Escolar Documentos
Profissional Documentos
Cultura Documentos
CONSUMER SURVEY”
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ACKNOWLEDGEMENT
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
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CONTENTS
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
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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
INTERPRETATION OF PERFORMANCE
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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)
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.
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)
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.
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)
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%.
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Bank Fixed Deposits (FDs)
(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.
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.
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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.
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Mutual fund
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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.
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?
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.
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)
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.
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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
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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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.
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
Temporary (Term)
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Permanent
The three basic types of permanent insurance are whole life, universal
life, and endowment.
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.
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.
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
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
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.
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 often has a provision that a member exiting the
group has the right to buy individual insurance coverage.
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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
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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.
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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
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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
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Index funds vs. active management
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 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.
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Funds of 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]
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Mutual funds vs. other investment
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.
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Load and expense
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.
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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.
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Technological Innovation
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.
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International trends
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.
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MAJOR PLAYERS IN INSURANCE
Life Insurance
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General Insurances
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PRODUCTS PROMOTED BY ME:-
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Reliance growth funds
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LIFE INSURANCE
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.
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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.
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BENEFIT CHART
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
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Jewellary insurance
FEATURES:-
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Methodology
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QUESTIONNARE
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Q 1 . Your annual income.
ANNUAL INCOME
Series1, 1, 10%
Series1, 4, 20%
Series1, 2, 40%
Series1, 3, 30%
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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%
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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%
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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%
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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%
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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%
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Q.7 Your knowledge about market?
1. Limited 20%
2. Optimum 46%
3. Extensive 34%
1
20%
3
34%
1
2
3
2
46%
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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%
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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%
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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%
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Q 11. What kind of services related to account & advisory
services you are looking for ?
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LIMITATION OF THE STUDY
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Conclusion
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Bibliography
Websites :-
www.axisbank.com
www.mutualfundindia.com
www.amflindia.com
www.irdaindia.org
Books/Managers-:
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