a
BALANCE And also tax
disciplined approach to invest in
saver mutual fund. Start for
mutual funds wherein you commit
Pitching the customer an amount as low as Rs1000
Learned about to invest a fixed amount on a 2-3 clients are
for the structure SIP is a systematic
STOCKS, periodical basis. You can choose the interested for
3 2/06/19 products of the investment plan offer by
MUTUAL FUND amount and frequency of the meeting in the
company and getting EDELWEISS BROKING LTD.
SIP investment weekend
an appointment on it. Start for an amount as low as
Edelweiss Broking Limited is an
Rs 500
Indian Financial services company
Edelweiss group offer
The company is registered with
individual investment in
National Stock Exchange of India,
stocks and also have trading
Bombay Stock Exchange and MCX
call advisor, it has a manual
Stock Exchange
portfolio in stocks
Edelweiss group offer individual
investment in stocks and also have
trading call advisor, it has a manual
portfolio in stocks.

Soft calls to the

Portfolio management system is a
customer, Pitching the
Training received FD beater min investment 25 lacks
4 9/06/19 customer by taking an Twin Win 3 meetings fix
on PMS with tenure of 3year 6months and
appointment and fixing
benchmark is nifty
the meeting,data entry
 3 follow ups 1
5
No training received Soft calls and data entry Demat account Large cap meeting set in
16/06/19
I also went
(field work) Ask to get 1 profiler filled
profilers filled by existing To know about the customer as they client and 1 me
6 23/6/19 No Training received Form called as profiler
clients. And soft calls to are not dealing was set with th
set meetings. client
(field work) Ask to get
Same work as previous week 1profiler filled
No training profilers filled by existing
7 30/6/19 Form called as profiler. Went to Nehru place, greater client and we
received clients. And soft calls to
kailash, barakhamba KG marg. 20 client.
set meetings.
 CHAPTER-7

CONTRIBUTION AND ACHIEVEMENT

1. Had 3 meetings within a 10 days in one of them I went along with my mentor and that was successful
we got 2lacs of NCD from that client

2. Set 2 meetings on the structure products by calling on the data base given by company

3. 2-3 clients are interested for the meeting in the weekend

4. 3 meetings fixed

5. 3 follow ups 1 meeting set in which I also went

6. 1 profiler filled by client and 1 meeting was set with the client

7. 1profiler filled by client and went to 20 client.

Chapter – 6

FIVE BEST PRACTICES OF EDELWEISS BROKING LIMITED

Edelweiss Broking Limited follows multiple innovative practices that I could observe in my
internship tenure. Some of those practices are as follows:

a) Regular Training Sessions – This company has a separate training department for the
employees in order to address the problems that they face and keep providing them regular
training sessions on how they can solve those problems. Also, these training sessions revolve
around passing on the product knowledge and solving employees’ doubts, if any.
b) Weekly ConCalls – The company keeps conducting conference calls for its employees PAN
India. In these conference calls, every team is given equal opportunity to present their issues
and doubts in front of the top management. Also, during my tenure in the company, interns
were made a part of this concall several times.
c) Monthly recreational activities – The company organizes various recreational activity
sessions such a Mango eating competition, Yoga session, Interpersonal Skills Development
Sessions, to name a few.
d) Pantry – The company has a pantry where employees can take their food, get it heated up in
Company’s microwave in cutlery provided by the company itself, with the help of pantry
boys. Also, there are multiple fridges in case anyone wants to put anything in it. Also, one
can get basic pickles, sauces and masalas in that pantry.
e) Assignment of Mentors – Every intern gets assigned to an individual mentor who guides
them throughout their internships. They are responsible for training the interns for products
knowledge and how to interact with clients.

REFERENCES
 https://www.investopedia.com
 https://www.streetdirectory.com
 https://www.edelweiss.in/
 https://www.edelweissfin.com/
 https://web.a.ebscohost.com
 https://www.cambridge.org
 https://www.owler.com/company/edelweissfin
 https://www.ibef.org/industry/financial-services-india.aspx