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SUMMER TRAINING PROJECT REPORT “(STUDY ON THE DISTRIBUTION CHANNEL DEVELOPMENT (WEALTH MANAGEMENT) WITH SPECIAL RAFERENCE TO KOTAK MAHIDRA )”

Submitted for the partial fulfillment towards the award of Post Graduate Diploma in Management (PGDM; Approved by AICTE) of Noida Institute Engineering and technology, Greater Noida

Submitted By ANSHU KATIYAR 08133DM013

Under the Supervision of Ms. EKTA SINGH

Department of Management Studies Noida Institute of Engineering and technology, Greater Noida

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DECLARATION

I ANSHU KATIYAR “ Noida Institute of Engineering &Technology ” Greater Noida U.P. Bach (2008-10) PGDM 3rd Semester Roll No. 08133DM013.Here by Declare that this project report on “DISTRIBUTION CHANNEL DEVELOPMENT” Was carried out by me under the super vision of Mr. Anubhav Srivastava Industry Guide Kotak Mahindra old mutual life insurance limited Delhi at “Department of Management Studies Noida Institute of Engineering &Technology Greater Noida” U.P. Submitted in the partial fulfillment for the degree of “Post graduate diploma in management” is the outcome of my work & the same has not been submitted for the award of any other degree, diploma, fellowship or other similar title of any other university.

DATE:

ANSHU KATIYAR PGDM 3rd SEM

PLACE:

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ACNOWLEDGEMENT

The successful and satisfactory completion of any project is the outcome of invaluable aggregate contribution of various people. Although vast and varied reading effort can lead to substantial acquisition of knowledge via boos and allied information sources, true experience results from combination of practical work and right guidance. Even the best efforts can be a waste in lack of proper guidance and advice.

Hence, I would like to extend my thanks to my project guide, Mr. Anubhav Srivastava, Channel Marketing Manager without whom this project would never been successful. I would also like to extend my regards to Mr. Bishwajit Basu (Sr. Branch Manger) for his constant support and cooperation throughout the project.

Lastely I thank the entire kotak group for providing me this huge learning opportunity.

ANSHU KATIYAR

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TABLE OF CONTENT:TOPIC

Page No.

CHAPTER 1:-

Introduction To topic

5

CHAPTER 2:-

Introduction to Organization/Industry

8

CHAPTER 3:-

Importance of study

19

CHAPTER 4:-

Scope Of Study

21

CHAPTER 5:-

Research Design

80

Research Problem

81

Research Objectives

82

Universe/Population of the study

82

Sample Size

82

Sampling Technique

83

Data collection

83

Data analysis

83

CHAPTER 6:-

Data interpretation

84

CHAPTER 7:-

Conclusion

95

CHAPTER 8:-

Recommendations & Suggestions

97

CHAPTER 9:-

Limitation

99

CHAPTER 10:-

Literature review

101

References (Bibliography)

105

Appendix

107

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CHAPTER 1:-

INTRODUCTION OF TOPIC

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Introduction of wealth management:-

A type of financial service that combines personal investment, tax planning strategies. Estate planning and legal counsel. It is designed to provide a broad array of services within the confines of one office.

Wealth management services area in financial sector has been witnessing more attention during last couple of years. Cap Gemini Merrill Lynch Wealth report 2007 cites number of HNWIs 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 effluents. While growing volume of premium services to affluent clients becomes the key driver for most of the services provider firms. Many unique elements inherent to wealth management services Page 6 of 116


requires completely different services offering model then 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.

Wealth managers are setting business goals that require innovative technology solutions to help increase sales, reduce costs, retain existing clients and attract new ones. They are increasingly coordinating.

Processes around their customers. Private banking and wealth management customers are turning cautious with their Investments as they seek better services providers. The quality of services, reporting and investment advice remains some of the important business selection criteria for customers ‘Know all’ advisors. Offering advice across different product types, suggesting unique product type bundling, predicting trends in the local as well as global markets and suggesting investment protection.

Mechanism is key to success of wealth management services, today. With the frequent highs and lows in the banks stable multiple touch points with clients and typically benefit from enduring client loyalty. Markets, there is an apparent disconnect between advisors and customers. Advisors are turning toward fact based analysis and detailed case studies to bridge the gap.

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CHAPTER 2:-

INTRODUCTION TO ORGANIZATION/INDUSTRY:-

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In this chapter we will discuss about Banking Industry, KOTAK MAHINDRA BANK and their vision, mission. We will also discuss about the group companies of kotak Mahindra.

BANKING INDUSTRY In India, Banking industry is regulated by Reserve Bank of India (RBI), which is directly under control of Government of India. Reserve Bank of India (RBI) was established on 1st April, 1935 under the Reserve Bank of India Act. It was a private shareholder’s institution till 1947. The bank was nationalized in 1948 under the RBI Act, 1948. The Reserve Bank of India acts as a banker not only to the central government but also to all state government. It plays a key role by offering all banking service to government by accepting cheques, receiving and collecting payments, transferring funds, etc. Page 9 of 116


In India banking industry is divided in three parts

Public Sector Bank

Private Sector Bank

Foreign Bank.

Public Sector Bank :- Public sector bank are those bank in which government of India have 51% or more then 51% share and the bank run by the government polices. These banks are also known as Nationalize Bank. First time in India on 1st July 1969, at the time of Indira Gandhi when she was a prime minister of India then 14 major commercial banks are nationalized and after that on 14th August 1980 six more banks are nationalized. Industrial development bank of India (IDBI) was established in 1964 as a subsidiary of Reserve Bank of India by an act of the parliament and was made a wholly owned government of India undertaking in 1975. It concludes that in India at present there are 21 Nationalize Bank are working. The Nationalize Bank which are working in India are

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

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Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

State Bank of India

IDBI Bank

ASSOCIATES OF STATE BANK OF INDIA 

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Private Sector Bank: - Private Sector Bank is that bank which is run by private organization and government of India did not have any stake in it. In India, there are many Indian private banks. Some private sector banks are

ICICI Bank

HDFC Bank

UTI Bank/AXIS Bank

Indusind Bank

Centurion Bank

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Karun vyas Bank

Yes Bank

Kotak Mahindra Bank, etc.

Foreign Bank: - Foreign Banks are those banks which are established outside the India and open there branches in India and operating there branches from their mother country. Some of the major foreign banks are

ABN AMRO

STANDARD CHARTEREDING

VASYA BANK

HSBC BANK

CITI BANK

AMERICAN EXPRESS BANK, etc.

KOTAK MAHINDRA BANK The Kotak Mahindra group has long been one of India's most reputed financial organizations, established in 1985. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval creates banking history since Kotak Mahindra Finance Ltd. is the first company in India to convert to a bank

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A license authorizing the bank to carry on banking business has been obtained from the Reserve Bank of India in terms of Section 22 in the Banking Regulation Act, 1949. It must be distinctly understood, however, that in issuing the license, the Reserve Bank of India does not undertake any responsibility for the financial soundness of the bank or the correctness of any of the statements made or opinion expressed in this connection. Kotak Mahindra Bank is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs. 3,100 crore, employs around 9,600 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 300 cities and towns in India and offices in New York, London, Dubai and Mauritius. The Group services around 2.2 million customer accounts. The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Kotak Mahindra Bank is a "20 year old new bank". A part of the Kotak Mahindra Group that came into existence nearly twenty years ago and one of India's leading financial institutions today enjoying the trust and confidence of over 5 lakh customers. Partnering us in our growth has been leading international players like Goldman Sachs (Investment Banking and Equities), Ford Credit (Automobile Finance) and Old Mutual (Life Insurance). We offer a comprehensive range of financial services and are market leaders in Retail Equities, Car Finance and Investment Banking. Our distinguished track record made us India’s first ever company to be converted into a

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bank. As Kotak Mahindra Bank we bring pragmatic, world class financial solutions for Indians the world over.

1986

Kotak Mahindra Finance Limited starts the activity of Bill Discounting

1987

Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

1990

The Auto Finance division is started

1991

The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks

1992

Enters the Funds Syndication sector

1995

Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company

1996

The Auto Finance Business is hived off into a separate company Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group's entry into information distribution.

1998

Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.

2000

Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance

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business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001

Matrix sold to Friday Corporation Launches Insurance Services

2003

Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so.

2004

Launches India Growth Fund, a private equity fund.

2005

Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund

2006

Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

VISION

The global Indian financial services brands – our

customers will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers customized pragmatic solutions across multiple platforms. We will be a world class Indian financial services group. Our technology and best practices will be benchmarked along international lines while our understanding of customers will be uniquely Indian. We will be more than a repository of our customers’ saving. We, the group, will be a single window to every financial service in a customer’s universe. Page 15 of 116


The most preferred employer in financial services – a culture of empowerment and a spirit of enterprise attracts bright minds with an entrepreneurial streak to join us and stay with us. Working with a home-grown, professionally-managed, which has partnerships with international leaders, gives our people a perspective that is universal as well as unique. The most trusted financial services company – we will create an ethos of trust across all our constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust. Value creation – value creation rather than size alone will be our business driver.

GROUP COMPANIES  

Kotak Securities Kotak Mahindra Old Mutual Life Insurance Limited

Kotak car finance

Kotak Prime

Kotak Mahindra Asset Management Company

Kotak home finance

Kotak Securities Kotak Securities Ltd. is one of India's largest brokerage and securities distribution house in India. Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-coordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on well-researched expertise and financial products to the noninstitutional.investors.Its MD is Mr. Narayan S. A.

Kotak Mahindra Old Mutual Life Insurance Ltd.

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MANAGING DIRECTOR – Gaurang Shah Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent

Kotak Mahindra Prime Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 11,000 crores and offers schemes catering to investors with varying risk- return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. KLI, as it is popularly known, offers life insurance to retail customers and also to group business.

KOTAK MAHINDRA LIFE INSURANCE:Kotak Mahindra group is one of India’s leading banking and financial services organizations, with offerings across personal financial services; commercial banking; corporate and investment banking and markets; stock broking; asset management and life insurance. The Kotak Group employs around 20,000 people and has over 1,350

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York, San Francisco, Singapore, Dubai and Mauritius. Old Mutual plc is an international savings and wealth management company based in the UK. Originating in South Africa in 1845, it is among the top 50 largest companies in the FTSE100. The group has a balanced portfolio of businesses offering Asset Management, Life Assurance, Banking and General Insurance Services in over 40 countries, with a focus on South Africa, Europe and the United States, and a growing presence in Asia Pacific. Old Mutual plc employs approximately 53,000 employees worldwide and is listed on the London and Johannesburg stock exchanges.

CHAPTER 3

IMPORTANCE OF STUDY

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RATIONALE BEHIND THE STUDY: Every person saves some part of the income for their future needs.

 Every individual wants to get maximum from their investments.

 Individuals are not aware of various investments options available to them.

 There are various investment options available to the investors.

 The option providing an element of safety & security : Debt instruments

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 Assets with fixed (deterministic) cash flows & fixed maturity : Loans, Bonds

 Assets with fixed cash flows & uncertain m maturity : Insurance Products

 Assets with uncertain cash flows & fixed maturities: Derivatives

 Assets with uncertain cash flows & uncertain maturities: Equity

In the flat words the financial industry has stepped up to its compliance regulations dramatically. So have individual government. The cost of failure is very high. Leaders in the field today have realized that it’s impossible to effectively tackle the task of managing risk and complimented in the flat world without replacing inflexible and obsolete technology with future ready new generation solutions. They understand that doing so enables them to maximize the opportunity of globalization. While minimizing the associated risks. In today’s era every individuals want to minimize the risk and maximize the profitability and to do so wealth management is really a good option available to individuals.

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CHAPTER 4:-

SCOPE OF STUDY:-

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WEALTH MANAGEMENT – AN EMERGING SECTOR:Wealth management services area in financial sector. Hitherto used to be the preserve of some top multinational banks and financial firms- offering exclusive services to a select few has been witnessing more attention during last couple of years. A booming economy, rising stock prices and an increase income and spending power have bought sharp focus on this sector. With an increasing population of High Net Worth Individuals (HNWIs) I, the unsaid tagline of earlier days-”Don’t call us, we’ll call you (if you are wealthy)” seems to be Completed altered in recent times. Considering long term high value business preposition. Number of banks, financial firms and niche players has started offering full length of wealth management services targeted to HNWIs and emerging effluents. As per recently published Cap Gemini Merrill Lynch wealth report 2007, number of HNWIs around the world and value of their assets continuously rising. Number of HNWIs globally is estimated to be around 9.5 million in year 2006. An increase of over 8.35% over previous year. HNWI wealth totals US$37.2 trillion, representing an increase of around 11.4% since 2005. As per report, number of HNWIs in India is increasingly growing at a rate higher than other region of world. Number of HNWIs in India is estimated to be around 100,000 in year 2006 and increase of over 20.5% over previous year. Though, in absolute terms the above numbers appears pretty miniscule (if we compare that

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with the number of the retail investors in India too) however in terms of value it really makes a huge sum of serviceable investment.

HNWI:There is no accurate definition of level of wealth to be considered into category of high net worth individuals (HNWI). The most commonly quoted figure for an individual to be considered High Net Worth is $1 million in liquid financial assets. An investor with less than $1 million but more than $100,000 is considered to be “AFFLUENT�.

RECENT TRENDS OF WEALTH MANAGEMENT FIRMS:Wealth management clients are demanding comprehensive and tailored services, with bespoke investment options. They are also keen to maintain relationships with multiple banks, to compare offerings and opt for the best. Banks are sparing no efforts to strategically transform their product offering and services, while revamping their technology infrastructure to differentiate themselves from competition. The wealth management space is now being catered to by different types of firms including brokers, private banks, retail banks and insurance houses. And all of them are vying for the same clients – the booming mass affluent segment and the high net worth segment. Wealth management firms are making strategic investments to differentiate themselves in the eyes of existing and would be high net worth and ultra high net worth clients. Insurance firms, brokerage services firms and retail banks are investing heavily on the advisor centric model and each one is trying to be the chosen wealth manager for the retirement segment as well as for the younger generations. This has resulted in direct competition in a space.

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Dominated, till recently by private banks and trusts. As a result, each of these players is looking at how best to differentiate its offering. Clearly, then as wealth management firms increasingly complete for the same high net worth clients, and clients themselves become more demanding, the pressure is on firms to understand the essence of clients needs in existing and growth markets, even if they have already devolved an accurate understanding of high net worth individuals in their established markets. Without this insight, firms will find it difficult to develop an attractive proposition. As a result, banks are moving away from the conventional pure product focus and focusing on total solutions that are completely oriented to clients needs.

TRENDS IN INVESTMENT PATTERN:The diverging investment environment in the two halves of 2007 helped define high net worth asset allocation strategies. Based on steady market returns from 2006. Asset allocations of high net worth individuals were biased heavily on riskier asset classes. However, towards the end of with 2007 and into the middle of 2008, the turmoil in the financial markets has forced investors to shift towards safer, less volatile asset classes like cash deposits and fixed income. Key trends have resulted in high net worth assets allocation strategies include:-

•

Cash deposits and fixed- income securities seeing a jump in asset allocation and currently accounting for 25% of the portfolio.

•

Equity holdings remaining more or less constant but seeing an increasing trend towards private equity over public equity keen to maintain relationships multiple banks, to compare offering and opt for the best.

•

Percentage of allocation to alternate investments and real estate going down significantly their rapid changes in asset allocation strategies based

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on dynamic market place in banks reviewing product offerings and offering innovations on current products, while trying to move client’s holdings to safer investment.

Banks have realized that product range and features are key differentiators in today’s fierily competitive and largely unpredictable market. The manufacture of products is not every bank’s cup of tea and the ‘gap’ in product offering is catered to by distributing products originating from other issuers. While manufacturing products is definitely the way forward distributing income continues to be a key revenue stream. The investment domain spans across a wide range of products there is a definite shift from traditional investments in funds. Equities and fixed income to alternate investments like structured products, real estate, private equity and hedge funds. Banks have also realized the benefits of innovation in terms of product bundling and utilization of customers ‘sleeping assets.’ Loan products bundled with insurance, margin lending, self funding installments to gain geared share exposure, and bundling of banking and investment products are some interesting products on showcase. At a very high level and models currently deployed are:

Transactions

Investment management

Wealth planning

The transactions model includes pure play brokers who facilitate investments in basic assets classes and products experts driving transactions through sophisticated products.

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The investment management model includes advisor and relationship managers who plan determine and advise customers in the pre and post investment phase

The wealth planning model offers holistic advice in accordance with client’s finances and goals. These could encompass arenas such as real estate, retirement and generational wealth transfer

KEY COMPONENTS OF WEALTH MANAGEMENT:Banking Products

Loans, Cash, Accounts, Deposits

Investment Products

Equity, fixed income, Investment funds

Alternatives

Private investment, Hedge

investments

funds

Insurance products

Life insurance, Non life insurance

Normal investment accounts

Pension accounts

Super annotation accounts Page 26 of 116


WEALTH MANAGEMENT OVERVIEW:-

CLIENT PROFILING AND ASSESSMENT OF INVESTMENT

PORTFOLIO STRATEGY:Defining portfolio management strategies Portfolio modeling, Determining of constituents and allocation of assets.

STRATEGY IMPLEMENTATION Implementation, Rebalancing and divestment of assets. Managing transaction process, benefit processing, Tax management, Accounting Reconciliation.

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FINANCIAL PLANNING:Clients profiling takes in account multitude of behavioral, demographic and investment characteristic of a client that would determine each client’s wealth management requirement. Some of key characteristic to be evaluated for defining client’s investment objectives 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 Shari laws)  Behavioral history (pattern of past investment decision)  Level of clients engagement in investment management (active/passive)  Present investment holding and asset mix

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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 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 don’t outlive their money) After establishing investment objectives, a broad framework for harnessing possible investment opportunities are formulated. Their 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 life style assets (car, boat, and 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 belief 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 a client expectations.

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Guided with the investment strategy, consitituents in portfolio model are determined. Which would directly and efficiently contribute towards client’s investment objectives? Thus, 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 and variable rate bonds, long and short maturity bonds, deep discounted and 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 (weight age) of each individual constituent in the portfolio.

STRATEGY IMPLEMENTATION:Having decided the portfolio constituents and its composition, transactions to acquire specific instruments and identified asset class is imitated. 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.

APPROACH OF WEALTH MANAGEMENT COMPANIES:Generally financial advisors begin with a complementary initial meeting with the clients to discuss their strategic planning and investment needs, explain our process, including available options and determining the next course of action. During the planning and implementation stage, normally following areas are addressedIdentifying financial and lifestyle goals. Explaining the various risks associated with individual investment. Developing a personal investment risk profile. Reviewing insurance and risk management strategies. Reviewing estate planning.

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Reviewing family business succession planning issues. Exploring various investment strategies and their preparing a statement of advice with a range of options possible outcomes refining the final recommendations. aImplementing strategies and placement of investments. Discussing the structure of ongoing management services available,

INVESTMENT OPTIONS AVAILABLE TO INVESTORS :- (MANAGED FUNDS) Managed funds are investment vehicles that pool the funds of many investors to purchase assets such as shares, property and bonds. This generally allows greater diversification than investing as an individual. A professional investment manager has operational and investment management responsibilities for the funds and investors share in the returns and the risks of the investment portfolio. In most cases investors have easy access to their funds

DIRECT SHARES:For investors who wish to own a portfolio of shares directly. Financial advisors in conjunction with selected stockbrokers can offer a managed, proactive service designed to meet individual investor’s needs. Services include: Investment research Investment seminars Access to margin lending facilities Advice on portfolio construction Stock selection Portfoilo review service

MARGIN LENDING:Page 31 of 116


Margin lending is a facility that allows investors to use their investments in shares or managed funds as security for their borrowing, which in turn can fund that purchase of additional investments

RECENT EMPHASIZING TRENDS:School fees can place a considerable burden on cash flow. A simple and effective way to help ensure these costs can be met is to start a saving plan specifically for the children’s education. Saving plans can consist of an account with a bank or credit union. An investment a managed funds or shares, or a combination of these. Superannuation can be viewed as your employer in retirement. It is from this source that many of us draw our income to fund the lifestyle we strive for in retirement. Most superannuation funds offer a diversity of investment strategies ranging from model portfolios (such as conservatives balanced. Aggressive) to a range of investor choice options, where the client chooses the individual investments with the assistance of their advisor. Choosing the correct investment vehicle and the current investment strategy can have a major impact on the end result. Generally financial advisors offer a choice of superannuation funds and investment strategies including: Retail superannuation funds Wrap accounts Master funds Self-managed superannuation funds Financial advisors can guide you through the maze of superannuation providers and your investment options.

PERSONAL RISK PROTECTION:Page 32 of 116


Have you ever considered the impact on your family or business if you suffered a serious accident or illness, become totally disabled or died prematurely? Insurance is an important risk management tool that can protect you. Your family and your business from financial hardship caused by unplanned events. Our advisors can assist you to identify the risks determine the most cost effective solution and implement a risk management program which has been tailored to suit your specific requirement. Financial advisors provide advice on the following areas:-

Income protection (sickness and accident) Life cover Spouse protection Critical illness cover Total and permanent disablement (TPD) Partnership/ (equity protection) Key person cover Buy/sell arrangements Estate and asset protection Business succession planning

SUCCESSION PLANNING:There are critical times in the life of business and the family when succession issues come to the fore. Financial advisors can introduce a succession planning facilitator to specifically cater for your family’s succession planning needs. The role of succession planning facilitator is to establish a communication structure and an action plan. Succession planning can have many personal, family and financial benefits, including Page 33 of 116


Identifying and resolving specific issues. Increasing financial securities for each generation. Increasing personal motivation and family cooperation. Improving business and personal communication. Creating opportunities for the family business to realize its potential and profitability Establishing direction and clarity of goals

HOW KOTAK MANAGES THE WEALTH:Kotak manages the wealth of their customers by providing various services. Kotak group provides following services.

BANKING SERVICES: - under this head kotak provides various accounts to their customers. Kotak provides three types of their customer. 1. Saving account 2. Current account 3. Term deposit

SAVING ACCOUNT: - Savings accounts are designed to ensure you receive the benefits of quick & convenient banking transactions along with options for your money to earn high returns. The savings account goes beyond the traditional role of savings, to provide you a range of services from funds transfer options to online payments of bills to attractive returns earned through comprehensive suits of investment options. The various saving account options available to customers are. 1. Ace saving account

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2. Pro savings account 3. Edge savings account 4. Nova savings account 5. Easy savings account (no frills account) 6. Corporate salary account

ACE SAVINGS ACCOUNT: - Kotak Mahindra bank’s ace savings account has been designed as a gateway to a world of financial benefits and privileged banking transactions. The account carries benefits ranging from personal investment advisory services to free banking transactions. You will find that this package of services and privileges is unmatched by any other savings account in the market.

Features and Benefits: Free access at all domestic and international VISA ATM’s you no longer have to worry about locating your bank or partner bank ATM – use the first VISA ATM that you spot, for free cash withdrawal or balance enquiry transactions. So walk into any VISA ATM in India or abroad to withdraw and balance enquiry. Multiple access channels access your account anytime through your landline, mobile phone and internet to get information on your account balance or track your transactions. You can even transfer funds through phone banking or net banking. Financial payments facilitated through the saving account use the free kotak payment gateway to make online payments for your utility bills, credit cards, online trading of shares or even online shopping. All this at the click of a mouse! Transfer funds easily and with speed, to a beneficiary account at another bank. You can avail of this facility by walking into any of our branches or by simple logging on to net banking. You also get a free multi city cheque book so that money from your account is transferred to the beneficiary’s account at any of our branch locations, in the fastest possible time.

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Free banking transactions you can issue demand draft or send cheques for collection anywhere in the country for no extra charge. Active money earn better returns in your savings account, with our active money facility that automatically sweeps out idle funds, above a threshold, from your account into term deposits. These term deposits sweep back into your account to meet funds requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity. Free investment account uses the net banking facility to purchase/redeem mutual funds online while directly debiting/crediting your bank account. Further you get a free investment account for tracking your investments with the bank. This account provides you a consolidated view of all mutual fund investment across schemes with updated return status, latest NAV information and research reports.

ACE Saving Bank Accounts

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Feature

Particular

Accounts

Ace

Average Quarterly Balance

Rs.75000

Investment account

Free

Additional Saving Account

3 NOVA a/c

Sweep

2-way sweep

Rs.150000

DD/BC

On branch location

Free Unlimited

non-branch location

Free Rs.30 lacs

Debit card

Free for life

Add on card

Free

Own/HDFC ATM

Free

VISA ATM

Free

At par cheque

Free

Pre-Carbonated

Free

Demat account

Free

Home banking

Free

Internet banking

Free

Cards

Cheque book

Other

PRO SAVINGS ACCOUNT: - unlimited access your bank account at over 35,000 VISA and Cash net ATM’s in India and over 388,000 Merchant establishments which accepts VISA credit/debit cards in India.

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Multiple channels access your account through your phone, mobile phone or internet to get information on your account balance or track your transactions. You can even transfer funds through phone banking or net banking. You can open a free investment account, and use the net banking facility to purchase/redeem mutual funds online while directly debiting/crediting your bank account. Besides this you get a consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports.

PRO Saving Bank Accounts Feature

Particular

Pro

Accounts

Average Quarterly

Rs.20000

Balance Investment account

Free

Additional Saving Account

1 NOVA a/c

Sweep

2-way sweep

Rs.40000

DD/BC

On branch location

Free Unlimited

non-branch location

Free Rs.5 lacs

Debit card

Free for life

Add on card

Charged

Own/HDFC ATM

Free

VISA ATM

Free

At par cheque

Free

Pre-Carbonated

Free

Demat account

Free

Cards

Cheque book

Other

Page 38 of 116


Home banking

Free

Internet banking

Free

NOVA SAVINGS ACCOUNT: - Nova savings account is complete financial package customized to suit individual banking needs. Our constant Endeavour is to enable regular financial transactions through our online platform so that most of your payments can be made directly through your account or card.

Features & Benefits: - Unlimited access your bank account at over 35.000 VISA ans Cash net ATM’s in India and over 388,000 Merchant establishments which accepts VISA debit/credit cards in India.

Edge Saving Bank Accounts

Feature

Particular

Edge

Average Quarterly Balance

Rs.10000

Investment account

Free

Additional Saving Account

NA

Sweep

2-way sweep

Rs.20000

DD/BC

On branch location

Charged

non-branch location

Charged

Debit card

Free for 1st year

Add on card

Charged

Own/HDFC ATM

Free

VISA ATM

Charged

At par cheque

Free

Accounts

Cards

Cheque book

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Other

Pre-Carbonated

No

Demat account

Free

Home banking

Charged

Internet banking

Free

CURRENT ACCOUNT Kotak Mahindra Bank has three types of current accounts. Which are as follows-?

Ace accounts

Pro accounts

Edge accounts

Elite accounts

ACE Current Accounts

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Feature

Particular

Ace

INTEREST

ON CURRENT ACCOUNT

YES

Accounts

Average Quarterly Balance

Rs.250000

Investment account

Free

Additional Saving Account

3 Nova SA

Sweep

2-way sweep

Rs.500000

DD/BC

On branch location

Free unlimited

non-branch location

Free up to 30 lacs p.m.

Debit card

Free for 1st year

Add on card

Free for 1st year

Own/HDFC ATM

Free

VISA ATM

Free

At par cheque

Free

Pre-Carbonated

Free

Demat account

Free

Home banking

Free

Internet banking

Free

Cards

Cheque book

Other

PRO Current Account Page 41 of 116


Feature

Particular

Ace

Accounts

Average Quarterly Balance

Rs.50000

Investment account

Free

Additional Saving Account

1 Nova SA

Sweep

2-way sweep

Rs.100000

DD/BC

On branch location

Free unlimited

non-branch location

Free up to 5 lacs p.m.

Debit card

Free for 1st year

Add on card

Charged

Own/HDFC ATM

Free

VISA ATM

Free

At par cheque

Free

Pre-Carbonated

Free

Demat account

Free

Home banking

Free

Internet banking

Free

ON CURRENT ACCOUNT

YES

Cards

Cheque book

Other

INTEREST

Edge Current Accounts

Page 42 of 116


Feature

Particular

Edge

Accounts

Average Quarterly Balance

Rs.25000

Investment account

Free

Additional Saving Account

Nil

Sweep

2-way sweep

Rs.50000

DD/BC

On branch location

Free unlimited

non-branch location

Charged

Debit card

Free for 1st year

Add on card

Charged

Own/HDFC ATM

Free

VISA ATM

Charged

At par cheque

Rs.2 per leaf

Pre-Carbonated

Rs.4 per leaf

Demat account

Free

Home banking

Free

Internet banking

Free

on current account

YES

Cards

Cheque book

Other

Interest

ELITE CURRENT ACCOUNT: - Kotak active money gives you the unique opportunities to maximize your returns while offering liquidity at the same time. Daily balances in your current account, above a certain amount are automatically swept into fixed deposits. The ‘swept out amount’ is brought back into the account to meet funds requirements when the account balance goes below the threshold level. So you not only enjoy attractive returns on your idle balances but also maximize liquidity.

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Unsecured overdraft facility with our unique feature credit access. You can avail over draft facility up to Rs 10 lacks on your account for your business needs and emergencies. This facility is available after 6 months of account relationship with the bank. Free demand draft enjoy the benefit or 100 DDs per month payable at more than 125 kotak branch locations & DDs up to Rs 10 lakhs per month payable at more than 1000 kotak non branch location absolutely free! Free NEFT all NEFT transactions done through branch or net banking are absolutely free! Transfer funds across all major banks covering more than 10000 branches at more than 200 locations in India

LIFE INSURANCE: Kotak provides various different life insurance plans for different customers to suit their needs. These are:

 Kotak Smart Advantage Plan  Kotak External Life Plans  Kotak Smart Advantage Plan  Kotak External Life Plans  Kotak Head start Child Plans  Kotak Safe Investment Plan ||  Kotak Flexi Plan  Kotak Easy Growth Plan

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 Kotak Capital Multiplier Plan  Kotak Term Plan  Kotak Preferred Term Plan  Kotak Chid Advantage Plan  Kotak Retirement Income Plan  Kotak Retirement Income Plan (Unit Linked)  Kotak Endowment Plan  Kotak Money Back Plan  Kotak Premium Return Plan  Riders

Every step in your life brings with it new learning’s. You are determined to make the best of it, so that you can look forward to a great future. How you shape your tomorrow depends greatly on how you build on your today.

Kotak life insurance introduces Kotak Smart Advantage, a great combination of investment with insurance, to put your savings to work today. It is a market linked plan with100% premium allocations helping you accumulate wealth systematically, over the Long-term. This plan offers the following key benefits.

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Guranteed returns of up to 275% of your first year premium at maturity

Assured bonus additions at regular intervals during the policy term to enhance your fund value

100% Allocation of your premiums from second year onwards to maximize your earnings potential

A unique fund offering you the maximum opportunity for growth

Option to maximize protection for your loved ones

Applicable for premium sizes of Rs 36000 and above annually from second year onwards.

INVESTMENT PATTERN

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Kotak External Life Plans are participating whole life plans that provide enhanced protection till the golden age of 99. The plans provide for a high cover at lower premium, cash lump sum benefits at desired stage and a way to care for your spouse in the second innings of life.

With guaranteed protection for life, opportunity to create wealth, and comprehensive cover options, these plans provide you withal perfect financial solution to suit your needs.

What can External Life do for you?

¡

Provides you with lifelong protection which continues well beyond retirement to ensure that your loved ones remain secure, irrespective of the uncertainties in life.

¡¡

Enables a high amount of insurance cover at affordable premiums which takes into account you’re growing responsibilities and keeps pace with increasing needs.

¡¡¡

Offers liquidity for planned & unplanned needs so that you have access to your money when you need it the most, adding to your comfort & security at important stages in life.

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¡¡ ¡¡

Present options & solutions that suit your personal preference which enables you to make a decision that is more suitable & beneficial for you.

INVESTMENT PATTERN

Every child is different. Each has their own set of dreams and aspiration. As a parent you would like to provide your child with all the building blocks that could develop his or her potential to the fullest. This could mean extra coaching or tuition for talented children, special training or equipment for natural athletes or professional training for born singers.

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Headstart Child Plans – a specially tailored, cost-effective plan, aims to give your children the financial means to pursue his or her dreams and live them. The plan offers the following advantages

Choice of 2 plan variants

Future Protect

Assure Wealth

Maximizes wealth while providing protection

Joint life option

Save for 2 children with one plan

Additional bonus units

Flexible Withdrawal

_____________________________________________________________________

INVESTMENT PATTERN

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Kotak Safe Investment Plan II is a unit linked plan that combines that combines the benefits of insurance & capital market returns into one. This plan from the stable of Kotak Life Insurance is a true reflection of the company’s essence: innovation that will benefit the investor. What makes investing in Kotak Safe Investment Plan II truly unique is that you enjoy a Guaranteed Maturity Value, with varying degrees of equity exposure depending on your risk appetite. So, if the market value of your units is higher, you reap the benefits with the peace of mind that whilst in a bear market your investment is under-pinned by the Guaranteed Maturity Value. And there’s more, the returns are totally tax-free.

INVESTMENT PATTERN

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There may be times when you wish there was an answer to your financial worries. A solution that allows you to take control of your investments. A way to provide for your family’s future goals and expenses, and to protect your family from the harsh uncertainties of life; be it death, disability or illness. Here is “Kotak Flexi Plan� which is designed to do just this. It comes to you with the option of investing in six professionally managed funds, allowing you to allocate your investment in a combination of one or more funds, switch between them & take charge of your investments. The plan aims to earn efficient returns over the long term & help you plan for your financial goals, with the comfort of a guaranteed Maturity value. More importantly, it ensures that your loved ones are protected, if any unfortunate events were to take place.... a plan that gives you complete control.

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INVESTMENT PATTERN

Kotak Easy Growth Plans are single premium; market linked insurance plans that keep pace your ever growing success. It not only helps you save for the future but also lets you reap rich benefits from the investments of your choice. The undisputed advantage of these plans is its simplicity. This simplicity stems from our clear understanding of what would appeal to a customer who is looking for a hassle free investment option.

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INVESTMENT PATTERN

The Kotak Capital Multiplier Plan is a participating plan that is built in such a way that it allows your money to multiply, and gives you the flexibility of using this money the way you need it, in regular withdrawals. This is an endowment plan, which is very flexible, and has a lot of other in-built benefits.

INVESTMENT PATTERN

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Kotak Term Plan is a pure risk product that aims to cover your life at a nominal cost. You may want to take this plan to cover your outstanding debts like a mortgage, a home loan etc. Since, this is a pure risk cover product; there is no maturity benefits payable on survival. This is a non-participating plan.

INVESTMENT PATTERN

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The Kotak Preferred Term Plan is designed to provide you with reduced premium rates for a SUM assured of Rs 10 Lacks & above. Only males over the age of 18 yrs, who do not use tobacco in any form. And females over the age of 18 yrs are eligible for this plan.

INVESTMENT PATTERN

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The kotak Child Advantage is an investment plan to design to meet your Childs future financial needs. It’s a plan that gives your child “azadi” to realize his dreams. The plan is a participating plan with a 15 days free look period.

INVESTMENT PATTERN

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The kotak Retirement income plan is a savings plan designed to meet your post retirement needs. It is a plan that gives you “Jeene ki Azadi�. It gives you the choice to remain independent even after retirement. The Kotak Retirement Income Plan is a participating plan.

The Plan comes in two Forms... 1.) With Cover

2.) Without Cover

INVESTMENT PATTERN

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How well you save and invest today will make all the difference tomorrow between having to work & choosing to work. There is no better time than the present to plan for what should be the best years of life your retirement. By the time you retire, costs of living would have increased substantially making even the most basic commodities like milk &

vegetables costlier by probably five times. Medical costs would have doubled or more. An ideal retirement solution is the one that gives you complete flexibility and peace of mind. Not only while you save for your retirement but also after have had you retired. To help you plan towards the golden years of your life, we present to you the Kotak Retirement Plan (Unit Linked). An investment plan designed to secure your future it assures that even though you have stopped working, your income does not. It is offered to you in three versions – Regular Premium, With Cover & without Cover, in addition to a single premium version. The regular Premium options come with the Kotak “seal of Guarantee�@. These plans have been designed to ensure that your money earns you handsome returns, safe from the vagaries of the Capital Market, so that you can retire comfortably & securely. Page 58 of 116


Please note that in these plans, the investment portfolio is to be borne by the policy holder. However, Kotak Life Insurance offers you a BASIC Sum Assured/Guaranteed Maturity on the Regular Premium versions of this plan to safeguard against the, downside risk of falling markets.

INVESTMENT PATTERN

Kotak Endowment Plan is a protection plan that covers your life and at the same time endures that your money does not lie idle. It invests a portion of your Premium in financial instruments & insures a considerable growth in savings. This is a participating plan (With Profit)

INVESTMENT PATTERN

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The kotak Money back plan not only covers your life, it also assures you a certain percent of the sum assured as cash payment at regular intervals of every five years. It is a savings plan with the added advantages of life cover & regular cash flow. This plan is ideal for planning special moments like A Wedding, Your Childs Education, or Purchases of an asset etc. This is a Participating plan (with profit).

INVESTMENT PATTERN

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This plan is a sure and secure insurance option without the hassles or worries of a conventional insurance plan with minimal paper work and procedures; you get the dual benefit of a risk cover and savings. At the end of the term, a minimum of the Premium paid by you will be returned pending on the option you choose. In other words this is a term plan that makes financial sense by offering maturity benefits as well.

INVESTMENT PATTERN

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Every person has a different need and we at kotak life insurance recognize this. To give you the flexibility to customize and enhance your cover, we offer a set of riders which you may opt for a long with your basic policy and shape your policy to suit your individual needs.

The riders may be availed of at the time of purchasing the plan, at the nominal cost. The maximum amount of benefit you can avail is equal to the basic SUM assured. The aggregate premium on all value-adds should not, however exceeds 30% of the basic premium.

EXPLANATION:

DEBENTURE: A debenture is a debt issued by a company, which offers to pay interests in lieu of the money borrowed for a certain period. In essence it represents loan taken by the issuer who pays an agreed rate of interest during the life time of interest & repays the principal normally unless otherwise agreed on maturity. It is of following types:

NON CONVERTIBLE DEBENTURES (NCDs) PARTY CONVERTIBLE DEBENTURES (PCDs)

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FULLY CONVERTIBLE DEBENTURES (FCDs) OPTINALLY CONVERTIBLE DEBENTURES (OCDs) SECURED CONVERTIBLE DEBENTURES (SCDs)

ZERO COUPON BONDS: A plain bond is offered at its face value, earns a stream of interests till redemption and is redeemed with or without a premium at maturity. A Zero Coupon Bond is issued at a discount to its face value fetches no periodic interests and is redeemed at the face value at maturity.

P.C.F (PASS THROUGH CERTIFICATES): When mortgages are pooled together and undivided interest in the pool are sold pass through security are created. The pass through securities promise that the cash flow from the underlined mortgages would be passed through to the of the securities in the form of monthly payments of interests and principals.

FUNDS OF FUND (F.O.F): Is a scheme which invests in other liquid funds.

COMODITY BONDS (C.B): Are bonds issued to share the risk & profitability of future commodity bonds. E.g. Petro Bonds

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T-BILLS (TREASUREY BILLS): Issued by the central government to meet their short term deficiencies and is mostly placed privately by the central bank & is issued for the tenure of 14 days, 91 days, 182 days, and 364 days & is issued on every Friday & alternate Wednesdays.

COMERCIAL PAPERS (C.P.) It is an unsecured money market instrument issued in the form of promissory notes to diversify their sources of short term borrowing & to provide an additional route to investors.

DEPOSITE:

If one is existing customer, one can place a term deposite

through phone banking or net banking. What’s more, you can even renew this deposited by replacing an instruction over phone. Needless to mention, he can do all this and more by walking across into any of our branches.

Liquidity through over draft sweep in facility your deposited will be available to you, should you need them in case of an emergency. One can avail up to 85% over draft against your term by paying 2% above your deposited rate. This facility is available for deposits above Rs 50 Thousand for tenure of 181 days or more. One can also choose to link your term deposited to your savings/current account, whereby if need be, your term deposited will automatically be encased to meet your withdrawal requirement. No penalty on pre-matured encashment in case your term deposited is prematurely encased; you will earn interest at the rate prevailing on the date of deposit for the withdrawn amount.

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Nomination facility available you can avail this facility for each & every account that you open with us i.e. nominate different persons for different terms deposited accounts. You can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposited.

Incase you are availing the 2-Way-Sweep feature, nomination, if any, made by you n respect of the savings/current account for which you are availing this feature will be deemed to be the nomination for any sweep TD created pursuant to the active money feature availed by you.

BESIDE ALL THESE SERVICES KOTAK PROVIDES VARIOUS FUNDS WHICH BASICALLY EMPASISES ON THE COMBINATION OF DEBT & EQUITY THESE ARE:

KOTA30:

It is a basically an open ended scheme whose salient features

are as follows:

•

Investment Pattern

Benchmark

Index A Portfolio of Equity & Equity related securities

S&P CNX

Nifty Security of around 30 companies which may go up to 39 companies

Page 65 of 116


Invetment Horizon

Estimated Recurring

Expenses 1 – 3 Year

2.50%

Investment Options

Dividend Frequency

Growth Dividend Payout Re-Investment

Minimum Investment

at the Discretion of Trustees

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak 30

Systematic: Rs 1000/-

Minimum Redemption Size

Payout Schedule

Rs 1000/ - or 100 Units

Transaction day + 3 Working days

DEFINATION: S&P CNX Nifty nicknamed nifty 50 or simply nifty (NSE: ^NSEI), is the leading index for large companies on the national stock exchange of India. The Page 66 of 116


NIFTY is of well diversified 50 stock indexes accounting for 22 sector of the economy. It is used for a variety of purposes such a benchmarking fund portfolios, index based derivatives and index funds, these companies are;

 ABB LTD, ELECTRICAL EQUIPMENT, ABB, EQ, INE117A01022  ACC LTD., CEMENT & CEMENT

PRODUCTS, ACC, EQ, INE012A01025  AMBUJA CEMENT LIMITED, CEMENT & CEMENT PRODUCTS, AMBUJA CEM, EQ, INE079A01024  AXIS BANK

LTD., BANKS, AXIS BANK, EQ, INE238A01026  BHARAT HEAVY ELECTRICAL LTD., ELECTRICAL EQUIPMENT, BHEL, EQ, INE257A01018  BHARAT PETROLEUM CORPORATION LTD., REFINARIES, BPCL, EQ, INE029A01011

 BHARAT AIRTEL LTD., TELECOMUNICATION SERVICES BHARTI ARTEL, EQ, INE397D01016  CAIRN INDIA LTD., OIL EXPLORATION/PRODUCTION, CAIRN, EQ, INE910H01017  CIPLA

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LTD., PHARMACEUTICALS, CIPLA, EQ, INE059A01026  DLF LTD., CONSTRUCTION, DLF, EQ, INE271C01023  GAIL, (INDIA) LTD., GAS, GAIL, EQ, INE129A01019  GRASIM INDUSTIES LTD., CEMENT & CEMENT PRODUCTS, GRASIM, EQ, INE047A01013  HCL TECHNOLOGIES LTD., COMPUTERS SOFTWARE, HCLTECH, EQ, INE860A01027  HDFC BANK LTD., BANKS, HDFCBANK, EQ, INE040A01018  HERO HONDA MOTORS LTD., AUTOMOBILES -2 & 3WHEELERS, HEROHONDA, EQ, INE158A01026  HINDALCO INDUSTRIES LTD., ALUMINIUM, HINDALCO, EQ, INE038A01020  HINDUSTAN UNILIVER LTD., DIVERSIFIED, HINDUNILIVER, EQ, INE039A01027  HOUSING DEVELOPEMENT FINANCE CORPORATION LTD., FINANCE HOUSING, HDFC, EQ, INE001A01028  ITC LTD., SIGARETTES, ITC, EQ, INE154A01025  ICICI BANK

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LTD., BANKS, ICIACI BANK, EQ, INE090A01013  IDEA CELLULAR LIMITED, TELECOMUNICATION SERVICES, IDEA, EQ, INE669E01016  INFOSYS TECHNOLOGIES LTD., COMPUTERS SOFTWARES, INFOSYSTECH, EQ, INE009A01021  JINDAL STEEL & POWER LIMITED, STEEL & STEEL PRODUCTS, JINDAL, STEEL, EQ, INE749A01030  LARSEN &TURBO LTD., ENGINEERING, LT, EQ, INE018A01030  MAHINDRA & MAHINDRA LTD.,AUTOMOBILES -4 WHEELERS, M&M, EQ, INE101A01018  MARUTI SUZUKI INDIA LTD, AUTOMOBILES -4 WHEELERS, MARUTI, EQ, INE585B01010  NTPC LTD., POWER,NTPC,EQ, INE733E01010  NATIONAL ALUMINIUM CO., LTD., ALUMINIUM, NATIONALUM, EQ, INE139A01026  OIL & NATURAL GAS CORPORATION LTD., OIL EXPLORATION/PRODUCTION, ONGC, EQ, INE213A01011

Power Grid Corporation of India ltd., PowerGRID, EQ, INE752E01010

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Punjab National Bank, BANKS, PNB, EQ, INE160A01014

Ranbaxy Laboratories Ltd., PHARMACEUTICALS, RANBAXY, EQ, INE015A01028

Reliance Capital Ltd., FINANCE, RELCAPITAL, EQ, INE013A01015

Reliance Communications Ltd., TELECOMUNICATION SERVICES, RCOM, EQ, INE330H01018 Reliance Industries Ltd., REFINARIES, RELIANCE, EQ, INE002A01018

Reliance Infrastructure Ltd., POWER, RELINFRA, EQ, INE036A01016

Reliance Power Ltd., POWER, RPOWER, EQ, INE614G01033

Siemens Ltd., ELECTRICAL EQUIPMENT, SIEMENS, EQ, INE003A010124

State Bank of India, BANKS, SBIN, EQ, INE062A01012

Steel Authority of India Ltd., STEEL & STEEL PRODUCTS, SAIL, EQ, INE114A01011

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Sterlite Industries (India) Ltd., METALS, STER, EQ, INE268A01031

Sun Pharmaceutical Industries Ltd., PHARMACEUTICALS, SUNPHARMA, EQ, INE044A01028

Suzlon Energy Ltd., ELECTRICAL EQUIPMENT, SUZLON, EQ, INE040H01021

Tata Communications Ltd., TELECOMUNICATION SERVICES, TATACOMM, EQ, INE151A01013

Tata Consultancy Services Ltd., COMPUTERS SOFTWARE, TCS, EQ, INE467B010129

Tata Motors Ltd., AUTOMOBILES – 4 WHEELERS, TATAMOTORS, EQ, INE155A01014

Tata Power Co. Ltd., POWER, TATAPOWER, EQ, INE245A01013

Tata Steel Ltd., STEEL & STEEL PRODUCTS, TATASTEEL, EQ, INE081A01012

Unitech Ltd., CONSTRUCTION, UNITECH, EQ, INEE694A01020

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Wipro Ltd., COMPUTERS – SOFTWARE, WIPRO, EQ, INE075A01022

KOTAK MID – CAP : It’s a basically an open ended scheme whose salient features are as: Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related instruments

Investment Pattern

Benchmark Index

Equity & Equity related securities: 65% -

CNX Midcap 95%

Debt & Money Market instruments: 5% -

Invetment Horizon

35%

Estimated Recurring

Expenses 1 – 3 Year

2.50%

Investment Options

Dividend Frequency

Growth Dividend Payout Re-Investment

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at the Discretion of Trustees


Minimum Investment

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak Mid-Cap

Systematic: Rs 1000/-

Minimum Redemption Size

Payout Schedule

Rs 1000/ - or 100 Units

Transaction day + 3 Working days

CNX Midcap 200 represents about 72% of the total market capitalization of the Mid-Cap Universe & about 70% of the total traded value of the Mid-Cap Universe (Mid-Cap Universe is defined as stocks having average six months market capitalization between Rs.75 crores & Rs.750 crores).

KOTAK Opportunities: It’s an open ended scheme whose main features are as follows.

 Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related instruments.

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 Investment Pattern

Benchmark Index

Equity & Equity related securities

65% – 95%

S & P CNX 500

Debt & Money Market Instruments 5% - 35%

 Investment Horizon

Estimated Recurring

Expenses 1-3 Years

2.50%

 Investment Options

Dividend Frequency

Growth Dividend Payout Re-Investment

 Minimum Investment

at the Discretion of Trustees

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak Mid-Cap

Systematic: Rs 1000/-

 Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

The S&P CNX Mid-Cap 500 companies are disaggregated into 72 industry indices viz S&P CNX industry indices. Industry weight ages in the index reflect the industry weight ages in the market. For e.g. if the Bank sector has a 5% weight age

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in the universe of stocks traded on NSI; banking stocks in the index would also have an approx, representation of 5% in the index.

LIFE STYLE FUND: It’s an open ended scheme whose main features are as follows.

 Investment Objective To generate long term capital appreciation from a portfolio of equity & equity related securities, generally diversified across companies. W and rising consumers in India.

 Investment Pattern

Benchmark Index

Equity & Equity related securities:

65% – 100%

Debt & Money Market Instruments:

0% - 30%

 Investment Horizon

S & P CNX 500

Estimated Recurring

Expenses 1- Year & above

2.50%

 Investment Options

Dividend Frequency

Growth Dividend Payout Re-Investment

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at the Discretion of Trustees


 Minimum Investment

Cheques/DD to be drawn in favor

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak Life Style

Systematic: Rs 1000/-

 Minimum Redemption Size

Payout Schedule

Rs 1000/ - or 100 Units

KOTAK TAX – SAVER:

Transaction day + 3 Working days

It’s an Open - Ended Equity Linked Savings Scheme

whose main features are.

 Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related securities & enable investors to avail the income tax rebate. As Permitted from Time to Time.  Investment Pattern

Benchmark Index

Equity & Equity related securities

80% – 100%

Debt & Money Market Instruments:

0% - 20%

Page 76 of 116

S & P CNX 500


 Investment Horizon

Estimated Recurring

Expenses 3 Years & Above

2.50%

 Investment Options

Dividend Frequency

Growth Dividend Payout Dividend Re-Investment

 Minimum Investment

at the Discretion of Trustees

Cheques/DD to be drawn in favour

of Initial:

Rs 500 & in Multiples of 500

Additional:

Rs 500 & in Multiples of 500

Systematic:

Kotak Tax-Saver

Rs 500 & in Multiples of 500

 Minimum Redemption Size

Payout Schedule

Rs 1000/- or all Units if the amount is less than Rs. 1000/-

Transaction day + 3 Working

days

KOTAK GLOBAL INDIA: It’s an Open-Ended Scheme whose basic features are:  Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related securities issued by globally Competitive Indian Companies.

Page 77 of 116


 Investment Pattern

Benchmark Index

Equity & Equity related securities:

65% – 100%

Debt & Money Market Instruments:

0% - 20%

 Investment Horizon

S & P CNX 500

Estimated Recurring

Expenses 1-3 Years

2.50%

 Investment Options

Dividend Frequency

Growth Dividend Payout, Re-Investment

 Minimum Investment

at the Discretion of Trustees

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak Global India

Systematic: Rs 1000/-

 Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

Page 78 of 116


CHOWING ARE THE PURE DEBT SCHEMES PROVIDED BY THE KOTAK GROUP

KOTAK INCOME PLUS: It’s a Pure Debt Scheme whose main features are as follows:

 Investment Objective To generate capital appreciation from a diversified portfolio of equity & equity related instruments.

 Investment Pattern

Benchmark Index

Debt & Money Market Instruments: Equity & Equity related securities:

0% – 100% CRISIL MIP Blended Index 0% - 20%

 Investment Horizon

Estimated Recurring

Expenses More than 1-Years

2.25%

 Investment Options

Dividend Frequency

Growth Dividend Payout, Re-Investment

Monthly – 12th of every Month Quaterly – 20th of Mar/Jun/Sep/Dec

Page 79 of 116


 Minimum Investment

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak income Plus

Systematic: Rs 1000/-

 Minimum Redemption Size

Payout Schedule

Rs 1000/ - or 100 Units

Transaction day + 1 Working day.

Explanation: CRISIL is the agency which looks after the benchmarking for the mutual fund companies.

1. CRISIL Complex – Composite Bond Index 2. CRISIL LiquidFEX – Liquid Fund Index 3. CRISIL STBEX

- Short – Term Bond Index

4. CRISIL MIPEX

- CRISIL Monthly Income Plan Index

5. CRISIL BalanCEX - CRISIL balance fund Index 6. CRISIL Debt Hybrid Index – 60:40 7. CRISIL Debt Hybrid Index – 75:25

Page 80 of 116


Sample of Index Values as of Oct-2007 Enrollment in local colleges, 2005

CRISI

CRISIL

CRISIL

CRISIL

CRISIL

CRISILDe

CRISILDeb

L

LiquidF

BalanCE MIPEX

STBEX

btHybrid

tHybrid

Comp

EX

X

Index–

Index –

60:40

75:25

BEX DATE 01-

1353.3

Oct

5

02-

1353.6

Oct

1

03-

1356.1

Oct

0

04-

1356.6

Oct

2

05-

1356.6

Oct

3

06-

1356.8

Oct

8

07-

1357.1

Oct

3

1337.70

2908.84

1650.29

1354.67

1263.58

1215.

1337.94

2909.03

1650.56

1354.93

1263.73

1215.

1338.36

2963.82

1660.07

1356.40

1278.69

1215.

1338.88

2963.42

1660.51

1356.81

1278.72

1215.48

1339.39

2954.99

1659.43

1357.60

1276.93

1214.68

1339.62

2955.19

1659.69

1357.86

1277.07

1214.86

1339.84

2955.38

1659.95

1358.12

1277.22

1215.03

Page 81 of 116


08-

1357.4

Oct

6

1340.06

2918.31

1655.46

1358.23

1277.35

1209.20

KOTAK BOND : It’s an Open-Ended Debt Scheme whose features are as follows.  Investment Objective The investment objective of the scheme is to create a portfolio of debt & money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt markets.  Investment Pattern

Benchmark Index

To invest in a portfolio of Debt & Money Market

CRISIL Composite Bond Fund

Index Instruments of different maturities so as to spread The risk across a wide maturity horizon & different & different kinds of issuers in the debt markets.  Investment Horizon

Expenses

Estimated Recurring

KOTAK Bond Deposit & Regular Plan: 1 to 2 Yrs

BOND DEPOSITE : 2.25% Above

KOTAK

KOTAK BOND SHORT TERM PLAN : 1 Month &

KOTAK BOND Regular : 1.65%

 PLAN :

Deposite Regular

 Investment Options

Dividend Frequency

Kotak Bank Deposit: Growth Dividend Quarterly – 20th of

Kotak Bank Regular Plan:

Payout Dividend Re-Investment

Mar/Jun/Sep/Dec Kotak Bank Regular: Growth, Bonus. Dividend Quarterly – 20th of

Kotak Bank Regular Plan:

Payout, Dividend Re-Investment

Page 82 of 116

Mar/Jun/Sep/Dec


 Minimum Investment

Cheques/DD to be drawn in favour

of Initial:

Kotak Bon Kotak Bank Deposit:

Rs 5000/Kotak Bank Regular: Additional: Systematic:

Rs 500000/-

Rs 1000 Rs 1000

 Minimum Redemption Size

Payout Schedule

Rs 1000/- or Rs. 100 Units

Transaction day + 1 Working

day

KOTAK BALANCE: It’s an Open Ended Balanced Scheme whose features are:

 Investment Objective To achieve growth by investing in equity & equity related instruments, balanced with income generation by investing in debt & money market instruments.

 Investment Pattern

Benchmark Index

Equity & Equity related securities:

51% – 100%

Debt & Money Market Instruments:

Page 83 of 116

CRISIL Balanced Fund Index

0% - 49%


 Investment Horizon

Expenses

Estimated Recurring

More than 1- Year

2.50%

 Investment Options

Dividend Frequency

Growth Dividend Payout, Dividend Re-Investment

 Minimum Investment

Half Yearly – 25th Mar/Sep

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak Balance

Systematic: Rs 1000/-

 Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

Page 84 of 116


KOTAK EQUITY FOF: It’s an Open Ended Equity Fund of Fund Scheme whose features are:  Investment Objective To generate long - term capital appreciation from a portfolio created by investing predominantly in Open-Ended diversified schemes of Mutual Funds registered with SEBI

 Investment Pattern

Benchmark Index

Open-Ended diversified Schemes:

90% – 100%

S & P CNX NIFTY

Inter Bank Call and/or reverse Repo And /or short term fixed deposits and/or Schemes which invest Predominantly in the Money Market or floating rate securities.

 Investment Horizon

Expenses

: 0% - 10%

Estimated Recurring 1- 3 Years

 Investment Options

2.50%

Dividend Frequency

Growth Dividend Payout, Dividend Re-Investment

Page 85 of 116

at the Discretion of Trustees


 Minimum Investment

Cheques/DD to be drawn in favour

of Initial

Rs 5000/

Additional

Rs 1000/

Kotak Equity FOF

Systematic: Rs 1000/ Minimum Redemption Size

Payout Schedule

Rs 1000/ - or 100 Units

Transaction day + 5 Working days

ASSET CLASS PERFORMANCE 2000

2001

2002

2003

2004

2005

2006

2007

2008

Bond

Bond

Mid Cap

Mid Cap

Mid Cap

Mid Cap

BSE

Mid Cap

Bond

Fund

Fund

Fund

Fund

Fund

Fund

Sensex

Fund

Fund

10.8%

16.8%

55.4%

158.6%

41.1%

67.6%

46.8%

74.7%

24.8%

Liquid

Liquid

Gold

Large

Large

Large

Mid Cap

Large

Bond

Fund

Fund

24.9%

Cap

Cap

Cap

Fund

Cap

Fund

9.3%

8.4%

Fund

Fund

Fund

39.8%

Equity

8.8%

126.6%

25.8%

61.2%

51.6%

Gold

Gold

Large

BSE

BSE

BSE

Large

BSE

Gold

- 5.8%

2.4%

Cap

Sensex

Sensex

Sensex

Cap

Sensex

5.8 %

Fund

73.5%

116%

40.7%

Fund

45.5%

23.6%

35.6%

Large Cap

Large Cap

Bond

Gold

Gold

Gold

Gold

Gold

Large

Fund

Fund

Fund

20.1%

5.4%

20.4%

23.2%

30.2%

Cap

24.2%

-2.4%

15.4%

Fund 50.6%

Page 86 of 116


CHAPTER 5:-

RESEARCH METHODOLOGY

Page 87 of 116


OBJECTIVE OF STUDY: Main purpose of my Analysis is finding the factors affecting the individual’s investment. In today’s world the earning of the people is increasing with increase in the earnings people are looking for the composition by which they can benefit the most. Wealth Management provides such different composition by which they can get maximum out of it. Besides it wealth management gives good knowledge of Portfolio management & different instrument available to individuals for the investment.

RESEARCH METHODOLOGY: Research Design: Exploratory Data Collection instruments: Questionnaire Sampling Design: Purposive Sampling Sample size: 100 Sample Area: NCR Sample Element: Households (Who invest in financial assets) Measurement Instruments: Close ended Questionnaire Page 88 of 116


Exploratory research is carried out to make problem suited to more precise suited to more precise investigation or to frame a working hypothesis from an operational perspective. Exploratory studies help in understanding & assessing the critical issues of problems. It is not used in case where a definite result is desired. However, the study results are used for subsequent research to attain conclusive results for a particular problem situation. Exploratory studies are conducted for three main resons. To Analyze a Problem Situation to Evaluate Alternatives to Discover New Ideas

RESEARCH HYPOTHESIS: If a hypothesized relationship or prediction has to be tested by scientific methods. It is called Research Hypothesis. A research hypothesis is one that links an independent variable to a dependent variable. It should generally contain one dependent and one independent variable.

METHOD OF DATA COLLECTION: Data can be collected in different ways from the subject of study. One method is to observe subjects on certain parameters, which is called observation studies. In such studies, the subjects (respondents) by asking them questions through questionnaire. Here the researcher can adopt either method based on the study that needs to be conducted. For instance, if research has to be done on the traffic flow at a particular junction, then the observation method is best. On the other hand, if consumer preferences about a new product are to be estimated, then a questionnaire for obtaining consumer responses is the best method.

Research design has been classified in to four subsections they are: 1. Sample selection and size; 2. Sampling procedure;

Page 89 of 116


3. Data collection; 4. Analytical tools SAMPLE SELECTION & SIZE: The first step of research is sample selection, for which the respondents were consumers in Nanded city. The total consumers covered were 100. The same numbers of Questionnaires were distributed but only 70 fully – completed questionnaires were received. Results are based on the response of these 70 respondents.

SAMPLING PROCEDURE : The consumers are selected by the Convenience Sampling Method. The selection of units from the population based on their easy availability and accessibility to the researcher is known as convenience sampling. Convenience sampling can be used as a part of a preliminary research that forms a basis for conducting the detailed research. Convenience Sampling is at its best in surveys dealing with an exploratory purpose for generating ideas & hypothesis.

Page 90 of 116


CHAPTER 6:-

DATA INTERPRETATION

Page 91 of 116


Do you invest in financial products? a) Yes

b) No

Respond 100% yes 0% no

1) How much % of your income you invest in financial product? A) Less than 10%

b) 10% to 20%

c) 20% to 30% d) more

than 30% Respond of 20% person less than 10%, 30% person 10% to 20%, 35% person 20% to 30 %, 15% person more than 30%

Page 92 of 116


3) In which financial assets you have invested your saving money? a) F/D, Loans & Bonds

b) Insurance & ULIPS

c) Mutual funds & derivatives

d) Shares

Responds are 65% person invests f/d, loan and bonds, 20% person invests insurance, 5% person invests mutual funds, and 10% person invests shares.

Page 93 of 116


4) If you have invested your money in F/D, bonds, Debenture, why? a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ Responds are 70% people for less risk, 5% people for high return, 10% person for tax benefit, 10% person for regular return, 5% person for others

5) If you have invested your money in Insurance & ULIPS, why? a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ Responds are 30% person invest for less risk, 30% person invest for high return, 35% person invest for tax benefit, 3% person invest for regular return, 2% person invest for others

Page 94 of 116


6) If you have invested your money in Mutual Funds & Derivatives, why? a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ Responds are 15% person invest for less risk, 45% person invest for high return, 30% person invest for tax benefit, 3% person invest for regular return, 7% person invest for others

Page 95 of 116


7) If you have invested your money in Shares why? a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ Responds are 0% person invest for less risk, 80% person invest for high return, 7% person invest for tax benefit, 10% person invest for regular return, 3% person invest for others

8) Have you ever been in loss if you have invested in any of the financial assets? (a) Yes

(b) No

Responds are 60% persons said yes, 40% person said no

Page 96 of 116


9) If Yes, in which following instruments. a) F/D, Loans & Bonds

b) Insurance & ULIPS

c) Mutual funds & derivatives

d) Shares

Responds are 0% person f/d, 0% person insurance, 20% person mutual funds, 80% person shares

Page 97 of 116


10) Do you take advice of anybody while investing? a) Yes

b) No

Responds are 80% person said yes, 20% person said no

Demographic Profile Age

18 to 25

26 to 33

Sex

Male

Female

34 to 41

42 & Above

Occupation 1) Professor

2) Business

E mail –

Thank you for giving your valuable time.

Page 98 of 116

3) Service 4) Others


(In this questionnaire 10% respondent are age of 18 to 25, 30% respondent are age of 26 to 33, 40% respondent are age of 34 to 41, 20% respondent are age of a2 & above) (85% male and 15% female) (15% professor, 35% in business, 20% services, 30% others)

OBSERVATION AND ANALYSIS: After going through the Questionnaire I found that many people are not aware of different types of financial instruments they only know about fixed deposits and life insurance. Even some people didn’t know that besides LIC there is any other company which provides insurance. Even many people didn’t know about MUTUAL FUNDS some were investing their money in M.F. but they were even not knowing that whether it is open ended scheme or close ended scheme & even they know what is the portfolio of their funds. And all these investment was being made on the advice of their agents. Besides that it’s a youngster who mostly invests in equity and mutual funds while the people of age 40 and more are intended to invest in ULIPS plans.

OBSERVATION & ANALYSIS ON THE PART OF KOTAK PRODUCTS ANALYSIS OF CURRENT ACCOUNT: If a person needs an account where his excess balance can earn interest at the rate of interest of fixed deposits then one should go for either elite, pro or edge current the three are of free demand drafts while elite provides 100 free D.D pro provides 50 free D.D. ANALYSIS OF SAVINGS ACCOUNTS: The different savings accounts provided by the bank suits individuals for the different needs. Like if a person wants to make payment for most of the bills without using cash then one should go for PRO SAVING ACCOUNT. While if one wants’ to withdraw money in any city to any extent one should go for NOVA SAVING ACCOUNT. While if one is indulged in lot of electronic transferring of Page 99 of 116


funds, free demand draft facility one should go for EDGE SALARY ACCOUNT.

ANALYSIS OF MUTUAL FUNDS: Generally mutual funds are analyzed on the basis of the risk.

KOTAK MUTUAL FUND

Kotak Tech kotak MNC kotak Global India & kotak Midcap kotak Lifestyle kotak Opportunities kotak 30 and kotak Contra kotak Equity FOF kotak Balance kotak Income Plus

kotak

Guilt Investment

kotak Bond

Deposit & Regular

kotak Cash Plus kotak Bond STP kotak Flexi Debt kotak Floater LT kotak Floater ST kotak Liquid

POTENTIAL RETURN Page 100 of 116


ANALYSIS OF ULIPS: Generally the difference between ulips and mutual funds is of Death benefit ULIPS provides death benefit besides that the investment pattern of ULIPS is very much similar to Balanced Funds. While ULIPS are basically for some special purpose like child advantage funds which are basically designed for the benefits of child. Even though they provide general funds like KOTAK SMART ADVANTAGE FUND but that too with special features of profit booking if market values goes below 90%. While other ULIPS provides the facility of switching the funds from equity to debt instruments if market value stars falling. While the dis-advantage I found in ULPIS is that asset allocation charges in ULIPS are higher in comparison with other funds.

DEFICIENCY I FOUND IN KOTAK: kotak group provides various services to the investor but still I feel there is some deficiency on their part. The deficiency that I noticed is:  The group mainly focuses on S & P CNX NIFTY and S &P CNX 500 for Bench Marketing. Their products and they totally ignore other bases like CNX NIFTY Junior, and Mid - Cap funds for benchmarking its products.  There is a Lack of Sectoral funds like a fund which mainly focuses on natural resource & power sector or on the Retail sector.  There is a lack of funds which mainly focuses on the international markets as being provided by BIRLA SUNLIFE. Kotak group is only restricted to domestic markets.  Still kotak group follows odd Trends. They don’t have something different in their offerings like in ING GROUP have recently launched a FUND where investors money are being invested in the market on every day basis. So this provides an opportunity to investor to effectively capitalize on both falling and gaining markets.  Kotak mainly focuses on Debentures (if investment is being made in Debt instruments) while they totally ignore commodities, inflation linked bonds.

Page 101 of 116


CHAPTER 7

CONCLUSION

Page 102 of 116


CONCLUSION: If for an example if a person approaches kotak then kotak group provides wide range of savings account where one’s excess funds can earn interest like term deposit. Besides, that kotak provides wide range of tax saving fund which could help one in tax planning. On the other hand kotak provides mutual funds which could help one in growing the money of theirs according to the risk they can bear, for example- If a person can bear full risk then one can gofer the funds where the investment is in 100% equity instruments, while if one wants to ride safe one can go for the liquid funds while if one wants’ to take calculated risks one can go for balanced funds while one if personally feels that particular sector has lot of potential for growth one can go sect oral funds. On the other hand if one has dependents then one can go for ULIPS Plan which provides both safety and growth of money.

Page 103 of 116


CHAPTER 8

RECOMMENDATION & SUGGESTION

Page 104 of 116


RECOMENDATIONS:  Kotak should try to overcome their deficiencies and should try to do something different time and again to attract customer.  Kotak should try to improve their policy related insurance.  Kotak star plan is kotak smart advantage plan and kotak only enhance it but not paying attestation on other product which also can help to growing company.  Kotak try to promote their all product.

Page 105 of 116


CHAPTER 9:-

LIMITATION

Page 106 of 116


LIMITATION: 1. The findings of sample survey cannot be generalized to the entire population, as the sample is not representative. 2. Hesitations on the part of respondents to disclose financial information.

Page 107 of 116


CHAPTER 10:-

LITERRATURE REVIEW

Page 108 of 116


INTRODUCTION TO COMPANY: KOTAK Mahindra is one of India’s leading financial organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse financial needs of individuals and corporate. The group has a net worth of Rs. 6,523 crore and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius, and Singapore. The group services around 6.2 million customer accounts.

WEALTH MANAGEMENT: A type of financial service that combines personal investments, tax planning strategies, estate planning and legal counsel. It is designed to provide a broad array of services within the confines of one office. For the purpose of Wealth Management generally following steps are being taken.

 Client Profiling  Investment Objective  Asset Allocation  Strategy Implementation Generally in following instruments investments are being made on behalf of the investors. I.

Managed funds

II.

Direct Shares

III.

Margin Lending

Page 109 of 116


IV.

Mutual Funds

V.

ULIP Plans

WEALTH MANAGEMENT BY KOTAK GROUP: KOTAK Group provides following services to their customers. BANKING SERVICES: under banking services it provides various saving accounts, current accounts, term deposits to individuals according to the different needs of theirs.

ANALYSIS OF SAVINGS ACCOUNTS: The different savings accounts provided by the bank suits individuals for the different needs. Like if a person wants to make payment for most of the bills without using cash then one should go for PRO SAVINGS ACCOUNT. While if one wants’ to withdraw money in any city to any extent, one should go for NOVA SAVING ACCOUNT. While if one is indulged in lot of electronic transferring of funds, free demand draft facility one should go for EDGE SALARY ACCOUNT.

ANALYSIS OF CURRENT ACCOUNT: If a person needs an account where his excess balance can earn interest at the rate of interest of fixed deposits then one should go for either elite, pro or edge current account the only main difference that exists between the three are of free demand drafts while elite provides 100 free D.D, pro provides 50 free D.D.

TERM DEPOSIT: One can avail up to 85% overdraft against your term by paying 2% above your deposit rate. This facility is available for deposits above Rs. 50,000 for tenure of 181 days or more. One can also choose to link your term deposit to your savings/current account,

Page 110 of 116


whereby if need be, your term deposit will automatically be encased to meet your withdrawal requirement.

MUTUAL FUNDS: It provides various funds for investments. Some funds are based on pure equity instruments, while some are based on pure Debt instruments; some are balanced while some are based on other funds. The benchmarking for equity instruments is generally made on CNX50, while debt instruments are based on CRISIL Benchmarking, while balanced funds are based on S & P CNX500

LIFE INSURANCE: It provides various U-LIPs plans to individuals which suits them according to their different needs. The general investment pattern followed by the fund manager is 50% in debt instruments and 50% in equity. The major debt instruments on which fund manager emphasizes are:

Debenture Zero Coupon Bonds P.C.F (Pass through Certificates) F.O.F (Funds of Funds) C.B (Commodity Bonds) T-Bills (Treasury Bills) C.P (Commercial Paper)

Page 111 of 116


REFERANCES

Page 112 of 116


BIBLIOGRAPHY: I have gone through some of the Articles which are:  World Wealth Report 2007 by Capgemini and Merrill Lynch  The Journal of Wealth Management, Winter 2007 (Editorial by Jean L.P.Brunel, Editor) 

Beyond the Back Office – Technology’s role in wealth Management by BOB Stewart. (http://www.investedge.com/pdf/beyond-the-backoffice.pdf)

 2007 Wealth Management Best Practices: A Practical guide by Vicki Morris, North Star and Sonaimuthu N, Infosys Technologies Ltd  Boomers Need Wealth Management Services – CU360 – Online Research and advice portal. (http://cu360.cuna.org/articles/story.php?doc_id=2180)

Page 113 of 116


APPENDIX

Page 114 of 116


QUESTIONNAIRE:1) Do you invest in financial products? b) Yes

b) No

2) How much % of your income you invest in financial product? A) Less than 10%

b) 10% to 20%

c) 20% to 30% d) more

than 30% 3) In which financial assets you have invested your saving money? a) F/D, Loans & Bonds

b) Insurance & ULIPS

c) Mutual funds & derivatives

d) Shares

4) If you have invested your money in F/D, bonds, Debenture, why? b) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ 5) If you have invested your money in Insurance & ULIPS, why? b) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ 6) If you have invested your money in Mutual Funds & Derivatives, why? b) Less Risk

b) High Return

c) Tax benefits

Return e) Others _________________ 7) If you have invested your money in Shares why? Page 115 of 116

d) Regular


b) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ 8) Have you ever been in loss if you have invested in any of the financial assets? (a) Yes

(b) No

9) If Yes, in which following instruments. a) F/D, Loans & Bonds

b) Insurance & ULIPS

c) Mutual funds & derivatives

d) Shares

10) Do you take advice of anybody while investing? b) Yes

b) No

Page 116 of 116

STUDY ON THE DISTRIBUTION CHANNEL DEVELOPMENT (WEALTH MANAGEMENT) WITH SPECIAL RAFERENCE TO KOTAK  

“(STUDY ON THE DISTRIBUTION CHANNEL DEVELOPMENT (WEALTH MANAGEMENT) WITH SPECIAL RAFERENCE TO KOTAK MAHIDRA )” Greater Noida Noida Institute...

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