A Study on portfolio management service of investors @

EXECUTIVE SUMMARY

Portfolio management is a process where the asset management company a basket of

investment and the individual investor can select any of the portfolio which suites his/her

requirement in terms of the return he expects from the investment. Asset management

companies and the broking firms have ventured in this portfolio management field and they

manage the funds of the small investors.

To determine the best combination of portfolio mix in order to obtain above average return

and to minimize the risk. The financial investments advised by AEGON Religare Ltd have

been chosen in order to facilitate the investment decisions of the investors. A choice of new

portfolio will give a better choice for the investors.

The development of a portfolio, which maximizes the return and minimizes the risk, is the

key for any firm handling stocks. As portfolio is a collection of various kinds of assets and

a diversified portfolio ensures safe return for the investment and also minimizing the risk.

The feasibility of the new portfolio will be evaluated. The development of the feasible

portfolio will help the investors in making better investment decisions and to reduce the

risks.

The project title is

“A study on portfolio management services of investors @ AEGON

religare.”

1

A Study on portfolio management service of investors @

INDUSTRY PROFILE

Industry scope

The business of investment management has several facets, including the employment of

professional fund managers, research (of individual assets and asset classes), dealing,

settlement, marketing, internal auditing, and the preparation of reports for clients. The

largest financial fund managers are firms that exhibit all the complexity their size demands.

Apart from the people who bring in the money (marketers) and the people who direct

investment (the fund managers), there are compliance staff (to ensure accord with

legislative and regulatory constraints), internal auditors of various kinds (to examine

internal systems and controls), financial controllers (to account for the institutions' own

money and costs), computer experts, and "back office" employees (to track and record

transactions and fund valuations for up to thousands of clients per institution).

Key problems of running such businesses

Key problems include:

Revenue is directly linked to market valuations, so a major fall in asset prices

causes a precipitous decline in revenues relative to costs;

above-average fund performance is difficult to sustain, and clients may not be

patient during times of poor performance;

Successful fund managers are expensive and may be head hunted by competitors;

above-average fund performance appears to be dependent on the unique skills of the

fund manager; however, clients are loath to stake their investments on the ability of a few

individuals- they would rather see firm-wide success, attributable to a single philosophy

and internal discipline;

Financial services

Financial services are a term used to refer to the services provided by the finance industry.

Financial services are also the term used to describe organizations that deal with the

management of money. Banks, investment banks, insurance companies, credit card

2

A Study on portfolio management service of investors @

companies, government sponsored enterprises, and stock brokerages, are examples of the

types of firms comprising the industry, which provides a variety of money and investment

related services. Financial services are the largest industry (or industry category) in the

world.

History of financial services

United States: Gramm-Leach-Bliley Act

The term financial services became more prevalent in the United States partly as a result of

the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies

in the US financial services industry to merge. Critics of this act say the term financial

services attempts to make the unison of these operations sound natural, ignoring the history

of problems that have arisen from combining them, such as conflicts of interest and

monopolization[. Others, noting that many of the restrictions abolished by the Gramm-

Leach-Bliley Act had never existed in other countries or had been abolished earlier than in

the US, say the term financial services is a natural one, in long term use, which means

nothing more than its constituent word.

In the USA almost every company now which previously described themselves as a bank,

insurance company, or brokerage house, now describes themselves in some way as a

financial services institution. Allstate Insurance, for example, now provides CDs and

investment brokerage services. Bank of America offers full-featured brokerage products,

while E*TRADE has expanded into offering bank accounts and loans.

Intermediation or advisory services

Stock brokers (private client services) and discount brokers

Stock brokers assist people in investing, online only companies are called 'discount

brokerages', companies with a branch presence are called 'full service brokerages' or

'private client services. Some of these are:

A.G. Edwards

Ameritrade Charles Schwab

E*TRADE

3

A Study on portfolio management service of investors @

Edward Jones

Merrill Lynch

Morgan Stanley

Smith Barney

Other low-cost brokerages that function in a similar way to a dividend reinvestment

program include:

BUYandHOLD

Edgar, Dunn & Company (Edgar, Dunn & Company is a financial services

consultancy)

FolioFN

General Electric (GE is one of the largest financial companies)

Sharebuilder

Market share

The financial services industry constitutes the largest group of companies in the world in

terms of earnings and equity market cap. However it is not the largest category in terms of

revenue or number of employees. It is also a slow growing and extremely fragmented

industry, with the largest company (Citigroup), only having a 3 % US market share.[6]

In contrast, the largest home improvement store in the US, Home Depot, has a 30 % market

share, and the largest coffee house Starbucks has a 32 % market share, etc. Despite this

fragmentation, financial service companies as a group are by far the most profitable in the

world, and if any grew to the same market share percentages as any other retail industry,

the potential profit would be large.

4

A Study on portfolio management service of investors @

2011

S&P 500 index market capitalization in 2010:

Financial Services: 20.30%

(Computer hardware & software: 15.30%) (as comparison to 2009)

Healthcare: 13.40%

Industrial Materials: 12.20%

Hardware (computer hardware): 10.80%

Consumer Goods: 9.70%

Consumer Services: 8.80%

Energy: 6.50%

Software: 4.50%

Business Services: 3.90%

Media: 3.90#

2010

S&P 500 index (500 large American companies) market cap in 2009

Technology (hardware, software): 29.8%

Financial: 13.1

Consumer Staples: 11

Consumer Cyclicals: 9.2

Healthcare: 9

Capital Goods: 8.4

Communication Services: 8

Energy  : 5.5

Basic Materials: 3.00%

Utilities: 2.3

Transportation: 0.7

5

A Study on portfolio management service of investors @

Brand equity

Each year, BusinessWeek and Interbrand publish their 100 Best Global Brands study,

ranking the financial value of brands. The following are the financial services companies in

this list, ranked by this study for 2009

Rank BrandBrand value

(US $ billion)

Annua

l

change

2010

Rank

Country

of origin

11 Citigroup 21.46 7% 12 U.S.

14 American Express 19.64 6% 14 U.S.

21 Merrill Lynch 13.00 8% 25 U.S.

28 HSBC 11.62 11% 29 U.K.

33 J.P. Morgan 10.21 8% 34 U.S.

36 Morgan Stanley 9.76 0% 33 U.S.

37 Goldman Sachs 9.64 13% 37 U.S.

42 UBS 8.73 15% 44 Switzerland

87 ING 3.47 9% 87 Netherlands

6

A Study on portfolio management service of investors @

10 largest asset management firms

Global Investor’s 2009 top 10 asset managers by assets under management.Source: BGI)

Rank CompanyAssets under management

(US $million)Country

1. Barclays Global Investors 1,400,491 UK

2. State Street Global Advisors 1,367,269 US

3. Fidelity Investments 1,299,400 US

4. Capital Group Companies 1,050,435 US

5. Legg Mason 891,400 US

6. The Vanguard Group 852,000 US

7. Allianz Global Investors 790,513 Germany

8. JPMorgan Asset Management 782,646 US

9. Mellon Financial Corporation 738,294 US

10. Deutsche Asset Management 723,366 Germany

7

A Study on portfolio management service of investors @

3.1 Inception and background of the company

This venture is dedicated to build a firm future, both for customers and employees and will

continue to balance a local approach with the power of an expanding global operation. We

launched our pan-India multi-channel operations in July, 2008 with over 30branches spread

across India. Our business philosophy is to help people plan their life better. We provide

high quality advice to our customers and offer superior customer service. In an industry

first, AEGON Religare Life Insurance offers policy servicing on the phone via Interactive

Voice Response System (IVR) by issuing the customer a T-Pin for authentication. It is also

the first company to include the customer’s medical report in the policy kit.

AEGON

Businesses serve over 40 million customers in over 20markets throughout the Americas,

Europe and Asia, with major operation in the united states, the Netherlands and the united

kingdom . with the headhunters in the huge , the Netherlands ,AEGON companies empl0y

almost 32000,wordwide.the company common shares are listed on four stock exchange:

Amsterdam, London ,new york and Tokyo . it manage euro 351 billion in revenue

generating investment .AEGON has more than 160 years of experience with its roots going

back to 1844.it hold 26% equity in our company.

ABOUT AEGON RELIGARE ENTRERPRISE LTD.

Religare is diversified financial services group of India a multitude of investment option,

financial services witch Religare offers can be broadly clubbed across three key verticals

retails institutional and wealth spectrum. Religare has also venture in to the alternative

investment spheres through its holistic arts and initiative and film fund. With the view to

expand, diversify introduced offering benchmark again global best practice ,Religare

operates in the wealth management space under the brand name Religare Macquarie privet

wealth Religare has pan India presence 1837 location at across 498 cities and town . it also

currently operate nine international location following its acquisition of London brokerage

& investment firm, Hichens ,Harrison & co plc .(now Religare Hichens, Harrison (Plc).

Bennett, Coleman & Co. Ltd. (BCCL),

8

A Study on portfolio management service of investors @

Part of the mammoth Times Group, is India’s largest media house. It reaches out to2468

cities and towns all over India. The group owns and

Manages powerful media brands like The Times of India, The Economic Times,

Maharashtra Times, Navbharat Times, Femina,Filmfare, Grazia, Top Gear, Radio Mirchi,

Zoom, Times Now, Times Music, Times OOH, Private Treaties and India times. Com.All

of its brands are multinational in outlook, traditional at heart and national in spirit. From

the very first edition on November 3, 1838 the mammoth BCCL Group has come a long

way.

3.2 Nature of the Business carried

The organization is basically a financial service provider where the main aim is to collect

the money from the general public through various investment options like insurance,

mutual fund, bonds, as well as customized investment options in both forms of debt and

equity.

The organization having three types of business approach which aims at client acquisition

and further with better service and quality investment management as per the investers will

and wish.

1.Agency model.

2.Dirct selling

3.cross selling by allowing to a third party service provider by mutual contract and benefits

in business.

3.3. Vision, mission and quality policy

Vision

“The most successful and admired life insurance company, which mean that we are the

most trusted company, the easiest to deal with, offer the best value for money, and set the

standards in the industry. In short “The most obvious choice for all”.

Mission

To protect the interest of and secure fair treatment to policyholders.

9

A Study on portfolio management service of investors @

To bring about speedy and orderly growth of the insurance industry (including

annuity and superannuation payments) for the benefit of the common man, and to provide

long term funds for accelerating growth of the economy.

To set, promote, monitor and enforce high standards of integrity, financial

soundness, fair dealing and competence of those it regulates.

To ensure speedy settlement of genuine claims, to prevent insurance frauds and

other malpractices and put in place effective grievance redressal machinery.

To promote fairness, transparency and orderly conduct in financial markets dealing

with insurance and build a reliable management information system to enforce high

standards of financial soundness amongst market players.

To take action where such standards are inadequate or ineffectively enforced.

Quality policy

AegonReligare Life Insurance Company Limited has some quality policy which are listed

as follows:

1) Result Oriented

2) Performance Driven

3) Customer Focused

4) Learning and Development Oriented

5) Employee Centric

6) Informal and Fun

3.4 Product & service profile

When the company collects/gathers/receives all the applications, out of which some

of the applications are rejected owing to certain errors. In such case rejected application

money is refunded and where the application is rejected in part, the balance of the

application money, if any will be refunded to the first named applicant by registered post

within ten weeks from the closing date of subscription.

The sum received in respect of the issue will be kept in separate bank accounts and

the company will not appropriate the funds unless approval of Regional Stock Exchange is

obtained for allotment. The allotment money towards Equity Shares and Debentures shall

10

A Study on portfolio management service of investors @

not be utilized till approval for listing is obtained from the stock exchange where listing is

proposed.

No interest will be payable on the applications accompanied by stock invested. He

will debit the applicant’s account only to the extent of amount payable on the shares

allotted to him.

Letter(s) off allotment/securities/share certificates together with refund orders o

value over Rs.1500/-, if any to allot tees and to non-allot tees will be dispatched by

registered post and refunds off value Rs.1500/- and less will be dispatched under certificate

of posting at the applicant’s sole risk within three months from the date of allotment in

exchange of allotment letter(s) issued if any.

The company is provided with an ISIN (International Security Identification

Number) by the NSDL (National Securities Depository Ltd.) and the CDSL (Central

Depository Services Ltd.) and therefore the company provides likewise a security

identification no. which is the “Portfolio Number” and the ‘Club Identification Number’

(the share certificate no.) where the company keeps all the necessary and relevant

information regarding the client and his/her total funds or invested money or amount, in the

company’s personal Database. The Database contains all the client’s separate Portfolio

Nos. and accounts. All the information about the increase and decrease of the sum owing to

buying more shares from the Secondary Market (the Stock Exchanges) through the brokers

or the selling of shares from the Primary Market (new subscription or the issue o the

shares).

This maintenance or management of these Portfolios and its creation is termed as the

Portfolio Management by the company.

11

A Study on portfolio management service of investors @

The diagram describes a typical transaction with this separate company (usually referred to

as a Special Purpose Vehicle SPV or in the USA as a Special Purpose Entity SPE

Portfolio (finance)

In finance, a portfolio is a collection of investments held by an institution or a private

individual. In building up an investment portfolio a financial institution will typically

conduct its own investment analysis, whilst a private individual may make use of the

services of a financial advisor or a financial institution which offers portfolio management

services. Holding a portfolio is part of an investment and risk-limiting strategy called

diversification. By owning several assets, certain types of risk (in particular specific risk)

can be reduced.

The market portfolio

The efficient frontier is a collection of portfolios, each one optimal for a given amount of

risk. A quantity known as the Sharpe ratio represents a measure of the amount of additional

return (above the risk-free rate) a portfolio provides compared to the risk it carries. The

portfolio on the efficient frontier with the highest Sharpe Ratio is known as the market

portfolio, or sometimes the super-efficient portfolio; it is the tangency-portfolio.

12

A Study on portfolio management service of investors @

This portfolio has the property that any combination of it and the risk-free asset will

produce a return that is above the efficient frontier - offering a larger return for a given

amount of risk than a portfolio of risky assets on the frontier would.

Portfolio management

How should a company invest its product development resources effectively? And how

should it prioritize its development projects and allocate resources among them? These are

crucial issues in new product portfolio management. A company who is able to optimize its

R&D investments will have success in the future.

Portfolio management is a critical management challenge for three reasons:

Firstly, a successful new product effort is fundamental to business success. This translates

into portfolio management: the ability to select projects today that will become new

product winners tomorrow.

Secondly, new product development is the manifestation of the strategy of the enterprise.

One of the most important ways for a company to operationalize its strategy is through the

new products it develops. If new product initiatives are wrong, either the wrong projects or

the wrong balance between projects, the company fails at implementing its strategy.

Thirdly, portfolio management is about allocation of the company’s resources. The goal of

a company should be to create value for the shareholders. Technology and marketing

resources simply are too limited to waste on the wrong projects. The consequences of poor

portfolio management are clear: A company spills the limited resources and as a result does

not give deserving projects a chance.

Portfolio Management for New Products

Portfolio Management for New Products is used to select a portfolio of new product

development projects to achieve the following goals: Maximize the profitability or value of

the portfolio, provide balance and support the strategy of the enterprise.

Product software development

Method engineering focuses on product software and information systems development

methods. Product software is defined as software with accompanying materials which is

sold in a particular market. Examples of product software are ERP software, office

13

A Study on portfolio management service of investors @

software and software development tools. This article is about portfolio management for

new software product

Much research has been done to discover the reason of new product success: Research

(Cooper et al., 2000) has led to many reasons. Studies on why new products succeed show

that there are ten critical success factors.

Product lining

Portfolio management is linked with product lining. Product lining is the marketing

strategy of offering several related products individually (Ardis, M., Daley, N., Hoffman,

14

Nr Description

1. Seek differentiated, superior products.

2. Do your up-front homework.

3. Take the voice of the customer into account.

4. Demand a clear and early product definition.

5. Plan and resource the market launch early.

6. Build strict go/kill decision points into your process.

7. Organize around cross-functional project teams.

8. Attack from a position of strength.

9. Build an international orientation into your new product process.

10. The role and support of top management is central to success.

A Study on portfolio management service of investors @

D.M., Siy, H. and Weiss, D., 2000). A line can comprise related (software) products of

various functionalities, qualities or prices (Brown sword, L. and Clements, P., 1996).

Investment managers and portfolio structures

At the heart of the investment management industry are the managers who invest and

divest client investments.

A certified company investment advisor should conduct an assessment of each client's

individual needs and risk profile. The advisor then recommends appropriate investments.

Asset allocation

The different asset classes are stocks, bonds, real-estate, derivatives, and commodities. The

exercise of allocating funds among these assets (and among individual securities within

each asset class) is what investment management firms are paid for. Asset classes exhibit

different market dynamics, and different interaction effects; thus, the allocation of monies

among asset classes will have a significant effect on the performance of the fund. Some

research suggests that allocation among asset classes has more predictive power than the

choice of individual holdings in determining portfolio return.

Performance measurement

Fund performance is the acid test of fund management, and in the institutional context

accurate measurement is a necessity. For that purpose, institutions measure the

performance of each fund (and usually for internal purposes components of each fund)

under their management, and performance is also measured by external firms that

specialize in performance measurement. The leading performance measurement firms (e.g.

Frank Russell in the USA) compile aggregate industry data e.g. showing how funds in

general performed against given indices and peer groups over various time period.

Absolute versus relative performance

In the USA and the UK, two of the world's most sophisticated fund management markets,

the tradition is for institutions to manage client money relative to benchmarks. For

example, an institution believes it has done well if it has generated a return of 5% when the

average manager has achieved 4%. In other markets however, e.g. Switzerland, the

mentality is different and clients and fund managers focus on absolute return management,

15

A Study on portfolio management service of investors @

i.e. returns relative to cash (e.g. Swiss franc or Yen cash) where (performance) fees are

payable only if the return exceeds some absolute figure (e.g. 10% per annum).

Risk-adjusted performance measurement

Performance measurement should not be reduced to the evaluation of fund returns alone,

but must also integrate other fund elements that would be of interest to investors, such as

the measure of risk taken. Several other aspects are also part of performance measurement:

evaluating if managers have succeeded in reaching their objective, i.e. if their return was

sufficiently high to reward the risks taken; how they compare to their peers; and finally

whether the portfolio management results were due to luck or the manager’s skill. The need

to answer all these questions has led to the development of more sophisticated performance

measures, many of which originate in modern portfolio theory.

3. 5.Area of Operation

Head office and branches

They are 50 branches in 19 states throughout India

Corporate and registered office

AEGON Religare Life Insurance,2nd Floor, Paranjpe B Scheme,Subhash Road, Near

GarwareHouse,Vile Parle (E),Mumbai - 400 057.

Other Branches

1. Ahmadabad

2. Amritsar

3. Bangalore- Brigade

4. Bhopal

5. Bhubaneswar

6. Chandigarh

7. Chennai- Mount Road

8. Coimbatore

9. Dehradun

10. Faridabad

11. Gurgaon

12. Guwahati

16

A Study on portfolio management service of investors @

13. Hubli1

14. Hyderabad- Secunderabad

15. Indore

16. Jaipur

17. Jalandhar

18. Jamshedpur

19. Kanpur

3.6 Ownership pattern

AEGON Religare Life Insurance Company, established in 2007 is a private life insurance

company headquartered in Mumbai. AEGON Religare Life Insurance (ARLI) is a joint

venture between Religare – India’s global financial group, Bennett Coleman & Company-

India’s largest media house and AEGON – Holland’s pension and investment provider.

Religare hold 44%, Bennett Coleman holds 30% and AEGON holds 26% equity in the

venture AEGON Religare Life Insurance Company (ARLI) in India is a joint venture

between AEGON (26%), Religare Enterprises Limited (44%) and Bennett, Coleman &

Company (30%).

Name of owners Holdings of percentage

Religare 44%

Bennet coleman & company 30%

aegon 26%

17

A Study on portfolio management service of investors @

3.7 .Competitor information

1. Bonanza

2. Reliance life Insurance

3. Kotak Mahindra

4. Reliance align

5. Motilal Oswal financial Services

6. The Karvy group

7. ABN AMRO Holding N.V.

8. UTI Mutual Fund

3.8 Infrastructure Facility

The organization having two branches in Bangalore, like J. P. Nagar in south Bangalore

and brigade road in central Bangalore.

AEGON RELIGARE LIFE INSURANCE Co.Ltd

INTER OFFICE CONNECTIVETY

All their Branch / Area and Regional offices will be interconnected to their Data Centre

with a 24x7 access to Core Applications like Lotus Mail, Life-Asia and Internet

Applications. This will enable their associates to work faster and better with high-speed

Internet connectivity and also ensure faster turnaround Time for their customer.

Customer Care Centre: -

They will host a centralized Customer Care Centre at Navi Mumbai, which cater services to

internal and external queries and complications. A customer Relationship Management

Tool (CRM) and Lead Management System (LMS) are in progress.

Web Portal: -

This portal will be an interface between two internal employee send their external users.

Some of the functions included in their portal are Policy Tracking Systems, Corporate

News, and Quality checking System, Under Writing Medical System, and Agent

Management System etc.

SMS Alerts: -

SMS Alerts will be provided to their Sales Managers about the latest happenings like

Contests and Campaigns, Employee Alerts will include Company News and

18

A Study on portfolio management service of investors @

Welcome/Birthday/Anniversary message etc Customers includes

Welcome/Birthday/Anniversary message ,policy dispatch details policy service messages

like premium receipt and renewal premium remainders etc.

Document management system

DMS will enable both policy issuance and contract service in through an automated

workflow, which yields a faster Turnaround Time to both internal and external users. This

application will enable them to have a paperless office and thus mitigate the risk of losing

vital records/papers.

Subsidiary companies:

Religare Securities Limited

Equity Broking

Online Investment Portal

Portfolio Management Services

Depository Services

Religare Commodities Limited

Commodity Broking

Religare Capital Markets Limited

Investment Banking Proposed Institutional Broking

Religare Realty Limited

ReligareHichens Harrison

Corporate Broking

Institutional Broking

Corporate Finance

ReligareFinvest Limited

Lending and Distribution business

Proposed Custodial business

Religare Insurance Broking Limited

Life Insurance

General Insurance

Religare Arts Initiative Limited

19

A Study on portfolio management service of investors @

Business of Art

Gallery launched - arts-i

Religare Venture Capital Limited

Private Equity and Investment Manager

Religare Asset Management

Religare Asset Management Company (P) Limited is a wholly owned subsidiary of

Religare Securities Limited (RSL), which inturn is a 100% subsidiary of Religare

Enterprises Limited. Religare Richens, Harrison plc. (RHH) is a part of Religare

Enterprises Limited (REL) ± a leading integrated financial services group of India.

Lichens, Harrison & Co. plc. (HH), established in 1803 is London’s oldest brokerage and

investment firm with a global footprint. Post its acquisition through RELIGARE indirect

subsidiary - Religare Capital Markets International (UK) Limited, HH has been

rechristened as Religare Hichens Harrisonplc.

Associate companies:

Fortis Healthcare Limited

Super Religare Laboratories Limited

Religare Wellness Limited

(Formerly Fortis Health world)

ReligareTechnova Limited

Religare Voyages Limited

3.9 Award and Achievement

Religare is a diversified financial services group of India offering a multitude of investment

options.

Religare has a pan India presence, 1837* locations across498* cities and towns. It also

currently operates from nine international locations following its acquisition of London’s

brokerage& investment firm, Hitches, Harrison & Co. plc.(Now Religare Hitches, Harrison

Plc).AEGON Religare Life Insurance launched its pan-India multi-channel operations in

July, 2008 with over 30 branches spread across India in day 1.

AEGON religare is the first company to include customer’s medicals report in policy kit.

20

A Study on portfolio management service of investors @

3.10 Workflow model of the company

21DEALERSASSISTANT BDMEXECUTIVE

PROTFOLIO MANAGER

CENTERAL ZONE HEAD

IT CUSTOMER SUPPORT & OPERATION

BUSINESS DEVELOPMENT MANAGER

BRANCH MANAGER

RELATIONSHIP MANAGER

REGIONAL HEAD

FUNCTIONAL ZONE HEAD

SOUTHERN ZONE HEAD

NORTHERN ZONE HEAD

HEAD COMMODITY

HEAD SALES & DISTRIBUTION

HEAD MARKETING

WESTERN ZONE HEAD

HEAD HUMAN RESOURECE

BOARD OF DIRECTOR

HEAD FINANCE

EASTERN ZONE HEAD

CHIEF EXECUTIVE OFFICER

HEAD INVESTMENT

HEAD FIXED INCOME

A Study on portfolio management service of investors @

3.11 Future growth and prospects.

22

A Study on portfolio management service of investors @

While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7S framework. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:

Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or acquisition. Determine how best to implement a proposed strategy.

The McKinsey 7S model can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas you study.

The Seven Elements

Description 

The Hard S’s

Strategy Actions a company plans in response to or anticipation of

changes in its external environment.

Structure Basis for specialization and co-ordination influenced primarily

by strategy and by organization size and diversity.

Systems Formal and informal procedures that support the strategy and

structure. (Systems are more powerful than they are given credit)

The Soft S’s

Style / Culture The culture of the organization, consisting of two components:

       Organizational Culture: the dominant values and beliefs,

and norms, which develop over time and become relatively

enduring features of organizational life.

       Management Style: more a matter of what managers do

than what they say; How do a company’s managers spend their

time? What are they focusing attention on? Symbolism – the

23

A Study on portfolio management service of investors @

creation and maintenance (or sometimes deconstruction) of

meaning is a fundamental responsibility of managers.

Staff The people/human resource management – processes used to

develop managers, socialization processes, ways of shaping

basic values of management cadre, ways of introducing young

recruits to the company, ways of helping to manage the careers

of employees

Skills The distinctive competences – what the company does best,

ways of expanding or shifting competences

Shared Values /

Superordinate Goals

Guiding concepts, fundamental ideas around which a business is

built – must be simple, usually stated at abstract level, have great

meaning inside the organization even though outsiders may not

see or understand them.

 The model starts on the premise that an organization is not just Structure, but consists of seven elements:

Skills Style

Strategy Systems

SharedValues

Staff

Structure

www.themanager.org

24

A Study on portfolio management service of investors @

Let's look at each of the elements specifically:

Strategy: the plan devised to maintain and build competitive advantage over the competition. Structure: the way the organization is structured and who reports to whom. Systems: the daily activities and procedures that staff members engage in to get the job done. Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the employees working for the company.

Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements. The company's structure, strategy, systems, style, staff and skills all stem from why the organization was originally created, and what it stands for. The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements.

25

A Study on portfolio management service of investors @

SWOT ANALYSIS of AEGON RELIGARE

STRENGHTS

AEGON religare strength is the power to take on all challenges.

Aegon religare the pioneer in the field of financial services. It has developed into a

specialist organization particularly like PFM services.

State of the art technology: Aegon religare has adopted techniques, which are

unique and unparalleled in financial services.

It has the back up of technical experts in the online trading/PFMS/Mutual funds.

It has developed considerable expertise in project development, operation and

maintenance, finance and administration areas.

Organizational development: To achieve the goals of the organization in the back

drop of liberalization of the economy and reform process envisage in the finance sector,

massive efforts have been undertaken towards organizational development.

Relationships with customers, Brand strength, Delivery time, Infrastructure,

Customer service, Resources: financial, intellectual, location, Efficiency, Quality, hfStaff,

Price, principles.

WEAKNESS

Intense throat competition in this field

Lack of awareness among most of the people about the financial services.

OPPORTUNITIES

It’s an emerging sector in our economy so, it as large potential market.

Market Trends, Economic condition, Expectations of stakeholders, Technology

Public expectations and Global Markets paves way to effective establishment for this

sector.

26

A Study on portfolio management service of investors @

THREATS

With the advent of economic reforms and liberalization, there is an open gate policy

for private participants in the field of financial services.

Competitors and competitive actions, Bad returns, Criticism (Editorial).

But privatization does not pose great threat to the organization because of its strong

back up of work culture and experience in this field.

27

A Study on portfolio management service of investors @

Analysis of Financial Statement

Particulars Year ended march 31, 2011

Year ended march 31, 2010

Amount transferred to policyholders accountIncome from investments(a) interest, dividends and rent - Gross(b)Profit on sales\redemption of investment(c) Loss on sale/redemption of investment(d) Transfer/Gain on revaluation(e)Amortisatio of premium/discount on investmentOther income Total income(A)

Expenses other than those directly related to the insurance business:Bad debts written offProvision (other than taxation)(a)For diminution in the value of investment(b)Provision for doubtful debt(c)othersContribution to the policyholders account

Total income(B)

Profit before taxProvision for taxCurrent taxFringe benefit taxProfit after tax

APPROPRIATIONS(a)Balance at the beginning of the year(b)Interim dividends paid during the year(c)Dividend distribution on tax(d)Transfer to reserves/other accountsProft/ (loss)carried forward to the balance sheet

38,2335,317(157)-8,121-51,514

13,292-----

13,292

38,222

---

(237,878)---(199,565)

44,56511,876(606)-14,393-70,288

27,893-----

27,893

42,835

--(2,025)

(278,688)---(237,878)

28

A Study on portfolio management service of investors @

General Introduction

Portfolio:

Portfolio (finance), a collection of investments held by an institution or a private individual.

Holding a portfolio is often part of an investment and risk-limiting strategy called

diversification. By owning several assets, certain types of risk (in particular specific risk)

can be reduced. There are also portfolios which are aimed at taking high risks - these are

called concentrated portfolios.

Corporate Portfolio Management

Corporate Portfolio Management (CPM) is an increasingly important strategic discipline

focused on optimizing an organization's resource allocation. In essence, CPM requires that

organizations consider the hundreds or thousands of discretionary initiatives and projects

they undertake on a continual basis as part of a portfolio of investments which should be

actively managed. Similar to portfolio theory used in making personal investment

decisions, CPM aims to let organizations maximize financial and strategic returns while

managing risk.

Security

A security is a fungible, negotiable interest representing financial value. Securities are

broadly categorized into debt and equity securities. The company or other entity issuing the

security is called the issuer.

Securitization

Securitization is the process of homogenizing and packaging financial instruments into a

new fungible one. Acquisition, classification, collateralization, composition, pooling and

distribution are functions within this process

Enterprise asset management

Enterprise asset management (EAM) means the monitoring of the physical assets of an

organization to avoid a loss of profits due to break downs. Tracking covers such things as

plant, equipment and facilities. "Enterprise" refers to the management of the assets across

departments, locations, facilities and, in some cases, business units. By managing assets

29

A Study on portfolio management service of investors @

across the facility, organizations can improve utilization, reduce capital costs, reduce asset-

related operating costs and subsequently improve ROA (return on assets).

Diversification

Diversification (finance) in finance involves spreading investments around into

many types of investments.

Diversification (demographics) is a measure of the commonality of a population.

Greater diversification denotes a wider variety of elements within that population.

Diversification (strategy) is a corporate strategy that takes the organization away

from both its current markets and products, as opposed to either market or product

development.

Investment advisor

An investment advisor (or investment adviser) is an individual or firm that advises

clients on investment matters on a professional basis.

They tend to fall into any one of the two distinct categories:

investment advisors offering direct financial advice to individuals or businesses,

Investment advisors offering asset management for (typically) corporate clients,

hedge funds and/or mutual funds.

30

A Study on portfolio management service of investors @

8.1 Statement of the problem

8.2 Objectives of the Study

To study ‘portfolio management services’ that includes elements of financial

analysis, asset selection, stock selection, plan implementation and ongoing monitoring of

investments.

To evaluate investor’s preference to invest in Asset management companies like

(AEGON Religare, Share khan, Way2wealth, IL& FS etc.) with other independent

financial service firms like (commercial banks, insurance companies, etc.)

To evaluate investors’ preference to opt portfolio services of line when compared to

other investment services (Mutual funds, Insurance broking, Commodities broking, etc.)

offered by AEGON Religare Ltd.

To evaluate investors’ intentions about portfolio structure, rate of return, risk

involved performance of the portfolio, value maximization, etc.

8.3 Scope of the study

This study focuses on how and why investors make decisions on portfolio services.

Investor behaviors and research goes far beyond the decision investors make about services

they pursuit and their subsequent evaluation of these financial services.

An investor’s dissatisfaction with their choice of a scheme may be due to many reasons,

such as poor services, which would affect the influence of an existing investor towards

potential investors.

Dissatisfaction is significant for financial services, which want to include post service

strategies into their promotional campaign. In an attempt to achieve this, a study has been

taken, focusing on the behavior of the investor’s and their preferences towards investment.

8.4 Methodology of the study

This very thing gives an overall view of the steps taken to conduct the research. As the

project aims at assessing the analytical study of the Management of the Portfolios of the

Investors by the Company, the required data and the information was keenly studied and

analyzed.

31

A Study on portfolio management service of investors @

Sources of the data

a) Primary data:

1) The information so was obtained was from direct interviews of the analyzers and the

employees of the organization and the researched feedback given by responds regarding the

pattern and perception of the company and the investors towards the security and funds

management by the management of the portfolios.

2) The method, which was adopted to collect the information, is ‘personal interview’

method. Personal interview and discussion was made with potential investors in portfolios.

There is a formal design of questionnaire used in this study.

The other primary data collected are

Data regarding the portfolio and also the concerned information.

Organization structure.

Product and service details.

b) Secondary data:

The data was also collected from few of the sources like the Registrars and the Share

Transfer Agents who manage the portfolios of many companies like the AMI Computers

(I) Ltd., who manages the portfolios of the shareholders of the Aegon Religare Insurance

on behalf.

The various sources that were used for the collection of secondary data are

Various textbooks were used to understand the concepts of portfolio management.

Websites- various sites like www.aegonreligare.com, www.5paise.com,

www.bseindia.com, www.nseindia.com, www.google.com, www.wikipedia.com and other

websites.

Newspapers such as Economics Times, Financial express, Business Line, etc.

Magazines such as Business World, Business Today, Investors Guide, Capital Market,

Portfolio management, etc

SAMPLE DESIGN

A Sample design is a definite plan for obtaining a sample from a given population. It refers

to the technique or the procedure the researcher would adopt in selecting items for the

32

A Study on portfolio management service of investors @

sample. The sample design may well lay down the number of items to be included in the

sample i.e. the size of the sample. Sample design is determined before data collection.

The sampling process consists of 7 stages:

Definition of population of concern

Specification of a sampling frame, a set of items or events that it is possible to

measure

Specification of sampling method for selecting items or events from the frame

Determine the sample size

Implement the sampling plan

Sampling and data collecting

Review of sampling process

Sampling plan helps to:

- Test a statistical hypothesis relating to a Population

- Make an in force about an unknown parameter from a measurable sample.

Sampling Method

Sampling draws an inference about the population. The values obtained from the study of

samples are called parameters.

Methods of Sampling

The various methods of sampling design can be grouped as under:

1. Random Sampling Method

Simple Random Sampling

Stratified Sampling

Matched Sampling

Systematic Sampling

Multi-stage Sampling.

2. Non Random Sampling Methods

Judgment Sampling

Quota Sampling

Convenience Sampling

Stratified sampling

33

A Study on portfolio management service of investors @

Market research

Research is the search for and retrieval of existing, discovery or creation of new

information or knowledge for a specific purpose. Research has many categories, from

medical research to literary research. 'Marketing research is a form of business research.

And Business-to-Business (B2B) Marketing Research, or Business Marketing Research,

previously known as Industrial Marketing Research.

B2B Marketing Research investigates the markets for products sold by one business to

another, rather than to consumers.

Steps of marketing research

Research Objectives

identifying the data sources

developing the research design/research plan

Sampling Design

Preparation of Questionnaire

Collection of data

Analysis & Interpretation data

Presentation of data

8.5 Limitation of the study

The total process cannot be detailed as the processes are vast and few of the

information are amended.

Many of the information regarding the company were not discussed, as they were

very confidential.

This sample size was restricted to 30. Therefore the sample size for each target

segment was also restricted and the duration of the study was limited

Some respondents show unwillingness to fill the questionnaire.

Some respondent gave biased information in case of close-ended questions &

multiple choice

Some respondent gave two preferences and hence one option was taken. Therefore

the time of analysis, the actual results were affected.

34

A Study on portfolio management service of investors @

Due to the huge area of Bangalore & small sample size all areas of are not included

in sample.

35

A Study on portfolio management service of investors @

ANALYSIS AND INTERPRETATION

Q.1 Which asset management company or companies you are currently associated with?

Table: - 1

AEGON religare IL & FS Banks Others25 30 35 10

AEGON religere IL & FS Banks Others

Series 1 0.25 0.3 0.35 0.1

3%

8%

13%

18%

23%

28%

33%

CHART 1

36

A Study on portfolio management service of investors @

Analysis

25% of the respondents strongly agree that they are invested in Aegon Religare.

30% of the respondents are been invested in IL & FS.

35% of the respondents remain largest who are invested in different Banks.

Only 10% of the respondents said they are invested in other investments like post

office, private money lending and etc.

Interpretation

40% respondents stated that they are invested in the Banks as they feel that one of the best

place for investment and secure as well.

37

A Study on portfolio management service of investors @

Q.2 From how long you are associated with AEGON Religare Co.ltd

Table: - 2

Less than 1 year 1 year – 2 year 1 year – 3 year Greater than 3 year50 30 10 10

Less than 1 yer 1 year - 2year 1 year - 3 year Greater than 3 year

Series 1 0.5 0.3 0.1 0.1

3%

8%

13%

18%

23%

28%

33%

38%

43%

48%

CHART 2

38

A Study on portfolio management service of investors @

Analysis

50% of the total investors are been associated with AEGON religare. This shows

the organization’s growth in recent years than the previous years.

30% of the respondents are been invested in AEGON religare.

10% of the respondents known to the institution.

Only 10% of the respondents said they are invested and aware of AEGON Religare

as they are recently come with so much of publicity and other advertisements.

Interpretation

As 50% respondents stated that they are invested in the Asset Management Company from

the less than 1 Year. This says about the growth of the institution that started the business

basically from health care. The organization seems at going to reach the peak.

39

A Study on portfolio management service of investors @

Q.3 Are you satisfied with the rate of return on your investment portfolio services at

AEGON Religare?

Table:- 3

Extremely satisfied Somehow satisfied Neither satisfied nor unsatisfied

Not satisfied

Series 1 0.2 0.35 0.3 0.15

3%

8%

13%

18%

23%

28%

33%

CHART 3

40

Extremely satisfied Somehow satisfied Neither satisfied nor unsatisfied

Not satisfied

20 35 30 15

A Study on portfolio management service of investors @

Analysis

20% of the total investors are extremely satisfied with the expectation and return on

their investment with AEGON Religare.

35% of the respondents reported to be some what satisfied as they have been

invested in AEGON religare.

30% of the respondents are unknown to the institution are resulted to be neither

satisfied nor unsatisfied.

Only 15% of the respondents said they are not at all happy with the investment

invested in AEGON Religare as they are need to be addressed by the organization as they

are the potential investors.

Interpretation

As 35% respondents stated that they are somewhat satisfied as par as the investment

invested in the Asset Management Company. At the same time the institution need to

improve the services for betterment of the future growth of the organization.

41

A Study on portfolio management service of investors @

Q.4 what is Investor’s preference towards terms or period of investment in PFMS?

Table: - 4

Short term Medium term Long term

Series 1 0.3 0.2 0.2

3%

8%

13%

18%

23%

28%

CHART 4

42

Short term Medium term Long term

30 50 20

A Study on portfolio management service of investors @

ANALYSIS

30% of the total investors are looking for short term investment and seems to be not

risk taking and return oriented with the investment in AEGON Religare.

50% of the respondents reported to be medium term investors as they are looking

for moderate return.

20% of the respondents are those investors who believes the mantra of investment

that the money needs time for the growth and satisfied return too.

Interpretation

30% of the investors opt for short term portfolio investment, 50% opt for medium term and

20% go for long term. It suggests most of the investors prefer to invest in short and

medium term and only few opt to invest in long term.

43

A Study on portfolio management service of investors @

Q.5 what is the return you expect on your investment?

Table: - 5

Greater than 5 % 10% - 15% 15% - 20%

Series 1 0.1 0.6 0.3

5%

15%

25%

35%

45%

55%

CHART 5

44

Greater than 5% 10% - 15% 15% - 20%

10 60 30

A Study on portfolio management service of investors @

Analysis

Merely 10% of the total investors are looking for a return of < 5% with the

investment in AEGON Religare.

60% of the respondents reported to be expecting a medium return of their

investments as they are looking for moderate return of 10-15 % which seems very usual.

30% of the respondents are those investors who believes in the more returns. The

return is expected around 15-20%.

.

Interpretation

10% of the respondents are satisfied with less than 5% return whereas 60% go for

10-15% returns and 30% expect more than 15%.Therefore only few are happy with less

rate of return and most of the investors prefer higher rate of return.

45

A Study on portfolio management service of investors @

Q.6 what you do? To diversify the risk on investments with preference to go with

several financial investments.

Table: -6

PFMS Mutual fund Bonds

Series 1 0.36 0.42 0.22

3%

8%

13%

18%

23%

28%

33%

38%

43%

CHART 6

46

PFMS Mutual funds Bonds

36 42 22

A Study on portfolio management service of investors @

Analysis

Mostly 36% of the total investors are looking for an investment in Portfolio

Management Services as believed the favored one to have good return on your investment

in AEGON Religare.

42% of the respondents reported to be very much interested in investment in mutual

funds as the benefits of entry load and exit load relaxation.

22% of the respondents are those investors who believe in invest in bonds as it

gives lesser returns comparatively. More returns. The return is expected around 15-20%.

Interpretation

36% of the respondents feel that the PFM services is safer, 42% feel mutual funds are safe,

22% feels that the Bonds are safer. Therefore equal number of investors opt PFMS and

Mutual funds and few go for Bonds.

47

A Study on portfolio management service of investors @

Q.7. How do you rate your PFM services at AEGON religare ltd?

Table: - 7

Excellent Good Fair Poor

Series 1 0.15 0.3 0.29 0.26

3%

8%

13%

18%

23%

28%

CHART 7

48

Excellent Good Fair Poor

15% 30% 29% 26%

A Study on portfolio management service of investors @

Analysis

As per the excellent services only 15% of the total investors are rating on high end

as it seems the expectations are meting case of returns on the investment in AEGON

Religare.

30% of the respondents reported to be feeling good to be invested in the financial

service provider.

29% of the respondents are those investors who believe in invest in where they

consider as a final deal.

26% of the respondents rated the service very poor as rings and urgency for the

organization being in service sector.

Interpretation

15% of the respondents thought the service is excellent whereas 30% thought it was

good,26% stated the service is poor and 29% think the service is average. Therefore most

of the investors are satisfied with the service offered by India Info line Ltd.

49

A Study on portfolio management service of investors @

Q.8 what is your investment organization /sector?

Table:-8

Indian MNC Foreign MNC

Government fund

Private Money

Lending25 28 26 21

Indian MNC Foreign MNC Government fund Private money lend-ing

Series 1 0.25 0.28 0.26 0.21

3%

8%

13%

18%

23%

28%

CHART 8

50

A Study on portfolio management service of investors @

Analysis

25% of the people belong to the Indian MNC companies.

28% of the respondents reported to Foreign based MNC companies.

26% of the respondents are those who are belongs government bonds and securities.

21% of the respondents believe to belong to the group where they like private

money lending.

Interpretation:

As Indian MNCs are doing well in the business and an emotional value is been

attached.25% of the people belongs to the Indian MNC companies.

The returns ion the investments are really very attractive so, 28% of the

respondents reported to Foreign based MNC companies.

Being one of the safest and secured investment options, 26% of the respondents are

those who are belongs government bonds and securities.

The risk taking capacity of the people are so high so they need high return so, 21%

of the respondents believe to belong to the group where they like private money lending.

51

A Study on portfolio management service of investors @

Q.9 what is your interest to invest in any of type /organization funds?

Table :- 9

Small cap Mid cap Large cap Blue chip cap

40 40 10 10

Small cap Mid cap Large cap Blue chip cap

Series 1 0.4 0.4 0.1 0.1

3%

8%

13%

18%

23%

28%

33%

38%

CHART 9

52

A Study on portfolio management service of investors @

Analysis

40% of the people belong to the small cap investment company’s funds.

30% of the respondents reported to be interested in mid cap funds.

30% of the respondents are those who are belong to large Cap fund.

10% of the respondents believe to belong to the group where they like blue chip or

fortune 500 companies

Interpretation:

As the she’s are growing and pretty aware of the returns so, 40% of the people

belongs to the small cap investment companies funds.

The mid caps are doing well and a less risk is available so 40% of the respondents

reported to be interested in mid cap funds.

As large cap funds are already in a saturation mode so 10% of the respondents are

those who are belongs to large Cap fund.

This funds requires high volume of funds so,10% of the respondents believe to

belong to the group where they like blue chip or fortune 500 companies

53

A Study on portfolio management service of investors @

Q.10 What is your interest to invest?

Table :- 10

Tax saving Security Investment High return60 20 10 10

Tax saving Security Investment High return

Series 1 0.6 0.2 0.1 0.1

5%

15%

25%

35%

45%

55%

CHART 10

54

A Study on portfolio management service of investors @

Analysis

60% of the people belongs to the tax saving purpose as the investment helps for tax

saving.

20% of the respondents reported to be interested in securing the future by

investment.

10% of the respondents are those who are belong to group of investment purpose

only.

10% of the respondents believe to belong to the group where they like for high

returns.

Interpretation:

As tax saving is available so, 60% of the people belongs to the tax saving purpose

as the investment helps for tax saving.

The investment of small or high secures the life so, 20% of the respondents reported

to be interested in securing the future by investment.

The investment is been given priority here so10% of the respondents are those who

are belongs to group of investment purpose only.

In order to get high returns the investor need to invest so,10% of the respondents

believe to belong to the group where they like for high returns.

55

A Study on portfolio management service of investors @

Q.11 Which investment firm do u prefer for investing PFMS?

Table: - 11

Private asset

management co

Commercial bank Other financial

institution

40 40 20

Private asset management company

Commercial bank Other financial institution

Series 1 0.4 0.4 0.2

3%

8%

13%

18%

23%

28%

33%

38%

CHART 11

56

A Study on portfolio management service of investors @

Analysis

40% of the people wants to invest in Private asset management company.

40% of the respondents wants to invest in Commercial bank.

20% of the respondents are those who wants to invest in Other financial institution.

Interpretation:

As Private asset management company are doing well in the business and an

emotional value is been attached 40% of the people invest in Private asset management

company.

The returns ion the investments are really very attractive so, 40% of the

respondents reported to Commercial bank.

57

A Study on portfolio management service of investors @

FINDINGS

AEGON religare is the leading banking group in the world, as on 2012.

AEGON religare Ltd’s PFMS performance is far than Nifty and Sensex in terms of growth

From the study it is found that most of the investors are ready to risk by opting private asset management Companies and they believe these companies can perform well compared to commercial banks and other financial institution.

From the study it is found that most of the investors take risk by opting equities (PEMS) rather than other services by expecting higher rate of returns.

It suggests most of the investors prefer to invest in short and medium term and only

few opt to invest in long term.

58

A Study on portfolio management service of investors @

CONCLUSIONS

Being a fast growing organization religare life insurance co.ltd Equities services has

measured itself and measured correctly and is growing with a comparatively high speed

than any of the religare life insurance co.ltd.

The funds and security management of the company is also going straight towards

the zenith of success.

Reducing the cost and maximizing its wealth and assets the company is doing very

well throughout since its incorporation.

Through its wonderful Strategic Planning the company is very much in progress of

risk management style and technique the company would be succeeding with a great

frequency.

No person or no investor of this company can say that ‘why to invest in this

company?’ as by observing its gigantic performance background since its incorporation

none can deny of the fact that this very company will stand second to none in its field in the

Global Market.

As we see the increasingly high speed of success of the company’s Security

Management/Portfolio Management and the speed in the process of capturing the Global

Market one can easily come to a conclusion that the company will become a Pride of the

religare life insurance co.ltd D as well in the days to come.

59

A Study on portfolio management service of investors @

SUGGESTIONS

Should seize the opportunities, which come on the way to success and by mitigating weaknesses into strength it should go forth.

Should minimize the formalities of security dealing and the depositories, which lead to stakeholders’ disappointing situation.

As the company has given the responsibility to the AMI Computers for the securities and funds Management on behalf, rather it should appoint a Portfolio Manager to do the work of the Portfolio Management of the shareholders of the company.

It can save the sum of amount spent on AMI Computers’ delegation of the Portfolio Management of the company’s shareholders.

Should prepare a Stakeholders’ Matrix by which it can ascertain or categories the efficient shareholders or the important shareholders.

Should focus to make a Corporate Sustainability Report by which it can verify the salutary investors of the company.

60

A Study on portfolio management service of investors @

ANNUAL REPORT 2008-09

OVERVIEW

The performance of the insurance sector in financial year 2008-09 was largely influenced

by the sub-primecrisis. The sub-prime crisis started in the United Statesin late

2007,evolved as a financial crisis in US andlater engulfed Europe and UK. By late 2008it

seepedinto Asia. As a result, the financial crisis deepenedamong many countries of

theworld, thus forcing therespective governments to take necessary steps tocome out ofthe

crisis. Besides increasedunemployment in various countries, economic growth

was also hampered and the IMF and World Banklowered the world economic contraction

for 2008-09to 1.1 per cent lower than what was projected earlier.Fall of

financialinstitutions and lack of confidence inthe banking system impacted the financial

markets.Money and capital markets tumbled down to theirlowest levels across the world.

ANNUAL REPORT 2008-09

The moment of truth in an insurance contract lies at the time of claim settlement. It coul

be at the end of several years in the case of some contracts. Beingso, it is bound to

leave a heartburn for the policyholderif it is repudiated. Ideally, when the two parts of

thecontract have been fulfilled totally, there would be norepudiation. Claim repudiations

occur owing to severalreasons – some deliberate and others inadvertent. Ina domain

where the awareness levels are low, thereis a need for extending additional help in

order toobviate the problem of repudiation. The role of thedistributor in this regard is

very crucial.IRDA is finalizing an insurance awareness campaignthrough mass media,

mainly through print,televisionandinternet, which aims at educating the public ingeneral

possible.Distribution plays an important role in widening the insurance market.

Performance in the first quarter of 2009-10

(i) Life insurance

61

A Study on portfolio management service of investors @

During the first quarter of the current financial year life insurers underwrote a premium of

Rs.14456.34 crore, marginally higher than Rs.14320.20 crore in the comparable period of

last year. LIC accounted for

ANNUAL REPORT 2008-09

Rs.9028.68 crore and the private insurers accountedfor Rs.5427.66 crore. While the

premium underwrittenby LIC increased by 19.99 per cent, premium of theprivate insurers

declined by 20.13 per cent over thecorresponding period of the previous year. Thenumber

of policies written by life insurers grew by12.06 per cent. While the number of policies

written

By LIC increased by 22.59 per cent, there has been a decline of 6.57 per cent in the case of

private insurers. Of the total premium underwritten, individual premium accounted for

Rs.10308.40 crore and the remainingRs.4147.93 crore came from the group business. In

Respect of LIC, individual business was Rs.5963.64crore and group business was Rs.3065.04 crore. The

corresponding figures for private insurers were Rs.4344.75 crore and Rs.1082.90 crore respectively.

Life Policies Issued

Insurer Apr-Jun 2008 Apr-Jun 2009

Public 4819546 5908412 (-23.36) (22.59)

Private 2725468 2546339 (43.99) (-6.57)

Total 7545014 8454751 (-7.78) (12.05)

Note: Figure in brackets indicates the growth (in per cent) overprevious year. The number

of lives covered by life insurers under the group scheme were 89.90 lakh recording a

growth of 60.16 per cent over the previous period. Of the totallives covered under the

group scheme, LIC accountedfor 33.18 lakh and private insurers 56.72 lakh. Thelife

insurers covered 37.86 lakh lives in the socialsector with a premium of Rs.34.13 crore. In

the ruralsector, the insurers underwrote 21.89 lakh policieswith a premium of Rs.1455.71

crore.

62

A Study on portfolio management service of investors @

INVESTMENT PORTFOLIO QUESTIONNAIRE:

Title: Investors perception towards portfolio management services

Sir/Madam I, Parag Kumar Kalita student of BNM Institute of Technology, conducting a study on

“A study on Portfolio Management services of investors at AEGON religare”. This study emphasis

on Investors preferences, there expectations and level of satisfaction with the performance PFM

Services. So, I kindly request you to give your valued opinion towards this study

1. Tell us a little more about your self

Name:-………………………………………….

Age:-………………………………

Sex: M/F……………………...

Occupation………………………

Income: up to 300000 [ ] 300000 to 600000 [ ]

6000000 to 900000 [ ] Above 900000 [ ]

2. Which asset management company or companies you are currently associated with?

AEGON religare co.ltd

IL & FS

Banks

Other’s specify

3. Why you opt to choose AEGON religare co.ltd

63

A Study on portfolio management service of investors @

4. From how long you are associated with AEGON religare co.ltd

Less than one year

One year- two years.

Two year-three years

More than three years

5. Are you satisfied with the rate of return on your investment portfolio services?

Extremely satisfied

Somewhat satisfied

Neither satisfied nor unsatisfied

Not satisfied

6. Why did you say so?

7. Which investment firm do prefer for investing in PFMS?

Private asset management Co.

Commercial banks

Other financial institutions.

8. Your preference towards terms or period of investment in PFMS?

Short term

Medium term

Long term

64

A Study on portfolio management service of investors @

9. To diversify the risk factor in your investment, you prefer to go with?

PFMS

Mutual funds

Bonds

10. Evaluation of PFMS at AEGON religare co.ltd

11. How do you rate PFMS at AEGON religare?

Excellent

Good

Poor

Fair

12. Your satisfactory level with the rate of return on your investment at AEGON religare

co.ltd

Less than 10%

10-15%

More than 20%

13. What is your interest to invest ?

Tax savings

Security

Investment

High return

65

A Study on portfolio management service of investors @

14. What is your interest to invest in any of type /organization funds?

Small cap

Mid cap

Large cap

Blue chip cap

15. What is your investment organization /sector?

Indian MNC

Foreign MNC

Government fund

Private money lending

16. Your suggestions to improve the services of PFM at AEGON religare co.ltd

66

A Study on portfolio management service of investors @

BIBLIOGRAPHY

BOOKS

INVESTMENT MANAGEMENT/DANIEL R. DANNY/ HIMALAYA

PUBLICATION/2007-08

PORTFOLIO MANAGEMENT/ SIDDHANT ROY & RALPH STRATON/

HIMALAYA PUBLICATION/2007-08

WEBSITES

www.aegonreligare.com

www.5paise.com

www.wikipedia.com

www.google.com

OTHER SOURCES

Newspapers such as Economics Times, Financial express, Business Line, etc.

Magazines such as Business World, Business Today, Investors Guide, Capital Market,

Portfolio management, etc

Date- 1/11/2011 10/11/2011 15/11/2011 30/11/2011

67