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A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of HSBC InvestDirect in Ludhiana

Presented by-

Supriya Nayyar

Historical background of the group

It was established in 1865.

Aimed to finance the growing trade between Europe, India & China.

By 1880s, the bank was acting as banker to Hong Kong Government.

It is also participated in the management of British government accounts in China, Japan, Penang & Singapore.

Introduction to HSBC

HSBC is worlds local bank.

Headquarters in London.

HSBCs international network comprises over 9500 offices in 76 countries & territories in Europe, the Asia-Pacific region, the Americas, the Middle East & Africa.

HSBC provides a comprehensive range of financial services like-

Personal financial services

Commercial Banking

Corporate Banking

Investment Banking

HSBC Group in India

It offers a full range of Banking & Financial Services to its over 2.8 million customers.

It has 47 branches & 170 ATMs across 26 cities.

It has over 34,000 employees in its Banking, Investment Banking & Capital Markets.

With Asset Management, 2 Global IT development centres & 6 Global resourcing operations in the country.

Sale of Stake in Investsmart to HSBC

HSBC acquired 29.36% stake in IL&FS InvestSmart Ltd.

HSBC acquired 43.85% of InvestSmart from E*TRADE Mauritius Ltd.

HSBC has accepted shares to Public shareholders equivalent to 20.65% of InvestSmarts capital.

Thus, it has completed its acquisition of 93.86% of IL&FS for a consideration of US$296.4 million.

Vision & Mission

Vision :To become the preferred long term financial partner to a wide base of customers whilst optimizing stakeholders value.

Mission: To establish a base of 1 million satisfied customers by 2010. We will create this by being a responsible and trustworthy partner.


All the products of IL&FS can be broadly divided into the following two categories:

Online Trading Products.

Advisory Services.

Other services.

Online Trading Product of IL&FS Investsmart

Basically IL&FS Investsmart offers three types of products to its retail customers.

Smart Start

Smart Invest

Smart Trade

Advisory Services

Mutual fund advisory services.

Portfolio management services.

IPO Advisory and Distribution Services.

Insurance Advisory Services.

Investment Advisory services

Other Services

Online services.

Research and Financial Analysis.

Value added services.

Organisational Members

Mr. Manasije Mishra MD & CEO

Mr. Avdhoot Deshpande Head - Equity and Capital Markets

Mr. Vipul Shah Head - NBFC

Mr. Dharmen shah Vice President - Institutional Equity

Mr. Jaideep Anand Senior Vice President - Institutional Sales & Dealing

Mr. C. Diwakar Chief Information Officer

Mr. K. Venkatesh Head Distribution

Organization Chart

Branch Manager

Mr. Saurabh Talwar


Relationship Manager(3 Persons)

Dealers (4 Persons)

Supporting Staff (3 Persons)

Opeartions (3 Persons)




Mr. Sarbjit Pal


Mr. Abhishek Aggarwal


Mr. Rahul Sood





Unique Features.

Research Agency.

Extensive reach.

Brand image.

Competitive pricing.


Expensive Products.

Tedious Procedures.

Fund Transfer.




Right Time to Investors to re-enter into market.

Huge untapped Markets.

Increasing number of Graduates.

Increase Tie-ups for Fund Transfer.


Stiff Competition.

Increasing awareness of Mutual Funds & ULIPS.


Current Ratio

Current Ratio

Current Ratio2007200820092.20000000000000022.29999999999999981.9

Quick Ratio

Quick Ratio

Quick Ratio20072008200911.10000000000000011.1000000000000001

Return on Total Assets

Return on Total Assets

Return on Total Assets20072008200912.5129.9

Net Profit Ratio

Net Profit Ratio

Net Profit Ratio2007200820096.15.56.6

Debt-Equity Ratio

Debt-Equity Ratio

Debt-Equity Ratio2007200820091.441.422.59

Investment Portfolio

Investment is a commitment of funds made in the expectation of some positive rate of return.

The Investment needs of an Investor:-

Capital Preservation.

Wealth Generation.

Tax Savings.


Future Uncertainty.

Retirement Planning.

Investment Planning

It helps in deciding upon the right Investment strategy.

It is a balance of three components:-


Risk Tolerance.


Types of Investment

Portfolio Management

A Portfolio is a collection of securities that are grouped together to diversify the total Risk.

An Optimal Portfolio provides the highest possible utility, given the constraints imposed by the opportunity set and efficiency frontier.

Beta measures the risk associated with Individual Portfolio in relation to the Market Portfolio.

Meaning of Portfolio Management

The Art & Science of making decisions about Investment mix & policy, matching Investments to Objectives, asset allocation for Individuals & balancing risk vs. Performance.

Portfolio Objectives:-

Stability of Principal.


Growth of Income.

Capital Appreciation.

Investment Pyramid



It is a discretionary investment management schemes, offering investment solutions in Mutual Funds that are aligned to suit investors financial goals.

The Primary objective of iPreserve is to manage investments in Mutual Funds, encompassing both debt as well as equity schemes.

It takes care of complete execution of the investment and monitoring on investors behalf.



iGrowth is a discretionary portfolio management scheme focusing on investments in equities and derivatives with an objective of growth.

It aims at creating long-term wealth through judicious stock selection and asset allocation.

Features of PMS by HSBC

Smart Portfolio:-

Adding Scrips

Scrip wise split of Portfolio Holdings

Realized Gains Report


A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of HSBC InvestDirect in Ludhiana.


To study the demographical factors affected the choice of Portfolio of Investors.

To identify the purpose of investment & extent of financial literacy of Investors.

To know the most preferred Investment avenues of Investors.

To find out the Risk Tolerance limit of Investors.

Research Methodology

Research Problem: -

A Comparative Analysis on Investment Portfolio of Business & Service Class Investors of HSBC Invest Direct in Ludhiana.

Research Design: -

Descriptive Research Design.

Data Collection: -

Primary Research:- Questionnaires & Telephonic Interviews.

Secondary Research: - Journals & Magazines.


The Business & Service class Investors of HSBC InvestDirect in Ludhiana.

Sampling Unit:-

Those Business & Service class Investors using PM Services of HSBC InvestDirect.

Sample Size:- 100.

50- Business Class Investors

50- Service Class Investors.

Sampling Frame:- It includes the Clients Database using PMS of HSBC InvestDirect, Ludhiana & the Walking Investors in Ludhiana Branch.

Sampling Technique:- Simple Random Sampling & Convenience Sampling Techniques.

Data Analysis & Interpretation

Fig 4.1:- The Investors Demographic Profile (Gender)

Demoghraphic Profile of Investors


Percentage Of Investors

Fig.4.2:- The Age Group of Investors.

Age Group of Investors

BusinessBelow 3535-5051-60Above 600.300000000000000320.560000000000000050.14.0000000000000022E-2ServiceBelow 3535-5051-60Above 600.780.22.0000000000000011E-20

Percentage Of Investors

Fig. 4.3:- The Marital Status of Investors.

Marital Status of Investors


Percentage of Investors

Fig. 4.4:- The Investors are having Dependents.

Dependents on the Investors

Business0 to 12 to 3More than 30.240000000000000210.380000000000002610.38000000000000261Service0 to 12 to 3More than 30.540.380000000000002618.0000000000000043E-2

Percentage of Dependents

Fig.4.6:- Mont