TITLE

FINANCIAL ADVISORY

OBJECTIVES:

To study client profiling. To study how to dessiminate the valid information to the customer through system To study the benefits of the system to the company and the customer. Tp give suggestions for dessimination of valid information to the customer.

THE FINANCIAL SERVICE INDUSTRY The financial services industry includes firms that are engaged in activities such as investing, lending, insurance, securities trading and securities issuance. This is not an exhaustive list, but these is companies can be characterized as being in one or more of the following line of business: Banking Insurance Securities Brokerage Investment Banking Securities Trading Investment management (or money management) Financial world is complex.There are plenty of information required and plenty of information available as well,therefore it becomes a problem for an individual to decide where to invest and how much to invest. To solve this problem there are many companies which provide advisory services.the correct information has to be given to the correct individual i.e different investors or traders are interested in different financial products.Financial advisor, is a professional who renders financial services to individuals, businesses and governments. This can involve investment advice, which may include pension planning, and/or advice on life insurance and other insurances such as income protection insurance, critical illness insurance etc., and/or advice on mortgages. Ideally, the financial adviser helps the client maintain the desired balance of investment income, capital gains, and acceptable level of risk by using proper asset allocation. Financial advisers use stock, bonds, mutual funds, real estate investment trusts (REITs), options, futures, notes, and insurance products to meet the needs of their clients. If they receive unwanted information in which they are not interested,the customer gets irritated and the information sent by the company becomes useless.To simplify this complexity ANANDRATHI is planning to develop a system through which valid information will be dessiminated to the customer according to his interest through sms/mail/calls as per the clients requirement.The requirement for the system also arises as the number of clients is large and to reach out the masses.

ABOUT ANAND RATHI AnandRathi (AR) is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance, structured products - all of which are supported by powerful research teams. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporates and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. In year 2007 Citigroup Venture Capital International joined the group as a financial partner.

AR CORE STRENGTHS Breadth of Services: In line with its client-centric philosophy, the firm offers to its clients the entire spectrum of financial services ranging from brokerage services in equities and commodities, distribution of mutual funds, IPOs and insurance products, real estate, investment banking, merger and acquisitions, corporate finance and corporate advisory. Clients deal with a relationship manager who leverages and brings together the product specialists from across the firm to create an optimum solution to the client needs. MANAGEMENT TEAM AR brings together a highly professional core management team that comprises of individuals with extensive business as well as industry experience. In-Depth Research: Our research expertise is at the core of the value proposition that we offer to our clients. Research teams across the firm continuously track various markets and products. The aim is however common - to go far deeper than others, to deliver incisive insights and ideas and be accountable for results.

ANAND RATHI SERVICES

1. BROKERAGE & DISTRIBUTION SERVICES Equity & Derivatives Brokerage: AnandRathi provides end-to-end equity solutions to institutional and individual investors. Consistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established us a competent and reliable research unit across the country. Clients can trade through us online on BSE and NSE for both equities and derivatives. They are supported by dedicated sales & trading teams in our trading desks across the country. Research and investment ideas can be accessed by clients either through their designated dealers, email, web or SMS. Mutual Funds: AR is one of India's top mutual fund distribution houses. Our success lies in our philosophy of providing consistently superior, independent and unbiased advice to our clients backed by in-depth research. We firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile. Depository Services: AR Depository Services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. Our depository services include settlement, clearing and custody of securities, registration of shares and dematerialization. We offer you daily updated internet access to your holding statement and transaction summary. Commodities: Commodities broking - a whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior returns for investors. Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. Insurance Broking: As an insurance broker, we provide to our clients comprehensive risk management techniques, both within the business as well as on the personal front. Risk management includes identification, measurement and assessment of the risk and handling of the risk, of which insurance is an integral part. The firm deals with both life insurance and general insurance products across all insurance companies.

Our services:

Risk Management Due diligence and research on policies available Recommendation on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement IPO: We are a leading primary market distributor across the country. Our strong performance in IPOs has been a result of our vast experience in the Primary Market, a wide network of branches across India, strong distribution capabilities and a dedicated research team. We have been consistently ranked among the top 10 distributors of IPOs on all major offerings. Our IPO research team provides clients with indepth overviews of forthcoming IPOs as well as investment recommendations. Online fillng of forms is also available.

INSTITUTIONAL SERVICES Institutional Equities: The Institutional sales and trading team provides cutting edge market information and investment advice to clients, coupled with excellent execution capabilities. A highly experienced and reputed team of equity analysts supports the sales team. There is an extensive focus on research on companies, sectors and macroeconomy. Research: Our research expertise is at the core of the value proposition that we offer to our clients. Research teams across the firm continuously track various markets and products. The aim is however common - to go far deeper than others, to deliver incisive insights and ideas and be accountable for results. AR research processes incorporate quantitative areas well as qualitative analyses.

MANAGED INVESTMENT SERVICES Portfolio Management Services (PMS): AR Portfolio Management Service is a discretionary investment service created to meet the demand for more targeted investment styles and opportunities. It offers a range of specialized investment strategies designed to capture opportunities across the market spectrum. The range of products varies from the highly defensive, capital-protected to the most aggressive strategies in the equities and derivatives markets. Real Estate Opportunities Fund: AR Real Estate Opportunities Fund is a private equity fund for high net-worth individuals, corporates and institutions, to invest in equity-linked instruments in the Indian real estate and infrastructure sectors. As part of the structural reforms to further boost India's economic growth, the government has recognized the need for institutional finance in the real estate sector.

INSTITUTIONAL WEALTH MANAGEMENT

INTRODUCTION Corporate and Institutional treasuries need ever more sophisticated advice that is backed by serious and credible research. AR IWM provides its institutional clients integrated wealth management solutions across global markets, which are backed by proprietary global economic & investment research. We understand that your needs could range from finding short-term surplus management strategies to higher yielding and long term investments. The IWM team brings together the highly-rated AR research across fixed income, currencies and equities markets to provide investment solutions that meet your complex needs - from simple money-market mutual funds to complex arbitrage strategies in the equities or commodities markets.

PRODUCTS Equity & Derivatives: Equity is stock or any other security representing an ownership interest. Derivatives are contracts whose value is "derived" from the price of something else, typically, cash market investments such as stocks, bonds, money market instruments or commodities. Mutual Funds is a trust that pools the savings of number of investors who share a common financial goal. It is a convenient way for investors to channelise their savings into various categories of securities like equities,debentures, money market instruments, FD etc.

Depository Services
When u buy shares or sell the shares, the transaction goes through a specific medium. The Depository Services provider settles the trade or transactions you make in stock markets. The depository is linked with Exchange boards like NSE,BSE and few others. Like banks, even the depository service providers have a clearing house where at the end of the day all the buying n selling settlements takes place between buyers n sellers through stock brokers. Depository is a company which holds the shares you purchase. Right now there are 2 depository companies. NSDL (National Securities Depository Ltd) & CDSL ( Central Depository Services Ltd.) And a depository participant is an institution which acts as an agent between an investor and Depository service provider. It can be a stock broker, a bank or any NBFC. Commodities: A commodity can be any tangible good, but commodities that are traded in commodity markets are usually bulk goods and food products, including natural gas, gold, silver, oil etc. The meaning of the term commodity has changed through the years, because the word traditionally meant a good that was subject to barter or sale, but the modern definition can include investment vehicles, like commodity futures. Commodities are only traded on commodity exchanges, just like stocks are only traded on stock markets, and these exchanges do much more than just facilitate the trade in commodities, they also enforce any regulations and rules in place to govern the trading process involving commodities Insurance: Insurance is a contract between two parties where by one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event. IPOs: Initial Public Offerings", which means exactly that, when a stock goes public it is the initial first offering of that stock to the public.

CORPORATE ADVISORY SERVICES: INTRODUCTION: AnandRathi Advisors assists companies in realizing tangible improvements in various facets of their businesses by providing a range of corporate advisory services that includes the entire gamut from financial, organizational and operational restructuring, to profit improvement and business turnaround strategies. Highly qualified and thoroughly professional, our specialists, experts and associates assist you in conceptualising problems and devising effective solutions, whatever be your need. SERVICES: Performance Improvement and Cost Reduction Business Strategy and Re-engineering Financial, Business & Organizational restructuring Business Turn-around Strategies Management Systems: MIS, Review & Control Mechanism

INVESTMENT BANKING AND CORPORATE FINANCE Investment Banking: AR Investment Banking provides comprehensive services to clients including raising money in the equity capital markets to identifying strategic alliances, mergers and acquisition opportunities and debt financing & restructuring advisory. Corporate Finance: The AR Corporate Finance team helps clients manage their debtfinancing needs by profiling business and cash-flow risks, defining the alternative sources of funding, building in multiple variables such as currencies, fixed-floating, tenure, collateral etc. in a comprehensive manner and finally negotiating with the prospective lenders / buyers. The team has also built an impressive track-record in debt restructuring based on its superior understanding of business needs and relationships with key lenders. Services: Investment Banking. Merchant Banking: A highly experienced equity capital markets team, a pan-India distribution presence and a high level of quality and integrity in executing client's transactions has enabled us to provide tangible value to our clients' businesses. Corporate Finance : Raising Cost-effective debt resources in Rupee and Foreign Currency for Projects, Working Capital and Specific needs. Financial Restructuring, CDR, OTS, Interest Cost Reduction, Long-term Corporate Loans for Working Capital Margins. Financial products and services in hedging of interest and currency risks

PROFILING
WHAT IS PROFILING? RISK PROFILE :

1. A measure of how risk averse an investor is. One may conduct a risk profile to determine what securitieswill likely fit an investor's investment goals. 2. In options, a chart showing the profits and losses on a contract over time. It is created by plotting thevalue of the underlying asset on the x-axis and the risk on the y-axis. It is also called a payoff profile. 3. The degree to which various risks are important to a particular individual.

What questions should I ask myself as I prepare to develop my risk profile? Ask yourself when you plan to use your investment in a few years to buy a home, start a business, or pay for college, or in the future for retirement. After you have decided how long your money will work, the focus of your preparation should shift to personal preferences:

1. Is capital preservation more important to you than outpacing inflation? 2. Are you willing to accept fluctuating values when investing for the long term? 3. Are you more comfortable with dividends and income, or with growth through capital appreciation? 4. Will you accept above-average risk to generate above-average returns?

Risk profiling combines two key areas : Estimating financial risk taking capacity of an individual. Understanding the (psychological) risk tolerance level of an individual.

RISK PROFILER:
Risk profiler draws different factors together by helping you understand how u feel about risk. It provides guidelines that may help a person or investor how to allocate the funds one has available for investing among the major assets classes i.e. shares, properties, fixed investments and cash. The profiler is not a substitute for financial planning, so consider seeking financial advice before you make a decision about your investment choice. Simple steps to consider when choosing an investment strategy Each person has their own level of comfort with investment risk and should choose their strategy accordingly. This is one of a number of factors, along with your specific circumstances and needs that you should take into account when deciding on an investment strategy. Step 1: Fill in the questionnaire to learn about your indicated risk tolerance level The key to choosing an investment strategy is deciding the level of return you want relative to how comfortable you are with investment risk. 'Risk' simply means the chance that the actual investment return will be different from the expected investment returns. This can be a positive or negative outcome. Step 2: View your score and check it against the risk profile descriptions This may help you to clarify whether you are currently likely to be more comfortable with low, moderate or high-risk investment strategies.

Lower-risk options will generally be expected to provide relatively consistent but lower returns over time. Pursuing high long-term returns may mean investing in more volatile options at a greater risk of negative returns in some years.

The assessment is a user-friendly, automated, guided self-assessment tool that provides a diagnostic analysis of your RIM (record and if management) programs strengths and weaknesses. The assessment consists of approximately 90 questions (yes, no, and text response), developed by a team of experienced RIM professionals, spanning the following categories: Policies and procedures Program structure Classification plan effectiveness Records security and protection Active program effectiveness Inactive program effectiveness Monitoring and training

1. 2. 3. 4. 5. 6. 7.

Once you have completed the questionnaire, you will receive:

A summary report card with your scores for each section, including a brief summary of the pertinent best practices A copy of the questions and your answers with best practice comments Suggested resources for helping you to improve your programs score in each section

These are some basic questions:

1. Will you need access to your funds during the term of the investment? (a) Yes (b) No 2. In how many years do you plan to draw on your funds? (If, at that time, you intend to roll your funds into a pension, add another 10 years to this estimate.) (a) Parking (less than 1 year) (b) Short term (1-2 years) (c) Medium term (2-5 years) (d) Medium-long term (5-7 years) (e) Long term (greater than 7 years) 3. Inflation erodes the value of your savings. Growth investing can counter the eroding effect of inflation but will expose you to the risk of short-term losses. (a) I am comfortable with this trade-off to beat inflation (b) I am conscious of the risks inflation presents, but would prefer a middle ground that limits losses (c) Inflation may erode my savings but I have no tolerance for loss 4. Which of the following risk/return scenarios would you be most comfortable with? (a) Low risk/return (maximum return 6% pa, minimum return 3% pa) (b) Moderate risk/return (maximum return 8% pa, minimum return -5% pa) (c) Above average risk/return (maximum return 12% pa, minimum return -10% pa) (d) High risk/return (maximum return 20% pa, minimum return -25% pa) 5. What is the most aggressive investment you have ever made? (a) Shares, technology fund, smaller companies fund (b) Managed funds (c) Investment property (d) Own home (e) Cash management trust

6. What would you do if your investment dropped in value from an initial $50,000 to $42,500? (A) Move the entire investment to cash (b) Move some of the investment to cash (c) Do nothing (d) Buy more of the investment 7. If you were investing in a share portfolio, which of the following would suit you best? (a) A portfolio of potentially high-returning shares whose value could rise or fall dramatically. (b) A blue chip portfolio that pays regular dividends (c) A mixture of (a) and (b) (d) I am not interested in shares These are the questionnaire by which risk profiler calculates risk depend on on answers provided.

NEED FOR PROFILING

CLIENT PROFILING It is a very essential aspect. Profiling helps the company to understand what are the financial goals of the individual what is his financial status what is his field of interest for investment what is the individuals risk taking ability Only after profiling the company can advice the individual where he should invest and how much he should invest or trade. Profiling not only helps the company to understand the customer but also helps the customer understand himself and his risk taking ability. Client profiling service is based on scrutinizing the best practices of leading-edge law firms around the world. Client Profiling provides in-depth analysis of historic client growth patterns and incorporates competitive intelligence to make business development recommendations for a law firms clients. BENEFITS Client Profiling takes the information available about a law firms clients and distills it into a framework that informs a firms growth strategy for various client segments. That framework incorporates client information such as: Lifetime work volume Types of work Industry Relationship strength Consistency of work volume Practice group cross-sell Share of wallet Billing rate

The starting point is segmentation of clients based on relative lifetime volume of work and the consistency with which the work was provided over the years. Analysis of clients within the segments reveals the need for unique relationship strategies for each segment. Armed with this information, firms can target marketing and cross sell efforts more effectively. This improved targeting should lead to higher ROI on those efforts, and more importantly, increased profitability for the entire firm.

Client profile is filled bt BM,approved by RM and it is finally approved by the operational team. Benefits of client profiling Services provided by the RM are on the base of networth,risk management,annual income and other important information in the client profile. If the client is investing in only equity then RM can suggest him to invest in commodities or anything which is beneficial for the client The company comes to know about the value of the client It helps approaching the client with better service

Dessimination According to the client profile,the clients are categorized in to different groups viz. FUTURE ITT(2-1400),RAVIENCE ACTIVE-3767,RAVIENCE NEW CLIENTS -4835,RAVIENCE NEW CLIENTS1 -4737,NEW CLIENTS(2-3195), NEW CLIENTS(2-4500),UP & UTTARANCHAL,INACTIVE(2-2435). The information are sent to the clients via messages,calls,mails as per the clients preference. Types of calls made to the clients are: IDT - Intra Day technical call for day traders, to be closed on that day itself. Very high risk call meant for Hardcore traders, who believe in make or break game. STT - Short term technical Trading call, meant for short term trader, willing to carry the trade for 110 days till it achieves the target [or revised target] or stop loss. Meant for short-term traders. MTT - Medium term Technical Trading call for some what longer period [say 1-3 months] and may cover the cash stocks also. Meant for short-term investor cum trader.

Suggestions There should be separate profile for clients investing in equity,and for clients investing in commodities. And then clients interested in equity should be again categorized according to short term or long term investment,each category should also contain the information whether the information has to be given to the client through messages,mails or calls as per the clients preference This will filter the unwanted information going to the client and through unwanted means. The client should be categorized according to his risk taking capability i.e Intraday = high risk Intraday + MF = medium risk Asset(real estate) = low risk Then according to the profile the RMs can try to suggest them to take little higher risk and make more investments. There should be a system where all the updates regarding the market should be available,client should have his own login id and password through which he can access the account and get all the information online,whenever he wants. The client can also be given online trading access. Client recommendations should be taken to get new contacts(clients) i.e multivalue marketing Income of the other family members should also be includedin the client profile. There should be a provision where the client can update any change in his income. There should be a provision where the client can update any change in his interest area for investment.