WEALTH

MANAGEMENT
Rudra Mishra [Date] INTERNSHIP
 DECLARATION

I Rudra Madhab Mishra (Roll No. 19202237,of batch 2019-21,KSOM

, KIIT University) hereby declare that project report titles “Wealth
Management Analysis of UAS International” submitted by me to
KIIT SCHOOL OF MANAGEMNT, KIIT University under the
guidance of Prof. Shikta Singh, KSOM, Bhubaneswar. All care has
been taken to keep the report flawless and I sincerely regret any
unintended discrepancy in this report. This summer internship report
has the requisite standard of the partial fulfilment of MBA at School
of Management ,KIIT University. To best of my knowledge and
belief, no part of this report has been reproduced from any other
report and the content are based on original research and live
experiences that I faced and underwent during a period from 8th June
2020 to 23rd July 2020 (45 days).
This is bonafide work undertaken by me and it is not submitted to any
other University or Institution for the award of any degree diploma /
certificate or published any time before.

DATE ;- SIGNATURE OF STUDENT ;-

PLACE ;-

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 ACKNOWLEDGEMENT

I express my sincere thanks and appreciation to all those with whom I

had opportunity to work with and whose thoughts and insights , ideas,
approach and ideas has helped me in furthering my knowledge and
understanding on the topic , that I have prepared for the project. My
sincere gratitude goes to my Corporate Guide Ms. Shreya Rastogi ,
Asst. HR Manager , UAS International, for her continuous support in
completing this project. I would also like express my thanks to Ms.
Mehak Kalia for her valuable support, suggestions and inspiration
which helped me to do the project. I also extend my thanks to Mr.
Ishan Taneja, Managing Director, UAS International foe allowing me
to do my internship in your esteemed organization.

I wish to express my sincere thanks to course, the very big

contribution of my faculty guide, Prof. Shikta Singh for her valuable
inputs and constant support. I owe her this project & stay ever
obliged.

Last but not the least I would like to thank KIIT School of
Management, for providing me with this wonderful opportunity and
the right platform to shape my career and excel in my academic
knowledge through this summer internship.

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EXECUTIVE SUMMARY

The report deals with wealth management of UAS International and

its various products and what impact does it have in relation to the
market competitors. The objective of the study was coceptual
understanding about the client desires , their preferences and their
understanding on various financial products available to them and
their investment. The report also helped in analysing and learning
about various financial sectors and their merits, demerits and
functions as well.
The study has been made on basis of various research i,e the
qualitative and quanitative analysis as well.The qualitative research
includes analysis of various merits and demerits of various financial
sectors.The information has been obtained through internet sources
and from prospective clients.
Various quesions were asked to the clients to gather the required
information.It was limited to the close end and thus has captured
detailed opinion from 20-30 clients
Some cold calls were done along with the corporate mentor who is a
Asst. HR Manager,as well in process of getting client motive and
information and interactions were done to know the reasons behind
the customer dissatisfaction and where do they lack in the
competition. In house presentations were done to let them understand
about USPs of the product and the beneifts associated to it.
A structured questionnaire was used to take feedback from the clients.
These feedback data were helpful to determine their behaviour, to
access the customers’ satisfaction level and to know what image and
what expectations the clients have from company’s products. The
ways through which the company can meet the expectations of the
customers, so that the optimum satisfaction level can be achieved.

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CONTENTS

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COMPANY PROFILE

UAS International, established in 2013, works on maximising returns

through our exclusive high profile network ranging from top
government banks to elite private banks. Initially started as a human
resource development organisation, we have since expanded and
flourished as a wealth management company aiming to provide
Portfolio Management Services (PMS) using our expansive range of
investment products. Also, in 2016, UAS International started a new
venture by the name of UAS International Holidays with the vision to
provide customised international and domestic tour packages for
group travels, corporate travel, college trips etc.

UAS International has facilitated various training and development

programs in India and abroad with top B-school and has trained
almost 67000 and above interns till date. We have liaison with 26
universities in India with the base size of 450 and above campuses.
We are looking out for Interns with specialization in Marketing and
HR, passionate to make their career in Banking and Financial Sector.
For this purpose, UAS International has also come up with
“International Live Projects” to train and develop the knowledge and
resource based skills of the candidates to fill the void of the business
environment.

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 THE DIFFERENTIATOR

• Client focused and able to look at the whole of the market on

your behalf, we are a young, dynamic and wholly independent
company built upon core values of honesty, integrity and a
client focused service.

• At UAS International we pride ourselves on providing choice,

value for money and the highest quality personal service - all
delivered in simple, jargon-free, terms.

• UAS International is led by a professionally qualified team of

advisers.

• We bring a fresh face and fresh perspective to a range of

financial matters and our proven track record has been built on
quality advice and integrity.

• UAS International is determined to build strong, long lasting,

personal relationships with our clients.

VISION

• Provide better financial planning.

• Help in managing the risk.
• Acts as a financial coach.
• Provide pro-active services.
• Provide customised service.

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 Learnings about Human Resource Modules

Recruitment process
• Recruitment planning
It basically refers to a prearranged strategy for hiring employees.
Recruitment planning makes the hiring process smoother, which
helps employer know that they are hiring individuals with
particular qualification and skills needed to do the job.
• Strategy Development

This stets unique position of the company on the job market. It

is generally prepared by Human resources, which drives the
whole business.

• Searching

This process deals with finding the right candidate i.e with
particular qualification and skills required for the job. This can
be done through internal and external recruitment , where the
candidates will be invited to apply for the position.

• Screening

This stage generally deals with identifying the knowledge and

skills through scanning the resume and matching the holistic
picture of candidate for the role.

• Evaluation and control

It is the final process where the validity and and effectiveness of

the process is are assessed. as recruitment is a costly process
hence it has to be done for better effectiveness and efficiency.

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 ADDIE TRAINING MODEL

The ADDIE model is the conventional procedure generally

utilized by instructional designers and training developers. It
consist of stages like Analyse, Design, Development,
Implementation, and Evaluation which represents a dynamic,
adaptable rule for building viable preparing and execution
bolster instruments. While maybe the most well-known structure
model, there are various shortcomings to the ADDIE model
which have prompted various side projects or varieties.

Analysis phase ;-
The analysis stage focuses on clarifying the instructional problem
where the instructional goals and objectives are established and
learner existing knowledges are identified.
Design phase ;-
It deals with learning objectives , assessment instruments , exercises
and contents. Designing a logic and orderly method identifying ,
developing and identifying and evaluating a set of strategies which
targets in attaining the project goal.
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Development phase;-
A stage where the developer creates and assemble the content asset
which were created in design phase. The project is therefore revised
and reviewed accordingly.
Implementation Phase ;-
During this phase a system for preparing the facilitators and the
students is created. The facilitators' preparation should cover the
course educational plan, learning results, strategy for conveyance, and
testing methods. Planning of the students remember preparing them
for new devices (programming or equipment).
Evaluation phase ;-
The assessment stage comprises of two sections: developmental and
summative. Developmental assessment is available in each phase of
the ADDIE procedure. Summative assessment comprises of tests
intended for area explicit standard related referenced things and
giving chances to criticism from the clients.

Types of interviews

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Formal interview
It is an arranged and well arranged meeting. It is directed in a
conventional climate in a fixed scene, time and through a board of
questioners. All the customs and systems are followed in this kind of
meeting. Indeed, even inquiries to be posed are chosen well ahead of
time.
Informal interview
It’s a unplanned and unscheduled interview and may take place
anywhere. The venue and time is not fixed, neither the type questions
are prepared. It consists of basic questions like name, age ,
qualification and birthplace.
Stressed interview
It is a conscious endeavour to make pressure and strain to see how a
candidate reacts under anxiety. Questioner puts the up-and-comer by
putting him under anxiety by intruding on the candidate from
replying, scrutinizing his sentiment, posing inquiries in quick
progression and saving quiet for unduly extensive stretch of time and
so on. This sort of meeting is directed just to discover how an up-and-
comer carries on in distressing circumstance.
Situation interview
In a situational talk with, you ask the competitor what their behaviour
would be in a given circumstance. For e.g., you may request that the
competitor set in a circumstance where his subordinate consistently
arrives behind schedule in the workplace. Along these lines, in this
sort of meeting the questioner checks the reac-tion of the interviewee
in a given speculative circumstance.
Panel interview
Its an interview conducted by a panel or a group interviewers. They
interview and judge each candidates performance and prepare list of
candidates in order of merit. Group judgement is made while selecting

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the best candidate as it seeks pool of collective judgements of several
interviewers.
Depth interview
This interview is done to test the candidates knowledge in an
particular area of interest and to get genuine image of the up-and-
comer in such region or subject. Specialists in the concerned region of
subject pose the inquiry to test the applicant's ability in the concerned
subject. In this way, up-and-comer is analysed altogether before he is
chosen for a specific post.

CTC COMPONENTS AND BREAKUP

CTC- It means the cost of company. The amount of expenses the

company will spend on an employee on a particular year.
COMPONENTS
Salary ;- It includes basic, DA, HRA and allowances.
Reimbursements ;- It includes bonus, incentives , reimbursement of
conveyance/medical/telephone etc including other benefits as well.
Tax benefits ;- Deductions from 80C-80U with stock options.

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 Taxation policies

Income tax act was passed in the year 1961. According to the act the
individuals need to pay tax on basis of their income. The tax money is
further used by the government for public services, defence spending,
and subsidies among other options.
There are various heads under Income Tax act under which we are
liable to pay tax, they are ;-
1) Salary
2) Income from house property
3) Capital gain
4) Profit and gains from business or operation
5) Income from other sources

Consistently, the Indian government presents a fund financial plan

during the long stretch of February. The spending plan gets different
corrections to the Income Tax Act. This remembers changes for
charge chunks any place appropriate. For instance, the Finance
Minister reported that the expense rate for people in the most reduced
duty section of Rs. 2.5 lakh to 5 lakh would be sliced from 10% to 5%
in FY2017. Thus, charge on Long Term Capital Gains (LTCG) was
re-presented during the FY2018 spending plan. Therefore, all
increases more noteworthy than Rs. 1 lakh from offers and value
common finances held longer than one year is presently qualified for
LTCG charge at 10%.

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 BASIC TERMINOLOGIES

- ASSESSEE 2(7) – Person liable to pay tax.

- PERSON 2 (31)– Individual, Hindu Undivided Family, Firm,

Company, Association of persons, Body of Individuals, Local
authority, Artificial and Juridical person.

- FINANCIAL YEAR 2(41) – Starting from 1st April to 31 March

- PREVIOUS YEAR 2(3) – Year in which Income is earned

- ASSESSMENT YEAR 2(9) – Year of paying tax on income

received in previous year.

Flow of calculations ;-

Receipts
less - Exempted tax
= Gross Total Income
less - Total deductions (80C AND 10(10D)
= Net total income
less - Tax payable (COMPUTED TAX)

ADD + SURCHARGE AND CESS ON TAXABLE AMOUNT

HENCE WE GET TOTAL TAX LIABILITY

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SURCHARGE

- It is an additional charge on tax. Basically known as tax on tax

- Slabs of surcharge ;-

50 Lac - 1crore = 10%

1 cr - 2 cr = 15%
2 cr – 5 cr = 25%
5 cr and above = 37%

- SURCHARGES IMPLEMENTED DURING COVID- 19;

- 70% special corona fees on liquor.

- Also applied on restaurant and salons as a precautionary cost of

Covid-19.

CESS ;- amount collected by government for specific purpose on

tax as temporary revenue.
Types – Education cess, clean environment cess, Swach Bharat
cess, Kishan kalyan cess.

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TAX RATE SLABS ;-

DIFFERENCE BETWEEN OLD AND NEW RATE SLABS

• The deduction starting from 80 C to 80 U can not be availed in

the new tax rate slabs, but only deduction available is. 10(10 D)
• All deductions can be availed in the old tax rate slabs.

Deductions
❑ SECTION 80C
– Deductions available by individual and HUF
- Contribution is to made to PPF or any LIC premium.
- Maximum amount of deductions available 1,50,000

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 ❑ SECTION 80 D – Payment made to Medical Insurance
Premium
- 25000 p.a for normal citizens and exceeds to 50,000 for senior
citizens
- Contribution made or 25000 whichever is lower will be taxable.

❑ SECTION 10(10D) - Income, sum assured or bonus on

maturity of any life insurance policy stands tax free in total.

CALCULATIONS USING EXCEL SHEET

SHEET-1 SHEET-2

rates amount RATES AMT

96671003 70080639
UPTO 2.5 -250000 NIL
96421003 UPTO 2.5LAC 250000 NIL
69830639
2.5-5 LAC 250000 2.5L-5L 250000
5% 12500 5% 12500
96171003 5L-7.5L 69580639
10% 25000
5-10LAC 500000
7.5L-10L 69330639
20% 100000 15% 37500
95671003 10L-12.5L 69080639
abv 10 LAC 28701301 20% 50000
12.5L-15L 68830639
30%
25% 62500
TOTAL 28813801 ABV 15L
30% 20574192
SURCHARGE 37%= 10661106
TOTAL = 20761692
SURCHARGE 37%= 7681826
TOTAL TAX PAYABLE=39474907
TOTAL TAX PAYABLE=28443554

- Calculations where bases on first 8 digits of mobile numbers

which are needed to be calculated on the basis of slab rates
available for individuals, senior citizens and super senior
citizens.

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 Financial sectors In India
A SECTOR WHICH COMPRISES OF VARIOUS FIRMS AND
FINANCIAL INSTITUTIONS WHO PROVIDE FINANCIAL
SERVICESTO CUSTOMERS AND OTHER SECTORS AS
WELL.

Types of financial sectors ;-

➢ BANKS
➢ SHARE MARKET
➢ MUTUAL FUNDS
➢ POST OFFICE
➢ REAL ESTATE
➢ GOLD
➢ PENSION
➢ EMPLOYEE PROVIDENT FUND (EPF)
➢ PUBLIC PROVIDENT FUND (PPF)
➢ INSURANCE

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• WE MAY CONSIDER SOME OTHER TYPES LIKE;-
o DEBT INSTRUMENTS / BONDS
o WEALTH MANAGEMENT
o NON-BANKING FINANCIAL SECTORS (NBFCs)

BANKING SECTOR

❑ The financial sector which licensed to receive deposits from

customers and provide loans and advances with financial
assistance in form of wealth management to customers.
❑ Types of banks;-
- Schedules banks
- Banks that are listed under second schedule of RBI act 1934.
- Includes banks like commercial and cooperative banks.

- Non-scheduled banks
Banks not listed under RBI act 1934.

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Commercial banks
The banks that Provide services to general public and to financial
companies as well.
Types of commercial banks
❑ Public sector Banks
These are the banks whose majority of stake is held by the
government. They are further classified as Nationalised banks and
state banks and its associates.
❑ Private sector Banks

The banks whose majority of stakes are held by the share

holders of the bank. The equity is owned by private bodies,
corporations and institutions.

❑ Foreign Banks

The bank that abides rules of both the host countries and foreign
countries. It is helpful for multinational corporate clients.

❑ Regional Rural Banks

The regional rural banks are the commercial banks operating in

different rural parts of the country. They are created with a view
of providing basic banking and financial services rural part of
the country.

❑ Small Finance Banks

It is a specific segment of banking created by RBI under

guidance of government of India with a motive of providing
financial inclusions to un-served or underserved category.

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COOPERATIVE BANKS;- Banks whose main objective is to
provide financial assistance to economically weaker section of
society.

Types
➢ Central Cooperative Banks
This bank operates at a district level in various parts of the
country. It provides banking service to rural and agricultural
sector.
➢ State Cooperative Banks
It is a federation of central cooperative bank and acts as a
custodian of cooperative bank structure
➢ Primary Cooperative Banks
It is otherwise known as Urban cooperative banks. These are
traditionally centred around communities and work place. And
provide financial facilities to small borrowers and business.
➢ Land Cooperative Banks
These are LDBs and CARDBs ,provides short term and long
term credit as well especially for improvement of lands.

• LDBs are Land development Banks

• CARDBs are Cooperative agricultural and rural development
banks.

These banks provide financial aid to agricultural sector for purchase

of machineries and equipment for development of this sector.

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PAYMENT BANK
A Payment bank resembles some other bank, yet working for a little
scope without including any credit risk. In straightforward words, it
can complete most financial activities yet can't propel advances or
issue Mastercard. It can accept demand deposits (up to Rs 1 lakh),
offer settlement administrations, mobile payment / transfers and other
financial administrations like ATM/check cards, net banking and third
party fund transfers.

▪ INTRODUCED IN THE YEAR 2015

▪ Restricted deposit of 1 Lac.
▪ Current and Savings A/c can be opened.
▪ Can issue debit card.
▪ It cannot grant loan.
▪ Cannot issue a credit card.
▪ No subsidiaries
▪ NO NRI deposits.

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 PRIMARY FUNCTIONS OF BANKS ;-

▪ Accepting Deposits
▪ Granting Loans and Advances
▪ Credit Creation

➢ SECONDARY FUNCTIONS OF BANKING ;-

• cheque Clearance
• Sale / Purchase of Bonds.
• Money Transfer
• Act as trusty
• Letter of credit
• Locker
• Representative

LOAN
- It is a debt facility provided for a period more than one year.
- Loan can be secured or unsecured
- Larger Amount
- Interest is charged on loan
- Involvement of security is there.

ADVANCES
- It is credit facility provided for a period less than 1 year.

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 - Advances are secured
- Smaller amount
- Very few or no interest is charged
- No involvement of securities

ADVANTAGES

- Safety of Public wealth

- Availability of cheap loans
- Propellant of economy
- Large Scale economy
- Development in Rural Areas
- Earn Interest On deposits

DISADVANTAGES

- Chances of Bank going Bankrupt

- Risk of fraud and robbery
- Risk of public debt
- Payment of commission for A/c maintenance

TYPES OF ACCOUNTS;-
Savings account – Interest available on deposit with over draft up to
Rs 5K
Current account – No interest Available as its used for commercial
purpose.
Recurring deposit account – Interest on recurring deposits.
Fixed deposit account – Large amt with Lockin period and more
interest.
Demat Account – Used for Trading in share market.
NRI Account – For NRIs.

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SHARE MARKET
A place where consumers come up to invest their money by
purchasing shares of various companies listed under SEBI (Securities
and Exchange Board of India)Act, 1992.
SEBI regulates with an objective to protect interest of consumers and
to promote security market as well.

Market types ;-
Primary Market
- The market which deals with transactions of new shares or
stocks.
- IPO (initial public offering) takes place.
Secondary market
✓ Investors buy and sell securities they already own.
✓ Transactions take place between investors.
✓ Price is determined by the force of supply and demand.
A place which gives consumers a platform investing, holding, trading
faster efficiently and effectively.
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ADVANTAGES
- Higher liquidity
- Versatility
- Get voting rights
- Higher returns in short period
- Convenience

DISADVANTAGES ;-
- Highly Risky
- Highly volatile
- High waiting period
- Depends on performance and financial stability of company
- Odd lots and fess

If broker is hired than chances of Churning are high, They transact the
shares without permission just to increase their commission.

Stock exchange in india

BSE- BOMBAY STOCK EXCHANGE

- Established in the year 1875.
- Base on top 30 companies and free floating marketing cap.
- Has its own equity index name (SENSEX - Sensitive Index )
- BOLT BSE online trading was introduced in 1995.

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NSE- NATIONAL STOCK EXCHANGE
- Established in the year 1992
- Based on top 50 companies and their free float cap.
- Has its own equity index named NIFTY (National Income Fifty
Fifty.)
- Removed paper based trading and introduced online platform.

BOMBAY STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

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MUTUAL FUND
It is a service of various funds of different asset class, primarily debt
and equity linked. Consists of stocks , bonds and other investments.
Have low risk products with tax benefit and stable returns and
managed by fund manager or portfolio managers.

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Types of mutual fund ;-
➢ Asset class
➢ Structure
➢ Investment goals
➢ Risk
➢ Specialised

Money is given to fund, it is invested in a diversified manner , in

stock , in debentures any many other options.
Profit earned or loss incurred is to be accrued by customers.

Advantages ;-

- Easy buy, Easy exit

- Diversification
- Expert Management
- Less cost for bulk transactions
- Quick processes
- Safety
- Tax efficiency

Disadvantages
- Cost to manage funds
- Lock-in periods

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Specialty funds
It is a type of mutual fund that focuses their equity investing within a
specific industry of the economy. Some cover broad sector and some
direct their investment on an industry group with a sector. Some
sectors are energy, finance, health care etc. To be classified as a
specialty fund a fund must invest 25 % of its portfolio into one sector.

Some important points ;-

1. Before investing in any fund, you must first identify your goals
for the investment.
2. A prospective mutual fund investor must also consider personal
risk tolerance.
3. A potential investor must decide how long to hold the mutual
fund.
4. There are several major alternatives to investing in mutual
funds, including exchange-traded funds (ETFs).

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Post office
The post office offers various types of deposit schemes for those
looking to invest. These schemes are also known as small savings
schemes.
The USP of these schemes is their sovereign guarantee, that is, they
are backed by the central government.
Some of these schemes such as NSC, SCSS etc. also offer tax-saving
benefits under section 80C of the Income-tax Act.

Types of account under post office ;-

• Post Office Savings Account
• National Savings Recurring Deposit Account
• National Savings Time Deposit Account
• National Savings Monthly Income Account
• Senior Citizens Savings Scheme Account
• Public Provident Fund Account
• National Savings Certificates (VIII Issue) Account

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 • Kisan Vikas Patra Account
• Sukanya Samriddhi Account

Details about the schemes of post office

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ADVANTAGES ;-
➢ Limited documentation
➢ Tax exemptions
➢ High interest rates
➢ Different buckets of products
➢ Easy to invest
➢ Minimum amount to be Rs 10 or 50.

DISADVANTAGES ;-
- Less liquidity
- Stringent monthly deposits
- Not digitalised
- Centralised
- Unfriendly staff
- Post Office Agents Rule the Roost

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REAL ESTATE
One of the key ways investors can make money in real estate is to
become a landlord of a rental property, residential and commercial
property as well.
Flippers buy undervalued real estate, fix it up, and sell for a profit.
Real estate investment trusts (REITs) provide real estate exposure
without the need to own, operate, or finance properties.

How to invest;-
- Real Estate Investment Trusts (REIT)
- Real estate wholesaling
- Real Estate Mutual Funds
- Online Investment Platforms
- Hard Money Loans.

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ADVANTAGES ;-
- INSTANTANEOUS DUAL INCOME
- GREAT INFLATION HEDGE
- SAVES INCOME TAX
- PROVIDES LEVERAGE

DISADVANTAGES;-
- CAPITAL GAIN TAX IS APPLICABLE (20%)
- HIGH INVEETMENT COSTS
- HIGH MAINTENANCE COST
- LESS LIQUIDITY
- LESS AVAILABILTY OF COUNSUMER TO SELL OFF
- NOT AFFORDABLE BY PEOPLE OF ALL CATEGORIES

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GOLD
Investing in gold is worthwhile because it is an inflation-beating
investment. Over time, the return on gold investment has been in line
with the rate of inflation.
Gold has an inverse relation with equity investments. For example, if
the equity markets start going down, gold would perform well.
Considering gold as an investment option in your investment portfolio
will be a buffer to the overall volatility of your portfolio.

HOW TO INVEST ?
- There are ways of owning gold - paper and physical.

- You can buy it physically in the form of jewellery ,coins, and

gold bars and for paper gold you can use gold exchange traded
funds (ETFs) and sovereign gold bonds (SGBs).

- Then there are gold mutual funds (fund of funds) which further
invest in gold ETFs. There are gold MFs (fund of funds) which
invest in the shares.

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ADVANTAGES ;-
• Simple and Easy to Liquidate
• Proven Hedge Against Inflation
• Wealth creation
• Tangible resource

DISADVANTAGES ;-
➢ Safety issues
➢ Not a stable source of income
➢ Low liquidity
➢ Instability of rates
➢ Varied charges
➢ Storage and security issues

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PROVIDENT FUND
- Employee provident fund
- Public provident fund
A retirement benefit scheme plan where both employer and employee
contribute a certain percentage of salary.
Governed under EPF and Misc. Provision act 1952.
Covers every establishment in which 20 or more persons are
employed.
Employee can voluntarily pay higher contribution above the statutory
rate of 12 percent of basic pay

ADVANTAGES ;-
➢ Higher earnings to the members.
➢ It improves savings of individual in the long-term.
➢ Benefits for future
➢ Easy premature withdrawal.

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 DISADVANTAGES ;-
- For claiming final PF settlement, one has to retire from service
after attaining 55 years of age.
- 15 years lock in period for amount contributed.
- Partial withdraw limits
- Available only for employed individuals.

CERTAIN WITHDRAWL RULES OF EPF ;-

Public provident fund (PPF) ;-

❖ It is a scheme by government of India where individuals can
contribute individually irrespective of employment status.
❖ One of the safest investment products. i.e., the government of
India guarantees your investments in the fund.
❖ The interest rate is set by the government every quarter.
❖ PPF scores over many other investment options mainly because
your investment is tax exempt under section 80C of the Income
Tax Act (ITA) and the returns from PPF are also not taxable.

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ADVANTAGES ;-
- It generates guaranteed returns
- The minimum subscription amount is also minimal which is 500/-
per year.
- Can be claimed for tax rebate under Section 80C of Income Tax.
- Interest earned and maturity proceeds are exempt from tax
- It can be opened in the name of minor along with guardian.
- Loan facility in PPF account is available which can be availed
between 3rd to 6th financial year.
- Partial withdrawal facility in PPF account is available which can
be availed from 7th financial year onwards.
- PPF account can be extended for a minimum term of 5 years on
in multiple of 5 years thereon as long as the account holder
wishes.

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Disadvantages ;-
➢ It cannot be opened by HUF, NRIs, Trust etc.
➢ Lack of liquidity.
➢ It has a big lock-in period of 15 years
➢ There is a capping of Rs 1.5 lakh per annum on deposit of
amount in a PPF account.
➢ PPF account cannot be closed prematurely(except in case of
death)
➢ Joint account is not permissible.

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 EPF vs PPF

INSURANCE
Investing in a good life insurance helps in putting worries to rest.
Your insurance investment will take care of your family in any
situation
Help in replacing lost household income, paying for the education of
your kids
Providing financial security to your spouse if something happens to
you.
Governed under IRDAI Act, 1991.

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Types of insurances ;-

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Advantages ;-
✓ Provides economic protections Economic Protection.
✓ Shares risks.
✓ Maintains standard of living.
✓ Encourages saving Savings
✓ Eliminates dependency.
✓ Helps reduce inflation.
✓ Mental peace.
✓ Security

Disadvantages ;-
- Does not compensate all type of losses.
- Lengthy legal formalities
- Time consuming
- insurance forces you to think about your mortality

DEBT INSTRUMENTS / BONDS

A bond is simply a loan taken out by a company.
Instead of going to a bank, the company gets the money from
investors who buy its bonds.
In exchange for the capital, the company pays an interest coupon—the
annual interest rate paid on a bond, expressed as a percentage of the
face value.

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TYPES OF BONDS ;-
Treasury bonds
- Government bonds.
- Investment-grade corporate bonds.
- High-yield bonds.
- Corporate bonds.
- Mortgage-backed bonds.
- Municipal bonds.

Advantages
• Bonds tend to be less volatile and less risky than stocks,
• Maturity can offer more stable and consistent returns.
• Interest rates on bonds often tend to be higher than savings rates
at banks, on CDs, or in money market accounts.
• Bonds also tend to perform well when stocks are declining, as
interest rates fall and bond prices rise in turn.

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Disadvantages ;-
➢ Investment returns are fixed.
➢ Larger sum of investment needed
➢ Less liquid compared to stocks
➢ Direct exposure to interest rate risk

NON BANKING FINANCIAL COMPANIES ;-

A Non-Banking Financial Company (NBFC) is a company registered
under the Companies Act, 1956.

Functions ;-
Engaged in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by Government
Leasing, hire-purchase, insurance business, chit business but does not
include any institution whose principal business is that of agriculture
activity.

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BANKS Vs. NBFC

DISADVANTAGES
▪ NBFCs cannot accept demand deposits as it falls within the
realm of activity of commercial bank

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 • An NBFC is not a part of the payment and settlement system
and as such an NBFC cannot issue cheques drawn on itself
• Deposit insurance facility is not available for NBFC depositors
unlike in case of banks
• Only those NBFCs holding a valid Certificate of Registration
with authorization to accept Public Deposits can accept/hold
public deposits.
• The regulatory mechanism for NBFCs is stringent

RESEARCH ON CUSTOMER
Client desires

Better returns and growth

• Whenever a client invests in any of the financial product the

basic desire which comes to his /her mind is better growth
and return within a specific time period.

Safety and security

• The second focus and desire of customer is on safety and

security of their investment that is either they would be
getting the basic amount invested or not.

Liquidity and marketability

• Than they focus on convertibility of their investment into

cash. Getting them in form of cash in case of emergencies.

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Returns without volatility

• They also expect returns without rapid change in returns .

Less lock-in periods ;-

• Expectations for return with less time periods without

investing and putting them into a particular sector dor a long
time period.

Less cost of investment ;-

• The cost incurred to make an investment must be least or

even there must not be any cost for investing and trading as
well.

Proper digitalisation ;-

• There must be proper platform for checking their investment ,

its growth or decline. Simply to have a track on it,

Must be legalised sector ;-

• Customers always prefer to invest in sectors which is

legalised or covered under any act.

Tax savings and deductions;-

• The investment should provide them benefits of deductions

under Section (80C- 80U) and other tax benefits as well.
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Must have less time consuming and less paper work

• During emergencies and contingent situations they must not

face any paper work and legal proceedings for getting them in
form of cash.

Must benefit all the members including the individual himself

• The investments must benefit the family members and must

cover them in the schemes as well.

For diversification and low risk of loss

• To diversify their funds into various sectors to reduce risk of

loss and varied return which would cover both profit and
losses and for stability in income.

Stability in income;-

• The root reason behind investing money is to create sources

for constant or stable income and growth.

For future needs and income

• Consumer also invest for future income or needs and for
specific reasons as well , for their children and their growth .

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Important terminologies
Policy owner ;-
• Generally this refers to the person who holds an insurance or is
in contract with any insurance company , as an insured and the
company being insurer.
Person insured
• It refers to the person who is covered under any insurance or
who is being indemnified by an insurer against any losses to be
incurred. ( Life or Health or any insurance )

Nominee
• A person nominated by an account holder or an policy holder
for transferring the sum or amount of money in case of death of the
account holder or policy holder. The nominee acts as an legal heir for
the person insured.

Surrender value
• The amount to be received by the policy holder if the insured
desires to exit the contract period of the insurance or exit the policy
before the maturity date

Death benefit
• It is the amount which to be paid off to the beneficiary of a
insurance or annuity, when the insured person dies. The person
receives the claim amount or other benefits on death of any
benefactor.

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Sum assured
• The amount or value of insurance cover provided while the
insurer comes in contract with insured for an policy in case of any
contingencies or uncertain situation.

Reversionary bonus
• The amount added to the value of life insurance policy (i.e) sum
assured + sum of bonuses. It generally the amount of profit allocated
to each participating policy, added at the end of each financial year
and paid off while claimed.

Accrued reversionary bonus

• It is the bonus that is contingent on performance. Amount of
bonus is declared annually and is to be paid off during the time of
maturity or claiming the insurance amount.
Terminal bonus
• It is the extra amount to be paid with policy amount when the
policy holder reaches a particular age or dies. When the policy is in
force for a very long time not for the policies surrendered before
maturity .
Assignment
• It is defined under section 38 of insurance act, 1938 that when a
insured person ( assignor) transfers life insurance policies to another
person ( assignee) for various reasons. The rights and benefits may be
transferred but not the liabilities and obligations.
Proposer
• It is the policy holder who proposes to enter an insurance policy
contract with an insurance company to insure himself or another
person paying the premium of the policies.

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80C
• Defined under Income Tax Act , 1961. It allows Individuals and
HUF to claim a deduction upto Rs. 1,50,000 for ay contribution made
by them in any life insurance policies or any schemes.

10(10D)
• Defined under income tax act, 1961, which says the amount
received on maturity or surrender policy or on death of insured are
completely tax free in hands of insured subject to certain conditions.

Mortality charges
• It is otherwise known as cost of insurance charged every year by
the insurer to provide life coverage. Generally charged for guaranteed
sum assured paid on pre-mature death of policy holder.

Term plan
• It is purely a life insurance which guarantees payment to the
spouse or nominee/ beneficiary in case of death of insured person.
Generally based on person’s health , ,age and life expectancy. On
expire it can be renewed or terminate or convert to permanent
coverage.

Policy Term
• It is the time period that the insurance policy will cover you or it
refers to the time up to which you have to pay your premium amount
for the insurance . If in case insured dies and policy is active a death
benefit might be given.
Premium paying term
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• It refers to the period or no. of years the policy holder has to pay
the premium amount. But the policy term stands little different as it
says the time period till which policy remains active and offers
protections or benefits. It may differ which type of insurance
companies but its almost same.
SALE PITCHING
1. KNOW YOUR AUDIENCE
• Pitch the right person
• Make an appointment with your customer
2. CRAFT YOUR PITCH
- Know your product very well.
- Avoid canned pitching
- Practise your speech
- Use simple language
- Keep it short
3. HIGHLIGHT BENEFITS NOT FEATURES
4. ANCHOR PITCH IN DATA
5. MAKE COLD CALLS
6. EXPLAIN EVERY DETAILS ABOUT YOUR PRODUCT
- Benefits that consumers will get out of it.
- The USPs
- Where does it stand in the market among the competitors.
7. BUILD RELATIONSHIP WITH CUSTOMERS.
8. INITIATE SALES
9. CONVINCE THE CONSUMER
- Get feedbacks from them
- Help them solve the issues related to the product.

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RESEARCH ON THE PRODUCT

About PNB
- Punjab National Bank, India’s first Swadeshi Bank, commenced
its operations on April 12, 1895 from Lahore.

- Indian multinational banking and financial

services company.

- CEO of PNB – S.S Malikarjuna Rao.

Turnover

SERVICES PROVIDED BY PNB

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 MetLife
Founded in 1868, MetLife, through its subsidiaries and affiliates, is a
global provider of life insurance, annuities, employee benefits and
asset management.
Managing Director & CEO - Ashish Kumar
Srivastava
Serving approximately 100 million
customers and 90 of the FORTUNE 100® as
clients
Headquartered in New York, NY, MetLife and its affiliates offer a
full range of insurance and other financial products and services.
It offers life insurance, annuities, automobile and homeowner's
insurance and retail banking services to individuals as well as group
insurance, reinsurance and retirement and savings products and
services.

Turnover
Products - Insurance, Annuities,Employee Benefits
Revenue US$67.941 billion (2018)
Operating income US$6.307 billion (2018)
Net income US$5.123 billion (2018)

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MERGING OF PNB AND METLIFE
Both PNB and MetLife India approached the Competition
Commission of India (CCI) on 7 December 2012. In January 2013,
PNB received full approval for acquiring 30% stake in MetLife India
Insurance. This new private sector life insurer was re-branded as PNB
MetLife India Ltd.

PRODUCTS ;-
▪ PMLI Super Saver Plan - Long Term Savings
▪ PMLI Guaranteed Savings Plan - Long Term Savings
▪ PMLI Mera Jeevan Suraksha Plan - Life Protection
▪ MetLife Mera Tera Plan - Protection for Your Family
▪ MetLife Retirement Savings Plan - Retirement Plan
▪ PMLI Whole Life Wealth Plan - Long Term Savings
▪ MetLife Mera Wealth Plan - Life Protection
Offers affordable premium at a very nominal rate. Offers flexibility to
choose the term of the rider and sum assured to meet different needs.
Offers protection by providing additional health cover under the base
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policy. Section 80C and 10(10D) under the Income Tax Act, provides
tax benefits for premiums paid regularly.

THE PRODUCT DETAILS

PNB MetLife Endowment Savings Plan Plus, is an endowment life

insurance plan that helps you accumulate your savings for your
financial needs at every stage of life. Additionally, this monthly
savings plan provides life cover to protect your family along with an
option to protect your goals against critical illnesses

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Product Benefits of Endowment Savings Plan Plus

Maturity Benefit
- On survival of the Life Assured till the Maturity Date, the
Maturity Benefit payable will be the sum of:
Sum Assured on Maturity.
- Accrued Simple Reversionary Bonuses
- Terminal Bonus, if any
Death Benefit

In the event of the unfortunate death of the Life Assured during the
policy term provided that the policy is still In-force status on the date
of death, the nominee shall receive Sum Assured on Death (as
described below) plus the accrued Simple Reversionary Bonuses plus
Terminal Bonus, if any, subject to a minimum of 105% of total
premiums paid up to the date of death and the Policy shall terminate.
Where Sum Assured on Death is the highest of:
• 10 times of the Annualised Premium
• Basic Sum Assured (BSA) which is the absolute amount assured to
be paid on death

**The USP of this product is it provides Covid-19 coverage.

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BASICS ABOUT PRODUCT
- The investment term is of 15 years
- Investor can avail both 80C and 10(10D) on the maturity
amount
- Death benefit is provided (premium paid *10 times )
- Age limit is 50 years. (policy holder)
- Age limit for insured (1 yr - 60 yrs)
- The minimum premium amount to be paid is Rs.31,000
- Return of premium available.
- As the product is covered under 80 C and 10(10D) , the rate of
interest is (guaranteed 8% and .65 is non-guaranteed)
- All deaths are covered along with suicidal deaths.
- The same amount can be reinvested after maturity.

Research Methodology

Primary data is the data which is collected by the researcher

directly from his own observations and experiences. For example,
if the researcher conducts a survey for the collected of data then
it is known as primary data
Primary data can be collected by:
a) Observation
b) Survey
In short, all first-hand experiences.

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But here, only observation method is useful as I visited some of
the dealer showroom and interacted with them so according to
their preference.

Secondary data is data that has already been collected and

collated by somebody for some reason other than the current
study. It can be used to get a new perspective on the current study,
to supplement or compare the work or to use parts of it, as another
study may prove costly and time consuming .Secondary data are
collected by
1) Websites
2) Newspapers
3) Journals
4) Magazines

Limitations of the Study:

There are certain limitations of this studies are:

• This study is limited to Bhubaneswar Region.

• It is only for short period of time. [2 months]
• Survey is limited to number of people.
• The sample size is only about 20-30 customers and dealers so the
sample may not be truly representative.
• Some respondents did not provide the all and accurate data.
There may be some biased response from the respondents.

1. Shortage of Time- The time period of study was very limited. A

period of 8 weeks is not enough for the proper study of the project.
2. Biasness in the Responses-The answers provided by the
respondents suffer from biasness.

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 1. Have you ever heard about PNB Metlife Insurance?

From this survey we could see that consumers know about the product.

2. If Yes through which source?

From the survey conducted, the customers said that they have heard about
PNB Metlife through TV Ads mostly, then some via internet, friends anf
families and print media.

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3. When you purchase insurance, which factor(s) do you consider?

Here we can see that most important factor for a consumer while buying insurance
is the benefit which the insurance provider shall provide to the insured.

4. What amount are you ready to pay for insurance? (Per Annum
Basis)

The maximum amount a consumer can spend for insurance ranges from 5k-15k.
and a very few people can pay 15k and more out of their pocket for premium
amount in a yearly basis.

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 5.Will you purchase any Insurance during this pandemic?

From this survey we can assume that more than half of the consumer are not
interested in purchasing any insurance during this pandemic because of the
premium amount. It is the purchasing power of consumers has gone down due to
salary cut-off or due to loss in job as well.

6. Does your Insurance provide coverage for Covid-19?

Here, we can assume that half of the insurer doesn’t provide coverage for covid-
19.

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 7. how satisfied are you with your current service provider ?

Around 67% of the consumers are absolutely satisfied with the services and
benefits provided by their insurance company. 25% are very satisfied with the
benefits and very few are dissatisfied as well. Thus all that matters here the most
is the price they pay and the benefit they get out of it.

8. If you do not have any insurance coverage, why are you no insured?

According to this survey we can see that reason behind a person not buying
insurance is the past experience associated of consumer which is either
associated with the premium amount or with benefits and services provided by
the insurance companies.

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 9. Which Insurance co. would you prefer among these?

This survey shows that the most preferred insurance provider is LIC. It is because
the premium amount is very low and the benefit provided by it is somehow
considerable. The 2nd most preferred co. is SBI.

10. And why? (based on Q.9

Through this survey we can conclude that the most important factor associated
with buying of an insurance is the benefit and than the price. We cant assume
from the brand name that an insurance company is good or bad.

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 RECOMMENDATIONS

• Better marketing aid material can be created.

• Can improve its digital media presence.

• They can maintain software to keep updates about the stocks.

CONCLUSION

From the survey conducted, it can be concluded that the customers prefer more of LIC
products. As it is more reliable and due its brand value, The consumers when select this
they mostly provide good service with least premium amount. As LIC has a legacy and
is a reputed brand so customers are loyal to the brand. And also LIC is known for its after
sales and good customer service so any complaints after the purchase are easily addressed
so they prefer more of LIC.
The Metlife need to do bit market research to know better about the needs of the
consumers. Mainly the benefits they want out of the insurance they are paying for. The
second most thing they must look after is the after sale services and maintain a healthy
relationship with the consumer.

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