SUMMER TRAINING PROJECT REPORT

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

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

Submitted By ANSHU KATIYAR 08133DM013

Under the Supervision of Ms. EKTA SINGH

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

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DECLARATION

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

DATE: ANSHU KATIYAR PLACE: PGDM 3rd SEM

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ACNOWLEDGEMENT

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

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

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

ANSHU KATIYAR

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TABLE OF CONTENT:TOPIC CHAPTER 1:CHAPTER 2:CHAPTER 3:CHAPTER 4:CHAPTER 5:

Page No. 5 8 19 21 80 81 82 82 82 83 83 83 84 95 97 99 101 105 107

Introduction To topic Introduction to Organization/Industry Importance of study Scope Of Study Research Design

Research Problem Research Objectives Universe/Population of the study Sample Size Sampling Technique Data collection Data analysis Data interpretation Conclusion Recommendations & Suggestions Limitation Literature review

CHAPTER 6:CHAPTER 7:CHAPTER 8:CHAPTER 9:CHAPTER 10:-

References (Bibliography) Appendix

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CHAPTER 1:-

INTRODUCTION OF TOPIC

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Introduction of wealth management:-

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

Wealth management services area in financial sector has been witnessing more attention during last couple of years. Cap Gemini Merrill Lynch Wealth report 2007 cites number of HNWIs globally to be around 9.5 million with wealth held by them totaling to US$37.2 trillion in year 2006. Value of wealth held by HNWIs represents an increase of around 11.4% since 2005.

Considering long-term high value business proposition. Number of banks and niche players has started offering full range of wealth management services targeted to HNWIs and emerging effluents. While growing volume of premium services to affluent clients becomes the key driver for most of the services provider firms. Many unique elements inherent to wealth management services
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requires completely different services offering model then the existing model for transactional services greatly accustomed in offering commoditized financial services so far. Demand of unconventional form of service model poses a big challenge in charting growth path for these wealth management firms.

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

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

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

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CHAPTER 2:-

INTRODUCTION TO ORGANIZATION/INDUSTRY:-

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

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

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

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Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank State Bank of India IDBI Bank

ASSOCIATES OF STATE BANK OF INDIA

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore

Private Sector Bank: - Private Sector Bank is that bank which is run by private
organization and government of India did not have any stake in it. In India, there are many Indian private banks. Some private sector banks are ICICI Bank HDFC Bank UTI Bank/AXIS Bank
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Indusind Bank Centurion Bank Karun vyas Bank Yes Bank Kotak Mahindra Bank, etc.

Foreign Bank: - Foreign Banks are those banks which are established outside the
India and open there branches in India and operating there branches from their mother country. Some of the major foreign banks are ABN AMRO STANDARD CHARTEREDING VASYA BANK HSBC BANK CITI BANK AMERICAN EXPRESS BANK, etc.

KOTAK MAHINDRA BANK

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

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

1986 1987

Kotak Mahindra Finance Limited starts the activity of Bill Discounting Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

1990 1991

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

1992 1995

Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company

1996

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

1998

Enters the mutual fund market with the launch of Kotak Mahindra
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Asset Management Company. 2000 Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation Launches Insurance Services 2003 Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. 2004 2005 Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund 2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

VISION

The global Indian financial services brands our

customers will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers customized pragmatic solutions across multiple platforms. We will be a world class Indian financial services group. Our technology and best practices will be benchmarked along international lines while our understanding of
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customers will be uniquely Indian. We will be more than a repository of our customers saving. We, the group, will be a single window to every financial service in a customers universe. The most preferred employer in financial services a culture of empowerment and a spirit of enterprise attracts bright minds with an entrepreneurial streak to join us and stay with us. Working with a home-grown, professionally-managed, which has partnerships with international leaders, gives our people a perspective that is universal as well as unique. The most trusted financial services company we will create an ethos of trust across all our constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust. Value creation value creation rather than size alone will be our business driver.

GROUP COMPANIES

Kotak Securities Kotak Mahindra Old Mutual Life Insurance Limited Kotak car finance Kotak Prime Kotak Mahindra Asset Management Company Kotak home finance

Kotak Securities
Kotak Securities Ltd. is one of India's largest brokerage and securities distribution house in India. Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-coordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline

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services based on well-researched expertise and financial products to the noninstitutional.investors.Its MD is Mr. Narayan S. A.

Kotak Mahindra Old Mutual Life Insurance Ltd.

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

Kotak Mahindra Prime

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

Kotak Mahindra Asset Management Company

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

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KOTAK MAHINDRA LIFE INSURANCE:Kotak Mahindra group is one of Indias leading banking and financial services organizations, with offerings across personal financial services; commercial banking; corporate and investment banking and markets; stock broking; asset management and life insurance. The Kotak Group employs around 20,000 people and has over 1,350 York, San Francisco, Singapore, Dubai and Mauritius. Old Mutual plc is an international savings and wealth management company based in the UK. Originating in South Africa in 1845, it is among the top 50 largest companies in the FTSE100. The group has a balanced portfolio of businesses offering Asset Management, Life Assurance, Banking and General Insurance Services in over 40 countries, with a focus on South Africa, Europe and the United States, and a growing presence in Asia Pacific. Old Mutual plc employs approximately 53,000 employees worldwide and is listed on the London and Johannesburg stock exchanges.

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CHAPTER 3

IMPORTANCE OF STUDY

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

Every individual wants to get maximum from their investments.

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

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 There are various investment options available to the investors.

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

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

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

Assets with uncertain cash flows & fixed maturities: Derivatives

Assets with uncertain cash flows & uncertain maturities: Equity

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

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CHAPTER 4:-

SCOPE OF STUDY:-

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WEALTH MANAGEMENT AN EMERGING SECTOR:Wealth management services area in financial sector. Hitherto used to be the preserve of some top multinational banks and financial firms- offering exclusive services to a select few has been witnessing more attention during last couple of years. A booming economy, rising stock prices and an increase income and spending power have bought sharp focus on this sector. With an increasing population of High Net Worth Individuals (HNWIs) I, the unsaid tagline of earlier days-Dont call us, well call you (if you are wealthy) seems to be Completed altered in recent times. Considering long term high value business preposition. Number of banks, financial firms and niche players has started offering full length of wealth management services targeted to HNWIs and emerging effluents. As per recently published Cap Gemini Merrill Lynch wealth report 2007, number of HNWIs around the world and value of their assets continuously rising. Number of HNWIs globally is estimated to be around 9.5 million in year 2006. An increase of over 8.35% over previous year. HNWI wealth totals US$37.2 trillion, representing an increase of around 11.4% since 2005.

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As per report, number of HNWIs in India is increasingly growing at a rate higher than other region of world. Number of HNWIs in India is estimated to be around 100,000 in year 2006 and increase of over 20.5% over previous year. Though, in absolute terms the above numbers appears pretty miniscule (if we compare that with the number of the retail investors in India too) however in terms of value it really makes a huge sum of serviceable investment.

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

RECENT TRENDS OF WEALTH MANAGEMENT FIRMS:Wealth management clients are demanding comprehensive and tailored services, with bespoke investment options. They are also keen to maintain relationships with multiple banks, to compare offerings and opt for the best. Banks are sparing no efforts to strategically transform their product offering and services, while revamping their technology infrastructure to differentiate themselves from competition. The wealth management space is now being catered to by different types of firms including brokers, private banks, retail banks and insurance houses. And all of them are vying for the same clients the booming mass affluent segment and the high net worth segment. Wealth management firms are making strategic investments to differentiate themselves in the eyes of existing and would be high net worth and ultra high net worth

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clients. Insurance firms, brokerage services firms and retail banks are investing heavily on the advisor centric model and each one is trying to be the chosen wealth manager for the retirement segment as well as for the younger generations. This has resulted in direct competition in a space. Dominated, till recently by private banks and trusts. As a result, each of these players is looking at how best to differentiate its offering. Clearly, then as wealth management firms increasingly complete for the same high net worth clients, and clients themselves become more demanding, the pressure is on firms to understand the essence of clients needs in existing and growth markets, even if they have already devolved an accurate understanding of high net worth individuals in their established markets. Without this insight, firms will find it difficult to develop an attractive proposition. As a result, banks are moving away from the conventional pure product focus and focusing on total solutions that are completely oriented to clients needs.

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

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

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

Percentage of allocation to alternate investments and real estate going down significantly their rapid changes in asset allocation strategies based on dynamic market place in banks reviewing product offerings and offering innovations on current products, while trying to move clients holdings to safer investment.

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

Transactions Investment management Wealth planning

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

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

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

KEY COMPONENTS OF WEALTH MANAGEMENT:Banking Products Loans, Cash, Accounts, Deposits Investment Products Equity, fixed income, Investment funds Alternatives investments Private investment, Hedge funds Pension accounts Normal investment accounts

Insurance products

Life insurance, Non life insurance Super annotation accounts

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WEALTH MANAGEMENT OVERVIEW:-

CLIENT PROFILING AND ASSESSMENT OF INVESTMENT

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

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

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FINANCIAL PLANNING:Clients profiling takes in account multitude of behavioral, demographic and investment characteristic of a client that would determine each clients wealth management requirement. Some of key characteristic to be evaluated for defining clients investment objectives are: Current and future income level Family and life events
Risk appetite/tolerance

Taxability status Investment horizon Asset preference/ restriction Cash flow expectations
Religious belief (non investment in sin sector like- alcohol, tobacco, gambling

firms, or compliant with Shari laws)

Behavioral history (pattern of past investment decision)

Level of clients engagement in investment management (active/passive) Present investment holding and asset mix

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Based on the client profile. Investment expectations and financial goals of the client could be clearly outlined. Defining investment objectives helps to identify investment options to be considered for evaluation. Investment objective for most of the investors could be generally considered for evaluation. Investment objective for most of the investors could be generally considered amongst the following: Current income
Growth (capital appreciation)

Tax efficiency (tax harvesting) Capital preservation (often preferred by elderly people to make sure they dont outlive their money) After establishing investment objectives, a broad framework for harnessing possible investment opportunities are formulated. Their framework would factor for risk return trade-off of considered. Options, investment horizon and provide a clear blueprint for investment direction. Investment strategy helps in forming broad level envisioning of asset class (Securities forex, commodity, real state, reference and indices, art/antique and life style assets (car, boat, and aircraft)), market, geography sector and industry. Each of these asset classes is to be comprehensively evaluated for inclusion in portfolio model, in view of defined investment objectives. While defining the strategy, consideration of client preference or avoidance for specific asset class, risk tolerance, religious belief is the key element, which would come into picture. Thus for a client with a belief of avoidance of investment in sin industries (alcohol,tobacco,gambling,etc)is to be duly taken care of likewise, for a client looking for Sharia compliant investment, strategy formulation should consider investment options meeting with a client expectations. Guided with the investment strategy, consitituents in portfolio model are determined. Which would directly and efficiently contribute towards clients investment objectives? Thus, broad level investment guidance of-investment in fixed income in
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emerging market would further determine classification within fixed income such as govt or corporate bonds. Fixed and variable rate bonds, long and short maturity bonds, deep discounted and par bonds. Asset backed or other debt variants. Return profile, risk sensitivity and co-relation of constituents within portfolio model would help to determine the size (weight age) of each individual constituent in the portfolio.

STRATEGY IMPLEMENTATION:Having decided the portfolio constituents and its composition, transactions to acquire specific instruments and identified asset class is imitated. As acquisition cost would be having bearing on overall performance of the portfolio, many times process of asset acquisition may be spread over a period of time to take care of market movement and acquire the asset at favorable price range.

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

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aImplementing strategies and placement of investments. Discussing the structure of ongoing management services available,

INVESTMENT OPTIONS AVAILABLE TO INVESTORS :- (MANAGED FUNDS)

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

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

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

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

PERSONAL RISK PROTECTION:Have you ever considered the impact on your family or business if you suffered a serious accident or illness, become totally disabled or died prematurely? Insurance

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is an important risk management tool that can protect you. Your family and your business from financial hardship caused by unplanned events. Our advisors can assist you to identify the risks determine the most cost effective solution and implement a risk management program which has been tailored to suit your specific requirement. Financial advisors provide advice on the following areas:-

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

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

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

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

BANKING SERVICES: - under this head kotak provides various accounts to

their customers. Kotak provides three types of their customer. 1. Saving account 2. Current account 3. Term deposit

SAVING ACCOUNT: - Savings accounts are designed to ensure you receive

the benefits of quick & convenient banking transactions along with options for your money to earn high returns. The savings account goes beyond the traditional role of savings, to provide you a range of services from funds transfer options to online payments of bills to attractive returns earned through comprehensive suits of investment options. The various saving account options available to customers are. 1. Ace saving account 2. Pro savings account

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

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

Features and Benefits:

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

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

ACE Saving Bank Accounts

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Feature Particular Ace

Accoun ts

Average Quarterly Balance Investment account Additional Saving Account

Rs.75000

Free 3 NOVA a/c Rs.15000 0

Swee 2-way sweep p DD/B C non-branch location On branch location

Free Unlimited Free Rs.30 lacs

Card s

Debit card

Free for life

Add on card Own/HDFC ATM VISA ATM Cheq ue book Pre-Carbonated Other Demat account Home banking Internet banking At par cheque

Free Free Free Free

Free Free Free Free

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PRO SAVINGS ACCOUNT: - unlimited access your bank account at over

35,000 VISA and Cash net ATMs in India and over 388,000 Merchant establishments which accepts VISA credit/debit cards in India. Multiple channels access your account through your phone, mobile phone or internet to get information on your account balance or track your transactions. You can even transfer funds through phone banking or net banking. You can open a free investment account, and use the net banking facility to purchase/redeem mutual funds online while directly debiting/crediting your bank account. Besides this you get a consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports.

PRO Saving Bank Accounts

Feature Accounts Particular Average Quarterly Balance Investment account Additional Saving Account Sweep DD/BC 2-way sweep On branch location non-branch location Cards Debit card Add on card Own/HDFC ATM VISA ATM Free 1 NOVA a/c Rs.40000 Free Unlimited Free Rs.5 lacs Free for life Charged Free Free Pro Rs.20000

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Cheque book

At par cheque Pre-Carbonated

Free Free Free Free Free

Other

Demat account Home banking Internet banking

NOVA SAVINGS ACCOUNT: - Nova savings account is complete financial

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

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

Edge Saving Bank Accounts

Feature Accounts

Particular Average Quarterly Balance Investment account Additional Saving Account

Edge Rs.10000 Free NA Rs.20000 Charged Charged Free for 1st year Charged

Sweep DD/BC

2-way sweep On branch location non-branch location

Cards

Debit card Add on card

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Own/HDFC ATM VISA ATM Cheque book At par cheque Pre-Carbonated Other Demat account Home banking Internet banking

Free Charged Free No Free Charged Free

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

Ace accounts Pro accounts Edge accounts Elite accounts

ACE Current Accounts

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Feature

Particular

Ace

INTEREST Accounts

ON CURRENT ACCOUNT Average Quarterly Balance Investment account Additional Saving Account

YES Rs.250000 Free 3 Nova SA Rs.500000 Free unlimited Free up to 30 lacs p.m. Free for 1st year Free for 1st year Free Free Free Free Free Free Free

Sweep DD/BC

2-way sweep On branch location non-branch location

Cards

Debit card Add on card Own/HDFC ATM VISA ATM

Cheque book

At par cheque Pre-Carbonated

Other

Demat account Home banking Internet banking

PRO Current Account

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Feature

Particular

Ace

Accounts

Average Quarterly Balance Investment account Additional Saving Account

Rs.50000 Free 1 Nova SA Rs.100000 Free unlimited Free up to 5 lacs p.m. Free for 1st year Charged Free Free Free Free Free Free Free YES

Sweep DD/BC

2-way sweep On branch location non-branch location

Cards

Debit card Add on card Own/HDFC ATM VISA ATM

Cheque book

At par cheque Pre-Carbonated

Other

Demat account Home banking Internet banking

INTEREST

ON CURRENT ACCOUNT

Edge Current Accounts

Page 43 of 118

Feature

Particular

Edge

Accounts

Average Quarterly Balance Investment account Additional Saving Account

Rs.25000 Free Nil Rs.50000 Free unlimited Charged Free for 1st year Charged Free Charged Rs.2 per leaf Rs.4 per leaf Free Free Free YES

Sweep DD/BC

2-way sweep On branch location non-branch location

Cards

Debit card Add on card Own/HDFC ATM VISA ATM

Cheque book

At par cheque Pre-Carbonated

Other

Demat account Home banking Internet banking

Interest

on current account

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

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

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

Kotak Smart Advantage Plan Kotak External Life Plans Kotak Smart Advantage Plan Kotak External Life Plans Kotak Head start Child Plans Kotak Safe Investment Plan || Kotak Flexi Plan Kotak Easy Growth Plan
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 Kotak Capital Multiplier Plan Kotak Term Plan Kotak Preferred Term Plan Kotak Chid Advantage Plan Kotak Retirement Income Plan Kotak Retirement Income Plan (Unit Linked) Kotak Endowment Plan Kotak Money Back Plan Kotak Premium Return Plan Riders

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

Kotak life insurance introduces Kotak Smart Advantage, a great combination of investment with insurance, to put your savings to work today. It is a market linked plan with100% premium allocations helping you accumulate wealth systematically, over the Long-term. This plan offers the following key benefits.
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Guranteed returns of up to 275% of your first year premium at maturity Assured bonus additions at regular intervals during the policy term to enhance your fund value

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

A unique fund offering you the maximum opportunity for growth Option to maximize protection for your loved ones Applicable for premium sizes of Rs 36000 and above annually from second year onwards.

INVESTMENT PATTERN

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

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

What can External Life do for you?

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

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

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

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

INVESTMENT PATTERN

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

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

Choice of 2 plan variants Future Protect Assure Wealth

Maximizes wealth while providing protection Joint life option Save for 2 children with one plan Additional bonus units Flexible Withdrawal

_____________________________________________________________________

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INVESTMENT PATTERN

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

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INVESTMENT PATTERN

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

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INVESTMENT PATTERN

Kotak Easy Growth Plans are single premium; market linked insurance plans that keep pace your ever growing success. It not only helps you save for the future but also lets you reap rich benefits from the investments of your choice. The undisputed advantage of these plans is its simplicity. This simplicity stems from our clear

Page 53 of 118

understanding of what would appeal to a customer who is looking for a hassle free investment option.

INVESTMENT PATTERN

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

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INVESTMENT PATTERN

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

INVESTMENT PATTERN

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

INVESTMENT PATTERN

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

INVESTMENT PATTERN

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

The Plan comes in two Forms... 1.) With Cover 2.) Without Cover

INVESTMENT PATTERN

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

vegetables costlier by probably five times. Medical costs would have doubled or more.
An ideal retirement solution is the one that gives you complete flexibility and peace of mind. Not only while you save for your retirement but also after have had you retired. To help you plan towards the golden years of your life, we present to you the Kotak Retirement Plan (Unit Linked). An investment plan designed to secure your future it assures that even though you have stopped working, your income does not. It is offered to you in three versions Regular Premium, With Cover & without Cover, in addition to a single premium version. The regular Premium options come with the Kotak seal of Guarantee@. These plans have been designed to ensure that your money earns you handsome returns, safe from the vagaries of the Capital Market, so that you can retire comfortably & securely.
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Please note that in these plans, the investment portfolio is to be borne by the policy holder. However, Kotak Life Insurance offers you a BASIC Sum Assured/Guaranteed Maturity on the Regular Premium versions of this plan to safeguard against the, downside risk of falling markets.

INVESTMENT PATTERN

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

INVESTMENT PATTERN

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

INVESTMENT PATTERN

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

INVESTMENT PATTERN

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

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

EXPLANATION:

DEBENTURE: A debenture is a debt issued by a company, which offers to

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

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

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

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

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

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

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

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T-BILLS (TREASUREY BILLS): Issued by the central government to

meet their short term deficiencies and is mostly placed privately by the central bank & is issued for the tenure of 14 days, 91 days, 182 days, and 364 days & is issued on every Friday & alternate Wednesdays.

COMERCIAL PAPERS (C.P.) It is an unsecured money market

instrument issued in the form of promissory notes to diversify their sources of short term borrowing & to provide an additional route to investors.

DEPOSITE:

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

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

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

Page 65 of 118

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

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

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

KOTA30:

It is a basically an open ended scheme whose salient features

are as follows:

Investment Pattern Index A Portfolio of Equity & Equity related securities Nifty

Benchmark

S&P CNX

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

Page 66 of 118

Invetment Horizon Expenses 1 3 Year

Estimated Recurring

2.50%

Investment Options Growth Dividend Payout Re-Investment

Dividend Frequency at the Discretion of Trustees

Minimum Investment of Initial Additional Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak 30

Systematic: Rs 1000/-

Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

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DEFINATION: S&P CNX Nifty nicknamed nifty 50 or simply nifty (NSE: ^NSEI), is
the leading index for large companies on the national stock exchange of India. The NIFTY is of well diversified 50 stock indexes accounting for 22 sector of the economy. It is used for a variety of purposes such a benchmarking fund portfolios, index based derivatives and index funds, these companies are;

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

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

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

BHARAT AIRTEL LTD., TELECOMUNICATION SERVICES BHARTI ARTEL, EQ, INE397D01016 CAIRN INDIA LTD., OIL

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EXPLORATION/PRODUCTION, CAIRN, EQ, INE910H01017 CIPLA LTD., PHARMACEUTICALS, CIPLA, EQ, INE059A01026 DLF LTD., CONSTRUCTION, DLF, EQ, INE271C01023 GAIL, (INDIA)
LTD., GAS, GAIL, EQ, INE129A01019 GRASIM INDUSTIES LTD., CEMENT & CEMENT PRODUCTS, GRASIM, EQ, INE047A01013 HCL TECHNOLOGIES LTD., COMPUTERS SOFTWARE, HCLTECH, EQ, INE860A01027 HDFC BANK LTD., BANKS, HDFCBANK, EQ, INE040A01018 HERO HONDA MOTORS LTD., AUTOMOBILES -2 & 3WHEELERS, HEROHONDA, EQ, INE158A01026 HINDALCO INDUSTRIES LTD., ALUMINIUM, HINDALCO, EQ, INE038A01020 HINDUSTAN UNILIVER LTD., DIVERSIFIED, HINDUNILIVER, EQ, INE039A01027 HOUSING DEVELOPEMENT FINANCE CORPORATION LTD., FINANCE HOUSING, HDFC, EQ, INE001A01028

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 ITC LTD., SIGARETTES, ITC, EQ, INE154A01025 ICICI BANK LTD., BANKS, ICIACI BANK, EQ, INE090A01013 IDEA CELLULAR LIMITED, TELECOMUNICATION SERVICES, IDEA, EQ, INE669E01016 INFOSYS TECHNOLOGIES LTD., COMPUTERS SOFTWARES, INFOSYSTECH, EQ, INE009A01021 JINDAL STEEL & POWER LIMITED, STEEL & STEEL PRODUCTS, JINDAL, STEEL, EQ, INE749A01030 LARSEN &TURBO LTD., ENGINEERING, LT, EQ, INE018A01030 MAHINDRA & MAHINDRA LTD.,AUTOMOBILES -4 WHEELERS, M&M, EQ, INE101A01018 MARUTI SUZUKI INDIA LTD, AUTOMOBILES -4 WHEELERS, MARUTI, EQ, INE585B01010 NTPC LTD., POWER,NTPC,EQ, INE733E01010 NATIONAL ALUMINIUM CO., LTD., ALUMINIUM, NATIONALUM, EQ, INE139A01026 OIL & NATURAL GAS CORPORATION LTD., OIL EXPLORATION/PRODUCTION, ONGC, EQ, INE213A01011

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

Punjab National Bank, BANKS, PNB, EQ, INE160A01014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Unitech Ltd., CONSTRUCTION, UNITECH, EQ, INEE694A01020

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

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

Investment Pattern Equity & Equity related securities: 65% Debt & Money Market instruments: 5% -

Benchmark Index CNX Midcap 95% 35%

Invetment Horizon Expenses 1 3 Year

Estimated Recurring

2.50%

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Investment Options Growth Dividend Payout Re-Investment

Dividend Frequency at the Discretion of Trustees

Minimum Investment of Initial Additional Systematic: Rs 1000/Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak Mid-Cap

Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

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

KOTAK Opportunities: Its an open ended scheme whose main features

are as follows.

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

Investment Pattern
Equity & Equity related securities 65% 95%

Benchmark Index
S & P CNX 500

Debt & Money Market Instruments 5% - 35%

Investment Horizon Expenses

1-3 Years

Estimated Recurring

2.50%

Investment Options
Growth Dividend Payout Re-Investment

Dividend Frequency
at the Discretion of Trustees

Minimum Investment of
Initial Additional Systematic: Rs 1000/Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak Mid-Cap

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 Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

The S&P CNX Mid-Cap 500 companies are disaggregated into 72 industry indices viz S&P CNX industry indices. Industry weight ages in the index reflect the industry weight ages in the market. For e.g. if the Bank sector has a 5% weight age in the universe of stocks traded on NSI; banking stocks in the index would also have an approx, representation of 5% in the index.

LIFE STYLE FUND: Its an open ended scheme whose main features are as follows.

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

Investment Pattern
Equity & Equity related securities: Debt & Money Market Instruments: 65% 100% 0% - 30%

Benchmark Index
S & P CNX 500

Investment Horizon Expenses

1- Year & above Page 76 of 118

Estimated Recurring

2.50%

 Investment Options
Growth Dividend Payout Re-Investment

Dividend Frequency
at the Discretion of Trustees

Minimum Investment

Cheques/DD to be drawn in favor

of
Initial Additional Systematic: Rs 1000/Rs 5000/ Rs 1000/ Kotak Life Style

Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

KOTAK TAX SAVER:

whose main features are.

Its an Open - Ended Equity Linked Savings Scheme

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

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 Investment Pattern
Equity & Equity related securities Debt & Money Market Instruments: 80% 100% 0% - 20%

Benchmark Index
S & P CNX 500

Investment Horizon Expenses

3 Years & Above

Estimated Recurring

2.50%

Investment Options
Growth Dividend Payout Dividend Re-Investment

Dividend Frequency
at the Discretion of Trustees

Minimum Investment of
Initial: Additional: Systematic: Rs 500 & in Multiples of 500 Rs 500 & in Multiples of 500 Rs 500 & in Multiples of 500

Cheques/DD to be drawn in favour

Kotak Tax-Saver

Minimum Redemption Size Rs 1000/- or all Units if the amount is less than Rs. 1000/days

Payout Schedule Transaction day + 3 Working

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

Investment Pattern
Equity & Equity related securities: Debt & Money Market Instruments: 65% 100% 0% - 20%

Benchmark Index
S & P CNX 500

Investment Horizon Expenses

1-3 Years

Estimated Recurring

2.50%

Investment Options
Growth Dividend Payout, Re-Investment

Dividend Frequency
at the Discretion of Trustees

Minimum Investment of
Initial Additional Systematic: Rs 1000/Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak Global India

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 Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

CHOWING ARE THE PURE DEBT SCHEMES PROVIDED BY THE KOTAK GROUP

KOTAK INCOME PLUS: Its a Pure Debt Scheme whose main features are as
follows:

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

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

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

Investment Horizon Expenses

More than 1-Years

Estimated Recurring

2.25%

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 Investment Options
Growth Dividend Payout, Re-Investment

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

Minimum Investment of
Initial Additional Systematic: Rs 1000/Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak income Plus

Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 1 Working day.

Explanation: CRISIL is the agency which looks after the benchmarking for the
mutual fund companies.
1. CRISIL Complex Composite Bond Index

2. CRISIL LiquidFEX Liquid Fund Index 3. CRISIL STBEX 4. CRISIL MIPEX - Short Term Bond Index - CRISIL Monthly Income Plan Index

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

Page 81 of 118

Sample of Index Values as of Oct-2007

Enrollment in local colleges, 2005

CRISI L Comp BEX

DATE 01Oct 02Oct 03Oct 04Oct 05Oct 061353.3 5 1353.6 1 1356.1 0 1356.6 2 1356.6 3 1356.8

CRISIL LiquidF EX

CRISIL X

CRISIL

CRISIL STBEX

CRISILDe btHybrid Index 60:40

CRISILDeb tHybrid Index 75:25

BalanCE MIPEX

1337.70

2908.84

1650.29

1354.67

1263.58

1215.

1337.94

2909.03

1650.56

1354.93

1263.73

1215.

1338.36

2963.82

1660.07

1356.40

1278.69

1215.

1338.88

2963.42

1660.51

1356.81

1278.72

1215.48

1339.39

2954.99

1659.43

1357.60

1276.93

1214.68

1339.62

2955.19

1659.69

1357.86

1277.07

1214.86

Page 82 of 118

Oct 07Oct 08Oct

8 1357.1 3 1357.4 6 1340.06 2918.31 1655.46 1358.23 1277.35 1209.20 1339.84 2955.38 1659.95 1358.12 1277.22 1215.03

KOTAK BOND : Its an Open-Ended Debt Scheme whose features are as follows.
Investment Objective The investment objective of the scheme is to create a portfolio of debt & money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt markets.
Investment Pattern To invest in a portfolio of Debt & Money Market Benchmark Index CRISIL Composite Bond Fund

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

Estimated Recurring
KOTAK KOTAK BOND SHORT TERM PLAN : 1 Month &

Expenses
Above PLAN :

KOTAK Bond Deposit & Regular Plan: 1 to 2 Yrs

BOND DEPOSITE : 2.25%

KOTAK BOND Regular : 1.65%

Deposite Regular

Investment Options

Dividend Frequency

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Kotak Bank Deposit: Growth Dividend Quarterly 20th of Payout Dividend Re-Investment Mar/Jun/Sep/Dec Kotak Bank Regular: Growth, Bonus. Dividend Quarterly 20 of
th

Kotak Bank Regular Plan:

Kotak Bank Regular Plan: Mar/Jun/Sep/Dec

Payout, Dividend Re-Investment

Minimum Investment of
Initial: Rs 5000/Kotak Bank Regular: Additional: Systematic: Rs 1000 Rs 1000 Rs 500000/-

Cheques/DD to be drawn in favour

Kotak Bon Kotak Bank Deposit:

Minimum Redemption Size Rs 1000/- or Rs. 100 Units day

Payout Schedule Transaction day + 1 Working

KOTAK BALANCE: Its an Open Ended Balanced Scheme whose features are:

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

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 Investment Pattern
Equity & Equity related securities: 51% 100%

Benchmark Index
CRISIL Balanced Fund Index

Debt & Money Market Instruments:

0% - 49%

Investment Horizon

Estimated Recurring
2.50%

Expenses

More than 1- Year

Investment Options
Growth Dividend Payout, Dividend Re-Investment

Dividend Frequency
Half Yearly 25th Mar/Sep

Minimum Investment of
Initial Additional Systematic: Rs 1000/Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak Balance

Minimum Redemption Size Rs 1000/ - or 100 Units

Payout Schedule Transaction day + 3 Working days

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

Investment Pattern Open-Ended diversified Schemes:

90% 100%

Benchmark Index
S & P CNX NIFTY

Inter Bank Call and/or reverse Repo And /or short term fixed deposits and/or Schemes which invest Predominantly in the Money Market or floating rate securities. : 0% - 10%

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 Investment Horizon

Estimated Recurring
1- 3 Years 2.50%

Expenses

Investment Options
Growth Dividend Payout, Dividend Re-Investment

Dividend Frequency
at the Discretion of Trustees

Minimum Investment of
Initial Additional Systematic: Rs 1000/ Minimum Redemption Size Rs 1000/ - or 100 Units Rs 5000/ Rs 1000/

Cheques/DD to be drawn in favour

Kotak Equity FOF

Payout Schedule Transaction day + 5 Working days

ASSET CLASS PERFORMANCE

2000 2001 2002 2003 2004 2005 2006 2007 2008

Bond Fund 10.8% Liquid Fund 9.3%

Bond Fund 16.8% Liquid Fund 8.4%

Mid Cap Fund 55.4% Gold 24.9%

Mid Cap Fund 158.6% Large Cap Fund 126.6%

Mid Cap Fund 41.1% Large Cap Fund 25.8%

Mid Cap Fund 67.6% Large Cap Fund 61.2%

BSE Sensex 46.8% Mid Cap Fund 39.8%

Mid Cap Fund 74.7% Large Cap Equity 51.6%

Bond Fund 24.8% Bond Fund 8.8%

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Gold - 5.8%

Gold 2.4%

Large Cap Fund 23.6%

BSE Sensex 73.5%

BSE Sensex 116%

BSE Sensex 40.7%

Large Cap Fund 35.6%

BSE Sensex 45.5%

Gold 5.8 %

Large Cap Fund 24.2%

Large Cap Fund -2.4%

Bond Fund 15.4%

Gold 20.1%

Gold 5.4%

Gold 20.4%

Gold 23.2%

Gold 30.2%

Large Cap Fund 50.6%

CHAPTER 5:-

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

RESEARCH METHODOLOGY:
Research Design: Exploratory

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Data Collection instruments: Questionnaire Sampling Design: Purposive Sampling Sample size: 100 Sample Area: NCR Sample Element: Households (Who invest in financial assets) Measurement Instruments: Close ended Questionnaire Exploratory research is carried out to make problem suited to more precise suited to more precise investigation or to frame a working hypothesis from an operational perspective. Exploratory studies help in understanding & assessing the critical issues of problems. It is not used in case where a definite result is desired. However, the study results are used for subsequent research to attain conclusive results for a particular problem situation. Exploratory studies are conducted for three main resons. To Analyze a Problem Situation to Evaluate Alternatives to Discover New Ideas

RESEARCH HYPOTHESIS: If a hypothesized relationship or prediction has to be

tested by scientific methods. It is called Research Hypothesis. A research hypothesis is one that links an independent variable to a dependent variable. It should generally contain one dependent and one independent variable.

METHOD OF DATA COLLECTION: Data can be collected in different ways from

the subject of study. One method is to observe subjects on certain parameters, which is called observation studies. In such studies, the subjects (respondents) by asking them questions through questionnaire. Here the researcher can adopt either method

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based on the study that needs to be conducted. For instance, if research has to be done on the traffic flow at a particular junction, then the observation method is best. On the other hand, if consumer preferences about a new product are to be estimated, then a questionnaire for obtaining consumer responses is the best method.

Research design has been classified in to four subsections they are: 1. Sample selection and size; 2. Sampling procedure; 3. Data collection; 4. Analytical tools SAMPLE SELECTION & SIZE: The first step of research is sample selection,
for which the respondents were consumers in Nanded city. The total consumers covered were 100. The same numbers of Questionnaires were distributed but only 70 fully completed questionnaires were received. Results are based on the response of these 70 respondents.

SAMPLING PROCEDURE : The consumers are selected by the

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

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CHAPTER 6:-

DATA INTERPRETATION

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Do you invest in financial products? a) Yes b) No

Respond 100% yes 0% no

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1) How much % of your income you invest in financial product?

A) Less than 10% than 30%

b) 10% to 20%

c) 20% to 30% d) more

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

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

c) Mutual funds & derivatives

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

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

a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________

Responds are 70% people for less risk, 5% people for high return, 10% person for tax benefit, 10% person for regular return, 5% person for others

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

a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________

Responds are 30% person invest for less risk, 30% person invest for high return, 35% person invest for tax benefit, 3% person invest for regular return, 2% person invest for others

6) If you have invested your money in Mutual Funds & Derivatives,

why? a) Less Risk b) High Return c) Tax benefits d) Regular

Return e) Others _________________

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

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

a) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________

Responds are 0% person invest for less risk, 80% person invest for high return, 7% person invest for tax benefit, 10% person invest for regular return,

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3% person invest for others

8) Have you ever been in loss if you have invested in any of the financial assets? (a) Yes (b) No

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

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9) If Yes, in which following instruments. a) F/D, Loans & Bonds c) Mutual funds & derivatives b) Insurance & ULIPS d) Shares

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

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10) Do you take advice of anybody while investing? a) Yes b) No

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

Demographic Profile
Age Sex Occupation 1) Professor E mail 2) Business 3) Service 4) Others 18 to 25 Male 26 to 33 Female 34 to 41 42 & Above

Thank you for giving your valuable time.

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

OBSERVATION AND ANALYSIS:

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

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

ANALYSIS OF MUTUAL FUNDS: Generally mutual funds are

analyzed on the basis of the risk.

KOTAK MUTUAL FUND

Kotak Tech kotak MNC kotak Global India & kotak Midcap kotak Lifestyle kotak Opportunities kotak 30 and kotak Contra kotak Equity FOF kotak Balance kotak Income Plus Guilt Investment Deposit & Regular kotak kotak Bond kotak Cash Plus kotak Bond STP kotak Flexi Debt kotak Floater LT kotak Floater ST kotak Liquid

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

DEFICIENCY I FOUND IN KOTAK: kotak group provides various services to the

investor but still I feel there is some deficiency on their part. The deficiency that I noticed is:
The group mainly focuses on S & P CNX NIFTY and S &P CNX 500 for Bench

Marketing. Their products and they totally ignore other bases like CNX NIFTY Junior, and Mid - Cap funds for benchmarking its products.
There is a Lack of Sectoral funds like a fund which mainly focuses on natural

resource & power sector or on the Retail sector.

There is a lack of funds which mainly focuses on the international markets as

being provided by BIRLA SUNLIFE. Kotak group is only restricted to domestic markets.
Still kotak group follows odd Trends. They dont have something different in their

offerings like in ING GROUP have recently launched a FUND where investors money are being invested in the market on every day basis. So this provides an opportunity to investor to effectively capitalize on both falling and gaining markets.
Kotak mainly focuses on Debentures (if investment is being made in Debt

instruments) while they totally ignore commodities, inflation linked bonds.

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CHAPTER 7

CONCLUSION

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

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CHAPTER 8

RECOMMENDATION & SUGGESTION

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RECOMENDATIONS:
Kotak should try to overcome their deficiencies and should try to do something different time and again to attract customer. Kotak should try to improve their policy related insurance.
Kotak star plan is kotak smart advantage plan and kotak only enhance it but not

paying attestation on other product which also can help to growing company.
Kotak try to promote their all product.

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CHAPTER 9:-

LIMITATION

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

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CHAPTER 10:-

LITERRATURE REVIEW

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INTRODUCTION TO COMPANY: KOTAK Mahindra is one of Indias leading

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

WEALTH MANAGEMENT: A type of financial service that combines

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

Client Profiling Investment Objective Asset Allocation Strategy Implementation

Generally in following instruments investments are being made on behalf of the investors.
I. II. III. Managed funds Direct Shares Margin Lending

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IV. V.

Mutual Funds ULIP Plans

WEALTH MANAGEMENT BY KOTAK GROUP:

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

ANALYSIS OF SAVINGS ACCOUNTS:

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

ANALYSIS OF CURRENT ACCOUNT:

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

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

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

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

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

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

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REFERANCES

Page 114 of 118

BIBLIOGRAPHY: I have gone through some of the Articles which are:

World Wealth Report 2007 by Capgemini and Merrill Lynch The Journal of Wealth Management, Winter 2007 (Editorial by Jean L.P.Brunel, Editor)

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

2007 Wealth Management Best Practices: A Practical guide by Vicki Morris, North Star and Sonaimuthu N, Infosys Technologies Ltd

Boomers Need Wealth Management Services CU360 Online Research and advice portal. (http://cu360.cuna.org/articles/story.php?doc_id=2180)

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APPENDIX

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QUESTIONNAIRE:1) Do you invest in financial products? b) Yes b) No

2) How much % of your income you invest in financial product? A) Less than 10% than 30% 3) In which financial assets you have invested your saving money? a) F/D, Loans & Bonds b) Insurance & ULIPS d) Shares b) 10% to 20% c) 20% to 30% d) more

c) Mutual funds & derivatives

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

b) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________

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

b) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________

6) If you have invested your money in Mutual Funds & Derivatives,

why? b) Less Risk b) High Return c) Tax benefits d) Regular

Return e) Others _________________

7) If you have invested your money in Shares why? Page 117 of 118

b) Less Risk

b) High Return

c) Tax benefits

d) Regular

Return e) Others _________________ 8) Have you ever been in loss if you have invested in any of the financial assets? (a) Yes (b) No

9) If Yes, in which following instruments. a) F/D, Loans & Bonds c) Mutual funds & derivatives b) Insurance & ULIPS d) Shares

10) Do you take advice of anybody while investing? b) Yes b) No

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