an analytical study on various
DESCRIPTION
TRANSCRIPT
An Analytical study on various investment alternatives at
Axis Bank
Submitted to:Mr. Dilpreet Singh
Submitted by:Ankita Upveja
About the Bank•Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. And United India Insurance Company Ltd• It is the third largest private sector bank in India.• It offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporate, SME, Agriculture and Retail Businesses.•The Bank has a large footprint i. 1947 domestic branches (including extension counters) ii. 11245ATMs iii. 7 overseas branches / offices in Singapore, Hong Kong, Shanghai, Colombo,
Dubai, DIFC - Dubai and Abu Dhabi.
Products and services•Savings Account•Current Account•Salary Power•Priority Banking•Fixed Deposits•Recurring Deposits•Lockers •Debit Card•Telebanking•I-connect Internet banking•Instant fund transfer•At Par Cheque book•Cash/Cheque Pick-up Service•Power Loans (Home, Personal, Educational, Vehicle)•Wealth Management
Strengths
1. Aggressive marketing policies.
2. Large customer base.
3.Strong network and well managed
Distribution channel.
Weaknesses
1. Lack of efficient manpower.
2. Poor after sales services.
Opportunities
1. Untapped huge market.
2. Large income group of high
salaried class.
Threats
1. Entrance of new players in
Banking Sector.
2. Require huge reserves of cash
as for liquidity.
SWOT Analysis
Objective of the Study
The Main objectives behind this study can be summarized in the following points:
•To have an overview of different investment alternatives as mutual funds, life insurance, and Fixed Deposit and other investment options.
•To know the customer perception regarding various investment options.
•To know about the investment pattern of the customers of the Bank.
• To know about the reasons for which customers are investing their money.
•To know about the various pros and cons of different investment options.
Scope of Study
The scope of the study is limited to the Sri Ganganagar city as internship is done in the AXIS Bank, Sri Ganganagar to know about the investment habit, only the existing customers of the bank had taken into consideration
Statement Of The Problem:
AXIS Bank is leading private sector Bank having a sound customer base. The project was done at the Sri Ganganagar branch of the Axis bank. This branch has its tie up with the Max New York Life Insurance Company and also deals in the Mutual funds of Axis and of different companies so in order to increase the business of the bank it has to find out the prospective customers who are willing to invest their money. The research was basically conducted to know about such prospective customers of the Bank, which will lead to increase in the business of the Bank. As with the changing scenario there are lots of investment options available in front of the customers but the bank has to find out which the most preferred investment options among the customer are and what is the probable reason for which they like that investment not the others.
Advantages of Mutual Fund
• Professional management• Diversification• Flexibility• Affordability• Well Regulated
Advantages of Life Insurance
• Saving for future• Loan• Accident benefit• Income tax rebate
Advantages of Fixed deposit
• Safety• Additional Benefits
Methodology UsedThe survey was conducted on the basis of Questionnaire method, which was designed to meet the need of the management. It included open ended and close-ended questions Research Design: It is pure model for the conduct of survey. It is a specification of procedures for collecting and analyzing the information required for the solution of some specific problems. Research can be classified on the basis of fundamentals objectives of research. Among the three types of researches available descriptive research has been used here.Data Collection Method: Both Primary and secondary sources of data were used as Data collection instruments. Primary source- Existing customers of the bank Secondary source- Books, journals & internetSampling Technique:•Universe: People in the age group of 20-80 years.•Sampling Unit: Existing customers of the bank.•Sample Size: 150 customers•Sample Design: Random Sampling
20-30 30-40 40-50 50 and above0
10
20
30
40
50
6051 48
32
19
Age group of customers
age
no. o
f cus
tom
ers
Demographic Profile of the CustomersAXIS Bank has the customer base of more than 10000 customers .The sample of 150 customers has been taken on the basis of simple random sampling with no discrimination of current or savings account or any other biases like age, sex, income level etc. but an effort was made the to cover all age groups and all income levels. Following Charts are used to present the demographic profile of the customers.
0-1.5 lac 1.5-3 lac 3-4.5 4.5 & above0
10
20
30
40
50
60
70
53
63
24
10
Income Level Of Customers
Income
no. o
f cus
tom
ers
Salaried Self-Employed Student Retired Other0
1020304050607080
70 66
29
3
occupation of customers
Occupation
no. o
f per
sons
1. How much of your gross income goes for investment purpose?
A) 0-10% B) 10%-20% C) 20%-30% D) 30% and above
0-10% 10_20% 20-30% 30% & above0
10
20
30
40
50
60
48
57
33
12
Invested income
Income
no.o
f per
sons
2. Where do you invest your money often? (Can select multiple options)
A) Life insurance B) Mutual Funds C) fixed deposit D) *any other_______________
Insurance
Mutual Funds
Fixed Deposit
Others
0 20 40 60 80 100 120 140
130
94
54
33
No. of Persons
Sour
ces O
f Inv
estm
ent
3. INSURANCE (If Investment in Insurance, otherwise leave this question)
A. why do you invest in the insurance?
A) Tax saving B) Life Cover C) Returns D) any other___________________
Tax Saving Life Cover Returns Others0
10
20
30
40
50
60
70
62
42
18
8
Reasons For Investing In Insurance
Reasons
no. o
f per
sons
B. On what basis you choose your Insurance Company?
A) Services B) Word of mouth C) Past Records D) Brand Image E) Advertisement
32
12
58
24
4
Sales
ServiceWord of mouthPast recordsBrand imageAdvertisment
4. MUTUAL FUNDS (If Investment in Mutual Funds, otherwise leave this question)
A. Why do you invest your money in Mutual Funds?
A) High Returns B) Savings C) Security D) Any Other
High Returns Savings Security Others0
5
10
15
20
25
30
35
40
45 42
25
21
6
Reasons For Investing In Mutual Funds
Preferred Reasons
No.
of
per
son
s
B. On what basis you select company for investment in mutual fund?
A) Company Image B) NAV C) Past Records D) Agent’s recommendation
Company Image NAV Past Records Recommended by Agent0
10
20
30
40
50
60
14
48
25
7
Reason
No.
of
per
son
s
C. In which type of Mutual funds you invest your money?
A) Growth Funds B) Secure Funds C) Balance Funds
Growth Funds Secure Funds Balance funds0
10
20
30
40
50
6054
2218
Types Of Mutual Funds
Fund Type
No.
of
per
son
s
D. Where do you go for investment through Mutual Funds?
A) NFOs (New Fund Offers) B) Secondary Market
NFO's Second mkt.0
10
20
30
40
50
60
70
32
62
Area Of Investment
Area's
No.
of
per
son
s
E. Among these two funds which one you will prefer for investment purpose?
A) Open ended funds B) Close ended funds
Open Ended Close Ended0
10
20
30
40
50
60
70
60
34
Type
Of F
und
Persons Investing
3
8
18
5
Period for investment
1 year 2year
3year above 3
F. If u invest in Close ended then for how much time?
A) 1 year B) 2 Year C) 3 Year D) More than three Year
5. FIXED DEPOSIT
A. Why do you invest in Fixed Deposit?
A) Secure Returns B) Liquidity C) Tax Savings D) Other Reason__________
Secure Returns Liquidity Tax Saving Others0
5
10
15
20
25
30
35
4035
97
3
Reasons For Investing In FD
Reason
no. o
f per
sons
6. Are you aware that AXIS bank provides Financial Advisory services?
A) Yes B) No
Yes No0
20
40
60
80
100
120
140
118
32
Awareness
7. which one is the best investment option at Axis bank according to you?
A) Insurance B) Fixed deposits C) Mutual funds D) Others*__________
Insurance fixed deposit mutual funds others0
10
20
30
40
50
60
70
80
67
42
21 20
fund
no. o
f peo
ple
Findings1)Bank customers are conscious regarding the investments and
earning good returns from it.2)Bank customers prefers insurance as the best option for investing
their money as on one side they get tax benefit from it and on other side they are rewarded with the security and as in some plans of insurance they can get the investment option also.
3) The customers invest their funds after looking at the past records and performance of the particular company instead of going with the word of mouth
4) Irrespective of the income and the occupation customers are aware of different sources of the investments and the benefits that they can avail from those sources. They are also fully aware about their Bank and various services and the benefits provided by it.
5) As the bank has the tie up with the Max Life Insurance so the prospective customers should be contacted to increase the insurance policy buyers.
6) In the sample some customers also represent that class which wants to have the service of Relationship Manager who can guide them regarding their investments.
7)Such aware customers can help the Bank in increasing its business as the customer are educated, aware and having a sound income so with the help of its relationship manager Bank can tap such customers.
8) As Sri Ganganagar branch of AXIS Bank has its tie up with Max Life Insurance and Various Mutual Fund companies so such efficient and eligible customers who are willing to invest their money can help the Bank in increasing its income.
Suggestions
• Customers Walk – in in bank for financial services• Generating leads from the existing satisfied customers• Calling regular customers for after sale services• Arranging canopies at customer places
