Rizvi Institute of Management Studies

& Research

PROJECT REPORT ON

STRATEGIES OF WEALTH
MANAGEMENT
AnandRathi Financial Services

GUIDED BY
Prof. UMAR FAROOQ
SUBMITTED BY
Mr. HARIS TARIQUE RAHIM
ROLL NO - 44
{MMS-A}

Declaration

I hereby declare that this project work, entitled Strategies Of Wealth

Management is the result of my own work under the guidance of
Prof. UMAR FAROOQ & that the same has not been previously
submitted by me to any other institute.

Mr. HarisTarique Rahim

{MMS A - 44}

Acknowledgement
I am deeply indebted to my research guide, Prof. UMAR FAROOQ, for his
excellent guidance and timely correction. Without his help the report would
not have taken its present shape.
I would like to thank for formulating the course stucture which gives us
more & more chance of putting or learning's in to practices.

Mr. HARIS TARIQUE RAHIM

ROLL NO - 44
{MMS-A}
,

CONTENTS
1. ..

Abstract

2.

..

Objectives

3.

..

Introduction

4.

..

Concept of WMS

5.

..

Key Elements of WMS

6.

..

Functional Areas

7.

..

Basic Aspects of WMS

8.

..

Advantages & Limitations

9.

..

About ANAND RATHI

10.

..

Research Methodology

11.

..

Findings

12.

..

Conclusion

13.

..

Limitations

14.

..

Recommendation

15.

..

Bibliography

16.

..

Questionnaire

ABSTRACT
AnandRathi Financial Services Provide Discretionary wealth management service, in
which wealth manager give recommendation to customers and invest according to
customer discretion.

My Project is the study of Customer preference in investment, their views regarding

investment, their reaction on recession and the potential market for wealth management
services in urban and semi urban areas.

In urban and semi-urban area, most of the investors invest without any recommendation
from any financial expert so thats why they could not calculate the exact risk and return
on their investment. Apart from major cities, in other urban areas, people even dont
know about the wealth management services by AnandRathi Financial Services. They
still consider private banks as traditional banks where only current and saving a/c was
opened. Their wealth is not managed professionally because they are unaware of such
kind of services

And how the people react on recession? Recession brings how much change in their
investment decision and their preference for investment? How much risk people can
tolerate and @ how much expected return?

By taking the investors preference for investment, I tried to find out that how wealth
management service providers do the basic operations for managing their wealth i.e.:

Profiling of investors Evaluating the investment options Selecting the instruments

Balancing them Periodically review Change in strategy etc.

From the past result, I tried to find out the growth of potential market in India and what
kind of services provide to existing customers of AnandRathi Financial Services.

In the market, scope is there but trend is still traditional. Companies just focusing only
and only on some instruments like life insurance and De-mat a/c where competition is
already there but in other services of wealth management, we still lagging behind.

In research, I found that condition is still like investor call and ask I NEED YOUR
HELP instead of companies should call and ask WE ARE HERE FOR YOUR
SERVICE, HOW CAN WE HELP YOU

Today, investor wants the services which could reduce the risk and increase the return. In
urban and semi urban area, people still prefer to invest in govt. banks FDs and saving
a/c or life insurance only because their unawareness for other options for investment
which could increase their return.

In research in found that most of the people are ready to restructure their portfolio if
managed professionally and by financial expert.

Apart from objective, some of the points which are considered in this topic to make
project report more comprehend are:-

I. What the investor expect from wealth management services provider

II. Core element of wealth management services

III. Key challenging areas

IV. Factors that affect the investors preference for investment

OBJECTIVES

_ To know the potential market in urban & semi-urban area.

_To know the investors preference for investment.

_Investors reaction on recession.

_Risk tolerance of people in todays scenario.

_Investors awareness for wealth management services by AnandRathi Financial

Services.

_Process of wealth management service by AnandRathi Financial Services.

INTRODUCTION
The term wealth management now a days having very importance. So many banking
companies are engaged in the business of wealth management. The premier insurance
industry is now booming because so many bankers are also adopting and playing safe in
the business of insurance the term called banc assurance. Now a days, Wealth
Management has very craze in the business world. In a survey, it was found that India
had 100,000 milliners day end of year 2006 is now growing up by 21% from a year
earlier (Asia pacific Wealth report).

Wealth management services area in financial sector has been witnessing more attention
during last couple of years. Capgemini Merrill Lynch Wealth Report 2007 cites number
of HNWIs (high net worth individuals) globally to be around 9.5 million with wealth
held by them totaling to US$37.2 trillion in year 2006. Value of wealth held by HNWIs
represents an increase of around 11.4% since 2005.

Considering long-term high value business proposition, number of banks and niche
players has started offering full range of wealth management services targeted to HNWIs
and emerging affluent.

While growing volume of premium services to affluent clients becomes the key driver
for most of the service provider firms, many unique elements inherent to wealth
management services requires completely different service offering model than the
existing model for transactional services.

Greatly accustomed in offering commoditized financial services so far, demand of

unconventional form of service model poses a big challenge in charting growth path for
these wealth management firms.

CONCEPT OF WEALTH MANAGEMENT

The term wealth Management formed with two words Wealth & Management. The
meaning of management they have already seen in the steering introduction. The
meaning of wealth is Funding, assets, investments and cash. It means the term Wealth
Management deft with fund assets, instrument, cash, and any other item of similar
nature. While defining the Wealth Management, they have to think in planned manner.
Wealth Management is an all inclusive set of strategies that aims to grow, manage,
protect and distribute assets in a much planned systematic and integrated manner.

WEALTH MANAGEMENT RANGE

The Indian market has been segmented by wealth management service provider into five
categories, namely: Ultra-high net worth, or Ultra-HNW (in excess of US $30 Million),
will have a total population of 10,500 households by 2012. Super-high net worth
(between US $10 Million to $30 Million) will have a total population of 42,000
household by 2012. High-net worth (between US $1 Million to $10 Million) will have a
total population of 320,000 household by 2012. Super affluent (between US $125,000
to $1 Million) will have a total population o 350,000 households by 2012. Mass
affluent (between US $25,000 to $125,000) will have a total population of 1.8 million
household by 2012.

Mass market (between US $5,000 to $25,000) will have a total population of 39 million
households by 2012.

The range of wealth management can be expressed by the exhibit chart

STUDENT * Deposit based comfort A/c * Credit cards Liquidity Management (Cash
Mgt)

START OF CAREER * Comfort A/c with credit limit * Gold Card

CAREER ESTABLISHED

RETIREMENT

_ Premium A/c * Premium A/c * Platinum Card * Platinum Card

_ Overnight money A/c * Money Market & Fixed Income Fund * Near Money Market
Fund * ZINS Plus

_ Overnight money A/c * Money Market & Fixed Income Fund * Near Money Market
Fund * ZINS Plus * Special Investments

_ Top portfolio Wealth Formation (Savings Plans) * Flagship portfolio * Titan portfolio

_ Top portfolio * Flagship portfolio * Titan portfolio * Capital formation benefit funds

_ Top portfolio * Flagship portfolio * Titan portfolio

_ Absolute Return Portfolio Wealth Optimization (Lump sum Investment) * Holding and
Private Equities * Modular Wealth Management * Individual Wealth Management *
Premium Portfolio * Titan Portfolio

Key Elements of Wealth Management Services

Wealth management services involve fiduciary responsibilities in providing professional

investment advice and investment management services to a client. Depending on the
mandate of the services given to the Wealth Manager, wealth management services could
be packaged at various levels:

Advisory Wealth mangers role is limited to the extent of providing guidance on

investment / financial planning and tax advisory, based on client profile. Investment
decisions are solely taken by the client, as per his /her own judgment.

Investment Processing (transaction oriented) Client engages wealth manager to execute

specific transaction or set of transactions. Investment planning, decision and further
management remain vested with the client

Custody, Safekeeping and Asset Servicing Client is responsible for investment

planning, decision and execution. Wealth manager is entrusted with management,
administration and oversight of investment process.

End-to-end Investment Lifecycle Management Wealth manager owns the whole gamut
of investment planning, decision, execution and management, on behalf of the client. He
is mandated to make financial planning, implement investment decisions and manage the
investment throughout its life.

Functional Areas
_ Financial Planning

_Portfolio Strategy Definition/ Asset Allocation

_ Strategy Implementation

_Portfolio Management Administration, Performance Evaluation and Analytics

_Strategy Review and Modification

Basic Aspect of Wealth Management Service

Financial Planning
Client profiling takes in account multitude of behavioral, demographic and investment
characteristics of a client that would determine each clients wealth management
requirements. Some of key characteristics to be evaluated for defining clients
investment objective are:_Current and future Income level

_Family and life events

_Risk appetite / tolerance

_Taxability status

_Investment horizon

_Asset Preference /restriction

_Cash flow expectations

_Religious belief (non investment in sin sector like - alcohol, tobacco, gambling firms, or
compliant with Sharia laws)

_Behavioral History (Pattern of past investment decisions)

_Level of clients engagement in investment management (active / passive)

_Present investment holding and asset mix

Based on the client profile, investment expectations and financial goals of the client
could be clearly outlined. Defining investment objectives helps to identify investment

options to be considered for evaluation. Investment objective for most of the investors
could be generally considered amongst the following:-

Current Income Growth (Capital Appreciation) Tax Efficiency (Tax Harvesting) Capital
Preservation (often preferred by elderly people to make sure they dont outlive their
money.)

Portfolio Strategy Definition / Asset Allocation

After establishing investment objectives, a broad framework for harnessing possible

investment opportunities is formulated. This framework would factor for risk-return
trade-off of considered options, investment horizon and provide a clear blueprint for
investment direction.

Investment strategy helps in forming broad level envisioning of asset class (Securities,
Forex, Commodity, Real State, Reference and Indices, Art/Antique and Lifestyle Assets
(Car, Boat, Aircraft)), market, geography, sector and industry. Each of these asset classes
is to be comprehensively evaluated for inclusion in portfolio model, in view of defined
investment objectives.

While defining the strategy, consideration of client preference or avoidance for specific
asset class, risk tolerance, religious beliefs is the key element, which would come into
picture. Thus, for a client with a belief of avoidance of investment in sin industries
(alcohol, tobacco, gambling etc.) is to be duly taken care of. Likewise, for a client
looking for Sharia- compliant investment, strategy formulation should consider
investment options meeting with the client expectations.

Determination of Portfolio Constituents and Allocation of Assets Guided with the

investment strategy, constituents in portfolio model are determined, which would directly
and efficiently contribute towards clients investment objectives.

Thus, a broad level investment guidance of investment in fixed income in emerging

market would further determine classification within Fixed Income such as Govt. or
corporate bonds, fixed or variable rate bonds, Long or short maturity bonds, Deep
discounted or Par bonds, Asset backed or other debt variants.

Return profile, risk sensitivity and co-relation of constituents within portfolio model
would help to determine the size (weightage) of each individual constituent in the
portfolio.

DISCIPLINED PORTFOLIO BUILDING APPROACH

Review investment objective, portfolio progress, asset allocation & portfolio strategy

Risk Profiling

Investment Objective

Existing Portfolio

Asset Allocation

Planning

Rebalancing existing portfolio

Tactical Rebalancing

Maintain asset allocation

Execution of debt, Equity & other investments

Strategy Implementation

Having decided the portfolio constituents and its composition, transactions to acquire
specific instruments and identified asset class is initiated. As acquisition cost would be
having bearing on overall performance of the portfolio, many times process of asset
acquisition may be spread over a period of time to take care of market movement and
acquire the asset at favorable price range.

Portfolio Management Portfolio Administration

Portfolio Administration involves handling of investment processes and asset servicing.

This would also require tax management, portfolio accounting, fee administration, client
reporting, document management and general administration relating with portfolio and
client. This function would involve back office administration and custodial services to
manage transaction processes (trading and settlement) - interfacing with
brokers/dealers/agents, Fund managers, Custodians, Cash Agent and many other market
intermediaries. Performance Evaluation and Analytics

Performance evaluation of the portfolio is an ongoing process. Portfolio return is

continuously monitored and analyzed with respect to defined portfolio objectives.
Analysis dimension could be varied simple and complex. These may include - absolute
return, relative return (in comparison to chosen benchmark), trend, pattern, cost impact,
tax impact, concentration, lost opportunity and other form of sensitivity and what-if
analysis. Any deviation of portfolio performance observed during performance
evaluation would lead to strategy review and any possible alignment of portfolio
strategy.

Strategy Review and Alignment

Based on performance evaluation and future outlook of the investment, portfolio strategy
is evaluated on periodic basis. To keep it aligned with the defined investment objectives,
portfolio strategy is suitably re-calibrated from time to time. Many times, review of
portfolio strategy would be necessitated due to change in client profile or expectations.

Any re-calibration of strategy and consequent change in portfolio model would require
rebalancing of the assets in portfolio. This would be achieved through rebalancing the
asset (divesting over-allocated part and acquiring under allocated), relocation (from one
sector the other or from one instrument to other instrument in the same class) or
complete divestment.

Key Challenging Area

While immense business potentiality of this emerging sector is a driving point for most
of the firms, they face many challenges in formulating winning services offering meeting
the client needs. In the following section, we would briefly take a look on the key
challenges area in the present context.

Highly Personalized and Customized Services

Unlike other stream of financial services, mostly being transactional / commoditized in

nature, wealth management services require client specific solution and service offering.
No one solution exactly meets the needs of other client. In a situation of highly
personalized and customized nature of service offering, developing any form of generic
service model does not support growth of the business.

Personal relationship driving the business

To meet client expectation of personal attention, mode of communication in wealth

management services tends to be highly personalized. Thus, the conventional grids of
communication, such as call centre, data centre does not fit well. Success of wealth
management services heavily draws on personal interaction with the dedicated
relationship manager, who takes care of whole investment management lifecycle for
bunch of clients on one-to-one basis. This essentially requires service firm to invest
heavily in human processes to groom and retain a team on competent relationship
managers with cross functional skills.

Evolving Client Profile

The biggest challenge in providing wealth management service offering is to factor and
reckon the evolving nature of client profile, in terms of investment objective, time
horizon, risk appetite and so on. Thus, a service model developed for a particular client
cannot remain static over a period of time. Any service model has to be flexible enough
to consider the dynamic nature of client profile and expectations arising out of it.

Client Involvement Level

The conventional adage the more money you have, more effort is needed to manage it
proves to be otherwise in case of HNWIs. Generally, client involvement in managing
the finance remains on the lower side. This brings onus of managing the whole gamut of
investment and due performance single-handedly on the shoulders of investment
manager.

Passion Investment (Philanthropy and Social Responsibility)

In the recent years a trend has been observed that bulk of investments by HNWIs has
been directed towards passion investments (art, antique, jewellery, coins, unique assets,
luxury), philanthropy and social/community causes.

As per World Wealth report, 11% of HNW investors worldwide contributed to

philanthropic causes with a contribution over 7% of their wealth in year 2006. UltraHNWIs contribution was even more - 17% of Ultra-HNW investors that gave to
philanthropy contributed over 10% of their wealth.

In total, this equates to more than US$285 billion globally. Against this backdrop, new
breed of HNWIs expect to strategically manage the wealth and personal resources
allocated to philanthropy purpose, in order to maximize its impact. This demands a
relationship manager not just to be a passive financial advisor rather a passionate partner
sharing interest and inclination of the associated client.

 Limited Leveraging Capabilities of Technology (as an enabler) In the recent times, we

have witnessed technology a key enabler to help business to expand its market reach
with reduced cost of services offering. Online banking and online trading/brokerage
services are the best examples in this regard. Technology leveraging has helped services
firm to achieve universal proliferation of market with substantially reducing transaction
cost.

As business rules and service definitions to guide the applications tends to be quite
composite in wealth management services, leveraging the capabilities of technology to
meet the business requirement may not be highly feasible in the initial years.

Technical Architecture and Technology Investment

As business architecture is still evolving, a proven basis of resilient technical architecture

and framework to support the emerging business greatly remains missing. In absence of
this framework, any investment commitment towards application development / system
implementation would be fraught with severe risk. Intricate Knowledge of Crossfunctional Domain

By very nature of wealth management, it not just involves matters of plain vanilla
finance but has intricate relationship with many elements of domestic / international law,
taxation and regulatory norms. In order to provide sound investment guidance, a
relationship manager is required to have intricate knowledge of domestic/cross-border
finance, accounting, legal and taxation subjects.

Wealth Management Practice Orientation Overview

Transactors:

Product Expert: Handles high-volume transactions involving sophisticated products or

asset classes, such as foreign exchange derivatives.

Investment Broker: Handles transactions involving basic asset classes, such as equities,
fixed income and options.

Investment Managers:

Investment Advisor: Offers strategic investment planning, as well as playing a hands-on

role in constructing, reviewing and rebalancing client portfolios.

Relationship Manager: Establishes and nurtures client relationships, delegating portfolio

management to internal or external managers.

Wealth Planners:

Wealth Planner: Offers holistic advice in accordance with clients finances and
short/long-term goals, such as real estate, retirement and generational wealth transfer.

Personal CFO: Aspires to provide quasi family-office services, often acting in a lead
discretionary role coordinating with the clients other trusted advisors.

ADVANTAGES & LIMITATIONS

Advantages:
_Helpful in Tax Planning

_Helpful in selection of investment strategy

_Helpful in Estate Management

_Helpful in forward looking

-Helpful in Indian Economy

Disadvantages:
_WM reduces the scope of Management

_Chances of fraud

_Actual picture v/s Inflation

About AnandRathi Financial Services

ANAND RATHI GROUP

Established in 1994, Anand Rathi is one of Indias leading financial services firm
offering Wealth Management, Investment Banking, Corporate Finance & Advisory,
Brokerage & Distribution services in the areas of equities, commodities, mutual funds,
structured products, insurance, corporate deposits, bonds & loans to institutions,
corporations, high-net worth individuals and families.
The firm has a vast footprint across India and also in select international locations such
as Dubai, with presence across 1200 locations through its own branches, sub-brokers and
remisers and representative offices/associate companies. The group today employs over
2,500 professionals.
Citigroup Venture Capital International, the well known global private equity and
Venture Capital Company holds a sizeable stake in the firm. All our offerings are
supported by powerful research teams and each unit is clearly positioned to cater to the
most diverse financial needs of our clients.
The Anand Rathi Group is member of the Bombay Stock Exchange (BSE), National
Stock Exchange (NSE), Multi-Commodity Exchange (MCX), National Commodity
Exchange (NCDEX), United Stock Exchange (USE), Central Depository Services Ltd.
(CDSL), National Securities Depository Limited (NSDL) and ARN holder.

VISION

MILESTONES

AWARDS
2015

2015 Best Wealth Manager India Award by Capital Finance International,

London

2014

Winner of Asiamoney Poll of Polls (2005-2013) - The Best Domestic Private

Bank (India)

Voted The Best Domestic Private Bank (India) for 5 Consecutive Years 2009 | 2010 | 2011 | 2012 | 2013 Asiamoney Private Banking Polls

Anand Rathi Financial Services Ltd. awarded Excellence Award Institute of

Economic Studies

Rakesh Rawal, CEO - Private Wealth Management awarded Udyog Rattan

Award and Golden Global Achievers Award Institute of Economic Studies.

The Overall Best Private Bank in India Asiamoney Private Banking Polls

(2014)

1st in AUM > US$25m category | 1th in AUM US$5.01m-25m category | 2nd in

AUM US$1m-5m category

2013

Recognized as One of the Top 10 Performers in Equity Segment (Retail

Trading) - Bombay Stock Exchange (2012-2013)

Ms. Priti Gupta, Executive Director awarded Special Contribution to

Commodities Business Zee Business at Best Market Analyst Awards (2013)

The Overall Best Private Bank in India Asiamoney Private Banking Polls

(2013)

1st in AUM > US$25m category | 4th in AUM US$5.01m-25m category | 2nd in

AUM US$1m-5m category

2012

The Overall Best Private Bank in India Asiamoney Private Banking Polls

(2012)

ET Now Starmine Awards 2012

1.

1st in Stock Picker- IT/ Telecom Category.

2.

1st & 3rd Overall Stock Picker.

3.

1st in Stock Picker- Consumer Category

Best Agri Commodities Analyst (Fundamental) Award Commodity Participants

Association of India (2012)

Mr. Kaitav Shah, Banking Analyst - Institutional Research team rated Asias

Best Analyst Banking - Wall Street Journal (2012)

2011

ET Now Starmine Awards 2011

1.

1st in Stock Picker- Consumer Goods & Services

2.

3rd in Stock Picker- Auto & Auto Ancillary Services

3.

3rd in Best Earnings Estimates

Best Contribution in Investor Education & Category Enhancement of the year

Bloomberg UTV Financial Leadership Award (2011)

Private Wealth Management was awarded for generating the Highest AUM

growth in 2010 for Kotak MF - Mr. Uday Kotak (2011)

2010


Mr. Anand Rathi awarded for his contribution towards Indias Capital Market
Zee Business - 2010

Institutional Research team moved up from the 10th to the 7th rank as the Best
Coverage Brokerage House - Asiamoney (2010)
2006

Ranked amongst South Asia's top 5 wealth managers for the ultra-rich - Asia

Money poll (2006)

Ranked 6th in 2006 for All India Broker Performance in equity distribution in

the High Net worth Individuals (HNI) Category

PROMOTER GROUP

Anand Rathi - Founder & Chairman

Mr. Anand Rathi, the founder and torch-bearer of the AnandRathi Group, is one of the
leading financial and investment experts in India and South-East Asia. The gold
medallist Chartered Accountant is an esteemed member of the ICAI and has over 40
years diverse experience.
Before establishing his own enterprise, Mr. Rathi had a long and illustrious career as a
core member of Birla Group the business group of legendary late Mr. Aditya Birla. He
was the youngest president of Indian Rayon (now known as Aditya Birla Nuvo). He was
instrumental in shaping the groups cement business and spearheading its foray into
diverse businesses in manufacturing and services.
In 1999, Mr. Rathi became the president of BSE (Bombay Stock Exchange). He was the
driving force behind the expansion of BOLT - the BSE Online Trading System. He also

set up the Trade Guarantee Fund and played a vital role in setting up the Central
Depository Services (CDS).

Pradeep Gupta Co-founder & Vice Chairman

Mr. Pradeep Gupta has an all-embracing industry experience acquired from running a
wide-range of businesses in the past. He started his professional journey with a familyowned textiles business. Later, his growing interest and love for financial markets drew
him towards the financial services industry. He stepped into this industry with Navratan
Capital & Securities Pvt. Ltd. and later joined hands with Mr. Anand Rathi to establish
the AnandRathi Group.
With over two decades of rich experience in financial markets, he has played a pivotal
role in laying the foundation of the Institutional Broking and Investment Services arm of
the group. His ground-breaking spirit has driven the firms rapid growth successful
expansion into a strong network of franchisees and branches across India. Under his
dynamic leadership the group has bagged several prestigious awards and accolades.
An avid investor and trusted advisor, Mr. Gupta is often seen sharing his views and
insights in the media on macroeconomic aspects, domestic and international markets. He
is also an active member of Rotary Club of Bombay.

Amit Rathi - Managing Director

Mr. Amit Rathi is a rank-holder Chartered Accountant and an MBA from the illustrious
New York University Leonard N. Stern School of Business. He was instrumental in
setting up the Private Wealth Management (PWM), Investment Banking (IB) and
Institutional Equities businesses of the Anand Rathi group, and establishing them in the
global markets. Led by his vision and conviction, the group has maintained a strong and
steady growth.
Amit is a thought leader in the financial markets and his views are regularly sought and
featured in leading business channels and the print media. The Times of India listed Amit
amongst the top 51 young Marwaris in India (under the age of 40), in 2008.
He is a member of The Bombay Chapter of the Young Presidents Organisation (YPO)
and co-chairs the NYU Stern India alumni group.

Priti Gupta - Executive Director, Commodities and Currencies, Anand Rathi

Commodities Ltd.
Ms. Priti Gupta, an MBA (FMB) from SP Jain Institute of Management & Research,
Mumbai, was instrumental in setting up the commodities desk, currency and Forex
Advisory business. She leads the advisory team for commodity and exchanges globally
with a keen focus on base metals and energy. She has played a key role with regards to
formulation of strategies for internal processes and product innovation. Prior to joining
the group, she was a director with Navratan Capital & Securities Pvt. Ltd. (a member of
The National Stock Exchange of India).
Today, owing to her proficient leadership, Anand Rathi ranks amongst the top 5 financial
services firms in Commodities & Currencies business and is well-known for its one-of-akind Forex Advisory. She has also established the group's association with international
counterparts such as NATIXIS (an exclusive tie-up in India).
Ms. Gupta has been awarded Woman Leader of the Year (Financial Category) by the
Women on Top and NDTV Profit in 2011, organized by Igroup. She was also

recognized for Special Contribution to Commodities Business in Zee Business Best

Analyst Awards 2013.
Known for her sharp business insights, Ms. Gupta is an active member of National
Executive Committee of Commodity Participant Association of India (CPAI). She is
often seen sharing her views on commodities and corporate currencies with the media
and contributing to several related articles in business magazines.

Supriya Rathi - Director, Anand Rathi Insurance Brokers Pvt Ltd.

Ms. Supriya Rathi holds an MBA in Finance from Leonard N. Stern School of Business New York University. She has 12 years of rich experience across financial services in
insurance broking. She started her career journey in retail banking and equities research
with leading organizations such as Hong Kong Bank and Solomon Smith Barney (now a
part of Citi Group).
Her ground-breaking initiatives enabled Anand Rathi Groups foray into the Insurance
Broking business, in 2002. Her leadership made Anand Rathi a frontrunner in
institutionalizing insurance broking in India. She set the groups foundation for a strong
insurance distribution network and service penetration.

BOARD OF DIRECTORS

Rahul Yadav Director

Mr. Rahul Yadav is the Managing Director, India team, Citibank Venture Capital
International (CVCI). He has spent over a decade with Citibank and has over two
decades of experience in investment & corporate banking. In the past, he has worked
with Merrill Lynch as Senior Vice President - Middle East & India, Deutsche Morgan
Grenfell, India, as Director & India Head Structured Finance, and Prudential, New York,
in Corporate Finance. He is a post-graduate from the University of Oxford, England
where he studied on Rhodes Scholarship and holds a B.A degree from St. Stephens
College, Delhi.

C D Arha Director

Mr. C D Arha's experience spreads across several domains by virtue of being at key
positions across ministries in the past. Formerly, he has been the Secretary in the Union
Ministry of Mines, Special Secretary & Additional Secretary in the Ministry of Coal,
Resident Chief Information Commissioner AP (Right to Information Act) as well as
Commissioner Civil Supplies (AP). He is also the former Chairman and MD, APSEC.
Mr. Arha holds an M.A. (History) and a diploma in Management & Administration of
Rural Development.

MANAGEMENT GROUP

Rakesh Rawal - CEO, Private Wealth Management

Mr. Rawal stepped in as the CEO of Anand Rathi Private Wealth Management in the year
2007 and has nurtured the Private Wealth Management vertical ever since. The former
Vice President, Private Wealth Management, Deutsche Bank has an experience of over
30 years spanning across several areas such as Financial Services, FMCG and Pharma.
He has held key positions in exalted organizations such as Hindustan Unilever and
Ranbaxy Laboratories. Mr. Rawal has been conferred with the Udyog Rattan Award and
the Golden Global Achievers Award by the Institute of Economic Studies in appreciation
of his contribution to the countrys Financial Services Sector. The multifaceted leader
holds an MBA, Finance from one of the top management institutes of the country
JBIMS and is a B.Tech graduate from IIT, Kanpur.

Jugal Mantri - Group CFO

Mr. Mantri, a rank holder Chartered Accountant has over 18 years of extensive
experience spanning across Corporate Finance, Business Management, Project Finance
and Financial Structuring. He has handled various mid-size corporate turn-around cases
in India and Abroad. He began his coporate learning journey as an Article Trainee from
M/s. Harbhakti & Company and, later, moved to Tata Finance Ltd. He was amongst the
first ones to join the AnandRathi Group at the time of its inception and spent over 9 years
in the Corporate Advisory service and brokerage business. He is the former Chief
Executive Officer of M/s. Varun Industries Ltd.

Roop Bhootra - Executive Director, Investment Services

Mr. Bhootra is a rank holder Chartered Accountant and began his career with the group
in the year 1995. He has over 21 years of experience in the field of Business Strategy,
Sales, Operations, Accounting and software development. Over the years, Mr. Bhootra
has successfully handled several critical responsibilities in the group, particularly in the
area of Business processes, Risk Management, Derivatives, System Development and
Operations. He is currently the Executive Director, Investment Services as overall head
of the business. He is also on the board of Anand Rathi Commodities Ltd., AR Venture
Funds Management Ltd. and Anand Rathi Wealth Advisors Ltd.

Chetan Bharkhada President & Head, Commodities & Currencies

Mr. Bharkhada has over 15 years of experience in areas spanning Commodity Markets,
Forex and Derivatives. Prior to AnandRathi Group, he worked with Sterlite Industries in
the Group Treasury function, where he looked after Base & Precious Metals Hedging in
LME and the Currency Derivatives division. He has also worked with organizations such
as IFCI and Haribhakti Consulting.

PRODUCTS AND SERVICES OF ANAND RATHI FINANCIAL

SERVICES
EQUITIES

In accounting and finance, equity is the difference between the value of

the assets/interest and the cost of the liabilities of something owned. For example, if
someone owns a car worth $15,000 but owes $5,000 on that car, the car represents
$10,000 equity. Equity can be negative if liability exceeds assets.
In an accounting context, shareholders' equity (or stockholders' equity, shareholders'
funds, shareholders' capital or similar terms) represents the equity of a company as
divided among individual shareholders of common or preferred stock. Accounting
shareholders are the cheapest risk bearers as they deal with the public. Negative
shareholders' equity is often referred to as a (positive) shareholders' deficit.

For the purposes of liquidation during bankruptcy, ownership equity is the portion of a
business's equity which remains for the owners after all liabilities have been paid and all
other creditors have been reimbursed.
MUTUAL FUND
A mutual fund is a professionally managed investment fund that pools money from many
investors to purchase securities. While there is no legal definition of the term "mutual
fund", it is most commonly applied to so-called open-end investment companies, which
are collective investment vehicles that are regulated and sold to the general public on a
daily basis.
In the United States mutual funds must be registered with the U.S. Securities and
Exchange Commission, overseen by a board of directors or board of trustees, and
managed by a Registered Investment Advisor. Mutual funds are subject to an extensive
and detailed regulatory regime set forth in Investment Company Act of 1940. Mutual
funds are not taxed on their income and profits if they comply with certain requirements
under the U.S. Internal Revenue Code.
Mutual funds have both advantages and disadvantages compared to direct investing in
individual securities. Today they play an important role in household finances, most
notably in retirement planning.
There are three types of U.S. mutual funds: open-end funds, unit investment trusts,
and closed-end funds. The most common type, open-end funds, must be willing to buy
back shares from investors every business day. Exchange-traded funds (ETFs) are openend funds or unit investment trusts that trade on an exchange.[4] Non-exchange-traded
open-end funds are most common, but ETFs have been gaining in popularity.
Mutual funds are generally classified by their principal investments. The four main
categories of funds are money market funds, bond or fixed income funds, stock or equity
funds, and hybrid funds. Funds may also be categorized as index (or passively managed)
or actively managed.
Investors in a mutual fund pay the funds expenses, which reduce the fund's returns and
performance. There is controversy about the level of these expenses.

IPO

Initial public offering (IPO) or stock market launch is a type of public offering in
which shares of a company usually are sold to institutional investors[1] that in turn, sell
to the general public, on a securities exchange, for the first time. Through this process,
a private company transforms into a public company. Initial public offerings are mostly
used by companies to raise the expansion of capital, possibly to monetize the
investments of early private investors, and to become publicly traded enterprises. A
company selling shares is never required to repay the capital to its public investors. After
the IPO, when shares trade freely in the open market, money passes between public
investors. Although IPO offers many advantages, there are also significant
disadvantages, chief among these are the costs associated with the process and the
requirement to disclose certain information that could prove helpful to competitors. The
IPO process is colloquially known as going public.
Details of the proposed offering are disclosed to potential purchasers in the form of a
lengthy document known as a prospectus. Most companies undertake an IPO with the
assistance of an investment banking firm acting in the capacity of an underwriter.
Underwriters provide several services, including help with correctly assessing the value
of shares (share price) and establishing a public market for shares (initial sale).
Alternative methods such as the dutch auction have also been explored. In terms of size
and public participation, the most notable example of this method is the China has
recently emerged as a major IPO market, with several of the largest IPOs taking place in
that country

INSURANCE
Insurance is a means of protection from financial loss. It is a form of risk
management primarily used to hedge against the risk of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, or
insurance carrier. A person or entity who buys insurance is known as an insured or
policyholder. The insurance transaction involves the insured assuming a guaranteed and
known relatively small loss in the form of payment to the insurer in exchange for the
insurer's promise to compensate the insured in the event of a covered loss. The loss may
or may not be financial, but it must be reducible to financial terms, and must involve

something in which the insured has an insurable interest established by ownership,

possession, or pre-existing relationship. The insured receives a contract, called
the insurance policy, which details the conditions and circumstances under which the
insured will be financially compensated. The amount of money charged by the insurer to
the insured for the coverage set forth in the insurance policy is called the premium. If the
insured experiences a loss which is potentially covered by the insurance policy, the
insured submits a claim to the insurer for processing by a claims adjuster.

Future & Options

In finance, an option is a contract which gives the buyer (the owner or holder of the
option)
the
right,
but
not
the
obligation,
to
buy
or
sell
an underlying asset or instrument at a specified strike price on or before a specified date,
depending on the form of the option. The strike price may be set by reference to the spot
price (market price) of the underlying security or commodity on the day an option is
taken out, or it may be fixed at a discount or at a premium. The seller has the
corresponding obligation to ful fill the transaction to sell or buy if the buyer (owner)
"exercises" the option. An option that conveys to the owner the right to buy at a specific
price is referred to as a call; an option that conveys the right of the owner to sell at a
specific price is referred to as a put. Both are commonly traded, but the call option is
more frequently discussed.
The seller may grant an option to a buyer as part of another transaction, such as a share
issue or as part of an employee incentive scheme, otherwise a buyer would pay a
premium to the seller for the option. A call option would normally be exercised only
when the strike price is below the market value of the underlying asset, while a put
option would normally be exercised only when the strike price is above the market value.
When an option is exercised, the cost to the buyer of the asset acquired is the strike price
plus the premium, if any. When the option expiration date passes without the option
being exercised, then the option expires and the buyer would forfeit the premium to the
seller. In any case, the premium is income to the seller, and normally a capital loss to the
buyer.
The owner of an option may on-sell the option to a third party in a secondary market, in
either an over-the-counter transaction or on an options exchange, depending on the
option. The market price of an American-style option normally closely follows that of the
underlying stock, being the difference between the market price of the stock and the
strike price of the option. The actual market price of the option may vary depending on a
number of factors, such as a significant option holder may need to sell the option as the

expiry date is approaching and does not have the financial resources to exercise the
option, or a buyer in the market is trying to amass a large option holding. The ownership
of an option does not generally entitle the holder to any rights associated with the
underlying asset, such as voting rights or any income from the underlying asset, such as a
dividend.

BONDS

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is

a debt security, under which the issuer owes the holders a debt and, depending on the
terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the
principal at a later date, termed the maturity date. Interest is usually payable at fixed
intervals (semi annual, annual, sometimes monthly). Very often the bond is negotiable,
that is, the ownership of the instrument can be transferred in the secondary market. This
means that once the transfer agents at the bank medallion stamp the bond, it is highly
liquid on the second market.
Thus, a bond is a form of loan or IOU: the holder of the bond is the lender (creditor),
the issuer of the bond is the borrower (debtor), and the coupon is the interest. Bonds
provide the borrower with external funds to finance long-term investments, or, in the
case of government bonds, to finance current expenditure. Certificates of deposit (CDs)
or short term commercial paper are considered to be money market instruments and not
bonds: the main difference is in the length of the term of the instrument.
Bonds and stocks are both securities, but the major difference between the two is that
(capital) stockholders have an equity stake in the company (i.e., they are investors),
whereas bondholders have a creditor stake in the company (i.e., they are lenders). Being
a creditor, bondholders have priority over stockholders. This means they will be repaid in
advance of stockholders, but will rank behind secured creditors in the event of
bankruptcy.[3] Another difference is that bonds usually have a defined term, or maturity,
after which the bond is redeemed, whereas stocks are typically outstanding indefinitely.
An exception is an irredeemable bond, such as a consol, which is apportunity, that is, a
bond with no maturity.

WEALTH MANAGEMENT PRODUCTS & SOLUTIONS

Mutual Funds AnandRathi Financial Services Wealth Management offers you advice on
the AnandRathi Financial Services Wealth Management offers the advice on the entire
universe of mutual funds. So be it equity funds, where investor look for growth and
capital appreciation or debt funds for capital preservation, they can help investor in
selecting the right mix to suit them. Choose from an array of more than 15 fund houses
with innumerable schemes.

Structured Products

ANANDRATHI Structured Product offerings are tailor-made to suit investors

investment objective and risk appetite. ANANDRATHI services include Discretionary
Portfolio Management and specially designed products that are Equity or Index-linked in
nature.

Alternate Asset Products

AnandRathi Financial Services Wealth Management broadens investment avenues. they

offer products which complement existing investments eg. Art Funds, Private Equity
Funding, Realty Funds. So, if investor is looking beyond the stock market, theyll find
AnandRathi Financial Services there too!

Life Insurance & Retirement Solutions

No need to worry about familys future or expenses post-retirement. AnandRathi

Financial Services Wealth Management has protection and pension covered. With
ANANDRATHIs assistance they can choose a plan customized to their benefit.

General Insurance

AnandRathi Financial Services Wealth Management doesnt just protect life, but also
makes everyday living simple. ANANDRATHI offer products in areas of Health
Insurance, Home Insurance, Travel Insurance and Motor Insurance.

Fixed Deposits

Choose from our wide variety of Fixed Deposits. Be it that Recurring Deposit for
monthly saving plan, or Floating Rate Deposits to take advantage of dynamic interest
rates... AnandRathi Financial Services Wealth Management has it all. ANANDRATHI
Fixed Deposits are competitively priced and offer you better yields than similar savings
instruments.

STRATEGY & OUTLOOK OF AnandRathi Financial Services

_Shareholders Value

_Retail Banking Platforms

_International Banking

_Rural Banking

_Life Insurance

_General Insurance

_Asset Management

RESEARCH METHODOLOGY
The systematic and objective identification, collection, analysis, dissemination and use
of information for the purposes of assisting management in decision making relating to
the identification and solution of problems ( and opportunities) in marketing.

It is a way to systematically solve the research problem. In it we study various steps that
are generally adopted by a researcher in studying his research problem along with the
logic behind them. It is important for the researcher not only to understand the research
methods and techniques but also the methodology.

COLLECTING OF DATA
In dealing with any real life problem it is often found that data at hand are inadequate
and hence, it becomes necessary to collect data that are appropriate. There are several
ways of collecting the appropriate data which differ considerably in context of money
costs, time and other resources at the disposal of the researcher.

I have taken both primary and secondary data in the project. Primary data through
questionnaire and secondary data through journals, office documents, and other sources
of published information like website of company. I have chosen survey method
because of some advantages.

Advantages of Survey Method

(i) Survey is conducted in case of descriptive research studies. Survey type research
studies usually have larger samples because the percentage of responses generally
happens to be low, as low as 20 to 30 %, especially in mailed questionnaire studies.
Thus, the survey method gathers data from a relatively large number of cases at a
particular time it is essentially cross- sectional.

(ii)Survey are concerned with describing, recording, analyzing and interpreting

conditions that either exits or exited, The researcher does not manipulate the variable or
arrange for events to happen Survey are only concerned wit condition or relationships
that exits, opinion that are held , processes that are going on, effects that evident or
trends that are developing . They are primarily concerned with the present but at times do
consider past events and influences as they relate to current conditions. Thus in survey,
variables that exist or have already occurred are selected and observed.

(iii)Survey is usually appropriate in case of social and behavioral sciences. Survey is an

example of field research. Survey may either be census or sample survey. They may also
be classified as social survey, economic survey or public surveys. The method of data
collection happens to be either observation, or interview or questionnaire or some
projective technique.

(iv)Possible relationships between the data and the unknown in the universe can be
studied through survey.

RESEARCH TECHNIQUE

Structured Questionnaire and personal interview, telephonic interview and observation

research technique was used in the project Type of questionnaire In this project I have
used close ended structured questionnaire to collect the actual view of the consumers and
their approach towards the company and investment decision services

CONTACT METHOD:Personal contact method was used: - This is the most

versatile method. The interviewer can ask more question and record additional
observation about the respondent. These are of two forms (i):- Arranged interviews:
Responded are contacted for an appointment and often a smallpayment or incentive is
offered. (ii):-Intercept interview: Involved stopping people at the shopping mall or busy
streetcorner and requesting an interview. Intercept interview is the gives of Nonprobability sample.

Personal contact method was used: - This is the most versatile method. The interviewer
can ask more question and record additional observation about the respondent.

SAMPLING UNIT: A decision has to be taken concerning a sampling unit before

selecting sample. Sampling unit may be a geographical one such as state, district, village,
etc., or a construction unit such as house, flat, etc., or it may be a social unit such as
family, club, school, etc., or it may be an individual. Sampling unit were taken from
different areas of Sirsa Distt. in Haryana. SIZE OF SAMPLE: This refers to the number
of items to be selected from the universe e to constitute a sample a major problem before
a researcher; the size of sample should neither be excessively large, nor too small. It
should be optimum. An optimum sample is one which fulfills the requirement of
efficiency, representativeness, reliability and flexibility, while deciding the size of
sample; researcher must determine the desired precision as also an acceptable confidence
level for the estimate. The size of population variance needs to be considered as in case
of larger variance usually a bigger sample is needed. The parameter of interest in a
research study must be kept in view, while deciding the size of the samples. Cost too
dictates the size of sample that we draw. As such, budgetary constraint must invariably
be taken into consideration when we decide the sample size. I have taken 100 people as
a sample size in the project SAMPLING PROCEDURE:On the representation basis, the
sample may be probability sampling or it may be nonprobability sampling. I have used
non probabilistic sampling procedure in this project. For consumer selection
convenience sampling.

DATA INTERPRETATION

Awareness of AnandRathi Financial Services Wealth Management services in tier 3 and

tier 4 city:-

In this graph, we could see here that:

People are not much aware of Wealth Management Services by AnandRathi Financial
Services in semi-urban and urban area.

People see AnandRathi Financial Services as only traditional bank where only current,
saving a/c or loan services are available.

Risk profiling of investors in urban & semi-urban areas:Young investors risk tolerancy
i.e. under the age group < 25 years

From the above graph, we could analyze that:

Young investor want balanced portfolio.

Due to heavy volatility in Indian stock market, they have changed their preferences for
investment.

They have changed their image from aggressive investors to prudent investors.

Risk profiling of investors in urban & semi-urban areas:Middle aged investors risk
tolerancy i.e. under the age group 26 - 40 years

50% of that age group

From the above graph, we could analyze that:

50% investors of middle age group are conservative investor and remaining

50% are prudent investors.

Risk profiling of investors in urban & semi-urban areas:Old aged investors risk
tolerancy i.e. under the age group > 40 years

73% of that age group

27% of that age group

From the above graph, we could analyze that:

73% investors of old age group are conservative investors and remaining 27% investors
are prudent investors.

So far, we thought that most of the old aged people are highly risk averse and very
conservative investor but market condition are different.

The investors who ask for advice before investing:-

From the above graph, we could analyze that: Only 17% investors ask for advice from
financial expert before investment. 62% investors dont ask or very rarely ask for
advice from financial expert due to unawareness from such kind of services.

The people who thought that SIP (systematic investment plan) is best for saving:-

92% investors think that SIP is best for saving for investment. And when so much no. of
people are interested to save money from their monthly income, but only due to
unawareness of different kind of SIP, they keep their money in post office schemes or
similar kind of schemes where they got very low interest.

In the observation, I found that in tier 3 and tier 4 cities, the middle class people who
could save 10% - 20% of their monthly income, is 49% which is a big amount and 31%
people could save around 10% of their monthly income.

In these cities, the avg. monthly income range Rs. 20,000 to Rs. 40,000 and when 49%
people could save 10% - 20% of their these income, then it is a big amount of saving in
such kind of cities. And it is still increasing because in small cities, the WPI i.e.
wholesale price index is comparatively low from tier 1 and tier 2 cities and people are
also more concern for savings. Experts also shown that when Indian GDP is growing by
so much faster rate, in small areas, people becoming more concern for their savings.

We could see here that India takes decades to touch the US$1 trillion economy so far but
expert has predicted that it will take only 6 year to touch next US$1 trillion. And where
the GDP is taking too much pace, our banks are focusing only high net worth people to
offer their services.

If banks focus on these areas, then the amount of total investment will exceed the total
amount of high net worth people.

In some cases, to save the tax, people dont show their money and keep it with them
which result decline in its value but if banks do such kind of promotional programs
which make them understand to earn money by investing in different plans and by telling
them the comparative benefits of paying taxes, then in Indian economy, the huge
investment will came out which will boost the economy to grow.

In tier 3 and tier 4 cities, people invested their major parts of savings in following
instruments:-

From the above graph, we could analyze that:

In these areas, people prefer to invest their money in highly liquid assets and safest
investment like current/ saving a/c and FDs, post office schemes and other govt.
securities.

Very few people like to invest in share market and other risky assets for investment.

Even people also do not much prefer gold for investment.

Such kind of instruments people prefer for investment where they seems more stability.

For a moment, if we forgot this recession and talk about previous period till aug. 2007,
then we could see that Sensex was the most volatile against other instruments which
given average return of 16% per annum but with the measured risk between 30% - 35%.

Among these instruments, FDs was the safest for investment although the avg. return
was less than others.

In small cities, some people who are aggressive, they prefer to invest in local instruments
where the liquidity is highest and with the much risk for exp. Local committee, loan to
other with avg. interest rate of 15%.

Investors who are ready to take the advantages of financial services of AnandRathi
Financial Services in these cities:-

We need not to define more this question because graph explaining itself everything. We
asked to investor in the small cities that Would you like if ANANDRATHIs financial
adviser restructure your investments and give high return at low risk at minimal
charges? Then we got the above response that they will take the advantages of financial
services by AnandRathi Financial Services.

In tier 3 and tier 4 cities, people prefer to invest their money in fixed deposits or other
instrument in which life insurance is one of them. In these cities, most of the private
insurance companies, Banks and LIC offer their services but no one offers them the
whole financial services.

No private or govt. bank offering them total financial services because the cost of
personal banking is too high but if they try to initiate these services, then opportunity is
there. In following graph we could see that:-

In the above graph, we could see that:

61% people in small cities having life insurance plan and out of these policy holder,
most of them trust only on LIC.

31% people still dont have any life insurance plan and it means for private companies,
the opportunity is still lying in these cities if the offered attractive plans.

8% people are ready to take the life insurance policy which means the current
opportunity is knocking the door.

Even after the recession and bearing the huge losses in market, majority of investor are
still looking this time as a great opportunity to invest their money right now.

But some investor still believe that Bank FDs and post office scheme are best for them
even they know that they have opportunity to earn the more income by investing now.

Unfortunately we could not predict that fall but now, the market is covering its losses and
trying to come again to the level of growth. And this growth is due to FII and domestic
investors confidence that they are looking the opportunity in Indian economy.

In 2009, market has given more that 80% return from 2008s bottom. And it also became
the worlds fastest covering stock market.

Only because of that fall in last quarter of 2008, people find the best time for investment
because most of the shares fell down by more than 50%.

In the following graph, we could see itself that how much people look this time for
Investments

In the above graph, we could see that:

38% people, which are a big amount, were looking time as a great opportunity to invest.

But 26% people still believe that it is much risky to invest this time as looking a big
volatility in the market.

20% people believe that rather than investing in other instruments, Govt. bond or FDs
are the safest for investment.

And 16% people believe that this volatility could not change their mindset regarding
investment. They take this volatility as a trend of economy.

FINDINGS:-

In this survey, I found that:1) Very few people were aware of wealth
management services.

2) Youths of these cities are also moderate risk taker. Right now they dont want to take
more risk. But if they offered for better return at some risk, then they are ready to take it.

3) Most of the investors do not ask for the advice from any financial expert before
investing. They just invest their money in instrument in which they feel familiar.

4) 92% peoples think that SIP (systematic investment plan) is best way to save money
and 49% of them could save 10%-20% of their monthly income. But they have options
only in Post office schemes or life insurance policies and other kind of govt. schemes.
They are not aware about other plans for investment like mutual funds etc.

5) 38% keep their savings in saving a/c or current a/c and 38% in life insurance, FDs
and other govt. securities and remaining in other securities like gold, share market,
mutual funds etc. even after knowing that they will get very less return on their savings
only because of safety reasons.

6) 82% people in these cities are ready to take the advantages of financial services
provided by AnandRathi Financial Services. They are ready to restructure their portfolio
by financial expert of AnandRathi Financial Services.

7) 31% people of these cities dont have life insurance policy and 8% people were
immediately looking for best life insurance plan. It means opportunities are more in
small cities rather than big cities.

8) As natural, 38% people of these cities take this time as a best time for investment
because of continues uptrend in Indian stock market and economy where 26% take it as a
risky time for investment. But some people as 20% still want to invest in govt. sec. like
in bank, govt. bonds etc.

CONCLUSION;-

I did this survey to know about the views regarding the

investment in small cities as tier 1 and tier 2 cities and look for the scope of Wealth
Management Services in thesecities, I found the following facts:-

Indian investors are very conservative and less risk taker. They prefer to invest their
money into safe securities even they know that they will get the less return on the
investment and may be possible that they could not cover up the inflation rate but still
they prefer to invest in these securities.

If we see the trend of interest rate then we could see how much volatility comes in
interest rate on investment in govt. securities.

According to RBI report, the interest rate on govt. issued securities is around 8%. Interest
rate went up around 14% only in 1996-97 but after it, it never reached on this level. If we
remember, the inflation rate in last year i.e. 2008-09 crossed 13% which mean the people
who have invested their money in govt. security, get the negative return.

This is not because they all are risk averse or they dont want to get more return but it is
because of lack of knowledge and lack of expertise services in small cities. Investors are
not getting the experts services because they are not aware of such kind of services.

I found in my survey that 57% people do not know about the wealth management
services. They take private banks are like traditional banks. But as the time is passing,
people started to move to private banking. If we see the trend of investment in bank
deposits then we find out that

In the above graph, we could see the trend of bank deposit. After reaching at the top in
200405, it started decrease. According to RBI, people now started focusing on other
investment options rather than simple bank deposits.

People now again refer non banking deposits. In the following graph, we could see that.

In the above graph, we could see the upward trend of non-banking securities. After the
199596, when the interest rate on govt. security was around 14%, it was at its peak level
but after declining it, it again started to rise.

It shows that people again started to invest in securities rather than bank deposits.

So far, we thought that young investors are more aggressive than middle age and old age
people but they are now behaving like prudent investor as they are not ready to take
more risk.

Why this change comes? Big volatility in stock market may be one reason for that
change. Many investors lost their money in this volatility in recession. So that affect the
young investors a lot and they behave conservative in risk taking in investment.

Investors of small cities dont take any advice from financial expert before investing
anywhere. But as the scope of Wealth Management Services is increasing day by day, it
bringing the hope that people will take the expertise services of financial expert as in
survey I asked to people that will they take the services of AnandRathi Financial
Servicess in their wealth management, then 82% people shown interest in AnandRathi
Financial Servicess services.

In survey, the result come out that 92% people think that SIP i.e. systematic investment
plan is best way to save money and most of the investors could save 10%-20% of their
monthly income but so far we have seen the trends of govt. securities that now people are
shifting to non-banking deposits.

So where people has started to invest their money.

It is in life insurance schemes in which people started to invest their money. In survey, I
found that 31% people still dont have life insurance plan and 8% people are currently
searching for suitable plan for them. It shows that in insurance sector, still a big area is
uncovered by insurance companies.

Not only insurance sector, stock market is also one of the major sectors of investment
preference. If we see the past trend, then we could find that how fast people are moving
toward stock market.

If we see the above graph, then there is no need to tell about the changing interest of
people to investment and the scope of stock market. After the year 2003-04, the big
moves of trend line in upward explaining everything. In current recession, there is some
change in this trend but it is moving straightly upward.

But in small cities, this trend does not show the true picture. Because the unawareness
regarding stock market was spread in investors like a horror. But looking at this trend, we
could hope that this picture will change very soon if financial services offered on small
levels.

And if we overall analyze it, then it is clearly defined that how investment pattern is
changing of people in India.

Here, only two investment instruments are showing the negative trend i.e. provident fund
and bank deposit but other instruments are showing upward trend like share and
debenture, life insurance, non banking deposits.

It shows that how much opportunity is lying in the market for the Wealth Management
Service provider companies that as the people currently preferring the govt. securities but
how much fast they are moving toward other instruments and giving the opportunity in
market.

LIMITATIONS :-

Here are some limitations of the Research Project which was

faced during the preparation of this project:-

_People were not interested in providing the true financial position of them.

-Time limit was one the limitation in this project. I got approximately 7 weeks
to complete the project.

_Some people were so much busy that they didnt shown their interest in giving
information.

_In secondary data collection, I found problem in collecting the latest reliable data after
recession.

RECOMMENDATION:-

After analyzing the primary and secondary data, I

found that in market, ANANDRATHI is a premiere brand name in banking sector.
Among all the private banks, it has the most goodwill among the people. But there is still
some opportunity is lying in some market which is still unidentified.

Based on collected data and secondary data, I would like to give the following
recommendations to the bank

_AnandRathi Financial Services should focus on upper middle class and middle class for
the Wealth Management Services.

-There is huge opportunity is lying in life insurance and general insurance sector but
majorly ANANDRATHI focus in major cities or tier 1 and tier 2 cities.

_The awareness regarding the Wealth Management Services is not very much in small
cities. So by some promotional programme and advertisements, we could increase the
awareness regarding WMS.

_Right now due to huge volatility, investor became prudent or conservative. But by
majority of people take this time as the best time for investment. So even in this
recession, it providing a great opportunity for ANANDRATHI to make people agree to
invest in market securities. By offering them financial services, bank could gain its
market share.

_In small cities, very few people ask for the advice from financial expert but 82% people
are ready to take the financial services by AnandRathi Financial Services. So it means
this market giving a big scope for financial services. Bank should conduct such kind of
survey to find out their potential clients in these cities.

_A big no. of people consider SIP (systematic investment plan) as a best way for their
monthly saving. So Bank should offer the SIP plans to them in which they could get the
higher return than bank deposits or post office schemes.

_Mutual fund market showing a big opportunity in small cities. When people take SIP as
a best way for saving, but they are not aware regarding mutual fund. So bank should
launch mutual funds schemes in small cities by making them aware regarding the
benefits of it.

_Majority of people like to invest their money in bank deposits or bank FDs but if we
see trend, then people are moving toward shares and debentures and losing their interest
in bank deposits and FDs. so it giving sign of opportunity to bank to launch its services
like demat, life insurance, mutual funds in these cities.

BIBLIOGRAPHY
www.rathi.com
RESERVE BANK OF INDIA:- WWW.RBI.ORG.IN

WWW.GOOGLE.COM

WWW.MUTUALFUNDSINDIA.COM

WWW.VALUERESEARCHONLINE.COM

ECONOMIC TIMES

QUESTIONNAIRE
1) Name : Mr./Ms. ......................

2) Cont. No. .

3) Age group : A) 16 25 b) 26 40 C) 41-55 D) More than 55 yrs

4) Sex : MALE / FEMALE

5) Marital Status: Single Married Divorced

6) Occupation: Service/Business/Professional/ Others

7) No. of dependants:

8) No. of Kids : ..

9) Gross annual income :

A) < 1,20,000 B) 1,20,001 3,00,000 C) 3,00,001 4,80,000 D)>4,80,000

10)Address:

11) Do you aware about the wealth management services by ANANDRATHI?

A) Yes B) No

12) What is your primary investment objective?

I. To earn inflation adjusted returns. II. To preserve the initial capital III. To maximize the
long term growth potential IV. To earn regular income V. To earn a supplement income
and possibly some capital gain.

13) Suppose you have won Rs. 5 Crore in a lottery. Which asset category will you prefer
to allocate your money to?
I. Put the money in Equity shares II. Invest the money in Mutual Funds III. Invest in a
balanced proportion with major allocation to Mutual Funds and shares IV. Invest in
Bonds or Other Instruments to earn higher returns than FDs V. Invest in Bank FDs, Post
Off. Savings, PPF and Other Govt. Schemes

14) From the following 5 possible investment scenario, please select the option which
defines your investment objective?
I. I can consider Loss of 25% if the possible Gains are of 50% II. I can consider Loss of
8% if the possible Gains are of 22% III. I cannot consider any Loss IV. I can consider
Loss of 4% if the possible Gains are of 10% V. I can consider Loss of 14% if the possible
Gains are of 30%

15) Do you take advice from any financial adviser before investing?
A) Rarely B) usually C) Must Ask

16) What kind of investment you prefer?

I. Low risky, Highly near to cash @ less return II. Low risky, Low near to cash @ Avg.
Return III. High risky, High near to cash @ More than avg. return IV. High risky, Low
near to cash @ High Return V. Avg. risk, Avg. near to cash @ Avg. Return

17) Do you believe that systematic saving is easier and efficient way of saving? A) Yes
B) No 16) What amount you could save from your monthly disposable income? A) <
10% B)10% 20% C) 21% - 30% D) 31% - 40% 17) Where is your current investment?
I. Saving/ Current A/c II. Share Market III. FDs/ Govt. Bonds/ Post off. Sch./LIC IV.
Gold V. Other (Specify) .

18) Did you asked any advice from financial expert before these investments? A) Yes B)
No C) Only few tips

19) Would you like if ICICIs financial adviser restructure your investments and give
high return at low risk at minimal charges? A) Yes B) No

20) Do you have any life insurance plan? A) Yes B) No C) Looking for

21) After current recession, in which way you look for market? I. Best time for
investment II. It is risky to invest in todays scenario III. It is only a trend of market, it
does not affect my investment planning IV. Its safe to invest in govt. security or in bank
a/c rather than anywhere else

22) Your view regarding AnandRathi Financial Services or investment:

Thank you

*This information is only for survey use and this information will keep safe and
confidential.