Q1.
Financial services in Ind
In last few years, India has emerged as the one of the most rapidly growing economies in the world.
India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to
be the prime drivers of world economy in next few decades. Since the time, India first opened its
gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional
Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm.
India along with other Asian powerhouse China makes for the fastest growing nations in the entire
world.
Even if we take the case of ongoing global recession, India has managed to perform far better than
other nations. Right from banking system to financial regularities, the country has thrived on
discipline and out-performance. The booming Indian economy resulted in widespread growth and
arrival of new industries. The most sparkling phenomenon is in form of financial market of India.
Financial services in India has taken a giant leap from the days of standing in banks queue for several
hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial
services have increased manifold and now people have the choice to choose the one that most
suitably fits the bill.
There are several services like broking firms, investment services, financial consulting, evergreen
national banks, numerous private banks, mutual funds, car and home loans, equity market and other
banking services. Services are many and offered by blue chip names of the industry. Most of the
companies in financial segment offer taxation services, project consultancy services and all the
services of wide financial gamut.
Whether it’s taking a car loan or booking your favorite house, going for pension plan or getting your
child insured, numerous attractive financial services are available at affordable costs. Personal
banking services have acquired an altogether new meaning. Now customers have multiple choices to
choose from. One can find all the financial services on the internet that are just a call away.
Q2.. Role f merchant bankers in fin services
Merchant banks invest their own capital in client companies and provide fee-based advice services
for mergers and acquisitions, among other services they provide.
Merchant banking practices take care of the needs of commercial international finance, stock
underwriting, and long-term company loans. This type of bank primarily works with other merchant
banks and financial institutions with its prominent role being that of stock underwriting, and the
bank works in the realm of private equity where securities of a company are not available for public
trading.
Of the most common private equity investment strategies, these include venture capital, leveraged
buyouts, distressed investments, growth capital, and mezzanine capital. Leveraged buyouts
generally obtain majority control over existing or mature firms, whereas growth capital and venture
gains invest in younger or emerging corporations without obtaining the majority of control.
Merchant Banking Then and Now
Merchant banking began practice during the Middle Ages in Italy and was introduced by grain
merchants, making them the original banks.
In today’s world, merchant banking involves many activities to include credit syndication, portfolio
management, mergers and acquisitions counseling, and acceptance credit, etc. Today’s merchant
banks do not have the same characteristics of their predecessors.
Q3. 5 mutual fund comp in Ind
Major Mutual Fund Companies in India
ABN AMRO Mutual Fund
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India)
Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd.
was incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO
Mutual Fund.
Birla Sun Life Mutual Fund
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life
Financial. Sun Life Financial is a golbal organisation evolved in 1871 and is being
represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from
India. Birla Sun Life Mutual Fund follows a conservative long-term approach to investment.
Recently it crossed AUM of Rs. 10,000 crores.
Bank of Baroda Mutual Fund (BOB Mutual Fund)
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the
sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of
BOB Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the
custodian.
HDFC Mutual Fund
HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers nemely Housing
Development Finance Corporation Limited and Standard Life Investments Limited.
HSBC Mutual Fund
HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets
(India) Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the
Trustee Company of HSBC Mutual Fund.
