A

SUMMER TRAINING PROJECT REPORT ON

“MARKETING OF INVESTMENTS PRODUCTS &

CONSUMER SURVEY”

JAIPUR SURYA COLLEGE OF SCIENCE AND

BUSINESS ADMINISTRATION

Submitted By:- Submitted To:

Mukesh Meena
BBA III Year

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 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

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 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
“MARKETING 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.

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 CONTENTS

ABOUT AXIS BANK

 Introduction
 Board Of Directors
 Milestones
 Why UTI 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
 History 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
 Types of Mutual Funds
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 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 the
specified undertaking of the Unit Trust of India (UTI), Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India
(GIC) and other four PSU insurance companies, i.e. National Insurance
Company 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.

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 BOARD OF DIRECTORS

The Bank has 10 members on the Board. Dr. P.J .Nayak is the Chairman
and CEO of the Bank.
The members of the Boards are:-
Dr. P.J. Nayak Chairman & CEO
Shri N.C. Singhal 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. Vaish Director
Shri M.V. Subbish Director
Shri Ramesh Ramanathan Director
Shri K.N. Prithviraj Director

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 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 Edmond
de 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 ‘Spice Rewards’ on the
bankcards India’s first-ever merchant-
supported rewards program.
April-08 UTI Bank opens a Financial services Branch
in 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 provide
finance for Infrastructural Projects in the
country.
Mar-08 UTI bank launches car loans in association
with Maruti Udhyog Ltd.
Feb-08 UTI Bank announces the launch of its Meal
Card.
Feb-08 LIC premium payment now through UTI
Bank Branches.
Jan-08 UTI Banks opens Priority Banking branch in
Mumbai and Kolkata.

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 Why UTI Bank converted into AXIS Bank?

The erstwhile UTI bank has changed its name to Axis bank effective
July 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 brand
only 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 market
capitalization 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 would
also have to educate about its shareholding to further expand itself into
the retail business.

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 PERFORMANCE HIGHLIGHTS

Net Profit 89%

Net Interest Income 93%
Fee Income 80%
Operating Revenue 82%
Net Interest Margin3.35%
Cost of Funds 6.11%
The growth in net profit was recorded after making a provision of Rs.
225.20 crores on the Depriciation of the Bank’s investment portfolio, on
account of weakening financial markets.

INTERPRETATION OF PERFORMANCE

Rapid growth in the Bank’s core Business.

 Total Net Advances grow 48% to Rs. 61,160 crores.
 Total Investment grow 34% to Rs. 35,718 crores.
 Total Asset register a44% growth, rising to rs. 113,660 crores.
 Fees grow by 80%, rising to 484 crores.
 Share of demand deposits in total deposits at 40%.
 Retail Assets grow by 52% to Rs. 14,638 crores; constitute 24% of
total Advances, as against 23% a year ago.
 Net NPA as 0.47%, compared to 0.59% as at end June,07.
 Book value per share at Rs. 254.42, compared to Rs. 127.02 as at
end June,07.
 Capital Adequacy at 13.25% as against 11.50% a year ago.
 Adequately capitalized: Tier I at 9.93%.
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 DIFFEENT INVESTMENT AVENUES

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

are rethinking their investment strategy. Interest rates are increasing and
they 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 Saving
Scheme (ELSS).
Apart from providing decent and stable returns these savings options
also help you plan save on your tax liabilities. However, the aggregate of
deductions under 80C and 80CCC cannot exceed Rs 100,000.
Let’s have a look at these avenues, their pros and cons, and what kind of
risk-free returns can you get from them.

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 Employee’s Provident Fund (EPF)

This is one of the very safe investment avenues. The current interest rate
of EPF is 8.5% per annum. However, this rate is not fixed and the
government can modify the same from time to time. The best part of
EPF is that the interest earned is exempt from tax under section 10(12)
of the income tax act. The taxman gets nothing.
Investment in EPF can be made by way of a monthly contribution from
your salary. The amount contributed is 12% of the total of your basic
salary and dearness allowance.
You will be exempt from tax if withdrawals are done after a continuous
contribution for 5 year or more, through one or more employers.
However if you withdraw money before five years the entire interest
portion and the employer’s contribution are taxable in the year of
withdrawal. Portion of withdrawal which pertains to employee’s own
contribution is not taxable.
One of problem with EPF investment is that you cannot make lump sum
investment into the same. The other problem is that at the time of
withdrawal it often takes more than a few months to receive the money
from the PF trust.

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 Public Provident Fund (PPF)

PPF is considered yet another safe investment avenue. The current

interest rate on PPF is 8% per annum. Again like EPF the rate of interest
is not fixed. The government modifies the same from time to time.

The best part of PPF is that interest thereon is exempt from tax under
section 10(11) of the Income tax Act. Tax drduction can be claimed on
contribution made by an individual into his own PPF account or into the
PPF account of his spouse 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 from the 7 year.
The minimum investment amount is Rs 500 per financial year and the
maximum is Rs 70,000 per financial year. The amount of flexibility in
planning your investments.

Many of you not like invest in PPF due to its very long tenure (15
years). However, you may open an account and contribute only small
sums initially; after all minimum annual contribute is just Rs. 500. In
later year, contribute can be increase.

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 Life Insurance Policy (including ULIP & pension plan)

There are a variety of insurance products available. The traditional plans

such as money back, cash back, endowment, whole life, children plans
are considered relatively safe. However, the returns thereon vary
between 4% per annum to 6 % per annum. For most of these plans
premium has to be paid monthly, quarterly, semi-annually or annually
during the term of the policy.

The risk categorization of ULIPs depends on the type of fund you opt
for. The fund that invests its corpus its corpus mainly in equity (stocks)
is considered riskier while the one investing chiefly in bonds/debentures
(government debt akin to banks’ fixed deposits) is considered relatively
safer.

The riskier funds offer potential for high returns while safe funds offer
moderate returns.

Tax deduction can be claimed on the premium paid in respect of life

insurance policy of self, spouse or children.

If the annual life insurance premium were more then 20% of the sum
assured then the deduction would be restricted to 20% of the sum
assured. For example, if the sum assured is Rs 1,00,000 then only Rs
20,000 will be available for tax deduction.

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 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 years
assuming an interest rate of 8.16% per annum.

One major drawback of NSC is that interest is taxable. If you are in the
highest 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 in
the year in which the NSC matures.

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 Bank Fixed Deposits (FDs)

This is considered as a safe investment avenue. Certain 5 year FDs with

scheduled Banks.

(Scheduled banks are those that are listed in the 2 schedule to the RBI
act. Most well known banks are scheduled banks) qualify for tax
deduction. The interest rate is fixed in a sense that subsequent changes to
the interest rates do not affect you.

One major drawback of FDs is that interest is taxable. If you are in the
highest tax bracket, the return for you can be as 5% per annum.

Equity linked Savings Scheme (ELSS)

There are also known as tax saving mutual funds. Since ELSSs invest
their corpus mainly in stock markets, these investments are considered
relatively risky however they office potential for high returns.

In fact, thanks to a booming Indian economy, some of the ELSSs have

given over 50% annual compounded returns over the last 3 or even 5
years. In our view, for the new investors the realistic expectations
should, however, be around 15% per annum.
.

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Investment in ELSS has a lock-in period of 3 years. After 3
Years, you can in cash the investment at any time you want.
The returns from ELSSs are in the form of dividends and /or
Capitals gains and are exempt from tax.

Now here are a few options that may not help you get tangible
Returns but can surely help you in claiming tax deductions,
and of course, some intangible ones.

Repayment of home loan

Repayment of loan taken from certain agencies such as banks, home

finance companies, etc. for purchase or construction of residential house
or property is allowed as deduction.

Tax deduction can also be claimed on prepayments and payments.

Foreclosure is premature repayments of entire outstanding loan.
Suppose you get a one-time bonus or an ESOP payment of Rs 3, 00,000
and your outstanding home loan is Rs 2, 50,000. And you still have two
years to repay your loan.

Deduction under section 80C is not available in respect of repayment of

refinanced home loan.

However, if you repay this loan before that than it is a foreclosures

payment or you have foreclosed your housing loan.

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 Mutual fund

Mutual fund is a mechanism for pooling resources by issuing units to be

investor and investing fund in securities in accordance with the
objectives as disclosed in the offer document.

Investments in securities are spread across a wide cross-section of

industries and sectors and thus the risk is reduced. Diversification
reduces the risk because all stocks may not move in the same direction
in the same proportion at the some time.

Mutual fund issues units to the investor in accordance with quantum of

money invested by them. Investors of mutual funds are known as unit’s
holders.

The investor in proportion to their investment shares the profit or losses.

The mutual funds normally come out with a number of schemes with
different investment objectives, which are launched from time to time.

A mutual fund is required to be registered with the securities and

Exchange Board of India (SEBI), which regulates securities market
before it can collect funds from the public.

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What is the history of mutual fund in India and role of SEBI
in mutual funds industry?

Unit trust of India was the first set up in India in 1936. In the early
1990s, the government allowed public sector banks and institutions to
set up mutual funds.

In 1992, the securities and exchange Board of india (SEBI) Act was
passed. The objectives of SEBI are –to protect the interest of investors in
securities and to promote the development of and to regulate the
securities market.

As far as mutual funds are concerned, SEBI formulates policies and

regulates the mutual funds to protect the interest of the investors.

SEBI has also issued guidelines to the mutual funds from time to time to
protect the interests of investors.

There is no distinction in regulatory for these mutual funds and all are
subject to monitoring and inspections by SEBI. The risks associated with
the schemes launched by mutual funds sponsored by these entities are of
similar type.

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 How is a mutual funds set up?

A mutual fund is set up in the form of a trust, which has sponsor,

trustees, asset management Company and custodian. The trust is
established by a sponsor or more than one sponsor who is like promoter
of a company. The trustees of the mutual fund hold its property for the
benefits of the units holders.AMS approved by SEBI manages the funds
by making investment in various types of securities. SEBI holds the
securities of various schemes of the fund in its custody.

The trustees are vested with the general power of superintendence and
direction over AMC. They monitor the performance and compliance of
SEBI regulations by the mutual fund.

All mutual funds are required to be registered with SEBI before they
launch any scheme.

What is net asset value (NAV) of a scheme?

Net asset value denotes the performance of a particular scheme of a

mutual fund.

Mutual fund Invest the money collected from the investor in securities
markets. In simple terms, NAV is the market value of the securities held
by the scheme. Since market value of securities changes everyday, NAV
of a scheme also varies on a day-to-day basis. The NAV per unit is the
markets value of securities of a scheme divided by the total number of
units of the scheme on any particular date.
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 Systematic Investment Plan (SIP)

The systematic investment plan (SPI) is a simple and time-honored

investment strategy for accumulation of wealth in a disciplined manner
over long term period. The plan aims at a better future for its investors as
an SIP investor gets good rate of returns compared to a one-time
investor.
What is Systematic Investment Plan?

A specific amount should be invested for a continuous period at regular

intervals under this plan.

SIP is similar to a regular saving scheme like a recurring deposit. It is a

method of investing a fixed sum regularly in a mutual fund.

SIP allows the investor to buy units on a given date every month. The
investor decides the amount and also the mutual fund scheme.

While the investor’s investment remains the same, more number of units
can be bought in a declining market and less number of units in a rising
market.

The investor automatically participates in the market swings once the

option for SIP is made.

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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

Types 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.

Health insurance comes in three types, though many polices mix and
match traits of the three.

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Fee for service, the most expensive, allows you to go to almost any
provider and covers almost anything’s that is medically necessary. You
don’t have a primary care physician who to approve visits to specialists.
Health maintenance organizations (HMO’s) are the least costly, but the
most restrictive. They assign you (or let you select) a primary care
physician.

2. LIFE INSURANCE

For most people, the purpose of life Insurance should be to replace the
financial contribution made by a family member.
Proceeds from life insurance cover three types of expenses: replacement
of the policyholder’s income or work, estate taxes, and burial costs.
When you consider the amount of insurance to buy, consider the
following:
1. Most of the life insurance should be on a family member whose
salary is important to the family budget.
2. Consider a relatively small life insurance policy on a family on a
stay-at-home parent to cover child care and other expenses.
3. Consider reducing the amount of life insurance you have as you
build more financial assets.
4. Pass on credit life insurance and life insurance if you can. These
plans are restrictive and expensive. Buy more general life insurance
instead if you feel a need.
.

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23
Life insurance or life assurance 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 at
regular intervals or in lump sums. There may be designs in some
countries 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 of
specified event typically a lump sum payment.
3. Investment policies- where the main objective is to facilitate the
growth of capital by regular or single premiums.
.

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 Types of life insurance

Life insurance may be divided into two basic classes- temporary

and permanent or followings subclasses- term, universal, whole
life, variable, variable universal and endowment life insurance.

Temporary (Term)

Term life insurance or ‘term assurance’ provides for life

insurance coverage for a specified term of years for a specified
premium.The policy does not accumulate cash value.
The three key factors to be considered in term insurance are:
face amount (protection or death benefits), premium to be paid
(cost to the insured), and length of coverage (term).
Various (U.S) insurance companies sell term insurance with
many different combinations of these three parameters. The face
amount can remain constant or decline.
A policy holder insures his life for a specified term. If he does
before that specified term is up, his estate or named beneficiary
(ies) receives(s) a payout. If he does not die before the term is
up, he receives nothing.

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 Permanent

Permanent life insurance is life insurance that remains in force (in-line)

until the policy matures (pays) out, unless the owner fails to pay the
premium when due (the policy expires or policies lapse). The policy can
not be can canceled by the insurer for any reason except fraud in the
application, and that can cancellation must occur with in a period of time
defined by law (usually two years). Permanent insurance builds a cash
value that reduces the amount at risk to the insurance company and thus
the insurance expense over time.

The three basic types of permanent insurance are whole life, universal
life, and endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value
table included in the policy guaranteed by the company. The primary
advantages of whole life are guaranteed cash values, fixed and known
annual premiums, and mortality and expense charges will not reduce the
cash value shown in the policy. The death benefits can also be increased
through the use of policy dividends. Dividends cannot be guaranteed and
may be higher or lower than historical rates over time.

Cash value can be accessed at any time through policy “loans”. Since
these loans decrease the death benefits if not paid back, payback is
optional. Cash values are not paid to the beneficiary upon the death of
the insured; the beneficiary receives the death benefits only.

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 Universal life coverage.

Universal life insurance (UL) is a relatively new insurance product

intended to provide permanent insurance coverage with greater
flexibility in premium payment and the potential insurance for a higher
internal rate of return. A universal life policy includes a cash account.

With all life insurance, there are basically two functions that make it
work. There a mortality function and cash function. The mortality
function would be the classical notion of pooling risk where the
premiums paid by everyday else would cover the death benefits for the
one or two who will die for a given period of time.

Actuarially, it is reasoned that out of a group of 1000 people, if even 10

of them live to age 95, then the mortality function alone will not be able
to cover the cash function. So in order to cover the cash function, a
minimum rate of investment return on the premiums will be required in
the event that a policy maters.

Universal life policies guarantee, to some extent, the death proceeds, but
not the cash function – thus the flexible premiums and interest return.

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 Limited- pay

Another type of permanent insurance is limited- pay life insurance, in

which all the premiums are paid over a specified period after which no
additional premiums are due to keep the policy in force. Common
limited pay period include 10- year, 20-year, and paid at age 65.

Endowment

Endowment is policies in which the cash value built up inside the policy,
equal the death benefits (face amount) at a certain age. Endowment are
considerably more expensive (in term of annual premium) then either
whole life or universal life because the premium paying period is
shortened and the endowment date is earlier.

Endowment Insurance is paid out whether the insured lives or dies, after
a specific period (e.g. 15 years) or a specific 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 from an injury, but do not typically cover any death resulting
from health problems or suicide. Because they only cover accident, these
policies are much less expensive than other life insurances.

Accidental death benefits can also be added to a standard life insurance

policy as a rider if this rider is purchased,
28 the policy will generally pay
 Related life insurance products.

Rider is modifications to the insurance policy added at the same time the
policy is issued. These riders change the basic policy to provide some
feature desired by the policy owner. A common rider is accidental death,
which used to be commonly referred to as “double indemnity”, which
pays twice the amount of the policy face value if death results from
accidental causes, as if both a full coverage policy and an accidental
death policy were in effect on the insured.

Joint life insurance is either a term or permanent policy insuring two or

more lives with the proceed payable on the first death

Single premium whole life is a policy with only one premium which is
payable at the time the policy is issued.

Modified whole life is a whole life policy that charges smaller premiums
for a specified period of the time after which the premiums increase for
the reminder of the policy.

Group life insurance is term insurance covering a group of people,

usually employees of a company or members of a union or association.
Individual proof of insurability is not normally a considerable in the
underwriting. Rather, the underwriter considers the size and turnover of
the group, and the financial strength of the group.

Group life insurance often has a provision that a member exiting the
group has the right to buy individual insurance coverage.
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 General insurance:-

What is General Insurance?

Insurance other than Life Insurance falls under the category of general
Insurance. General insurance comprises of insurance of property against
fire, burglary etc, personal insurance such as Accident and Health
Insurance, and liability insurance which covers as Errors and Omissions
insurance for professional, credit insurance etc.

Non –life insurance companies have product that cover property against
Fire and allied perils, flood storm and inundation, earthquake and so on.
Personal insurance covers include policies for accident, Health etc.
product offering Personal Accident cover are benefit policies.

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Accident and health insurance policies are available for individuals as
well as groups. A group could be a group of employees of an
organization or holders of credits cards or deposit holder in a bank etc.
normally when a group is covered, insurers offer group discounts.

There are general insurance products that are in the nature of package
policies offering a combination of the covers mentioned above. For
instance, there are package policies available for householders, shop
keepers and also for professionals such as doctors, chartered
Accountants etc. suitable Insurance covers are necessary for every
family. Industries also need to product themselves by obtaining
insurance covers to product there building, machinery, stocks etc. They
need to cover their liabilities as well. Financiers insist on insurance.

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 AUTO INSURANCE

In most states you are required to have auto insurance and you don’t
want to be without it. You need to have liability insurance. How much
you need depends on how much you have in assets. If your car is
expensive and if buying another one would wipe you out financially,
consider buying comprehensive and collision.

HOMEOWNERS’INSURANCE

The purpose of homeowners’ 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 with codes starting with the letters “ho”. While these ratings are
fairly standard, they do very a little with companies, so check with the
company to see what policies cover.
When comparing policies, consider differences among deductible
coverage of property other than the house (sheds, garages, etc.), and
percent of loss covered.
Basic homeowner’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 whether it covers replacement value or fair
market value.
Replacement value is a better buy because it pays to buy a new piece of
furniture or appliance, not what your old one is worth.

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 More about Mutual Fund

Some high- growth mutual funds will consist of high-risk stocks; others
may consist of more stable stocks, as well as bonds in an attempt to beat
inflation.

Always check the objective of the mutual fund and read the fund’s
prospectus to make sure it’s consistent with your goals. A good place to
get independent information on a mutual fund, including its performance
history is through Morningstar, an independent fund rating service.

 An investment in a money market fund is not insured or

guaranteed by the FDIC or any other government agency.

A mutual fund is a trust that pools the savings of a number of investor

who share a common financial goal. The money thus collected is then
invested in capital market instructions such as shares, debentures and
other securities. The income earned through these investment and the
capital appreciations realized are by its unit’s holders in proportion to
the number of units owned by them.

33
 Types of mutual fund

 Open-end fund

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 unit
investment trusts or UITs) and if they issue redeemable securities.

Exchange-traded funds

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

structured as an open-end investment company. ETFs combine
characteristic of both mutual funds and closed-end funds .ETFs are
traded throughout the day on a stock exchange, just like closed-end
funds. But at prices generally approximating the ETF net asset value.

34
 Equity funds

Equity funds which consist mainly of stock investment are the most
common type of mutual funds. Equity funds hold 50% of all amount
invested in mutual funds in the United States. Often equity funds focus
investment on particular strategies and certain types of issues.

Capitalization

Fund managers and other investment professionals varying definitions of

mid-cap and large-cap ranges.

Growth vs. value

Another distinction is made between growth finds, which invest in

stocks of companies that have the potential for large capital gains, and
value funds, which concentrate on stocks that are undervalued. Value
stocks have historically produced higher return: however, financial
theory states this is compensations for their greater risk. Growth funds
tend not to pay regular dividends. Income funds tend to be more
conservative investment, with a focus on stocks that pay dividend.

35
 Index funds vs. active management

An index fund maintains investment in companies that are part of major

stock (or bond) indices. Such as the S&P 500, while an actively
managed fund attempts to outperform a relevant index through superior
stock-picking techniques. The assets of an index fund are managed to
closely approximate the performance of a particular published index.
Certain empirical evidence seems to illustrate that mutual funds do not
beat the market and actively managed mutual funds under-perform other
broad-based portfolios with similar characteristic.

Bond funds

Bond funds account for 18% of mutual fund asset. Types of include term
funds, which have a fixed set of time (short-, medium-, or long- term)
before they mature. High-yield bond funds invest in corporate bonds,
including high yield, these bonds also come with greater risk.

Money market funds

Money market funds hold 26% of mutual funds asset in the United
States. Money market funds entail the least risk, as well as lower rates of
return. Unlike certificates of deposit (CDs), money shares are liquid and
redeemable at any time.

36
 Funds of funds

Funds of funds (FOF) are mutual which invest in other underlying

mutual funds. The funds at the underlying level are typically funds
which an investor can invest in individually. A fund of funds will
typically 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 mix

of 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 entered
this market to provide investor with these options and take the “guess
work” out of selecting funds.

Hedge funds

Hedge funds in the United States are pooled investment funds with loose
SEC regulation and should not be confused with mutual funds. Some
hedge fund managers are required to register with SEC as investment
advisers under the investment advisers Act [12]

37
 Mutual funds vs. other investment

Mutual funds offer several advantages over investing in individual

stocks. For example, the transaction costs are divided among the entire
mutual funds shareholder, which allows 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 whether professional
fund managers can, outperform simple index funds that mimic public
indexes.

Share classes

Many mutual funds offer more than one class of shares. For example,
you may have seen a fund that offers “class A” and “class B” shares.
Each class will invest in the same pool (or investment portfolio) of
securities and will have the same investment objectives and policies.

A multi-class offers investor the ability to select a fee and expense

structure that is most appropriate for their investment goals (including
the length of time that they expect to remain invested in the fund).

38
 Load and expense

A front-end load or sales charge is a commission paid to a broker by a

mutual fund when shares are purchased, taken as a percentage of funds
invested. The value of the investment is reduced by the amount of the
load.

Load funds are sold through financial intermediaries such as brokers,

financial planners, and other types of registered representatives who
charge a commission for their services. Shares of front-end load funds
are frequently eligible for breakpoints based on a number of variables.

It is possible to buy many funds without paying a sales charge. These are
called no-load funds. In addition to being available from the fund
company itself no-load funds may be sold by some discount brokers for
a flat transaction fee or even no fee at all.

No-load funds include both index funds and actively managed fund. The
largest mutual funds families selling no-load index funds are Vanguard
and Fidelity, through there are a number mutual fund families with no-
load funds as well.

Many fee-only financial advisers strongly suggest no-load funds such as

index funds. If the advisor is not of the fee-only type but is instead
compensated by commissions, the advisor may have a conflict of interest
in selling high-commission load funds.

39
 How to identify investment avenues

Though investment opportunities abound all the time and in almost all
situations, often they may not be very easy to identity. A shared and
discerning investor will usually find opportunities for making money in
places, and in situations, where a less discerning one will not.

Changes in government policies

Major changes in government policies often benefits some companies by

opening up new avenues for growth and higher profits and such
companies provide excellent investment opportunities for investors who
are quick recognizing the implications of such policy changes .In the
early 1980s removal of price controls over cement ushered in a period of
high growth for ACC and other cement companies.

Change in government policy can also sometime affect a company

adversely. If you are a shareholder and are quick to foresee the
implication of such a change, you can sell your shares before their prices
began to fall.

40
 Technological Innovation

We are living in a society which is being increasingly dominated by

technology. Accordingly, alert investors on the lookout for big gains will
find suitable investment opportunities in companies, which go in for
technological innovation in a big way.

-Anticipating the future

The best investment opportunities are available to those who can

successfully anticipate the future. If you can identify the future areas or
directions of growth, you would have indentified when and where to
invest for maximum returns.

The day is not far off when the pollution levels will become intolerable
and will pose a major health hazard to the population. Environmental
pollution is becoming an area of serious concern to the public and the
government. The water pollution and air pollution acts have already
been passed by parliament and the government has established a new
department, known as the department of environment for implementing
these laws.

All these developments are pointers to an emerging high growth area,

the manufacture of air pollution and water pollution control equipment.
These development also point to a high growth in health care.

41
 International trends

Globalization is the buzzword since the 1990s.No country in the world

can now hope to remain immune from the influence of international
economic trends. As a result, it has now become imperative for Indian
stock market investors to keep a close watch on international economics
development and to analyze there likely impact on the performance of
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 and
shipping corporation of india.

Sunrise industries

The term sunrise industries, refers to the new and emerging industries of
the future. Early investment made in those companies which have been
correctly 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 21st century are likely to be computer

software, computer training, bio-technology, electronic mail, processed
foods, telecommunication, corporate hospital, budget hotels, privet
airlines, oil exploration, population control, diagnostic kits. Past-food
chains and departmental stores. If you are serious about marketing
money then you simple can not afford to ignore these industries.

42
 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
Limited
5 109 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.

43
General Insurances

S. No. Registration Date of Name of the company

Number Registration
1 102 20.10.2000 Royal Sundram Alliance Insurance
Company Limited
2 103 23.10.2000 Reliance General Insurance Company
Limited
3 106 04.12.2000 IFFCO Tokyo general insurance Co.
Limited
4 108 22.01.2000 TATA AIG General Insurance
Company Limited
5 113 02.05.2001 Bajaj Allianz General Insurance
Company Limited
6 115 03.08.2002 ICICI Lombard General Insurance
company LIMITED
7 131 03.09.2002 Apollo DKV Insurance Company
Limited
8 132 04.10.2002 Future Generali India Insurance
Company Limited
9 134 16.11.2002 Universal Sompo General Insurance
Company Limited

44
 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

45
 Reliance growth funds

Performance as on Absolute Compound

31.07.2008 annul

6 month 1 year 3 year 5 Since

year
Reliance Growth -18.78 -2.05 28.17 48.85 30.95
fund – retail plan-
growth
BSE 100 -20.68 -6.4 22.45 31.61 12.58

Reliance growth fund

SIP return as on march 30, 2007

Period 1 year 3 year 5 year Since

inception
SIP start date 01/07/06 01/07/04 01/07/02 08/10/01
Current NAV 307.46 307.46 307.46 307.46
Total no. of units 47.70 226.89 813.34 957.72
Total amount 12000 36000 60000 141000
invested
Present value 14667 69758 250068 1836064
Yield 46.44% 49.30% 61.26% 40.05%
Present value 14134 61243 15493 518565
invested in inbox
Yield from inbox 36.73% 38.51% 39.50% 20.68%
46
 Reliance vision funds

Performance as on Absolute Compound

31.07.2008 annul

6 month 1 year 3 year 5 Since

year
Reliance vision fund -25.22 -15.9 22.96 37.45 30.95
– retail plan-
growth
BSE 100 -20.68 -6.42 22.45 31.61 12.58

Reliance vision fund

Sip return as on march 30, 2207

Period 1 year 3 year 5 year Since

inception
SIP start date 01/07/06 01/07/04 01/07/02 10/10/01
Current NAV 207.46 207.46 207.46 07.46
Total no. of units 70.17 320.24 785.51 989.56
Total amount 12000 36000 60000 141000
invested
Present value 14667 69758 250068 1836064
Yield 46.44% 49.30% 61.26% 40.05%
Present value 14134 61243 15493 518565
invested in inbox
Yield from inbox 36.73% 38.51% 39.50% 20.68%

47
 LIFE INSURANCE

Metlife Insurance is a prime mover in the India insurance market.

MetLife India Insurance Company Limited is affiliated to the MetLife,
Inc, MetLife offers its customer a wide array of value added, innovative
financial product. The company operates in over 600 locations in India,
via its own offices and its bank partners.

It may be noted that MetLife, inc. serves over 70 million customers

around the world, via its affiliates. Services of Metlife companies
involve the following areas.

 Life Insurance
 Retail banking
 Annuities
 Home insurance
 Automobile insurance
Financial services provided by the company include individual
insurance, reinsurance and group insurance. Saving and retirement
products services are offered to corporations and various types of others
institutions.

MetLife India Insurance Company Ltd offer the followings services.

 Individual planes
 Micro Finance
 Employee Benefits

48
 HEALTH INSURANCE

Axis bank offers to its customer health insurance for the full family
which covers the customer, his\her spouse and3 independent children’s
up to the age of 25 years.

BENEFITS OF THE POLICY

 This policy covers the whole family in a single policy so there is

no need for the customer to take different policy for different
members of the family.
 The policy covers relevant medical expense incurred 60 days prior
to and 90 days after hospitalizations.
 The policy covers ambulance charges up to Rs. 1000
 Under section 80D of income tax act customer will be entitled to
income tax benefits on the premium paid for the policy.

SAFEGUARD

Axis bank along with BAJAJ Allianz General Insurance have

brought SAFEGUARD accidental insurance policy.
This policy gives insurance coverage in case of:-
 Accidental death
 Accidental permanent total disability
 Accident permanent partial disability
 Children’s education bonus

49
 BENEFIT CHART

IN CASE OF AMOUNT PAYABLE

ACCIDENTAL 100% OF SUM INSURED+CHILD EDUCATION

DEATH BONUS
PERMANENT 125% OF SUM INSURED
TOTAL
PERMANENT APPLICABLE PERCENTAGE OF SUN INSURED
PARTIAL DEPENDING ON NATURE ON NATURE OF
DISABILITY DISABILITY

Children education bound is Rs.5000/- per child subject to

maximum 2 children below the age of 19.
Includes coverage for loss of sight in both eyes, loss of both
hands /both /feet /one hand and one foot, one eye an done
hand, one eye and one foot, or other total permanent
disablement.

Schemes under insurance policy

Sum RS Rs100000 Rs Rs Rs
insured 500000 0 150000 200000 250000
0 0 0
Premiu Not 990 1800 2250
m 1 year availabl 1350
e
Premiu 1310 2619 3929 5238 6548
m 3 year
Premiu 2115 4230 6345 8460 10575
m 5 year

64

50
 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. Absolute 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

SCHEMES OFFERED TO CUSTOMERS

PARTICULARES SUM INSURED Rs PREMIUM Rs.

Jewellary and valuables 500000 4999
1000000 9999

51
 Methodology

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 know
the interest of peoples for investment & insurance production.
My saple size was 50.
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 mutual
fund co’s & insurance co’s persons give preference to it.
Weafness :-
 Market fluations
 Less knowledge about the products
 Persons are less interested in taking risks
Opportunities
 Good financial advisory services
 Promote better products
Thrats
 Unstable market
 More concerned about returns

52
QUESTIONNARE

53
Q 1 . Your annual income.

Seriasl 1 <2.5 laces 10%

Seriasl 2 2.5 lacs40 %

Seriasl 5-10 laces 30%
Seriasl above 10 laces 20 %

ANNUAL INCOME
Series1, 1, 10%
Series1, 4, 20%

Series1, 2, 40%
Series1, 3, 30%

54
Q 2 what is the ratio of your saving and expenses?

1. Ratio 20:80----44%
2. Ratio 40:60----24%
3. Ratio 50:50----20%
4. Others ---------12%

Series1, 12%

Series1, 44%

1
Series1, 20%
2
3
4

Series1, 24%

55
 Q 3 you bank with?
1. IDBI-10%
2. ICICI-24%
3. SBI-16%
4. HDFC-16%
5. AXIS-8%
6. OTHERS-26%

1
6 10% 2
26% 24%

1
2
3
4
5 5
8%
6

4 3
16% 16%

56
Q 4 What would be your preference while doing
investment?
1. MF 14%
2. SIP 10%
3. FD 30%
4. ULIP 10%
5. SHARES 20%
6. OTHERS 16%

6 1
16% 14%

2
10% 1
2
3
4
5 5
20%
6
3
30%
4
10%

57
Q 5. For what duration would you like to invest?
1. <1 year 10%
2. 1-2 years 20%
3. 2-5 years 44%
4. >5 years 26%

1
10%

4
26%

2 1
20%
2
3
4

3
44%

58
Q 6 what rate of return do you expect from the investment
you decide to make?
1. 10-15%----------52%
2. 15-20%----------28%
3. 20-25%----------16%
4. Above25%------4%

4
3 4%
16%

1
2

1 3
52% 4

2
28%

59
Q.7 Your knowledge about market?

1. Limited 20%
2. Optimum 46%
3. Extensive 34%

1
20%

3
34%

1
2
3

2
46%

60
Q.8 what is the basic force behind your investment making
decision?
1. Newspapers 14%
2. Friends 10%
3. Brokers 34%
4. Tax/financial advisors 32%
5. Past experience 6%
6. Bank staff 4%

6 1
5 4% 14%
6%

2
10%
1
2

4 3
32% 4
5
6

3
34%

61
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%
6
30%
1
2
3
4
5
2
12% 6
5
12%
4 3
10% 10%

62
Q 10 Are the banks able to serve your need and expectations ?
1 Yes 54%
2 No 26%
3 partially 20%
3
20%

1
1
54% 2
3

2
26%

63
Q 11. What kind of services related to account & advisory
services you are looking for ?

 More cash counters for withdrawing and depositing cash.

 Good ATM services.
 More advisory services regarding investment queries.
 Good response from the staff.

64
LIMITATION OF THE STUDY

While working on the project, the following limitations

were there

 Being a trainee couldn’t approach the customers

directly to sell the product.
 Covering only a particular area i.e. jaipur.
 Many people didn’t knew adout the products because
either they don’t invest at all or invest through some
broker.

65
 Conclusion

 Axis bank has great goodwill in the market.

 In survey, it is found that most of the people invest in
fixed deposits where returns are sure.
 Bank has interesting& profitable plans for different
age groups.
 I found that in Financial Advisory Services Sector, a
person should have great communication &
convenience skills.
 People generally spend more than what they save.
 People generally like to invest for longer period rather
than taking short term gains.
 Most of the people take bank services for investing
their money.

66
 Bibliography

Websites :-
 www.axisbank.com
 www.mutualfundindia.com
 www.amflindia.com
 www.irdaindia.org

Books/Managers-:

 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

67