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Wealth Advisory Services is now Wealth Services This exclusive service* comes to you with an array of unmatched benefits,

which include: Structured Process considering your risk profile, investment objectives and financial goals Recommendations from HDFC Bank's in-house research team Choice of convenient Mutual Fund execution platforms Comprehensive Portfolio Tracker* that provides a consolidated view of your Mutual Fund Investments, HDFC Life Policies, Savings, Current & FD Account Balances Complimentary subscription* to our exclusive monthly magazine - Investment Insight, that updates you on:

s on various investment products Proactive monthly updates on new offers and investment concepts. The 5 step structured process of Wealth Services involves: 1. 2. 3. 4. 5. Identifying Objectives Establishing your Risk Profile Recommending Research Backed Solutions Seamless Execution and Regular Reviews

Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds. Funds are selected on quantitative parameters like volatality, FAMA Model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers. Advantages of Investing into a Mutual Fund The reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity. Flexibilty - Mutual Fund investments also offers you a lot of flexibility with features such as

systematic investment plans, systematic withdrawal plans & dividend reinvestment. Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks. Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research Potential of return -The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish. Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the investor's interests. Your relationship managers will help you determine your investment profile, which will be based on your needs, possibilities and expectations. Your investment profile will help you choose the type of investments that suits you the best. Fixed income investments are an important tool to provide safety to the capital and also to minimise the volatility in returns. Most investors know fixed income investments as Fixed Deposits. Fixed income investments have to be primarily evaluated based on three characteristics

coupon or interest maturity or tenor issuer

The interest rate offered on a fixed deposit would depend on the issuer and tenor. What is a bond? Traditionally, when a borrower takes a loan from a lender, the borrower enters into an agreement with the lender specifying the date when he would repay the loan and what return or interest the borrower would provide to the lender for providing the loan. This entire structure can be converted into a form where in the loan can be made tradable by converting it into smaller units and pro rata allocation of interest and principal. This tradable form of the loan is termed as a debt instrument.

Example of interest or coupon on fixed income investment: An investment of Rs. 1 Lakh in a Fixed Deposit or bond that pays 8% p.a. for 5 years will add Rs. 8,000 to one's income each year over the next 5 years. At the end of 5 years, the investor will get back his original investment of Rs. 1 Lakh. The interest rate offered by the borrower to the lender depends on two factors a) credit rating b) tenor of the bond. The less credit-worthy (as reflected through the credit rating) pay higher interest, as do borrowers who want money for many years. For example, the bond of a company in a cyclical or new business will pay, or yield, more than a bond from an established company, since the established company is more likely to service the debt on time. Tenor of the bond: A five-year bond typically yields more than a one-year bond - the compensation for being locked in and unable to reinvest the principal if interest rates rise in future. Interest rate risk affects the value of bonds and is a major risk to all bondholders who would like to trade the bond before maturity. As interest rates rise, bond prices fall and vice versa. The rationale is that as interest rates increase, the opportunity cost of holding a bond decreases since investors are able to realise greater yields by switching to other investments that reflect the higher interest rate. For example, an 8% bond is worth more if interest rates decrease since the bondholder receives a higher fixed rate of return relative to the market, which is offering a lower rate of return as a result of the decrease in rates. Interest Rates 5% 6% 7% 8% 9% 10% 10-year bond 1,231.65 1,147.20 1,070.24 1,000.00 935.82 877.11 % movement 23.17% 14.72% 7.02% 0.00% -6.42% -12.29%

As seen from the above example we have taken a 10 year bond offering 8% yield and analysed the impact of interest rate movements on the price of the bond. HDFC Bank offers you: Section 54 EC - Capital Gains Bond

Tax exemption for transferring gains of long term capital assets.

Know More 8% Savings (Taxable) Bonds Choose from cumulative and non-cumulative bond options.

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Types of investments Wealth services,Mutual funds,insurance,general and health insurance,bonds,equities and derivatives,tax planning.