PROJECT REPORT ON

CONSUMER BANKING AND

WEALTH MANAGEMENT

PREPARED BY:
ANANT BHUSHAN
082600024
BBM(e-BANKING & FINANCE)
DEPARTMENT OF COMMERCE
MANIPAL UNIVERSITY
 Acknowledgement
If words are considered to be signs of gratitude then let these
words Convey the very same My sincere gratitude to
INDUSIND BANK for providing me with an opportunity to
work with BANK and giving necessary directions on doing
this project to the best of my abilities.

I am highly indebted to Mr. Devesh Daga., Deputy Manager

and project guide at the bank, who has provided me with the
necessary information and also for the support extended out to
me in the completion of this report and his valuable
suggestion and comments on bringing out this report in the
best way possible.

I am grateful to all faculty members of Department of

Commerce for their guidance and my friends who have helped me
in the successful completion of this project .

Rest all those people who helped me are not only matter of
acknowledgment but also authorized for sharing my success.

ANANT BHUSHAN
Preface

The retail banking environment is rapidly changing ,retail

customer are much more active than they were a decade ago and
are demanding more customized products and services

In few years wealth management has emerged as a tool for

ensuring one’s financial well being. Wealth Management has not
only contributed to the India growth story but has also helped
families tap into the success of Indian Markets. As information and
awareness is rising more and more people are enjoying the benefits
of investments. The main reason the number of investors remains
small is that nine in ten people with incomes in India do not know
that invest avenue exist. But once people are aware of investment
opportunities, the number who decide to invest in mutual funds
increases to as many as one in five people. The trick for converting
a person with no knowledge of mutual funds to a new Mutual Fund
customer is to understand which of the potential investors are more
likely to buy mutual funds and to use the right arguments in the
sales process that customers will accept as important and relevant
to their decision.

This Project gave me a great learning experience and at the same

time it gave me enough scope to implement my analytical ability.
This Project Report is based on market research on the saving and
investment practices of the investors and preferences of the
investors for investment. This Report will help to know about This
project gives an insight about Mutual Fund, its various aspects,
insurances and gold banking. One can have a brief knowledge
about Mutual Funds, gold banking and insurances and its basics
through this Project. This project also helps us to know how
important Relationship Managers are in banking sector.
Table of contents

Chapter 1- Overview of the bank

Chapter 2-Range of Products

Chapter 3-The world of consumer banking

Chapter 4-Wealth Management

Chapter 5-Mutual Fund

Chapter 6-Insurance

Chapter 7-Gold Banking

Chapter 8- Key Findings & Recommendations

Overview of the Bank

IndusInd Bank derives its name and inspiration from the Indus Valley
civilisation - a culture described as 'one of the greatest of the ancient
world' combining a spirit of innovation with sound business and trade
practices.

Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman

and head of the Hinduja Group, conceived the vision of IndusInd Bank -
the first of the new-generation private banks in India - and through
collective contributions from the NRI community towards India's
economic and social development, brought our Bank into being.

The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh,

Honourable Prime Minister of India who was then the country’s Finance
Minister, started with a capital base of Rs.1,000 million (USD 32 million
at the prevailing exchange rate), of which Rs.600 million was raised
through private placement from Indian Residents while the balance
Rs.400 million (USD 13 million) was contributed by Non-Resident
Indians.

Strengths of the bank

• A loyal customer base of nearly 1.8 million that includes,

among others, a number of non-resident Indians (NRIs) and
high-net-worth individuals
• Strong franchise with the corporate sector
• Expertise in Commercial (SME) and Small Business Sectors
• Niche expertise in areas such as NRI business, investment
banking, treasury, capital and commodity markets, risk
management, vehicle financing, etc
• Cross border remittances
 • Salary relationships and dedicated service

• High/highest domestic ratings from the Indian subsidiaries of

S&P, Moody’s and Fitch.
• Only Indian bank with ISO 9001:2000 accreditation for its
entire network of branches.
• Capital adequacy ratio of 12.4% under Basel II guidelines as of
December 31, 2007.

IndusInd Bank is committed to protecting customers’ privacy during

their visits, using the website, availing the products and services vide the
online applications, they recognize their responsibility to keep the
information customers provide to them confidential at all times.

They protect customer’s personal information on the Internet to an

equivalent high standard to that they experience through any other
channels through which bank may interact with them, such as their
branches, cash machines or on the telephone.

The Features of the Privacy Policy:

All Information collected shall only be used to provide the Customer

with the best possible services.

The Customer Account Information is never shared with any external

organization unless the same is necessary to enable IndusInd Bank to
provide services or to enable the compilation of a transaction, credit
reporting, or the same is necessary or required pursuant to applicable
banking norms or pursuant to the terms and conditions applicable to
such Information as agreed to with IndusInd Bank.

Keeping financial information secure is one of their most important

responsibilities. A physical, electronic and procedural safeguard to
protect Customer Information is maintained. Employees are authorized
to access Customer Information for business purposes only. Employees
are bound by a code of ethics that requires confidential treatment of
Customer Information and are subject to disciplinary action if they fail
to follow this code.

IndusInd Bank shares Information to provide customer with superior

services and a range of offers and services available to customer. If
customer desires IndusInd Bank to limit such sharing whereby
customer would not like to be informed of offers available, customer
may contact nearest branch.

The information IndusInd Bank hold about customer is confidential.

IndusInd Bank discloses it outside the IndusInd Bank when:

• given consent by customer

• it is needed by certain reputable third parties involved in running
accounts and/or providing services for you (for example, credit
reference agencies who do credit checks for IndusInd Bank);
• in order to obtain professional advice;
• IndusInd Bank or others need to investigate or prevent crime (e.g.
to fraud prevention agencies);
• the law permits or requires it, or any regulatory or governmental
body requests or requires it, even without customer’s consent, or;
• there is a duty to the public to reveal the information;

IndusInd Bank monitors, records, stores and uses any telephone, email
or other electronic communications with customer for training purposes,
so that they can check any instructions given to them and to improve the
quality of customer service. They monitor network traffic from time to
time for the purposes of backup and problem solving and in order to
ensure that customers are not misusing any of the services provided to
them.
At IndusInd Bank, they value relationship and they at all times strive to
ensure customer privacy

Business Reach

• 183 branches, 147 locations throughout the country

• 336 ATMs
• 410 plus marketing outlets (being converted in phases into
Business Correspondents)
• Representative Offices in Dubai and London

• Strategic Alliances in the UAE and Qatar

 •

The Parent Company-Hinduja Group

 One of India’s premier Transnational conglomerates

 Been in existence for over 90 years
 Present in 10 business sectors
 Present in 32 countries
 Employs over 35,000 personnel
 Privately owned by the Hinduja Family
 Professionally managed & customer / service oriented
 Turnover of the Group is several billion dollars
A New Era

The merger with the Bank in June 2004 of Ashok Leyland Finance Ltd.,
among the largest leasing finance and hire purchase companies in India,
set in motion a process of consolidation through the combined customer
base of the merged entity and its increased geographical penetration.
IndusInd Bank has become one of the fastest-growing banks in the
Indian banking sector today with its branch network expanding from 61
as on March 31, 2004 to 137 as on March 31, 2006 – reflecting an
increase in excess of 125% in 24 months. The Bank has approximately
150 ATMs of its own, and has concluded multilateral arrangements with
other banks with a total network of 15,000 ATM outlets. All the outlets
of the Bank, including its branches and ATMs, are connected via
satellite to its central database that operates on the latest version of
IBM’s AS400-720 series hardware and Midas Kapiti (now, Misys)
software.

IndusInd Bank’s broad lines of business include Corporate Banking,

Retail Banking, Treasury and Foreign Exchange, Investment Banking,
Capital Markets, Non-Resident Indian (NRI) / High Networth Individual
(HNI) Banking, and (through a subsidiary) Information Technology.

IndusInd Bank provides multi-channel facilities including ATMs, Net

Banking, Mobile Banking, Phone Banking, Multi-city Banking and
International Debit Cards. It was one of the first banks to become a part
of RBI’s Real Time Gross Settlement (RTGS) system. It has
implemented an enterprise-wide risk management system encompassing
global best practices in the area of Risk Management, with help from
KPMG. This has enabled the Bank to remain in the forefront in
complying with the requirements of Basel II. It is the first bank in India
to receive ISO 9001:2000 certification for its Corporate Office and its
entire network of branches.

With its roots in Indian tradition and emphasis on customer care,

IndusInd Bank’s service philosophy is well reflected in the
communication tagline “We Care… Dil Se”.

Mission

To position IndusInd Bank limited as a Top 3 performer in the new

private bank space in 3 years measured by the 3 parameters of
Profitability, Productivity and Efficiency.

BOARD OF DIRECTORS

Mr. R. Seshasayee Managing Director, Ashok Leyland Ltd.

Mr. R. Sundararaman Former Dy Managing Director of SBI

Mr. T. Anantha Chartered Accountant and Expert in Agriculture and Rural

Narayanan Economy

Dr. T. T. Ram Mohan Professor, Finance & Accounting, IIM, Ahmedabad

Mrs. Pallavi Shroff Practising Lawyer

M.D. of Ipca Laboratories Ltd., having practical experience

Mr. Premchand Godha
of SSI & Agriculture

Mr. Ajay Hinduja Businessman

Mr. Sushil Chandra

I.A.S (Retired), Advocate
Tripathi

Mr. Ashok Kini Former Managing Director of SBI

Mr. Romesh Sobti Managing Director & CEO

Core Executive Team
Mr. Romesh Sobti- Managing Director & CEO
Mr. Sumant Kathpalia -Head Consumer Banking Division
Mr. Paul Abraham-Chief Operating Officer
Mr. Suhail Chander- Head Corporate & Commercial Banking
Mr. K S Sridhar-Chief Risk Officer
Mr. J Moses Harding- Head-Global Markets Group
Mr. Ramesh Ganesan- Head Transaction Banking
Mr. S V Zaregaonkar -Chief Financial Officer and Investor Relations
Mr. Suresh N Pai- Head Corporate Services and Communication
Mr. S V Parthasarathy -Head Consumer Finance
Mr. Zubin Mody -Head Human Resources

Business Achievements of past 5 year

2008-09

Total business crossed Rs. 37,800 crores

Net Profit up by 98%. to Rs. 148.34 crores
Net Interest Income up by 53% to Rs. 459.03 crores Fee and Other
Income up by 53% to Rs. 456.24 crores
Net NPA at 1.14 % as compared to 2.27% as on March 31, 2008.
Net worth moved to Rs. 1429 crores Earning per share (Basic)
increased to Rs 4.28 from Rs 2.35
Capital Adequacy Ratio stood at 12.33 % as against the minimum
regulatory norm of 9%.
Highest A1+ rating for its Certificates of Deposit by ICRA and the
highest P1+ rating for its Fixed Deposits and Certificates of Deposit by
CRISIL.
Dividend declared 12% up from 6%.
Bagged The Economic Times Acer Intel Smart Workplace Award, in the
Financial Services category.
Mandated as Settlement Banker for Tea auctions at Kolkata, Siliguri,
Coonoor and Guwati.

2007-08

Business Turnover touched a figure of Rs 31833.16 crores

Network of Branches increased to 180 along with 183 off-site ATMS,
thus having presence in over 147 geographical locations spread over 28
States including Union Territories
Highest A1+ rating for its Certificates of Deposits by ICRA and the
highest P1+ rating for its FDs by CRISIL
A strategic tie-up with Religare Securities for offering a value-added 3-
in-1 savings accounts-linked package to customers – comprising a
savings bank account, a depository account, and an Internet trading
account
Signed an agreement with National Multi Commodity Exchange Ltd.
(NMCE) to become their Clearing Bank; It already had such agreements
with MCX and NCDEX
Strategic partnership with Cholamandalam MS for bancassurance
Bestowed with the prestigious 'Corporate Excellence' award by Amity
International Business School during its 10th International Business
Summit (INBUSH) 2008. The award was presented by H.E. Mr.
Salohoddin Nasriddinov, Ambassador, Embassy of Tajikistan
Received recognition in the form of a Certificate of Nomination for the
Avaya Global Connect Customer Responsiveness Awards. The
participants for the award were evaluated on various parameters such as
Responsiveness, Intelligence Generation, Intelligence Dissemination,
Customer Education, Top management Emphasis, Innovation and
learning
Received recognition by BSE and NASSCOM Foundation for the Best
Corporate Social Responsibility Practice Category
Featured in The Standard & Poor ESG India index which provided the
investors with exposure to liquid and tradable index of 50 of the best
performing stocks in the Indian market as measured by environmental,
social, and governance(ESG) parameters

2006-07

Net worth crossed a milestone figure of Rs. 1000 crores at Rs. 1056
crores
Successful completion of GDR issue of Rs. 145.96 crores
Business Trunover touched a figure of Rs 28.700 crores registering a
growth of 18.14% over the previous year.
Network of Branches increased to 170 along with 99 off-site ATMs,
thus having presence in over 141 geographical locations spread over 27
States including Union Territories.
Highest A1+ rating for its Certificates of Deposits by ICRA and Highest
P1+ rating for its FDs by CRISIL.
Bestowed with the prestigious IBA Award for technology
implementation (STP).
Added a number of new business and product lines, viz the launch of
Indus GOLD and Indus Gift Card, E-Remittance facility, tie-up with
number of Banks for ATM usage, tie-up with Religare Securities to
extend Portfolio Management services and Bancassurance tie-up with
Aviva Life Insurance

2005-06

Ranked among the top ten banks in the country in the ET500 list of
leading companies in India.
Rated as 'The best among the top 10 private-sector banks' in a survey
covering 79 banks conducted by Business Standard in its November
2005 issue. Ranked sixth in the overall list, the Bank was also identified
he 'Most Efficient Bank' among all banks in India.
Bestowed 'India’s Most Productive Bank' status by a Business Today-
KPMG Survey
Presented 'Outstanding Achiever of the Year 2005- Corporate' (Runner
up- Banking Technology Award) by IBA, Finacle (from Infosys) and
TFCI (Trade Fair and Conference International).
Honoured with the 'Award for Corporate social Responsibility (CSR)' at
the India Brand summit 2005, Mumbai

2004-05

Business Turnover crossed Rs. 22000 crores

Network grew to 115 branches, 9 extension counters and 195 ATMs,
spread over 95 geographical locations
Bestowed with highest ratings for deposits from reputed rating agencies
Highest rating 'P1+' - on Fixed Deposits from CRISIL
Highest rating 'P1+' - on Certificate of Deposits from CRISIL
Highest rating 'F1+' - on Certificate of Deposits from Fitch Ratings India
Pvt. Ltd.
Bank's second International Representative office opened in London.
100th Branch opened at Dadar, Mumbai.
Signed an Agreement with NCDEX as clearing banker.
Launched International Mahila Card.

2003-04

Total business volume touches Rs. 19,000 crores.

Completes 10 years of banking excellence.
Ashok Leyland Finance merges with the Bank.
The first Indian Commercial Bank to achieve certification for its 'Entire
Network of Branches' under the ISO 9001:2000 Quality Management
System.
Launch of Debit Card- International Power Card.
Bank’s first International Representative Office in Dubai.

One of the first banks to go live on RTGS platform.

Correspondent Banking

Our Bank has a full-fledged Correspondent Banking Dept.. Bank has

correspondent banking relationships with over 232 banks spread across
the globe to facilitate cross-border trade and payment related services.
The services offered include a wide variety of fee-based corporate
products and services like documentary credits, stand by letter of credit,
guarantees, remittances, acceptance of collections etc. The Bank takes
care of specialized project/activity funding in foreign currency.
 IndusInd Bank Launches New Brand Campaign

Mumbai, May 14, 2009: The first ever brand campaign from IndusInd
Bank hit the airwaves last week. The campaign idea is to showcase the
difference in experience of banking with IndusInd Bank; a bank that has
something different to offer as compared to other banks. The fact that
things have changed at IndusInd Bank and it offers unique products &
services to attract and fulfill client requirements. Along with the
campaign, the Bank also introduced its new brand tag line ‘Makes you
feel richer’.
The Ad film has its narrative in Hindi, where the father is thinking about
what banks have to offer and how IndusInd Bank is different. ‘Socha tha
Bank hai, they are all the same, par paya kuch alag’. The film introduces
two new innovative products from the bank’s personal banking stable –
Indus Money and Indus Young Saver. It also talks about Unlimited Free
ATM access and Flexi-shopping in Debit Card. The film intends to
reposition IndusInd Bank as a smart, energetic and young brand; A bank
for the rising Indian imbibing the values of confidence, progression and
dynamism.
The Ad film was conceived by RK Swamy BBDO, New Delhi and shot
by Mehul M. Atha of Morse Code Films, Mumbai. Duration of the film
is 30 seconds with 20 second and 10 second edits. It is presently running
across 15 channels. The film also has five language versions – Tamil,
Telugu, Malayalam, Kanada and Bengali.

IndusInd Bank ties-up with World Gold Council

 Announcement / Banking October 23, 2008,

IndusInd Bank signed a co-partner agreement with the World Gold

Council (WGC) today for joint promotion of packaged and certified gold
coins and ingots in India.

IndusInd Bank introduced sale of imported 24 carat pure Swiss Gold

with a view to providing complete financial and investment solutions to
its customers and non-customers, under the brand name “Suvarna
Mudra. The gold coins are available in denominations of 5gm, 10gm and
50gm across all 180 branches of the Bank.

India is the largest consumer of gold in the world but with it comes
many challenges such as the unorganized nature of the industry,
accessibility issues by mass Indians, reach of good quality products etc.
At the World Gold Council, our endeavor has always been to support
Strategic Partners like the IndusInd Bank who have a vision to promote
good quality gold products at a retail level and thereby help organize the
market” said Ajay Mitra, Managing Director, World Gold Council –
India.
Range of Products
Corporate & Commercial Banking
 Key Products : Term Loans, Working Capital Loans, Trade
Finance, Loan Against Securities, Payment Products, Supply Chain
Management, Syndications
Consumer Banking
 Deposit Products :
Savings Accounts, Current Accounts, Fixed Deposits
 Other Products :
Debit Cards, Depository Services, Mutual Fund Sales,
Insurance Sales,Corporate Salary Account, NRI Services
 Loan Products :
Commercial Vehicles, Two and Three Wheelers, Auto Loans,
Used Vehicles Construction Equipment, Multi-utility Vehicles,
Personal Loans

Few Tailor Made product for XXXXX

Salary Account:
 Zero Balance Account
 Zero Balance reimbursement Account
 FREE International Gold Debit card cum ATM Card (Details to
follow, first year free)
 FREE unlimited number of cash withdrawal facility on all Visa,
Visa Electron & Plus ATM’s which are over 23500 ATMs in
India and over 1 million ATMs across the world
 Free Cheque / Documents pick up from your home or office once
a day
 Cheque drop box at your office locations
 Regular Helpdesk to address any query
 Free Electronic Fund Transfer
 Free Bill Payment to various Billers across the country. E.g.
Hutch, Airtel & LIC Premiums
 FREE personalized payable at par Cheque books
 FREE Internet Banking
 FREE Mobile Alerts
 Free Demand Draft (upto Rs.25000/- and one draft per day)
 24 Hours Bank by Phone
 Wealth Services:
 FREE Investment Advisory Service
 Dedicated Personal Banker to advise on the Wealth Portfolio
 Facility to apply for all leading Mutual fund IPO’s without
any additional charge
 Regular Portfolio statement to keep track of investments
 Special Offers on Insurance products- Life & Non-Life
  Expert Advisory on Insurance Needs
 For XXXXXXX employees, IndusInd would offer the
powerful benefits of ‘Indus Comfort’, our comprehensive
financial services solution. The account offers an array of
value added services, besides ensuring that all banking needs
are met. The unmatched salary account product offering
comes with ‘no minimum balance’ requirement. We have a
strong team of consultants to offer Investment & Insurance
related advisory.

Indus Gold Plus is a unique Current Account

At IndusInd Bank values time and money. Commensurate to this, their
deposit products are tailor-made to get you maximum mileage and make
banking a better experience. Indus Gold Plus is a unique Current
Account that comes with innovative solutions for added convenience.
With numerous time-saving and cost-effective features:

SAVE MONEY IndusInd Bank Business owner accounts

1. Unlimited free payable at par cheque book, which allows
making of payments at over 147 locations
2. Free Pay Orders/Demand Drafts up to Rs 150 lacs per month on
over 147 IndusInd bank locations
3. Added payment reach at over 500 locations through their
Partner banks, one can avail demand drafts free of cost up to Rs
20 lacs per month on the partner bank
 4. Unlimited free NEFT and RTGS fund Transfers or collections
- no need of drafts to send payments specified locations, just fill
the form available at nearest branch for the fund transfer
5. Free collection of instruments payable on IndusInd bank
locations – With Indus Gold Plus , one can avail free collection of
cheque, whether payable on local or outstation location or even
deposited at non home location for local collection
6. True Anywhere Banking – Open an Indus Prestige account with
any branch and walk into an IndusInd Bank anywhere in India to
draw cash, transfer funds and more.
7. Nil Balance EEFC account, Indus Prestige offers EEFC account
in 3 leading currencies – USD, Euro and Pound Sterling at Nil
balance requirements.
8. Trade Services / Bank Guarantee facilities / LC facilities – Avail
the widest range of trade products. Their commitment to product
development and customer service helps to get the best possible
results.
9. Attractive rates on Foreign Exchange and Trade Services –
there are especial desks in all branches for speedy foreign
exchange and trade transactions at attractive rates.

CONVENIENCE OFFERED

1. Cash management services, with Indus Collect this offers time

bound guaranteed credit on local collections at over 250 locations
and over outstation 1000 locations. Which will not only offers a
customized MIS , making financial reconciliation easy but also let
clients manage their cash flows better at economical costs.
2. Strong Doorstep Banking, benefits like cash delivery, cheque
pick/ups, draft delivery, eliminating the necessity of visiting the
bank and saving valuable time.
3. Free NetBanking provides the ease of operating the account from
home / office at convenience using Corporate Banking module.
 a. Transfer funds between clients own accounts or any other
account* within IndusInd Bank
b. Place request for a demand draft or cheque book
c. Stop payment on your cheque
4. Contact Center –Banks contact centre remains in touch with bank
account, even beyond the banking hours. One can pay his bills,
order a chequebook or transfer funds across his accounts
through phone, and also know his last transactions/account balance.

5. Wider ATM Access with International Debit Card - access the

IndusInd Bank ATMs for virtually all banking transactions.
All the above benefits come at an average monthly balance requirement
of Rs 1 lac.

The world of consumer banking

Banking as a whole is undergoing a change. A larger option for the

consumer is getting translated into a larger demand for financial
products and customization of services is fast becoming the norm than a
competitive advantage. With the Retail/Consumer banking sector
expected to grow at a rate of 30% players are focusing more and more
on the Retail and are waking up to the potential of this sector of banking.
At the same time, the banking sector as a whole is seeing structural
changes in regulatory frameworks and securitization and stringent NPA
norms expected to be in place by 20010 means the faster one adapts to
these changing dynamics, the faster is one
expected to gain the advantage.
Consumer banking refers to the wide range of financial
products and services that are targeted directly at
consumer needs. Other than saving and fixed-time
deposits, overdraft and loan facilities, consumer needs
can also include facilities for personal investments as well
as a range of wealth management services. Other
common products and services include credit cards,
home/car loans, investment & unit trusts, insurance,
priority and private banking.
For the banking industry, one of the key challenges
nowadays is in attracting and retaining people with the
right talents. And consumer banking is one particular
sector of the industry that is always on the lookout for
suitable recruits.

Each customer possesses unique and varying needs, and

they are never alone in having to figure out the
complicated financial jargons and highly technical numbers that
surround most financial products. So qualifications aside, people who
work in consumer banking need to be skillful enough to build rapport
with both current and potential customers.
Relationship Management (RM) for Consumer Banking
To grow their business and solidify customer relationships, banks and
financial institutions wanted to understand customer needs and
preferences – and respond with the appropriate products and services.
Banks took a customer-centric approach that recognizes customer
segmentation and enables the bank to get to know its customers.
Responsibilities of a RM

• Revenue generation and building customer relationships.

• Managing a portfolio of customers.

• Determine customers’ needs and other appropriate investment

solutions to meet their risks-and-returns expectation.

• Marketing financial services to customers.

• Growing customer base through referral and marketing programmes

while maintaining a high standard of service quality and compliance

Objectives of a RM

• Growth of book size

• Deepening of books
• Maintaining relationships/referrals
• Cross selling of third party products
Wealth management

It is an investment advisory discipline that incorporates financial

planning, investment portfolio management and a number of aggregated
financial services. High net worth individuals, small business owners
and families who desire the assistance of a credentialed financial
advisory specialist call upon wealth managers to coordinate retail
banking, estate planning, legal resources, tax professionals and
investment management. Wealth managers can be independent certified
financial planners, MBAs, CFAs or any credentialed professional money
manager who works to enhance the income, growth and tax favored
treatment of long-term investors. One must already have accumulated a
significant amount of wealth for wealth management strategies to be
effective.

"The fallout of the events of 2008 has produced a high level of

skepticism and distrust among investors, and they will demand greater
transparency from their providers to understand what they own, the
value of their investments and associated risks". For this reason wealth/
relationship managers must be prepared to respond to a greater need by
clients to understand, access, and communicate with advisers regarding
their current relationship as well as the products and services that may
satisfy future needs. Moreover, advisors must have sufficient
information, from objective sources, regarding all products and services
owned by their clients to answer inquiries regarding performance and
degree of risk-at the client, portfolio and individual security levels.

Today Wealth Management advisors must have access to an objective

content repository. This repository must contain a current and readily
available profile of the clients holdings.
Wealth Management Solutions at IndusInd:

IndusInd provides a holistic view of a client’s current financial situation.

They integrate goal-based financial planning, advanced portfolio
management and asset allocation, allowing us to make dependable
recommendations and successfully manage valued and trusted
relationships.

Wealth management and financial planning requires the consideration of

numerous aspects of wealth accumulation, preservation and transfer and
their ramifications on client and his family. Through their
comprehensive and strategic approach, they assist them in the
development of integrated financial strategies that are consistent with
their personal goals. Depending on what suits client’s needs best, an
asset allocated investment portfolio for them is built, which could
consist of Mutual funds, Equity IPO, Insurance,Bonds,Gold,etc.

Investments

IndusInd Bank offers personalized investment options to help to achieve

financial objectives. Solutions are tailor-made to suit each individual's
requirements. They offer a host of financial instruments that includes
Fixed Deposits, Mutual Funds, Bonds and Insurance products.

Portfolio management

Portfolio management is one of the financial service industry’s primary

product offerings and generates considerable revenue. Banks are
significant providers of investment management services, and for many
it is a key strategic line of business. IndusInd Bank provide investment
management services to clients with differing characteristics, investment
needs, and risk tolerance.
Investment Planning
Based on clients investment goal, wealth requirements, investment
horizon and risk profile, wealth managers construct a suitable asset
allocation plan for them. During this exercise, wealth managers evaluate
and realign existing investments as per the suggested asset allocation, in
case required by the client.

Portfolio Construction
From wide range of investment avenues, wealth managers construct
appropriate solutions to implement investment plan and evolve a tailor-
made portfolio for specific requirements. This would involve execution
of investments in debt, equity, structured products or alternative asset
classes as per the suggested asset allocation.

Portfolio Maintenance
Wealth managers monitor investments and periodically suggest
rebalancing in the portfolio for maintaining the asset allocation or
aligning portfolio to changes in macro-economic factors that might
affect investments.

Portfolio Review
As investment preferences or financial goals change over a period of
time, wealth managers review portfolio periodically to discuss and
implement any changes in asset allocation or portfolio strategy. All with
a view to keeping portfolio healthy at all times.

Major Reports to be taken into consideration before investing

Asset allocation report

Mark to market report
Portfolio returns report
Tax report
Summary report
Underlying asset report
NAV and Valuation report
Performance Benchmarks

From the asset allocation guidelines, an appropriate performance

benchmark can be selected as a passive representation of a portfolio’s
investment objectives, strategy, and style. Performance benchmarks are
used to make risk and return comparisons. Useful and effective
benchmarks are:

· Unambiguous. The names and weights of investments

comprising the benchmark are clearly delineated.

· Investable. The option is available to forego active management

and simply hold the benchmark.

· Measurable. The benchmark’s return can be readily determined

on a reasonably frequent basis.

· Appropriate. The benchmark is consistent with the portfolio’s

investment strategy or the portfolio manager’s investment style or
biases.

· Reflective of current investment opinions. The manager has

current investment knowledge of the benchmark.

· Specified in advance. The benchmark is constructed prior to the

start of the performance evaluation period.

Selecting an appropriate benchmark is not an easy task, particularly for

accounts with many different asset categories and beneficiaries. Each
type of asset, and even each sub-sector, may have its own separate
benchmark. This process reinforces the importance of having a clearly
written investment policy with specific goals and objectives to improve
a manager’s ability to establish appropriate performance benchmarks.
Subsequent changes to selected benchmarks must be carefully
considered and fully documented by the portfolio manager.
Market indexes are viewed as independent representations of the market
and are publicly available. Market indexes can also be combined to
reflect a specific portfolio strategy or asset allocation structure.
Problems with market indexes include the following:
· The index may not accurately reflect a portfolio’s strategy or style;
· Indexes implicitly assume cost-free transactions;
· Most indexes assume that income is reinvested; and
· Investors cannot invest in some market indexes.
Mutual Funds

Getting Started
Before explaining what is mutual fund, it’s very important to know the
area in which mutual funds works, the basic understanding of stocks and
bonds.
Stocks
Stocks represent shares of ownership in a public company. Examples of
public companies include Reliance, ONGC and Infosys. Stocks are
considered to be the most common owned investment traded on the
market.
Bonds

Bonds are basically the money which you lend to the government or a
company, and in return you can receive interest on your invested
amount, which is back over predetermined amounts of time. Bonds are
considered to be the most common lending investment traded on the
market.
There are many other types of investments other than stocks and bonds
(including annuities, real estate, and precious metals), but the majority of
mutual funds invest in stocks and/or bonds.
 Working of Mutual Fund

Regulatory Authorities

To protect the interest of the investors, SEBI formulates policies and

regulates the mutual funds. It notified regulations in 1993 (fully revised
in 1996) and issues guidelines from time to time. MF either promoted by
public or by private sector entities including one promoted by foreign
entities is governed by these Regulations.

SEBI approved Asset Management Company (AMC) manages the funds

by making investments in various types of securities. Custodian,
registered with SEBI, holds the securities of various schemes of the fund
in its custody.

According to SEBI Regulations, two thirds of the directors of Trustee

Company or board of trustees must be independent.
The Association of Mutual Funds in India (AMFI) reassures the
investors in units of mutual funds that the mutual funds function within
the strict regulatory framework. Its objective is to increase public
awareness of the mutual fund industry.

AMFI also is engaged in upgrading professional standards and in

promoting best industry practices in diverse areas such as valuation,
disclosure, transparency etc.
A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then
invested in capital market instruments such as shares, debentures and
other securities.

A mutual fund is just the connecting bridge or a financial intermediary

that allows a group of investors to pool their money together with a
predetermined investment objective. The mutual fund will have a fund
manager who is responsible for investing the gathered money into
specific securities (stocks or bonds). When you invest in a mutual fund,
you are buying units or portions of the mutual fund and thus on investing
becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as

compare to others they are very cost efficient and also easy to invest in,
thus by pooling money together in a mutual fund, investors can purchase
stocks or bonds with much lower trading costs than if they tried to do it
on their own. But the biggest advantage to mutual funds is
diversification, by minimizing risk & maximizing returns.

The income earned, reflected by higher prices (NAV) of the fund,

through these investments are shared by its unit holders in proportion to
the number of units owned by them.

Presently IndusInd is distributing schemes of 30 Mutual Funds which

are as follows:

NAME OF THE MUTUAL FUND

ABN AMRO Mutual Fund

Benchmark Mutual Fund
Birla Sunlife Mutual Fund
BOB Mutual Fund
Canbank Mutual Fund
DBS Chola Mutual Fund
Deutsche Mutual Fund
DSP ML Mutual Fund
Fidelity Mutual Fund
Franklin Templeton Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ING Mutual Fund
JM Mutual Fund
Kotak Mutual Fund
LIC Mutual Fund
Optimix Mutual Fund
Principal Mutual Fund
Prudential ICICI Mutual Fund
Reliance Mutual Fund
Sahara Mutual Fund
SBI Mutual Fund
Standard Chartered Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund
Taurus Mutual Fund
UTI Mutual Fund
AGI Global Mutual Fund
Lotus India Mutual Fund
J P Morgan Mutual Fund

Indian Financial Markets have been in an evolving phase in the last

decade. Lots of new financial instruments have been tested and
introduced. Investors now have a plethora of choices available to them.
Earlier select few instruments were available to them like Fixed
Deposits, NSCs, shares, etc. to invest their surpluses. Now, Investors can
choose from a wide range of instruments starting from Fixed Deposits at
one end to Mutual Funds, Derivatives and Commodities at the other end.
Investments in Mutual Fund

Mutual Funds over the years have gained immensely in their popularity.
Apart from the many advantages that investing in mutual funds provide
like diversification, professional management, the ease of investment
process has proved to be a major enabling factor. However, with the
introduction of innovative products, the world of mutual funds
nowadays has a lot to offer to its investors. With the introduction of
diverse options, investors needs to choose a mutual fund that meets his
risk acceptance and his risk capacity levels and has similar investment
objectives as the investor.

With the plethora of schemes available in the Indian markets, an

investors needs to evaluate and consider various factors before making
an investment decision. Since not everyone has the time or inclination to
invest and do the analysis himself, the job is best left to a professional.
Since Indian economy is no more a closed market, and has started
integrating with the world markets, external factors which are complex
in nature affect us too. Factors such as an increase in short-term US
interest rates, the hike in crude prices, or any major happening in Asian
market have a deep impact on the Indian stock market. Although it is not
possible for an individual investor to understand Indian companies and
investing in such an environment, the process can become fairly time
consuming. Mutual funds (whose fund managers are paid to understand
these issues and whose Asset Management Company invests in research)
provide an option of investing without getting lost in the complexities.

Evaluating past performance, look for stability and although past

performance is no guarantee of future performance, it is a useful way to
assess how well or badly a fund has performed in comparison to its
stated objectives and peer group. A good way to do this would be to
identify the five best performing funds (within your selected investment
objectives) over various periods, say 3 months, 6 months, one year, two
years and three years. Shortlist funds that appear in the top 5 in each of
these time horizons as they would have thus demonstrated their ability to
be not only good but also, consistent performers.

An investor can choose the fund on various criteria according to his

investment objective, to name a few:

• Thorough analysis of fund performance of schemes over the last

few years managed by the fund house and its consistent return in
the volatile market.
• The fund house should be professional, with efficient management
and administration.
• The corpus the fund is holding in its scheme over the period of
time.
• Proper adequacies of disclosures have to seen and also make a note
of any hidden charges carried by them.
• The price at which you can enter/exit (i.e. entry load / exit load)
the scheme and its impact on overall return.

Mutual Funds : A Smart way of Growing Wealth

Mutual Funds, as an investment vehicle, has found acceptance from all

cross-sections of investors. Mutual Funds offer a wide range of choices
to Investors. From the most Conservative to most Aggressive – Mutual
Funds have a solution for every investor. The range of choices offered
and transparent structure of Mutual Funds have helped the industry to
grow rapidly in the last decade. Mutual Funds today manage more than
Rs. 3 lac crores of investor’s money.

Mutual Fund Advantages

• Professional Management
• Diversification
• Low Costs
• Liquidity
• Transparency
 • Flexibility & Convenience
• Choice of schemes
• Tax benefits
• Well regulated

Categories of Mutual Funds

Overview of existing schemes existed in mutual fund category:

BY STRUCTURE

• 1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all

through the year. These do not have a fixed maturity. Investors can
conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.

• 2. Close - Ended Schemes:

A closed-end fund has a stipulated maturity period which generally

ranging from 3 to 15 years. The fund is open for subscription only
during a specified period. Investors can invest in the scheme at the
time of the initial public issue and thereafter they can buy or sell
the units of the scheme on the stock exchanges where they are
listed. In order to provide an exit route to the investors, some
close-ended funds give an option of selling back the units to the
Mutual Fund through periodic repurchase at NAV related prices.
SEBI Regulations stipulate that at least one of the two exit routes is
provided to the investor.
• 3. Interval Schemes:

Interval Schemes are that scheme, which combines the features of

open-ended and close-ended schemes. The units may be traded on the
stock exchange or may be open for sale or redemption during pre-
determined intervals at NAV related prices.

• The risk return trade-off indicates that if investor is willing to take

higher risk then correspondingly he can expect higher returns and
vise versa if he pertains to lower risk instruments, which would be
satisfied by lower returns. For example, if an investors opt for
bank FD, which provide moderate return with minimal risk. But as
he moves ahead to invest in capital protected funds and the profit-
bonds that give out more return which is slightly higher as
compared to the bank deposits but the risk involved also increases
in the same proportion.
 • Thus investors choose mutual funds as their primary means of
investing, as Mutual funds provide professional management,
diversification, convenience and liquidity. That doesn’t mean
mutual fund investments risk free. This is because the money that
is pooled in are not invested only in debts funds which are less
riskier but are also invested in the stock markets which involves a
higher risk but can expect higher returns. Hedge fund involves a
very high risk since it is mostly traded in the derivatives market
which is considered very volatile.

Mutual Funds can broadly be classified into three categories:

• Equity Funds
• Balanced Funds and
• Debt Funds

Overview of existing schemes existed in mutual fund category: BY

NATURE
1. Equity fund:
These funds invest a maximum part of their corpus into equities
holdings. The structure of the fund may vary different for different
schemes and the fund manager’s outlook on different stocks. The Equity
Funds are sub-classified depending upon their investment objective, as
follows:

• Diversified Equity Funds

• Mid-Cap Funds
• Sector Specific Funds
• Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity
funds rank high on the risk-return matrix.
2. Debt funds:

The objective of these Funds is to invest in debt papers. Government

authorities, private companies, banks and financial institutions are some
of the major issuers of debt papers. By investing in debt instruments,
these funds ensure low risk and provide stable income to the investors.
Debt funds are further classified as:

• Gilt Funds: Invest their corpus in securities issued by

Government, popularly known as Government of India debt
papers. These Funds carry zero Default risk but are associated with
Interest Rate risk. These schemes are safer as they invest in papers
backed by Government.

• Income Funds: Invest a major portion into various debt

instruments such as bonds, corporate debentures and Government
securities.

• MIPs: Invests maximum of their total corpus in debt instruments

while they take minimum exposure in equities. It gets benefit of
both equity and debt market. These scheme ranks slightly high on
the risk-return matrix when compared with other debt schemes.

• Short Term Plans (STPs): Meant for investment horizon for three
to six months. These funds primarily invest in short term papers
like Certificate of Deposits (CDs) and Commercial Papers (CPs).
Some portion of the corpus is also invested in corporate
debentures.

• Liquid Funds: Also known as Money Market Schemes, These

funds provides easy liquidity and preservation of capital. These
schemes invest in short-term instruments like Treasury Bills, inter-
bank call money market, CPs and CDs. These funds are meant for
short-term cash management of corporate houses and are meant for
an investment horizon of 1day to 3 months. These schemes rank
 low on risk-return matrix and are considered to be the safest
amongst all categories of mutual funds.

3. Balanced funds:

As the name suggest they, are a mix of both equity and debt funds. They
invest in both equities and fixed income securities, which are in line with
pre-defined investment objective of the scheme. These schemes aim to
provide investors with the best of both the worlds. Equity part provides
growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of
investment parameter viz,
Each category of funds is backed by an investment philosophy, which is
pre-defined in the objectives of the fund. The investor can align his own
investment needs with the funds objective and invest accordingly.

By investment objective:

• Growth Schemes: Growth Schemes are also known as equity

schemes. The aim of these schemes is to provide capital
appreciation over medium to long term. These schemes normally
invest a major part of their fund in equities and are willing to bear
short-term decline in value for possible future appreciation.

• Income Schemes:Income Schemes are also known as debt

schemes. The aim of these schemes is to provide regular and
steady income to investors. These schemes generally invest in
fixed income securities such as bonds and corporate debentures.
Capital appreciation in such schemes may be limited.

• Balanced Schemes: Balanced Schemes aim to provide both

growth and income by periodically distributing a part of the
income and capital gains they earn. These schemes invest in both
shares and fixed income securities, in the proportion indicated in
their offer documents (normally 50:50).
 • Money Market Schemes: Money Market Schemes aim to provide
easy liquidity, preservation of capital and moderate income. These
schemes generally invest in safer, short-term instruments, such as
treasury bills, certificates of deposit, commercial paper and inter-
bank call money.

Other schemes

• Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act,
contributions made to any Equity Linked Savings Scheme (ELSS) are
eligible for rebate.

• Index Schemes:

Index schemes attempt to replicate the performance of a particular index

such as the BSE Sensex or the NSE 50. The portfolio of these schemes
will consist of only those stocks that constitute the index. The
percentage of each stock to the total holding will be identical to the
stocks index weightage. And hence, the returns from such schemes
would be more or less equivalent to those of the Index.

• Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those
sectors or industries as specified in the offer documents. e.g.
Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG),
Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may
give higher returns, they are more risky compared to diversified funds.
Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time.

Types of returns

There are three ways, where the total returns provided by mutual funds
can be enjoyed by investors:

• Income is earned from dividends on stocks and interest on bonds.

A fund pays out nearly all income it receives over the year to fund
owners in the form of a distribution.

• If the fund sells securities that have increased in price, the fund has
a capital gain. Most funds also pass on these gains to investors in a
distribution.

• If fund holdings increase in price but are not sold by the fund
manager, the fund's shares increase in price. You can then sell your
mutual fund shares for a profit. Funds will also usually give you a
choice either to receive a check for distributions or to reinvest the
earnings and get more shares.

Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros
and cons of investments in mutual fund.

Advantages of Investing Mutual Funds:

1. Professional Management - The basic advantage of funds is that,

they are professional managed, by well qualified professional. Investors
purchase funds because they do not have the time or the expertise to
manage their own portfolio. A mutual fund is considered to be relatively
less expensive way to make and monitor their investments.
2. Diversification - Purchasing units in a mutual fund instead of buying
individual stocks or bonds, the investors risk is spread out and
minimized up to certain extent. The idea behind diversification is to
invest in a large number of assets so that a loss in any particular
investment is minimized by gains in others.
3. Economies of Scale - Mutual fund buy and sell large amounts of
securities at a time, thus help to reducing transaction costs, and help to
bring down the average cost of the unit for their investors.
4. Liquidity - Just like an individual stock, mutual fund also allows
investors to liquidate their holdings as and when they want.
5. Simplicity - Investments in mutual fund is considered to be easy,
compare to other available instruments in the market, and the minimum
investment is small. Most AMC also have automatic purchase plans
whereby as little as Rs. 2000, where SIP start with just Rs.50 per month
basis.

Disadvantages of Investing Mutual Funds:

1. Professional Management- Some funds doesn’t perform in neither

the market, as their management is not dynamic enough to explore the
available opportunity in the market, thus many investors debate over
whether or not the so-called professionals are any better than mutual
fund or investor him self, for picking up stocks.
2. Costs – The biggest source of AMC income, is generally from the
entry & exit load which they charge from an investors, at the time of
purchase. The mutual fund industries are thus charging extra cost under
layers of jargon.
3. Dilution - Because funds have small holdings across different
companies, high returns from a few investments often don't make much
difference on the overall return. Dilution is also the result of a successful
fund getting too big. When money pours into funds that have had strong
success, the manager often has trouble finding a good investment for all
the new money.
4. Taxes - when making decisions about your money, fund managers
don't consider your personal tax situation. For example, when a fund
manager sells a security, a capital-gain tax is triggered, which affects
how profitable the individual is from the sale. It might have been more
advantageous for the individual to defer the capital gains liability.

Diversification

Diversification is nothing but spreading out money across available or

different types of investments. By choosing to diversify respective
investment holdings reduces risk tremendously up to certain extent.

The most basic level of diversification is to buy multiple stocks rather

than just one stock. Mutual funds are set up to buy many stocks. Beyond
that, you can diversify even more by purchasing different kinds of
stocks, then adding bonds, then international, and so on. It could take
you weeks to buy all these investments, but if you purchased a few
mutual funds you could be done in a few hours because mutual funds
automatically diversify in a predetermined category of investments (i.e. -
growth companies, emerging or mid size companies, low-grade
corporate bonds, etc).

Few of the MFs in the market:

DSP BLACK ROCK TOP 100 FUND

An open ended scheme which is seeking to generate capital appreciation
from a portfolio of securities from the 100 largest corporate bodies listed
in India. Last 1 year performance – 15.62%
Investment in the above scheme – INR 2 lacs
KOTAK 30
Primarily into banking, holds a portfolio where in 30-40% of its funds
are parked in the banking sector, the rest 5-10% in metal and other
related sectors. While the other funds are parked in the top 30 securities
listed in India.
Last 1 year performance – 11.64%
Investment in the above scheme – INR 4 lacs
ICICI Prudential Dynamic Plan
The above funds generally invest in debt and other money market
instruments and hence it is little bit on the conservative side. They
generally invest in the bond market and government securities.
Last 1 year performance – 10-11%
Investment in the above scheme – INR 2 lacs
HDFC MIP Plan
The primary objective of the above Scheme is to generate regular returns
through investments primarily in debt and money market instruments.
The secondary objective of the scheme is to generate long-term capital
appreciation by investing a portion of the Scheme’s assets in equity and
equity related instruments.
Debt – 85%
Equity – 15%
Last 1 year performance – 11.12%
Investment in the above scheme – INR 2 lacs
Factsheets of few funds
ICRA 3 YEAR-
4
HDFC TOP 200 - GROWTH MFR MARCH 2009

To generate long term capital appreciation by investing in a portfolio of equities and equity linked
instruments drawn from the BSE 200 Index.
Type of Scheme Fund Manager Anand Laddha
Open Ended

SIP
Nature Equity

STP
Option Growth
SWP
Inception Date Sep 10, 1996
Expense ratio(%) 1.89
Face Value (Rs/Unit) 10
Portfolio Turnover
81.41
3314.58 as on May 29, Ratio(%)
Fund Size in Rs. Cr.
2009

Last Divdend Declared 25 % as on Mar 28, 2000

Minimum Investment (Rs) 5000

Purchase Redemptions Daily

NAV Calculation Daily

Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than
Entry Load
50000000 then Entry load is 0%.

If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit
Exit Load
load is 1%. and Amount greater than 50000000 then Exit load is 0%.

ICRA 3 YEAR-
ICICI PRUDENTIAL DYNAMIC PLAN - GROWTH 4
MFR MARCH 2009
Seeks to generate capital appreciation by actively investing in equity and equity related securities. For
defensive considerations, the Scheme may invest in debt, money market instruments and derivatives.

Type of Scheme Fund Manager Mrinal Singh

Open Ended

SIP
Nature
Equity

STP
Option Growth
SWP
Inception Date Oct 18, 2002
Expense ratio(%) 1.96
Face Value (Rs/Unit) 10
Portfolio Turnover 168
Fund Size in Rs. Cr. 1461.43 as on May 29, Ratio(%)
2009

Last Divdend Declared NA

Minimum Investment (Rs) 5000

Purchase Redemptions Daily

NAV Calculation Daily

Entry Load Amount Bet. 0 to 49999999 then Entry load is 2.25%.

If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is
Exit Load
1%.
ICICI PRUDENTIAL INFRASTRUCTURE FUND - ICRA 3 YEAR-
5
GROWTH MFR MARCH 2009

To provide capital appreciation and income distribution to Fund

unitholders by investing predominantly
Manager Mrinal Singh in
Type of Scheme Openof Ended
equity/equity related securities the companies belonging to infrastructure development and the balance in
debt securities and money market instruments including call money.
SIP
Nature Equity

STP
Option Growth
SWP
Inception Date Aug 16, 2005
Expense ratio(%) 1.83
Face Value (Rs/Unit) 10
Portfolio Turnover
145
3750.05 as on May 29, Ratio(%)
Fund Size in Rs. Cr.
2009

Last Divdend Declared NA

Minimum Investment (Rs) 5000

Purchase Redemptions Daily

NAV Calculation Daily

Entry Load Amount Bet. 0 to 49999999 then Entry load is 2.25%.

If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is
Exit Load
1%.
 ICRA 3 YEAR-
5
KOTAK 30 - GROWTH MFR MARCH 2009

The investment objective of the scheme is to generate capitalFundappreciation

Manager from a portfolio of predominantly
Emmanuel Elango
Type of Scheme Open Ended
equity and equity related securities. The portfolio will generally comprise of equity and equity related
instruments of around 30companies which may go up to 39 companies, and that these companies may or
SIP
may not be the same which constitute the BSE Sensitive Index or NSE Fifty (S&P CNX Nifty) Index. Review
Nature Equity
and rebalancing will be conducted if the investment in companies exceed above 39.
STP
Option Growth
SWP
Inception Date Dec 22, 1998
Expense ratio(%) 2.15
Face Value (Rs/Unit) 10
Portfolio Turnover
103.36
897.26 as on May 29, Ratio(%)
Fund Size in Rs. Cr.
2009

Last Divdend Declared 10 % as on Dec 31, 2001

Minimum Investment (Rs) 5000

Purchase Redemptions Daily

 NAV Calculation Daily

Amount greater than 50000000 then Entry load is 0%. and Amount Bet. 0 to
Entry Load 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry
load is 0%.

If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is
2%. If redeemed bet. 1 Year to 2 Year; and Amount Bet. 0 to 49999999 then Exit
Exit Load load is 1%. If redeemed after 2 Year; and Amount Bet. 0 to 49999999 then Exit load
is 0%. If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to 49999999
then Exit load is 1%.

Insurance

Insurance in India has its history dating back until 1818, when Oriental
Life Insurance Company was started by Anita Bhavsar in Kolkata to
cater to the needs of European community.

Top Insurance Providers

LIC

Metlife

Kotak

Tata AIG

Max New York

Aviva
 ICICI Prudential

IndusInd Bank offers customised insurance solutions to meet life and

health risk protection, long term savings and retirement planning needs
in association with

Cholamandalam MS General Insurance Company Limited

Few products are:

1. INDUS ACCIPROTECT

CUSTOMER A/C DEBIT Rs. 500

PREMIUM PER DA Rs. 1.40

• Sum Insured – Rs.5 lacs

• Cover for 1 year
• 18 yrs to 69 yrs entry age
• Maximum Renewable age 70 yrs
• PTD – Rs. 5 lacs
• PPD – Rs. 2.50 lacs
• Accidental Hospitalisation Reimbursement –Rs. 50000
(death/ptd/ppd related only )
• Education Benefit – Rs. 25000
• Open for all CASA
• Auto renewal facility

2.INDUS ACCI PLUS

CUSTOMER A/C DEBIT Rs. 2000

PREMIUM PER DAY Rs. 1.80

• Sum Insured – Rs.5 lacs

 • 50% cover to spouse
• Two people covered for 3 yrs
• 18 yrs to 66 yrs entry age
• Maximum Renewable age 70 yrs
• PTD – Rs. 5 lacs for self and 50% to relative
• PPD – Rs. 2.50 lacs for self and 50% to relative
• Accidental Hospitalisation Reimbursement (death/ptd/ppd related
only ) – Rs. 50000 for self
• Education Benefit – Rs. 25000 for self

3.INDUS HEALTH PROTECT

CUSTOMER A/C DEBIT Rs.3500

PREMIUM PER DAY Rs. 9.60

• Sum Insured – Rs. 1 lac

• Cover for 1 individual
• 90 days to 69 yrs entry age
• Maximum Renewable age upto 70 yrs
rd
• Pre existing illness covered from 3 year
• Pre hospitalisation 30 days
• Post hospitalisation 60 days
• Covers accidental hospitalisation

Aviva Life Insurance (Life Insurance)

The concept of Insurance means to keep the insured in the same

financial position as he was before the occurrence of the unforeseen and
undesirable event. Life Insurance specifically is a tool to maintain the
same standard of living for the family even in the absence of the person
who is the primary bread earner. We at IndusInd Bank would suggest
you solutions, which would meet your future goals after analysing your
needs. Needs ranging from pure insurance to cover loan liability, child’s
education or marriage needs or just simply saving tax can all be fulfilled
through us.

The life insurance plans entitle the policy-holder to avail tax benefit
under Sec 80 C. Premium paid towards mediclaim is allowed as a
deduction under Sec 80 D.

Aviva LifeShield Plus, a pure term plan which ensures

comprehensive protection at a nominal cost through:
payment of sum assured to the family in case of the
unfortunate death of the policy-holder; with a provision of
double the sum assured in case of the accidental death,
immediate payment of the rider sum assured in the case
of critical illness or permanent total disability, while life
cover continues till the policy term.

Other popular insurance products in the market

ICICI Prudential Life’s SecureSave, an innovative wealth

creation product that aims to grow the value of the
investor’s savings, over time, with an assurance of a
minimum guaranteed maturity amount.

This twin benefit unit linked product enables the investor

to enjoy the power of long term equity investment
without worrying about the downside risks associated
with equity markets. SecureSave provides a guaranteed
maturity benefit upto 150 per cent of the sum of all the
investment premiums paid. The additional advantage of
SecureSave includes a limited premium payment term,
while enjoying the advantage of a long term insurance
cover and wealth creation.

The minimum entry age for the policy is 18 - 45 years

while maximum maturity age is 65 years. The minimum
premium is Rs.20,000 per annum for a term of 10 years
and Rs. 15,000 per annum for terms of 15 and 20 years.

Premium paid for the policy will be eligible for tax benefit
under section 80C. Any benefit amount received under
this policy will be eligible for the tax benefit under section
10(10D), as per the Income Tax Act, 1961.

Comparison of two very popular insurance

products

Name: J L Depura
Age: 30 Years
Saving
s: 5,000,000
Aviva Life Dhan Vridhhi LIC Jeevan Varsha
Guarante
Money Guarantee Money ed
Year Premium GB Back d Amount Premium GB Back Amount
 1 668,450 350,000 826,500 350,000

2 668,450 700,000 826,500 700,000

1,050,00 1,050,0 500,00
3 668,450 0 826,500 00 0
1,400,00 1,400,0
4 668,450 0 826,500 00
1,750,00 1,000,00 1,750,0
5 668,450 0 0 826,500 00
2,100,00 2,100,0 1,000,0
6 668,450 0 826,500 00 00
2,450,00 2,450,0
7 668,450 0 826,500 00
2,800,00 2,800,0
8 668,450 0 826,500 00
3,150,00 3,150,0 1,500,0
9 668,450 0 826,500 00 00
3,500,00 1,000,00 3,500,0
10 668,450 0 0 00
3,850,00 3,850,0
11 0 00
4,200,00 4,200,0
12 0 00 6,200,000
4,550,00
13 0
4,900,00
14 0
5,250,00
15 0 8,250,000

Tot 10,250, 7,438,5 9,200,

al 6,684,500 000 00 000

GOLD BANKING

Thought to be one of the first known metals, gold has been coveted
throughout history for its beauty, scarcity, malleability, and uncanny
resistance to rust and corrosion. Centuries ago, gold's unique
combination of properties -- its sun-like color, its soft hardness and
especially its imperviousness to decay -- imbued it with magical
associations in the eyes of many. Because of these unique properties,
gold has traditionally been the currency of choice for much of the
world's population. The value of gold has transcended all national,
political, and cultural borders, to become a desired asset. It in the form
of coins and bars has attracted investments across various cultures for
centuries.

According to bankers active in the gold business, many new banks are in
the process of entering gold banking over and above the 14 banks and
four government-nominated agencies designated to import gold. The
latest entrants to gold banking include new-generation private banks
such as Yes Bank and Kotak Mahindra Bank. Commerzbank and UBS
are among the foreign banks active in supplying gold to the domestic
market. Bankers expect the two foreign banks to step up gold banking
since both are planning to set up offices in India. Under the existing
government policy, authorised dealers (banks) and government-
nominated agencies are permitted to import gold for selling to the retail
sector. Bankers said the demand for gold was not only for consumption,
but also for investment. Investment in gold is picking up as financial
markets across the globe are highly volatile following concerns over the
subprime market and fears of an appreciation of the yen against the
dollar. The Union government, in consultation with the RB), has
liberalised the policy for importing gold. Under the liberalised norms,
authorised dealers are allowed to import gold, silver and platinum for
sale to exporters manufacturing gold ornaments and to resident
consumers. Besides banks and government-nominated agencies, no other
entities are authorised to import gold for selling either to exporters or in
the retail market.

Bulls versus bears

Since April 2001 the gold price has more than tripled in value against
the US dollar, prompting speculation that the long secular bear market
(or the Great Commodities Depression) has ended and a bull market has
returned. A World Gold Council report released on February 18, 2009
showed physical gold demand rose sharply in the second half of 2008.
Identifiable investment demand for gold, which includes ETFs
(exchange-traded funds), bars, and coins, was up 64 percent in 2008
over the year before.

In the last century, major economic crises (such as the Great Depression,
World War II, the first and second oil crisis) lowered the Dow/Gold
ratio, an indicator of how bad a recession is and whether the outlook is
deteriorating or improving, to a value well below 4. The ratio fell on
February 18, 2009 to below 8. During these difficult times, investors
tried to preserve their assets by investing in precious metals, most
notably gold and silver.

India is the largest consumer of gold in the world but with it comes
many challenges such as the unorganized nature of the industry,
accessibility issues by mass Indians, reach of good quality products etc.
At the World Gold Council, our endeavor has always been to support
Strategic Partners like the IndusInd Bank who have a vision to promote
good quality gold products at a retail level and thereby help organize the
market” said Ajay Mitra, Managing Director, World Gold Council –
India.
Government of India has liberalised the policy on Bullion trading and
permitted Authorised Dealers to import gold/silver/platinum for sale to
NRIs, exporters manufacturing gold ornaments, SIL holders and
residents. Reserve Bank of India has permitted IndusInd Bank to import
gold, silver and platinum. IndusInd branches at Ahmedabad
(Ellisbridge), Bangalore (M.G.Road), Chennai (Nungambakkam),
Coimbatore (Avinashi Road), Jaipur (Church Road, Off M.I.Road),
Kochi (Kakkanad), Kolkata (Park Street), Lucknow (Lalbagh), Mumbai
(Opera House), New Delhi (Barakhamba Road) and Secunderabad
(Begumpet) are designated for importing gold on consignment basis to
cater to the need of Gold traders, jewellery manufacturers – exporters,
and domestic consumers.

Suvarna Mudra – A range of 999.9 pure gold coins

Attractively priced gold coins (5gm and 10gm) and ingot (50 gm)
Magnificently designed product, presented in Tamperproof Assay
Certified Certicard
Highest purity – 999.9
Available at 165 branches across the country
• Can be purchased by cash (upto Rs. 50,000), debit to account
(IndusInd customers) or against Payorder /Demand Draft. In case
of DD/PO, delivery will be affected only after receipt of clear
funds.
• Can be purchased by non-customers too.
Discount available for bulk purchases
Other Major players in Gold banking

Mohur Gold Coins/Bars

Axis Bank sales Mohur Gold coins/bars in the purest form!

Made in Switzerland, Mohur Gold coins/bars carry the Assay

certification of being 24 carat, 99.99% pure!

It comes in a specialized packaging that is tamper proof so that its purity

is preserved.

Available in 5 gms, 8 gms, 10 gms, 20 gms & 50 gms, it is on offer in

select branches of Axis Bank.
HDFC Bank presents Mudra, an offering worth its weight in gold. Mudra
is a 24 Carat, 99.99% pure gold bar that you can purchase for
investment or gifting Gold continues to be one asset that appreciates
steadily. HDFC Bank now offers Pure Gold bars imported from
Switzerland with an Assay certification, signifying the highest level of
purity as per international standards.

Pure and Reliable

Mudra is great value for money. These 24 K Gold Bars are made in
Switzerland and come with an Assay certification, signifying the
highest level of purity as per international standards.

Convenience
Mudra Gold Bars are currently available in 2.5, 5 g, 10 g, 20g and 50 g
denominations. The Gold Bars are presented in tamper-proof certicard
packs.

5g 10g 50g Heart Shaped

ICICI Bank with its ‘Pure Gold’ offer attempts to bridge the gap
between the need of the customers for buying gold and availability of an
organized avenue to satisfy that need, by taking care of the two key
components – Reliability and Convenience.

Reliability

24 Carat ICICI Bank Pure Gold is imported from Switzerland. This

Gold carries a 99.99% Assay Certification, signifying highest level of
purity, as per international standards.
Convenience

ICICI Bank Pure Gold is competitively priced based on daily prices in

the international bullion market. Currently, gold is available in 2.5g, 5g,
8g, 20g and 50g categories, subsequently other denominations will also
be introduced.

ICICI Bank Pure Gold is available through select branches of ICICI

Bank

Key findings at INDUSIND BANK

 Customers are satisfied with the services rendered by the bank.

  Bank provides additional services towards it prime customers to
retain them.

 People working in this department are hard working and with small
workforce the work is completed on time.

 All major Corporate Bodies are client of IndusInd Bank.

 Bank could seek better customer deals

Recommendation for the bank:-

 Looking at the growth taking place, IndusInd Bank can target more
customers by developing Online Services.

 New specialist applications can be developed.

 Superior customer service vs. competitors.

 Response time can be lowered with effective service.