SYMBIOSIS SCHOOL OF BANKING &

FINANCE
Constituent of Symbiosis International University
Re -Accredited by NAAC with A Grade
Established under Section 3 of the UGC Act, 1956, vide notification No: F.9.12/2001-U-3of the Government of
India.

FINANCIAL PLANNING FOR HNI/BURGUDY

CLIENT

Internship Report Submitted to SIU in Partial Completion of the Requirement of MBA

Banking and Finance at Symbiosis School of Banking & Finance
Pune - 412115.

Nirav Mistry Mr. Ardhendu Shekhar Singh Mr.Hardik Patel

PRN: 16020942034 ASSISTANT PROFESSOR PRIORITYBANKING RM
SSBF AXIS BANK

APRIL 3rd 2017 TO MAY 26th 2017

i
CERTIFICATE OF COMPLETION

ii
 ACKNOWLEDGEMENT
Acknowledging the debt is not easy for us as we are indebted to so many people.

With all due respect I would like to thank to Miss Aparna Agarwal, Human Resource, Axis
Bank Ltd. for providing me with this wonderful opportunity for internship at Axis Bank,
Surat (GHOD-DOD ROAD) Branch.

I am sincerely thankful to my mentor Mr. Hardik Patel, Priority Banking Relationship

Manager at Axis Bank for his whole hearted guidance and sharing his experience and
knowledge of banking sector with me during my internship.

I wholly confess that the credit of this report is not only my treasure as I have bought together
the teachings, knowledge, tips, notes and suggestions from my mentor. I am highly grateful to
him for enlightening me at every step of the internship period.

I am also indebted to all the staff members at Axis Bank, Surat for their support, guidance
and tips during internship period. Their consistent support and cooperation showed the way
towards the successful completion of project.

I would also like to express my gratitude to my mentor Mr. Shekhar Ardhendu, who helped
me in coordinating my entire project.

Last but not the least I would like to express my gratitude towards Symbiosis School of
Banking & Finance. And whole staff for their continuous support.

THANK YOU,
NIRAV MISTRY

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 TABLE OF CONTENTS

PARTICULARS PAGE NO.

Introduction

Brief profile of student 1

Brief profile of organization 2

Nature of project 3

Brief responsibilities assigned by project mentor 3

Framework of Study

Theoretical framework 4

Financial Planning 5

Retirement planning 7

Investment planning 8

TAX planning 9

Mutual fund 9

Insurance planning 14

Objective of study 16

Significance of the study 16

Scope of study 16

Limitations of study 17

Data Collection 17

Methodology and Analysis

iv
 Methodology 18

About Burgundy 18

About Priority banking 21

Case study 22

Analysis 35

Conclusions 35

Recommendations 36

Bibliography 36

v
 LIST OF TABLE

PARTICULARS PAGE NO.

TABLE 1: Mutual Fund Taxes 13
TABLE 2: Personal details of Mr. PATEL 22
TABLE 3: Family details of Mr. PATEL 22
TABLE 4: Goals of Mr. PATEL 22
TABLE 5: Total Family income of Mr. PATEL 23
TABLE 6: Total Family expenses of Mr. PATEL 23
TABLE 7: Existing investment of Mr. PATEL 23
TABLE 8: Cash flow till retirement of Mr. PATEL 31

LIST OF CHART

PARTICULARS PAGE
NO.
CHART 1: Cash management for Mr. PATEL 25
CHART 2: Current asset allocation of Mr. PATELs investment 27
CHART 3: Recommended asset allocation of Mr. PATELs 27
investment

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INTRODUCTION

Brief of student

I, Nirav Mistry am currently pursuing my MBA (Banking and Finance) from Symbiosis
School of Banking and Finance (SSBF), Pune. I hold the degree of B.Tech in the field of
Information Technology from the Dharmsinh Desai University, Nadiad. I have done
internship in Android application development at Zealousweb Technologies PVT LTD.,
Ahmedabad as a final semester training program of college. I have done my schooling
from Sett R.J.J. High school, valsad. I was born and brought up in Valsad, Gujarat itself.

As an IT engineer my interest in this field of banking comes from the fact that banks will
make a better connected world and with the help of the synchronization of the banking
system with the technology and the right regulations. As a future banker I also want to a
part of this fastest growing and ever dynamic banking sector.

I got the opportunity to enhance my experience into the banking sector and understand
practical banking world by exposure to the study of product for financial planning with
Axis Bank during the course of my summer internship of two monts. I managed to get
on-the-job training from my supervisors and had the privilege to analysis of client
handling (while clients walk into bank) with my mentor which gave an insight into how
the banking sector truly works i.e. what to invest in when the market is going good or
bad, how to pitch your products to the clients in the same way increasing the sales from a
banks perspective. Overall it was a good experience for me as I was fortunate enough to
have the guidance of my superiors.

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Brief of organization

Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India. Axis
Bank has its registered office at Ahmedabad. It offers a varied array of financial products to
various segments ranging from large corporate to agricultural business. Its stakeholders include
prominent national and international entities. Its various Promoters are UTI, LIC and GIC, which
are entities owned and controlled by the Government of India, Corporate bodies, financial
institutions and individual investors.
Axis bank has its main headquarters in Mumbai; the Bank has 3,304 domestic branches, 14,163
ATMs and nine international offices with branches at Singapore, Hong Kong, Dubai (at the
DIFC), Colombo and Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and an
overseas subsidiary at London, UK. Axis Bank also operates EXPPRESS BRANCH at
Bengaluru which is a 24x7 retail banking initiative to deliver super Omni channel digital
experience to the customer. The Bank employees over 50,000 people and had a market
capitalization of 105,833 corers (as on 31 March, 2016). Axis Bank has achieved consistent
growth and with a 5 year CAGR (2011-12 to 2016-17) of 16% in Total Assets, 13% in Total
Deposits, 17% in Total Advances. At present Shikha Sharma is the Managing Director & CEO
of Axis Bank Ltd.

The Bank has the following wholly-owned subsidiaries:

Axis Capital Ltd. (ACL),

Axis Securities Ltd. (ASL),
Axis Private Equity Ltd. (APE),
Axis Trustee Services Ltd. (ATSL),
Axis Asset Management Company Ltd. (AAMC),
Axis Mutual Fund Trustee Ltd. (AMFT),
Axis Finance Ltd (AFL),
Axis Bank UK Ltd. (ABUK),
Axis Securities Europe Ltd. (ASEL)
A.Treds Ltd

Axis Bank focuses on the following business segments:

RETAIL BANKING
CORPORATE CREDIT

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 BUSINESS BANKING
TREASURY
AGRI AND RURAL

Achievement & Awards

Axis Banks wins the 'Best Use of Mobile within a Loyalty Strategy' at the Loyalty
Awards 2017
Axis Bank wins the 'Best Use of Partnership in a Loyalty Program' at the Loyalty Awards
2017
Axis Bank wins the 'Best Rewards Program' for the 3rd consecutive year at the Loyalty
Awards 2017
Axis bank has won Best performing private Bank at Financial Advisor Award 2015-16
Axis Bank has been Ranked as the 'Most Trusted Private Sector Bank' second year in a
row - 'Most Trusted Brand Survey', conducted by Brand Equity, Economic Times
Best Debt & Capital Markets House in India at the Finance Asia Country Awards 2014
Best Domestic Bank in India at the AsiaMoney Awards 2014

Nature of project

The main purpose of the project was to understand and get the information about the Financial
Planning process mainly focusing on the study of the different products available in the market
for investment planning. Focus was mainly on mutual funds and Life insurances.

Brief objectives/ responsibilities assigned by the project mentor

To study about the Priority banking and Burgundy banking.
To study about the different accounts available for the priority clients.
To study different brochures of the varied mutual fund and insurance products offered by
the bank.
To analyse how they handle clients
To sit with the front office staff and learn about the customers daily queries
To know how to follow up with the clients and how to suggest different investment
schemes to them.

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 FRAMEWORK OF STUDY

Theoretical Framework

Long term thinking and planning enhances short term decision making. Make
sure you have a plan of your life in your hand, and that includes the financial plan
and your mission. Manoj Arora (Author)

Axis Bank provides financial assistance to its BURGUNDY/HNI clients to meet their personal &
business needs. Burgundy is a premium banking service that offers a complete bouquet of
banking and wealth management solutions that will help their clients in managing wealth and let
them focus on enjoying the precious moments in life.

It is important know that the person advising you has a sufficient training, knowledge and
experience. In Burgundy, Premium Banking Services Relationship Manager is backed by a team
of investment and insurance advisors, forex managers, senior lending exports, business and trade
finance associates. This ensures that every Relationship Manager is equipped to provide all the
financial assistance that a client may require for their personal or business needs. The Burgundy
Relationship Manager along with his team of investment advisors continuously analyses their
portfolios and advise their clients to when to invest and where to invest. The advisors help
recommend an investment strategy that individually suits the needs for each and every client.

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 FINANCIAL PLANNING

WHAT IS FINANCIAL PLANNING?

Financial planning is the process of setting, planning, achieving and reviewing your
life goals through the proper management of your finances.
Everyone has their own goals, needs and aspirations. For that they want to create their
wealth timely. Financial Planning is an approach to assess the adequacy of income and assets of
a person to meet the financial requirement to fulfillment of their needs and aspirations. These
goals can vary from buying a car or a house to go on a vacation, childrens education, marriage
and retirement planning.
A good financial planning is analyzing the income-expenses, asset-liability, outlining the
goals and setting realistic time horizon to achieve these goal with discipline. Financial planning
has another important facet while investing that is mitigating the risk.

WHY FINANCIAL PLANNING IS NEEDED?

Financial planning is needed to build an adequate wealth over the period of time that can
be helpful for the future need. With the change in the lifestyle and living standard it is important
to have a financial planning according to the needs. Implementing financial plan removes
components of fear and uncertainty from day-to-day life and gives supreme peace of mind.
(http://www.managementstudyguide.com/financial -planning.htm)

ROLE OF FINANCIAL PLANNER

The financial planners main role is to ensure that the client has enough money to achieve
various financial goals. While performing this role, they offer some or all of the following
services:
Making of a financial blue-print for the future of clients
Planning of Insurance and risk management

Loan management and other liabilities

Tax planning

Suggestion on investment in small savings schemes and other debt instruments

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 Suggestion on investment in share market
Suggestion on investment in mutual funds and other investment products
Suggesting a suitable asset allocation based on risk profile of the client
Planning for smooth bequest of wealth to the next generation.
A professional financial planner helps individuals to navigate the challenges. He is an
important member of our society. The role and influence of financial planners is bound
to grow in India.(http://www.managementstudyguide.com/financial -
planning.htm)

Financial Planning includes:

Asset Classes, Product Suitability & Goal Planning.
Insurance Planning
Planning for Retirement
Investment Planning
Tax Planning
Estate Planning

STEPS OF FINANCIAL PLANNING PROCESS

The following is the six-step process that is used in the practice of financial planning.

1. Establish Relationship: Discuss about how we will work together.

2. Gather client detail: Discuss goals and financial information.
3. Analyse and evaluate financial status: determine what needs to be done to achieve goals.
4. Develop the plan: Presenting financial planning recommendations
5. Implement the plan: Explain how the recommendations need to be carried out.

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 ASSET CLASSES & PRODUCT SUITABILITY AND GOAL PLANNING
Asset classes refer to the various assets that are available for investment. These include:
Equity, Fixed Income/Debt, Cash and cash equivalents, Real Estate, Gold and Other Alternative
Assets. Under these asset classes, there are several investment products/avenues.
Each asset class has different risk and return characteristics, and functions in a unique
way in different market environment.
Depending on the risk appetite and investment horizon of an individual, one can choose
to invest in a combination of asset classes to optimize his returns.
Each individuals aspirations and goals are different and so each one has to plan as per
his/her need. Planning goals gives a birds eye view of finances and helps to be better prepared
for a secured future.
Goal Planning is a process that contains following steps:
1. Setting goals and listing it down
2. Categorizing goals into short, medium and long term goals
3. Prioritizing goals by ranking them
4. Estimating the cost of each goal
5. Projecting the future cost by taking into consideration the rate of inflation
6. Calculating how much one needs to invest regularly to achieve his goals
7. Creating a schedule for meeting all goals
Starting early and investing regularly are the keys to achieve various financial goals.

RETIREMENT PLANNING
Retirement is an inevitable stage of life, as one grows older. Therefore, it is essential to create a
plan that will fulfil ones needs right through ripe old age. Planning for retirement is about
ensuring that one has enough income to meet the expenses post retirement. Increasing life
expectancy, no benefits from employers, rising medical expenses and inflation, and increased
standard of living are a few factors that necessitate planning for retirement well.

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 Retirement planning is a process that contains following steps:
1 Identifying clients life stage
2. Estimating the cost of retirement
3. Assessing how client is prepared for it
4. Calculating the gap
5. Building his retirement fund
Some of the typical retirement investment products are: EPF, PPF, Pension products from
insurance companies, NPS, Mutual Funds.
Investment options that could be used post retirement for regular income are: Annuity
from insurance companies, FDs, Post Office Monthly Income Schemes, Senior Citizens Savings
Scheme, Monthly Income Plans etc.

INVESTMENT PLANNING
Investing is the best way to secure future by accumulating wealth in the long term.
Investing helps beat the effects of inflation.
An increase in the general price level for a considerable period of time is called as
inflation.
Inflation decreases the surplus amount in the hands of an individual.
One should invest money in asset classes that will give good returns.
Investment planning largely entails the following steps:
1. Ascertaining risk profile
2. Identifying appropriate asset allocation according to a risk profile
3. Having adequate diversification with asset allocation
4. Staying true to allocation by regularly rebalancing
Patience and discipline are keys to investing. Invest regularly and remain invested for the
long term

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 TAX PLANNING
Tax planning is an arrangement of financial activities in such a way that maximum tax
benefits are availed of, to reduce tax liabilities considerably.
Tax planning is a coherent element of any financial plan. No financial plan is complete
without tax planning.
Tax planning does not mean only saving taxes. It should also help clients to achieve their
goals in the whole process. Simply, tax planning should be done taking into consideration
clients various goals, such as insurance (life and health), childs education, retirement, etc.

MUTUAL FUND
Mutual fund is a trust that pools the money from investor and invests into diversified portfolio. It
is very necessary for the investors to have a common investment objective to invest in such
funds.
There are some common word related to Mutual fund which are as follow:

NAV (Net Asset Value): It refers price per unit of mutual fund which may vary
depending upon the changes in the value of the portfolio.
The general formula of NAV = Market Value of Securities+ Income- Expenses
Number of units
AUM (Asset under Management): It denotes the total market value of all the funds being
managed by a fund house
Entry load: When he/she invests in mutual fund he/she has to pay expense charges which
is called Entry Load. But now according to SEBI regulations, currently it cannot be
charged by any mutual fund
Exit load: When he/she withdraws money, he/she has to pay charge which called Exit
load. But now according to SEBI guidelines differential exit load cannot be charged to
investors depending on the amount of investment. And if any fund charges exit load over

9
 1%, the excess will have to be credited back to the scheme and will not be available to
the AMC.
Open-ended fund: Such funds are available for subscription and repurchase to the
investors on a continuous basis. They carry the advantage of liquidity and can be bought
or sold at the NAVs quoted on a daily basis.
Close-ended fund: Such funds are open for subscription for only a limited period of time.
However the investor has one of the two exit routes available i.e. either listing on the
stock exchange or repurchase facility or at the end of its tenure it is automatically
credited to the investors account
New Fund Offer (NFO): It refers to the offer made by a fund house when a new close
ended fund is launched. The fund raised is invested in different securities to create
income both for the fund house and the investors.
Indexation: It takes into account cost inflation index before paying taxes on capital gains
earned in debt funds.

Mutual Funds are divided into different categories depending on the way they function. It is
categorized as

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 EQUITY DEBT HYBRID

DIVERSIFIED GILT FUND CAPITAL

EQUITY FUND CORPORATE PROTECTED
LARGECAP,MID FUNDS SCHEMS
CAP, SMALL LIQIUD BALANCE FUND
CAP SCHEMES MONTHLY
SECTOR FUNDS SHORT INCOME PLAN
THEMATIC TERM,ULTRA
FUNDS SHORT TERM
ELSS DEBT
INDEX LONG TERM
DEBT
FIXED
MATURITY
PLANS

Equity funds:
These are the funds where the total amount of the funds are invested in equity shares and equity
related instruments. In Diversified equity, funds are invested in diverse mix of security. In large
cap fund , fun are invested in stocks of large , blue-chip companies with stable performance and
return .Mid-cap funds invest in mid-cap companies which has potential of faster growth and
higher return. Small-cap funds invest in small-cap companies. Sector fund invest only in
particular sector for example, Automobile sector fund will invest only in shares of automobile
companies. Equity Linked Savings Scheme (ELSS) are special equity funds which are eligible
for tax deduction under Section 80C of the Income Tax Act. However this investment has a three
year lock in period and cannot be redeemed or transferred in that period. Indexed funds usually
replicate a benchmark index. Thus such funds help us avoiding the fear of inflation.

Debt funds:
Also known as fixed income funds, such funds invest in short and long term securities
issued by government and financial institutions. Gilt funds are invested in different medium and
long term government securities and corporate debt. Usually the income of such funds goes up
when the interest rates comes down as there is an appreciation in price in such scenario. Fixed

11
maturity funds are close ended funds which eliminate interest rates risk and lock-in a yield by
investing only in securities whose maturity matches the maturity of the fund
Hybrid funds:
Such funds are normally balanced funds in the way the amount invested is invested in both
equity and debt. Hence there exists a balance between growth and income. These funds are
further divided into:
-Equity oriented hybrid funds which is ideal for investors looking for growth in their
investment with some stability
-Debt oriented hybrid funds which are suitable for conservative investors looking for a
boost.
Monthly Income Plan is a type of debt-oriented hybrid fund seeks to declare a dividend
monthly. Capital protection funds invest both in debt and equity derivatives. The debt potion of
the portfolio is expected to mature to par value of the capital invested and only a small remaining
portion is invested in equity to generate higher returns.
Funds of funds:
Also known as specialty funds, such funds are invested into the units of other schemes of
same mutual funds or other mutual funds like commodity, real estate, ETFs and so on.

The two investment options available to investors from mutual funds are:
Dividend option: The funds declares a dividend out of realized gains and such dividend
can be:
-Dividend pay-out i.e. the dividend being paid out to investors which are tax free in
nature. This is the reason most of the investors go for this option.
-Dividend reinvestment i.e. re-investing the dividend into units of the same scheme at ex-
dividend NAV.
Growth option: In this option, the returns generated is not paid out but retained by the
fund which reflects in the appreciating NAV.

The different ways of investing into mutual fund are:

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 SIP (Systematic Investment Plan): It is tool where an investor invests a small part of his
money every month to enjoy generally two benefits i.e. rupee cost averaging and
compounding. It is the best way of investing as one need not time the market.
MIP (Monthly Investment Plan): This type of plan is generally suited for retired or senior
citizens as it provides a monthly income to the investors along with higher returns and
liquidity. Seventy five to eighty percent of the money is invested in debt and the
remaining in equity instruments.
STP (Systematic Transfer Plan): It is a way where the investor shifts a part of his lump
sum investment into other schemes regularly.
SWP (Systematic Withdrawal Plan): It is meant for people who have already retired and
wish to get their pay out at predetermined intervals i.e. monthly, quarterly or yearly. The
money withdrawn can be reinvested by the investor into another fund or may be realized
in cash. This kind of plan is also useful in tax planning.

The tax implication on mutual funds products are:

Mutual fund taxes
Resident Indian Nonresident Indian (NRI)
Equity funds Non-equity funds Equity funds Non-equity funds
STCG - 15% STCG - As per tax STCG - 15% STCG - As per tax bracket
bracket
LTCG Nil LTCG - 20% (with LTCG Nil LTCG - Listed: 20% (with
indexation) indexation)
Unlisted:10%(without
indexation)
Table 1: Mutual Fund Taxes

STCG: Short Term Capital Gain (Short term for equities is one year or less and for debt is three
or less).
LTCG: Long Term Capital Gain (Any investment higher than one year and three years tenor is
considered a long term investment in both equity and debt related instruments respectively).

13
At the time of redemption STT (Securities Transaction Tax) is charged @ 0.001% of the
redemption value. It is also to be noted that TDS is applicable only for NRI transactions and not
resident investors.

While investing in mutual fund, for good return one should have two keys i.e. patience
& discipline. It would give a good return if one would invest with discipline for longer
period.

INSURANCE PLANNING
Insurance is an important component of financial planning. As we are living in an
uncertain world, we are associated with several risks in life. Risk means possibility of any
injury, harm, danger, loss or destruction of an individual or their belongings... There are
mishaps, accidents, illnesses, natural disasters happening every day. A person who is,
healthy, happy and alive today cannot be sure of what will happen tomorrow, as he/she is
always exposed to risk.
From a persons current age to the age of his retirement, he has some specific needs and
goals like buying a car , bike , new house and getting married, child's education, childs
marriage, retirement planning, etc. he always plans his finances to turn his goals into
reality. But he is exposed to some possible uncertainties like accident, illness, loss of job,
death, etc. So to protect life and assets it is important to insure them.

What Insurance Company Does?

An insurance company brings together people who share the same risk. The risk can be to their
life, or their belongings like, vehicle, house etc. It collects the contribution called the premium
from the group of people and pays a compensation or claim to the one who suffers a loss. Thus
Insurance Company forms a pool of fund and spreads the risk of one among a group.
There are mainly two types of insurance: Life insurance & General insurance.
Life insurance: It is an investment to provide financial support to the family members of
the policy holder after his/her demise.
There are a different types of LI Policy availed to investor,

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 Term insurance: Such a type of insurance provides death cover only and is available in
very low premiums. It does not provide any survival benefits to the insured.
Whole life insurance: It covers death of insured whenever it may happen. The premium
rates of such a policy are low but higher than term insurance.
Endowment policy: It covers death benefit to the policy holder during policy period and
survival benefits at the end of the policy holder. The premiums rate of such insurance is
high.
Money back policy: In such a policy the policy holder gets a percentage of sums assured
at regular intervals, instead of getting the lump sum amount at the end of the period.
ULIP: The funds of such a policy are invested in to the financial market like equity, debt
or money market instruments to avail great rate of return.
How much life insurance should one buy?
Life insurance is meant to provide with the enough money to your dependents to replace your
income in case you die. Ideally, your life cover must take care of the following things:
a) Family expenses till lifetime;
b) Liabilities outstanding and
c) Family and children goals.
As a thumb rule, every earning individual has to have a life cover of 10 to 20 times of annual
income depending on their age.

General insurance:
All other insurance invested in due to fear of loss, apart from life insurance is known
as general insurance. For example health insurance, accident insurance, property insurance
and liability insurance.
Insurance is meant for risk mitigation and not for investor, so it is always advisable to invest
in traditional policies rather than modern policies. So one should invest in market linked
insurance policies or any other avenue of investment, only after having enough life and
general insurance.

AXIS BANK has tie up with MAX LIFE for life insurance policies. BURGANDY RM has wide
range of life insurance policies to offer their client suitable to them. Max Life Guaranteed

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Lifetime Income Plan, Maxlife Whole Life Super Plan Max Life Forever Young Pension, MAX
Life Maxis Super etc. is some of MAX life insurance products distributed by AXIS BANK.
AXIS BANK also distributes the APOLLO MUNICH Health Insurance which is known as
OPTIMA RESTORE. For TRAVEL INSURANCE bank has tie up with TATA AIG.

OBJECTIVE OF STUDY

The main objective of the study is to develop the understanding about the importance of
Burgundy Banking from the perspective of client and the Relationship Manager and guide the
clients in the financial planning.

SIGNIFICANCE OF THE STUDY

This study is done with the purpose to understand to how to create and manage wealth of
BURGUNDY CLIENT (HNI CLIENT) with the help of different financial instruments present
in the market and getting a brief knowledge about them especially focusing on mutual funds &
insurance in detail. Also an effort has been made to identify the most popular product among the
clients.

SCOPE OF THE STUDY:

The study was carried out at AXIS BANK, Ghod-Dod Road Branch, and Surat. The branch
provides facilities of Premium banking for HNI Clients. The scope of the study is spread across
the burgundy clients of Axis Bank with a TRV of 25 lakhs or more. It aims to offer financial
planning for burgundy clients in the age group of 30-65 years. Thus, the scope of the study is
specific but not limited.

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LIMITATIONS OF THE STUDY:
The major limitation of the study was that financial planning which is related to wealth
management is a vast subject and includes many topics and logics behind it which is very
difficult to understand in detailed in a short span of two months.
Moreover, the Banks obligations of not sharing the clients financials did not allow to
take a real life scenario for this project and it also limited the scope of the study. In
addition to this going for client meetings and pitching products was not allowed.
Therefore relying on interaction & observation of walk-in clients was the only way to
collect data.
Moreover, the mentor was not available at all times and the main source of data was
mere observations.

DATA COLLECTION:
Data collection is mainly done through interactions with BURGUNDY and PRIORITY
Relationship Managers. Some are also collected by observing client and RMs interaction.
Other data collected from the website of Axis Bank and broachers given from the bank
and through the internet.

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 METHODOLOGY
The main purpose of doing study this methodology is to understand the needs and goals
of the burgundy/HNI clients and advise them on investment and planning the milestones
of life.
The study was also carried to understand the criteria for burgundy customers and the
priority customers and the benefits provided to them by the bank.

ABOUT BURGUNDY

Who is Burgundy Client?

Eligibility criteria for burgundy client

On-boarding criteria:
.
Initial funding cheque amount of Rs 5 lakhs or more

Ongoing eligibility criteria:

Clients have to maintain an Average Quarterly Balance of Rs.10 lakhs in
the Savings Account,
OR
Clients have to maintain an Average Quarterly Balance of Rs.10 lakhs
across Savings Accounts and Current Accounts,
OR
Clients have to maintain a minimum Total Relationship Value(TRV) of 30
lakhs,
OR
Clients have to maintain a minimum Total Relationship Value(TRV) of 1
Crore which includes Demat holdings,
OR
In case of a salaried customer, one should be receiving a net salary credit
in excess of Rs.3 lakhs every month in Axis Bank Salary Account.

Benefits for Burgundy client

Relationship Management
Burgundy clients get the experienced, well trained and the certified
relationship manager at any point of time.

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 Other than Relationship manager client also get the benefit of the team
which is backed by the insurance experts and investment counselors,
senior lending experts, business and trade finance associates and forex
managers.

Wealth Management
Burgundy provides an end to end wealth management experience that is
design such as to match all the financial needs of the clients.

Burgundy relationship manager with the help of his expertise and with the
help of his team analysis clients assets and portfolio in the view of market
and advise his clients investment solutions and help them to build the
wealth according to the clients need.

Personal Banking
As burgundy clients, they have a privileged to a host of world class
personal banking services like from a wide range of savings account
benefits to preferential service at branches to family banking benefits.

Burgundy clients get Complimentary Burgundy Debit Card, with higher

transaction and withdrawal limits at merchant outlets and ATMs.

Burgundy clients get Complimentary Burgundy Multicurrency Forex Card

with preferential currency conversion rates and 24x7 support.

Burgundy clients get Complimentary 3-in-1 Axis Direct account for

simplified online trading.

Family Banking Program - Up to 4 family members (including burgundy

client) can become members of Burgundy.

Power packed Debit, Travel and credit cards

Burgundy Debit card: Burgundy clients enjoy the privilege of higher
transaction or withdrawal limits of Rs.2 lakh at ATMs and Rs.6 lakh at
merchant outlets.

They can get the buy one get one offer on movie tickets booked through
BookMyShow.

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 Multi-currency credit card: Burgundy client get a complimentary
personalized Multi-Currency Forex Card that offers multiple benefits such
as an option to load up to 16 currencies on one card, convenience and
enhanced security.

Credit cards: Axis bank provides Axis bank SELECT credit card and
Axis bank RESERVE credit card which provides benefits like airport
lounge access, golf or exclusive memberships.

Business solution
A burgundy team is well trained for attending the all the business
requirements of clients. With support from a team of business banking
experts, forex specialists, SME managers treasury associates and the entire
Axis Capital team, trade finance managers, Burgundy Relationship
Manager will provide you specialised solutions for all your business and
capital funding requirements.

Lending solution
Following lending solutions are provided by the Axis Bank.
Home Loans, Auto Loans, Personal Loans, Gold Loan and Loan
against Securities at special rates
Loan Against Securities (including Bonds)
Loan Against Property
IPO Funding

eDGE Royalty rewards

Burgundy clients can earn more than 12,500 Axis eDGE rewards points,
when they,
fund their Savings A/c
Open a Recurring Deposit
Open an Axis Direct A/c
Renew their Axis Bank Credit Card
Spend a minimum of Rs. 20,000 on their Credit Card

These Axis eDGE Reward Points can be redeemed for:

Flight & hotel bookings
DTH & mobile recharge

20
 500+ exclusive rewards catalogue
Instant e-voucher
Online & in-store partner

PRIORITY BANKING

Who is Priority customer?

A priority customer should be earning more than Rs.15 lakhs per annum.
A priority customer should have a regular flow of income.
A priority customer should be able to maintain the desired balances in his Bank account.

Criteria for Priority customers

Priority customers have to Maintain an Average Quarterly Balance of Rs.2 lakhs in the
Savings Account,
OR
Priority customers have to Maintain an Average Quarterly Balance of Rs.5 lakhs across
Savings Accounts and Current Accounts,
OR
Priority customers have to Maintain a minimum Total Relationship Value(TRV) of
Rs.15 lakhs across all savings, current accounts, & Fixed deposits relationships
OR
In case of a salaried customer, one should be receiving a net monthly salary of Rs.1lakh
and above.

Benefits for priority customers

They get the dinning delights of minimum 15% discount at over 4000 restaurants.
Premium privileges program for exclusive deals and experiences
eDGE loyalty rewards programs
Premium lounge booking services
25% cashback on movie ticket bookings.
VISA travel Assist- A travel assist program at a discounted price at more than 400
international airports in 90 countries worldwide
Online Will creation services through Will secure.

21
 CASE STUDY
The following example explains the methodology of financial planning wherein MR .Patel wants
to appreciate his wealth to achieve his goal for which he wants financial advice.

FINANCIAL PLAN FOR MR. Patel

PERSONAL DETAILS
NAME: MR. Patel AGE : 35 OCUUPATIONS: EMPLOYEE AT ZYDUS
CADILA LTD.
CONTACT NO XXXXXXXXXX
Table 2: Personal details of MR. Patel

FAMILY DETAILS
SPOUSE: MRS. Patel AGE: 32 OCCUPATION: SALARIED
DAUGHTER: Y AGE: 6 OCCUPATION: STUDENT
SON: Z AGE: 4 OCCUPATION: INFANT
Table 3: Family details of Mr. Patel

ASSUMPTIONS
All the financial plan and various requirements are based on present financial condition
of MR. Patel
Average inflation rate is 8% p.a. till lifetime
Salary of both Mr Patel and his wife will be growing at 8% p.a.
Increase in cost of all goals is 8%

GOALS
GOAL PRESENT COST YEAR TO GOAL FUTURE COST

Y-GRADUATION 2000000 12 5036340

Z-GRADUATION 2000000 14 5874387
Y-MARRIAGE 1200000 20 5593148
Z-MARRIAGE 1200000 25 8218170
VACATION 3500000 7 6000000
RETIREMENT 600000 25 4000000

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CAPITAL* - 25 20000000
MEDICAL 1000000 25 6800000
CONTINGENCY
Table 4: Goals of Mr.Patel (Inflation Rate: 8%) (LAST 3 are post Retirement Goals)

INCOME AND EXPENSES

Income
SOURCE OF INCOME AMOUNT IN
MONTHLY YEARLY
SELF INCOME 110000 1320000
SPOUSE INCOME 55000 660000
TOTAL 165000 1980000
Table 5: Total Family income of Mr.Patel

Expenses
EXPENSES AMOUNT IN
MONTHLY YEARLY
HOUSEHOLD 30000 360000
ENTERTAINMENT 5500 66000
MEDICAL 1500 18000
EDUCATION 8000 96000
TRAVELING 4000 48000
HOLIDAY 10000 120000
OTHER EXPENSES 4000 48000
HOME LOAN EMI 15000 180000
PERSONAL LOAN EMI 10000 120000

TOTAL 88000 1056000

Table 6 :Total Family current expenses of Mr.Patel

Existing Insurances & Investments:

TYPE AMOUNT IN
MONTHLY YEARLY
INVESTMENT PPF+ MF SIP 25000 300000
LIFE INSURANCE(EXCLUDING 15000 180000
TERM)

23
TOTAL 40000 480000
Table 7 Existing Insurances & investment of Mr. Patel

Monthly 10000 FROM MR Patel & 7000 FROM MRS Patel has been deducting from
their salary as PPF from the year 2009. MR Patel has been investing monthly 8000 in
SIP of SUNDARAM SELECT Micro cap fund from the year 2009 which has
investment value today is approx. 1800000.
Mr Patel has bought MAX LIFE FOREVER YOUNG PLAN which has premium of
10000rs
Whereas Mrs Patel has invested in SBI ANNUITY PLUS pension plan. This has
premium of 5000rs plan.

TOTAL INCOME 1956000

TOTAL EXPENSES 1056000
TOTAL SAVINGS 900000
THE PART OF SAVINGS YOU INVSTING
480000
CURRENTLY

THE PART OF SAVINGS AVAILABLE TO

420000
INVEST TODAY

24
2100000
2000000
1900000
1800000
1700000
1600000
1500000
1400000
1300000
1200000
1100000
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
TOTAL INCOME TOTAL EXPENSES TOTAL SAVINGS Investments Remaining savings
Chart 1 : Cash Management for MR.Patel

Based on Income & Expense analysis, Mr.Patel is saving 46% of his income. The
average household savings of Indian is 30%. In Mr.Patel case it is much higher than it. So
he would be suggested to invest some more part of his saving.

NETWORTH ANAYLYSIS
This shows the Financial condition today of MR.Patel. This will help in to build his asset and to
monitor his progress.
ASSETS
FIXED ASSET 10000000
FINANCIAL ASSETS 2500000
TOTAL 12500000

FINANCIALASSETS
EQUITY 1800000
CASH 700000
Total 2500000

25
LIABILITY
HOME LOAN SPOUSE 1500000
PERSONAL LOAN SELF 1200000
TOTAL 2700000

TOTAL NETWORTH: - TOTAL ASSETS TOTAL LIABILITIES

TOTAL NETWORTH: - 12500000-2700000 = 9800000

RISK PROFILE
Based on Mr. Patels response to the questionnaire, He is an aggressive investor

As an aggressive investor:
His first aim is growth of capital
He understand that taking larger risks would help to earn higher return
He is comfortable with initial fluctuations in the value of his investment to generate high
returns.

ASSET ALLOCATION
Asset allocation is the most important part of analysis. Asset allocation is the mix of
stocks, bonds, & cash that one owns. Following chart shows the current asset allocation
of MR. Patels assets.

26
 0%

28%

EQUITY
72%
CASH
DEBT

Chart 2 Current asset allocation of MR.Patel's investment

MR. Patel has not invested in debt. He has invested 72% of his asset into equity. This
may be riskier in future. He also has 28% of his asset into cash so he is losing investment
opportunity. He would be suggested to allocate (invest) some of them in debt also.
Following is the chart of recommended asset allocation.

18%

10%
EQUITY
CASH
72%
DEBT

Chart 3 Recommended asset allocation of MR.Patel's investment

27
 GOAL PLANNING
VACATION:
He wants to go on vacation after 7 years. Present cost is 350000. Future cost is 600000.
MR. Patel has cash of 7 lacs. From which he would be suggested to invest 300000
lump sum in Balance fund. i.e SBI Magnum balance fund, Hdfc Balance Mutual Fund,
Franklin India Balance Fund, TATA balance fund Etc.

Y-GRADUATION:
GOAL PRESENT COST YEAR TO GOAL FUTURE COST
Y-GRADUATION 2000000 12 5036340

Recommendation.:
Invest 50000 annualy (4000 monthly) in MAX LIFE Shiksha Plus Super child Plan.
Which would generate the return to approx. 970000 in 12year.(After payment term the
amount should be invested in debt instrument which would give return of 6.5%).
Invest 11800 monthly SIP in ELSS fund i.e Axis Long Term Equity Fund, Birla SL Tax
Relief 96(G). Which would generate the return to approx. 4670000

Z-GRADUATION:
GOAL PRESENT COST YEAR TO GOAL FUTURE COST
Z-GRADUATION 2000000 14 5874390

Recommendation.:
Invest 50000 annualy (4000 monthly) in MAX LIFE Shiksha Plus Super child Plan.
Which would generate the return to approx. 100000 in 14year.(After payment term the
amount would be invested in debt instrument which would give return of 6.5%).
Invest 10000 monthly SIP in ELSS fund i.e Axis Long Term Equity Fund, Birla SLTax
Relief 96(G). Which would generate the return to approx. 4875000.

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Y-MARRIAGE & Z-MARRIAGE
GOAL PRESENT COST YEAR TO GOAL FUTURE COST
Y-MARRIAGE 1200000 20 5593150
Z-MARRIAGE 1200000 24 7609400

Recommendation
MR. Patel has been investing Monthly SIP in SUNDARAM SELECT Micro cap which
has investment amount today is 1800000. He would be suggested to pull out this money
and discontinue to this investment.
From 1800000
900000 lump sum would be invested in diversified equity fund. i.e. ICICI
PRUDENTIAL FOCUSED BLUECHIPS FUNDS, SBI MAGNUM MULTICAP
FUND, MOTILAL OSWAL MOST FOCUSED 25 FUNDS etc.
900000 lump sum would be invested in Large cap fund i.e. SBI BLUECHIP
FUND,TATA LARGE CAP FUND, FRANKLIN INDIA OPPORTUNITY
FUND, etc.
Here for child goals, before 3 years of occurrence of the goal, fund could be invested in
debt instrument to avoid any risk due to volatility in the market.

INSURANCE PLANNING
LIFE INSURANCE
MR. Patel has already bought MAX LIFE FOREVER YOUNG PENSION PLAN in
which he is paying premium of 10000 monthly which will mature at the age of 60. In
this plan guaranteed retirement corpus is rs.26, 40,000. And after retirement at age of 60
he would get monthly pension of rs.16, 500. (Corpus and monthly pension is calculated
@4 returns, if calculated @8 it would be 4500000 and 25000 respectively). Here the
death cover is 2900000.

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 Mrs Patel has already bought SBI ANNUITY PLUS Plan in which she is paying
premium of 5000 monthly which will mature at the age of 50. In this plan she would get
pension of 8000-10000 after retirement. Here she has lifetime income with balance
capital fund. In which upon her death balance capital fund will be paid to her nominee.
MR. Patel would be suggested to buy TERM PLAN of Rs.4000 monthly HDFC
CLICK2PROTECT PLUS family plan. This will cover his life with death benefit of
1crore.

MEDICAL INSURANCE
Now a days medical treatment charges are very expensive. Therefore Medical cover for
family must be needed.
MR.Patel would be suggested to buy separate family floater medical cover for family for
amount 4Lacs, 6lacs, 8lacsin 10years regularly and 10lacs in 15 years. He can buy family
floater from APPOLLO MUNICH, BAJAJ GENERAL INSURANCE etc.

HOME INSURANCE
It is very important to insure house property which will cover any loss to structure and
content due to both natural and man-made calamities including fire, earthquake,
explosion, storms, riots, floods etc. MR. Patel would be suggested to insure his house.

30
 CASHFLOW FOR MR.PATEL TILL RETIREMENT

NOTES FOR CASH FLOW

Here year 2034 is retirement year of Mrs.Patel and year 2041 is retirement year of Mr.Patel.

TOTAL INCOME
Here total income of Mr.Patel and his wife Mrs.patel is calculated with the average inflation rate
of 8% p.a.
LIVING EXPENSES
Here all the variable living expenses are calculated with the 8% inflation rate.

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 From 2029, schooling expenses of Y would be reduced as she will move into her
graduation
From 2031, schooling expenses of Z would be reduced as he will move into his
graduation

FIXED EXPENSES+TERM EXPENSES

From 2027, existing loan EMI of Rs.25000 would be reduced as repayment tenure is
completed.
From 2034, premium of Rs.5000 for Life Insurance of spouse which was SBI ANNUITY
PLUS would be reduced, as its payment term is going too completed.
From 2037, premium of Rs.4000 for Term Plan HDFC CLICK2PROTECT PLUS would
be reduced, as its payment term is going too completed.

EXISTING INVESTMENT
Existing investment includes the PF for both Mr.Patel and his wife Mrs.patel.

RECOMMENDED MEDICAL INSURANCES

From 2017 to 2021, premium would be provided to family floater medical cover of Rs.
4lac
From 2022 to 2026, premium would be provided to family floater medical cover of Rs.
6lac
From 2027 to 2031, premium would be provided to family floater medical cover of Rs.
8lac
From 2032 till retirement, premium would be provided to family floater medical cover of
Rs. 10lac

RECOMMENDED LIFE INSURANCES & INVESTMENT

Mr.Patel should buy life insurance which includes CHILD PLANS and investment in
ELSS, Large Cap Mutual Funds, and DIVERSIFIED EQUITY.

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SURPLUSES AND DEFICIT
This shows surplus/deficit per month every year after all expenses and recommended
investment and insurances. This would be parked into saving bank A/C. This can be used
into miscellaneous expenses.
From 2031 surplus amount would be invested in FD which would help them to build the
sufficient capital.

SAVING BALANCE
Initial balance is Rs.200000. From which 75% is invested in FIXED DEPOSIT and 25%
is in saving balance.
In saving a/c minimum of Rs.200000 (every year it is inflated at 8 %,) would be
maintained for Emergency fund. It would always be maintained at approximately 3 times
of monthly expenses.

RETIREMENT PLANNING
PARTICULAR MR Patel MRS Patel

RETIREMENT AGE 60 50

LIFE EXPECTANCY 75 75

Table below brief the requirement of Mr. Patel for life after retirement

EXPENSES POST RETIREMENT

EXPENSES TYPES AMOUNT(RS) IN TODAYS VALUE

HOUSEHOLD 360000

ENTERTAINMENT 66000

MEDICAL 60000
VEHICLE MAINTENANCE 12000

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GI PREMIUMS 24000
HOLIDAY 60000
TRAVELLING 12000
OTHER EXPENSES 12000
TOTAL EXPENSES 606000

PARTICULARS AMOUNT IN RS

CORPUS REQUIRED FOR POST RETIREMENT(606000 p.a) 32500000

MEDICAL CONTINGENCY CORPUS REQURED 6800000

CORPUS REQUIRED FOR BUSINESS CAPITAL 20000000

TOTAL CORPUS REQUIRED 59300000

Recommendation:

PARTICULARS AMOUNT IN RS (at maturity)

MAX LIFE FOREVER YOUNG PENSION 2640000

PF SELF 19400000
PF SPOUSE 7420000
FD FROM 2030 29700000
TOTAL CORPUS (at age of 60) 59160000

34
 ACTION PLAN FOR MR.PATEL

Invest medical family floater of Rs. 4lacs & increase to 6lacs,8lacs,10lacs regularly.
Invest in HDFC Click2Protect Plus term plan for life cover of 1crore.
Buy insurance policy for House properties
Contingency fund should be maintained to at least 3 months expenses in saving balance Start
investing for accumulating the shortfall in goals and retirement corpus & keep paying insurance
premium which already bought.

ANALYSIS
while doing the in-depth analysis of the project and data collected it was analysed that financial
planning is very important for managing the portfolio of the client and creating wealth of
HNI/Burgundy clients. The investment planning of the clients should be diversified in the
different financial instruments like debt fund, equity fund, FDs, insurances. Diversification in
different type of financial instruments depends on the risk taking ability of the client, age of the
client, income and sources available to the client.

CONCLUSION
The objective of the study was to understand the process of financial planning for HNI or
Burgundy clients of Axis Bank.
The data for the study was collected mainly through interactions with the mentor and
going through the brochures and pamphlets of financial planning.
Main conclusion from the project is Risk appetite of the customer is the major factor for
deciding the investment planning for the Clients. Clients with higher risk appetite are
expected to invest in more risky financial assets. Whereas clients with lower risk appetite
are expected to invest in less risky assets like bank FDs.
While making a financial plan one should be aware that it depends on the market
sentiments. It was concluded that if the market sentiments are good people like taking

35
 advantage of the situation and invest more in equity and make money from it. Whereas
when the market sentiments are bad long term investors make use of the market situations
and buy the units of stocks, shares or mutual funds at a lower price. However there is a
risk attached to it that the market sentiments may go more down. Moreover at this time,
one should shift his/her investments into safer financial instruments. It is a good time to
adopt a defensive strategy and only invest in companies with strong balance sheets.
Recommendation
Bank should provide proper protection to the investors against the market
volatility.
Bank could organize the informative sessions and workshops for its important
customers according to the branch.

BIBLIOGRAPHY
Books: NISM Mutual Fund Distributors, NCFM Wealth Management module
Reference material provided by the mentor
Brochures provided by the Axis bank
ICICI Direct Financial Planning services Report

Websites:
http://www.managementstudyguide.com/financial-planning.htm
http://campaign.axisbank.com/Generic/Burgundy-Investment-Perspective-
Presentation-JFM16.pdf
http://www.moneycontrol.com/mutualfundindia/
http://www.hdfclife.com/term-insurance-plans/click-2-protect-plus
http://www.maxlifeinsurance.com/Plans/insurance-plans/retirement/forever-young-
pension-plan.aspx

36