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ACKNOWLEDGEMENT Being a humble persons and cant be able to complete this presentation without the help and grace of almighty Allah. I would like to acknowledge the efforts of our parents they made for our education and it is their continuous encouragement and support that we are able to complete our presentation successfully. We would like to acknowledge the efforts of our teacher Sir Nosherwan who provides us the opportunity to explore the nuts and bolts of Cost accounting. Only that education deserves emphatically to be termed cultivation of the mind which teaches young people how to begin to think. (Mary Wollstonecraft)
Table of Contents
Introduction. 1. Project management is the best method 2. what does a project manager do ? 3. what is the Methodology ? 4. What is a project ? 5. what is total Quality Management ? 6. What are the thecneaques?
7. What are tools of project mnagement ?
8. Case study 9. Conclusion 10. 11. 12. Pert Chart Gantt Chart References
Tax Exposure
Interest and capital gains income from most investments held by U.S bank are taxed as ordinary income for tax purpose, just are as the wages and saleries earend by U.S. citizens because of thier relatively high tax exposure,banks are more interested in the after after tax rate of return on loans and securities than in thier before tax return. This situation contrast with such situation as credit unions and mutual funds which are generally tax exempt.
Before tax gross yield (1-firms marginal income tax rate)=after tax gross yield. The impact of changes in tax laws.tax reformed in united states has a major impact on the relative attractivness of state and local government bonds as investmnemts for bank. But their share of the municipal market has fallen substationally since that time due to declineing tax advantange. lower corporate tax rates fewer qualified tax exempt securities
Net after tax return on muncipals(in percent) [Nominal return on muncipals after tax(in percents) - Interst expense incured in aquiring the muncipals(in percent)] + Tax advantage of a qualified bond.
U.s banks generally are allowed to buy only investment grade securities,rated atleast Baa or BBB,in order to protect depositors against successive risk.
Buisness Risk
Finicial institutions of all sizes face significant risk that the econamy of the market area they serve may turn down,with following sales and rising unemployment.these adverse devolpments,often called buisness risk,can be refkescted quickly in the laon portfolio, where delinquent loans may rise as borrowes strugle to generate enough cash flow to pay the lender.b/c buisness risk is always present many financial institution rely heavily on thier security portfolios to ofset the impact of this form of risk on thier loan portfolio.
Liquidity Risk
Financial institutions must be ever mindfull of the possibilty they will be required to sell investment securities in advance of thier maturity due to liqiudity needs and be subjected to liquidity risk.thus, a key issue that a portfolio mangaer must face in sel;ecting a security for investment purposes is the breath and depth of its re-sale market.
Call Risk
Many corporations and some governments that issue securities reserve the rites to call in those instrumnet in advance of maturity and pay them off.b/c of such calls usually take place when market interst rates have declined(and the borrower can issue new securities bearing lower interst costs).the financial firm in cal-able securities runs the risk of an earning loss.b/c it must re-invest its recoverd funds at lower interst rates.
Pre-paymnet Risk
A form of risk specific to asset backed securites is pre-payment risk. This form of risk arises b/c the realised interst and principal payment(cash flow) from a pool of securitesed loan,such as GNMA or FNMA pass through,colaterlised morgage obligations,(CMOs) or securitised packages of auto or credit card loans,may be quite differnt from the cash flows expected orignally.indeed,having to price the pre-paymnet option associated with asset bagged securities distinguishes these investments from any other investment.
Inflation Risk
Investing institutions must be alter to the possibilty that the purchasing power of interst of income and re-paid principal from a security or loan will be eroded by rising prices for goods and servies.inflation can also erode the value of the stalk holders investment in a financial firm its net worth.some protection against inflation risk is provided by short term securities and those with variable interst rate, which usually grant the investments officer greater flexiblity in responding to any flare up in inflationary pressures. Pledging requirment
Depositary institutions in the united states cannot accept deposits from federal,state,and local governments unless they post co-lateral exceptable to these governmental units in order to safe guard public funds.state and local governments deposit pledging requiermnts differ widely from state to state,though most allow a combination of federal and muncipal securities to meet government pledging requirements.sometime the government owning the deposit requires that the plegded securities be placed with the trusty not affiliated with the institution receiving the deposit.
WHAT IS INVESTMENT
There is a clear difference between saving and investment
Savings Savings are generally funds that you set aside to meet your future
needs. These could be taking your family for a small holiday or buying an electronic item. Another important feature of savings is that these can be accessed relatively quickly. The most universal way of saving is in to a bank account ('savings' account) where the money is available to you on demand. Investments Investments, on the other hand, is what helps you meet your longer term needs and larger financial goals. There is some level of risk attached to all types of investments and this is what determines the returns on your investments. The higher the risk, the greater the chances of a higher return. There are various investment types along the risk-return spectrum.
Bonds
Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities, such as companies, financial institutions, and the central or state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.
Deposits
Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the low end of the risk-return spectrum.
Cash equivalents
These are relatively safe and highly liquid investment options. Treasury bills and money market funds are cash equivalents.
Non-financial Instruments
Real estate
With the ever-increasing cost of land, real estate has come up as a profitable investment proposition.
Gold
The 'yellow metal' is a preferred investment option, particularly when markets are volatile. Today, beyond physical gold, a number of products which derive their value from the price of gold are available for investment. These include gold futures and gold exchange traded funds. Mutual Funds are subject to market risk. Please read the offer document carefully before investing. Terms and Conditions apply Why should we invest? Take a minute to think about why you may want to invest
Inflation is constantly increasing the cost of goods and services and eating into the value of your income and wealth. You need to save money and invest it well so that the value of every rupee is augmented. Higher life-expectancy means people live longer and hence, need more money to maintain their living standards.
By investing wisely you can improve your standard of living and create wealth for the future.
Investment horizon
How long can you keep the money invested? The longer the time-horizon, the greater are the returns that you should expect. Further, the risk element reduces with time.
Investible surplus
How much money are you able to keep aside for investments? The investible surplus plays a vital role in selecting from various asset classes as the minimum investment amounts differ and so do the risks and returns.
Investment need
How much money do you need at the time of maturity? This helps you determine the amount of money you need to invest every month or year to reach the magic figure.
Expected returns
The expected rate of returns is a crucial factor as it will guide your choice of investment. Based on your expectations, you can decide whether you want to invest heavily into equities or debt or balance your portfolio. Mutual Funds are subject to market risk. Please read the offer document carefully before investing. Terms and Conditions apply. THE HSBC Way Of Ivestment Your needs may differ, but the need to plan does not. Our long-term investment perspective aims to preserve your purchasing power 9
What is are approach Our needs-based, customer-centric focus is based on three cornerstones:
Invest regularly
Investing a fixed sum of money at regular frequencies is a disciplined approach to managing and growing your investments.
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Our financial planning process helps you to analyze your needs and understand how you should invest to meet your needs. Using this approach, your Relationship Manager suggests appropriate solutions. A team of investment specialists support this process by bringing to the table, the white-listed products. These products have been carefully researched and identified to be suitable to meet your needs. To attempt that you are updated on your investments at all times, we bring you ongoing research, monitoring and review reports. We use technology as a vital enabler in consistent and structured delivery of our investment proposition in terms of analysis, tracking and updates. Thus our constant endeavor is to provide you with investment solutions which address your needs at the core of this entire exercise are your interests, how to help you make the most of it!
Client trust
We pride ourselves on the quality of relationship-managed financial solutions we offer to our 1 lac customers with more than Rs 100 billion of assets under management
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Trained and Accredited team Our 850+ Relationship Managers and team of investment specialists are supported by HSBC Treasury, HSBC Securities and Capital Markets, HSBC Global research and a dedicated in house strategist and economist. Our welltrained and accredited Relationship Managers (AMFI / IRDA / internal certifications) help you plan your investments with suitable solutions. In addition, we stay abreast of the latest trends and developments through regular training programs and on-the-job guidance by experienced specialists and trainers.
White-listed funds
The concept of white listed funds lies in the bank's open architecture model, which lays emphasis on meritocracy. We carefully look at various products available in the market and after thorough due diligence select product providers / schemes which adequately correspond to the needs of our customers. White listed funds are selected based on various proprietary models that are used for intense quantitative analysis. These funds help our clients build a long-term portfolio and in achieving long-term financial goals.
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White-listed funds
White list fund selection is predominately a mix of various quantitative and qualitative factors. Proprietary models are used for intense quantitative analysis over various time frames to measure and assess risk-adjusted performance, consistency, investment style and thus future performance expectations. These funds are offered to customers to provide diversification across asset classes, product providers , investment styles, risk profiles and market segmentsers. This provides us a platform to know and understand the market and economic developments and trends.
Technological Edge
For maintaining customer needs as a central philosophy, we rely heavily on technology to provide service in a structured and standardised manner. Our Relationship Managers follow a sales process that is extensively supported by technological systems. This includes our Wealth Management System, Financial Planning System and our Customer Relationship Management System. These systems are all indigenously developed and built on the basis of the customer insights that have been accumulated over the years. We continuously hone these systems to meet the changing needs of our customers and accommodate the evolving market conditions. Our Wealth Management System has in-house processing, hosting and tracking capability. It manages an average of 10,000 transactions per day for around 100,000 13
customer accounts. The system facilitates performance monitoring, post-sales servicing (such as monthly consolidated statements and alerts) and portfolio analysis Financial Planning System is a centralized, server based and user-friendly financial planning tool which endeavors process-driven wealth proposition delivery.
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