Puys...let us make this thread a more constructive one. Why are we busy knowing when and where is our GD ?? I think we should focus on "what " would be there in GD.
Being from ICICI I have some knowledge about some previous GD topics , so let me start with one similar topic...
Kindly participate..
Study the following case let:
You are the relationship manager of Mr. Ravi Shankar, who currently resides in Bangalore.
The client's age is 42 years and he would like to retire 20 years hence i.e. at the age of 60 years
The client would like to invest an amount of Rs 10, 00,000 each year for three years.
Has a high risk appetite however wants to play safe
Other personal details:
Marital Status: Married with two kids aged 16 and 14 resp.
Financial Liabilities: Car EMI: Rs.12, 000/- p.m., House EMI: Rs.60, 000/- p.m.
Can you suggest any investment options for him?
Investment option for client would be:
1.Bank safe deposit: one of the Safest option as he will get interest of about 8.5%
2.Gold deposite:
3. Investment on Real estate: this is money making option but have little % of risk.
4 Insurance policy: car, house insurance.And health insurance for family.
These are some of the option Ravi can suggest to client.As most of them are risk free or very low % of risk.
Hi Guys...
i am intrested in the programme but on the site its mentioned that min 60% is required in graduation..i have 58.3% in graduation n have 34 months of work experience..will i be eligible for the programme..
Please revert.
Thanks
Hi Karan,
You can try this out.I believe if you showcase your managerial /presentation skills and make them think to over look your score or atleast try to win their confidence during PI round that may get you a chance.
Anyways don let it go try once atleast as this procedure is free of cost so you don find any additional burden on your pocket....
good luck..
;)
Investment option for client would be:
1.Bank safe deposit: one of the Safest option as he will get interest of about 8.5%
2.Gold deposite:
3. Investment on Real estate: this is money making option but have little % of risk.
4 Insurance policy: car, house insurance.And health insurance for family.
These are some of the option Ravi can suggest to client.As most of them are risk free or very low % of risk.
Priyanshu..thanks for starting the discussion.
But the suggestions provided by you does not take into account his age , his present life cycle stage and his future needs. As his age is 42 and his children are of 12 and 14 years of age, just by keeping in bank term deposits will not give him ample return for his future needs.
We are also forgetting the inflation rate which will keep on diminishing his value of money. Assuming an average inflation of 6% , his actual earning on bank deposits will be only 2.5 % which I think will not suffice.
Moreover for his children education and marriage , he will need a lump sum amount after 10 to 15 years. For this I would suggest some term plan like ULIP wcich will provide him the required money after 10 to 15 year take care of his insurance needs .
Buying gold is a good option ..as suggested by you . This will give future return as well as good liquidity.
.......
Ashish, thanks for the gd topic.
I feels Mr Shanker, liabilites will be over by the time he retire.
He can divide his INR 10,00,000.00 amt in different investment options as ,
1.) investment in gold will be best to hedge inflation. minimal risk
2) mutual funds or ULIPS. moderate risk
3) Traditional insurance plans & health insurance plans nil risk
4) some amt of fund can be devoted to share mkt but with a long term horizon & ready to bear high risk.
5) F.D in bank
thus by investing in differet options we can diversified his risk & geneate good returns in next 10 -15 years period .
from Dilbag Singh
4)
Thanks Ashish for the topic. But, I am really worried, if these types of case studies are given to us.
For suggesting investment options, one should have fairly good knowledge of various products/schemes available in the market. Person opting for MBA finance/banking or any investment banking program will be taught all this as a part of curriculum.
Does ICICI seek that person should know the basics of investments or an idea?
For a person like me from engineering background, I have very little knowledge of this.
Would you like to suggest something which could help me in the coming GD?
Thanks.
Thanks Ashish for the topic. But, I am really worried, if these types of case studies are given to us.
For suggesting investment options, one should have fairly good knowledge of various products/schemes available in the market. Person opting for MBA finance/banking or any investment banking program will be taught all this as a part of curriculum.
Does ICICI seek that person should know the basics of investments or an idea?
For a person like me from engineering background, I have very little knowledge of this.
Would you like to suggest something which could help me in the coming GD?
Thanks.
Dear Vineet..no need to thank explicitly ..u can do that by just pressing the "thank " button ;)
As far as the topics are concerned, i am afraid they give this sort of topics only.
But, dont feel dejected..coz they are not looking for someone with sound knowledge of market and investment..they just want to see ur thought process...
and for ur information they prefer engineers( look at the profile of last time selected candidates..majority engineers)
Lets do some home work before appearing there...It would be useful if somebody could post more of such cases and their analysis..!!
Pl. send the links of some useful sites through which we can go thru these cases..
thanks,
Dear friends,
I have GD/PI round on 19th AUG in Hyderabad. Expecting to get some info or suggestions from you guys...Please share your experience or any tips you think would be helpful for me to prepare myself for GD/PI. Thank you All.
Vijay Sharma
Went through the case study, but i am afraid this is not something i ever expected , do they actaually give something like this i mean this is not really a Caselet !!!
debszap SaysWent through the case study, but i am afraid this is not something i ever expected , do they actaually give something like this i mean this is not really a Caselet !!!
Dont panic guys....this is not the exact case given in GD but a similar one. The actual one was about an elderly woman who has received 15 lakhs and want to invest the same . The a list of investment options are given with lock in period , expected return and risk involved. we have to analyse her situation and then suggest an investment plan which will maximize her return and minimize risk.
Investment alternative Return Number of years Risk
--------------------------------------------------------------------
Government securities 6% 15 1
Company deposits 15% 3 3
Equity shares 20% 6 7
Time deposits 10% 3 2
NSC 12% 6 1
Real estate 25% 10 2
Have a look at this ..then I will come out with few more ...
Hi,
Please find my analysis.
There are plenty of options and amount to invest. Here nothing is mentioned about interest of elder woment.
Option Analysis:
Government securities 6% 15 1 : Not prefered( Locking period is more,NSC would be better option)
Company deposits 15% 3 3 : Although risk is more , but return and locking period is less. So to maintian liquidity will be good.
Equity shares 20% 6 7 : High risk Not prefered( better go for real state)
Time deposits 10% 3 2 : It is good option in terms of liquidity
NSC 12% 6 1 : It is safest option with satifactory return, locking perios and risk.
Real estate 25% 10 2 : Although locking period is more, but return is high with less risk as compared to company deposists.
Random estimation, actually it will be based on need and risk taking capability of client.
Company deposits: 20 %
Time deposits: 20%
NSC : 30 %
Real estate: 30%
Total Risk: .2*3 + .2*2 + .3*1 + .3*2 = 1.9
Total Return: 16 %
Locking period has not been taken care in above calculation
Regards
Sandeep
Dont panic guys....this is not the exact case given in GD but a similar one. The actual one was about an elderly woman who has received 15 lakhs and want to invest the same . The a list of investment options are given with lock in period , expected return and risk involved. we have to analyse her situation and then suggest an investment plan which will maximize her return and minimize risk.
Investment alternative Return Number of years Risk
--------------------------------------------------------------------
Government securities 6% 15 1
Company deposits 15% 3 3
Equity shares 20% 6 7
Time deposits 10% 3 2
NSC 12% 6 1
Real estate 25% 10 2
Have a look at this ..then I will come out with few more ...
I think she should invest wisely by diverting her funds in to different portfolios as there were many options available here.
My Suggestion would be as follows:
She should Invest half of the amt. in Real estate as it yields higher rate of interest with max. Period.
for the remaining half she may invest half part of it in company deposits and NSC and for the remaining as they yield good interest rate with relatively short span of time and less risk and for the remaining half she should go for Time deposits and govt. securities as less risk was involved in them.
I should ve done some mathematical calculation on the returns here...Comments are welcome...!!
Hi,
Please find my analysis.
There are plenty of options and amount to invest. Here nothing is mentioned about interest of elder woment.
Option Analysis:
Government securities 6% 15 1 : Not prefered( Locking period is more,NSC would be better option)
Company deposits 15% 3 3 : Although risk is more , but return and locking period is less. So to maintian liquidity will be good.
Equity shares 20% 6 7 : High risk Not prefered( better go for real state)
Time deposits 10% 3 2 : It is good option in terms of liquidity
NSC 12% 6 1 : It is safest option with satifactory return, locking perios and risk.
Real estate 25% 10 2 : Although locking period is more, but return is high with less risk as compared to company deposists.
Random estimation, actually it will be based on need and risk taking capability of client.
Company deposits: 20 %
Time deposits: 20%
NSC : 30 %
Real estate: 30%
Total Risk: .2*3 + .2*2 + .3*1 + .3*2 = 1.9
Total Return: 16 %
Locking period has not been taken care in above calculation
Regards
Sandeep
Good analysis..
How have you calculated the total return here??
Hi,
Please find my analysis.
There are plenty of options and amount to invest. Here nothing is mentioned about interest of elder woment.
Option Analysis:
Government securities 6% 15 1 : Not prefered( Locking period is more,NSC would be better option)
Company deposits 15% 3 3 : Although risk is more , but return and locking period is less. So to maintian liquidity will be good.
Equity shares 20% 6 7 : High risk Not prefered( better go for real state)
Time deposits 10% 3 2 : It is good option in terms of liquidity
NSC 12% 6 1 : It is safest option with satifactory return, locking perios and risk.
Real estate 25% 10 2 : Although locking period is more, but return is high with less risk as compared to company deposists.
Random estimation, actually it will be based on need and risk taking capability of client.
Company deposits: 20 %
Time deposits: 20%
NSC : 30 %
Real estate: 30%
Total Risk: .2*3 + .2*2 + .3*1 + .3*2 = 1.9
Total Return: 16 %
Locking period has not been taken care in above calculation
Regards
Sandeep
Sandeep ...very well done...that sums up the solution for the problem . But I would like to add here that we also need to know the amount of risk she is ready to take and how much money she requires i.e liquidity requirement.
Once we know that , then we can calculate her investment portfolio and her Expected rate of return as well as her risk exposure.
Yes formula is
% contribution in each investment * return
Total Return: .2*15 + .2*10 + .3*12 + .3*25 = 16.1%
I ignored the locking period, in that case calculation will be more complicated.
Regards
Sandeep
Good analysis..
How have you calculated the total return here??
Even I was thinking the same thing. How are returns calculated here?
Please find my solution to the case and let me know how can I improve it?
c Company deposits 15% 3 3
t Time deposits 10% 3 2
n NSC 12% 6 1
r Real estate 25% 10 2
Assuming compounded growth as lockin period is there, Expected returns after 3 years:
For low risk profile, best option is NSC, assuming to allocate 30% of the total corpus, returns will be: 4.5(1.12)^6 = 4.5*1.72 = 7.74
Since locking period is more for realestate, go for moderate risk = 2 option time deposit: with 20% of corpus to get: 3(1.1)^3 = 3 * 1.3 = 3.9
She can go with company deposit options for about 20% as it is also moderate risk and will give more returns: 3(1.15) ^ 3 = 3 * 1.45 = 4.35
Above 70 % has already been invested and she will for sure get back after 6 years and 40% of total funds after 3 years, which she can plan to reinvest depending on the needs.
Remaining 30% she can put in real estate for 10 years: 4.5(1.25)^10 = 4.5 * 3.5 = 15.75
Amount expected: 7.74 + 3.90 + 4.35 + 15.75 = 31.74
Gain % = ( ( 31.74 - 15 ) / 15 ) * 100
Returns: 111 % approximately
Please let me know, if there is any mistake in approach or calculation. Would like to confirm, for these kind of problems, we need to make assumptions like percentage of funds to be allocated to an instrument. Are these assumptions allowed?
Here is another one..
You are a credit manager of a bank and two of your good clients company x and y come for a loan.
Both are steel companies.Bank is approaching its limit in the given sector.will you grant loan? Company can give loan to only one company . which company will you prefer and why?
Here is a brief history of the companies.
Company x
Comapany X has a presence in west bengal , orissa and maharashtra. It is 5 year old company and for the last 5 five years have shown good growth .
Company y
company Y has a country wise presence and has been operating form the last 20 years.
Then two tables are given with last three year performance of the two comapny. Data given are CAGR, Net profit , expansion over last year..and some other data.
Then the present scenario in the steel sector is given.
Like..steel sector has grown 20% over the 5 year. It has potential to grow at 30 % in west bengal, maharashtra etc. Then some other details.
One the basis of above facts we have to decide whether we will give loan to any one and if yes whcih one ?
Sandeep, I am wondering, how come there is difference in return percentage between your and mine calculation, even though percentage allocation is same?
Is it because, I considered locking period and approximated the calculation of powers?
Here is another one..
You are a credit manager of a bank and two of your good clients company x and y come for a loan.
Both are steel companies.Bank is approaching its limit in the given sector.will you grant loan? Company can give loan to only one company . which company will you prefer and why?
Here is a brief history of the companies.
Company x
Comapany X has a presence in west bengal , orissa and maharashtra. It is 5 year old company and for the last 5 five years have shown good growth .
Company y
company Y has a country wise presence and has been operating form the last 20 years.
Then two tables are given with last three year performance of the two comapny. Data given are CAGR, Net profit , expansion over last year..and some other data.
Then the present scenario in the steel sector is given.
Like..steel sector has grown 20% over the 5 year. It has potential to grow at 30 % in west bengal, maharashtra etc. Then some other details.
One the basis of above facts we have to decide whether we will give loan to any one and if yes whcih one ?
I think we need to give loan to the company for which CAGR and net profit is more along with considering other factors like :
Repayment capacity of the company.
There is more scope for iron and steel industry in the states like WB and Orissa but if other company is operating across India and is established from past 20 years, it makes sense to trust it.
Need to check the details of other loans taken by both the companies and their payment details. If they have other burdens, they might not pay the new loan timely.
We need to see the repo of the company in the market and management of both the companies and potential to pay back the loan and may be lot more criterias!