(GOLDEN EMBOSSING)Market Scoping and Analysis of Financial Investment & Loan Products

A PROJECT REPORTSubmitted BySarfaraz Mohammed Zubair Holy

UNDER THE GUIDANCE OFJAYADEEP MANJESHWAR

In partial fulfillment for the award of the degree ofMMS

Anjuman-I-IslamsAllana Institute of Management StudiesMumbai 400 001

July 2013

Market Scoping and Analysis of Financial Investment & Loan Products

July 2013

Declaration

This is to declare that the study presented by me to Anjuman-I-Islams Allana Institute of Management Studies, in part completion of the MMS under the title Market Scoping and Analysis of Financial Investment & Loan Products had been done under the guidance of Prof. Jayadeep Manjeshwar.

Sarfaraz Mohammed Zubair Holy

Certificate

This is to certify that the study presented by Sarfaraz Mohammed Zubair Holy to the Anjuman-I-Islams Allana Institute of Management Studies, in part completion of the MMS under the title Market Scoping and Analysis of Financial Investment & Loan Products has been done under the guidance of Prof. Jayadeep Manjeshwar.

The project is in the nature of original work that has not so far been submitted for any program of Anjuman-I-Islams Allana Institute of Management Studies or any other University / Institute. References of work and related sources of information have been given at the end of the project.

(Project Guide) (Director)

Acknowledgements

I would like to express my sincere gratitude to my project guide Prof. Jayadeep Manjeshwar for giving me the opportunity to work on this topic. It would never be possible for us to take this project to this level without his innovative ideas and his relentless support and encouragement.

Sarfaraz Mohammed Zubair HolyA - 15

INDEX

INDIA INFOLINE FINANCE LTD

INTRODUCTIONIIFL was founded in 1995 by Mr.Nirmal Jain(Chairman and Managing Director) as an independent business research and information provider. It gradually evolved into a financial servicessolutionprovider. IIFL has a network of 3000 business locations spread over more than 500 cities and towns across India.IIFL is listed on theBombay Stock Exchange(BSE) and theNational Stock Exchange of India(NSE) for securities trading; with MCX, NCDEX and DGCX for commodities trading; and with CDSL and NSDL as depository participants.IIFL is registered as a Category I merchant banker and is a SEBI registered portfolio manager.IIFL is a one-stop financial services shop, most respected for quality of its advice, personalised service and cutting-edge technology. They have come a long way since their inception and made a mark in the industry. The IIFL group, comprising the holding company, India Infoline Ltd and its subsidiaries, is one of leading players in the Indian Financial Services Space.IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and Derivatives, Commodities, Wealth Management, Asset Management, Insurance, Fixed Deposit, Investment Banking, Loans(Gold, Home, Mortgage, Commercial Vehicle). IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the First Indian Brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business.IIFL has been awarded the Best Broker, India by Finance Asia and the Most Improved Brokerage, India in the Asia Money Polls. India Infoline was also adjudged as Fastest Growing Equity Broking House-Large Firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of Web and a must read for investors in Asia. IIFLs research is available not just over the internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian Brokers.

Board of Directors

Mr. Nirmal Jain Chairman, India Infoline Ltd.

Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His professional track record is equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan Lever, he handled a variety of responsibilities, including export and trading in agro-commodities. He contributed immensely towards the rapid and profitable growth of Hindustan Levers commodity export business, which was then the nations as well as the Companys top priority.He founded Probity Research and Services Pvt. Ltd. (later re-christened India Infoline) in 1995; perhaps the first independent equity research Company in India. His work set new standards for equity research in India. Mr. Jain was one of the first entrepreneurs in India to seize the internet opportunity, with the launch of www.indiainfoline.com in 1999. Under his leadership, India Infoline not only steered through the dotcom bust and one of the worst stock market downtrends but also grew from strength to strength.

Mr. R. VenkataramanManaging Director , India Infoline Ltd.

Mr. R Venkataraman, Co-Promoter and Managing Director of India Infoline Ltd, is a B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined the India Infoline Board in July 1999. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of US, BZW and Taib Capital Corporation Limited. He was also the Assistant Vice President with G E Capital Services India Limited in their private equity division, possessing a varied experience of more than 19 years in the financial services sector.

Others to name are:Mr. Nilesh Vikamsey - Independent Director , India Infoline Ltd.Mr. Kranti Sinha - Independent Director , India Infoline Ltd.Mr. A. K. Purwar - Independent Director , India Infoline Ltd.Mr. Sunil Kaul - Independent Director , India Infoline Ltd.

Core Management Team

Bharat ParajiaNipun GoelMD, IIFL (Asia) Pte Ltd.President, Investment BankingPratima RamDhruv JainCEO, Credit & FinanceChief Financial Officer

Karan Bhagat Mukesh Kumar SinghMD, IIFL Wealth Management Ltd.President, Insurance

H. NemkumarPrasanth PrabhakaranPresident, Institutional EquitiesPresident, Retail Broking

Aniruddha DangeR. MohanPresident, Institutional EquitiesChief Compliance Officer

Vasudev JagannathNarendra JainPresident, Institutional EquitiesChief Operating Officer

Pallab Mukherji President, Human Resource

IIFL VisionTo become the Most Respected Company in the financial services space in IndiaIIFL Values GIFTS

Growth IIFL believe in setting challenging targets and achieving them. Once IIFL have set target for any business, they work aggressively to achieve the same.

IIFL has grown from a search firm in 1995 to a leading financial powerhouse in less than a decade. From research, now the company provides the entire range of services including Institutional Broking, Investment Banking, Wealth Management Services, Life Insurance Distribution, Credit and Loans and Gold Loans. In the last five years IIFL has grown at a compounded annual rate of 30%.

Today, the company has one of the widest networks across the country with more than 3000 business locations spread over more than 500 cities and towns across India facilitating smooth acquisition and servicing of a large customer base. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and its branches. Its International footprints cover Singapore, Dubai, Sri Lanka, USA and Europe.

Integrity

At IIFL they believe all employees to implement things which are legally morally and ethically correct Integrity is the cornerstone on which business is built. No short cuts compliance is necessary for business to grow. A cardinal rule no compromises on ethics and any wrong act like even fudging a travel bill will mean termination.

Fairness

IIFL give all their people equal opportunities. Ideas / suggestion is always heard by management irrespective of the hierarchy.

Merit is the sole determinant in the career growth of an IIFL employee. The appraisal process in IIFL is transparent with the employee being evaluated on clearly defined parameters. There are internal job postings which are posted at regular intervals. IIFL always prefer to fill in vacancies by internal promotions and only then recruits from external source are considered.

Transparency

At IIFL most of the information is available on intranet IWIN (India Infoline Web based Information Network) via circulars and policies. Employees can also directly communicate with the top management via the IWIN Q&A (Question & Answer) feature.

Service

Customer service is the backbone of financial services. We believe in acquiring customers, retaining them and keeping them happy. The essence of good customer service is in forming a relationship with customers for life.

CSR Initiatives by IIFL

IIFL organizes many activities as a part of its corporate social responsibility initiative. Employees participate as volunteer at these events.

Some of IIFLs CSR initiatives are listed below FLAME Financial Literacy Agenda for Mass EmpowermentIIFLs initiative FLAME, Financial Literacy Agenda for Mass Empowerment, was launched a year ago. Since then, IIFLs financial literacy campaign gathered momentum and has covered tens of thousands of investors. The initiative has also covered teenage school students, underprivileged women living in slum areas, and physically challenged people across the country. The initiative has taken a multi-pronged approach, spreading financial literacy through newspaper advertisements, literacy workshops, books and publications, a financial literacy help-line, the FLAME portal, and social media channels.

IIFL regularly conducts eye donations camps, medical camps and blood donation camps. Active participation of employees is encouraged in running the whole process.

IIFL BUSINESSES

1. Broking Retail One of the leading brokerage houses in the nation with options to invest in Equity, Commodity and Currency. Institutional High Quality Research and block placement capabilities.

2. Wealth Management Advisory IIFL are on the leading Indian Players in Wealth Management and having Assets under Advisory above 200bn.

3. Financial Product Distribution Insurance Leading non-banking distributor of Life Insurance Mutual Funds and other savings products.

4. Investment Banking Primary expertise is Equity Capital Markets with a view to leverage institutional and retail distribution capabilities.

5. AMC Successfully launched own Mutual Fund with NIFTY ETF and IIFL FMP.

6. Credit and Finance Mortgage LAS Healthcare Financing Gold LoansGoldGlory of gold is unique. The precious yellow metal is celebrated as Emperor of metals. Some people compare this metal with the Almighty God. Gold is called as Swarnam, Aparanji, Chinna, Sona, Pon, Thangam, Bangaru in various Indian languages. Pure gold is called as Fine Gold in English.Gold is taken out from the earth, naturally with silver & cooper. South Africa is the major supplier of gold(50% of gold). Only in Australia gold is mined in pure state of 99.65% naturally. India is the top most user of gold in the world. India is consuming 800 tons of gold per annum approximately.In India gold is mined in Kolar&Hatti in Karnataka state. But recently the Kolar mines were closed, because the administrative & executing expenses were higher than the gold.Gold is a very soft metal we can mould the gold into a very thin foil & stretch it into a thin wire. Gold is a best conductor of heat & electricity. If the gold is put in water or sea even for hundred years it wont get rusted. Gold will not react with single chemical or any acid. But it will dissolve only in Aquaregia, a mixture of nitric acid & hydrochloric acid.Gold is mostly available in South Africa, USA, Mexico, Canada, Brazil, Russia, China & Australia in large amount. Gold is used in various fields such as electronics, communications, technology, medical field & in jewellery. Gold is utilised in minting coins as alloy metal.Now a days every countrys currency is based on the reserve of the gold in that Government. USA, Canada, UK, Australia, China & South Africa govts are economically well off because of their gold stock.

Basic Features of Gold

Colour:YellowSymbol:Au (Aurum)Atomic No.:79Atomic Wt.:196.96Melting temp.:1064 degree CBoiling temp.:2970 degree CDensity:19.36 gm/cu.cm

Weighing Units1 Gram:1000 m.gm1 Sovereign:8 gm1 Troy ounce:31.104 gm1 Tola:11.664 gm10 Tola (Biscuit):116.640 gm

Carat & KaratPurity of gold is measured in terms of Carat in U.K. and as Karat in U.S.A.100% purity is not available, because sometimes other metal particles may be available while Refining. So pure gold is denoted as 24 Karat or 99.99% Gold.

ISO Standards of Gold Purity

KaratPercentage (%)

2499.99

2291.60

2187.50

1875.00

1458.50

937.50

CaratGenerally Karat denotes the purity of Gold and Carat denotes the weight of the Gems and Diamonds.CaratWeight

1 Carat0.200gm (or) 200mg

1 Carat100 Cents

1 Carat0.002gm (or) 2mg

Checking the quality of Gold through Touch Stone

Before using the touch stone, it should be cleaned & some drops of coconut oil have to be applied over the surface evenly.

While checking the gold in touch stone, the rubbing should be done deeply & repeatedly rubbing in the same place 8 to 10 times. The rubbing length should not exceed 2cms.

For knowing the quality of gold, we have to consider 3 points in rubbing.a) Hardnessb) Blisterc) Colour

While rubbing the gold, if the rubbing seems to be soft, it shows high percentage of gold (88% to 91.60%).Where rubbing seems to be hard, it may be below 83% purity.

When rubbing gold, if blister are found more it may be high percentage & it may look like dim

When rubbing gold, if blister are not found, it may be low percentage & it may look like bright.

Then we have to find the colour code of the rubbing.

With these points, we may come to a conclusion of nearly knowing the percentage of quality. But for confirming the percentage of gold, we have to use the nitric acid & sodium chloride (salt).

If we rub metal other than gold, while applying nitric acid, the rubbing will disappear quickly.

If we rub the gold of 50% & below, while applying nitric acid, the rubbing will not disappear quickly. Only colour will change to reddish. After applying salt, the rubbing will disappear & lustre will form in that place.

Appraising of Jewels for LoanFor apprising the gold jewels we have to consider below points.1. Gold or not gold.

2. Weight. (Total wt.)

3. Quality. (Skin %)

4. Less in weight for dust, stones, enamels, beats, shellac weight. (Gross wt)

5. Less in skin % for solder. (Melting %)

6. Appraisal value. (Value of pure gold) = G. wt. * Melting % * Pure Gold rate.

7. Bank value. (Loan amount) Gross wt. * As per Scheme Rate / gm.

Types of Jewels

I. Casting Jewels:Coins, Bangles, Rings, Lockets, Necklace, Bracelet & Stud drops.

II. Filigree Jewels:All types of Chains, Necklace, long necklace, Bangles, Rings, lockets, Stud drops, Nose pins, Jimki, Bracelets, Watch, Watch chain, Coin harum, Mango harum, Ottiyanam, vanki and other variety of jewels.

III. Open Setting Stone Jewels:Necklace, Long necklace, Bangles, Rings, Lockets, Stud drops, Nose pins, Jimki, Bracelets, Watch chain, Coin harum, Mango harum, Ottiyanam, Vanki, and other variety of jewels.

IV. Closed Setting Stone Jewels:Necklace, Harum, Bangles, Rings, Lockets, Stud drops, Nose pins, Jimki, Bracelets, Watch, Watch chain, Coin harum, Mango harum, Ottiyanam, Vanki, and other variety of jewels.

Customer Service

7cs of Customer Excellence1.Customer KYC:KYC means Know Your Customer. There are two methods and reason for KYC. Compliance Requirement As per the current regulations, one needs to confirm that the information and proofs provided by the customer are genuine and correct. Service Requirement The best way to sell a product is to offer the customer something that he needs. To know that one should know the customer. For e.g. If during interaction the customer tells you that he is living in a rented apartment. You can pose the next question whether he is looking to buy a house in the near future? A positive response to this question can make him a good candidate for a home loan.

2.Competition:How often do you come across a customer who tells you that your charges are high compared to broker or this facility is available with broker. Or broker always provides me this much credit etc. Hence it becomes imperative that you as a relationship manager keep a track of competition products and services. Quite often you will find that if another broker is offering a different product then he is missing out on some feature which your product holds. Use this strength of your product to convince the customer.Never ever badmouth any other company in customers presence. It reflects your lack of faith in your own product. There might be instances wherein you really find that we can improve our current offerings by adding a certain feature to existing product. In such scenario, please communicate your suggestions to the respective product head. IIFL believe that in these dynamic times there is always room for improvements.

3.Communication:What you wish to communicate is as important as how you communicate it. There are various modes of communication available like physical meeting, emails, smss etc. It is important to understand the importance and urgency level of the message that you need to get through. Every customer likes to feel special, so when you are sending across a mail to a customer, dont send bulk mails. There is a specific team for sending bulk mails. To create an impact send properly addressed mails with greetings and objectives, if you want to communicate something very important dont just send a mail, call the customer if he is not available then send across a message. Meetings should be done when you want to introduce yourself to the customer as his RM, exchange some physical material and if you are amongst the chosen few who the customer has invited for some function/gathering.

4.Care:Suppose you were to meet Amitabh Bachchan at his residence, would you not take care to dress well, prepare yourself with questions that he might ask or you would want to ask. Similarly one should start treating their customer also as Amitabh Bachchan, because he is not only inviting you to be a part of his circle but entrusting you with his hard earned money. Meeting Amitabh Bachchan might not change your life but meeting the right customer just might and you never know who the right customer is.

5. Competence:There is absolutely no alternative to competence wherein you are dealing in the financial industry. There is a constant need to keep yourself updated in current events, markets, your organizational product and process as well as customers portfolio. This will not only give you an edge but mould the customer to in still his faith in you.It is important to understand that one does not gain competence overnight. It requires a continuous ongoing effort and the will to implement your learning.

6. Complaints:A customer complaints either because he has genuinely suffered a setback due to a mismanagement from our end or because he feels that he has suffered a setback due to a mismanagement from our end. In both the circumstances it is important to listen to the customer, ask him time for investigation and not commit except the TAT you will require to come back to him/her.Convey your regret, if needed one can apologize for the inconvenience caused but any kind of over commitment can have legal repercussions. The best way to handle this would be to keep the customer informed of any update that is happening with his case and always take the customers call.

7. Checks:Check and Double Check. This approach will help you minimise mistakes and ensure that you give complete and correct picture to your customer. There can be no margin of error while dealing with clients money and financials. This is a huge responsibility which we take over when the customer signs in with us.

What is gold loan?

Gold Loan:Gold Loan is defined as a form of debt financing whereby a potential gold producer borrows gold from a lending institution, sells the gold on the open market, uses the cash for mine development, then pays back the gold from actual mine production. Gold loans had less appeal in the 1990s as mining companies were offered other increasingly sophisticated financial instruments, such as forwards and options, by the bullion banks.Gold Loan or Loan against Gold is the easiest and quickest way for servicing financial needs. To avail a gold loan, all you need to do is pledge your gold ornaments with us and we would provide you with a loan amount as per the market value of your gold. Unlike other loans, gold loan does not require you to provide any income or salary proof. Moreover, it has comparatively lower interest rates, requires lesser documentation, hence is processed in lesser time.IIFL provide maximum loan against your gold at lowest interest rates. IIFL have a strong presence Pan India and have serviced a large number of customers in a very short span. IIFL offer different types of schemes as per your requirement and convenience.

Features of IIFL Loan Loan amount ranges from min Rs 5,000 to max Rs 10,00,000. Tenor for loans ranges from 3 months to 12 months. Loan can be paid back on a monthly or quarterly basis. Interest / Loan Amount due can be paid at any of IIFL Gold Loan branches pan-India. Minimal amount of paperwork and documentation is required. Loan gets processed in as low as 5 minutes. Varieties of schemes are available to choose from. Gold is insured and secured safely with us in fire and burglary proof vaults.

Gold Loan Branch Process

Customer Care Executive Explains the various scheme. If customer is convinced to pledge, collects KYC documents & gold. Verification of KYC documents done & passed on to BM for further verification. BM ID & Address Proof Verification.

Valuer 1 Confirms the count and gross weight. Check gold for its purity. Brief the customer about their requirement and other features.

Valuer 2 Confirms the purity by testing. Passes the appraisal sheet to BM.

Branch Manager (BM) Confirms the purity, loan amount & passes the same to CCE. CCE At the same time, CCE and valuers does system entry. Signature of customer, valuers & BM done in the loan docs. Paper passed on to Cashier.

Cashier Disbursement of cash along with denomination noting in cash register.

Roles of Staff engaged in normal branch process

Role of a Customer Care Executive: Handling inquiries from customers regarding loans against gold. Helping customer to solve his/her all queries. Explaining terms and conditions of the product to the customer. Counting jewel items in front of customer & taking his/her signature. Ensuring all the KYC documents are verified with original. Ensuring all the details are filled up in Customer Detail Form.Role of Valuer 1 & 2: Checking the jewellery with accuracy Testing gold with two methods which include, Skin Test & Salt Test. Finding out the purity & making appraisal sheet. Working out on loan amount with mutual conversation. Every gold jewellery item must be counted and matched with the appraisal sheet before inserting it in gold packet. Each & every details mention on packet must be filled in with accuracy. It is important to keep gold packet in serial order in vault.Role of Cashier: To make sure that cash is taken from vault strictly as per cash denomination entered in the system. Ensuring that cash is counted twice before giving it to customer. To make sure that cash transaction is done in front of CCTV camera.Role of Branch Manager: Branch Manager has to explain customer about RTGS process. Convince customer to opt for RTGS/NEFT mode of cash transfer. Explain customer about the advantages of RTGS/NEFT process. Make sure that address verification is done by BM before disbursal of loan.

Steps to be followed while Appraising Gold Sort gold items according to Solid, Chain & Others. Check the Hallmark (if any) Confirm the purity with the help of Touch Stone & Acid Test. Note down result in following format:Name of ItemGross WeightNet WeightPer Gram RateAmount (Net wt.*Per gm rate)

Pass out gold to Valuer 2 for re-valuation. Suggest lower loan amount to BM.

Steps to be followed while Sealing of Gold Fill in the details on the packet. Insert the gold & appraisal sheet in the packet. Fix the sticker. Sign on the sticker (Branch Manager &Valuer 1) Affix the seal on sticker. Keep the gold packets in vault in serial order mentioning the GL number (to & from).

Steps to be followed at the time of Cash Handling Joint Custodians open the vault room. Take cash as per cash denomination entered in system. Pass out the same to cashier to re-count. Handover the cash to customer in front of CCTV camera.

Sales funnelSuspects: Any individual whose contact details we have is a suspect.Prospects: Any suspect who is contactable and available for communication is a prospect.Qualified Prospects: Any prospect who has the Money, Motivation, and Authority to buy the product.Meetings: Any prospect who grants you a face to face meeting.Closes: Closed sale (cheque) after meeting the prospect.

ALL PRODUCTS1.Mutual FundsA mutual fund is a company that pools the money of many investors to invest in a variety of different securities. Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio entitled to any profits when the securities are sold, but subject to any losses in value as well.For the individual investor, mutual funds provide the benefit of having someone else manage your investments and diversify your money over many different securities that may not be available or affordable to you otherwise. Today, minimum investment requirements on many funds are low enough that even the smallest investor can get started in mutual funds.A mutual fund, by its very nature, is diversified its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify.

Features of Mutual Funds

Professional Management Mutual fund investments are managed by professionals who are experts in investments. All investment is done by the professional based on extensive research.

Liquidity Most Mutual Funds offer the investor the facility of redeeming the units at any time to the investor.

Diversification As an individual investor in the capital markets it is expensive to build and maintain a diversified portfolio. Mutual funds can help the investor diversify at a much lower investment level. If the investor invests in a diversified Mutual Fund, he can get a professionally managed diversified portfolio for a much lesser investment.

Tax Benefits Provide tax deduction up to the limits specified u/s 80C of the Income Tax Act, 1961 is eligible for deduction. Shorter lock-in period of 3 years as compared to other traditional tax saving instruments. It offers a potential for a higher return and potential to earn tax-free dividend. Also, there is no tax on long term capital gains on redemptions done after lock in period.

Convenience No additional documents or medical tests are required; only certain details are to be filled up.

Classification of Mutual Fund

Mutual fund

Based on the Structure Open ended: At any time during the scheme period, investors can enter and exit the fund scheme by buying and selling fund units at its NAV. Close ended: Redemption can take place only after maturity or at regular pre stipulated intervals. However funds are listed on the stock exchange and investors can buy and sell units from the secondary markets.

Based on Market Classification Large cap: Funds are invested in only large companies and are perceived to be less risky and more liquid in the markets. Mid cap: Funds are invested in mid-sized companies and are perceived to be moderately risky and less liquid in the markets. Small cap: Funds are invested in small sized companies and are perceived to be very risky and comparatively illiquid in the event of correction.Based on Investment Objectives Growth / Equity Fund: Diversified Equity These are funds that invest solely in equity shares of companies. Since equities as an asset class fluctuates widely, the NAV of these funds is also subjected to these fluctuations. Sectoral Fund These are the funds investing in a particular business sector or industry. For example, auto sector funds which invests only in the automobile sector. The diversification of risk is very limited in this type of fund, making the scheme extremely risky. ELSS (Equity Linked Saving Scheme) These are special equity funds which have to invest at least 80% of its corpus in equity and the investments are locked for at least 3 years. Index Fund These funds invest in the same pattern as the composition of the index like Nifty or SENSEX. Moreover, the cost of managing these funds is lower as the mutual funds do not have to employ expensive research teams.

Debt Fund: Income Fund Investment is made in income bearing instruments like bonds, debentures government securities and commercial paper. Gilt Fund Funds are invested in Government securities and Treasury bills. Fixed Maturity Plan (FMP) These are close ended funds which mature after a certain period. They invest in securities matching the maturity profile of the fund.

Hybrid Fund: Balanced Fund They have an equity exposure of 60-70% and the balance is invested in debt instruments. Monthly Income Plan (MIP) They have equity exposure of 10-15% and rest is invested in debt instrument. MIPs provide monthly income to the investors by way of dividends.

Fixed Maturity Plans (FMPs): FMPs as they are popularly known as are the offerings from Mutual funds which usually invest in Certificate of Deposits, Commercial Papers, Money Market Instruments, Corporate Bonds and others. The tenure of the product is in line with the average maturity of the securities which they are likely to hold. There is no entry load, however the exit is allowed through stock exchanges where the units are available for trading. But the trading of units is hardly seen in the exchange. So be sure about the investment tenure.

2.Loan against PropertyNeed cash for business, childrens education, marriage or any personal use? Have some property in your family or in your name? Would like to leverage your property without giving it on rent or selling it?IIFL brings to you Loan against property(LAP). You can now take a loan against your residential or commercial property, to expand your business, plan a dream wedding, fund your childs education and much more.You can now depend on us to meet all your business requirement even to purchase a new shop or office for your business.

3.Home Loan:

A new home brings with it new hopes, joys and emotions. At IIFL, we have shared new hopes, joys and emotions with our customers. Every customer has a specific and unique concern and our home loan product is customized to provide you solutions for your unique concern. IIFL group has set up India Infoline Housing Finance Ltd. (IIHFL) to offer highly customized facilities of availing Home Loans.We believe that in order to succeed, we need to offer not only competitive products, but also the best possible service and value-added features and benefits. In a market where the basic product is largely similar, the differentiator is our ability to understand the customer's need completely and structure the value-adds appropriately.

4.Wealth Management:

The key to achieving a successful Investment Portfolio is to have a carefully planned financial strategy based on a thorough understanding of the client's investment needs and risk appetite. The IIFL Private Wealth Management Team of financial experts will recommend an appropriate financial strategy to effectively meet your investment requirements.

5.Equity Research:IIFL special research cell where some of India's finest financial analysts bring you intensive research reports on how the stock market is faring, when is the right time to Invest when to execute your order and more. IIFL make sure that investors are always prepared to make own investment decision when the opportunity arises. IIFL bring you intensive research reports - whether sectoral or company-wise or more - that tell you exactly when and where to invest. So whenever there is an exciting investment opportunity, you are in the know and always ready to invest. Research reports IIFL will help you choose your investments wisely, without wasting time. Presented in a lucid and easy-to-understand format; these reports help you make informed decisions.

6.IIFL Health Care:

Healthcare Finance is a business vertical dedicated at offering a customized financial solutions to Doctor, Diagnostics Centre, Hospitals, Nursing home etc for their funding needs.With 1.2 beds per 1000 population there is immense growth potential in this segment. Growing incomes, literacy and awareness bode well for the Indian healthcare services market. Considering that 80% of future Investment in Healthcare is expected to come from Pvt Sector, we at IIFL see a lot of synergies between the Healthcare fraternity and IIFL for mutual growth opportunities.IIFL is extremely delighted to share that we are present in Healthcare Finance Business.

7.National Pension Scheme:Any citizen of India of age 18- 60 yrs can open NPS lite account NPS lite pension plan is beneficial for lower middle / poor class to save money NRI & PPF subscriber can also invest in NPS Income tax benefit u/s 80ccd Invest 1000 and get govt. Contribution 1000* p.a Account can be opened with nominal subscription of Rs.100 Swavalamban benefit will be avail to subscriber who invest Rs.1000 min & max 12000 p.a Investment exceed 12000 p.a will not get yearly govt. benefit Upto 60% withdrawal is allowed at retirement age, remaining corpus will be given annuity Fund is being managed by Pension Fund Manager (PFM) Pran no. Will be allocated by NSDL, along with pran card. Expected rate of return 8.25% or above (depends upon fund performance) Fund allocation -15% equity, up to 45% corporate bonds & up to 55% govt. Bonds PF holder if applies for NPS lite plan, will not be eligible for Swavalamban benefit. PF holder should fill up non-Swavalamban application form. NPS lite product is launched through IIFL gold loan Payment can be done at anywhere in India, even subscriber change city or location or job 1 photo, 1 Xerox copies self attested ID proof & address proof required. Subscriber will get individual pran card. (permanent retirement account number) PFRDA, is a regulatory body for NPS lite SHCIL, is a custodian for NPS lite plan Account opening charge is just rs.35/- & AMC rs.70/- p.a Application form should be filled with black pen For any query mail nps@indiainfoline.com Form submission can be done at IIFL gold loan branches Pls collect receipt for any cash payment done If application is rejected, will get back your money. PRAN card available in Hindi also. Max limit for total investment* shall be Rs.50000/- per year as currently prescribed by RBI for "Small Deposit Account

History of Insurance in India

InIndia, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. 1818 saw theadvent of life insurance business inIndiawith the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies inIndia. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on19thJanuary, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Thehistory of general insurance datesback to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17thcentury. It came toIndia as a legacy of British occupation.General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business.1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from1stJanuary, 1973.107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process ofre-opening of the sectorhad begun in the early 1990s andthe last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI,to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector.The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance Corporation ofIndia were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation ofIndia and 23 life insurance companies operating in the country. Theinsurance sector is a colossal oneand is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

ICICI PrudentialAbout usICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).ICICI Prudential Life's capital stands at Rs. 4,793 crores (as of March 31, 2013) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the financial year 2013, the company has garnered total premium of Rs 13,538 crores and has underwritten over 13 million policies since inception. The company has assets held over Rs. 74,000 crores as on March 31, 2013.For the past decade, ICICI Prudential Life Insurance has maintained its dominant position (on new business retail weighted basis) amongst private life insurers in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

Our visionTo be the dominant Life, Health and Pensions player built on trust by world-class people and service.This we hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealingsThe success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work.We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

Our valuesEvery member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Humility, and Passion. These values shine forth in all we do, and have become the keystones of our success.

PromotersICICI Bank (taken from the press release of ICICI Bank)ICICI Bank Limited (NYSE:IBN) is India's one of the leading private sector bank and the second largest bank in the country, with consolidated total assets of US$ 111 billion at June 30, 2012. ICICI Bank's subsidiaries include India's one of the leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank's presence currently spans 19 countries, including India.

About Prudential Plc (taken from the press release of Prudential Plc)Prudential plc is incorporated in England and Wales, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and has 363 billion in assets under management (as at 30 June 2012).

Range of ProductsAt ICICI Prudential Life, we understand that different individuals have different needs.The ideal insurance plan is one that addresses the exact insurance needs of the individual which depends on the age and life stage of the individual apart from a host of other factors.ICICI Prudential Life offers plans under the following major need categories:

Term plans Wealth plans Child plans Health plans Retirement plans group plans Rural plans

Why ICICI Pru Life? Experience of settling over 66000 individual death claims since inception (as on December 31, 2012). Over 1.35 crores policies issued since inception & Assets Under Management of over Rs. 74,981.97 crore (as on December 31, 2012) Profit after tax stands at Rs. 1,384 crores for financial year 2011-2012Customer Speak "I was getting confused with so many different brands. When you look at the basic and the fundamentals, you know who you can rely on in the long term and thefigures are out there for everyone to see." - Mr. Vikram Singh "The online buying experience was simply superb and easy. I am proud to be associated with a company which stands by its words." - Yogesh Garg

Claim Assurance We believe every claim is a fulfillment of a promise that we have made to our policy holders. We are committed towards securing the future of your loved ones in a quick and efficient manner. Our Claims settlement ratio: 96.5% (As per IRDA Annual Report FY 2011-2012)

Insurance

Insuranceis the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form ofrisk managementprimarily used tohedgeagainst the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount ofmoneyto be charged for a certain amount of insurance coverage is called the premium.Risk management, the practice ofappraisingand controlling risk, has evolved as a discrete field of study and practice.The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives acontract, called theinsurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

Types of Insurance Non-Life Insurance Life Insurance

Non-Life Insurance (General Insurance)General Insurance includes insurance of all assets and events other than death of an individual.

Common Categories of General Insurance include Health Insurance Car Insurance Property Insurance Travel Insurance

Basic Principles of General Insurance In general insurance the value of the assets insured is calculated. The maximum amount of Insurance is limited to the value of the asset. The maximum benefit payable will be restricted to extent of losses suffered.

Life Insurance

Risk to Human Life Death: This risk is covered by Life Insurance. Living too long: This risk is covered by Pension. Disability: This risk is covered by Health and Disability Insurance. Disease: This risk is covered by Health Insurance.

Basic Principles of Life Insurance Utmost good faith: A positive duty to voluntarily disclose, accurately and fully, all facts material to risk being proposed, whether requested or not. Insurable Interest: A relationship with the Insured recognized in law and gives legal right to the person to insure the insured.

How does Insurance work?Premium charged in Insurance plans can be split into three parts Mortality Expense: This is the amount of premium utilized to provide life cover. Administrative Expense & Charges: This is the amount charged to cover Administrative expenses of the insurer. Investment Expenses: This is the amount that is invested by the Life Insurance Company to provide returns to the customers.

Traditional Insurance PlansTraditional Life Insurance plans are plans where the investment is made mainly into debt instruments with very less or no exposure to the equity markets. The customer cannot decide where the investment is made or choose his investment options.

Types of Insurance Plans

Type of Life InsuranceBasic Features

Term AssuranceThe term basic feature of term assurance plans is that they provide death risk-cover. Term assurance policies are only for a limited time, claim for which is paid to the family of the assured only when he dies. In case the assured survives the term of policy, no claim is paid to the assured.

Endowment InsuranceIn case of endowment assurance, the term of policy is defined for a specified period say 15, 20, 25 or 30 years. The insurance company pays the claim to the family of assured in an event of the assured surviving the policys term.

Annuities (Pension Plans)Annuities are just opposite to life insurance. A person entering into an annuity contract agrees to pay a specified sum of capital to the insurer. The insurer in return promises to pay the insured a series of payments until insureds death.There are two types of annuities:Immediate Annuity: In an immediate annuity, the insured pays a lump sum amount and in return the insurer promises to pay him in instalments a specified sum on a monthly/quarterly/half-yearly/yearly basis.Deferred Annuity: A deferred annuity can be purchased by paying a single premium or by way of instalments. The insured starts receiving annuity payment after a lapse of a selected period.

Money Back PolicyMoney back policy is a policy opted by people who wanted periodical payments. A money back policy is generally issued for a particular period, and the sum assured is paid through periodical payments to the insured, spread over this time period.

ULIPsULIPs or United Linked Insurance plans are plans that combine the safety of insurance protection with wealth creation opportunities.How do ULIPs work? ULIPs work on the lines of mutual funds. The premium paid by the client is used to buy units in various funds floated by the insurance companies. Units are bought according to the plan chosen by the policyholder. On every additional premium, more units are allotted to his fund. The policy holder can also switch among the funds as and when he desires. While some companies allow any number of free switches to the policyholder, some restrict the number to just three or four. If the number is exceeded, a certain charge is levied. Individuals can also make additional investments from time to time to increase the savings component in their plan. This facility is termed top-up The money parked in a ULIP plan is returned either on the insureds death or in the event of maturity of the policy. Level Death Benefit: In case of the insured persons untimely death, the amount that the beneficiary is paid is the higher of the sum assured or the value of the units. Increasing Death Benefit: In case of the insured persons untimely death, the amount that the beneficiary is paid is the sum assured plus the value of the units.

Systematic Investment Plan (SIP)Systematic Investment Plan (SIP) is a method of investing in mutual fund schemes. Using this method, one can invest a fixed amount periodically for a predetermined period.A Systematic Investment Plan (SIP) is a disciplined approach to wealth creation. It allows the investor to adopt a systematic and dedicated approach to financial planning by inculcating a regular savings habit.Instead of investing a large amount at one time, the investor can choose to stagger his investment at regular intervals according to his convenience and ability.Advantages of SIPIt is very difficult to predict the day to day movement of the stock markets. Hence it is good to start investing on a staggered basis by making regular monthly investments. This helps the investor to spread out his investments evenly over a period of time. This process of making regular monthly investments over a period of time at various market levels is known as Rupee Cost Averaging. It is not always possible for an investor to buy at the lowest point and sell at the highest point. Rupee cost averaging helps the investor to reduce this of timing the market to a great extent.PRIMARY DATA & SECONDARY DATA (Survey)

Activities performed:

In our branch we have performed various activities to build a good Customer relationship management (CRM). Through which we use to generate leads for gold loans and also for various financial products like Life insurance, Guaranteed Saving Insurance Plan (GSIP), Smart kid, retirement Income Solution (RIS), etc

Inauguration of the new Wadala branch:

Activity at Nakshatra mall, Dadar:

Marketing activity done near Antophill market for three days.

Birthday activity done in the branch on various days to generate leads:

Medical camp organized by the team for health check-up:

Literature reviewSuggestions and recommendationConclusionBibliography

How many times in a year you have emergency requirement of money?How do you manage when you require money?How do you manage when you require money?Are you aware about gold loan?Have you ever used gold loan services?If yes which company?What according to you is the safest instrument of investment & saving?What is your approximately monthly household expenses? Do you have your owned house or rented?Have you taken any housing loan?Have you made any provision for your retirement?