The document presents findings from a study on the effect of the 2008 financial crisis on investors' investment patterns in India. The study found that while the crisis impacted some sectors more than others, investors remain optimistic about the long-term growth prospects of both the Indian and US economies. Most preferred future investment sectors included services and savings accounts.

1. Presentation on Summer Training Project at HSBC Invest Direct Presented to : Mr. Arun Dutta PCTE Presented by : Navneet Kaur Malhi MBA-2A

2. The HSBC Group serves over 100 million customers worldwide through over 8500 offices in 86 countries and territories. HSBC is one of the world’s largest banking and financial services organisation. HSBC is marketed worldwide as ‘the world’s local bank’. INTRODUCTION TO HSBC GROUP

3. HSBC's origins in India date back to 1853, when the Mercantile Bank of India was established in Mumbai. The acquisition in 1959 by The Hongkong and Shanghai Banking Corporation Limited of the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group. HSBC has given India its first ATM way back in 1987. Historical Background of HSBC

4. The organisation's adaptability, resilience and commitment to its customers have further enabled it to survive through turbulent times and prosper through good times over the past 150 years.

6. The company was formerly known as IL&FS Invest smart Limited and changed its name to HSBC Invest Direct (India) Limited in August 2009INTRODUCTION TO HSIL

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

8. To establish a base of 1million satisfied customers by 2010. It will be created by being a responsible and trustworthy partner. Mission statement

10. Transparency

11. Ethical Behavior

12. Respect for Employees, Clients & Stakeholder groups.Corporate Action

13. All the products of ILFS can be broadly divided into the following two categories: Online Trading Products Advisory Service Other Services Product Profile

14. Mutual fund advisory Services. Portfolio management Services. IPO Advisory and Distribution Services. Insurance Advisory Services. Investment Advisory services. Advisory Services

15. Online Services. Research and Financial Analysis. Value Added Services. Other Services

17. Expertise

18. One-stop-shop for all the investment needs

19. Unbiased and objective advice

20. Extensive reach

21. Brand image

22. Competitive pricingSWOT ANALYSIS

23. Expensive products Tedious procedures Fund transfer Attrition Weaknesses

24. Right time for investors to re-enter the market. Huge untapped market. Increasing number of management graduates. Increase the tie-ups for fund transfers . Opportunities

26. Increasing awareness of mutual funds and ULIPs.

27. Changing economic scenario in India and changes in government policies.

28. Many a investors burnt their figures during the bearish market conditionsThreats

29. Objectives of the study To study the change in investing pattern after the crisis. To study the change in preference for the sector for investment. To study the most preferred investment avenue. Study on Effect of Recent Financial Crisis on the Investment Pattern of Investors

30. The study was conducted with the main aim of studying the effect of recent financial crisis on the investment pattern of the investors. The crisis of 2008 had a drastic effect on the investment pattern of the investors. The Indian real estate sector has been going through a very bad phase 2008 onwards. It was hit by one and other factors throughout the year like interest rates, high inflation rates, and subprime crisis. Need of the Study

31. Result of reduction in the demand of products in the global market. Associated with falling prices known as deflation due to lack of demand of products. A slow down or slump or temporary collapse of a business activity. Recession

33. By this measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002.History of Recessions

34. Since 1980 there have been only eight periods of negative economic growth over one fiscal quarter or more, and four periods considered recessions in the US : January-July 1980 and July 1981-November 1982: 2 years total July 1990-March 1991: 8 months March 2001-November 2001: 8 months December 2007-current: 15 months as of March 2009

35. The US entered a recession at the end of 2007, and 2008 saw many other nations follow suit. The United States housing market correction and sub prime mortgage crisis significantly contributed to a recession. Not only have consumers watched their wealth being eroded, for 2008, an estimated 2.6 million U.S. jobs eliminated. Current Recession in some countries

36. Crisis triggered by a liquidity shortfall in the United states banking system. Caused by the overvaluation of assets. It has resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. Financial crisis 2007-2010

37. The collapse of a global housing bubble, which peaked in the U.S. in 2006, caused the values of securities tied to real estate pricing to plummet thereafter.

38. Immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005–2006. Easy credit conditions Predatory lending Deregulation Increased debt burden or over-leveraging Background and causes

39. Financial innovation and complexity. Incorrect pricing of risk Boom and collapse of the shadow banking system Commodities boom Systemic crisis Role of economic forecasting

40. Financial Market Impacts

41. Countries include: Portugal, Spain, France, Ireland, Belgium, The Netherlands, Luxembourg, Germany, Finland, Austria, Italy, and Greece. On Friday, May 7, 2010 a long-desired financial aid package for Greece was constructed. However, it was obvious that other states, because of their extremely large debts, would have - or already had - financial difficulties 2010 European sovereign debt crisis

42. Emergence of a new economy Expose of weaknesses in the economy Cost stabilization in real estate market Rationalization of Salary Structure in IT Industry Performance Appraisal is gaining ground Austerity is the targeted path Best place for outsourcing Opportunities for International trade. POSITIVE IMPACTS ON INDIAN ECONOMY

43. Impact on India: The Good, Bad & Ugly Good Bad Ugly

44. Food Railway PSU Banks Education Telecom 10 Indian industries to do well during recession

45. IT Health care Luxury products M&A & Marketing Consultants Media and Entertainment

49. State of US Economy

50. State of Indian Economy

51. Current Financial Position

52. Future Financial Position

53. Best Long-Term Investment Option

54. Investment Increased or Decreased

55. Sector in which Investment was done 2 years ago

56. Sector for Future Investment

57. Change in Portfolio

58. Change in Investment Value in a Particular Sector over Past 2 Years

59. Increase in Tax Rate – Satisfactory?

60. Investors are optimistic about the growth of the US and Indian economy. The financial position of the respondents either remains same or it improves to be better. The most preferred investments are savings accounts. The most preferred sector for investment is the service sector. Facts & Findings

61. It has been proved that when US sneezes India catches the cold. The worst affected sectors in Indian economy were banks, financial services, real estate, infrastructure, information technology. The sectors which had mild impact were power equipments and services, auto, retail. The sectors which were not affected were pharmaceuticals, oil and gas, FMCG.

62. While it is uncertain how prolonged and deep the recession will be, it can be said with certainty that demand, and subsequently growth, will return. It is therefore imperative that, when this happens, policymakers have a recovery plan in place. This plan should act to foster growth in the short-term and lay the foundations for economic stability in the long-term. There is currently a high level of activity amongst the business support community with a key focus on ensuring businesses survive the downturn. A challenging and critical focus on the basics, or fundamentals of businesses, is likely to give local companies the best chance of survival over the next year. The growth of the public sector and the narrow reliance on financial services for growth needs to change, with manufacturers and exporters having particular attention paid to them. After watching so many positive points we Indians can ourselves that we are quite in a safer place in comparison to many developed countries economy. To conclude lets hope for a stronger India by rectifying all its economic weaknesses after this so called financial crunch. Conclusion