WELINGKAR INSTITUTE OF MANAGEMENT RESEARCH &

DEVELOPMENT

SUMMER PROJECT

ON

WORKING & ANALYSIS OF BANKING CHANNEL SALES AT TATA

MUTUAL FUND

BY

SAMEER HASSIJA

PGDM 2009 – 11 TRIMESTER IV

ROLL NO 108
 Acknowledgements

In the first place I would like to take this opportunity to acknowledge my at most sincere
thanks to my mentor and guide Mr. Shailesh Mehta & Mr. Vikas Gupta, without
whose support and guidance the project would not have been completed. My regular
interaction with them on the above topic helped me understand the concept thoroughly
and putting it in proper shape and size.

I would also like to thank Mr. Rajiv Kumar for giving me this internship opportunity to
work with a prestigious brand like Tata Mutual Fund, which is definitely going to help
my profile become stronger. Also special thanks to all the banking distributors who I got
an opportunity to meet through Shailesh Sir, without their inputs this project would not
have been completed today.

2
 Executive Summary

As part of my project I was part of Banking channel sales and product team at Tata Asset
Management Company. I was put under mentorship of Mr. Vikas Gupta and Mr. Shailesh
Mehta. The mentors themselves wanted to work on this project and thus they gave me
outline of the project which was as follows.

Firstly a list of Banking clients which are empanelled with Tata AMC was given to me
and I was asked to meet these bank’s third party & product heads. I was asked to make a
questionnaire and accordingly meet the respective bankers to get their inputs for my
research project. The research objective was to get various factual data point from the
banking partners and make reports on them. The interview method adopted was cold
calling and face to face interview.

The data points which I was supposed to get from the banking clients were as follows:
- Number of branches and selling points
- Number of Relationships Managers or strength of sales work force team
- Organization structure of their organization/ department
- Client Categorization
- Number of Amc’s the Bank has empanelment with
- Product Basket
- Asset Allocation Model
- Client Fee Structure
- MF research process

On basis of the above given data points I prepared a questionnaire and accordingly got
the inputs from the banking clients.

Banking Clients/ Distributors Interviewed during the course of my project

3
- HDFC Bank
- ICICI Bank
- Edelweiss Securities
- Aditya Birla Money
- Standard Chatered Bank
- CITI bank
- ABN Amro
- IDBI Bank
- Axis Bank

4
 INDEX

SR.NO PARTICULARS PG.NO

1. Indian Mutual Fund Industry Outlook 6
2. Average Assets Under Management for June 2010 11
3. Tata Mutual Fund – Company Overview 13
4. Product Portfolio 16
5 Research Project Questionaire 18
6 Research Project Findings – ICICI Bank 21
7 Research Project Findings – Edelweiss Securities 27
8 Research Project Findings – CITI Bank 31
9 Research Project Findings – Aditya Birla Money 35
10 Research Project Findings – IDBI Bank 39
11 Research Project Findings – Standard Chartered Bank 42
12 Research Project Findings – HDFC Bank 45
13 Learnings from the Summer Project - Conclusion 47
14 Bibliography 48

Indian Mutual Fund Industry Outlook

5
Current State
India has been amongst the fastest growing markets for mutual funds since 2004,
witnessing a CAGR of 29 percent in the five-year period from 2004 to 2008 as against the
global average of 4 percent. The increase in revenue and profitability, however, has not
been commensurate with the AUM growth in the last five years.

Low share of global assets under management, low penetration levels, limited share of
mutual funds in the household financial savings and the climbing growth rates in the last
few years that are amongst the highest in the world, all point to the future potential of the
Indian mutual fund industry.

AUM Growth
The Indian mutual fund industry has evolved from a single player monopoly in 1964 to a
fast growing, competitive market on the back of a strong regulatory framework.

6
The Assets under Management (AUM) have grown at rapid pace over the past few years,
at a CAGR of 35 percent for the five-year period from 31 March 2005 to 31 March
20091. Over the 10-year period from 1999 to 2009 encompassing varied economic
cycles, the industry grew at 22 percent CAGR2. This growth was Despite two falls in the
AUM – the first being after the Year 2001 due to the dotcom bubble burst, and the
Second in 2008 consequent to the global economic Crisis (the first fall in AUM in March
2003 arising from The UTI split).

Indian MF industry relative to its Global Counter parts

India has been amongst the fastest growing markets for mutual funds since 2004; in the
five-year period From 2004 to 2008 (as of December) the Indian mutual Fund industry
grew at 29 percent CAGR as against the Global average of 4 percent. Over this period,
the Mutual fund industry in mature markets like the US and France grew at 4 percent,
while some of the emerging Markets viz. China and Brazil exceeded the growth
Witnessed in the Indian market. However, despite clocking growth rates that are Amongst
the highest in the world, the Indian mutual Fund industry continues to be a very small
market; Comprising 0.32 percent share of the global AUM of USD 18.97 trillion as of
December 2008

Customer Segment & Key growth Drivers

7
Challenges and Issues
Low customer awareness levels and financial literacy pose the biggest challenge to
channelizing household savings into mutual funds. Further, fund houses have shown
limited focus on increasing retail penetration and building retail AUM. Most AMCs and
distributors have a limited focus beyond the top 20 cities that is manifested in limited
distribution channels and investor servicing. The Indian mutual fund industry has largely
been product-led and not sufficiently customer focused with limited focus being accorded
by players to innovation and new product development. Further there is limited flexibility
in fees and pricing structures.

8
Currently Distributors and the mutual fund houses have exhibited limited interest in
continuously engaging with customers post closure of sale as the commissions and
incentives have been largely in the form of upfront fees from product sales. Limited focus
of the public sector network including public sector banks, India Post etc on distribution
of mutual funds has also impeded the growth of the industry. Further multiple regulatory
frameworks govern different verticals within the financial services sector, such as
differential policies pertaining to the PAN card requirement, mode of payment (cash vs
cheque), funds management by insurance companies and commission structures, among
others.

Future Outlook in a Dynamic Environment

KPMG in India is of the view that the industry AUM is likely to continue to grow in the
range of 15 to 25 percent from the period 2010 to 2015 based on the pace of economic
growth. In the event of a quick economic revival and positive reinforcement of growth
drivers identified, KPMG in India is of the view that the Indian Mutual fund industry may
grow at the rate of 22 to 25 percent in the period from 2010 to 2015, resulting in AUM of
INR 16,000 to 18,000 billion in 2015. In the event of a relatively slower economic revival
resulting in the identified growth drivers not reaching their full potential, KPMG in India
is of the view that the Indian mutual fund industry may grow in the range of 15 to 18
percent in the period from 2010 to 2015, resulting in AUM of INR 15,000 to 17,000
billion in 2015.

Industry profitability may reduce further as revenues shrink and operating costs escalate.
Product innovation is expected to be limited. Market deepening and widening is expected
with the objective of increased retail penetration and participation in mutual funds. The
regulatory and compliance framework for mutual funds is likely to get aligned with the
other frameworks across the financial services sector.

Action Plan for Achieving Transformational Growth

9
There is a need for a collaborative effort across all key stakeholders to harness the future
growth potential and reach out to the customer. Given that customer awareness is the pre-
requisite for the achievement of the industry growth potential, there is a need for
planning, financing and executing initiatives aimed at increasing financial literacy and
enhancing investor education across the country through a sustained collaborative effort
across all stakeholders that is expected to result in a massive increase in mutual fund
penetration. AMCs should focus on product innovation and introduction of flexibility in
pricing public sector thrust into mutual funds distribution and focus on strengthening
presence beyond Tier 2 cities will entail training of the public sector employee base
through the “Train the Trainer” approach, so that they may be inducted as trainers to
support customer awareness campaigns to be facilitated by CII, NISM and AMFI.
Opening up of the public sector branch network in Tier 3 and Tier 4 towns will include
India Post, Nationalised banks, Regional Rural Banks and Cooperative Banks. This ill
also require a boost to be provided to Investor Service Centres (ISCs) through R&T
Agents should be given a thrust.

Focus on increasing customer engagement pre and post completion of the investment will
be beneficial. CII and AMFI should help to steer the industry vision. The recognition of
the Association of Distributors by SEBI would also be beneficial for the long term well
being of the industry. It is proposed that harmonization of policies across multiple
regulatory frameworks in the financial services. Sector must be taken up on high priority
through constitution of a Steering Committee under the aegis of the Ministry of Finance,
comprising the Financial Services Regulators for mutual funds and capital markets,
pension, insurance, banking and other verticals along with representation from the CBDT

Given that the industry needs to collectively work towards riding over the dynamic and
relatively less favorable Economic environment at present, the next phase for the industry
is likely to be characterized by a stronger focus on customer centricity, cost management
and robust governance and regulatory framework – all aimed at enabling the industry to
achieve sustained, profitable growth, going forward.

Average Assets under Management (AAUM) for

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 the month of JUNE-2010

Average AUM For

Sr No Mutual Fund Name The Month
(Fig. in lakhs)
1 AEGON Mutual Fund N/A
2 AIG Global Investment Group Mutual Fund 101465.80
3 Axis Mutual Fund 299918.79
4 Baroda Pioneer Mutual Fund 307519.77
5 Benchmark Mutual Fund 225037.45
6 Bharti AXA Mutual Fund 69274.04
7 Birla Sun Life Mutual Fund 6311155.02
8 Canara Robeco Mutual Fund 853344.16
9 Deutsche Mutual Fund 901687.08
10 DSP BlackRock Mutual Fund 2141574.99
11 Edelweiss Mutual Fund 28276.18
12 Escorts Mutual Fund 19549.63
13 Fidelity Mutual Fund 787887.07
14 Fortis Mutual Fund 516239.14
15 Franklin Templeton Mutual Fund 3456392.05
16 Goldman Sachs Mutual Fund N/A
17 HDFC Mutual Fund 8664809.74
18 HSBC Mutual Fund 535318.99
19 ICICI Prudential Mutual Fund 7379542.94
20 IDBI Mutual Fund 2817.64
21 IDFC Mutual Fund 2096575.54
22 ING Mutual Fund 149546.56
23 JM Financial Mutual Fund 565798.86
24 JPMorgan Mutual Fund 403079.40
25 Kotak Mahindra Mutual Fund 2854087.32
26 L&T Mutual Fund 369341.59
27 LIC Mutual Fund 3004938.17
28 Mirae Asset Mutual Fund 25213.30
29 Morgan Stanley Mutual Fund 225679.68

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30 Motilal Oswal Mutual Fund N/A
31 Peerless Mutual Fund 92125.86
32 Pramerica Mutual Fund N/A
33 PRINCIPAL Mutual Fund 682797.00
34 Quantum Mutual Fund 10103.50
35 Reliance Mutual Fund 10132015.43
36 Religare Mutual Fund 1091847.47
37 Sahara Mutual Fund 74161.96
38 SBI Mutual Fund 3373338.68
39 Shinsei Mutual Fund 27308.41
40 Sundaram BNP Paribas Mutual Fund 1271748.61
41 Tata Mutual Fund 1846409.72
42 Taurus Mutual Fund 243865.13
43 UTI Mutual Fund 6444564.61
Grand Total 67586357.28

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 Tata Mutual Fund – Company Overview

A Proud Pedigree – part of Tata Group family

Tata Asset Management Ltd is a part of the Tata group, one of India's largest and most
respected industrial groups, renowned for its adherence to business ethics.

The Group has always believed in returning wealth to the society that it serves. Thus,
nearly two-thirds of the equity of Tata Sons, the Group's promoter company, is held by
philanthropic trusts, which have created a host of national institutions in the natural
sciences, medical care, energy and the arts. The trusts also give substantial annual grants
and endowments to deserving individuals and institutions in the areas of education,
healthcare and social uplift.

By combining ethical values with business acumen, globalisation with national interests
and core businesses with emerging ones, the Tata Group aims to be the largest and most
respected global brand from India. This way, it fulfils its long-standing commitment to
improving the quality of life of its stakeholders

Company Description
Backed by one of the most trusted and valued brands in India, Tata Mutual Fund has
earned the trust of lakhs of investors with its consistent performance and world-class
service. Tata Mutual Fund manages around INR. 18,464 crores (average AUM for the
month) as on June 30, 2010 worth of assets across its varied offerings. Tata Mutual Fund
offers an investment option for everyone, whether you are a businessman or salaried
professional, a retired person or housewife, an aggressive investor or a conservative
capital builder.

The Tata Asset Management philosophy is centered on seeking consistent, long-term

results. Tata Asset Management aims at overall excellence, within the framework of
transparent and rigorous risk controls.
Benchmarking their efforts against these tenets of performance:

13
Consistency: We strive to deliver consistent results through our value-based investing
methodology, keeping alive the credo of the late doyen of the Tata Group, Mr. J.R.D.
Tata, that money received from the people should go back to them several times over.
Flexibility: Tata Mutual Fund offers investors a broad range of managed investment
products in various asset classes and risk parameters, with operational flexibility to suit
their varied investment needs.
Stability: Our commitment to the highest quality of service and integrity is the
foundation upon which we build trust with our clients.
Service: We offer a wide range of services to assist investors have a fulfilling and
rewarding financial planning experience with us. We have designed our services keeping
in mind the needs of our investors, giving them a smooth and hassle-free financial
planning process.

Core Values of the Company

The Tata Group has always sought to be a value-driven organisation. These values
continue to direct the Group's growth and businesses. The five core Tata values that
underpin the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our
day-to-day work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our
customers and partners around the world, building strong relationships based on
tolerance, understanding and mutual cooperation.

14
Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what comes from
the people goes back to the people many times over.

15
 Product Portfolio

At Tata Asset Management Company, the belief is that your investment needs depend on
personal and financial goals. Identifying your financial goals is the key to achieving the
big things in your life, be it your child's education or a carefree and comfortable retired
life.

After identifying and defining the financial goals, you now need to plan for each of them
in an organised and a professional way. Investment experts around the world advise
instruments like equity funds and stocks for long-term (more than 5 years), income funds
for medium-term and liquid funds for short-term needs.

The investment matrix here depicts the entire available variety of investment options.
Those at the top provide for a greater opportunity for long-term capital growth while
those at the bottom take care of current income and reasonable return & liquidity. Tata
Mutual Fund offers a wide range of funds for different investment instruments designed
to cater to your individual profile and life-stage.

List of Popular Tata Mutual Fund Products

• Tata Balanced Fund

• Tata Contra Fund
• Tata Dividend Yield Fund
• Tata Dynamic Bond Fund
• Tata Equity Opportunities Fund

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• Tata Equity P/E Fund
• Tata Floating Rate Fund
• Tata Floater Fund
• Tata Gilt Securities Fund
• Tata Growth Fund
• Tata Growing Economies Infrastructure Fund
• Tata Income Fund
• Tata Income Plus Fund
• Tata Index Fund
• Tata Infrastructure Fund
• Tata Life Sciences & Technology Fund
• Tata Liquid Fund
• Tata Liquidity Management Fund
• Tata Mid Cap Fund
• Tata Monthly Income Fund
• Tata Pure Equity Fund
• Tata Select Equity Fund
• Tata Short Term Bond Fund
• Tata Service Industries Fund
• Tata Tax Saving Fund
• Tata MIP Plus Fund
• Tata Young Citizens' Fund

17
 Tata Mutual Fund – Research Project
Questionnaire

My Project as described earlier was a research based project, wherein I was given the data
point around which my project had to revolve. The below questionnaire was made with
the objective to collect as much information from the empanelled banks or distributors
and compare the different business models adopted by them.

Project Questionnaire
Name of the Company:
Person Interviewed:
Designation:
Location:

1. Kindly provide with number of branches and selling points that you have?

2. If you could provide with organization structure and also if you have business
vertical wise structure? (Kindly provide names and designation as well)

3. How do you categorize your clients? And how do you service them, i.e. sales
team structure?

4. Details of Product offerings on Mutual Fund side?

5. With which all Asset Management Companies do you have empanelment?

6. Which asset classes do you promote to your clients and if you could provide with
asset allocation proportion for different risk appetite?
Asset allocation Proportion:

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a) High Risk Appetite
b) Medium Risk Appetite
c) Low risk Appetite

7. Within Mutual Fund products which segment is preferred Equity or Debt?

8. Detail of client Fee structure?

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ICICI BANK

20
 Research Findings for ICICI Bank

Name of the Bank: ICICI Bank

Place: BKC Tower
Person Interviewed: Harish Nair
Date: 7th May 2010

1. Number of Branches and Selling Points:

Total Branches: 2000

Branches Selling MF: 1600
The 400 branches do not sell Mutual Funds because they have been recently started, and
would eventually sell MF.

2. Organization Structure & Client Categorization

ICICI bank is a huge bank with almost 22,000 employees and has a very complicated
organization structure. I managed to get a recent rough structure which is as follows:

Client Categorization
Clients at ICICI Bank are categorized as Retail, Wealth and Global Private Clients
(GPC).
a) Retail Clients (Upto INR 50 Lakhs)
Retail Clients are further divided into 2 parts Mass and Affluent.
- Mass client would be any client who contributes business upto 10 lakh Rs.
- Affluent Client would be any client doing business between 10 - 50 Lakhs. This format
is also called as Privilege Banking
b) Wealth Clients (INR 50 Lakhs – INR 2 Cr)
c) Global Private Clients (> INR 2 Cr)

21
Organization Structure

Retail & Wealth Business

Rajeev Sabawal
(Executive Director)

Retail Business Heads

(General Managers)
(The demographic area
divided into 4 zones
having 4 GMs for the
respective zones)

State / Zonal Heads

(In all they identify 16
states, with Mumbai and
Delhi also identified as
individual state)

Regional Head Regional Head

(Retail) Regional Head Regional Head Regional Head
(Savings & Current
(Wealth) (Tasc) (Loans)
A/cs)

Cluster Branch
Wealth RSM
Managers

Branch Manager Wealth RM

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Global Private Client Structure

Sachin Khandelwal
(SGM)

Domestic Business International Business

North Zonal Head West Zonal Head South & East Zonal Head

City Head City Head

City Head

GPC RMs GPC RMs

GPC RMs

Product Structure

Maninder Juneja
(SGM)
Marketing, Product &
Strategy Head

Product &
Strategy Head
marketing Head

Fee Product Head

(Includes MFs, Insurance, Marketing Product
Gold, Small savings, Asset Product Liability Product
Head
Bonds, HFC FD’s, Forex)

3. List of Empanelled AMCs

23
 - Birla Sunlife MF
- DSP Black Rock
- Franklin Templeton Investments
- HDFC MF
- Kotak MF
- ICICI Pru
- IDFC MF
- Reliance MF
- SBI
- Sundaram BNP Paribas
- Tata MF
- UTI

4. Product Offerings on Mutual Fund Side

The Bank distributes Mutual Fund products of only those AMCs who disclose NAV’s on
daily basis, make 100% Disclosure of portfolio, have AUM of INR 20bn. Individual
Scheme specific cut-off is different for different schemes.
They offer all the products ranging from income funds, Gilt Funds, Short Term Plans,
Liquid Funds and diversified equity products. Thus all the products offered by their
empanelled AMCs is distributed by the bank. However the bank has in-house research
process for mutual fund schemes, whereby they do a peer comparison of all the schemes
in same category and provide ratings for the same. The Relationship managers are asked
to promote only those products which have a minimum rating of 3 and above.

5. Asset Allocation Proportion for different risk appetites

As mentioned above the bank has an in-house MF research team, which gives ratings to
the schemes depending on various performance parameters. It also makes a model
portfolio every month for its clients with different risk appetites. The model portfolio is a
set of five suggested asset allocations designed to help in planning one’s financial needs
for five distinct risk profiles viz.,

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 - Risk Averse
- Conservative
- Balanced
- Growth
- Aggressive
Model Portfolio – Asset Allocation
Scheme Risk Averse Conservative Balanced Growth Aggressive
(%) (%) (%) (%) (%)
Equity Plans
DSPBR Top 100 - - 10 10 15
HDFC Top 200 - 15 10 10 15
Birla Frontline Equity Fund - - - 10 15
Reliance Growth - - - 10 15
Franklin India Prime - - - 10 10
Total - 15 20 50 70
Satellite Fund
ICICI Pru Infra Fund - - 10 10 20
Total - - 10 10 20
Short Term Plans
Reliance Short Term Fund - 10 20 20 10
Total - 10 20 20 10
Liquid Plus
ICICI Pru Flexible Income Plan 20 15 10 - -
Total 20 15 10 - -
Fixed Deposit
ICICI FD 80 60 40 20 -
Total 80 60 40 20 -
Grand Total 100 100 100 100 100

6. Client Fee Structure

For Equity Schemes
Investment for 1Cr and above - .25%
Investment 50K to 1Cr - .50%
Investment upto 50K – 200 Rs. Flat

For liquid Schemes - No Fee

25
 EDELWEISS
SECURITIES

Research Findings for Edelweiss Securities

Name of the Bank: Edelweiss Securities

Place: Godrej Coleseum

26
Person Interviewed: Mayank Agarwal
Date: 17th May 2010

1. Number of Branches and Selling Points:

Total Branches: 45
Branches Selling MF: 200 approx
Edelweiss has approx 45 branches of its own, rest of selling points are its through its
empaneled brokers and sub-brokers

2. Organization Structure & Client Categorization

Edelweiss Has a fairly simple structure. Edelweiss Group has 3 verticles mainly,
Edelweiss Capital, Edelweiss Securities and retail

Client Categorization & Business Model

Edelweiss mainly categorises clients into HNI, Corporate and retail segment.
- Edelweiss Securities as such focuses on HNI clients
- Edelweiss Broking arm is solely online based model, wherein MFs are sold
directly to clients
- Edelweiss Sub-broking arm sells MFs through indirect route by empanneling with
other brokers and sub-brokers.

Client Categorisation would be as follows:

- HNIs – 5Cr and above
- UHNIs- 25Cr. And above
- Retail anyone with small ticket size.

Organization Structure

27
 Rashesh Shah
Chairman

Kedar Deshpande
Nitin Jain
VP
Nirmal Rewaria VP
VP
Broking Arm
Head of Wealth advisory and
Sub-Broking arm for Retail Investor services (mainly for
HNI Clients)

Amit Dalvi
Anshu Kapoor
Has a team of 10 People

Sales
Servicing
(6 RMs in Mumbai and 10 Product
(Team of 7 people)
RMs across in India) (Team of 2 People)

3. List of Empanelled AMCs

- All AMCs currently operating in India

4. Product Offerings on Mutual Fund Side

They distribute Mutual Fund products of all the AMCs. However they have an internal
MF research team which does research on regular basis and recommend funds to clients
based on their research findings.
They also have internal categorization of products into following categories:

28
 - Large Cap Funds
- Mid & Small cap Funds
- Thematic Funds
- Value Funds (contra investing)
- Tax Planning
- Opportunity

5. Asset Allocation Proportion for different risk appetites

The asset allocation model is a customized model which is provided by Wealth advisory
team on chargeable basis. However they recommend general model for clients with
different risk appetites depending on market conditions. Current recommendation they
give to clients is 40% Equity and 60% Debt.
A) High Risk
- Equity – 75
- Debt – 25
B) Medium Risk
- Equity – 50
- Debt -50
C) Low Risk
- Equity – 20
- Debt – 80

6. Client Fee Structure

1% on advisory
Structure Products – 1 – 3%
Mutual Funds – 50 Bps – 200 Bps (based on client relation, volume)

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 CITI BANK

Research Findings on CITI Bank

Name of the Bank: CITI Bank

Place: BKC
Person Interviewed: Rajat Nivatia

30
 1) Number of branches and Selling Points

The Bank has 2 business models, one is Branch banking other is the Suvidha Channel
– Online Channel for salaried accounts clients.

They have in all 41 bracnhes in operation selling MFs

2) Client Categorisation and Organisation Structure

As mentioned above the bank has 2 business models operating – Suvedha and Branch
Banking
1) Suvedha – Clients include Corporate Salaried employees
2) Branch Banking – Clients are categorised into 3 segments depending on the AUM
a. Blue Customer – 5 to 30 lakhs business
b. Citi Gold – 30 Lakhs to 3 Crs business
c. Citi Select – 3 Crs and above.

Organisation Structure for Branch Banking Model

For Availing Branch banking business of CITI bank, the client must have minimum
balance of 5 lakhs and above.

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The

Branch banking head

Mr, Sameer Kaul

Mr. Pratik Bhobhe

Mrs. Amrita Farman Mr. Arjun William
(Central & West Zone)
(North & East zone) (South Zone)

Mr. Anirudh Tapadia Deepika Dholakia Saurabh Jain

(Cluster Head Delhi) (Bombay 2) (Bengal, Hydrabad)

Mr. Ashwin Chadda Rahul Srivastav Anirudh Mahesh

(Cluster Head Delhi 2) (central) Chennai, Ponditurry)

Amrinder Barar Mayur Bhatt

(Chandigarh, ludhiana, Jaipur) (Small Maharashtra)

Sumeet Madan Viren Somanshe

(East) (Bombay 1)

Branch banking group has a total of 400 RMs, currently doing business of 400 Crs worth
of equity and 250 Crs. worth of Debt.

Organisation Structure for Suvedha Channel (Online model)

The Suvedha Channel is solely for Corporate Salaried Customers. Their focus is in more
on selling Insurance than selling MFs. They currently do business of 10 Crs.

32
 Arjun Chaudhari
(Head)

Abhishek Arun Sudha Jamal Ahmed Hussain

3) Asset management Companies empanelled and Product Offerings

Citi Bank has empanelled with total of 19 AMCs. Schemes are recommended on basis of
internal research carried out. They publish 2 investor magazines giving out scheme
recommendations as well as giving market outlook.

1) CITI Choice – Gives Fund Managers Commentary, Forward looking projections,

Very subjective kind of research.
2) ABC Analysis – Objective research or quant based research carried out.
weightage is given to Returns, Industry concentration, Liquidity, Peer Set. Etc.

4) Asset Allocation Proportion

Bank classifies its clients with different risk appetites on scale of 1 to 6. A questionnaire
is given to the client and according to his responses his risk appetite is found.

Asset P1 P2 P3 P4 P5 P6
Class
Equity - - 20 50 70 90
Debt - 100 80 50 30 10
Liquid 100 - - - - -

5) Client Fee Structure

33
For Clients belonging to Suvedha channel, Blue Customers, CITI Gold – 5% on MIP,
2% on equity
For CITI Select - .25 to 1 % on AUM

34
 ADITYA
BIRLA
MONEY

Research Findings on Aditya Birla Money Mart

Name of the Bank: Adiya Birla Money mart

Place: Indiabulls One
Person Interviewed: Rahul

1) Number of branches and Selling Points

Aditya Birla Money has 2 divisions running at its end.

1) Aditya Birla money – Broking Arm

35
 2) Aditya Birla Money Mart - Third Party Products Distribution.

The money mart division has 47 branches selling MFs with more than 500 RMs. Products
basket includes MF, Insurance, Gold, Structure Products, Private Equity, PMS, FDs,
IPOs.

2) Client Categorisation and Organisation Structure

Clients are categorised on basis of their average Ticket size investment as follows:
1) Retail
• Direct
• Sub-Broker channel – Empanelment with 7000 expected till end of year,
currently 3500 selling MFs.

Average Ticket Size of retail clients is 40K to 50K of monthly surplus. The firm has
strength of 150 – 200 staff for administering needs of retail clients. The RMs start the
acquisition of client by making ccold calling and othe outdoor activities.

2) Wealth – The average business of this client is 25 lakhs plus. The client is
provided personalised advisory. They have 150 RMs to provide services to wealth
clients.

3) Institutional – Includes mainly corporate clients, Avg. ticket size is 50 Crs and
above. 10 Rms dedicated to service these clients.
Organisation Structure

36
 CEO
Mr. Kanwar Vivek

Wealth Sales Head Retail Sales Head

Girish Venkath Manoj Chauhan

Girish Venkat (Wealth Sales head) has 4 zonal heads working under him, who thereby
have 8 regional heads. Each Regional Head has 3 RSMs working under him.

Manoj Chauhan (Retail sales head) again has 4 Zonal heads, who further have 17
regional heads reporting them. Each Regional manger has 2 RSMs under him.

3) Asset management Companies empanelled and Product Offerings

They have tie-ups with all AMCs. Preference is given to selling all equity, MIPs, and
income funds as they give high commissions.

Internal Research takes place and parameters like AUM, return, Performance for 3 years,
Sharpe ratio, Treynors ratio, support from AMCs, are taken into consideration.

4) Asset Allocation Proportion

The client is given a questionnaire containing 10 – 12 questions. This helps the company
to identify what kind of risk appetite the client has and accordingly suggest model
portfolio. Current Model Portfolio is as follows:

Risk Appetite Equity Debt + Liquid

Aggressive 70 30
Moderately Aggressive 60 40
Moderate 40 60
Moderately Low Risk 15 85

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Low Risk 0 100

Accordingly 5 to 6 schemes are suggested.

5) Client Fee Structure

1% of fee is charged on discretion of client or else services are provided free of cost.

Fee from AMCs empanelled

0.75 to 1.25 percent commission on initial investment.

.50 to .90 percent on trail commission.

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 IDBI BANK

Research Findings on IDBI Bank

Name of the Bank: IDBI Bank

Place: WTC tower

39
Person Interviewed: Abhishek Singh

1) Number of branches and Selling Points

IDBI bank has a total of 700 branches, but currently sells MFs and other wealth products
from only 550 branches. It has appointed a total of 7000 RMs to sell wealth products

2) Client Categorisation and Organisation Structure

Bank has a very simple client categorisation policy,
Client with Avg. Qtrly Balance of 1 lakhs and above – Preferred Customer
Client with Avg. Qtrly Balance below 1 lakhs - Mass Client

Personal Banking Group Head

Mr. CS Jain

Third Party Distribution

Mr. Debashash Mallick
SME Large Corporate Group (CGM)

Insurance & Mutual Funds

Mr. Kaushik Bagchi
(DGM)

Mutual Fund
Insurance
Mrs. Nalini Dalvi
Product Manager
Product Manager

Mr. Abhishek Singh

Asst. Product Manager Asst. Product Manager

The Bank has pan India presence and it has divided its market in 10 regions for effective
selling of MFs and insurance. The Asst. Product manager has 10 TPG managers handling
one region each. Again each region is further divided into 3 – 4 clusters having one
cluster head for each.

40
 3) Asset management Companies empanelled and Product Offerings

IDBI Bank has empanelled with all the AMCs. However the bank focuses on selling
Equity Products as its client base mainly includes retail segment. It sells MF schemes
only after dedicated research gone behind performance of the scheme. The research work
is however outsourced. The research process includes tracking performance consistency
over 4 years, tracking trailing returns since inception period, percentage of AUM in top 5
holdings and credit rating break-up.

The 2 research brochures published are as follows:

1) Fund Reckoner on Qtrly Basis
2) Investor Guide on Monthly basis.

4) Asset Allocation Proportion

Risk Appetite Equity Debt + Liquid

Aggressive 70 30
Moderate 40 60
Low Risk 0 100

5) Client Fee Structure

The bank does not charge any fee to its clients for selling of MFs.

41
STANDARD
CHARTERD
BANK

Research Findings on Standard Chartered Bank

Name of the Bank: Standard Charterd Bank

Place: Jogeshwari – Stancy Tower

42
Person Interviewed: Anand Radhakrishnan

1) Number of branches and Selling Points

The bank has overall 93 branches with 400 RMs approx. selling wealth products.

2) Client Categorisation and Organisation Structure

Client categorisation is done on basis of business the bank does with the bank.

Private Banking – 1 Mn. and above

Priority Banking – Below 1 Mn.
Excell Banking – 5 lakhs and above
General Mass clients – below 5 lakhs

Organisation Structure

Sachin Bambani is the product head, having 7 product managers under him and 4
Regional Heads who have a team of investment advisors under them.

Sachin Bambani
Product Head

Anurag Seth Ashima Chatterji Probal Ghosh Siddarth Basu

(R.H West) (R.H. North) (R.H. South) (R.H. East)

3) Asset management Companies empanelled and Product Offerings

43
They have tie-ups with 20 AMCs. RMs are asked to sell only those schemes which are
suggested by the MF research team. The research is done using quantitative technique
known as Markowitz Risk – return on portfolio.

4) Asset Allocation Proportion- Not Disclosed

5) Client Fee Structure

Upto 10 Lakhs AUM – 2.25 %

Above 10 Lakhs – 2%.

44
 HDFC
BANK

Research Findings on HDFC Bank

Name of the Bank: HDFC Bank

Place: HDFC Tower
Person Interviewed: Aditya Deshpande

1) Number of branches and Selling Points

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HDFC bank after getting merged with CBOP Bank has in all 1,735 Branches and MFs are
sold through all the branches. They have 168 advisors.

2) Client Categorisation and Organisation Structure

HDFC bank categorises clients into Retail as well Private banking Clients. Retail Clients
are sold only conventional banking products and Private Banking Clients are sold
conventional as well wealth products like MFs, PMS, Structure Products, Direct Stock,
Corporate Bonds, Tax Saving Bonds, Insurance.

Retail Clients have 3000 dedicated RMs. Private banking Clients have 160-170 RMs and
NRI Clients have 120 RMs.

Private Banking clients are again segregated into 2 categorises – Managed &
Unmanaged. Managed clients are further segregated as follows.
- Classic (2 Lakhs – 5 L)
- Preferred ( 5 lakhs – 10 Lakhs)
- Imperia (10 Lakhs above)

Theoretical Organisation Structure

Retail
Branch banking Head – Regional Branch Head – Zonal Head – Circle Head – Cluster
Head – Branch Manager – DRM – PB

Private Banking Group

Manager Director – Group Head – Functional Head – Senior Regional Head – Regional
Head – Senior Advisor – Advisor

NRI Clients
Business Head – National Sales Manager – Team Leader – RM

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 3) Asset management Companies empanelled and Product Offerings

HDFC bank has empanelled with all the AMCs currently operating in India. They
distribute all the products offered by their empanelled AMCs. However they have
dedicated MF research team which gives ratings to MF products based on performance
and accordingly RMs are compelled to sell products with above average ratings.

4) Asset Allocation Proportion

Currently HDFC bank has the following asset allocation scheme for its clients with
different risk appetites
Aggressive (%) Moderate (%) Conservative (%)
Direct Equity 60 45 30
/Equity Funds
Debt Funds 25 45 60
Alternative 10 5 5
Gold 5 5 5

5) Client Fee Structure

200 Rs. Flat for retail clients for any products.

Private banking clients fe structure – N.A.

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 Conclusion

It was indeed an insightful experience getting a corporate exposure in sector of my

preference. Though when the project was given to me, it sounded more like a marketing
profile, but however once I actually started working, it made me realise it was one area of
finance which we as finance students don’t want to enter into i.e. Sales & Marketing, but
however I realised it gives the real understanding of the business. The project had
elements of finance, marketing, as well business development.

The project gave me an opportunity to meet so many industry people, thereby I got to
interact with them and understand their business models. Information shared by these
industry people gave me real understanding of the financial world out there. I would
conclude by saying though, I worked for Tata Mutual Fund, but interaction with multiple
industry professionals, gave me a feeling that I worked for basket of companies out there.
All and all a great experience that would add value to my profile.

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 Bibliography
Websites

www.tatamutualfund.com

www.amfiindia.com

Journals

KPMG report on Asset Management Industry in India

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