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Under the Guidance of: Mr .Ashish Agrawal Branch SalesManager, Axis Bank Varanasi
Flow of Presentation
COMPANY PROFILE RESEARCH METHODOLOGY DATA PRESENTATION & ANALYSIS FINDINGS SUGGESTIONS LIMITATIONS
2 Analysis of investment pattern of individual investors
COMPANY PROFILE
y Axis Bank (erstwhile UTI Bank) was the first of the new
private banks to have begun operations in 1994. y The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crores(27.08%), LIC - Rs. 7.5 crores(10.36%) and GIC and its four subsidiaries contributing Rs. 6 crores(4.96%). y The Bank has a very wide network of more than 827 branches and Extension Counters (as on 31st March 2009).The Bank has a network of over 3595 ATMs (as on 31st March 2009). y In July 2007 UTI Bank re-branded itself as Axis Bank.
3
Net Profit
10.71
18.13
69% 35%
1096
1477
WEAKNESSES
Low brand awareness
OPPORTUNITIES
SWOT
THREATS
Increasing customers preferences towards Private sector banks. Large untapped rural market.
Stiff competition
To analyze the investment pattern of individual investors. To suggest means to the bank for more cost effective functioning.
Research Design
Research design: Analytical research design
SAMPLE DESIGN
Population Sampling Unit Sample size Sampling technique Data Collection Tool Location Duration Individual in Varanasi region
Individuals
150 Non probability sampling technique Convenience Sampling
Life Insurance
RISK
PUBLIC PROVIDENT FUNDS POST OFFICE SAVING SCHEMES BANK FIXED DEPOSITS BONDS & DEBENTURES
LOW RISK
10
INVESTMENT DECISION
LEVEL OF KNOWLEDGE
11
9%
YES NO
91%
13
CONCERN FOR RISK How much risk are you willing to bear?
TENURE OF INVESTMENT Which of the following investment horizons do you feel most suitable?
>20yrs 8% <5yrs 35%
10-20yrs 13%
INVESTMENT OPTION PREFERRED Which of the following investment options do you find most suitable for investment?
GOVT SEC, 3%
SHARES, 16%
BONDS, 1.30%
MF, 28%
16
Which of the following factors do you find most crucial in choosing an investment option
70% 60% 50% 40% 30% 20% 10% 0% 61%
PERCEPTION OF AN INDIVIDUAL ABOUT HIS AWARENESS OF INVESTMENT How would you describe your knowledge about investing?
Little or No 24%
Some 42%
19
FINANCIAL ADVISORY SERVICES AVAILED Do you avail the services of financial advisors?
YES 29%
NO 71%
20
If you are given a better option for investment, will you go for it
NO 27%
YES 73%
21
FUTURE INVESTMENTS PLANS Do you want to know about any of the following investment options in future?
28% 11.30%
8%
7.30%
MF
bonds
LI
Gold
Govt.Sec
SHARES
Break-up of respondents
Age wise
55-64yrs 7% 65+ 0%
Income category
>30,000 8%
40-54yrs 27% <30 yrs 37%
20,00030,000 17%
<Rs.12,500 45%
15,00020,000 8%
30-39yrs 29%
15,50015,000 22%
60%
60%
55%
50%
46% 40%
40%
36%
35.00%
30%
20%
10.00%
10%
0%
0% <30 30-39 40-54 55+
24
25
7.196 2.99
1.151
FINDINGS
1.The investors prefer to take moderate risk so that they can get adequate return. The risk appetite of the investors is inversely proportional to their age. 2.The investors mainly invest for the purpose of savings. 3.Mutual fund is preferred mostly by people with young age. Old age investors mostly prefer fixed income options. 4. The investors were ready to go for better options if given by bank. 5.Most of the investors were disappointed by the transparency of the companies in relation to charges, particularly in case of life insurance.
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FINDINGS
6. Most of the investors are not having financial advisors. 7.The investors were willing to go for mutual fund for future investment but only through the agents they have consulted earlier. 8. The investors are not willing to invest in the stock market directly. The reason behind this can be lack of adequate knowledge. 9. Most of the investors were not aware of the financial services provided by bank.
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SUGGESTIONS:
1.
The investors should be made aware of all the details while selling them them any investment avenue. The financial agent must consider the age and risk appetite of the investor before pitching the investment products. The sales personnel must be fully abreast with the features and risk factors related to the financial products.
2.
3.
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SUGGESTIONS:
4. An attempt can be made by the bank to increase the investment
awareness of the individuals through promotional activities. 5. Once a prospect is converted into a customer, care must be taken about the services which have been promised to him. He must be well informed about the changes regarding market fluctuations so that accordingly he can adjust his investments to minimize risk.
Limitations
y Due to the time constraint, the study was not able to include more
individuals.
y The reluctance on the part of the individuals was also a major set
back.
y Analysis was based on observation and interpretation on the basis of
sample survey.
y Being a student I undertake this project as a learning experience. I
QUERIES
THANK YOU