axix bank project

8/7/2019 Axix Bank Project

http://slidepdf.com/reader/full/axix-bank-project 1/67

1

A

SUMMER TRAINING PROJECT REPORT ON

³MARKETING OF INVESTMENTS PRODUCTS &

CONSUMER SURVEY´

JAIPUR SURYA COLLEGE OF SCIENCE AND

BUSINESS ADMINISTRATION

Submitted By:- Submitted To:

Mukesh Meena

BBA III Year



2

ACKNOWLEDGEMENT

I express my thanks to my project guide Mr. DEEPAK SHARMA

MARKETING MANAGER for guiding me right from the inception till

the successful completion of the project. I sincerely acknowledge him

for extending their valuable guidance. Support for literature, critical

reviews of project and the report and above all the moral support he had

provided to me with all stages of the project.

I owe my sincere regards to the director Mrs. Lokesh Bharti for

providing me an opportunity to take up this project.

I also wants to thanks to Mrs. Gunjan Sharma (my faculty guide) for

their guidance and time to time help in completion of the report.

I would also like to thank the supporting staff for their help and

cooperation throughout our project.

Mukesh Meena



3

EXECUTIVE SUMMARY

As per syllabus of the three-year degree course of Bachelor of Business

Administration every student has to undergo a practical training of 45

days in his/her field of interest. This training is a vocational training in

the organization to learn more about the organization and a project by

the person under whom one is posted during a period. I underwent

practical training AXIS BANK, JAIPUR

Practical training is an essential part of Management studies as it helps

one to visualize the management practices in the field, the theoretical

aspects of which we have to learnt in the classroom. Then one has to present a report, which is to be in two parts, the first part is devoted to

giving a profile of the organization and the second part containing the

project on which one has worked during the training period.

This report is an attempt to presents some aspects of the practical

training taken by me. The topic of the project undertaken by me is

³MARKETING OF INVESTMENT PRODUCTS AND CONSUMER

SURVEY.´

In this project, I have referred the sales promotion strategies adopted by

Jaipur, AXIS BANK. On the basis I have studied analyzed the

performance of each product.



4

CONTENTS

ABOUT AXIS BANK

Introduction Board Of Directors

Milestones WhyUTI converted to AXIS Performance highlights Mission and Values

FINANCIAL ASVISORY SERVICES

DIFFERENT INVESTMENT AVENUES

Employees Provident Fund (EPF) Public Provident Fund (PPF) Life Insurance Policy National Saving Certificate Bank Fixed Deposits Equity Linked Saving Scheme

MUTUAL FUNDS

Histor y of Mutual Funds in India How is Mutually Fund setup? Systematic Investment Plans

INSURANCE

Health Insurance Life Insurance

General Insurance Auto Insurance Home Insurance

MORE ABOUT MUTUAL FUNDS

Ty pes of Mutual Funds



5

INTRODUCTION

Axis Bank was the first new private banks to have begun operations

in1994, after the government of India allowed new private banks to be

established. The bank was promoted jointly by the administrator of thespecified undertaking of the Unit Trust of India (UTI), Life Insurance

Corporation of India (LIC) and eneral Insurance Corporation of India

( IC) and other four PSU insurance companies, i.e. National InsuranceCompany Ltd., The New India Assurance Company Ltd., The Oriental

Insurance Company Ltd. And United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60 %.

The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM

networks in the country.



6

BOARD OF DIRECTORS

The Bank has 10 members on the Board. Dr. P.J .Nayak is the Chairmanand CEO of the Bank.

The members of the Boards are:-

Dr. P.J. Nayak Chairman & CEO

Shri N.C. Si ghal Director

Shri A.T. Pannir Selvam Director

Shri J,R. Verma Director

Dr. R.H. Patil Director Smt. Rama Bijapurkar Director

Shri R.B.L. Vai h Director

Shri M.V. Subbi h Director

Shri Ramesh Ramanathan Director

Shri K.N. Prithvira j Director



7

MILESTONES

Mar-09 Axis Bank launches Platinum Credit card,

India¶s first EMV chip based card.

Dec-08 Axis Bank gets AAA National Long term

Rating from Fitch Ratings.

Sept-08 Axis Bank tie up with Banque Privee Edmondde Rothschild Europe for Wealth

management.

July-08 UTI Bank re-brands itself as Axis Bank.

July-08 UTI Bank successfully raises USD 1050

million.July-08 UTI Bank ties up with Tata Motors Ltd. For

car loans.

June-08 UTI Bank¶s expansion into Asia supported by

FRS.

May-08 UTI Bank launches µSpice Rewards¶ on the bankcards India¶s first-ever merchant-

supported rewards program.

April-08 UTI Bank opens a Financial services Branchin the DIFC in Dubai.

Mar-08 UTI Bank ties up with Hyundai Motor India

Ltd. For car loans.

Mar-08 UTI Bank ties up with IIFCL to providefinance for Infrastructural Projects in the

country.

Mar-08 UTI bank launches car loans in associationwith Maruti Udhyog Ltd.

Feb-08 UTI Bank announces the launch of its MealCard.

Feb-08 LIC premium payment now through UTI

Bank Branches.

Jan-08 UTI Banks opens Priority Banking branch inMumbai and Kolkata.



8

Why UTI Bank converted into AXIS Bank?

The erstwhile UTI bank has changed its name to Axis bank effectiveJuly 30,2007. This is the first time that a bank has gone in for a brand-

change voluntarily; earlier names of banks have been changed either due

to a merger or an acquisition..

Its promoters gave UTI brand in 1994 and UTI Bank could use the brandonly till January 2008 as per Govt directives. Many unrelated

shareholder entitied like UTI Technological services, UTI Investor

Services and UTI Securities were carrying the UTI brand.

Axis Bank has business of Rs. 102,000 crore with a marketcapitalization of Rs.21,817 crore making it fifth largest in India. It has

60 lakh customers and communicating to them the name change would be the prime exercise for the Bank.

Immediately, the bank will replace signages in 8 metro cities while in

other 250 cities by September. It is also informing customers about the

brand change through internet and mobile banking, ATM, call centers,

newspaper and radio. Even elements like cheque books , welcome kits,and pay orders have been resigned to reflect the new look.

However, the bank also has a task in its hand to communicate to the

customers and public about its nature as having a UTI name prefixed

would have implied that it has been a quasi-government bank. It wouldalso have to educate about its shareholding to further expand itself into

the retail business.



10

DIFFEENT INVESTMENT AVENUES

The stock markets have reached dizzying heights. isk-averse investors

are rethinking their investment strategy. Interest rates are increasing andthey generally have a negative impact on the stock markets.

The day of getting more than 50% returns from the stock markets are

over seems to be unanimous opinion amongst India¶s leading brokerage

houses. Even if one were to get less than 50% return in today¶s stock

markets the path will be strewn with a lot of volatility they believe.

Section 80C and 80CCC provide for tax deduction on certain

investments like Employee¶s Provident Fund (FPF), Public Provident

Fund (PPF), Unit Linked Insurance Plan (ULIP), National Saving

Certificate (NSC), bank fixed deposit (FD) and Equity Linked SavingScheme (ELSS).

part from providing decent and stable returns these savings options

also help you plan save on your tax liabilities. However, the aggregate o

deductions under 80C and 80CCC cannot exceed s 100,000.

Let¶s have a look at these avenues, their pros and cons, and what kind o

risk-free returns can you get from them.



11

Employee¶s Provi ent Fund (EPF)

This is one of the ver y saf e invest ent avenues. The curr ent inter est r ate of PF is . per annum. owever, this r ate is not fi ed and the

gover nment can modif y the same fr om time to time. The est part o

PF is that the inter est ear ned is exempt fr om tax under section ( )

of the income tax act. The taxman gets nothing.

Investment in PF can e made y way of a monthly contri ution fr om

your salar y. The amount contri uted is of the total of your asic

salar y and dear ness allowance.

You will e exempt fr om tax if withdr awals ar e done after a continuous

contri ution f or year or mor e, thr ough one or mor e employer s.

owever if you withdr aw money ef or e five year s the entir e inter est

portion and the employer¶s contri ution ar e taxable in the year o withdr awal. Portion of withdr awal which pertains to employee¶s own

contri bution is not taxable.

One of pr o blem with PF investment is that you cannot mak e lump sum investment into the same. The other pr o blem is that at the time o

withdr awal it often tak es mor e than a f ew months to r eceive the money

fr om the PF tr ust.



12

Public Provident Fund (PPF

PPF is considered yet another safe investment avenue. The current

interest rate on PPF is 8% er annum. Again lik e PF the rate of interest

is not fixed. The gover nment modifies the same fr om time to time.

The best art of PPF is that interest thereon is exempt fr om tax under

section 10(11) of the Income tax Act. Tax dr duction can be claimed on

contri bution made by an individual into his own PPF account or into the

PPF account of his s pouse or children.

PPF account can be opened in a nationalized bank or a post office. Ti is

a 15-year account. The entire amount including accumulated interest can

be withdrawn after 15 years.

Partial withdrawals (which are also tax free) are allowed fr om the 7 year.The minimum investment amount is R s 500 per financial year and themaximum is R s 70,000 per financial year. The amount of flexi bility in

planning your investments.

any of you not lik e invest in PPF due to its ver y long tenure (15years). owever, you may open an account and contri bute only small

sums initially; after all minimum annual contri bute is just R s. 500. In later year, contri bute can be increase.



13

Life ce o ic (inc ding ULIP & ension n)

Ther e r e v riety f i ur e pr u ts v il le. The tr iti l pl s

su h s ey , sh , endowment, whole lif e, hildr en pl ns

r e onsider ed r el tively saf e. However, the r etur ns ther eon var y

etween 4% per annum to 6 % per annum. For most of these plans

pr emium has to e paid monthly, quar terly, semi-annually or annually

during the ter m of the poli y.

The risk ategorization of ULI s de pends on the ty pe of f und you o pt

f or. The f und that invests its orpus its orpus mainly in equity (stocks) is consider ed risk ier while the one investing chief ly in onds/debentur es (gover nment debt ak in to banks¶ f ixed de posits) is consider ed r elatively

saf er.

The risk ier f unds off er potential f or high r etur ns while saf e f unds off er

moder ate r etur ns.

Tax deduction can be claimed on the pr emium paid in r es pect of lif e

insur ance policy of self , s pouse or childr en.

If the annual lif e insur ance pr emium wer e mor e then 2 % of the sum

assur ed then the deduction would be r estricted to 2 % of the sum

assur ed. For exam ple, if the sum assur ed is R s , , then only R s 2 , will be available f or tax deduction.



14

National Savings Certificate (NSC)

This is also a very investment avenue. The certificate has a maturity period of 6 years. The current rate is 8.16% per annum. The interest rate

is fixed in a sense that subsequent changes to the interest rates will not

have any interest earned.

If you invest Rs 100 in NSC, you will receive Rs 160 after 6 yearsassuming an interest rate of 8.16% per annum.

One major drawback of NSC is that interest is taxable. If you are in thehighest tax bracket then the post-tax return for you can be as less as

5.44% per annum instead of 8.16%.

NSCs can be purchased at any post office in your locality.

Section 80c also allows deduction on earned interest on NSC during the

first five years. However, on deduction on accrued interest is available inthe year in which the NSC matures.



17

Mutual f und

Mutual f und is a anis f ling s urces issuing units t e

invest r and investing f und in secur ities in accordance it t e

ob jectives as disclosed in t e off er document.

nvestments in secur ities are s read across a ide cross section o

industr ies and sector s and t us t e r is is reduced. iver sification

reduces t e r is because all stock s may not move in t e same direction

in t e same ropor tion at t e some time.

Mutual f und issues units to t e investor in accordance it quantum o money invested by t em. nvestor s of mutual f unds are known as unit¶s

older s.

T e investor in propor tion to t eir investment s ares t e profit or losses.

T e mutual f unds normally come out wit a number of schemes with

diff erent investment ob jectives, which are launched f rom time to time.

mutual f und is required to be registered with the secur ities and xchange Board of ndia (S B ), which regulates secur ities market

bef ore it can collect f unds f rom the public.



18

What is the hist ry f m tua f n in In ia an r e f SE I

in m tua f n s in ustry?

nit tr st of India as the f irst set in India in 193 . In the early

1990s, the o ernment allowed blic sector banks and institutions to

set up mutual f unds.

In 199 , the securities and e change oard of india (SE I) ct was

passed. The objecti es of SE I are ± to protect the interest of in estors in

securities and to promote the e elo pment of and to regulate the securities market.

s f ar as mutual f unds are concerned, SE I f or mulates policies and

regulates the mutual f unds to protect the interest of the in estors.

SE I has also issued guidelines to the mutual f unds f rom time to time to

protect the interests of in estors.

There is no istinction in regulator y f or these mutual f unds and all are

su bject to monitoring and ins pections by SE I. The risks associated with

the schemes launched by mutual f unds s ponsored by these entities are o

similar ty pe.



20

Systemati Investment Plan (SIP)

The systematic investment plan (SPI) is a simple and time-honor ed investment str ategy f or accumulation of wealth in a disci plined manner

over long ter m period. The plan aims at a better f utur e f or its investor s as

an SIP investor gets good r ate of r etur ns compar ed to a one-time investor.

What is Systemati Investment Plan?

A s pecific amount should be invested f or a continuous period at r egular inter vals under this plan.

SIP is similar to a r egular saving scheme lik e a r ecurring deposit. It is a

method of investing a fixed sum r egularly in a mutual f und.

SIP allows the investor to buy units on a given date ever y month. The investor decides the amount and also the mutual f und scheme.

While the investor¶s investment r emains the same, mor e number of units

can be bought in a declining mar k et and less number of units in a rising

mar k et.

The investor automatically partici pates in the mar k et swings once the

o ption f or SIP is made.

.



21

SIP ensures averaging of rupee cost as consistent investment ensures

that average cost per unit fits in the lower range of average market

price. An investor can either give post dated cheques or ECS

instruction and the investment will be made regularly in the mutual

fund desired for the required amount.

INSURANCE

Insurance, in law and economics, is a form of risk management

primarily used to hedge against the risk of a contingent loss.

Insurance is defined as the equitable transfer of the risk of a loss,

from one entity to another, in exchange for a premium

T es of insurance:

1. HEALTH INSURANCE

Don¶t go without this. Most people have it at work, but if you don¶t

you will really save big by going for a group policy.

Healt insurance comes in three types, though many polices mix andmatch traits of the three.

.



22

Fee f or service, the most ex pensive, allows you to go to almost any

provider and cover s almost anything¶s that is medically necessary. ou

don¶t have a pr imary care physician who to approve visits to s pecialists.

Health maintenance organi ations (HMO¶s) are the least costly, but the most restr ictive. They assign you (or let you select) a pr imary care

physician.

2. LIFE INS N E

For most people, the purpose of lif e nsurance should be to replace the

financial contr i bution made by a f amily member .

Proceeds f rom lif e insurance cover three types of ex penses: replacement

of the policyholder ¶s income or work , estate taxes, and bur ial costs.

When you consider the amount of insurance to buy, consider the

f ollowing:

1. Most of the lif e insurance should be on a f amily member whose

salary is impor tant to the f amily budget.

2. Consider a relatively small lif e insurance policy on a f amily on a

stay-at-home parent to cover child care and other ex penses.

3. Consider reducing the amount of lif e insurance you have as you

build more financial assets.

. Pass on credit lif e insurance and lif e insurance if you can. These

plans are restr ictive and ex pensive. Buy more general lif e insurance

instead if you f eel a need.

.



23



24

L fe n urance or l fe a urance is a contract between the policy owner and the insurer, where the insurer agree to pay a sum of money upon the

occurrence of the insured individuals or individuals death or other event,such as terminal illness or critical illness. In return, the policy owner (or

policy payer) agrees to pay a stipulated amount called a premium atregular intervals or in lump sums. There may be designs in somecountries where bills and death expenses plus catering for after funeral

expenses should be included in policy premium. In the united-states, the predominant from simply specifies a lump sum to be paid on the insured

demise.

Insured events that may be covered include:

1. Life policies are legal contract and the terms of the contract

describe the limitations of the insured events.2. Protection policies- designed to provide a benefit in the events o

specified event typically a lump sum payment.

3. Investment policies- where the main objective is to facilitate thegrowth of capital by regular or single premiums.

.



27

Universa lif e verage

Uni ersal lif e insurance (UL) is a relati ely new insurance roduct

intended to ro ide er manent insurance co erage with greater

f le ibility in remium ayment and the otential insurance f or a higher

internal rate of return. A uni ersal lif e olicy inclu es a cash account.

With all lif e insurance, there are basically two f unctions that make it

work . There a mor tality f unction and cash f unction. The mor talityf unction would be the classical notion of ooling risk where the

remiums aid by e er y ay else would co er the eath benef its f or the one or two who will ie f or a gi en eriod of time.

Actuarially, it is reasoned that out of a group of 1000 eo le, if e en 10

of them li e to age 95, then the mor tality f unction alone will not be able

to co er the cash f unction. So in order to co er the cash f unction, a

minimum rate of in estment return on the remiums will be re uired in

the e ent that a olicy maters.

Uni ersal lif e olicies guarantee, to some e tent, the eath roceeds, but

not the cash f unction ± thus the f le ible remiums and interest return.



28

Li ited- pay

Another ty pe of per manent insurance is limited- pay life insurance, in which all the premiums are paid over a s pecified period after which no

additional premiums are due to k ee p the policy in f orce. Common

limited pay period include 10- year, 20-year, and paid at age 65.

Endow ent

ndowment is policies in which the cash value built u p inside the policy,

equal the death benefits (face amount) at a certain age. ndowment are

considera bly more ex pensive (in ter m of annual premium) then either

whole life or universal life because the premium paying period is

shortened and the endowment date is earlier.

ndowment Insurance is paid out whether the insured lives or dies, after

a s pecific period (e.g. 15 years) or a s pecific age (e.g. 65).

Accidental death

Accidental death is a limited life insurance that is designed to cover the

insured when they pass away due to an accident. Accident includes

anything fr om an in jur y, but do not ty pically cover any death resulting

fr om health pr o blems or suicide. Because they only cover accident, these

policies are much less ex pensive than other life insurances.

Accidental death benefits can also be added to a standar d life insurance

policy as a rider if this rider is purchased, the policy will generally pay



29

R el ted life insurance roducts.

Rider is modif ications to the insur ance policy added at the same time the

policy is issued. These rider s change the basic policy to pr ovide some f eatur e desir ed by the policy owner. A common rider is accidental death,

which used to be commonly r ef err ed to as ³dou ble indemnity´, which

pays twice the amount of the policy f ace value if death r esults f r om

accidental causes, as if both a f ull cover age policy and an accidental

death policy wer e in eff ect on the insur ed.

oint lif e insur ance is either a ter m or per manent policy insuring two or mor e lives with the pr oceed payable on the f ir st death

Single pr emium whole lif e is a policy with only one pr emium which is

payable at the time the policy is issued.

Modif ied whole lif e is a whole lif e policy that char ges smaller pr emiums f or a s pecif ied period of the time af ter which the pr emiums incr ease f or

the r eminder of the policy.

Gr oup lif e insur ance is ter m insur ance covering a gr oup of peo ple,

usually em ployees of a com pany or member s of a union or association.

Individual pr oof of insur ability is not nor mally a consider able in the

under writing. R ather, the under writer consider s the size and tur nover o

the gr oup, and the f inancial str ength of the gr oup.

Gr oup lif e insur ance of ten has a pr ovision that a member exiting the

gr oup has the right to buy individual insur ance cover age.



31

Accide t a d health insur a ce policies ar e availa ble for individuals as

ell as groups. A group could be a group of em loyees of a

orga i ation or holder s of cr edits cards or de osit holder in a ba k etc.nor mally he a group is cover ed, insur er s off er group discounts.

Ther e ar e ge er al insur a ce products that ar e in the natur e of pack age

policies off ering a com bination of the cover s me tioned a bove. or

insta ce, ther e ar e pack age policies availa ble for householder s, shop

k ee er s a d also for prof essionals such as doctor s, charter edAccounta ts etc. suita ble Insur a ce cover s ar e necessary for every

f amily. Industries also need to product themselves by obtaining

insur a ce cover s to product ther e building, machinery, stock s etc. Theyneed to cover their lia bilities as ell. ina cier s insist on insur a ce.



32

A TO I ANCE

In most states you are required to have auto insurance and you don¶t

ant to be ithout it. ou need to have liability insurance. Ho much you need depends on ho much you have in assets. If your car is

expensive and if buying another one ould ipe you out financially,consider buying comprehensive and collision.

HOMEOWNE ¶INS ANCE

he purpose of homeo ners¶ insurance is to protect you against damage

to your home and property from natural disasters.

Insurance companies offer different ratings of insurance and assign these

ratings ith codes starting ith the letters ³ho´. While these ratings are

fairly standard, they do ver y a little ith companies, so check ith thecompany to see hat policies cover.

When comparing policies, consider differences among deductiblecoverage of property other than the house (sheds, garages, etc.), and

percent of loss covered.

Basic homeo ner¶s insurance does not cover the content, though you

can often add it for an additional fee or buy it separately. When buying

content insurance, consider hether it covers replacement value or fair market value.

eplacement value is a better buy because it pays to buy a ne piece ofurniture or appliance, not hat your old one is orth.



33

More aboutMutual Fund

Some high- gr owth mutual f unds will consist of high-risk stocks; other s

may consist of mor e stable stocks, as well as bonds in an attempt to beat

inflation.

Always check the o b jective of the mutual f und and r ead the f und¶s

pr os pectus to mak e sur e it¶s consistent with your goals. A good place to

get independent inf or mation on a mutual f und, including its perf or mance

histor y is thr ough or ningstar, an independent f und r ating ser vice.

y An investment in a money mar k et f und is not insur ed or guar anteed by the FDIC or any other gover nment agency.

A mutual f und is a tr ust that pools the savings of a number of investor

who shar e a common financial goal. The money thus collected is then

invested in capital mar k et instr uctions such as shar es, debentur es and other securities. The income ear ned thr ough these investment and the

capital appr eciations r eali ed ar e by its unit¶s holder s in pr o portion to the number of units owned by them.



34

T es of utual fun

y Open-en fun

The term mutual fund is the common name for what is classified as an

open-end investment company by the SEC. beings open-end means that,

at the end of every day, the fund issues new shares to investor and buys back shares from investors wishing to leave the fund.

Mutual funds must be structured as corporations or trusts, as business

trusts and any corporations or trust will be classified by the SEC as an

investment company if it issues securities and primarily invests in non-government securities. An investment company will be classified by the

SEC as an open-end investment company if they do not issue undivided

interests in specified securities (the defining characteristic of unitinvestment trusts or UITs) and if they issue redeemable securities.

Exc ange-tra e fun s

A relatively recent innovation, the exchange-traded fund or ET , is often

structured as an open-end investment company. ET s combinecharacteristic of both mutual funds and closed-end funds .ET s aretraded throughout the day on a stock exchange, just like closed-end

funds. But at prices generally approximating the ET net asset value.



35

Equity f unds

Equity funds hich consist mainly of stock investment ar e the most

common type of mutual funds. Equity funds hold of all amount invested in mutual funds in the nited tates. f ten equity funds f ocus

investment on par ticular str ategies and cer tain types of issues.

Capitalization

und manager s and other investment pr of essionals var ying definitions o

mid-ca and lar ge-ca r anges.

Gro th s. alue

nother distinction is made bet een gr o th finds, hich invest in stocks of com anies that have the potential f or lar ge ca ital gains, and

value funds, hich concentr ate on stocks that ar e under valued. Value stocks have histor ically pr oduced higher r etur n: ho ever , financial

theor y states this is com ensations f or their gr eater r isk . r o th funds

tend not to pay r egular dividends. ncome funds tend to be mor e

conser vative investment, ith a f ocus on stocks that pay dividend.



36

In ex f n s vs a tive management

An inde f und maintains in estment in companies that are par t of major stock (or bond) indices. Such as the S&P 500, while an acti ely

managed f und attempts to outper f or m a rele ant inde through superior

stock- picking techni ues. The assets of an inde f und are managed to closely a ppro imate the per f or mance of a par ticular pu blished inde .

Cer tain empirical e idence seems to illustrate that mutual f unds o not beat the market and acti ely managed mutual f unds under- per f or m other

broad-based por tf olios with similar characteristic.

Bon f n s

ond f unds account f or 18 of mutual f und asset. Ty pes of inclu e ter m

f unds, which ha e a f i ed set of time (shor t-, medium-, or long- ter m)

bef ore they mature. igh-yield bond f unds in est in cor porate bonds,

inclu ing high yield, these bonds also come with greater risk .

Money mark et f n s

Money market f unds hold % of mutual f unds asset in the United

States. Money market f unds entail the least risk , as well as lower rates o

return. Unlike cer tif icates of e posit (C s), money shares are li uid and

redeemable at any time.



37

Fund of fund

Funds of funds (FOF) are mutual which invest in other underlyingmutual funds. The funds at the underlying level are typically funds

which an investor can invest in individually. A fund of funds willtypically charge a management fee which is similar then that of a normal

fund because it is considered a fee charged for asset allocation services.

The design of FOF is structured in such a way as to provide a ready mixof mutual fund for investor who are unable to or unwilling to determine

their Own asset allocation model. Fund companies such as TITA-CAEF,American century Investment, Vanguard, and Fidelity have also enteredthis market to provide investor with these options and take the ³guess

work´ out of selecting funds.

Hedge fund

edge funds in the United States are pooled investment funds with loose

SEC regulation and should not be confused with mutual funds. Somehedge fund managers are required to register with SEC as investment

advisers under the investment advisers Act [12]



38

Mutual funds vs. other investment

Mutual funds offer several advantages over investing in individual

stocks. or example, the transaction costs are divided among the entiremutual funds shareholder, hich allo s for cost-effective

diversification. Investor may also by having a third party (professional

fund manager) apply expertise and dedicate time to manage and research investment options, although there is dispute over hether professional

fund managers can, outperform simple index funds that mimic public

indexes.

Share classes

Many mutual funds offer more than one class of shares. or example,

you may have seen a fund that offers ³class ´ and ³class B´ shares.

Each class ill invest in the same pool (or investment portfolio) osecurities and ill have the same investment objectives and policies.

multi-class offers investor the ability to select a fee and expensestructure that is most appropriate for their investment goals (including

the length of time that they expect to remain invested in the fund).



40

How to identify investment avenues

Though e e oppor unitie a ound a the time and in a most a

situations, of ten they may not e ery easy to identity. shared and

discer ning investor ill usually f ind oppor tunities f or ma ing money in

places, and in situations, here a less discer ning one ill not.

Changes in government policies

ajor changes in gover nment policies of ten enef its some companies y

opening up ne avenues f or gr owth and higher pr of its and such

companies pr ovide e cellent investment oppor tunities f or investor s who

are uick recognizing the implications of such policy changes .In theear ly 980s removal of pr ice contr ols over cement ushered in a per iod o

high gr owth f or and other cement companies.

hange in gover nment policy can also sometime affect a company

adver sely. If you are a shareholder and are uick to f oresee the

implication of such a change, you can sell your shares ef ore their pr ices

egan to fall.



41

Technological Innovation

We r e li i i s iet i is ei i r easi l i ated technology. Accor dingly, alert investor s on the lookout f or ig gains ill

find suitable invest ent opportunities in companies, hich go in f or technological innovation in a big ay.

-Anticipating the futu e

The best investment opportunities ar e available to those ho can successf ully antici pate the f utur e. If you can identif y the f utur e ar eas or

dir ections of gr owth, you would have indentified when and wher e to

invest f or maximum r etur ns.

The day is not f ar off when the pollution levels will become intoler able

and will pose a ma jor health hazar d to the population. Envir onmental

pollution is becoming an ar ea of serious concer n to the public and the gover nment. The water pollution and air pollution acts have alr eady

been passed by parliament and the gover nment has established a new department, known as the department of envir onment f or implementing

these laws.

All these developments ar e pointer s to an emer ging high gr owth ar ea,

the manuf actur e of air pollution and water pollution contr ol equi pment.These development also point to a high gr owth in health car e.



42

International trends

Globalization is the buzzword since the 99 s.No country in the worldcan now hope to remain immune from the influence of internationaleconomic trends. As a result, it has now become imperative for Indian

stock market investors to keep a close watch on international economicsdevelopment and to analyze there likely impact on the performance o

Indian companies.

It is also created the condition required for a sustains long tern growth in

the volume of world sea born trade thus significantly improving the prospects of Indian shipping companies, like great eastern shipping andshipping corporation of india.

Sunrise industries

The term sunrise industries, refers to the new and emerging industries othe future. Early investment made in those companies which have beencorrectly identified as the future leader of such nascent industries have

always provided and will continue to provide truly attractive returns to patient and farsighted investors.

The sunrise industries of the st century are likely to be computer

software, computer training, bio-technology, electronic mail, processedfoods, telecommunication, corporate hospital, budget hotels, privetairlines, oil exploration, population control, diagnostic kits. Past-food

chains and departmental stores. If you are serious about marketingmoney then you simple can not afford to ignore these industries.



43

MAJOR PLAYERS IN INSURANCE

Life Insurance

S.NO. Registration Date of Name of the company

No.

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance

Limited5 109 31.01.2001 Birla sun Life Insurance Company Ltd.

6 110 12.01.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Ltd.

8 114 02.08.2001 ING Vysya Life Insurance Company Privet Ltd.

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Ltd..

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future Generali India Life Insurance Company

Ltd.

12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.



45

PRODUCTS PROMOTED BY ME:-

Reliance mutual fund-

o Reliance growth fund

o Reliance vision fund

o ICICI Prudential mutual fund-

o ICICI Power fund

o ICICI infrastructure

o General Insurance-

o Life Insurance-Associated partner METMIFE

o Health Insurance

o Safe Guard

o Safe home Jewellary Insurance



46

Reliance growth funds

Performance as on

31.07.2008

bsolute Compound

annul

6 on h 1 y 3 y 5

y

n

Reliance Growth

fund ± retail plan-

growth

18.78 2.05 28.17 48.85 30.95

B 100 20.68 6.4 22.45 31.61 12.58

Reliance growth fund

P return as on march 30, 2007

Period 1 y 3 y 5 y n

n p on

P start date 01/07/06 01/07/04 01/07/02 08/10/01

Current 307.46 307.46 307.46 307.46

otal no. of units 47.70 226.89 813.34 957.72

otal amountinvested

12000 36000 60000 141000

Present value 14667 69758 250068 1836064

Yield 46.44 49.30 61.26% 40.05%

Present value

invested in inbox

14134 61243 15493 518565

Yield from inbox 36.73% 38.51% 39.50% 20.68%



47

Reliance vision funds

Perf ormance as on

31.07.2008

Absolute ompound

annul

6 month year year

year

Since

Reliance vision fund

± retail plan-

growth

- . - . . 6 . .

BSE 100 - .68 -6. . .61 12. 8

Reliance vision fund

Sip return as on march 30, 2207

Period 1 year year year Sinceince ption

SIP start date 1/07/06 01/07/04 01/07/02 10/10/01

urrent AV 207.46 207.46 207.46 07.46

Total no. of units 70.17 20.24 785.51 89.56

Total amount

invested

12000 6000 60000 141000

Present value 14667 69758 250068 1836064

Yield

46.44%

49

.30%

61

.26%

40

.05%

Present value

invested in inbox

14134 61243 15493 518565

Yield from inbox 36.73% 38.51% 39.50% 20.68%



48

LIFE IN R NCE

Metlife nsurance is a pr ime mover in the ndia insurance market.

Met ife ndia nsurance ompany imited is aff iliated to the Met ife,

nc, Met ife offer s its ustomer a wide array of value added, innovative f inancial product. he ompany operates in over locations in ndia,

via its own off i es and its bank par tner s.

t may be noted that Met ife, inc. serves over 7 million ustomer s around the wor ld, via its aff iliates. ervi es of Metlife ompanies

involve the following areas.

k Life nsurance

k R etail bank ing

k Annuities

k Home insurance

k Automobile insurance

inancial servi es provided by the ompany include individual

insurance, reinsurance and group insurance. aving and retirement

products servi es are offered to orporations and var ious types of other s institutions.

MetLife ndia nsurance ompany Ltd offer the followings servi es.

i Individual planes i Mi ro inance

i Employee enef its



49

H H I SU E

Axis bank off ers to its customer health insurance f or the f ull f amilywhich co ers the customer , his\her s ouse and3 inde endent children¶s

up to the age of 5 years.

BE EFI S OF HE PO I Y

This olicy co ers the whole f amily in a single olicy so there is

no need f or the customer to take iff erent olicy f or iff erent mem bers of the f amily.

The olicy co ers rele ant medical expense incurred ays prior

to and 90 ays af ter hos pitali ations.

The policy co ers am bulance charges u p to s. 1000

Under section 80 of income tax act customer will be entitled to

income tax benef its on the premium paid f or the policy.

SAFE UARD

Axis bank along with AJAJ Allian eneral Insurance ha e

brought SAFE UARD accidental insurance policy.

This policy gi es insurance co erage in case of :-

Accidental eath

Accidental per manent total isability

Accident per manent par tial isability

Children¶s education bonus



51

Jewellary insurance

The policy provides complete security for gold/diamond Jewellary,

when it is worn by the policy holder in person or while being carried to

the bank lockers. bsolute security & coverage is given against burglary& fire, in respect of items kept at home /bank lockers.

FEATURES:-

No list of items to be insured required

Minimum documentation

Worldwide coverage 24*7

All risks covered

SCHEMESOFFERED TO CUSTOMERS

PAR T CU ARES SUM NSURED R s PREMIUM R s.

Jewellary and valuables 500000 4999

1000000 9999



52

Methodolo y

My survey is based on primary data. For collecting primary data.

I did market surveying for which I filled up questionnaires from

different income group peoples. Through which I come to knowthe interest of peoples for investment & insurance production.

My saple size was .

The survey is mainly done on retailers.

After analyzing the questionnaire a SWOT analysis is done.

Strength :-

Branch name as Axis bank is channel partner of other mutualfund co¶s & insurance co¶s persons give preference to it.

Weafness :-

y Market fluationsy Less knowledge about the products

y Persons are less interested in taking risks

Opportunities

y Good financial advisory services

y Promote better products

Thrats

y Unstable market

y More concerned about returns



53

QUESTIONNARE



54

Q . Your annual income.

Seriasl < . laces

Seriasl . lacs4

Seriasl - laces 3

Seriasl above laces

Series1, 1, 10%

Series1, 2, 40%

Series1, 3, 30%

Series1, 4, 20%

ANNUAL INCOME



55

Q what is the ratio of your saving and expenses?

. Ratio : ----44

. Ratio 4 : ---- 4

3. Ratio : ----

4. Others ---------

Series1, 44%

Series1, 24%

Series1, 20%

Series1, 12%

1

2

3

4



56

Q 3 you bank with?. IDBI-

. I I I- 4

3. SBI-

4. HDF -

. AXIS-

. OTHERS-

1

10% 2

24%

3

16%

4

16%

5

8%

6

26%

1

2

3

4

5

6



57

Q 4 What would be your preference while doing

investment?. MF 4

. SIP

3. FD 3

4. ULIP

. SHARES

. OTHERS

1

14%

2

10%

3

30%

4

10%

5

20%

6

16%

1

2

3

4

5

6



58

Q . For what duration would you like to invest?. < year

. - years

3. - years 44

4. > years

1

10%

2

20%

3

44%

4

26%

1

2

3

4



59

Q what rate of return do you expect from the investmentyou decide to make?

. 10-15%----------52%

2. 15-20%----------28%

3. 20-25%----------16% 4. Above25%------4%

1

52%

2

28%

3

16%

4

4%

1

2

3

4



60

Q. Your knowledge about market?

1. Limited 20% 2. Optimum 46%

3. Extensive 34%

1

20%

2

46%

3

34%

1

2

3



61

Q.8 what is the basic force behind your investment makingdecision?

1. Newspapers 14%

2. Friends 10% 3. Brokers 34%

4. Tax/financial advisors 32%

5. Past experience 6% 6. Bank staff 4%

114%

2

10%

3

34%

4

32%

5

6%

6

4%

1

2

3

4

5

6



62

Q 9 Reasons for selecting banks as financial advisor ?

1 Reliability 26%

2 Professional experts 12% 3 Experience 10 %

4Fee structure 10%

5convinence 12%

6 Brand name 30%

1

26%

2

12%

3

10%

4

10%

5

12%

6

30%

1

2

3

4

5

6



63

Q 10 Are the banks able to serve your need and expectations ?

1 Yes 54%

2 No 26% 3 partially 20%

1

54%

2

26%

3

20%

1

2

3



64

Q 11. What kind of services related to account & advisoryservices you are looking for ?

y More cash counters for withdrawing and depositing cash.

y Good ATM services.

y More advisory services regarding investment queries.

y Good response from the staff.



65

LIMITATION OF THE STUDY

While working on the project, the following limitationswere there

y Being a trainee couldn¶t approach the customers

directly to sell the product.

y Covering only a particular area i.e. jaipur.

y Many people didn¶t knew adout the products because

either they don¶t invest at all or invest through some broker.



66

Conclusion

y Axis bank has great goodwill in the market.

y In survey, it is found that most of the people invest in

fixed deposits where returns are sure.

y Bank has interesting& profitable plans for different

age groups.

y I found that in Financial Advisory Services Sector, a

person should have great communication &

convenience skills.

y People generally spend more than what they save.

y People generally like to invest for longer period rather

than taking short term gains.

y Most of the people take bank services for investingtheir money.



Biblio raphy

Websites :-

www.axisbank.com

www.mutualfundindia.com

www.amflindia.com

www.irdaindia.org

Books/Mana ers-:

Reliance capital asset management pg 14 & 18

ICICI prudential Funds- pg 27 & 33

A brief summary of axis bank and its services

Indian mutual funds handbook- sunder sank ran

Mutual funds in india-amitabh gupta

axix bank project

Documents