A REPORT

ON

COMPARATIVE ANALYSIS ON WEALTH MANAGEMENT

SERVICES IN THE JAIPUR CITY OF RAJASTHAN

SUBMITED BY:-

SANDHYA SAINI

IILM ACADEMY OF HIGHER LEARNING

1

A REPORT

ON

COMPARATIVE ANALYSIS OF WEALTH MANAGEMENT

SERVICES IN THE JAIPUR CITY OF RAJASTHAN

BY

SANDHYA SAINI

A Report submitted in the partial fulfillment of

The requirements of

MBA program

COMPANY GUIDE: MR NITIN VERMA (SALES MANAGER ACQUISITION PFS) HSBC JAIPUR

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ACKNOWLEDGEMENT

This project bears the imprints of many people. I am highly indebted to Mr.

Parmindar Singh, Branch Manager HSBC Jaipur, for giving me an opportunity to

undergo an invaluable learning experience in a highly professional work culture of

HSBC.

I am greatly indebted to Mr. Nitin Verma Sales Manager Acquisition, PFS Jaipur

for providing me excellent guidance, insight, suggestions and encouragement

throughout the study.

I am also thankful to the staff members of HSBC Jaipur for giving me the insight

in their respective operational area.

I would also like to acknowledge my thanks to Prof. Dimple abhichandani, Faculty

MIM, JODHPUR for proving me regular guidance on the project.

This opportunity of practical training providing after the fulfillment of first year

MBA was not only a platform to develop and enhance my appetite for learning but

also served as a fusion of the theoretical concept and their applications in the

corporate world. I also wish to express my thankfulness to all those who have been

associated with this project, either indirectly or directly for sparing time out of

their busy schedule

SANDHYA SAINI

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EXECUTIVE SUMMARY

Currently the financial market all over the world is undergoing a major transition and their role

in the global economy is in the process of redefinition. The composition of the market is

changing very rapidly and due to which there emerges a need for an expert knowledge and

service by which the risk of the investor can be reduced. And all this is done through a service

known as the wealth management service, which is provided by the various banks these days. So

what are actually wealth management services?

Wealth management is a vast concept which comprises of managing the wealth i.e. the surplus

amount of money or the savings of an individual by investing them into diversified tools like

mutual funds, insurance ,gold, real estate, Fd’s, Equities, debts, etc. so that the wealth of an

individual can be maximized. In other words it is an all-encompassing investor service which

comprises of investment advisory, management of investments ranging from insurance to stocks,

and maximizing returns on investments. The project basically deals with the study of wealth

management services, its products and the services provided by the various banks to its client.

Through which a comparison could be made among the various bank’s wealth management

services.

About the company: HSBC is one of the largest banking and financial services organizations in

the world. HSBC's international network comprises over 10,000 offices in 83 countries.

Through an international network linked by advanced technology, including a rapidly growing

e-commerce capability, HSBC provides a comprehensive range of financial services like:

Personal Financial Services, Commercial Banking, Corporate, Investment Banking, and Private

Banking.

Initially in the first week of the summer internship program it was basically studying about the

basic concept of wealth management, the services provided by HSBC and the products dealt in

by HSBC in respect of wealth management services. In HSBC and all other banks the product

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which are used for investments are all related to equity e.g. Mutual funds, unit link insurance

plan, systematic investment plan, etc.

With the starting of the second week of the summer internship program it was all about

collecting the information through various company’s website and broachers about the various

services provided by different banks and institutions which helped in pitching the clients for the

wealth management services for HSBC. It was an also an effort to find out the extra services or

facilities which were provided by HSBC and not by the other banks and by this tried to convince

the clients. After that our company guide guided us to do few cold calls which would help us in

understanding the needs and want of the customers and their satisfaction levels from their

present financial institutions. As by this time we were very much known to the different products

and services provided by our bank which eventually helped us in making the clients understand

the benefits of availing these services.

With the help of this project we also found out, how customer’s Need is is generated and what

the customer intend to have keeping in mind his current and future needs.

In the fourth and fifth week of the summer internship program we started preparing the

questionnaire based on the information gathered above. The questionnaire which is prepared is

of two kinds one is based on the investors and the other one is based on the institution.

Through the questionnaire of investor a comparison would be made regarding the services

provided by the various banks and the satisfaction level of the client.

While the questionnaire of the institution would help me to study about the services provided by

the particular bank and about their special feature, which is the USP of the bank and its services.

This (USP) is basically helping out the bank to attract new clients and satisfying them.

The main intension for preparing the Questionnaire is to know and judge that; how various

factors such as, the Product, Profession knowledge, Tax planning Schemes, Return of the

Investments, Additional services, etc have an impact on the client while selecting the bank’s

wealth management services.

As the major objectives of the study is to make a comparison between the wealth management

services provided by various bank in Jaipur.

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On the completion of the project it is found that HSBC has an edge over other banks in context

of the services provided i.e. services beyond the banking services.

LIST OF ILLUSTRATION

SR.NO. DESCRIPTION PAGE NO.

1 Introduction about the project 8

1.1 Description of wealth management 9

1.1.2 Services undertaken in wealth management 12

1.2 Components of wealth management 14

1.3 Dimensions of wealth management 14

1.3.1 Client relationship 14

1.3.2 Portfolio construction, planning and

management expertise and discipline

14

1.3.3 Risk 14

1.3.4 Return 15

1.4 Justification for adopting wealth management

services

15

1.5 Investment avenues as a part of wealth

management services provide by the financial

institutions

16

1.6 Review of existing literature 24

2 Introduction of HSBC 25

2.1 HSBC India 25

2.2 HSBC entities group in India 28

2.3 Wealth management system 29

2.4 Customer relationship management system 30

2.5 Products of HSBC 30

3 Main text 37

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3.1 Objectives 37

3.2 Scope of the study 37

3.3 Research design 37

3.4 Sampling procedure 37

3.5 Sample size 38

3.6 Data collection 38

3.7 Data analysis and interpretation 39

3.7.1 Phase I interpretation through pie charts and

graphs in excel

40

3.7.2 Phase II comparative analysis 65

3.7.2 Phase III Hypothesis testing 69

3.8 Findings ,SWOT analysis 71

3.9 Suggestions and recommendations 73

4 References and bibliography 74

5 Appendices 75

5.1 Questionnaire 75

5.2 Respondents details 84

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1) INTRODUCTION ABOUT THE PROJECT

COMPARATIVE ANALYSIS OF WEALTH MANAGEMENT SERVICES IN JAIPUR CITY

OF RAJASTHAN

A BRIEF INTRODUCTION TO WEALTH MANAGEMENT

Wealth management is a vast concept which comprises of managing the wealth i.e. the surplus

amount of money or the savings of an individual by investing them into diversified tools like

mutual funds, insurance ,gold, real estate, Fd’s, Equities, debts, etc. so that the wealth of an

individual can be maximized.

It is a investment advisory service covering financial planning keeping in mind the individuals

current and future need .It provides the individual with personalized banking, asset management,

taxation advisory and portfolio management .Earlier people use to restrict their investment to

only real estate, gold, FD’s but after the emergence of the equity market (stock market )the

investment portfolio of the investors increased and as the investment in the equity market

requires knowledge about it ,so the need or the importance of wealth management services was

felt. In wealth management services the banks provides their clients with a specialist person who

has good domain knowledge about the stock market as well as in other lucrative products

through which the risk of the client can be reduced and his wealth could be maximized and tax

planning could be done. This specialist person is known as the PFR (personalized financial

reviewer). The specialist invests on the behalf of its client and on a regular basis guides the client

about his current and future needs. Currently a number of private banks and financial institutions

are providing are providing wealth management services such as CitiGroup, HSBC,ICICI,ABN

AMRO etc. So in the end we can say that wealth management is not just sticking to your budget

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but more than that which is one of the right approach and a customized solution to fulfill once

current and future needs.

1.1) DESCRIPTION OF WEALTH MANAGEMENT

Before understanding the concept of wealth management first let us understand what actually

wealth is

Wealth is an old English word “weal” which means “well being”. The term was originally an

adjective to describe the possession of great qualities.

It is described as an abundance of items of economic value, or the state of controlling or

possessing such items, usually in the form of money, real estate and personal property.

In economics wealth refers to value of assets owned minus the value of liabilities owned at a

point of time. It is categorized into three principal categories: personal property including home

or automobiles, monetary savings such as accumulation of past income, and business assets

including real estate, stocks and bonds.

WEALTH MANAGEMENT SERVICES

Wealth management is classified as an advanced type of financial planning which provides the

high net worth individuals (HNI) and families with private banking, estate planning, asset

management and investment management services with the goal of sustaining and growing the

long term wealth of an individual.

The history of wealth management can be traced back from the 1990’s when this term originated

in the U.S. with the brokers dealers, banks and insurance companies. The concept of wealth

management was generally evolved for the high net worth individual (HNI) who had surplus

amount of money with them and which could be invested in various types of investment

avenues, insurance and banking products and services.

With the repeal of the glass steagall act in 1999 now all the financial firms are able to provide

the above services from the same office.

For the wealth management services the targeted clients are:

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High net individual (HNI)

Ultra high net worth individual (UHNWI)

The services covered under the wealth management services are:

Portfolio management rebalancing,

Investment management and strategies,

Financing tax advisory

Estate planning

In terms of product it includes stocks and stocks trading, equity linked and structured saving

products, mutual funds, foreign currency and alternative investments like art, wine, precious

metals, and property.

The reason for the emergence of wealth management services is that until 1990’s the investment

of the individual was largely restricted to real estate, bonds, fixed deposit and gold .But now

with the passage of time and with the emergence of new financial investment avenues like

mutual funds, ULIP (Unit Linked Insurance Plan) etc which are developed around the equities,

which require a In-depth knowledge of the product as well as about the market conditions.

Theses instrument have a higher risk and higher return attached to them. Due to the higher risk

involvement as well as due to the high volatility of the product the need for a specialist emerged

who could manage the wealth of the high net worth individual(HNI) ,these people who manages

the wealth of the client are known as the as the wealth managers.

Under the wealth management services a portfolio of the client is made and then it is managed.

This portfolio is prepared after doing the personalized financial review. In the banking industry a

portfolio of a client only comprises of mutual funds, debt, insurance etc. Below first let us

understand the concept of portfolio management and personalized financial review.

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PORTFOLIO MANAGEMENT: Portfolio management is one of the services provided under

the wealth management services. It is basically a pool of individual investments owned by an

individual. It usually contains a combination of stocks, mutual funds, bonds and money market

instruments. It is an investment portfolio technique that aims to balance risk and create

diversification by dividing assets among major categories such as cash, bonds, stocks, real

estate and derivatives.

Goals of a portfolio management:

1. Maximize the value of the portfolio

2. Seek balance in the portfolio

3. Keep portfolio projects strategically aligned

PERSONALIZED FINANCIAL REVIEW: Personalized financial review (PFR) is personalized

to suit individual and hopes and aspirations. A PFR is a tool that assists in analyzing client’s

financial situation and present and future needs of the client by taking into consideration his

lifestyle, investment objectives, income stability, risk profile and financial obligations.

A financial planner or portfolio manager or financial advisory manager uses the information

taken through the PFR to draw up a comprehensive financial plan that incorporates the most

suitable financial program or the plan that are available on the basis of best value to the client.

By this a combination of deposits, mutual funds, insurance schemes, FD’s and various other

investments are prepared which suits the clients plan and his risk appetite .The aim of the

personalized financial review is to make a sketch about the clients investment style as well as to

help the financial advisor to understand the client’s needs and wants so that they can work

closely with the client and achieve his financial goals.

ASSET ALLOCATION: Asset allocation is the distribution of assets among a variety of

different asset categories such as stocks, bonds, and cash equivalent instruments. The principle

of asset allocation offers investors several potential advantages such as:

1) Reducing emotional response to market volatility, allowing the investor to stay invested

over the long term.

2) Helping to minimize overall portfolio risk for a given level of return.

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3) Seeking to provide more consistent long-term performance that can improve the

likelihood of achieving a desired investment goal over time.

4) Encouraging a long-term investment perspective.

1.1.2) Services undertake in wealth management services:

1) Private banking: under the wealth management services the client gets the benefit of

private banking. These clients are basically the high net worth individuals (HNWIs) who

have the surplus amount of money which is generally more than an average person and

because of which they have various means to have access to a large variety of

conventional and alternative investments.

In addition to providing exclusive investment-related advice, private banking also goes

beyond managing investments to address a client's entire financial situation. Under

wealth management services there are various services among which some of the services

include: protecting and growing assets in the present, providing specialized financing

solutions, planning retirement and passing wealth on to future generations.

2) Wealth creation: the major objective of wealth management services is to enhance the

wealth of the client through proper financial planning and investing the client’s money

into a diversified portfolio so that the wealth of the client can increases and his risk could

be reduced.

3) Retirement benefit planning: under this plan an estimate is prepared for the future

requirements of the client taking into consideration his current needs. In this plan a

planning is done for the source of income for the client after his retirement. After the

retirement of the client the bank provides the pension to the client on a regular basis.

4) Child education planning and children’s marriage planning: under this plan also an

estimate is prepared for the future requirements of the money when the children of the

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client opt for higher study. This is done by regularly saving the amount and investing the

same amount into a diversified portfolio so that returns at that time could be generated.

5) Managing the portfolio: Portfolio Management is an art and science of making decisions

about investment mix and policy, matching investments to objectives, asset allocation for

individuals and institutions, and balancing the risk against performance.

6) Portfolio management service: Portfolio management is all about strengths, weaknesses,

opportunities and threats in the choice of debt vs. equity, domestic vs. international,

growth vs. safety, and many other tradeoffs encountered in the attempt to maximize

return at a given appetite for risk. So, under the wealth management services it is the duty

of the relationship manager to manage the portfolio of the client according to the client’s

needs his risk appetite.

7) Asset management/Allocation service: Asset allocation is an investment portfolio

technique that aims to balance risk and create diversification by dividing assets among

major categories such as cash, bonds, stocks, real estate and derivatives. Each asset class

has different levels of return and risk, so each will behave differently over time. So it is

the duty and role of a portfolio manager to allocate the funds or the assets in the right

proportion so that the returns on the investments could be generated effectively.

8) Investment management: it is a professional management of investments that are done

into various securities (shares, bonds etc) assets (e.g. real estate), to meet specified

investment goals for the benefit of the investors. Here Investors may be the institutions

(insurance companies, pension funds, corporations etc.) or private investors (both directly

via investment contracts and more commonly via collective investment schemes e.g.

mutual funds). Investment management services includes elements of financial analysis,

asset selection, stock selection, plan implementation and ongoing monitoring of

investments

9) Other services

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a) Debt Restructuring program

b) Tax Planning

c) Risk Management Planning

d) Mutual Fund Investment

e) Investing in Equities etc

1.2) COMPONENTS OF WEALTH MANAGEMENT

Gold

Mutual funds

Investment in equities and debt instrument

Fd’s (fixed deposit)

Insurance

Real estate

Bonds

Art funds

1.3) DIMENSIONS OF WEALTH MANAGEMENT Before choosing a wealth management service there are few thing that a customer expects these

are

1.3.1) THE CLIENT RELATIONSHIP: the first component is relates to communication

and reporting, education and risk assessment of the investor which governs the client

relationship.

1.3.2) PORTFOLIO CONSTRUCTION, PLANNING AND MANAGEMENT

EXPERTISE AND DISCIPLINE: the second area of expertise that relates to is the asset

management and allocation, expertise in constructing and planning and managing the

assets so that the primary objective of the client can be fulfilled.

1.3.3) RETURNS: the primary objective of any investor is to maximize expected returns

from his investment, subject to various constraints, primarily risk. Returns are the

motivating force, inspiring the investor in the form of reward for undertaking the

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investment. The importance of returns in any investment decision can be traced to the

following factors:

It enables investors to compare alternative investment in terms of what they have to offer

the investor.

Measurement of the historical (past) returns enables the investors to assess how well they

have done.

Measurement of historical returns also helps in estimation of future returns

We can now say that there are two types of return they are:

Realized return: This is the ex -post (after the fact) return that was or could have been

earned.

Expected return: this is the return from an asset that investors anticipate or expect to earn

over some future period. The expected return is subject to uncertainty, or risk, and may or

may not occur.

1.3.4) RISK: risk and return go hand in hand in investments and finance. One cannot talk

about returns without talking about risk, because, investment decision always involve a

trade-off between risk and return. Risk can be defined as the chance that the actual

outcome from an investment will differ from the expected outcome. This means that,

more variable the possible outcome that can occur, the greater the risk.

1.4) JUSTIFICATION FOR ADOPTING WEALTH MANAGEMENT

SERVICES

1) Unclear investment objectives: this is one of the major causes why one should avail

wealth management services; mostly people are not clear about the objective which leads

them to dissatisfaction. By availing wealth management services the bank, the bank’s

advisor can help the client as well as they can understand his objectives. Every client has

different objectives such as to preserve the capital, to change the lifestyle, to multiple the

money (maximization of returns) etc.

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2) Incomplete understanding: generally it happens that people are not aware of the market

conditions as well as about the product and due to which they invest inappropriately and

due to which their portfolio gives them less returns. A bank which provides the customer

with theses services has a research team that keeps the track of the market conditions

theses people are the professional and have a good experience. So In order to maximize

return one should go for wealth management services.

3) Inappropriate understanding regarding the diversification: it is known to everyone that

how important diversification is. So one has to keep his portfolio diversified but due to

lack of knowledge one does not understand the concept of under diversified and over

diversified by keeping the portfolio over diversified the significance of keeping the

individual holding reduces while on the other hand keeping the portfolio under

diversified leads to higher risk on the individual’s holding. Again for this one should

avail wealth management services so as to keep the portfolio balanced.

4) Insufficient knowledge regarding the tax laws or the avenues available: there are lot of

products that are tax free as well as there are product in which there is some time horizon

after which the invested products get a tax rebate so for availing tax redemption one

should take the advice of an expert and should go for wealth management services.

1.5) INVESTMENT AVENUES AS A PART OF WEALTH MANAGEMENT

SERVICES PROVIDE BY THE FINANCIAL INSTITUTIONS

Mutual funds: A mutual fund is essentially a diversified portfolio of financial instruments -

these could be equities, debentures / bonds or money market instruments. A mutual fund is

created by pooling together contributions from various investors. The corpus of the fund is then

deployed in investment alternatives that help to meet predefined investment objectives.

The fund (and through it, its investors) receives help in achieving the common investment

objectives from its fund manager. The fund compensates its fund manager through a fee, and

also bears the other expenses incurred in managing it. The income earned through these

investments, and the capital appreciation realized by the fund, are shared by its investors in

proportion to the number of units of the fund owned by them (pro rata). Thus a Mutual Fund is

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the most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost.

fund Flow chart showing the working of a mutual

Types of Mutual Funds

Mutual fund schemes can be classified on the basis of their structure and there investment

objective

By Structure:

Open-ended Funds

An Open-ended Fund is that kind of fund that are available for subscription all through the year.

These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset

Value (NAV) related prices.

Close-ended Funds

A Close-ended Fund has a stipulated maturity period, which generally ranges from 3 to 15 years.

The fund is open for subscription only during a specified period. Investors can invest in the

scheme at the time of the initial public issue and thereafter they can buy or sell the units of the

scheme on the Stock Exchanges, if they are listed. The market price at the stock exchange could

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vary from the scheme's NAV on account of demand and supply situation, unit holders'

expectations and other market factors.

By Investment Objective:

Growth Funds

The aim of growth funds is to provide capital appreciation over the medium to long term. Such

schemes normally invest a majority of their corpus in equities. Growth schemes are ideal for

investors who have a long-term outlook and are seeking growth over a period of time.

Income Funds

The aim of Income Funds is to provide regular and steady income to investors. Such schemes

generally invest in fixed income securities such as bonds, corporate debentures and Government

securities.

Income Funds are ideal for capital stability and regular income. Capital appreciation in such

funds may be limited, though risks are typically lower than that in a growth fund.

Balanced Funds

The aim of Balanced Funds is to provide both growth and regular income. Such schemes

periodically distribute a part of their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents. This proportion affects the risks

and the returns associated with the balanced fund - in case equities are allocated a higher

proportion, investors would be exposed to risks similar to that of the equity market.

Balanced funds with equal allocation to equities and fixed income securities are ideal for

investors looking for a combination of income and moderate growth.

Money Market Funds

The aim of Money Market Funds is to provide easy liquidity, preservation of capital and

moderate income. These schemes generally invest in safer short-term instruments such as

Treasury Bills, Certificates of Deposit, Commercial Paper and Inter-Bank Call Money. Returns

on these schemes may fluctuate depending upon the interest rates prevailing in the market.

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These are ideal for corporate and individual investors as a means to park their surplus funds for

short periods.

Other Equity Related Schemes:

Mutual fund schemes may be classified on the basis of their structure and its investment

objective

Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Indian Income

Tax laws, as the Government offers tax incentives for investment in specified avenues.

Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed

as deduction under Section 80c of the Indian Income Tax Act, 1961.

Sectoral Schemes

Sectoral Funds are those which invest exclusively in specified sector(s) such as FMCG,

Information Technology, Pharmaceuticals, etc. These schemes carry higher risk as compared to

general equity schemes as the portfolio is less diversified, i.e. restricted to sector(s) / industry

(ies).

Plans under mutual funds

In order to cater to a range of investor needs, there are various investment plans.

Some of the important investment plans include:

Growth Plan

Dividend is not paid-out under a Growth Plan and the investor realizes only the capital

appreciation on the investment.

Income Plan

Dividends are paid-out to investors under an Income Plan to the investors. However, the NAV of

the mutual fund scheme under an Income Plan falls to the extent of the dividend payout.

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Dividend Re-investment Plan

in this the dividend accrued on mutual funds is automatically re-invested in purchasing

additional units in open-ended funds. In most cases mutual funds offer the investor an option of

collecting dividends or re-investing the same.

Retirement Pension Plan

some schemes are linked with retirement pension. Individuals participate in these plans for

themselves, and corporate participate for their employees.

Systematic Investment Plan (SIP)

Here the investor is given the option of preparing a pre-determined number of post-dated

cheques in favor of the fund. The investor is allotted units on the date of the respective cheques

at the applicable NAV.

Systematic Withdrawal Plan

As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the

investor the facility to withdraw a pre-determined amount / units from his fund at a pre-

determined interval. The investor's units will be redeemed at the applicable NAV as on that day.

ADVANTAGES OF MUTUAL FUNDS

Following are the major advantages of investing in Mutual Fund:

Portfolio Diversification/Risk reduction: An investor holds a diversified portfolio even with a

small amount of investment, which would otherwise require a big capital. Further, as the funds

are invested in diversified portfolios, hence it reduces the riskiness of the investments.

Reduction of transaction costs: -While investing through the funds, an investor has the benefit

of economies of scale; the funds incur lesser costs because of larger volumes, a benefit passed

on to its investors.

Professional Management: Mutual funds are managed by professionals who have requisite

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skills and resources to analyze the various investment options in these fast-moving, global and

sophisticated markets.

Liquidity: Often, investors hold shares or bonds they cannot directly, easily and quickly sell. If

they invest in the units of a fund, they can generally cash their investment any time, by selling

their units to the fund if open-end, or selling them in the market if the fund is close-end.

Convenience and flexibility: - Investors have the option of transferring their holdings from one

scheme to the other, get updated market information and so on.

Tax Benefits: Income tax benefits are granted to investors in mutual funds, making it more tax

efficient as compared to other comparable investment avenues. There are various types of Tax

incentives for the investors of mutual funds. There are various sections of the Income Tax Act

that provide for the tax rebates and exemptions on investments in mutual funds and the income

arising thereof.

Other advantages

Convenient Administration

Return Potential

Well regulated

Equity Linked Saving Schemes (ELSS)

An ELSS fund is similar to an equity fund but has a lock-in period of three years. According to

the central government's Equity Linked Saving Schemes (ELSS) guideline, 1992 and the

amendment in 1998, these schemes offer tax rebates to the investor under section 88 of the

Income tax act, 1961. Also these schemes generally diversify the equity risk by investing in a

wider array of stocks across sectors.

The investor also gets benefit on account of a three year lock-in period which gives the fund

enough time to take both the upswing as well as downswing of the market conditions in its

stride. As the funds remain with the fund manager for at least 3 years, the fund manager too has

enough leeway to play with a fixed corpus and can take long-term calls on any scrip. Which is

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generally not the case with any normal open-end scheme and so the performance vary in short-

term. And as they have the feature of tax redemption they have a better capital appreciation than

others.

Systematic Investment Plan (SIP)

In this the investor is given the option of managing his investments on a periodic basis and thus

inculcates a regular saving habit. He may issue a pre-determined number of post-dated cheques

in favor of the fund. He gets the units on the date of the cheque at the NAV of that date.

Based on the concept of rupee cost averaging, SIP's allow an investor to invest a prefixed

amount with a scheme at set intervals, and derive the benefit of fluctuating share prices and

NAV's. So, when the share price drops, the investor get more units and when the share price

moves up, he gets less. Finally, if the NAV is high, his entire investment is valued at the

existing higher level, while his cost of purchase averages out.

ULIP

ULIP stands for unit liked insurance plan. It provides for life insurance where the policy value

at any time varies according to the value of the underlying assets at the time, ULIP is a life

insurance solution that provides for investment. It also provides solutions for insurance

planning, financial needs, financial planning for children’s future and retirement planning. The

investment is denoted as unit and is represented by the value that it has attained called net asset

value (NAV). ULIP has tax exemption under section 80 c of the Indian Income Tax Act 1961

and also returns will be covered under section 10 (10 D).

Features of Unit Linked Insurance Plan (ULIP)

ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The

plan is a one-stop solution providing:

1) Life Protection

2) Investment and savings

3) FlexibilityGB

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4) Adjustable Life cover

5) Investment options

6) Transparency

7) Options to take additional cover against death due to accident

8) Disability

9) Critical Illness

10) Surgeries

11) Liquidity

12) Tax Planning

Advantages of unit linked insurance plan

Unit-linked plans have several advantages. They are:

Simple, clear and easy to understand

Transparent and visible for customers to take decisions

Flexible and adaptable

Puts the policyholder in control

Policyholder gets the entire upside on the performance of his fund.

FIXED DEPOSIT

A fixed deposit is meant for those investors who want to deposit a lump sum amount of money

for a fixed period of time, say for a minimum period of 15 days to five years and above, thereby

earning a higher rate of interest in return. Investor gets a lump sum (principal + interest) at the

maturity of the deposit.

Bank fixed deposits are one of the most common savings scheme open to an average investor.

Fixed deposits also give a higher rate of interest than a savings bank account.  The facilities vary

from bank to bank. Some of the facilities offered by banks are overdraft (loan) facility on the

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amount deposited, premature withdrawal before maturity period (which involves a loss of

interest) etc.

IPO

Initial public offering, or IPO, is the first sale of stock by a company to the public. It is also one

of the components of wealth management which is a direct dealing of an investor in the share

market. It has a feature of higher risk and higher return. One can multiple his money or wealth

very quickly by investing into this avenue.

ARBITRAGE FUNDS

Arbitrage is one of the most effective ways to insulate against market volatility. An arbitrage

fund buys equities in the cash market and simultaneously sells in the futures market, thus

ensuring market neutrality for the investment. In other words, it is a unique asset class by itself

where returns are generated by capturing the pricing differential between the cash and the futures

markets. It is also termed as a market-neutral fund where the returns are not going to be impacted

by volatility in the market

1.6) REVIEW ON EXISTING LITERATURE

According to the recent released study of Capgemini and Merrill Lynch in the year 2005

the number of high net worth individuals (HNI) in India grew at 14.6 percent which was

twice of the world’s growth of 7.3 percent in 2004. Which shows that the need for the

wealth management services is increasing day by day as well as the there is a lot of

potential available in the market

According to Mr. Sherman Tan, principal consultant and director at Innovar Pvt .Ltd:

China’s domestic product grew by 10.7 percent in 2006 which was the fastest in the span

of 11 years and the World Bank predicts that china’s economy will grow by 10 percent

and industry observer noted that the nation has good chance of becoming the 3rd largest

24

economic power by 2008. Also Goldman Sachs indicates that if India can sustain an

annual growth rate of 8 percent till 2020, it will overtake the UK as the world’s fifth

largest economy by 2010.

And with such high growth in the region, Asia pacific will remains one of the

largest and the fastest growing market for private banking. It is also estimated that over a

quarter of the world’s 9 million high-net-worth individuals (HWNI) who possess at least

US $1M in net assets are located in the Asia pacific region. This again shows the scope

of the wealth management services in the near future. And thereby it is showing an

opportunity for many banks and institution that are providing the wealth management

services.

Number of High Net worth Individuals in the Asia Pacific (ex Japan) by country (000’)

According to a new report by Merrill Lynch - Capgemini which shows that Indians own

4 per cent of the Asia-Pacific region's total wealth is owned by high net worth individuals

of Indians. The number of ''high net worth individuals'' (HNWIs) in India at the end of

2006, grew by 20.5 per cent to 100,000. This makes India the second fastest growing

population of HNWIs in the Asia Pacific Region, according to the second Asia-Pacific

Wealth Report published by Merrill Lynch and Capgemini.

25

HNWIs are people who have net financial assets of at least $1 million, excluding their

primary residence and consumables.

Indian HNWIs held a combined $350 billion in financial assets at the end of 2006,

representing 4 per cent of total Asia Pacific HNWI wealth. A demographic analysis also

reveals that the majority of India's HNWIs are between the ages of 41- 55 years, said the

report.

According to US – India Business Summit, 2006, India is one of 10 fastest-growing

populations of HNWIs globally.

These entire trend show that there is a lot of potential in market for the wealth

management services and still there is a lot of untapped market available to the financial

institution which is opportunity for them to grow.

26

2) INTRODUCTION ABOUT THE COMPANY

HSBC

THE WORLD’S LOCAL BANK

HSBC is one of the largest banking and financial services organizations in the world. HSBC's

international network comprises over 10,000 offices in 83 countries. Through an international

network linked by advanced technology, including a rapidly growing e-commerce capability,

HSBC provides a comprehensive range of financial services like:

Personal Financial Services

Commercial Banking

Corporate, Investment Banking

Private Banking

Other activities and Services

The HSBC Group has an international pedigree which is unique. The HSBC Group is named

after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which

was established in 1865 to finance the growing trade between China and Europe.

2.1) HSBC INDIA

27

HSBC’s origin in is India date back to 1853, when the mercantile bank of India was established

in Mumbai. The bank has since steadily grown in reach and services offering keeping pace with

the evolving banking and financial needs of its customers.

In India, the bank offers a comprehensive suite of world class products and services to its

corporate and commercial banking client as also to the fast growing personal banking customer

base

HSBC is the world’s local bank, a global organization that understand the local population and

values the diversity of the market they operate in. diversity is the central to HSBC’s brand image

and connects with managing for growth.

Currently Neelesh Heredia has been appointed as Deputy Chief Executive Officer (DCEO) of

HSBC in India.

2.2) HSBC ENTITES GROUP IN INDIA

PRIVATE EQUITY : HSBC Private Equity Management (Mauritius) Limited a

subsidiary of HSBC Private Equity (Asia) Limited in the Hong Kong, has a liaison office

in Mumbai. The company specializes in the provision of equity capital to unlisted growth

companies in India and Sri Lanka.

AUDIT SERVICES : HSBC Professional Services (India) Private Limited provides

internal audit unit worldwide with particular emphasis on the IT, Treasury, Asset

management, Private banking and Insurance functions.

INVESTMENT BANKING : HSBC Securities and Capital Markets (India) Private

Limited has two main business lines. It’s institutional and proprietary, broking services

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are based in Mumbai and has seat on two of India’s primer stock exchange, the Bombay

stock exchange and national stock exchange. It deals in the Indian securities for both

Indian and international institutions and for select retail clients and is backed by an

extensive research team. The corporate finance and advisory business with office in

Mumbai and New Delhi, offers a full range of integrated investment banking services in

India and internationally.

SOFTWARE DEVELOPMENT : HSBC Software development (India) Private Limited

has established a software center in Pune to develop solutions for HSBC’s group office

worldwide.

FINACIAL PLANNING SERVICES : Inflation, falling interest rates and fluctuating

market conditions entails to plan the finance carefully. HSBC Financial Planning

Services offer assistance to secure the future.

HSBC PRIMER : HSBC Primer is all about the finer aspects of Relationship Banking. It

embraces a range of benefits combining global expertise with local understanding.

HSBC PREMIER

P for Product Range

R for Relationship Manager

E for Exclusive Services

M for Managing Your Wealth

I for Investment Advisory

E for Emergency Service

R for Rewarding Proposition

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2.3) WHEALTH MANAGEMENT SYSTEM: is a modular, fully scalable, integrated core

banking and investment management system designed for the specific needs of retail,

personal and international private banks. It offers a unique combination of an extensive

portfolio of functions with impressive flexibility that enables end-to-end processing of

investment products from diverse asset classes including structured deposits, structured

notes, bonds, mutual funds and insurance. Wealth management system is customized

software product which is used by HSBC bank. With the help of WMS a portfolio of the

client is prepared and all the information regarding the investments of the client is stored in

wealth management system. In this system a plan for the future investments of the client is

also prepared. The major dealing of the wealth management system is into mutual funds or in

only equities and equity related products. For availing service of the wealth management

system a client has to sign a LOI (letter of instruction) in which all the terms and conditions

are written, even a relationship manager has to follow the term and conditions of a LOI. A

relationship manager has to get a LOI singed every time he is buying or selling the funds on

behalf of the client.

2.4) CUSTOMER RELATION MANAGEMENT SYSTEM (CRMS): is also a customized

software product which is used by HSBC. With the help of this software the account balance, the

recent transaction of the client can be extracted. With the help of CRMS the information related

to the type of account, the relationship manager etc can also be extracted.

2.5) Products of HSBC

HSBC SAVING ACCOUNT

There are majorly four kinds of savings accounts saving in which HSBC deals into.

Among them HSBC premier and Power vantage are the savings accounts with the

Wealth management services while the other two are just a regular savings account.

1. HSBC premier account

2. Power vantage account

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3. Smart money saving account

4. No frills saving account

SMART MONEY SAVING ACCOUNT

It enables a client to enjoy all the benefits of a savings account coupled with the high returns of a

fixed deposit. A unique combination of a fixed deposit and a savings account, the HSBC Smart

Money Account lets you enjoy the higher returns of a fixed deposit and yet retain the liquidity

and flexibility to meet all your needs.

Features and benefits

Higher interest rates

Free savings accounts

Up to 90% overdraft

Anytime access

Free HSBC credit card

Free HSBC International debit card

Free online bill payment services

NO FRILLS SAVING ACCOUNT

HSBC’s No Frills Savings Account makes it convenient for the customer to avail

. World-class banking privileges at a nominal cost. No Frills Savings Account allows a client

to bank with HSBC with a zero minimum balance requirement i.e. a client can maintain

his account without any minimum or average balance requirement. The No Frills Savings

Account is aimed at making your banking transaction simple and convenient

FEATURES AND BENEFITS

The HSBC No Frills Savings Account has no hidden costs

A client can access his account through any VISA ATM in India with his HSBC debit

card. One FREE debit card will be available per account

Two FREE transactions (excluding balance enquiries) per month at HSBC ATMs

31

Internet Banking and Phone Banking facility each available at a nominal annual fee

of Rs. 99 only

1 FREE branch transaction per month. This transaction should be of the nature of

cash deposit only. Additional transactions (over and above the 1 FREE transaction),

is charged and a fee of Rs. 50 per transaction is charged

Keep track of your account with free quarterly statements. A client can also have an

option to receive E-Statements

HSBC’S WEALTH MANAGEMENT SERVICES

HSBC provides the wealth management services to its client by two kinds of accounts:

Power Vantage Account

Premier

POWERVANTAGE ACCOUNT: HSBC's Power Vantage Account is a proposition

that offers, amongst other benefits, a feature called the Personalized Financial Review

(PFR). A trained Financial Planner uses the PFR to help you evaluate your finances,

identify your current and future financial needs and assist you in drawing up a plan to

meet them. While analyzing your current and future need we take into consideration

your lifestyle, investment objectives, income stability, risk profile and financial

obligations. Under Power Vantage account all the avenues of investment are available

to a client All these sets it apart from other ordinary banking accounts.

Features of Power Vantage Account

A Power Vantage Relationship Manager to there to assist the client in their

banking and financial planning needs

Unlimited free transactions (cash withdrawals and balance enquiries) at 23,500

HSBC and non - HSBC Visa ATMs in India using your Power Vantage debit card

32

Dedicated Service Desk and Teller Counters to assist you with your banking

needs, enabling you to save time

Higher cash withdrawal limit of up to Rs. 50,000 and funds transfer up to Rs.

100,000 with your Power Vantage debit card, across 23,500 HSBC and non-

HSBC Visa ATMs in India and more than 1 million ATMs overseas

Use your Power Vantage debit card for purchases of up to Rs. 50,000 per day at

over 350,000 merchant establishments in India and over 26 million such

establishments overseas

Free Cheques Payable at Par (CPP) facility in all cities where HSBC has

branches, helping you save on out-station clearing time and costs

No-bounce Cheque Protection which means cheques presented through clearing

irrespective of funds available, will be honoured (overdrawing of a maximum of

Rs. 10,000)

Monthly Composite Statement giving you a snapshot of all deposits and loans

Joining fee waiver and 50% off on the annual fee for your credit card

PREMIER ACCOUNT: A Premier Account aims to deliver an exceptional level of service, no

matter where you are in the world. In this account also a relationship manager is attached to a

client who is the single point of contact with the bank. In this account also there are all the

avenues of investments available. HSBC premier is one of the world’s first linked up banking

service that enables you to explore and seize rich opportunities which the world has to offer. At

the heart of premier linked up banking, lies the network of over 250 international premier

centers. In every single one of them the client is recognized by someone who is qualified to

resolve the problems as quickly as a customer would expect back home. HSBC helps the premier

clients with basic banking transactions and with preferential access to phone banking and

internet banking services.

With HSBC premier, you have a dedicated relationship manager, who, supported by a team of

experienced financial experts, gains thorough understanding of client’s current needs, risk profile

and future financial goals to help and develop personalized wealth management solutions. The

relationship manager will suggests different investment avenues which suits the profile of the

33

client and helps in deriving optimum returns on the investments. The various other benefits and

privileges provided by HSBC under premier are:

24*7 BANKING- the banking services can be availed through personal telephone all 24

hours and 7 days a week.

HOME BANKING- the client is entitled to the privileges’ of banking from the comforts

of the home. It offers physical delivery of cash and cheques, drafts etc.

NO BOUNCE CHEQUE PROTECTION-“no bounce cheque protection” of up to

100000 rupees is also one of the benefits provided to the premier customer.

SAFE DEPOSIT LOCKER SERVICE

HSBC PREMIER DEBIT CARD-with the debit card the withdrawal of rupees 1, 00,000

in a day from any visa or HSBC ATM without any charges.

EXCLUSIVE HSBC PREMIER CENTRES- the premier customer has an access to the

exclusive premier centers around the world in 33 countries where he can obtain money

with ease, seek assistance, and conduct banking transactions.

HSBC PREMIER MASTER CREDIT CARD- an approved HSBC premier master credit

card which has a minimum limit of rupees 2, 00,000.

GLOBAL PREVILIGES-various global privileges like:

o Exchange foreign currency without any commission at any branch of HSBC that

handles foreign currency exchange.

o Avail of emergency encashment service as an able backup in case of loss of card

or money during travel

o Air travel, hotel, and car hire reservation

o Medical and dental referral services

o Track lost luggage

o Information to help to know the destination better, even before the arrival.

Other Products of HSBC

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My Terms Credit Personal Loan: is the only personal loan which lets you choose how to

repay. It is Just like a friend who lets you to repay the way you want. My Terms Credit Personal

Loan gives client 4 easy repayment options, from which the client can select one that suits him

the best. Loan covers financing marriage, furnishing home or a family holiday. It's just like

borrowing money from a friend.

Features & Benefits:

Lower EMI in the first year

Interest on utilized amount only, not on the entire loan

Last EMI waiver

Standard EMI repayment

Credit cards: a credit card is a plastic card that is issued by the bank authorizing payment for

purchases and an interest is charged on the outstanding balance. The card is issued by the bank

which allows the holder to buy goods and pay for them latter. HSBC provides 52 days of credit

period by which a customer has to pay back the amount, but if the customer does not pays back

the amount till the due date he is charged by the bank.

There are two types of credit card in which HSBC deals in:

HSBC gold credit card

HSBC classic credit card

Features and benefit

0% fuel surcharge

Lower interest options

Balance transfer facility

Loan on phone

Travel cash back

I NSURANC E

35

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.

HSBC deals in the following types of insurances:

Insurance for single

Insurance for married

Family insurance

Retirement insurance

Life insurance

Nirvana pension plan

Loan repayment protection insurance

Non life insurance

Travel guard

Home secure

Maharaksha personal injury policy

CRITI CARE CritiCare is a special product of HSBC which is provided only to

existing HSBC clients. These could be the account holders or a credit card holder of

HSBC. CritiCare is basically an illness insurance policy, which allows a client to nurse

himself back to good health without financial burdens about his medical expenses. It is a

group insurance policy from TATA AIGGENERAL INSURANCE COMPANY Ltd.; it

covers 11 critical illnesses and surgeries.

11 diseases that are covered under CritiCare are:

First heart attack

Stroke

Cancer (excluding skin cancer)

Kidney failure

Major organ transplant

Coma

Major burn (75%)

Multiple sclerosis

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Paralysis

Total blindness

Features

A client becomes eligible for the claim on the policy at the first diagnosis only

No pretest is required

Second opinion is provided

Tax exempted premium.

3) MAIN TEXT

3.1) OBJECTIVES

1. To understand the various concept of wealth management services.

2. To understand the wealth management services and its tools

3. To know about the various wealth management services available in Jaipur.

4. To make a comparative analysis of the wealth management services provided in Jaipur.

5. To suggest measures for the improvement in wealth management services in Jaipur based

upon the findings of the study.

3.2) SCOPE OF THE STUDY: The area covered under the project study was Jaipur. Basically

it caters to the investors who have opted for wealth management services by various banks. This

was done through the filling up of questionnaires and interacting with the walk in customers.

In this study the respondents were also the people of the bank from whom the questionnaire of

institution were filled. These were the employees of various banks present in Jaipur.

3.3) RESEARCH DESIGN: research design constitutes the blueprint for the collection,

measurement and analysis of the data. Basically research design is the plan and structure of

investigation so conceived as to obtain answers to research question.

37

The kind of research design used for the completion of our project study is a combination of

exploratory cum descriptive study.

Exploratory study: it is a kind of study in which the researcher is not clear with the idea of

problem. Exploratory study help the researcher to develop the concept more clearly, establish

priorities, develop operational definitions and improve the final research design.

3.4) SAMPLING PROCEDURE: the basic idea of sampling is that by selecting some of the

elements in a population, we may draw conclusion about the entire population. It is an n

essentially part of research process.

Convenience sampling: it is a kind of sampling in which the selection of units from the

population is based on the easy availability and accessibility to the researcher. Convenience

sampling is at its best in the survey dealing with the exploratory purpose for generating ideas and

hypothesis.

In our study we have also used this kind of sampling because majorly the respondents were the

walk in customers of the bank as well as the neighbors, relatives and friends.

3.5) SAMPLE SIZE: the sample size taken for the research study is 100 (respondents)

3.6) DATA COLLECTION

Primary sources: Data collection will be done through primary sources for which two

questionnaires are prepared. One is based on the investors and the other one is based on the

financial institution/banks

The sample size for the investor’s questionnaire is 100 and for the financial institution/bank it is

3.

The banks that are taken for the study are HSBC, HDFC, and ICICI. The major reason for

preparing the questionnaire for the investors is to know about the various services provided by

the various banks and secondly to know about the satisfaction level of the clients with their

existing bank.

While on the other hand the reason for preparing the questionnaire for the financial

institution/bank is to know about their services, returns provided, and other added facilities.

38

The respondent for the investor’s questionnaire would be the existing clients of the various

banks who are availing the service of wealth management. These clients would be the walk in

customers. While for the institution the respondent would be the relationship managers or the

officials who are taking care of the wealth management services in the bank.

Secondary sources: the data is also collected from the secondary sources which comprises of

broachers, web sites of the companies, published and unpublished data.

3.7) DATA ANALYSIS AND INTERPRETATION

Analysis of the questionnaire would be done with the help of statistical tools like bar

diagrams, Pie charts, line graphs etc.

HYPOTHESIS TESTING: it is a proposition formulated for empirical testing; a

tentative descriptive statement that describes the relationship between two or more

variables.

In the hypothesis testing, we use two kinds of hypothesis first the null hypothesis and the other

one is the alternative hypothesis.

NULL HYPOTHESIS (Ho): it is the statement that that says that there exists no difference

between the parameter (a measure taken by a census of the population and prior measurement of

a sample of the population) and the statistic being compared to it (a measure from a recently

drawn sample of the population)

ALTERNATIVE HYPOTHESIS (Ha): it is the statement that says that there exists a difference

between the parameter (a measure taken by a census of the population and prior measurement of

a sample of the population) and the statistic being compared to it (a measure from a recently

drawn sample of the population). An alternative hypothesis is the logical opposite of the null

hypothesis.

Under the study the hypotheses taken are:

39

Ho: there is no significant relationship between the usage of wealth management services

rendered by the banks and the factors affecting the selection of the bank.

Ha: there is a significant relationship between usage of wealth management services

rendered by the banks and factors affecting the selection of the bank

3.7.1PHASE I

DATA ANALYSIS AND INTERPRETATION

INVESTORS

1) THE MOST PREFERRED TYPE OF BANK

TYPES OF BANK

Number of responses

GOVERNMENT 32MNC 28PRIVATE 36CO-OPERATIVE 4

THE MOST PREFERRED TYPE OF BANK

40

INTERPRETATION:

Respondents: 100

Out of the responses given by the respondents it can be interpreted that the people of Jaipur

prefer the private banks more with highest number of response of 36 followed by the

government banks with 32 responses and then they prefer MNC bank with the response of 28.

The least preferred type of bank according to the survey done is the cooperative banks with only

4 responses.

41

2) FACTORS INFLUENCING THE DECISION MAKING OF THE PEOPLE FOR SELECTING THE BANK

Rank 1 RANK 2 RANK 3 RANK 4 RANK 5FACTORS

NOS.OF BRANCHES 31 15 15 9 10CUSTOMER FRIENDLINESS/HOSPITALITY 50 24 7 2 3PROCESSING TIME 36 27 11 4 4BRANCH LOCATION 50 18 9 5 4SECURITY OF DOCUMENTS 20 21 19 7 11LOYALTY REWARDS 14 18 10 17 17ADVISORY SERVICES 22 23 12 9 12BRAND IMAGE 36 24 13 6 3

FACTORS INFLUENCING THE DECISION MAKING OF THE PEOPLE FOR SELECTING THE BANK

42

INTERPRETATION:

Respondents: 100

Out of the responses given by the respondents the factors that influence the

customer most for selecting a bank is the customer friendliness and hospitality

and the branch location these two factors takes the highest place with the highest

number of responses of 50 which is equivalent to 50% of the responses.

The second factor that influence a customer while selecting a bank are the brand

image and the processing time these two factors cater to around 36% of the

preference by the people.

The third factor that influences the customer for selecting a bank is the number of

branch. Out of the responses of 100 respondents 30 respondent say they consider

the number of branches of the bank for selecting the bank which is around30%.

Some of the respondents also consider the advisory services provided by the bank

while selecting the bank.

3) NOS OF PEOPLE AVAILING WEALTH MANAGEMENT SERVICES

RESPONSE NOS.OF RESPONSES

YES 46NO 54TOTAL 100

NOS OF PEOPLE AVAILING WEALTH MANAGEMENT SERVICES

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INTERPRETATION:

Looking at the pie chart above it can be interpreted that in Jaipur only few people avail the

wealth management services around out of the 100 respondents 54% people do not avail the

wealth management services and only 46% people avail these services. In Jaipur most of the

people get their investments done either by the brokers or they get their tax planning and wealth

management by their charted accountants. So By looking at the composition we can interpret

that there is a lot of market that is still untapped.

4) AWARENESS OF RESPONDENTS TOWARDS THE INVESTMENT AVENUE

RESPONSESNOS. OF RESPONSES

YES 77NO 14

SOME WHAT 9

TOTAL 100

AWARENESS OF RESPONDENTS TOWARDS THE INVESTMENT AVENUE

44

INTERPRETATION:

Respondents 100

Looking at the graph it can be interpreted that people are aware about the avenues in

which they can invest their wealth. Out of the 100 respondents around 77% people are

aware about the avenues in which they can invest their money, around 14% people are

not aware of theses avenues and only 9% are somewhat aware of these avenue i.e. they

have less knowledge regarding the investment avenues available in market.

5) THE MOST PREFERED BANK FOR AVAILING WEALTH MANAGEMENT SERVICES

BANKS NOS.OF RESPONSES

HSBC 22HDFC 12ICICI 8OTHERS 4TOTAL 46

45

THE MOST PREFERED BANK FOR AVAILING WEALTH MANAGEMENT SERVICES

INTERPRETATION:

Respondents 100

Out of the 100 respondents only 46 people avail the wealth management service which is

only 46% of the total responses. In the wealth management services HSBC has an edge

over other banks, in a response of 46 people around 47.82% avail the wealth management

services from HSBC bank. The second bank from which the people of Jaipur avail these

services is HDFC, with 26.08% responses while ICICI who is a close competitor of

HSBC and HDFC cater to around 17.39% of the people. The other bank in this study

were the public sector bank like IDBI, PNB etc among the category of other there are few

MNC banks as well which are CITI bank , and Standard Charted bank.

6) PERSONALIZED FINANCIAL REVIEW SERVICE

RESPONSES NOS.OF RESPONSESYES 58NO 16CAN'T SAY 10TOTAL 84

46

INTEPRETION:

Respondends 100

Out of the responses of 84 people 69.04 % people say that there bank provides the service of

personalized financial review which is basically customer profilling regarding his objectives, risk

appetitate and his expectitation from the investments to be done etc.this services are genarally

provided by HSBC, HDFC, ICICI and other MNC banks who are providing the wealth

management services. The people who say that there bank do not provide this service are around

19.05% these people are the people who are availng the wealth management services from the

public bank and co-oprative bank such as IDBI,PNB,etc. while among these respondents there

are 11.09% who say that they are not aware of this services.

7) TAX PLANNING SERVICES

RESPONSES NOS OF RESPONSES

YES 60

NO 17

CAN’T SAY 7

47

TOTAL 84

TAX PLANNING SERVICES

INTEREPRETATION:

Respondents 100

Among the respondents of 84 there are around 71.428% who say that there bank provides them

the services of tax planning in which they provide them the information on the avenues which

are tax exempted or who have the tax rebate on them. In the second category in which the people

say that there bank do not provide this service are only 20.238% these people are the people who

are availing wealth management services from the public bank. And around 8.33%of the people

are not aware of this service.

8) SERVICES BEYOND THE BANKING SERVICES

RESPONSES NO OF RESPONSES

YES 61

NO 26

TOTAL 87

SERVICES BEYOND THE BANKING SERVICES

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Interpretation:

Respondents 100

Among the 100 respondents only 87 people responded. Among these 87 respondents 70.11%

people say that yes there bank provides them the services beyond the banking services which

compromises of the meeting, functions, get together of the clients etc. while only 29.88% people

said that there bank do not provide them with this service.

9) INVESTMENT AVENUES IN WHICH PEOPLE ARE INTRESTED AVENUES

RESPONSES

MUTUAL FUNDS 47

REAL ESTATE38

ART FUND2

GOLD FUND 10FIXED DEPOSITS

40

49

STRUCTURED PRODUCTS13

ELSS 11ULIP 18PMS 2ARBITRAGE PRODUCTS 0

INVESTMENT AVENUES IN WHICH PEOPLE ARE INTRESTED

Interpretation:

Respondents 100

Among the respondents of 100 most of the people are interested in mutual funds they have the

highest frequency which is 47. The reason for this giving the preference to this avenue is because

it has liquidity, good returns and less risk attached to it. The second product in which people are

interested is the fixed deposits the people who prefer this avenue are around 40 the reason for

investment in this revenue is to keep the principal amount safe as well as getting a decent

returns. The third product in which people are interested is real estate product like land and

building etc.

While about the interest of the people in the other products they consider ULIP as a good

product because of two things attached with it i.e. the insurance cover and the investment in the

equity market, it is also among the interested product because of its feature of tax redemption.

The people who are interested in ULIP are around 18 out of the sample size of 100. So by

looking at the scenario we can say that the banking sector has a great opportunity as the

50

preference of the people is in the products that are dealt by the bank, that are mutual funds,

ULIP, FD’S and also ELSS.

10) ASSOCIATION WITH THE BANK

YEARS NOS OF RESPONSES

1-5YEARS 395-10YEARS 47

51

10-15YEARS 12TOTAL 98

11) BANK CATERING TO ALL THE BANKING SERVICES

RESPONSES NO. OF RESPONSESYES 88NO 4

52

Total 92

BANK CATERING TO ALL THE BANKING SERVICES

INTREPRETATION: looking at the graph above it can be interpreted that most of the bank cater

to all the services. Among the 4 respondents who said no are the clients of HSBC, who say that

there bank do not provide them with the Demat services.

12) KNOWLEDGE REGARDING WEALTH MANAGEMENT

RESPONSESNOS OF RESPONSES

YES 80

53

NO 16TOTAL 96

KNOWLEDGE REGARDING WEALTH MANAGEMENT

INTERPRATATION: As can be interpreted that 83.33%have the knowledge regarding the

wealth management and rest 16.66% do not know anything about the wealth management. These

are the responses given by 98 respondents.

13) KNOWLEDGE REGARDING WEALTH MANAGEMENT SERVICES

RESPONSESNOS.OF RESPONSES

EXCELLENT 4VERY GOOD 18

54

GOOD 39AVERAGE 27BAD 10TOTAL 98

KNOWLEDGE REGARDING WEALTH MANAGEMENT SERVICES

14) KNOWLEDGE REGARDING THE STOCK MARKET

RESPONSESNOS. OF RESPONSES

EXCELLENT 5VERY GOOD 15GOOD 30

55

AVERAGE 39BAD 11TOTAL 100

KNOWLEDGE REGARDING THE STOCK MARKET

INTERPRETATION: as can be observed that most of the people have average

knowledge in the field of stock market, so it show the opportunity for the bank to cater to

the people for the investments in the equity linked products like mutual funds etc

15) SERVICE SATISFACTION

RESPONSESNOS OF RESPONSES

YES 83

NO 5TOTAL 88

56

SERVICE SATISFACTION

16) LEVEL OF DISSATISFACTION

CLASS INTERVALNOS. OF RESPONSES

0-25% 125-30% 450-75%

57

75-100%TOTAL 5

LEVEL OF DISSATISFACTION

INTERPRETATION: looking at the graph above it can be interpreted that among the 100

respondents only 5 respondents are not satisfied from the services. Among them 3 people

are not satisfied by the services provided by HDFC and 1 by ICICI to the extent of 25-

30% .

17) PRICE AT WHICH WEALTH MANAGEMENT SERVICES ARE PROVIDED

AMOUNTNOS OF RESPONSES

500000AND ABOVE 18400000-300000 8

58

300000-200000 4200000-100000 10100000-50000 9TOTAL 49

PRICE AT WHICH WEALTH MANAGEMENT SERVICES ARE PROVIDED

INTERPRETATION: most of the banks provides the wealth management services at a

price above Rs 500000, but these services depends upon the type of account offered.

There are different services attached to different types of account like in HSBC there are

two kinds of account in which wealth management services are provide they are power

vantage account and premier account the difference in the account is on the basis of the

amount attached to it and the services.

18) EXTENT OF INVESTMENTS DONE IN THE CURRENT INVESTMENT PORTFOLIO BY THE RESPONDENTS

AVENUES 0-20% 20-40% 40-60% 60-80% 80-100%MUTUAL FUNDS 15 23 23 15STRUCTURED PRODUCTS 10 15 4 3REAL ESTATE 9 20 22 10 2

59

ELSS 7 2 1ULIP 17 22 5 2 1PMS 6 1 2 2GOLD FUND 13 11 2 1 1FIXED DEPOSIT 13 17 11 4ARBITRAGE PRODUCT 7 1 1NFO 3 2 3IPO 5 4 4 3

EXTENT OF INVESTMENTS DONE IN THE CURRENT INVESTMENT PORTFOLIO BY

THE RESPONDENTS

INTERPRETATION: looking at the graph it can be interpreted that around 40-60% of the

investment of the people goes into the mutual funds followed by real estate. Around 20-40% of

the investments of the people go into ULIP which is basically done for the tax saving purpose,

followed by fixed deposits

DATA ANALYSIS AND INTERPRETATION

INSTITUTION

1) PRICE AT WHICH WEALTH MANAGEMENT SERVICES PROVIDED

CLASS INTERVAL (RS) HSBC HDFC ICICI

60

1000000 AND ABOVE 1600000-900000300000-600000 1100000-300000 1

PRICE AT WHICH WEALTH MANAGEMENT SERVICES PROVIDED

INTERPRETATION:

It can be observeved from the graph above that the price at which ICICI provides its wealth

management services is very high as compared to HSBC who are providing these services at a

price of only Rs500000, in this category HDFC is providing the services at a lesser amount.

2) SERVICES PROVIDED IN WEALTH MANAGEMENT

SERVICES PROVIDED HSBC HDFC ICICITAX PLANNING 1 1 1OLD AGE PLANNING 1 1 1MARRIAGE PLANNINGHIGHER STUDY PLANNING 1 1

61

INVESTMENT PLANNING 1 1 1

SERVICES PROVIDED UNDER WEALTH MANAGEMENT SERVICES

INTERPRETATION:

Under the services provided in wealth management service ICICI provides the maximum

number of services followed by HDFC and then by HSBC.

3) NON BANKING SERVICES

SERVICES HSBC HDFC ICICI

INTERNET BANKING 1 1 1

PHONE BANKING 1 1 1CHEQUES PICK AND DROP FACILITY 1 1

62

FREE DEMAND DRAFT FACILITY 1 1PAYABLE AT PAR CHEQUE BOOK 1 1 1CASH BACK FACILITY 1 1

NON BANKING SERVICES

INTERPRETATION:

It can be observed from the above graph that in the non banking services, HSBC has an edge

over other banks as they provide the maximum number of services, followed by HDFC and then

ICICI. Currently ICICI has just started the cheque pick and drop facility.

4) INVESTMENT AVENUES AVAILABLE

AVENUES HSBC HDFC ICICIMUTUAL FUNDS 1 1 1ELSS 1 1

63

ART FUND 1 1GOLD FUND 1 1FIXED DEPOSIT 1 1 1NFO'S 1 1 1STRUCTURED PRODUCTS (EQUITY LINKED 1 1ULIP 1 1 1ARBITRAGE PRODUCTS 1 1

INVESTMENT AVENUES AVAILABLE

INTERPRETATION:

By looking at the graph above it can be interpreted that the prodcut range that

is provided by ICICI is the maximum followed by HDFC.In this HSBC

provides little avenues which leads to lesser investment options and

disatisfaction among the customers.

5) ACCOUNT OPENING CHEQUE REQUIREMENT

AOC (RS) HSBC HDFC ICICI400000 AND ABOVE 1

64

400000-300000300000-200000200000-100000 1 1

ACCOUNT OPENING CHEQUE REQUIREMENT

65

6) SERVICE BEYOND THE BANKING SERVICES PROVIDED BY DIFFERENT BANKS

SERVICESHSBC

HDFC

ICICI

TRAVEL HELP 1 1 1

HOTEL INFORMATION 1 0 1SHOPPING INFORMATION 1 0 1ORGANIZING GET TOGETHER FOR THE CLIENTS 1 0 1

SERVICES PROVIDE BEYOND THE BAKING SERVICES

INTERPRETATION:

It can be very well interpreted that HSBC has a more personalized services as

compared to other bank, as they provide there client much better services as

far as services concerned beyond the banking services.

66

PHASE II

3.7.2) COMPARISON OF THE SERVICES OF VARIOUS BANKS

SERVICES

BANK

HSBC HDFC ICICI

PRIVATE

BANKING

PREMIER/POWERVANTAGE PREFFERED

BANKING

PRIVATE

BANKING

INTERNATIONAL

SERVICES

INVESTMENT IN

MUTUAL FUNDS

INSURANCE AND

EQUITY

TAX SAVERS

FUNDS

ASSEST

MANAGEMENT

SERVICES

ADVISIORY

SERVICES

SYSTEMATIC

INVESTMENT

PLANNING

×

FOREGIN

67

EXCHANGE

SERVICES

PRESONALIZED

FINANCIAL

REVIEW

24*7 BANKING

SERVICE

PRINCIPAL

SAFETY

× × ×

NO BOUNCE

CHEQUE

PROTECTION

SERVICE

× ×

LOAN AGAINST

SECURITIES

(INVESTMENTS)

×

INTERNET

BANKING

HOME BANKING

PHONE BANKING

LOCKER

FACILITY

50%

DISCOUNT

ANTI MONEY

68

LAUNDERING

PRODUCT RANGE× × ×

DEDICATED TOLL

FREE NO.

× ×

RELATIONSHIP

MANAGER

SPECIAL E-MAIL

ID FOR WEALTH

MANAGEMENT

CUSTOMER

× × ×

DEBIT CARD

PREFRIANCIAL

RATE ON LOANS

×

AT PAR CHEQUE

BOOK

FREE LOUNGES × ×

EMERGENCY

ENCASHMENT

SERVICE

× ×

FREE EXCHANGE

OF FOREIGN

CURRENCY

× ×

69

EMERGENCY

MESSAGING AND

INTERPRETATION

SERVICE

× ×

FREE

TRANCATIONS AT

ALL THE ATMs

× ×

SAFTEY DEVICE

FOR E-SHOPPING

× ×

70

PHASE III

3.8) HYPOTHESIS TESTING

Ho: there is no significant relationship between availing wealth management services

rendered by the bank and the factors affecting the selection of the bank.

Ha: there is a significant relationship between availing wealth management services

rendered by the banks and factors affecting the selection of the bank

Chi- square test: for finding out the hypothesis, chi square test is being used

Degree of freedom =(r-1)*(c-1)

(Number of row-1)*(Number of columns-1)

(5-1)*(5-1)

(4)*(4)

So, D.F. =16

Confidence level =.95

Value=7.962

R = rows

C =columns

Fo =observed frequency

Fe = expected frequency

71

CONFIDENCE LEVEL

TABLE1

RANKS CUSTOMER

FRIENDLINESS

PROCESSING

TIME

SECURITY OF

DOCUMENTS

ADVISORY

SERVICES

BRAND

IMAGE

RANK1 23 16 13 19 23

RANK2 14 15 10 11 9

RANK3 2 7 8 6 7

RANK4 1 1 6 2 1

RANK5 2 4 5 4 2

Table 2

R C Fo Fe=Rt*Ct/n

Fo-Fe

(Fo-Fe)2 (Fo-Fe)2/Fe

1 1 23 18.71 4.29 18.4041 0.983651 2 16 19.15 3.15 9.9225 0.518141 3 13 18.71 5.71 32.6041 1.74261 4 19 18.71 0.3 .09 0.004811 5 23 18.71 4.29 18.4041 0.983652 1 14 11.744 2.256 5.089536 0.433372 2 15 12.023 2.977 8.862529 0.737132 3 10 11.744 1.744 3.041536 0.258982 4 11 11.744 -0.744 .553536 0.0471332 5 9 11.744 2.744 7.529536 0.6411383 1 2 5.971 -3.971 15.768841 2.64093 2 7 6.11 0.89 .7921 0.129633 3 8 5.971 2.029 4.116841 0.6894723 4 6 5.971 0.029 .000841 0.0001413 5 7 5.971 1.029 1.058841 0.177334 1 1 2.1895 -1.1895 1.41491025 0.646224 2 1 2.241 -1.241 1.540081 0.687224 3 6 2.1895 3.8105 14.52991025 6.63164 4 2 2.1895 0.1895 .03591025 0.0164014 5 1 2.1895 -1.1895 1.41491025 0.646225 1 2 3.383 1.912689 1.912689 1.76875 2 4 3.464 0.287296 .287296 0.0829375 3 5 3.383 2.614689 2.614689 0.77289

.3806895 4 4 3.383 0.380689 0.112535 5 2 3.383 1.912689 1.912689 0.565382 TOTAL 210.978 34.21105 21.91817

Tabulated value: 7.962

72

Calculated value: 21.91817

INTERPRETATION: since the calculated value is more than the tabulated value, the null (Ho)

hypothesis which was taken is rejected, whereas the alternate hypothesis (Ha) is accepted which

means that there is a significant relationship between availing the wealth management services

rendered by the bank and the factors influencing the decision making of the people while

selecting the bank. The respondents taken for the hypothesis testing are 42 because these are the

respondents who are availing wealth management services.

3.9) SWOT ANALYSIS

STRENGTHS

1. Credible and widely known brand name with the label of being world class and tag line

THE WORLD’S LOCAL BANK which describes it as having the local taste with

maintaining its originality as well as a client of HSBC is treated same everywhere as he is

treated at his branch i.e. Every branch is a home branch.

2. The bank does the customer profiling i.e. PFR (Personal Financial Review) through which

the financial planner can understand the investment pattern of the investor as well as his

risk appetite and his expectations from the investment as well as from the bank. This

practice adopted by the bank is a highly appreciable.

73

3. Support of HSBC’S AMC and the central research team headed in Mumbai who keep the

track of the market and guide the team in the bank for the investments is the major

strength for the bank. Diversification in the work leads to better operations and as well as

it leads to better efficiency and customer satisfaction.

4. HSBC has a brand in the market of being the best bank in providing services. This

statement can be sufficed by looking at the past records and also recently HSBC was

ranked as no.1 international bank as surveyed by KPMG.

5. HSBC has same global standard of services in all the branches.

6. Stability to successfully implement custom electronic banking application. Hexagon is the

foundation of HSBC’S strategy to deliver innovative services via information technology.

7. Great services provided to NRI’s not only in India but world over, hence it enjoys a good

reputation as well as good share of NRI business.

8. Automated operations due to highly computerized environment.

9. Superior technological support.

10. Home banking services in which customer does not have approach the bank. The financial

planner themselves have to reach to the customer.

11. The ethical conduct and infrastructure of HSBC attract the customer the most especially

the hospitality that is rendered to the customers.

12. Usage of any Visa ATM of any bank free of cost is also one of the strength for the bank

which makes the banking fast and convenient for the customer.

13. HSBC also has an upper edge in providing the services beyond the banking services in

which other banks are lacking this may be due to the niche market in which they are

dealing.

Weakness

1. There are only two branches in the whole region of Rajasthan, which makes it

unapproachable for the customers as well as a hurdle for the bank to find new prospect

customers.

2. Average quarterly balance requirement is higher as compared from the other banks.

3. The processing time taken is also long which leads to customer dissatisfaction.

74

Opportunities

1. Jaipur is in its developing phase so there is a lot of potential available in the market

2. In Jaipur the number of wealth management services that are availed by the people is also

very less which is again a great opportunity for the bank to cater to. This is because of

lack of knowledge or awareness among the people about the investment avenues.

3. As mentioned or stated in several report and newspapers that from 2009 there would a

revolution in the banking sector which would lead to reduction in the numbers of banks

so there is an opportunity for HSBC to use its brand name as well as its strong position to

acquire other banks.

4. Looking at the current scenario most of the people are interested in the products which

are equity linked, this shows an opportunity for the bank to cater to as they are dealing un

these products.

Threats

1. There’s a myth that is there in the minds of the people in Jaipur regarding the foreign

bank i.e. MNC bank are not trustworthy and hence, they do not go for the banking

operations.

2. Competition with the private sector banks such as ICICI, HDFC, CITI and other banks

who are on a verge of starting the wealth management services such as AXIS bank, SBI

and many other banks is the greatest threat for the bank. For which the bank has to use

aggressive marketing strategies to attract more and more customers.

3. HSBC bank is also not very popular among the people of Jaipur.

4. The major drawback of HSBC is that it has to undergo a lot of rules and regulations of

RBI which makes its operations as well as its efficiency lower. This is not only the case

with HSBC but also with other MNC banks. So this leads to higher competition given by

the private banks.

3.10) SUGGESTIONS

1. As some banks are providing the facility of safety of principal amount similarly to cater

to a large numbers of customers and earning their trust HSBC can also adopt this

strategy. Currently this service is provided by standard charted only.

75

2. HDFC and ICICI and many other banks are providing their wealth management clients

with the benefit of discounted rates on various types of personal loans which could be

again a good strategy for HSBC to compete with the players in the market.

3. Increasing the number of branches in Rajasthan.

4. The investment avenues or the product range should be increased because currently

HSBC is only providing its clients with mutual funds, Insurance, SIP and some of the

equity linked funds which are less as compared with the product range of other banks like

ICICI who has a better product range in which they also include gold funds etc.

5. HSBC should provide its client with the Demat service.

6. Special e- mail id for the clients availing wealth management services.

4) REFERENCES:

www.hsbc.co.in

www.moneycontrol.com

www.hdfc.co.in

www.google.co.in

www.icicidirect.com

www.wikipedia.com

www.invetopedia.com

www.economictimes.indiatimes.com

76

www.icici.co.in

www.about.com

(http://economictimes.indiatimes.com/Corporate_Announcement/

Neelesh_Heredia_appointed_as_Deputy_CEO_HSBC_India/articleshow/2774153.cms)

http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10581&id=2206

Broachers of HSBC and other banks

BIBLIOGRAPHYDonald R Cooper and Pamela S Schindler, Business research methods 9 th edition, TATA

MCGRAW-HILL publishing company page nos.138, 143,403,494, 423,

ICFAI UNIVERSITY, Financial Management October, 2005 edition, page nos.89 and 91

Richard I. Levin. David S. Rubin, Statistics for Management 7 th edition, Prentice-hall of India

Private limited, page nos. 567,568,569,584.

5) ANNEXURE

5.1) QUESTIONNAIREInvestor

We the students of IBS are here to study and compare the wealth management services provided by various banks in Jaipur. The information given here will not be dispersed or used other than academic purpose.

NAME: __________________ AGE: ______________________OCCUPATION: ___________ GENDER: __________________

77

CONTACT NO: ________________ EMAIL ID: ___________________ADDRESS/ PLACE: _________________

1) Please mention your existing bank:________________

2) Which bank do you prefer most?

Government (SBI, SBBJ, PNB)

MNC (HSBC, Citigroup, Standard charted)

Private ltd (HDFC, ICICI)

Co-operative bank

3) Mention the banks from which you avail the following services?

Savings a/c: _________, ____________, ___________ Current a/c: _________, ____________, ___________

Fixed deposit: _________, ____________, ___________

Credit cards _________, ____________, ___________

Demat: _________, ____________, ___________

Loans: _________, ____________, ___________

4) For how long you are associated with your bank

1-5years 5-10years

78

10-15year

5) Rate the following factors which influenced you while selecting the bank (1 being the highest and 5 being the lowest)?

1 2 3 4 5Number of branches …………………………………………

Customer friendliness/hospitality……………………………

Processing time………………………………………………

Branch location………………………………………………

Security of documents………………………………………

Loyalty rewards………………………………………………

Advisory services…………………………………………….

Brand image………………………………………

6) Does your bank cater to all banking services you need?

Yes

No

If no then please mention____________________

7) Do you know something thing about the wealth management?

Yes

79

No

8) How would you rate your knowledge regarding the wealth management services?

Excellent

Very good

Good

Average

Bad

9) Factors influencing your Investment decisions?

0-20% 20-40% 40-60% 60-80% 80-100% Self decision

Financial advice

Friends/peer groups

Banks

10) How would you rate your knowledge about the stock market (rate on the scale of 1-5 where1being excellent and 5 being the poor)?

1-(Excellent)

2- (Very good)

3-(Good)

4- (Average)

5-(Bad)

80

11) Do you avail the wealth management services provided by the banks?

Yes

No

12) If yes, from which bank is you are availing these services? (Please mention)

Government (SBI, SBBJ, PNB) …………………………..

MNC (HSBC, Citigroup, Standard charted) …………………………..

Private ltd (HDFC, ICICI) ………………………….. Co-operative bank ……………………………

13) Are you satisfied with the services provided by your bank?

Yes No

14) If no, to what extend you are dissatisfied with the services?

0-25%

25-50%

50-75%

75-100%

15) At what price does your bank provide the wealth management services?

81

Rs. 500000 and above

Rs.400000 -Rs.300000

Rs.300000- Rs.200000

Rs.200000- Rs.100000

Rs.100000- Rs.50000

16) Does your bank provides you with a PFR (Personalized Financial Review)

Yes

No

17) Does your bank provide the tax planning services?

Yes

No

18) Does your bank provide you with the services beyond the banking services?

Yes

No

19) Are you aware of the avenues in which you can invest your money?

Yes

No

20) Does your bank provide you with the following services? (Please tick)

Internet Banking

Phone Banking

82

24*7 Banking

Cheques pick and drop facility

Free demand draft facility

Payable at par cheque book

21) Please tick the following products you invest in and in which proportion?

0-20% 20-40% 40-60% 60-80% 80-100%

Mutual funds

Structured products (equity linked)

Real estate products

ELSS

Art funds

ULIPs

PMS

Gold funds

Fixed deposits

Arbitrage products

83

NFOs

IPO

22) Among the following in which other product you are interested in?

Mutual funds structured products (equity linked)

Real estate products ELSS

Art funds ULIPs

Gold funds PMSFixed deposits Arbitrage products

NFOs IPO

QUESTIONNAIREInstitutionWe the students of IBS are here to study and compare the wealth management services provided by various banks in Jaipur. The information given here will not be dispersed or used other than academic purpose.

NAME: ……………………………….. EMAIL ID: …………………………………DESIGNATION: …………………….. BANK/INSTITUTION: …………………....

84

CONTACT NO: …………………………… ADDRESS: …………...................................

1) Does your bank provide the wealth management services?

YES

NO

2) At what amount of deposit /investment the wealth management services are provided?

Rs 500000 and above

Rs300000 -Rs400000

Rs 200000-Rs300000

Rs100000-Rs200000

Rs50000-Rs100000

3) Does your bank provide a personalized financial review to a client?

YES NO

4) Does your bank provide a relationship manager to the client?

YES NO

5) Do you deal in all the mutual funds present in the market?

YES NO

6) Among the following which of the services are provided by your bank under the wealth management services?

85

Tax planning

Old age planning

Marriage planning

Higher Study planning

Investment Planning7) Does your bank provide the client with the following services? (Please tick)

Internet Banking

Phone Banking

24*7 Banking

Cheques pick and drop facility

Free demand draft facility

Payable at par cheque book Cash back facility

8) Does your bank provide the advisory services to a client on a regular basis?

YES

NO

9) At what time interval the advice is provided?

Every month

2-3 months

86

3-4 months

4-5 months

6 months and more

10) What is the return (interest rate) provided on the fixed deposit (as component of wealth management) by the bank? (Please mention)

For 1 year …………

2-3 year …………

3-4 Year ………….

11) What is the return (interest rate) provided on the ULIP (as component of wealth management) by the bank?

4-5%

5-6%

6-7%

7-8%

12) From the following, in which wealth management products does your bank deal?

Mutual funds structured products (equity linked)

87

ELSS PMS

Art funds ULIPs

Gold funds Arbitrage productsFixed deposits IPO

NFOs

13) What is the AOC (Account Opening cheque) requirement of the bank to operate the Wealth Management Services?

Rs. 100000and RS200000

Rs.200000-Rs.300000

Rs.300000-Rs.400000

RS400000 and above

14) What is the size of your portfolio management services (approximately in term of Rs)

15) Does your bank provide the client with the special rates on personal loans if the client is availing the wealth

Management services from the bank?

Yes

No

88

16) To what extent does these interest rate differs from the original interest rate?

0-2%

2-4%

4-8%

8-10%

17) Does your bank charges on any transaction taken place from the other bank branches (outstation branches) from the client in their wealth management services?

Yes

No

18) If yes, to which extent the client is charged?

0-1% on the transaction

1-2% on the transaction

2-3% on the transaction

3-4% on the transaction

4%and above on the transaction

89

19) Does your bank provide the client with the services beyond the banking services?

YES NO

20) Which kind of non banking services are provided by your bank?

Travel help

Hotel information

Shopping information

Organizing get together for the clients

90

91