Company Profile

Company Profile
The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 18 ! to finance the growing trade between "urope, #ndia and China$ The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the %eninsular and &riental Steam 'a(igation Compan)$ He reali*ed that there was considerable demand for local banking facilities in Hong +ong and on the China coast and he helped to establish the bank, which opened in Hong +ong in ,arch 18 ! and in Shanghai a month later$ Soon after its formation the bank opened agencies and branches around the world$ -lthough that network reached as far as "urope and 'orth -merica, the emphasis was on building up representation in China and the rest of the -sia.%acific region$ HSBC was a pioneer of modern banking practices in a number of countries$ #n /apan, where a branch was established in 18 , the bank acted as ad(iser to the go(ernment on banking and currenc)$ #n 1888, it was the first bank to be established in Thailand, where it printed the countr)0s first banknotes$ 1rom the outset trade finance was a strong feature of the local and international business of the bank, an e2pertise that has been recogni*ed throughout its histor)$ Bullion, e2change, merchant banking and note issuing also pla)ed an important part$ B) the 1883s, the bank was acting as banker to the Hong +ong go(ernment and also participated in the management of British go(ernment accounts in China, /apan, %enang and Singapore$ #n 1845 the bank handled China0s first public loan and thereafter issued most of China0s public loans$

Introduction

INTRODUCTION

HSBC0s international network comprises o(er 6!33 offices in 4 countries 7 territories in "urope, the -sia.%acific region, the -mericas, the ,iddle "ast 7 -frica$ 8ith listings on the London, Hongkong, 'ew 9ork, %aris 7 Bermuda stock e2change shares in HSBC holdings places are held b) nearl) :33,333 shareholders in some 133 countries 7 territories$ The shares are traded on the 'ew 9ork stock e2change in the form of -merican ;epositor) <eceipts$ Through an international network linked b) ad(ertisement techni=ues, including a rapidl) growing e.commerce capabilit), HSBC pro(ides a comprehensi(e range of financial ser(ices like.

1$ %ersonal financial ser(ices :$ Commercial Banking >$ Corporate Banking 5$ #n(estment Banking

THE HSBC GROUP IN INDIA

9ear of commencement of operations in #ndia

The ,ercantile Bank of #ndia, China 7 London The Hongkong 7 Shanghai Banking Corporation Limited @HB-%A

? 18!> ? 18 4

HSBC Securities 7 Capital ,arkets @#ndiaA %ri(ate Limited @HB-%A ? 166! HSBC %ri(ate "=uit) ,anagement @,auritiusA Limited @#ndia liaison &fficeA @%"#'A HSBC "lectronic ;ata %rocessing #ndia %ri(ate Limited @H;%#A HSBC %rimar) ;ealership @#ndiaA %ri(ate Limited @HC%;A HSBC %rofessional Ser(ices @#ndiaA %ri(ate Limited @H%S#A HSBC Software ;e(elopment @#ndiaA %ri(ate Limited @HS;#A HSBC -sset ,anagement @#ndiaA %ri(ate Limited @#S#'A HSBC #nsurance Brokers @#ndiaA %ri(ate Limited @#'#'A HSBC &perations 7 processing enterprise@#ndiaA %(t$ Ltd$ @H&%"A Canara HSBC &riental bank of commerce Life insurance co$ Ltd$ ? 166! ? :333 ? :331 ? :331 ? :33: ? :33: ? :33> ? :33> ? :338

The HSBC Group commenced operations in #ndia in 18 4 with a branch in Calcutta$ The) claim an earlier commencement, as the ,ercantile Bank of #ndia, China 7 London, which the group ac=uired in 16!6, was established in 18!>, with a branch in Bomba)$

The Bank has relocated some branches in ,umbai, 'ew ;elhi, Chennai, Banglore, +olkata 7 Bisakhapatnam from what were once important trade centres to more appropriate present da) locations that hold our target customer base$ PERSONA !INANCIA SER"ICES #P!S$ HSBC #ndia offers a wide range of competiti(el) priced ser(ices 7 products to o(er 1$4! million indi(idual resident #ndians as well a 'on.resident #ndian customers across #ndia, CS-, C+, ,iddle "ast 7 South "ast -sia$ HSBC0s 1!3 )ear presence in #ndia allows it to enDo) the ad(antage of deep rooted knowledge of local markets 7 customs$ This has lead to de(elopment of products 7 ser(ices, which are attuned to the financial needs of #ndians in the cities where HSBC operati(es$ The HSBC brand is associated with core (alues such as transparenc), trust 7 honest)$ These factors enable HSBC #ndia to remain highl) competiti(e 7 at the leading edge of the retail 7 commercial banking market in the countr)$ The distribution network in #ndia consists of 54 branches in : cities supported b) 143 -T,s at 15: locations$ #n addition, self ser(ice banking channels, such as #nternet Banking 7 a :5 hour centrali*ed all #ndia Call Centre pro(ide a strong backbone to the distribution capabilities$ - second load balancing Call Centre became operational in /anuar) :33! at HSBC &perations 7 %rocessing "nterprise

@#ndiaA %ri(ate Limited, Chennai$ Customers can appl) for all products 7 ser(ices online at www$hsbc$co$in The bank offers a complete suite of products 7 ser(ices including HSBC %remier #nternational, HSBC %remier, %ower Bantage, Sa(ings 7 Current -ccounts, #nternational ;ebit Cards 7 Term ;eposits in addition to consumer loan products like #nternational Credit Cards, ,ortgage, %ersonal Loans, "ducational loans 7 &(erdrafts$ HSBC is the million cards in force$ %ealt& 'ana(ement ) Branc& Ban*in(
th

largest Credit Card issuer in #ndia with o(er 1$>

HSBC &a+ ,- .ranc&e+ Pan/India acro++ 01 location+$ 8ealth ,anagement ser(ices are deli(ered to customers through =ualified 8ealth ,anagement across each of these branches$ 8ealth ,anagement helps customers de(elop 7 e2ecute a realistic 7 practical long term sa(ings, in(estments 7 protection plans b) in(esting in mutual funds, bonds 7 purchase of insurance products manufactured b) T-T- -#G$ Eualified, trained 7 accredited 8ealth ,anagement assist customers in charting a road map to achie(e their indi(idual financial goals 7 protect their famil) from unforeseen e(entualities keeping in mind their a(ailable resources 7 based on each customers independent risk profile$ 8ealth ,anagement ser(ices is currentl) offered to HSBC %remier 7 %ower Bantage customers

C&,,"<C#-L B-'+#'G HSBC is a leading pro(ider of financial ser(ices to small, medium.si*ed and middle.market enterprises$ The Group has o(er 5>,333 such customers in #ndia, including sole proprietors, clubs and associations, incorporated businesses and publicl) =uoted companies$ Commercial Banking pro(ides a full range of banking ser(ices to these customers including multi.currenc) business accounts, pa)ment and cash management, trade ser(ices, factoring and a range of borrowing solutions$

#n #ndia, Commercial Banking has a presence in 54 branches co(ering : ke) cities and for the con(enience of our customers, a multi channel ser(ice including #nternet and %hone banking$ 1or S," customers, HSBC offers the complete range of transaction baking ser(ices as well as unsecured loans and loans for and against propert)$ The ser(ices are supported b) a large Sales and <elationship ,anagement team in ke) locations across the countr)$ #ndia is the first countr) in the HSBC Group where Commercial Banking lends to ,icrofinance #nstitutions, thus pro(iding indirect funding to hundreds of small business owned and run b) members of underpri(ileged sections of societ)$ - dedicated unit has been formed to focus on ,icrofinance and other %riorit) Sector institutions, with a (iew to further reach out to the marginali*ed and under banked$

Factoring HSBC #ndia offers a comprehensi(e range of 1actoring and Suppl) Chain 1inance Solutions, which include the following products? 1or BendorsFSuppliersF%urchase Channel of our corporate customers %a)ables 1inancing %urchase &rder 1inancing

1or the Sales Channel of our corporate customers 1actoring @8ith or 8ithout Credit %rotectionA "2port 1actoring @8ith or 8ithout Credit %rotectionA %ortfolio #n(oice ;iscounting @8ith partial credit protectionA ;istributor 1inance

Paya.le+ !inancin(? HSBC #ndia0s %a)able 1inancing product enables companies to finance their pa)ables to (endors$ This helps companies to pro(ide immediate li=uidit) to (endors against their supplies at competiti(e rates and will enable the compan) to negotiate better pricing terms with (endors$ #t also enables the (endors to impro(e their cash flow b) pro(iding continuous li=uidit) against their recei(ables$ &ur pa)ables financing products can be structured either against Bills of "2change or -ccepted #n(oices$

Purc&a+e Order !inancin(2 is a facilit) to suppliers of our Corporate Banking Clients to finance their pre shipment working capital re=uirements$ %re shipment working capital lines are sanctioned to the supplier0s against %urchase &rders issued to the suppler$

!actorin(? This is a ser(ice that co(ers the financing and collection of account recei(ables in domestic trade$ <ecei(ables are factored, b) HSBC with added ser(ice of credit protection, collection and sales ledges administration$ Thus the management of the compan) ma) concentrate on production and sales and need not concern itself with non.core acti(ities like collection and sales ledger administration$

E3port !actorin(2 enables companies to finance their open account e2port sales at competiti(e rates either in <upees or 1oreign Currenc)$ Through a network of o(erseas based correspondent factors, HSBC pro(ides credit protection against bu)er default and collection ser(ices$ Portfolio In4oice Di+countin(2 "ssentiall) co(ers purchase of recei(ables with partial credit protection based on a 1irst Loss ;eficienc) Guarantee$ The portfolio should be well spread with acceptable le(els of concentration and the debtors must ha(e had a satisfactor) track record with the compan)$ - field audit will be conducted to determine portfolio =ualit) based on which a 1irst Loss ;eficienc) Guarantee percentage will be agreed$ Collection remains the responsibilit) of the Corporate with repa)ments either on a pre.agreed schedule or based on actual collection$

Di+tri.utor !inance2 is currentl) offered to the distribution channel of Large Corporate Banking Clients and can be structured to suit the specific re=uirements of each corporate and its distribution channel$ Through the ;istribute 1inance %rogram, HSBC finances compan)0s dealers, which will assist the compan) in pro(iding stead), assured credit to its distribution chain$

Payments and cash management #ntegrated domestic and regional cash management solutions are pro(ided to corporate and institutional customers in #ndia$ The suite of offerings under the cash management umbrella includes comprehensi(e <ecei(ables ,anagement solutions, with an endea(or to completel) integrate with the customer0s back.end operating s)stems and processes$ HSBC is the leading foreign bank in #ndia in pro(iding capital market solutions, which include Bankers to #ssue, "scrow account Ser(ices and ;i(idend pa)ments solutions$ Si2 Sigma measurement practices are followed for our operational capabilities$ HSBC net, the HSBC Group0s online real time web.enabled corporate banking platform, allows customers to e2ecute financial transactions, obtain international financial market information and re(iew details of their domestic and international accounts from an)where in the world, :5 hours a da)$ Trade (international and domestic) service HSBC offers a wide range of international and domestic Trade products$ #n #ndia, we offer one of the largest trade processing capabilities among peer banks, spread across ! cities$ "ach of our Trade processing centers is #S& 6331.:333 certified$ 8e work closel) with Group &ffices o(erseas and le(erage our e2tensi(e global

network to offer structured, tailor made solutions to a wide range of customers$ &ur clients in #ndia include large #ndia and multinational companies, ,id ,arket companies as well as customers in the Small and ,edium "nterprises segment$

CORPORATE AND INSTITUTIONA BAN5ING

Corporate Banking @CBA is an integral part of the Global Banking structure, which focuses on offering a full range of ser(ice to multinationals, large domestic corporate and institutional clients$ %ro(ides a wide range of banking and financial ser(ices pro(ided to domestic and international operations of large local corporate and local operations of multinationals corporations$ Ser(ices include access to commercial banking products, including working capital facilities such as domestic and international trade operations and funding, channelFdistributor financing, and o(erdrafts, as well as domestic and international collections and pa)ments, #'< and 1oreign currenc) term loans @e2ternal commercial borrowing in foreign currenc)A, letters of guarantee etc$

#nstitutional Banking dri(es the Group0s relationship with banks, financial institutions, securities houses, insurance companies, and asset management companies and other non.banking companies, non.go(ernment and de(elopment

organi*ations operating in #ndia$ ,arket leadership position based on strong relationships with maDor financial institutions$

#n(estment Banking and ,arkets brings together the ad(isor) and financing, e=uit) Securities, e=uit) linked transactions, asset management, treasur) and capital markets, and pri(ate e=uit) acti(ities of the Groups to complete the Global Banking structure and pro(ide a complete range of financial products to our clients$

Clients are ser(iced b) sector based client ser(ice teams that combine relationship managers, product specialists and industr) specialists to de(elop customi*ed financial solutions$ These form the relationship team along with the #n(estment Banking structure and pro(ide a complete range of financial products to our clients$ Clients are ser(iced b) sector based client ser(ice teams that combine relationship managers, product specialists and industr) specialists to de(elop customi*ed financial solutions$ These form the relationship team along with the #n(estment Banking 7 -d(isor) di(ision$ "ach team supports the client0s local and global needs, ensuring a full understanding of the compan)0s business and financial needs$ Based on our client0s re=uirement, HSBC assigns Global <elationship ,anagement teams to pro(ide structured solutions for all its needs$

&ur Global <elationship ,anagement teams are tasked with understanding in depth the sectors in which our clients operate with the aim of adding (alue through detailed industr) knowledge and structured financial solutions$

1ocus on o(erseas ac=uisition financing, corporate finance and ad(isor) roles, o(erseas cash management opportunities, cross border funding, proDect 7 e2port finance through concerted marketing with all product pro(iders$

The Corporate Bank @CBA in #ndia was top ranked @1st o(erallA in the :33! Greenwich Sur(e) with a Greenwich Eualit) #nde2 @GE#A of 54$ Currentl) CB manages appro2$ 543 CB relationships with total ad(ances of appro2$ CS; 1$38Bn as at end of ;ec3! and total deposits of CS; $68Bn$

Sectoral account management. #mpro(ed industr) knowledge andsector5 e2pertise$ The CB portfolio is largel) spread within the following sectors di(ided as under?

Corporate+

In+titutional

Consumer Brands #ndustrials 7Technolog) "nerg) and Ctilities

Banks 1inancial #nstitutions Securities

Telecommunications -utomoti(e Healthcare Transport and Logistics IN"EST'ENT BAN5ING

,utual1undsF-sset,anagement Companies #nsurance 1inancial Sponsors Business %rocess &utsourcing @B%&0

67 HSBC !I8ED DEPOSITS

8hen it comes to assured returns, choosing the right t)pe of sa(ings scheme makes all the difference$ HSBC 1i2ed ;eposits let )ou make the most of (alue. added benefits as )ou create wealth at low risk$

!eature+ ) Benefit+ T&e +uperior !i3ed Depo+it to in4e+t in9 for a +ecure future 9ou can now open a 1i2ed ;eposit with <s$ 13,333 onl) "nDo) high rate of returns on )our HSBC 1i2ed ;eposits

 Choose from a wide range of tenors as per )our con(enience -(ail of our special rates for select tenors

Intere+t Rate+ !i3ed Depo+it Period Citi:en;+ Intere+t #< p7a7$ Rate== #< p7a7$ - day+ A to 6, day+ 6@ to 0B day+ >? to @B day+ 1? to AB day+ B? to 6-B day+ 6A? to 01B day+ 0-? to 60 mont&+ >11 to >BB day+ ,?? day+ >7?? >7?? >7@? ,70@ @70@ @70@ @7@? A7?? A7?? A7-@ >70@ >70@ >7-@ ,7@? @7@? @7@? @7-@ A70@ A70@ B7?? Intere+t Rate Senior

,?6 to le++ t&an 6A mont&+ 6A mont&+ to ->? day+ ->6 day+ ->0 to le++ t&an >1 mont&+

-70@ -7@? -7@? -7@?

-7@? -7-@ -7-@ -7-@

Certificate of Depo+it

"arn interest for funds in(ested from 1! da)s to one )ear, with HSBC0s Certificate of ;eposit @C;sA$ C;s can be a(ailed b) indi(iduals @other than minorsA, corporations, banks, companies, trusts, funds, associations etc$ 'on.<esident #ndians @'<#sA ma) also subscribe to C;s on a non.repatriable basis onl)$

Ad4anta(e

Tenure C - Certificate of ;eposit is issued for a period not less than 1! da)s 7 not e2ceeding 1 )ear from the date of issue$ Tran+fer 'ec&ani+m C Certificate of ;eposit held in a ph)sical form are freel) transferable b) endorsement 7 deli(er)$ Those in

demat form can be transferred as per the procedure applicable to other demat securities

07 'UTUA !UNDS

#t is a t)pe of in(estment where a number of in(estors mone) is pooled together 7 used b) the fund manager@referred to as the -sset ,anagement Compan) or -,CA to in(est in underline securities inline with the obDecti(es of the scheme$ B) this method )ou can achie(e a much wider spread of in(estments than if )ou were in(esting directl) in the underl)ing in(estments$ #t is generall) accepted that b) spreading )our in(estment )ou are spreading )our risk, therefore in(esting in mutual funds is considered to be lower risk than direct in(estment$ 8hen )ou in(est in mutual funds )ou do not own the underl)ing in(estments but ha(e a claim to a number of units in the fund representing the si*e of )our in(estment$ The (alue of each unit of the mutual fund scheme, calculated based on the market (alue of the underl)ing in(estments after deducting e2penses and liabilities, is referred to as the 0'et -sset Balue0 or '-B$

The first time a mutual fund scheme is a(ailable for purchase is referred to as a 'ew 1und &ffering or '1&$

#mportant Characteristics &f - ,utual 1und

1. :.

- mutual fund actuall) belongs to the in(estors who ha(e pooled their funds is in the hands of the in(estors$ #n(estment professionals and other ser(ice pro(iders, who earn a free for their ser(ices, from the fund, manage a mutual fund$

>. 5.

The pool of funds in(ested in a portfolio of marketable in(estments$ The (alue of the portfolio is updated e(er) da)$ The in(estor0s share in the fund is denominated b) GunitsH$ The (alue of the units changes in the portfolio0s (alue, e(er) da)$ The (alue of one unit of in(estment is called as the net asset (alue of '-B$

!.

The in(estment portfolio of the mutual fund is created according to the stated in(estment obDecti(es of the fund$

Type+ of 'utual !und+

There are thousands of different mutual funds offered on the market$ The) range from funds that include a broad (ariet) of in(estments to funds that in(est e2clusi(el) in single securities or narrow sectors of the market$ 8ith the man) different in(estment st)les and obDecti(es, there0s bound to be a number of mutual funds that are suited to )our in(esting profile$ "ach of these funds has e2pense, risk, and return characteristics$ Be sure )ou understand these characteristics before )ou in(est$ There are 1! principal t)pes of funds$ 8e ha(e listed them according to their primar) obDecti(es? growth, income, and speciali*ed$

Balanced !und+

Balanced funds seek to obtain the highest return consistent with a low.risk strateg)$ The) hold a mi2 of common and preferred stocks, bonds and cash reser(es$ The mi2 can (ar) according to current market conditions$ Balanced funds usuall) offer higher )ields than pure stock funds$ Balanced funds are generall) the least risk) of growth.oriented mutual funds$ GroDt& and Income !und+ Growth and income funds attempt to achie(e both long.term growth and current income$ The) in(est primaril) in high.)ield common stock, preferred stock, and con(ertible debt @bondsA to generate both growth and income$ Because the) include a mi2 of in(estments, these funds are t)picall) less risk) than growth funds$ GroDt& !und+ Growth funds seek long.term appreciation b) in(esting in the stocks of established companies that ma) be poised for growth$ These companies t)picall) pa) low di(idends )et offer the potential for long.term capital appreciation$ Some growth funds limit their in(estments to specific sectors of the econom)$ Growth funds are generall) less risk) than aggressi(e growth funds$

International and Glo.al GroDt& !und+ #nternational and global mutual funds offer di(ersification into international stock markets$ #nternational funds in(est onl) in foreign securities$ Global funds, on the other hand, can in(est in foreign and C$S$ securities$ The risks associated with in(esting on a worldwide basis include differences in regulation of financial data

and reporting, currenc) e2change differences, as well as economic and political s)stems that ma) be different that those in the Cnited States

A((re++i4e GroDt& !und+ -ggressi(e growth funds, sometimes known as Ismall.capI funds, seek ma2imum capital gains$ The) in(est primaril) in the stock of smaller, less established companies$ Since these companies generall) pa) little or no di(idends, aggressi(e growth funds rel) on capital growth for returns$ These funds tend to be the riskiest of growth.oriented mutual funds$

'oney 'ar*et !und+ ,one) market funds seek current income while maintaining a stable J1$33 per share net asset (alue b) in(esting in short.term debt securities, including T.bills, certificates of deposit, commercial paper, and other highl) li=uid and safe securities$ The) offer modest current income and no potential for capital gains$ The) generall) offer the lowest returns but the most safet) of all fund t)pes$ Some mone) market funds also offer ta2.free income$ ,one) market funds are neither insured nor guaranteed b) the 1ederal ;eposit #nsurance Corporation or an) other go(ernment agenc)$ -lthough the fund seeks to preser(e the (alue of )our in(estment at J1$33 a share, it is possible to lose mone) b) in(esting in the fund$

Go4ernment Securitie+ !und+ Go(ernment securities funds in(est primaril) in Treasur) and go(ernment agenc) securities$ Because the) are issued or guaranteed b) the C$S$ go(ernment, the) are considered the credit worthiest alternati(es a(ailable Go(ernment securities offer moderate current income and high safet)$ Treasur) securities are backed b) the full faith and credit of the C$S$

'unicipal Bond !und+ ,unicipal bond funds seek ta2.free income b) in(esting in the bonds of state and local go(ernments$ #n man) cases, it ma) be wise to consider municipal bond funds issued b) )our state because the) ma) offer double or e(en triple ta2.free income$ #n some states )ou will ha(e to pa) income ta2 if )ou bu) shares of a municipal bond fund that in(ests in bonds issued b) other states$ #n addition, while some municipal bonds in the fund ma) not be subDect to regular income ta2es, the) ma) be subDect to federal, state, or local alternati(e minimum ta2$ #f )ou sell a ta2. free bond fund at a profit, there are capital gains ta2es to consider$ -s with all t)pes of bond funds, the principal (alue will fluctuate with changes in interest rates$

Corporate Bond !und+

Corporate bond funds in(est in debt securities issued b) corporations$ The risk of corporate bond funds ma) (ar) depending on the obDecti(es of the fund$ Because credit risk is somewhat higher, these funds ma) offer higher returns than funds speciali*ing in go(ernment securities$ %rincipal will fluctuate with changes in interest rates$ Hi(&/Eield Bond !und+ High.)ield bond funds seek to ma2imi*e current income b) in(esting in lower. =ualit) K high.)ielding K corporate bonds$ The bonds held b) these funds are generall) rated BB or lower b) rating agencies$ The) offer the high current )ields to compensate for the greater risk of default$ Since the) are more (olatile than and pa) higher )ields than in(estment grade bonds, the) tend to be suited to in(estors with a high degree of risk tolerance$ Sector !und+ Sector funds in(est in specific industries or sectors of the econom), such as communications, aerospace and defense, or health care$ 8hile the) ma) be di(ersified within a particular sector, the) lack broad di(ersification$ This increases their in(estment risk$ These funds t)picall) seek long.term capital appreciation$

GroDt&/Income !und+ Growth.income funds are specialists in blue chip stocks$ These funds in(est in utilities, ;ow industrials, and other seasoned stocks$ The) work to ma2imi*e di(idend income while also generating capital gains$ These funds are suitable as a substitute for conser(ati(e in(estment in the stock market$

Income !und+ #ncome funds focus on di(idend income, while also enDo)ing the capital gains that usuall) accompan) in(estment in common and preferred stocks$ These funds are particularl) fa(ored b) conser(ati(e in(estors$

A++et Allocation !und+ -sset allocation funds donLt in(est in Dust stocks$ #nstead, the) focus on stocks, bonds, gold, real estate, and mone) market funds$ This portfolio approach decreases the reliance on an) one segment of the marketplace, easing an) declines$ - plus factor is limited b) this strateg) as well$

Preciou+ 'etal !und+ %recious metal funds in(est in gold, sil(er, and platinum$ Gold and sil(er often mo(e in the opposite direction from the stock market, and thus these funds can pro(ide a hedge against in(estments in common stocks$

Bond !und+ Bond funds in(est in corporate and go(ernment bonds$ - common misunderstanding among in(estors is that the return on a bond fund is similar to the returns of the bonds purchased$ &ne might e2pect that a fund that owns primaril) 8 percent.)ielding bonds would return 8 percent to in(estors$ #n fact, the )ield from the fund is based primaril) on the trading of bonds, which are

e2traordinaril) sensiti(e to interest rates$ Thus, one could find a bond fund that was earning double.digit returns as the prime rate climbed from 5 percent to percent$ #n addition to mutual funds, there are mone) market funds, which are essentiall) mutual funds that in(est solel) in go(ernment.insured short.term instruments$ These funds nearl) alwa)s reflect the current interest rates, and rarel) engage in interest.rate speculation$

,utual funds a(ailable through HSBC

AIG Glo.al In4e+tment Group 'utual !und Birla Sun ife 'utual !und DSP 'errill ync& In4e+tment 'ana(er+ !idelity 'utual !und !ran*lin Templeton 'utual !und HD!C 'utual !und HSBC 'utual !und

ICICI Prudential 'utual !und FP'or(an 'utual !und 5ota* 'a&indra 'utual !und Reliance 'utual !und Standard C&artered 'utual !und Sundaram BNP Pari.a+ 'utual !und Tata 'utual !und

Benefit+ of 'utual !und Reduction in ri+*2 ,utual funds in(est in a portfolio of securities$ This means that all funds are not in(ested in the same #n(estment -(enue$ Holding a portfolio that is di(ersified across in(estment a(enues is a wise wa) to manage risk$ 8hen such a portfolio is li=uid and marked to market, it enables in(estors to continuousl) e(aluate the portfolio and manage their risks more efficientl)$ <eduction in transaction costs? Through the indi(idual in(estor0s contribution ma) be smallM the mutual fund itself is large enough to be able to reduce costs in its transactions$ These benefits are passed on to the in(estors$ Portfolio Di4er+ification2

B) offering read)made di(ersified portfolios, mutual fund enables in(estors to hold di(ersified portfolios$ Through in(estors can create their own di(ersified portfolios, the costs of creating and monitoring such portfolios can be high, apart from the fact that in(estors ma) lack the professional e2pertise to manage such a portfolio$

iGuidity2 &pen.ended funds are (er) li=uid as the ,utual 1und companies offer an open window for redemption on all working da)s$ The redemption proceeds are normall) dispatched within three to four working da)s$

Profe++ional fund mana(ement2 #n(esting in markets re=uires both knowledge and e2pertise$ "2perienced fund managers are able to trade or negotiate better deals, manage the price risk effecti(el), e2ploit trends and opportunities and constantl) monitor the en(ironment$

Ta3 efficiencie+2 #n(esting in mutual funds is ta2 efficient$ #f in(estors choose the growth option and sta) in(ested for a )ear, the) onl) pa) long term Capital Gains of :3$5N of inde2ed returns or 13$:N of un inde2ed returns @whiche(er is lowerA$

Di4er+ification2 ;i(ersification is the core of an) in(estment strateg)$ #t allows )ou to minimi*e the risks associated with an) in(estment$ Howe(er,it is (er) difficult for indi(iduals to ha(e the re=uisite di(ersification for )our in(estment gi(en smaller portfolios and transaction costs$ ,utual 1unds can pool in the in(estments of thousands of in(estors and achie(e the desired le(el of di(ersification for each$ !AH;+ Do all mutual fund+ carry t&e +ame in4e+tment ri+*+I

'o, the) do not$ Some mutual funds ha(e been designed for in(estors who are cautious, while others for in(estors who are aggressi(e in their outlook to risk$ There are also funds designed for in(estors ha(ing a balanced outlook on risk$ 9ou therefore need to decide what le(el of in(estment risk )ou are happ) to accept and then choose a mutual fund scheme, which matches )our appetite for risk$

HoD do I *noD D&ic& mutual fund +c&eme i+ ri(&t for meI

This will depend upon the le(el of risk )ou are prepared to take, )our in(estment hori*on, what )our in(estment obDecti(es are and whether )ou ha(e a particular preference in the t)pe of securities )ou would like to in(est in$ Howe(er before

)ou in(est )ou need to ensure )ou full) understand the features and risks relating to the mutual fund scheme )ou ultimatel) decide to in(est in$ %&at c&ar(e+ are in4ol4edI

Charges do (ar) between different t)pes of mutual fund schemes to reflect the le(el of management and the t)pe of underl)ing securit) in(ol(ed$ Howe(er there are three main t)pes of charges in(ol(ed but )ou must refer to the offer document of the fund to find out e2actl) what charges are in(ol(ed and their amounts$

Initial c&ar(e+ O these e2penses are incurred b) the fund house for the scheme@sA beforeFduring its launch towards marketing, publicit), ad(ertising, registrar0s e2penses, broker0s Fagents0 commission etc$ SubDect to an o(erall limit @as a percentage of the corpus mobili*edA, these are subse=uentl) amorti*ed to the scheme o(er a few )ears$ Annual Recurrin( E3pen+e+ #ARE$ O These are charges towards the annual management of the scheme, including in(estment management, marketing, in(estor communication, registrar0s e2penses and other e2penses and other e2penses directl) attributable to the scheme$ Entry load This is a charge that is le(ied on in(estors at the time of in(estment into a scheme$ "ntr) loads are t)picall) restricted to e=uit) funds and balanced funds and ha(e the impact of reducing the net amount that is a(ailable for in(estment b) the scheme$

 E3it C&ar(e+J E3it load+ -lthough described as a charge it is reall) a penalt) for earl) encashment$ 'ot all mutual funds include this charge$ This tends to be e2pressed as a percentage of the amount to be encashed$ Some fund managers use this t)pe of charge where the underl)ing securities are illi=uid in nature or where the) do not charge an initial charge or to discourage premature redemptions from close. ended funds$ - (ariant of the e2it loads is a Contingent ;eferred Sales Charge @C;SCA where the e2it load is charged on graded basis and declines with increasing time period$

%&at i+ t&e effect of t&e+e c&ar(e+I

The effect of the initial charge is to immediatel) reduce the amount a(ailable to purchase units$ This means immediatel) after )ou in(est the (alue of )our in(estment will be below the amount )ou in(ested$ This is one reason wh) )ou should be happ) to lea(e )our capital in(ested for the medium to long term to allow possible future growth to o(ercome the effect of the initial charge$

The) will ha(e the effect of reducing the o(erall returns )ou recei(e either in the income )ou recei(e or the capital growth )ou e2perience$ This -<" is deducted from the o(erall (alue of the fund irrespecti(e of whether the fund has made a

profit or not therefore deduction of the -<" can also increase the loss the fund ma) ha(e made$

The effect of "ntr) Load would be to reduce the net amount a(ailable for in(estment b) the fund$

The effect of an "2it Load will be to reduce the actual amount )ou recei(e on encashment, which means )ou will recei(e less than market (alue of the underl)ing in(estment$ Such a charge acts as a deterrent to earl) encashment$

If I in4e+t D&at am I committin( toI

9ou are committing to in(est at least the minimum amount, which (aries from fund to fund$ #n case of funds designed for a medium or long term hori*on, )ou should also be prepared to commit )our in(estment for the appropriate time hori*on and not use capital that )ou might need in the short term, especiall)$ 8ith regard to close.ended funds, )ou should be prepared to commit funds for the complete tenor of the specific scheme$

-n) in(estment in mutual funds means that )ou are happ) to take a degree of in(estment risk in return of the potential for superior returns than can be obtained

from fi2ed deposits, in the full knowledge that this outcome is not guaranteed and that it is possible )ou could make a loss on )our in(estment$ 9ou should also consider carefull) how much )ou want to commit to an)M one t)pe of in(estment, as o(er e2posure to an) particular in(estment is not recommended$ Can I c&an(e my mind and enca+& my in4e+tment+ at any timeI

9es )ou can$ 9ou will howe(er incur an) e2it loads F C;SC as ma) be applicable and if the price of the units has mo(ed against )ou, then )ou will e2perience a capital loss$ #n case of close.ended funds, premature e2it costs can be especiall) steep$

HoD do I *eep trac* of my in4e+tmentI

Ber) easil), the price of units is a(ailable through a (ariet) of sources including newspapers, the internet @at www$amfiindia$comA, statements recei(ed from the -,C or direct en=uir) to )our HSBC <elationship ,anager$

%&at a.out ta3I

9ou should refer to the specific fund documentation for a full appreciation of the ta2 conse=uences of both the fund itself and an) effect this will ha(e on )ou personall)$ HSBC does not gi(e ta2 ad(ice and we recommend )ou consult )our usual ta2 ad(iser for fuller details as to how )ou will be personall) affected$ The ta2 benefits and implications mentioned in an) marketing material pro(ided b) the fund house are as per currentl) applicable ta2 laws and are subDect to change in future$

>7 SESTE'ATIC IN"EST'ENT P AN #SIP$

%&at i+ SIPI

-n S#% is a regular in(estment plan for purchasing units of a mutual fund scheme$ &ffered b) mutual funds to help )ou sa(e regularl)$8hen in(esting in mutual funds, )ou would normall) identif) a scheme 7 in(est a predetermined amount in it at its pre(ailing net asset (alue @'-BA$ #f )ou in(est a sum of <s$13,333 at an '-B of <s$13, )ou will recei(e 1,333 units$ The timings of )our in(estment in such a case ma) turn out to be fa(ourable or unfa(ourable$

Cnder S#%, howe(er, )our in(estment is staggered o(er a period$ #nstead of in(esting <s$13,333 at one go, )ou might consider in(esting specified amounts in a scheme at pr.specified inter(als$ 1or instance, )ou could spread out the <s$13,333 in(estment o(er 13 months, with <s$1,333 being in(ested each month$ The number of units that accrue to )ou on each periodic in(estment would depend on the '-B of the scheme pre(ailing at the time of )our purchase$ B) doing this, )ou would ha(e done awa) with the need to time the market$ S#%0s also in calculate some much needed discipline into )our in(esting habits$ $#t is Dust like a recurring deposit with the post office or bank where )ou put in e(er) month$ The difference here is that the amount is in(ested in a mutual fund$

HoD an SIP Dor*+I -n S#% allows )ou to take part in the stock market without tr)ing to second guess mo(ements$ -n S#% means )ou to commit )ourself to in(esting a fi2ed amount e(er) month$ Let <s$1333 8hen the '-B is high, )ou will get fewer units$ 8hen it drops, )ou will get more Date NA" Appro3 num.er of unit+ you Dill (et at R+76??? Fan 6 !e. 6 'ar 6 Apr 6 'ay 6 Fun 6 6? 6?7@ 66 B7@ B 667@ 6?? B@70> B?7B? 6?@701 666766 A17B@

8ithin si2 months, )ou would ha(e !,865 units b) in(esting Dust <s$1333 e(er) month$

HoD an SIP +core+I

#t makes )ou disciplined in )our sa(ings$ "(er) month )ou are forced to keep assured amount$ This could either be debited directl) from )our account or )ou could gi(e mutual fund post.dated che=ues$ -s )ou see abo(e, it helps )ou make mone) o(er the long term$ Since )ou get more when the '-B drops 7 fewer when it rises, the cost a(erage out o(er time$ So o(er all the ups 7 downs of the market without an) drastic losses -lso, a number of mutual funds do not charge an entr) load if )ou opt for an S#% a percentage of the amount )ou are in(esting$ 7 if )ou do not e2it @sell )our units a )ear of bu)ing the units, )ou do not ha(e to pa) an e2it loadA @same as an entr) load, e2cept this is charged when )ou sell )our unitsA$ #f, howe(er, )ou do sell )our units within a )ear, )ou would be charged an e2it low pa)s to sta) in(ested for the long.run$ The best wa) to enter a mutual fund is (ia an S#%$ But to get the benefit of an S#% at least a three.)ear time frame is needed when )ou won0t touch )our mone)$ 5$ INSURANCE In+urance, in law and economies, is a form of risk management primaril) used to hedge against the risk of a contingent loss$ #nsurance is defined as the e=uitable transfer of the risk of a potential loss, from one entit) to another, in e2change for a premium$ In+urer9 in economics, is the compan) that sells the insurance$ In+urance rate is a factor used to determine the amount, called the Premium9 to be charged for a certain amount of insurance co(erage$ <isk management, the practice of appraising and controlling risk, has e(ol(ed as a discrete field of stud) and practice$

1$ A lar(e num.er of &omo(eneou+ e3po+ure unit+$ The (ast maDorit) of insurance policies are pro(ided for indi(idual members of (er) large classes$ -utomobile insurance, for e2ample, co(ered about 14! million automobiles in the Cnited States in :335 The e2istence of a large number of homogeneous e2posure units allows insurers to benefit from the so.called Glaw of large numbers,H which is effect states that as the number of e2posure unit0s increases, the actual results are increasingl) likel) to become close to e2pected results$ There are e2ceptions to this criterion$ Llo)ds of London is famous for insuring the life or health of actors, actresses and sports figures$ Satellite Launch insurance co(ers e(ents that are infre=uent, large commercial propert) policies ma) insure e2ceptional properties for which there are no Phomogeneous0 e2posure units$ ;espite failing of this criterion, man) e2posures like these are generall) considered to be insurable

a$ Definite o++$ The e(ent that gi(es rise to the loss that is subDect to insurance should, at least in principle, take placed at a known time, in a known place, and from a known cause$ The classic e2ample is death of an insured on a life insurance polic)$ 1ire, automobile accidents, and worker inDuries ma) all easil) meet this criterion$ &ther t)pes of losses ma) onl) be definite in theor), &ccupational disease, for instance, ma) in(ol(e prolonged e2posure to inDurious conditions where no specific time, place or cause is identifiable , #deall), the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information,could obDecti(el) (erif) all three elements$

:$ Accidental o++$ The e(ent that constitute the trigger of a claim should be fortuitous, or at least outside the control of the beneficiar) of the insurance$ The loss should be Ppure,0 in the sense that it results from an e(ent for which there is onl) the opportunit) for cost$ "(ents that contain speculati(e elements, such as ordinar) business risks, are generall) not considered insurable$ >$ ar(e o++$ The si*e of the loss must be meaningful from the perspecti(e of the insured$ #nsurance %remiums need to co(er both the e2pected cost of losses, plus the cost of issuing and administering the polic), adDusting losses, and suppl)ing the capital needed to reasonable assure that the insurer will be able to pa) claims$ 1or small losses these latter costs ma) be se(eral times the si*e of the e2pected cost of losses$ There is little point in pa)ing such costs unless the protection offered has real (alue to a bu)er$ 5$ Afforda.le Premium$ #f the likelihood of an insured e(ent is so high, or the cost of the e(ent so large, that the resulting premium is large relati(e to the amount of protection offered, it is not likel) that an)one will bu) insurance, e(en if on offer$ 1urther, as the accounting profession formall) recogni*es in financial accounting standards @See 1-S 11> for e2ampleA, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer$ #f there is no such chance of loss, the transaction ma) ha(e the form of insurance, but not the substance$ !$ Calcula.le o++$ There are two elements that must be at least estimatable, if not formall) calculable e2ercise, while cost has more to

do with the abilit) of a reasonable presented under that polic) to make a reasonabl) definite and obDecti(e of the amount of the loss reco(erable as a result of the claim$ $ imited ri+* of cata+trop&ically lar(e lo++e+$ The "ssential risk is often aggregation$ #f the same e(ent can cause losses to numerous polic)holders of the same insurer, the abilit) of that insurer to issuer policies becomes constrained, not b) factors surrounding the indi(idual characteristics of a gi(en polic)holder, but b) the factors surrounding the sum of all polic)holders so e2posed$ T)picall), insurers prefer to limit their e2posure to a loss from a single e(ent to some small portion of their capital base, on the order of !N$ 8here the loss can be aggregated, or an indi(idual polic) could produce e2ceptionall) large claims, the capital constraint will restrict an insurer0s appetite for additional polic)holders$ The classic e2ample is earth=uake insurance, where the abilit) of an underwriter to issue a polic) depends on the number and si*e of the policies that it has alread) underwritten$ 8ind insurance in hurricane *ones, particularl) along coast lines, is another e2ample of this phenomenon$ #n e2treme cases, the aggregation can affect the entire industr), since the combined capital of insurers and reinsures can be small compared to the needs of potential polic)holders in areas e2posed to aggregation risk$ #n commercial fire insurance it is possible to find single properties whose total e2posed (alue is well in e2cess of an) insurers, or are insured b) a single insurer who s)ndicates the risk into the reinsurance market$

In+urer;+ .u+ine++ model

%rofit Q earned premium R in(estment income . incurred loss . underwriting e2penses$ #nsurers make mone) in two wa)s? @1A through underwriting, the process b) insurers selects the risks to insure and decide how much in premiums to charge for accepting those risks and @:A b) in(esting the premiums the) collect from insured0s$

The most difficult aspect of the insurance business is the underwriting of policies$ Csing a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingl)$ To this end, insurers use actuarial science to =uantif) the risks the) are willing to assume and the premium the) will charge to assume them$ ;ata is anal)*ed to fairl) accuratel) proDect the rate of future claims based on a based on a gi(en risk$ -ctuarial science uses statistics principles aura used to determine an insurer0s o(erall e2posure$ Cpon termination of a gi(en polic), the amount of premium collected and the in(estment gains thereon minus the amount paid out in claims is the insurer0s underwriting profit on that polic)$ &f course, from the insurer0s perspecti(e, some policies are winners @i$e$, the insurers pa)s out more in claims and e2penses than it recei(es in premiums and in(estment incomeA

Type+ of in+urance

-n) risk that can be =uantified can potentiall) be insured$ Specific kinds of risk that ma) gi(e rise to claims are known as GperilsH$ -n insurance polic) will set out in details which perils are co(ered b) the polic) and which are not$ Below is a @non.e2hausti(eA list of the man) different t)pes of insurance that e2ist$ - single polic) ma) co(er risks in one or more of the categories set forth below$ 1or e2ample, auto insurance would t)picall) co(er both propert) risk @co(ering the risk of theft or damage to the carA and liabilit) risk @co(ering legal claims form causing an accidentA$ - homeowner0s insurance polic) in the C$S$ t)picall) includes propert) insurance co(ering damage to the home and owner0s belongings, liabilit) insurance co(ering certain legal claims against the owner, and e(en a small amount of health insurance for medical e2penses of guests who are inDured on the owner0s propert)$

Automo.ile in+urance, know in the C+ as motor insurance, is probabl) the most common from of insurance and ma) co(er both legal liabilit) claims against the dri(er and loss of or damage to the insured0s (ehicle itself$ Throughout most of the Cnited States an auto insurance polic) is re=uired to legall) operate a motor (ehicle on public roads$ #n some Durisdictions, bodil) inDur) compensation for automobile accident (ictims has been changed to a no.fault s)stem, which reduces or eliminates the abilit) to sure for compensation but pro(ides automatic eligibilit) for benefits$ A4iation in+urance insures against hull, spares, deductible, hull war and liabilit) risks$

 Bu+ine++ in+urance can be an) kind of insurance that protects businesses against risks$ Some principal subt)pes of business insurance are @aA the (arious kinds of professional liability insurance, also called professional indemnit) insurance, which are discussed below under that nameM and @bA the business owners polic) @B&%A, which bundles into one polic) man) of the kinds of co(erage that a business owner needs, in a wa) analogous to how homeowners insurance bundles the co(erage0s that a homeowner needs$

Ca+ualty in+urance insures against accidents, not necessaril) tied to an) specific propert)$

Credit in+urance repa)s some or all of a loan back when certain things happen to the borrower such as unemplo)ment, disabilit), or death$ ,ortgage insurance @which sees belowA is a form of credit insurance, although the name credit insurance more often is used to refer to policies that co(er other kinds of debt$

Crime in+urance insures the polic)holder against losses from the criminal acts of third parties$

HSBC TIE/UP %ITH TATA AIG

Tata -#G Life #nsurance Compan) limited@Tata -#G lifeA is a Doint (enture compan), formed b) the Tata Group and -merican #nternational Group, #nc$ @-#GA$ Tata -#G life combines the Tata Group0s pre.eminent leadership position in #ndia and -#G0s global presence as the world0s leading international insurance and financial ser(ices organi*ation$ The Tata Group holds 45 percent stake in the insurance (enture with -#G holding the balance : percent$ Tata -#G life pro(ides insurance solutions to indi(iduals and corporates$ Tata -#G life insurance compan) was licensed to operate in #ndia on 1ebruar) 1:,:331 and started operations on -pril 1,:331 A7 UNIT IN5ED INSURANCE P AN #U IP$

Cnit linked insurance products are different from the traditional insurance products and are subDect to the risk factors of fluctuations in in(estment returns and possibilit) of increase in changes$

The performance of the managed portfolios and funds is not guaranteed and the fund (alue ma) increase or decrease in accordance with the future e2perience of the managed portfolios and managed funds$ The fund (alue during the period of continuance of polic) and at maturit) ma) be more or less than the premiums in(ested depending on market performance$ %ast returns are not necessaril) a guide to future performance$

The premium paid in unit linked life insurance policies are subDect to in(estment risks associated with capital markets and the '-Bs of the units ma) go up or down based on the performance of the funds and factors influencing the capital market and the insured is responsible for hisFher decisions$

Bu)ing a life insurance polic) is a long.term commitment$ -n earl) termination of the polic) usuall) in(ol(es high costs and the surrender (alue pa)able ma) be less than the total premiums paid$ Tata -#G Life #nsurance Compan) Limited is onl) the name of the insurance compan)$ #n(est -ssure ## is onl) the name of the Cnit Linked Life #nsurance Contract and does not in an) wa) indicate the =ualit) of the contract, future prospects or returns$

The (arious funds offered under this contract are the names of the funds and do not an) wa)s indicate the =ualit) of the contract, future prospects and returns$

B7 In4e+t A++ure II

-n inspirational that translates into a host of inno(ati(e products for )ou$ Tata -#G Life introduces #n(est -ssure ##, a uni=ue in(estment linked insurance plan for fle2ibilit) and protection$ Gi(en a choice, man) people would like to increase the earning potential of their insurance premium b) deciding their own in(estment and risk limitations$ #n(est -ssure ##, a uni=ue, fle2ible insurance plan combines

to e2ploit the upside of market returns b) in(esting in different kinds of securities through multiple fund options$

8hatLs more, )ou can direct the in(estments b) creating )our own in(estment fund portfolio from a range of options to suit )our needs and preferences$

EnKoy 'ultiple Benefit+/IN"ESTASSURE II

%ro(ides securit) to )our famil) in case of the Life #nsured0s unfortunate demise$ Gi(es )ou the fle2ibilit) to choose )our funds based on )our risk profile$ "nables )ou to enDo) marked.linked returns with a potential for higher growth$

C7 In4e+t A++ure Gold

#n(est -ssure Gold, a non.participating whole Life Cnit Linked %lan, which offers )ou the uni=ue ad(antage of combining the protection and ta2 ad(antages of life insurance with the attracti(e prospects of in(esting in different kinds of securities through multiple fund options$ -nd )ou can keep reaping the benefits for a lifetimeS 8hat0s more, )ou can direct the in(estments b) creating )our own in(estment fund portfolio from a range of options to suit )our needs and performances$

5ey Benefit+ Choose )our premium pa)ment termM fi(e )ears or for the entire duration of the polic) "ntr) age? >3 da)s to 43)ears Benefit period? for the entire life till 133 )ears of age 1acilit) to increase the premium through Top.Cp %remium %ro(ides securit) to )our famil) in case of )our unfortunate death 1acilit) to increase the Sum -ssured through Top.Cp %remium Gi(es )ou the fle2ibilit) to choose )our fund based on )our risk profile O whole Life ,id Cap "=uit), whole Life income, and whole life Short Term 1i2ed #ncome$ 9ou ma) choose to switch between the 1unds, an)time

 "nables )ou to enDo) market.linked returns with a potential for higher growth &pportunit) to bring )ou additional income on funds that might ha(e otherwise gi(en )ou minimum returns in )our sa(ings account, subDect to market performance Lo)alt) benefit? -dditional 3$:!N of units under the <egular %remium -ccount e(er) fi(e )ears, pro(ided the polic) is in force$

In4e+t A++ure Gold Offer+ you

1le2ibilit) of Choosing The -mount of ;eath Co(er 1le2ibilit) of #ncreasing Sum -ssured Co(er 1or the 8hole of Life Lo)alt) -dditions 1le2ibilit) in %a)ing %remiums 1le2ibilit) of Choosing )our #n(estment 1und 1le2ibilit) of Switching Between 1unds 1le2ibilit) of Topping.Cp )our premium ;iscontinuance of %remium within Three 9ears 1rom #nception 1le2ibilit) of a %remium Holida) 1le2ibilit) of %artial withdrawal 1le2ibilit) of %olic) <einstatement 1le2ibilit) of %remium ,ode

 1le2ibilit) of -dding <ider

D7 'a&a ife2 T&e %&ole ife Plan Tata -#G Life0s ,ahaLife plan is trul) one of a kind$ 1or a start, it offers )ou wa) too man) benefits?

&nl) a 1: )ear premium pa)ing period for lifetime co(erage$ Guaranteed annual pa)ment for life from the 1:th polic) anni(ersar) onwards$ Ta2 Ofree$ &n death or at maturit) at age 133, the entire sum assured will be paid$ Ta2. free$ Cash di(idends from the
th

polic) anni(ersar) onwards$ Ta2.free$

%remiums paid eligible for ta2 e2emption benefit$ -s per current ta2 laws$

%&o i+ eli(i.le for t&i+ policyI The minimum age of eligibilit) for this polic) is >3 da)s, which means, if )ou bu) this polic) for )our child )ou onl) ha(e to pa) premiums for 1: )ears, after which the child gets an income as well as co(erage for his entire life$ The ma2imum age if eligibilit) is !3 )ears, which makes it ideal for )ou as well, because it pro(ides both a pension and lifetime co(erage$

S%OT ANA ESIS STRENGTHS2/ 1$ Brand Name? The biggest strength is the tag of HSBC is going to be the largest group of ,'C0s$ :$ Compati.le Price? %rices of different schemes of HSBC are much more compatible than others$ >7 Di4er+ified Sc&eme+2 8e ha(e di(ersified schemes, which is an e2ception case of HSBC$ 5$ e++ Ri+*? &ur debt schemes are 133N free form market risk$ "(en as our portfolio is that di(ersified so e=uities are also less risk) than others$ @7 Ea+y procedure+ for account openin( too2 8e ha(e an eas) s)stem for opening the account as it includes in(estment 7 being named as sa(ing account for the costumer future benefits$ 17 De.it cum AT' card facility2 The main ad(antage of HSBC0s ;ebit cum -T, card is that )ou can access this card through an) B#S- supported -T,0s 7 withdraw )our amount, without an) single charge to be paid$

%EA5NESS2/ 1 Prone to 'ar*et Ri+*? ,utual 1unds depend on o(erall macroeconomic condition and market scenario$ : Tou(& Competition+? There is a (er) tough competition because of large number of -sset ,anagement Companies$

>

Incapa.ility of Cu+tomer+2 HSBC onl) pro(ides : t)pes of account opening of which one is %B@%ower Bantage -ccountA under which an a=b of 1 lakh is to be maintained 7 the second one is %remier -ccount , under which an a=b of :! lakh is to be maintained$ This is sometimes be)ond the reach of a middle class person$

OPPORTUNITIES2/ 1 Hoardin(? ,ost of the #ndians ha(e black mone) that too in huge amount i$e$ the do not ha(e mone) in banks, so approaching them is beneficial, so that through the opening of this account the) can make further in(estment$

Indian Capital 'ar*et i+ GroDin(? So more 7 more new in(estors are interested in in(estments$

>

Tailor 'ade Product+2 8e ha(e tailor made products like sector specified schemes 7 e(en di(ersified schemes$

Branc& E3pan+ion? Large no$ of branches are opening da) b) da) and e(en we are traping the countries ha(ing almost same t)pe of socio.economic condition 7 e(en same culture etc$

THREATS2/ 1 Tou(& Competition? -s there are so man) banks ha(ing almost same kind of schemes, so it0s tough to compete with$

UnaDarene++2 ,aDorit) of population is not aware of HSBC brand name and e(en because of other banking facilities which are much cheaper than HSBC0s ser(ices, so it0s hard to con(ince people$

>

C&an(in( Scenario? &ur market scenario is changing da).b).da) i$e$ our market is fluctuating, so this makes in(estor hard to in(est$

Re4ieD of iterature

Re4ieD of iterature

1inancial ,arket issues ha(e come to be seen as central to e(er) polic) initiati(e in education around the world$ 8hile the GhotH issues in education in(ariabl) focus on student achie(ement, funding for education, and issues of access and =ualit), the factors which concern the recruitment, preparation, hiring, assessment and professional de(elopment of the workforce are ke) to understanding the issues themsel(es$ 9et it is onl) in the last decade that education s)stems ha(e been considering the totalit) of the issues$ 1or some time, there has been research and discussion about indi(idual components K such as professional de(elopment K but it is during the 1663s that research and polic) anal)sts ha(e been e2amining how the components fit together? e2amining, in fact, a P1inancial strateg)0 for the teaching profession$ &ur re(iew of the recent literature has been undertaken in that conte2t$ 8hile we e2amine the (arious component parts of a human resource strateg), it is the approach to the whole s)stem that pro(ides the richest research, and leads to the most effecti(e practice$ #n this introduction, we describe our framework, our methodolog), and pro(ide a general commentar) on the direction of the findings

in this re(iew$ The remaining sections of this report pro(ide details on the literature we ha(e re(iewed under the headings of the (arious component parts$ PoDered .y2 An*it "erma

O.Kecti4e Of T&e Study

OBFECTI"E O! THE STUDE

O.Kecti4e2 The primar) obDecti(e was to anal)sis the market and find out the potential customer and moti(ate or promote them to in(est their mone) in modern #n(estment plan rather than traditional #n(estment plan$ T&e +econdary o.Kecti4e Dere2

To do the comparati(e anal)sis of the two options and to bring forth, thus to the potential customer$ To create awareness among the customer To create marketing awareness of the #n(estment product and also identif) the potential for this product$ To anal)*e the marketing strateg) of the competitors To anal)*e #n(estment pattern$

Scope of T&e Study

SCOPE O! THE STUDE

This stud) is limited to the consumers with in 'ew ;elhi$ The stud) will be able to re(eal the preferences, needs, satisfaction of the customers regarding the banking ser(ices, #t also help banks to know whether the e2isting products or ser(ices the are offering are reall) satisf)ing the customer0s needs$

Re+earc& 'et&odolo(y

RESEARCH 'ETHODO OGE

The stud) undertaken b) me was regarding a detailed anal)sis of ,-<+"T#'G -'; %<&,&T#&' of HSBC products, stud)ing its current scenario and stud)ing the challenges and difficulties faced b) HSBC bank$ SA'P E P AN2 Primary Data2 The primar) data are which are collected afresh and for the first time, and thus happen to be original in character$ - primar) sur(e) was conducted at ;elhi$ The sur(e) was carried out at (arious le(els 7 the target group was retail in(estors, business men, builders, industrialists, e2porters, doctors etc$ Euestionnaires were used as an instrument to collect the primar) data$ This data was obtained b) (arious promotion schemes like. CANNOPIES. we put canopies in front of (arious financial institutions like banks, commercial places, and entertainment places like -garwal tower, Shastri circle, Corporate hub etc$ There people approach us and we gi(e them the =uestionnaire to fill and pro(ide the details of HSBC products$ APPROACHING TO INDUSTRIA UNITS . 8e approach to industrial areas like ,#-, B-S'#, H#-, Boranada industrial area and gi(e the =uestionnaire to fill and e2plain the details of (arious HSBC products$

Secondary +ource+2 The Secondar) data are those, which ha(e alread) been collected and being processed through the statistical process$ 8e got the secondar) data through

PRE"IOUS TRANSACTION RECORDS/

i$ 8e got the records of those people who ha(e alread) in(ested in HSBC$ ii$ Through director). 8e got the records of "2porters, Businessmen, architects etc$ 'ar*etin( Approac&?

o ;irectl) meeting them o Through telephonic calls o Through Canopies Population Definition "lement? <etail #n(estors, Business ,en, Builders, #ndustrialists, "2porters, Senior Citi*ens, and others$ Sample Cnit. ;elhi Sampling ,ethod. Simple <andom Sampling Sampling Si*e. Based on ages, income area $133 persons

 ;ata collection. through directories, %re(ious records through friends and relati(es

'ode+ of 'ar*etin( ) Promotion Directly Approac&in(2/ 8e directl) approach people to in(est like builders, in(estors, e2porters, businessmen, 7 e(en general mass$

imitation

I'ITATIONS

UNCERTAINITE O! 'AR5ET2/ HSBC0s securities in(estments are subDect to market risks and there is no assurance or guarantee that the obDecti(es of the Scheme will be achie(ed$ -s with an) in(estment in securities, the '-B of the units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets$

AC5 O! PUB IC A%ARENESS2/ #n ;elhi, HSBC has Dust completed > )ears 7 is in infantr) stage so people are unaware of it$ So people are afraid to in(est 7 the) onl) trust of some go(t funds like CT#, SB#, Go(t$ securities$8hich gi(e assured returnsT

HIGH CO'PETITION2/

;ue to the e2istence of large number of -,C0s 7 banks the competition is high$ #n(estors are confused that where the) ha(e to in(est and where not$ &ther banks also offers the same t)pe of productFschemes which di(ersified the in(estors$

RIGID AND TRADITIONA STRUCTURE?. The people belie(e in(esting in Bank 1;0s and %ost &ffice sa(ing and are reluctant to in(est in ,utual 1und$ %eople like to secure mone) in terms of lending to the people on high interest the) meant their amount is safe, or further to in(est in their own business which will gi(e them high return ob(iousl)$

;ata -nal)sis 7 #nterpretation

ANA ESIS ) INTERPRETATION

EGuity -@ De.t 1?

Ca+&

6@

#n the abo(e table 4! in(estors in "=uit), 3 in ;ebt, 7 1! in Cash$ ;ebt instruments are. Compan) fi2ed deposits, bonds, Go(ernment Securities fund, and Go(t$ Sa(ing schemes, %ension Schemes "=uit) #nstruments are. "=uit) funds di(ersified, "=uit) funds Sectoral %lan, Balanced 1und @"=uit) %ortionA, "=uit) #%&$ Cash #nstruments. Li=uid 1unds, Go(ernment Securities, #ncome 1unds long Term @#ncluding ,#%A$ -ggressi(e in(estors comprises of !3N in "=uit), 13N in Cash, 53N in ;ebt$

De.t

B?

EGuity ,@ Ca+& 6@

#n the abo(e table 5! in(estors in(est in "=uit), 63 in ;ebt, 7 1! in Cash$ ;ebt instruments are. Compan) fi2ed deposits, bonds, Go(ernment Securities fund, and Go(t$ Sa(ing schemes, %ension Schemes$ "=uit) #nstruments are. "=uit) funds di(ersified, "=uit) 1unds Sectoral %lan, Balanced 1und @"=uit) %ortionA, "=uit) #%&$ Cash #nstrument. Li=uid 1unds, Go(ernment Securities, #ncome 1unds Long term @including ,#%A$F ,oderate in(estor comprises of 3 N in ;ebt, 13N in cash, and >3N in "=uit).

De.t Ca+&

-? 6?

EGuity 0?

#n the abo(e table :3 in(estors in(est in "=uit), 43 in ;ebt, 713 in Cash

;ebt #nstruments are. Compan) fi2ed deposits, bonds, Go(ernment Securities fund, and Go(t$ Sa(ing Schemes, %ension Schemes$ "=uit) #nstruments are. "=uit) funds di(ersified, "=uit) funds Sectoral %lan, Balanced 1und @"=uit) %ortionA, "=uit) #%&$ Cash #nstruments. Li=uid 1unds, Go(ernment Securities, and #ncome 1unds Long Term @including ,#%A$ Conser(ati(e #n(estors comprises of 43N in ;ebt, 13N in Cash, and :3N in "=uit)$

De.t Ca+&

60? 6@

EGuity 6@

#n the abo(e table 1! in(estors in(est in "=uit), 1:3 in ;ebt, 71:3 in Cash$ ;ebt #nstruments are. Compan) fi2ed deposits, bonds, Go(ernment Securities 1und, and Go(t Sa(ing Schemes, %ensions Schemes$ "=uit) #nstruments are. "=uit) 1unds di(ersified, "=uit) 1unds Sectoral %lan, Balanced 1und @"=uit) portionA, and "=uit) #%&$ Cash #nstruments. Li=uid 1unds, Go(ernment Securities, and #ncome 1unds Long Term @including ,#%A Ber) conser(ati(e in(estors comprises of 83N in debt, 13N in Cash 7 13 N in "=uit)

1?5/6 A5H 6 A5H/0 A5H 0 A5H/> A5H > A5H/ABO"E

10 ,A 0, 61

#n the abo(e table : in(estors are those who fell in the income slab from 3 thousand to 1 lakh, 58 in(estors fell in the income slab form 1 lakh.:lakh, :5 #n(estor0s fell in the income slab from : lakh.>lakh, 1 in(estor0s fell in the income slab of abo(e > lakhs$

A((re++i4e In4e+tor+ 'oderate In4e+tor+ Con+er4ati4e In4e+tor+ "ery Con+er4ati4e In4e+tor+

6A 1? ,0@

18 in(estors are found -ggressi(e, 3 in(estors are found ,oderate, and 54 #n(estors are found Conser(ati(e 7 :! #n(estors are found (er) conser(ati(e in the sur(e)$

up to @< @</6?< 'ore T&an 6?<

>A 1B ,>

#n the abo(e table >8 #n(estors up to !N of their income, 6 in(estors in(est up to !N.13N of their income 7 5> in(estors in(est more than 13N of their income$

#n the abo(e graph :!N of total sur(e)ed in(estors in(est up to !N monthl)$ 5 N of the total sur(e)ed in(estors in(est up to !N.13N monthl)$ :6N of the total sur(e)ed in(estors in(est more than 13N monthl)$

6/@ Eear+ @/6? Eear+ 6? Eear+ ) A.o4e

0, @@ -6

1 N of the in(estors were in(esting since last 1.! )ears$ >4N of the in(estors were in(esting since last !.13 )ears$ 5>N of the in(estors were in(esting since last 13 )ears 7 abo(e$

Steadily At a4era(e !a+t

0? B0 >A

#n the abo(e table :3 in(estors e2pected their in(estment to grow steadil)$

6: in(estors e2pected their in(estment to grow at a a(erage rate$ >8 in(estors e2pected their in(estment to grow at a fast rate$ #n the abo(e graph 1>N of the sur(e)ed in(estors e2pected their in(estments to grow steadil) :N of the sur(e)ed in(estors e2pected their in(estments to grow at an a(erage rate$ :!N of the sur(e)ed in(estors e2pected their in(estments to grow at a fast rate$

Safety of Principal Earnin( return a.o4e inflation rate Earnin( Hi(& return+

00 B1 >0

#n the abo(e table :: sur(e)ed in(estors ga(e more importance to safet) of principal, 6 in(estors ga(e more importance to earning returns abo(e inflation rate, >: in(estors ga(e more importance to earning high returns$ 1!N of the sur(e)ed in(estors had a primar) moti(e of the safet) of principal, 5N of the sur(e)ed in(estors were more concerned about earning returns abo(e inflation rate$ :1N of the sur(e)ed in(estors were more concerned about earning high returns$

Nil A4era(e Good

60 6?, >,

#n the abo(e table 1: in(estors were found with no knowledge about (arious in(estment schemes, 135 in(estors were found with a(erage knowledge about (arious in(estment schemes, >5 in(estors were found with good knowledge about (arious in(estment schemes$ #n the abo(e graph out of total sur(e)ed in(estors 8N were found with nil in(estment knowledge, 6N were found with a(erage in(estment knowledge, :>N were found with good in(estment knowledge$

A.o4e @? BetDeen >?/@? BetDeen 0?/>?

-1 ,A 01

#n this abo(e table out of the total sur(e)ed in(estors 4 in(estors are abo(e !3 )ears, 58 are between >3.!3 )ears 7 : in(estors are between :3.>3 )ears$ #n the abo(e graph !1N were abo(e !3 )ears 14N were between :3.>3, 7 >:N were between >3.!3$

Secured Not Secured Doe+nLt affect

BA 0A 0,

#n the abo(e table out of the total sur(e)ed in(estors 68 in(estors were found with Dob securit), :8 in(estors were found with unsecured Dobs 7 :5 in(estors were found in a no affect status$ #n the abo(e graph !N of the in(estors were in a state of secured Dobs, 16N of the in(estors were in the state of unsecured Dobs 7 1 N of the in(estors were in the state where this factor doesn0t affect them$

'ore t&an 0 6/0 dependent+ None

BA >0 0?

#n the abo(e table out of the total sur(e)ed in(estors 68 in(estors were those who are ha(ing more than : dependents, >: in(estors were those who are ha(ing 1.: dependents, :3 in(estors were those who didn0t had an) dependent$ #n the abo(e graph N in(estors were those who are ha(ing more than : dependents, :1N in(estors were those who are ha(ing 1.: dependents 7 1>N in(estors are those who ha(ing no dependents$

Educated "ieD !riendly Ad4ice Gue++ %or*

00 -> @@

#n the abo(e table out of the total sur(e)ed in(estors :: in(estors took educated (iew before in(estment, 4> took friendl) ad(ice before in(estment 7 !! made guess work$ #n the abo(e graph 58N took friendl) ad(ice, 1!N took educated (iew 7 >4N made guess work$

%it&draD %ait In4e+t

0A -B ,>

&ut of the total sur(e)ed in(estors :8 in(estors were found in a state of withdrawal of mone), 46 in(estors were found out in the state of wait 7 watch 7 5> in(estors were found out in the state of more in(estment in the market if the market crashes down$ #n the abo(e graph !:N will wait 7 watch :6N will in(est more 7 16N in(estors will withdraw their mone)$

Conclu+ion

CONC USION

1rom the anal)sis of the responses recei(ed from the in(estors in ;elhi, a maDorit) of in(estors are found to be conscious and enlightened regarding their in(estments, return 7 growth$

8e ha(e (er) good market in ;elhi which comprises potential in(estors but due to lack of basic promotion 7 publicit) these in(estors are not full) aware of our compan) 7 whosoe(er is aware of our compan) their in(estment decisions are done on the basis of securit), anal)sis of risk )ield 7 return few parameters like ;emographic, %h)siological, #ncome, etc$ So m) findings are that HSBC market should make little more efforts to trap the potential in(estors, like ,edia -d(ertisement, %aper -d(ertisement, Seminars 7 Business ,eets 7 building a good relationship with potential business, moreo(er friendl) guidance$

RECO''ENDATIONS

RECO''ENDATIONS

1$ The in(estors abo(e the age of !3 )ears must be taken into consideration as the) are ha(ing great potential regarding in(estment$ :$ HSBC must la) down some sound strategies to trap more customers b) gi(ing them more commission in comparison to other in(estment centers$ >$ HSBC must use marketing tools like point of purchase, ad(ertisement through ,ass ,edia like loading 'ewspapers, ,aga*ines, Tele(ision, "2hibition, 1airs, S,S on ,obiles, ad(ertisement on the internet$ 5$ The organi*ation is lacking on the parameters of moti(ation$ #t is recommended that the organi*ation must adopt the concept of moti(ation$ !$ HSBC should organi*e programs for customer awareness in de(eloping areas and establish a confidence and belief among the customers residing there$

BIB IOGRAPHE

BIBLIOGRAPHY:BOO5S C&&a.ra7 T7N77 MMarketing ManagementND&anpati Rai ) Co7 p4t7

 Gupta7 C7B77 MMarketing Management Sultan c&and ) Son+ Rao9" S P9 Marketing Management Text and Cases %EB SITES http?FFwww$HSBC$in http?FFwww$realtimes$com http?FFwww$te2as533$com http?FFpublib$boulder$ibm$com

Anne3ure

HUESTIONNAIRE

1$ '-,"?

:$ -;;<"SS?

>$ %H&'" '&? @<A @&A

5$ -G"? :3.>3 >3.!3 -bo(e !3

!$ %<&1"SS#&'? "ntrepreneur #ndustrialist %ri(ate /ob "2porter Go(ernment /ob

$ #'C&," L"B"L? 3,333 O 1, 33,333 :, 33,333 O >, 33,333

 1, 33,333 O :, 33,333

-bo(e >, 33,333

4$ 1-,#L9 ST-TCS? ;ependents 'on.;ependents

8$ Ha(e )ou e(er in(ested in the marketT 9es 'o

#f 9es, 8hat is )our %ortfolioT a$ b$ c$ d$ ,utual 1und #nsurance Shares &thers

6$ -re )ou aware of (arious HSBC0s in(estment schemesT 'il -(erage 1ull)

13$Ha(e )ou e(er in(ested in HSBCT 9es 'o

#f )es, )ou0re ;i(ersification @,ention )our preferencesA 1$ "=uit)?

:$ ;ebt? >$ Cash?

11$%lease tick, # -m 1irst time #n(estor <egular

1:$How long )ou are in(esting in marketT a$ 1.! )ears b$ !.13 )ears c$ -bo(e 13 )ears 1>$9ou made in(ested through? 9our own Through broker Through ;istribution house others

15$-re )ou? Long.term in(estor Short.term in(estor

1!$8hat would )ou take into account while in(estingT

a$ Safet) principle b$ "arning high returns c$ "arning return abo(e inflation rate 1 $Biews of the in(estor O if the stock market crashes down? a$ 8ait and 8atch b$ State of withdrawal c$ State of more in(estment 14$8hat N of )our income would )ou like to in(estT a$ Cp to !N b$ !N.13N c$ -bo(e 13N